Denison Mines Corp. · TSX:DML
Denison Mines — Investor Presentation (January 2018)
28 slides from Denison Mines's investor presentation, Jan 18, 2018
Slide 1: Uranium Development & Exploration: The Athabasca Basin
Uranium Development & Exploration The Athabasca Basin Investor Update – January 2018
Slide 2: Cautionary Statements & References
Cautionary Statements & References Cautionary Statements: This presentation includes forward-looking information or forward-looking statements under Canadian and U.S. securities laws that involve risks, uncertainties and other factors that could cause actual results to differ materially from those e
Slide 3: Uranium Market: Shifting Fundamentals?
Uranium Market: Shifting Fundamentals? Utility Uranium Requirements (million pounds U3O8 - per UxC Q4‘17 • Sustained low price 250 environment means very few 200 new sources of supply in the pipeline 150 • Uncovered utility demand 100 Covered Demand reaches ~21% by 2020 and Uncovered Demand 50 ~65%
Slide 4: Infrastructure Rich Eastern Athabasca Basin
Infrastructure Rich Eastern Athabasca Basin McClean Lake Mill Athabasca Waterbury Project Basin Rabbit Lake Mill Cigar Lake Mine Proposed ~45km road connection McArthur River Mine Wheeler River Project Key Lake Mine & Mill All season highway / haul road Provincial power grid 3
Slide 5: Potential to be Top Producing Asset
Potential to be Top 5 Producing Asset Top Producing Uranium Mines 2017 est. Million Pounds U3O8 vs. Wheeler PEA Production Plan(1)(2) M lbs. M lbs. Source: UxC Uranium Market Outlook Q4’17 20 18.0 18.0 15 M lbs. ` 9.6 M lbs. 10 7.3 M lbs. M lbs. M lbs. M lbs. M lbs. M lbs. 6.6 6.3 5.8 5.5 5.5 5.0 5
Slide 6: Project PEA: Phase Development Plan
Project PEA: 2 Phase Development Plan PHASE 1: Gryphon • Conventional underground mining • USD$14.28/lb U3O8 est. OPEX • 6M lbs U3O8 / year (1) • 7 years PHASE 2: Phoenix • U/G freezing + Jet Bore mining • USD$22.15/lb U3O8 est. OPEX • 7M lbs U3O8 / year (1) • 9 years 2016 PEA(1): • Based on drillin
Slide 7: Project PEA Assumes Processing at 22.5% Owned McClean Lake Mill
Project PEA Assumes Processing at 22.5% Owned McClean Lake Mill(1) McClean Lake Mill Licensed Capacity Processes ~11% of Global ` Uranium Production • 24M lbs/yr U3O8 • 18M lbs/yr reserved for Cigar Lake • 6M lbs/yr expected excess capacity Positive Processing Metallurgical Test • +97% recovery Gran
Slide 8: Infrastructure Rich Eastern Athabasca
Infrastructure Rich Eastern Athabasca • Existing infrastructure is tailored to mining operations surrounding the Wheeler property, allowing for low initial CAPEX & a lower risk profile throughout the development of the project • Wheeler is located within 50km & 100km of the two largest uranium mines
Slide 9: Largest Undeveloped Uranium Project in the Eastern Athabasca Basin
Largest Undeveloped Uranium Project in the Eastern Athabasca Basin Phoenix Deposit(1) Gryphon Deposit(1) 70.2 Million Pounds (indicated) 166k tonnes @ 19.1% U3O8 + 43.0 Million Pounds (inferred) 834k tonnes @ 2.3% U3O8 (1) (1) Location: Ownership: Earn-In: Processing: PEA Economics: PEA Infrastructu
Slide 10: Wheeler: Potential for Gryphon Resource Growth
Wheeler: Potential for Gryphon Resource Growth Gryphon Plan View Significant New Mineralization • Expansion of A and B Series Lenses • Discovery and expansion of D and E Series Lenses See Press Release dated November 27, 2017 for additional details 9
Slide 11: Mineralization at Gryphon Continues to Grow: A Series
Mineralization at Gryphon Continues to Grow A Series Lenses – Inclined Longitudinal Section 2017: A Series Results • Potential for resource growth with higher than expected grades in certain portions of the deposit compared to the inferred grade model • Noteworthy mineralized intercepts outside of t
Slide 12: Mineralization at Gryphon Continues to Grow: B Series
Mineralization at Gryphon Continues to Grow B Series Lenses – Inclined Longitudinal Section 2017: B Series Results •Potential for resource growth with higher than expected grades in certain portions of the OPEN deposit compared to the inferred grade model •B Series Lenses that are not included in th
Slide 13: Mineralization at Gryphon Continues to Grow: C Series
Mineralization at Gryphon Continues to Grow C Series Lenses – Inclined Longitudinal Section 2017: C Series Results • Confirmed up plunge and down plunge limits • C Series Lenses that are not included in the current resource estimate are open to the northeast • Different structural controls suggested
Slide 14: Mineralization at Gryphon Continues to Grow: D Series
Mineralization at Gryphon Continues to Grow D Series Lenses – Inclined Longitudinal Section 2017: D Series Results • All D Series Lens mineralization occurs outside of current resource estimate for Gryphon • Expanded on previous high grade results • WR-641: 5.3% U3O8/11.0m, incl. 12.6% U3O8/4.5m • W
Slide 15: Mineralization at Gryphon: Newly Discovered E Series Lenses
Mineralization at Gryphon Continues to Grow Newly Discovered E Series Lenses Inclined longitudinal section 2017: E Series Results • Discovery of new high- grade unconformity- hosted mineralization in OPEN drill hole WR-689D3 (12.9% U3O8 over 3.0m) and WR-670D2 (2.8% U3O8 over 7.0 metres) • Immediate
Slide 16: 2017: Positioning for the Future
2017: Positioning for the Future Agreement to earn-in to Monetized Cigar Lake tolling CAD$20M bought deal additional 6% at Wheeler revenue to raise CAD$43.5M private placement January January February McClean Lake Mill Denison Environmental New high grade Discovery of New “E” series granted 10-year
Slide 17: Huskie Zone: New High-Grade Basement Hosted Uranium Discovery
Huskie Zone: New High-Grade Basement Hosted Uranium Discovery at Waterbury Lake Summer 2017 drilling program: Designed to test an east-west trend, which shares interpreted geological similarities with the east-west trend that hosts the J Zone and Roughrider deposits (~1.5km south) Immediate success…
Slide 18: Huskie Zone: New High-Grade Basement Hosted Uranium Discovery
Huskie Zone: New High-Grade Basement Hosted Uranium Discovery at Waterbury Lake “The basement plumbing system appears to be improving as we move west - as indicated by the increased number of mineralized lenses, a broader and stronger alteration halo and a widening of the structured, graphitic packa
Slide 19: Hook Carter: Long Term Potential
Hook Carter: Long Term Potential Strategic Acquisition… • Denison acquired 80% interest in the Hook-Carter property from ALX Uranium Corp. in 2016 • Also acquired Coppin Lake project to consolidate Hook-Carter property • 45 land claims = 20,522 hectares • Significantly underexplored, with only 8 hol
Slide 20: Company Specific Catalysts on The Horizon
Company Specific Catalysts on The Horizon Wheeler River Wheeler River New high-grade Inaugural drilling Resource Update Pre-Feasibility “Huskie” discovery at program at & Exploration Study Waterbury Hook-Carter Winter & Q1-2018 Mid-2018 Winter 2018 Summer 2018 An updated resource The PFS is expected
Slide 21: Denison's Uniquely Diversified Asset Base
Denison’s Uniquely Diversified Asset Base • Denison’s Flagship property in • Strategic high-grade AB uranium mill eastern Athabasca Basin (AB) • 6 M lbs/year excess • Gryphon + Phoenix milling capacity co-development • Currently tolling • PEA completed 1H16 Wheeler McClean Cigar Lake ore with 20.4%
Slide 22: The Advantage
The Advantage Wheeler River: Largest undeveloped uranium project in the infrastructure rich eastern Athabasca Basin Increasing our interest in Wheeler to up to ~66% by end of 2018 Potential to improve Wheeler River PEA economics through exploration and engineering activities ongoing through 2017 Ear
Slide 23: Appendix: Wheeler River PEA Economics
Appendix: Wheeler River PEA Economics 2016 Wheeler River Project Preliminary Economic Assessment(1) (100%) Assumptions / Financial Results Base Case Production Case Uranium Price US$44.00 US$62.60 Exchange Rate (CAD:USD) 1.35 1.35 Discount Rate 8.00% 8.00% Pre-Tax IRR(2) 20.4% 34.1% Pre-Tax NPV(2) (
Slide 24: Appendix: Wheeler River PEA Resources
Appendix: Wheeler River PEA Resources 2015 Wheeler River Property Mineral Resource Estimate Summary(1) Million lbs Million lbs U3O8 Deposit Category Tonnes Grade (%U3O8) U3O8 (100%) (60% Denison) Gryphon Inferred 834,000 2.3 43.0 25.8 Phoenix Indicated 166,000 19.1 70.2 42.1 Phoenix Inferred 9,000 5
Slide 25: Appendix: Wheeler River Estimated CAPEX
Appendix: Wheeler River Estimated CAPEX 2016 Wheeler River Project Preliminary Economic Assessment(1) Capital Costs (CAD$ millions) Initial Sustaining Total Surface Infrastructure $166 $7 $174 Mine $220 $334 $554 Mineral Processing $19 $60 $79 Owners Costs $25 $0 $25 Decommissioning $0 $40 $40 Subto
Slide 26: Appendix: Wheeler River Estimated OPEX
Appendix: Wheeler River Estimated OPEX 2016 Wheeler River Project Preliminary Economic Assessment(1) Operating Costs (CAD$/lb U3O8) Gryphon Phoenix Mining $3.45 $17.45 Surface Transportation $1.63 $0.85 Mineral Processing (including tolling) $10.03 $8.03 General & Administration $4.17 $3.57 Total (C
Slide 27: Corporate Information
Corporate Information Market Summary Management & Directors Exchanges TSX: DML, NYSE MKT: DNN Lukas Lundin (Executive Chairman) Shares Outstanding(1) 559.1 M David Cates (President & CEO) Warrants(1) 1.7 M Mac McDonald (VP Finance & CFO) Options(1) 12.5 M Peter Longo (VP Project Development) Fully D
Slide 28: Uranium Development & Exploration: The Athabasca Basin
Uranium Development & Exploration The Athabasca Basin Email: @DenisonMinesCo info@denisonmines.com denisonmines.com