TORONTO, April 14, 2021 /CNW/ - Denison Mines
Corp. ("Denison" or the "Company") (TSX: DML) (NYSE
American: DNN) is pleased to report the discovery of new high-grade
unconformity-hosted uranium mineralization from the winter 2021
exploration program completed at the Company's 22.5% owned McClean
Lake Joint Venture ("McClean Lake" or "MLJV"). Three of the final
four drill holes completed by Orano Canada Inc. ("Orano Canada"),
77.5% owner and operator of the MLJV, returned uranium
mineralization at the McClean South target area (see Figure 1),
with the results highlighted by drill hole MCS-34, which returned
5.04% eU3O8 over 14.0 metres
(including 14.86% eU3O8 over 3.9 metres).
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Andy Yackulic, P. Geo., Denison's
Director, Exploration, commented, "The latest results from
McClean South are quite exciting. Not only has drilling intersected
very high-grade uranium, but the mineralization is open along
strike to the west for at least 250 metres and approximately 70
metres to the east towards the McClean South 8E pod. The
mineralized intersection in MCS-34 represents one of the better
mineralized intersections reported on the McClean Lake property to
date – which is impressive, as the property has been explored since
the mid-1970s and has previously produced over 50 million pounds
U3O8."
David Cates, Denison's President
& CEO, added "The discovery of new high-grade uranium
mineralization at McClean South reminds us of the significant
potential associated with Denison's portfolio of development and
exploration interests in the Athabasca Basin. Orano Canada is
a world-class business partner and the operator of Denison's 22.5%
owned McClean Lake uranium mill. With excess licensed
capacity at the McClean Lake mill, any meaningful new uranium
discovery on the McClean Lake property has the potential to
translate into an important source of future mill feed and
ultimately considerable value for the MLJV and its
owners."
2021 McClean Lake Exploration Highlights
A diamond drilling program consisting of 15 drill holes
totalling 4,083 metres was recently completed at McClean Lake. The
2021 exploration program was designed to test for the potential
expansion of previously discovered mineralization in the McClean
South 8W and 8E pods, as well as to test for new mineralization in
the surrounding area (see Figure 2).
Drill hole MCS-34 was designed to test a potentially significant
gap in drilling west of the McClean South 8E pod, where historical
drilling was believed to have tested too far to the north of the
optimal target area. Drill hole MCS-34, which was drilled at an
azimuth of 345° and a dip of -60°, targeted the extension of
the McClean South conductor approximately 120 metres west of the
McClean South 8E pod and successfully intersected high-grade
unconformity-associated uranium mineralization at an approximate
depth of 182 metres – returning a mineralized interval of 5.04%
eU3O8 over 14.0 metres (including 14.86%
eU3O8 over 3.9 metres). Due to
deteriorating surface conditions, owing to warming weather towards
the end of the exploration program, follow-up of this result on
section was not possible.
Follow-up efforts were targeted along strike to the east of
MCS-34, including drill hole MCS-36, which was designed to test the
extent of the mineralization encountered in MCS-34 at the
unconformity approximately 15 metres to the east. Drill hole
MCS-36, which was drilled at an azimuth of 345° and a dip of
-70°, intersected uranium mineralization hosted within a fault zone
in the basal sandstone, returning a mineralized interval grading
1.17% eU3O8 over 3.1 metres.
Further follow up occurred approximately 10 metres to the north of
MCS-36, with the completion of drill hole MCS-37, which was drilled
at an azimuth of 345° and a dip of -67.5°, and also
intersected uranium mineralization beginning approximately 19
metres above the unconformity contact, returning 0.52%
eU3O8 over 6.4 metres.
Taken together, three of the final four drill holes completed at
the McClean South target area returned notable uranium
mineralization in the area west of the McClean South 8E pod, which
has few previous drill holes. Follow-up drilling is warranted
in this area and is expected to be planned by the MLJV for the
winter of 2022. Additionally, two other drill holes completed
at the McClean South target area during the winter program returned
uranium mineralization, as outlined in the summary table and
further detailed below.
Table 1 – 2021 McLean Lake Exploration Drilling - Mineralized
Intersections
Hole-ID
|
From
(m)
|
To
(m)
|
Length
(m)
|
eU3O8(%)(1)
|
MCS-26(2)
|
221.7
|
222.6
|
0.9(3)
|
0.08
|
MCS-31(2)
|
224.5
|
225.6
|
1.1(4)
|
0.14
|
MCS-34(2)
|
182.8
|
196.8
|
14.0(5)
|
5.04
|
Including(6)
|
192.3
|
196.2
|
3.9(5)
|
14.87
|
MCS-36(2)
|
165.4
|
168.5
|
3.1(7)
|
1.17
|
MCS-37(2)
|
164.3
|
170.7
|
6.4(7)
|
0.52
|
Notes:
|
(1) Radiometric equivalent
U3O8 ("eU3O8")
derived from a calibrated gamma downhole probe
|
|
(2) Intersection
interval is composited above a cut-off grade of 0.05%
eU3O8
|
|
(3) True thickness
is estimated to be approximately 40% of stated downhole
length
|
|
(4) True thickness
is estimated to be approximately 65% of stated downhole
length
|
|
(5) True thickness is estimated to be
approximately 85% of stated downhole length.
|
|
(6) Intersection interval is
composited above a cut-off grade of 1.0%
eU3O8
|
|
(7) True thickness is estimated to be
approximately 90% of stated downhole length.
|
Drill hole MCS-26, was designed to test the up-dip extension of
basement mineralization discovered in historical drill hole MCS-13
at the unconformity. The hole was collared approximately 12.5
metres north of MCS-13 and drilled at an azimuth of 345° and a
dip of -78°. MCS-26 intersected low-grade mineralization
approximately 49 metres below the unconformity, coincident with the
basal contact of an anatectic granite.
Drill hole MCS-31, drilled at an azimuth of 345° and a dip
of -80°, was designed to test the 120 metre gap between historical
drill fences immediately east of the McClean South 8E pod on Line
835E of the 2005 McClean South EM survey grid. Low-grade
mineralization was intersected in the basement, approximately 50
metres below the unconformity contact, associated with a redox
front located along the basal contact of a graphitic pelite.
Radiometric Equivalent Grades, Sampling, Analysis and Data
Verification
Following the completion of a drill hole, the hole is
radiometrically logged using a downhole slimline gamma probe, which
collects continuous readings of radioactivity along the length of
the drill hole. Probe results are then calibrated using an
algorithm calculated from the comparison of probe results against
geochemical analyses in the area. The gamma-log results provide an
immediate radiometric equivalent uranium value (eU%, then converted
to eU3O8%) for the hole, which, except in
very high grade zones, is reasonably accurate. The Company
typically reports eU3O8, as a preliminary
result and subsequently reports definitive assay grades following
sampling and chemical analysis of the mineralized drill core.
Assay sample intervals are generally 50 centimetres long, except
where higher or lower grade mineralization boundaries fall within
the interval. In that case, two 25 centimetre samples are
collected. Flank samples of 1.0 metre are always collected where
mineralization is located. Systematic geochemistry samples are
collected every 10 metres down the hole.
All assayed core is split in half, with one half retained and
the other sent to the SRC Geoanalytical Laboratory in Saskatoon for analysis. Control samples are
routinely assayed with each batch of core samples analyzed.
For results from McClean Lake, Orano Canada has performed
detailed QAQC and data verification, where possible, of all
datasets. Denison has performed additional QAQC and data
verification of the drilling database including review of the QAQC
methods and review of downhole probe and eU calculation
procedures.
McClean South 8E and 8W Pods
The McClean South trend is located parallel to and approximately
500 metres south of the McClean North trend in the southwestern
portion of the property (see Figure 1). The McClean South
target area has been the subject of historic exploration drilling,
resulting in the discovery and subsequent delineation of the 8W and
8E pods, which are situated along a N70° to 80° trend in close
proximity to the McClean Lake granitic dome to the south (see
Figure 2). The dip of the geology appears to range from 45° to 65°
S in the 8W pod. In contrast, the dip within the 8E pod is steeper
and undulating but is most commonly around 80° S. Several graphitic
horizons of varying thickness are present in the McClean South
target area and extend beyond and into other parts of the
property.
Mineralization within the 8W pod is currently understood to be
primarily hosted within the sandstone; however, it has also been
locally encountered within the basement of the 8W pod. The
mineralization within the sandstone can extend upwards of 50 metres
above the unconformity. Mineralization within the 8E pod is
currently understood to overlap the unconformity, with
mineralization located both in the sandstone and and within the
upper basement. The 8W pod is approximately 260 metres long, and
the 8E pod is approximately 310 metres long. The maximum width of
the pods is 50 metres, and the maximum thickness of the pods is as
much as 100 metres.
No current resource estimate, prepared in accordance with NI
43-101, exists for the mineralization identified to date at the
McClean South pods.
About McClean Lake
The McClean Lake property is located on the eastern edge of
the Athabasca Basin in northern
Saskatchewan, approximately 750
kilometres north of Saskatoon.
Denison holds a 22.5% ownership interest in the MLJV and the
McClean Lake uranium mill, one of the world's largest uranium
processing facilities. The mill has licensed annual production
capacity of 24.0 million pounds U3O8, and is
currently operating under a 10-year license expiring in 2027. The
mill is contracted to process the ore from the Cigar Lake mine
under a toll milling agreement (up to 18.0 million pounds
U3O8 per year). The MLJV is an unincorporated
contractual arrangement between Orano Canada with a 77.5% interest
and Denison with a 22.5% interest. Orano Canada is the operator of
the project.
McClean Lake consists of nine known uranium deposits: JEB;
Sue A, B, C, D and E; McClean North; McClean South; and
Caribou. In 1995, the development of the McClean Lake project
began. Mill construction commenced in 1995 and ore processing
activities reached commercial production in November 1999.
Mining operations commenced in 1996 and the following deposits have
been mined out to date: JEB (1996 to 1997), Sue C (1997 to
2002), Sue A (2005 to 2006), Sue E (2005 to 2008) and Sue B (2007
to 2008).
About Denison
Denison is a uranium exploration and development company with
interests focused in the Athabasca
Basin region of northern Saskatchewan,
Canada. The Company's flagship project is the 90% owned
Wheeler River Uranium Project, which is the largest undeveloped
uranium project in the infrastructure rich eastern portion of the
Athabasca Basin region of northern
Saskatchewan. In addition to
Denison's interests in the MLJV, Denison's interests in
Saskatchewan include a 25.17%
interest in the Midwest Main and Midwest A deposits, and a 66.90%
interest in the Tthe Heldeth Túé ("THT," formerly J Zone) and
Huskie deposits on the Waterbury Lake property. Each of Midwest
Main, Midwest A, THT and Huskie are located within 20 kilometres of
the McClean Lake mill.
Denison is engaged in mine decommissioning and environmental
services through its Closed Mines group (formerly Denison
Environmental Services), which manages Denison's Elliot Lake reclamation projects and provides
post-closure mine care and maintenance services to a variety of
industry and government clients.
Denison is also the manager of Uranium Participation Corp., a
publicly traded company which invests in uranium oxide and uranium
hexafluoride.
Qualified Persons
The technical information contained in this release has been
reviewed and approved by Mr. Andrew
Yackulic, P. Geo., Denison's Director, Exploration, who is a
Qualified Person in accordance with the requirements of NI
43-101.
Cautionary Statement Regarding Forward-Looking
Statements
Certain information contained in this news release
constitutes 'forward-looking information', within the meaning of
the applicable United States and
Canadian legislation concerning the business, operations and
financial performance and condition of Denison.
Generally, these forward-looking statements can be identified
by the use of forward-looking terminology such as 'plans',
'expects', 'budget', 'scheduled', 'estimates', 'forecasts',
'intends', 'anticipates', or 'believes', or the negatives and/or
variations of such words and phrases, or state that certain
actions, events or results 'may', 'could', 'would', 'might' or
'will be taken', 'occur', 'be achieved' or 'has the potential
to'.
In particular, this news release contains forward-looking
information pertaining: the interpretation of the results from the
McClean South exploration program undertaken by Orano Canada,
underlying assumptions and the MLJV's intentions with respect
thereto;; exploration plans and objectives; and expectations
regarding its joint venture ownership interests and the continuity
of its agreements with its partners.
Forward looking statements are based on the opinions and
estimates of management as of the date such statements are made,
and they are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of Denison to be materially different
from those expressed or implied by such forward-looking statements.
For example, Denison is relying on the information provided, and
the procedures undertaken, by the operator of the MLJV and its
ability to oversee the exploration results disclosed herein is
different than for Denison-operated projects; areas of interest for
further exploration selected based on interpretation of current and
historic exploration may not result in findings of significance
after further testing; the results and interpretations of historic
exploration and mineralization may not be maintained after further
testing and analysis; and results of exploration reported as
radiometric equivalent grades are preliminary in nature and may not
be maintained after further sampling and chemical analysis; and the
MLJV or the operator thereof may not complete any further
exploration or testing related to these exploration results, over
which Denison has limited control. Denison believes that the
expectations reflected in this forward-looking information are
reasonable but no assurance can be given that these expectations
will prove to be accurate and results may differ materially from
those anticipated in this forward-looking information. For a
discussion in respect of risks and other factors that could
influence forward-looking events, please refer to the factors
discussed in Denison's Annual Information Form dated March 29, 2021 under the heading 'Risk Factors'.
These factors are not, and should not be construed as being
exhaustive.
Accordingly, readers should not place undue reliance on
forward-looking statements. The forward-looking information
contained in this news release is expressly qualified by this
cautionary statement. Any forward-looking information and the
assumptions made with respect thereto speaks only as of the date of
this news release. Denison does not undertake any obligation to
publicly update or revise any forward-looking information after the
date of this news release to conform such information to actual
results or to changes in Denison's expectations except as otherwise
required by applicable legislation.
Cautionary Note to United States Investors Concerning
Estimates of Mineral Resources and Mineral
Reserves: This presentation may use terms such as
"measured", "indicated" and/or "inferred" mineral resources and
"proven" or "probable" mineral reserves, which are terms defined
with reference to the guidelines set out in the Canadian Institute
of Mining, Metallurgy and Petroleum ("CIM") CIM Definition
Standards on Mineral Resources and Mineral Reserves ("CIM
Standards"). The Company's descriptions of its projects using
CIM Standards may not be comparable to similar information made
public by U.S. companies subject to the reporting and disclosure
requirements under the United
States federal securities laws and the rules and regulations
thereunder.
This press release contains information relating to third
parties derived from third-party publications and/or reports which
Denison believes are reliable but have not been independently
verified by the Company.
Figure 1 - McClean Lake Project
Claims
Figure 2 - McLean
Lake South - 2021 Drilling
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SOURCE Denison Mines Corp.