Denison Announces Temporary Suspension of Wheeler River Environmental Assessment Amidst COVID-19 Disruptions
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Denison Mines Corp.
1100 – 40 University Ave
Toronto, ON M5J 1T1
www.denisonmines.com
PRESS RELEASE
DENISON ANNOUNCES TEMPORARY SUSPENSION OF WHEELER RIVER
ENVIRONMENTAL ASSESSMENT AMIDST COVID-19 DISRUPTIONS
Toronto, ON – March 20, 2020. Denison Mines Corp. (“Denison” or the “Company”) (DML: TSX, DNN:
NYSE American) announced today a temporary suspensi on of activities related to the environmental
assessment (“EA”) for the Company’s 90% owned Wheeler River Uranium Project (“Wheeler River” or the
“Project”). An important element of the EA process is the completion of extensive in-person engagemen t
and consultation activities with various interested parties and community groups. The decision to suspend
the EA process and other discretionary activities i s motivated by the significant social and economic
disruption that has emerged as a result of the COVI D-19 pandemic and the Company’s commitment to
ensure employee safety, support public health effor ts to limit transmission of COVID-19, and exercise
prudent financial discipline.
David Cates, Denison’s President & CEO, commented, “Considering the interactive nature of the
engagement and consultation activities planned to s upport the Environmental Assessment process for
Wheeler River, and the considerable uncertainty tha t has impacted capital markets, we believe that the
decision to temporarily suspend the EA is in the best interest of all interested parties. Our team made great
progress in 2019 and early 2020 towards advancing t he EA and de-risking the proposed In-Situ Recovery
(‘ISR’) uranium mine planned for the Phoenix deposit. During the temporary suspension we expect to be
focused on making the most of our positive momentum and positioning ourselves to quickly resume the
process when appropriate.”
The duration of the temporary suspension is unknown at this time. The Company intends to monitor the
COVID-19 situation and will coordinate the resumpti on of the EA with the applicable regulators and
interested parties. Further information will be provided as appropriate.
Background on the Project’s Environmental Assessment Process
The EA is a planning and decision-making tool, whic h involves predicting potential environmental effec ts
throughout the project lifecycle (construction, ope ration, decommissioning and post-decommissioning) a t
the site, and within the local and regional assessm ent areas. During the first quarter of 2019, Denis on
submitted a Project Description to the Canadian Nuc lear Safety Commission (“CNSC”) and a Technical
Proposal to the Saskatchewan Ministry of Environmen t ('SK MOE') to support the advancement of an In-
Situ Recovery (“ISR”) uranium mine at Wheeler River. This work followed the release of the Pre-Feasibility
Study (“PFS”) completed for Wheeler River in late 2 018, considering the potential economic merit of
developing the Phoenix deposit as an ISR operation and the Gryphon deposit as a conventional
underground mining operation (see press release dated October 30, 2018) .
The Project Description and Technical Proposal were accepted in the second quarter of 2019, initiating the
EA process for the Project in accordance with the r equirements of both the Canadian Environmental
Assessment Act, 2012 ('CEAA 2012') and the Saskatchewan Environmental Assessment Act . In late
December 2019, Denison received a Record of Decisio n from the CNSC on the scope of the factors to be
taken into account for the Wheeler EA, which indicate that the EA will follow the CNSC's generic guidelines.
Significant progress has been made in collecting en vironmental baseline data in previous years, and th e
current focus of EA related activities is split between engagement with interested parties and the completion
of various environmental assessments and studies re lated to the predicted environmental effects of the
Project.
The Company identified the EA process as a key element of the Project's critical path. Accordingly, Denison
initiated various studies and assessments to suppor t the preparation of the Project Environmental Impa ct
Statement (“EIS”), following the decision to advanc e the Wheeler River project in late 2018 (see press
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release dated December 18, 2018). The decision to temporarily suspend the EA process is expected to
impact the project development schedule outlined in the PFS for Wheeler River. Given the uncertainty
associated with the duration of the suspension, the Company is not currently able to estimate the impact to
schedule. Further information, including a revised development schedule, will be provided as appropriate.
Impact on Outlook for 2020
The Company announced its plans for 2020 in its ann ual MD&A for the year ended December 31, 2019
(the “2020 Outlook”). Those plans identified two discretionary work programs related to the advanceme nt
of Wheeler River: (1) the continuation of the EA and submission of a draft EIS to the Federal and Provincial
regulators (approximately $7.0 million), and (2) the completion of further ISR field testing to support wellfield
designs for a future Feasibility Study (approximate ly $6.6 million). Given the decision to suspend th e EA,
and the current economic disruption associated with COVID-19, these work programs are not currently
expected to advance in 2020. Based on the 2020 Out look, the Company intends to maintain its
environmental and technical teams in 2020 and to se lectively advance certain scopes of work, outside o f
the discretionary work programs, to position the Company to quickly resume project development activities
in the future and minimize the impact to the project schedule.
About Wheeler River
Wheeler River is the largest undeveloped uranium pr oject in the infrastructure rich eastern portion of the
Athabasca Basin region, in northern Saskatchewan – including combined Indicated Mineral Resources of
132.1 million pounds U 3O8 (1,809,000 tonnes at an average grade of 3.3% U 3O8), plus combined Inferred
Mineral Resources of 3.0 million pounds U 3O8 (82,000 tonnes at an average grade of 1.7% U 3O8). The
project is host to the high-grade Phoenix and Gryph on uranium deposits, discovered by Denison in 2008
and 2014, respectively, and is a joint venture betw een Denison (90% and operator) and JCU (Canada)
Exploration Company Limited (10%).
Pursuant to the PFS, the Project is estimated to have mine production of 109.4 million pounds U 3O8 over a
14-year mine life, with a base case pre-tax NPV of $1.31 billion (8% discount rate), Internal Rate of Return
("IRR") of 38.7%, and initial pre-production capita l expenditures of $322.5 million. The Phoenix ISR
operation is estimated to have a stand-alone base c ase pre-tax NPV of $930.4 million (8% discount rate ),
IRR of 43.3%, initial pre-production capital expend itures of $322.5 million, and industry leading aver age
operating costs of US$3.33/lb U 3O8. The PFS is prepared on a project (100% ownership) and pre-tax basis,
as each of the partners to the Wheeler River Joint Venture are subject to different tax and other obligations.
Further details regarding the PFS, including additional scientific and technical information, as well as after-
tax results attributable to Denison's ownership int erest, are described in greater detail in the NI 43 -101
Technical Report titled "Pre-feasibility Study for the Wheeler River Uranium Project, Saskatchewan,
Canada" dated October 30, 2018 with an effective da te of September 24, 2018. A copy of this report is
available on Denison's website and under its profil e on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov/edgar.shtml.
About Denison
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin
region of northern Saskatchewan, Canada. In additio n to the Wheeler River project, Denison’s Athabasca
Basin exploration portfolio consists of numerous pr ojects covering approximately 305,000 hectares.
Denison’s interests in the Athabasca Basin also include a 22.5% ownership interest in the McClean Lake
joint venture (“MLJV”), which includes several uranium deposits and the McClean Lake uranium mill, which
is currently processing ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest
in the Midwest and Midwest A deposits, and a 66.57% interest in the J Zone and Huskie deposits on the
Waterbury Lake property. Each of Midwest, Midwest A, J Zone and Huskie are located within 20 kilometres
of the McClean Lake mill.
Denison is also engaged in mine decommissioning and environmental services through its Closed Mines
group (formerly Denison Environmental Services), wh ich manages Denison's Elliot Lake reclamation
projects and provides post-closure mine care and ma intenance services to a variety of industry and
government clients.
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Denison is also the manager of Uranium Participatio n Corp., a publicly traded company which invests in
uranium oxide and uranium hexafluoride.
For more information, please contact
David Cates (416) 979-1991 ext 362
President and Chief Executive Officer
Sophia Shane (604) 689-7842
Investor Relations
Follow Denison on Twitter @DenisonMinesCo
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 terminolog y 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 r esults ‘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 to the following: the EA process, including its intended
scope, objectives and timing; the results of the PFS and expectations with respect thereto (including potential for delays as a result of
the temporary suspension of the EA and other discre tionary programs and expenditures); evaluation and development plans and
objectives generally and in Denison’s 2020 Outlook; 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, uncert ainties and other factors that may cause the actual results, level of activity,
performance or achievements of Denison to be materi ally different from those expressed or implied by s uch forward-looking
statements. For example, if market conditions remai n volatile and/or COVID-19 mitigation measures resu lt in more social and
economic disruptions, Denison may need to further re-assess its discretionary and non-discretionary expenditures and programs for
2020 and beyond, which could have significant impacts on Denison and/or the development of the Project. 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 materia lly 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 13, 2020 under the hea ding ‘Risk Factors’. These factors are not, and should not be construed as
being exhaustive.
Accordingly, readers should not place undue relianc e on forward-looking statements. The forward-lookin g 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 t his news release to conform such information to act ual results or to changes in
Denison's expectations except as otherwise required by applicable legislation.
Cautionary Note to United States Investors Concerni ng Estimates of Measured, Indicated and Inferred Mi neral Resources
and Probable Mineral Reserves: This news release may use the terms 'measured', 'i ndicated' and 'inferred' mineral resources.
United States investors are advised that while such terms have been prepared in accordance with the definition standards on mineral
reserves of the Canadian Institute of Mining, Metal lurgy and Petroleum referred to in Canadian Nationa l Instrument 43-101 Mineral
Disclosure Standards ("NI 43-101") and are recogniz ed and required by Canadian regulations, the United States Securities and
Exchange Commission ("SEC") does not recognize them. 'Inferred mineral resources' have a great amount of uncertainty as to their
existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will
ever be upgraded to a higher category. Under Canadi an rules, estimates of inferred mineral resources m ay not form the basis of
feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or
indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to
assume that all or any part of an inferred mineral resource exists, or is economically or legally mine able. The estimates of
mineral reserves in this news release have been prepared in accordance with NI 43-101. The definition of probable mineral reserves
used in NI 43-101 differs from the definition used by the SEC in the SEC's Industry Guide 7. Under th e requirements of the SEC,
mineralization may not be classified as a "reserve" unless the determination has been made, pursuant to a "final" feasibility study that
the mineralization could be economically and legall y produced or extracted at the time the reserve det ermination is made. Denison
has not prepared a feasibility study for the purpos es of NI 43-101 or the requirements of the SEC. Ac cordingly, Denison's probable
mineral reserves disclosure may not be comparable t o information from U.S. companies subject to the re porting and disclosure
requirements of the SEC.