Denison Announces Focused CAD$14.5M Exploration and Evaluation Program Budget FOR 2017
Denison Mines Corp.
1100 – 40 University Ave
Toronto, ON M5J 1T1
www.denisonmines.com
@DenisonMinesCo
PRESS RELEASE
DENISON ANNOUNCES FOCUSED CAD$14.5M EXPLORATION AND
EVALUATION PROGRAM BUDGET FOR 2017
Toronto, ON – January 17, 2017 Denison Mines Corp. (“Denison” or the “Company”) (DML: TSX, DNN:
NYSE MKT) is pleased to announce the details of its CAD$14.5 million (Denison’s share) exploration and
evaluation budget for 2017. The budget is focused on the Company’s 60% owned flagship Wheeler River
project, which is located in the infrastructure rich eastern portion of the Athabasca Basin region, in northern
Saskatchewan.
Following a break in field activities, after the completion of a highly successful summer exploration program
in October 2016, exploration drilling and project devel opment work resumed at Wheeler River in early
January 2017. The 2017 work program for Wheeler River includes approximately 46,000 metres of infill
and exploration drilling designed to confirm and expand uranium mineralization at or near the Gryphon
deposit, ahead of the completion of a Pre-Feasibility Study (“PFS”) for the project. Accordingly, a
CAD$12.5 million work program and budget has been app roved for Wheeler River in 2017, of which
Denison’s share will be CAD$9.4 million – represent ing 75% of the project budget. As previously
announced on January 10, 2017, Denison has entered into an agreement with its Wheeler River Joint
Venture partners, Cameco Corp. (“Cameco”) and JCU (Canada) Exploration Limited (“JCU”) to fund 75%
of Joint Venture expenses in 2017 and 2018 (ordinarily 60%) in exchange for an increase in Denison’s
interest in the project to up to approximately 66%. Under the terms of the agreement, Cameco will fund
50% of its ordinary 30% share in 2017 and 2018, and JCU is expected to continue to fund its 10% interest
in the project.
Additional exploration programs are expected to co mmence in the coming weeks on five high-priority
pipeline projects included in Denison’s significant Athabasca-focused exploration portfolio. High-priority
projects for 2017 include the recently acquired Hook-Carter project, in the western portion of the Athabasca
Basin, as well as the Waterbury Lake, Murphy Lake, Crawford Lake and Moon Lake South projects in the
eastern portion of the Athabasca Basin. The Company’s exploration and evaluation activities for 2017 are
fully funded with a total budget of approximately CA D$14.5 million (Denison’s share). Including partner’s
share of expenses, the projected 2017 work program is budgeted to cost over CAD$20.5 million, and is
expected to include approximately 68,000 metres of drilling across eight of Denison’s projects.
David Cates, President and CEO of Denison, commented, “Following the recent announcement of our
agreement to increase our interest in our flagship Wheeler River project, from our existing 60% interest to
up to approximately 66%, it should come as no surprise that our 2017 budget is heavily weighted towards
the work required to advance Wheeler River towards the completion of a PFS. With new mineralization
discovered in the immediate vicinity of the Gryphon deposit on numerous fronts in 2016, and the addition
of the highly prospective Hook-Carter project to our exploration pipeline portfolio in late 2016, we are
optimistic that 2017 is poised to be another high- impact year for Denison’s Saskatoon based
exploration team.”
Wheeler River Project
In April 2016, Denison released a Preliminary Econom ic Analysis (“PEA”) for the Wheeler River project,
which evaluated the economic merit of co-develop ing the Gryphon and Phoenix deposits. The PEA
returned a Pre-Tax internal rate of return (“IRR”) of 20.4%, based on a uranium price of US$44/lb U3O8 and
initial CAPEX for Denison’s 60% interest of CAD$336 million. A Pre-Feasibility Study (“PFS”) was initiated
later in 2016 with completion originally expected in mid-2017.
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Since the PEA was released, Denison completed a hi ghly successful 2016 explor ation drilling program,
which identified additional mineralization in the imm ediate vicinity of the Gryphon deposit – including the
newly discovered D Series lenses to the northwest and the up-dip and down-dip expansion of the A and B
Series lenses. These discoveries provide potential to materially increase the estimated mineral resources
at Gryphon, which could extend the mine life in the economic model for the Gryphon deposit and ultimately
improve the economics of the project. As a result, t he original timeline for completing infill drilling at the
Gryphon deposit during H1-2017 has been modified to allow for additional exploration and infill drilling
throughout the 2017 winter and summer field seasons. Additional infill drilling is intended to improve the
indicated resource base at Gryphon for inclusion in the PFS. Consequently, the completion of the PFS has
also been deferred from H2-2017 to H1-2018.
Project Development
Project development field programs, including envir onmental and engineering data collection programs
required for the PFS and Environmental Assessment process, commenced at Wheeler River in June 2016
(see Denison’s Press Release dated November 2, 2016 for a detailed update). Existing data collection
programs will continue during 2017 and additional programs, including metallurgical testing and analysis,
will be initiated. Further engineering studies relat ed to shaft sinking methodologies, mining methods and
water treatment will also be initiated in 2017. In addition, throughout the year, Denison expects to continue
to advance and strengthen relationships with various northern communities.
Gryphon Infill Drilling
Concurrent with project development field programs, infill drilling will continue at the Gryphon deposit in
2017 in order to upgrade the inferred resources to an i ndicated level of confidence. This drilling program
involves increasing the previous 50 x 50 metre drill spacing to an approximate 25 x 25 metre spacing across
the previously defined A, B and C Series lenses of the Gryphon deposit. An initial set of five infill drill holes
was completed during 2016 and approximately 35 infill drill holes are expected to be completed during
2017, to achieve the 25 x 25 metre spacing. The di rectional drilling method utilized during 2016, which
demonstrated significant cost savings and reliable accuracy, will continue in 2017.
Gryphon Exploration Drilling
Exploration drilling outside of the Gr yphon deposit during 2016 resulted in the discov ery of (1) new high
grade lenses of mineralization approximately 200 metres northwest of the Gryphon deposit (termed the D
Series lenses), which have been delineated over approxi mately 330 metres of strike length, and (2) high
grade intersections down-dip and along strike of the Gryphon deposit A and B Series lenses (see Denison’s
Press Release dated November 17, 2016). These high grade results are located outside of the previously
released inferred resources, in areas that remain op en for further expansion and constitute priority target
areas for drill testing in 2017.
High Priority Pipeline Projects
Hook-Carter Project
Denison’s Hook-Carter project includes the Hook-Carter claims acquired from ALX Uranium Corp. (“ALX”)
and the contiguous Coppin Lake claims acquired from AREVA Resources Canada Inc. and UEX
Corporation. The Hook-Carter project is owned 80% by Denison and 20% by ALX, and Denison has agreed
to fund ALX's share of the first CAD$12M in expenditures (see Denison’s Press Releases dated October
13th and November 7 th, 2016). The Hook-Carter project consists of 38 claims, totaling nearly 20,000
hectares, and is located near the southwestern margin of the Athabasca Basin. The project is highlighted
by 15 kilometres of strike potential along the pro lific Patterson Lake Corridor – host to the recently
discovered Triple R deposit (Fission Uranium Corp.), Arrow deposit (N exGen Energy Ltd.), and Spitfire
discovery (Purepoint Uranium Gr oup Inc., Cameco Corp., and AREVA Re sources Canada Inc.), which
occur within 8 to 20 kilometres of the property. T he property is significant ly underexplored compared to
other properties along this trend, with only five of eight historic drill holes located along the 15 kilometres of
Patterson Lake Corridor strike length. The property also covers significant portions of the Derkson and
Carter Corridors which provide additional priority target areas.
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Denison’s work plan for Hook-Carter in 2017 incl udes initial ground resistivity and electromagnetic
surveying during winter, followed by a reconnaissan ce five-hole drill program (2,700 metres) during the
summer months. Work is expected to be focused on the southwestern portion of the property on the
Patterson Lake Corridor, where Athabasca sandstone thicknesses vary between 250 and 450 metres.
Waterbury Lake Project
Denison’s 63.01% owned Waterbury Lake project, which includes the J-Zone uranium deposit, is located
within 20 kilometres of the McClean Lake mill, and is situated near the Roughrider, Midwest and Midwest
A deposits. During the 2016 exploration program, D enison identified the new and highly prospective
Hamilton Lake trend, located on the western side of the property (see Denison’s Press Release dated
November 3, 2016). An initial two-hole drill fence iden tified features associated with unconformity-related
uranium deposits, including highly altered and st ructured sandstone and graphi tic basement rocks, an
unconformity offset, and anomalous geochemistry including 8.3 ppm uranium over the basal 25 metres of
sandstone and 0.5 metres intervals of 389 ppm and 299 ppm uranium immediately above the unconformity.
The Hamilton Lake trend has an interpreted minimum strike length of 4.5 kilometres to the south of the two
holes completed in 2016 and appears to continue for a further 9 kilometres to the north. No drilling has
been conducted along this trend outside of the two holes completed in 2016. A winter drill program of
approximately 10 holes (4,600 metres) is planned to test priority resistivity tar gets along this extensive
trend.
Murphy Lake Project
Exploration drilling during 2016 extended the strike length of mineralization and strong sandstone alteration,
originally encountered during the winter of 2015, from 200 to 850 metres. As outlined in Denison’s Press
Release dated April 21, 2016, highlight mineralized drill intercepts include 0.25% U3O8 over 6.0 metres (drill
hole MP-15-03), 0.13% U3O8 over 14.5 metres (drill hole MP-16-11) and 0.19% eU3O8 over 2.9 metres drill
hole (MP-16-08). The mineralization occurs at, or immediately above, the su b-Athabasca unconformity
(similar to other Athabasca unconformity-hosted deposits) and is open along strike both to the east and to
the west. A drilling program consisting of a total of eight drill holes (3,200 metres) is planned for the winter
of 2017 and is expected to test high-priority geop hysical and geological targets along strike of the
mineralized zone. The Murphy Lake property is lo cated approximately 30 kilome tres northwest of the
McClean Lake mill and is a joint venture between Denison (78.94%) and Eros Resources Corp. (21.06%).
Crawford Lake and Moon Lake South Projects
Denison continues to receive encouraging results from the CR-3 conductive trend located on the Crawford
Lake property (100% Denison) and the Moon Lake South property (Denison earn-in option, currently 100%
owned by CanAlaska Uranium Ltd). The CR-3 trend is located approximately 2 kilometres west of the K-
Trend – a highly prospective trend which hosts the Gryphon deposit on Denison’s adjacent Wheeler River
property. Drilling during 2015 and 2016 at Crawford Lake identified strong alteration and significant
structure along the CR-3 trend, bot h within the Athabasca sandsto ne and underlying graphitic basement
rocks. An initial hole drilled at Moon Lake South in 2016 (MS-16-01) on the CR-3 trend intersected 0.1%
U3O8 over 0.5 metres at the sub-Athabasca unconformity, and was encompassed by a significant sandstone
alteration and geochemical halo (see Denison’s Press Release dated April 21, 2016). The CR-3 trend has
been interpreted over a distance of approximately nine kilometres with only six drill holes completed to date.
The trend is completely untested to the northeast of drill hole MS-16-01 on the Moon Lake South property.
Work planned for 2017 along the CR-3 conductive trend in cludes a resistivity survey at Moon Lake South
during the winter and a four-hole summer drill program (2,300 metres) to test priority targets at both
Crawford Lake and Moon Lake South.
Non-Operated Projects
Drilling programs are also planned in 2017 for joint venture projects operated by AREVA Resources Canada
Inc., including 4,500 metres of drilling in approximat ely 15 holes at Wolly (22.5% Denison), and 4,800
metres of drilling in approximately 18 holes at McClean Lake (22.5% Denison). No field work is planned in
2017 for the Mann Lake project (30% Denison), which is operated by Cameco Corp.
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Illustrative Figures & Further Details
Figure 1 provides a map of Denison’s Athabasca Basin mineral dispositions with priority exploration projects
outlined in bold. A detailed location and basement geology map for Wheeler River is provided in Figure 2.
A plan map of the northeast plunging Gryphon deposit mi neralized lenses, projected up to the simplified
basement geology at the sub-Athabasca unconformity, is provided in Figure 3. The plan map shows the
location of the D Series lenses, interpreted from the 2016 drilling and assay results. All mineralized lenses
are defined using a 0.05% U 3O8 grade shell and minimum thickness of two metres. Assay results shown
have been previously reported in D enison’s Press Release dated November 17, 2016. All Gryphon drill
holes shown are drilled at a high angle to mineralization to allow for better evaluation of true thicknesses
which are expected to be approximately 75% of the intersection lengths.
Further details regarding the Gryphon deposit and the current mineral resource estimates for Wheeler River
are provided in the NI 43-101 Technical Report for t he Wheeler River project titled "Preliminary Economic
Assessment for the Wheeler River Uranium Project, Saskatchewan, Canada" dated April 8, 2016 with an
effective date of March 31, 2016. A copy of this report is availabl e on Denison's website and under its
profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.sht ml. Further details on
Denison’s pipeline exploration proj ects are available in the Company’s MD&A available on Denison's
website and under its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml.
Qualified Person & Assay Procedures
The disclosure of a scientific or technical nature contained in this news release was prepared by Dale
Verran, MSc, Pr.Sci.Nat., Denison's Vice President, Exploration, who is a Qualified Person in accordance
with the requirements of NI 43-101.
Drill core with anomalous total gamma radioactivity (> 500 counts per second) was selected for sampling
and uranium assay over 0.5 metre intervals. Sampling is undertaken on site by splitting the core in half,
with one half submitted for analysis and the other half retained in the core box for future reference. Uranium
assays are performed by the Sask atchewan Research Council ("SRC") Geoanalytical Laboratories using
an ISO/IEC 17025:2005 accredited method for the determination of U 3O8 weight %. Sample preparation
involves crushing and pulverizing core samples to 90% passing -106 microns. The resultant pulp is digested
using aqua-regia and the solution analyzed for U3O8 weight % using ICP-OES. For further details regarding
the description of the data verification, assay proc edures and the quality assurance program and quality
control measures applied by Denison, please see Denison's Annual Information Form dated March 24,
2016 available under Denison's profile on SEDAR at www.sedar.com, and its Form 40-F available on
EDGAR at www.sec.gov/edgar.shtml.
About Wheeler River
The Wheeler River property is a joint venture between Denison (60% and operator), Cameco Corp. (30%),
and JCU (Canada) Exploration Company Limited (10%), and is host to the high-grade Gryphon and Phoenix
uranium deposits discovered by Denison in 2014 and 2008, respectively. The Gryphon deposit is hosted in
basement rock and is currently estimated to contain inferred resources of 43.0 million pounds U3O8 (above
a cut-off grade of 0.2% U3O8) based on 834,000 tonnes of mineralization at an average grade of 2.3% U3O8.
The Phoenix unconformity deposit is located approximately 3 kilometres to the southeast of Gryphon and
is estimated to include indicat ed resources of 70.2 million pounds U 3O8 (above a cut-off grade of 0.8%
U3O8) based on 166,000 tonnes of mineralization at an average grade of 19.1% U 3O8, and is the highest
grade undeveloped uranium deposit in the world.
On April 4th, 2016, Denison announced the results of a Preliminary Economic Assessment (“PEA”) for the
Wheeler River Project, which considers the potent ial economic merit of co-developing the high-grade
Gryphon and Phoenix deposits as a single underground mining operation. The PEA returned a base case
pre-tax Internal Rate of Return ("IRR") of 20.4% bas ed on the current long term contract price of uranium
(US$44.00 per pound U 3O8), and Denison's share of estimated in itial capital expendi tures ("CAPEX") of
CAD$336M (CAD$560M on 100% ownership basis). Exploration results from the winter and summer 2016
drilling program have not been incorporated into the resource estimate or the PEA. The PEA is preliminary
in nature and includes inferred mineral resources that are considered too speculative geologically to have
the economic considerations applied to them to be categorized as mineral reserves, and there is no
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certainty that the preliminary ec onomic assessment will be realized. Mineral resources are not mineral
reserves and do not have demonstrated economic viab ility. On July 19th, 2016 Denison announced the
initiation of a Pre-Feasibility Study ("PFS") fo r the Wheeler River property and the complimentary
commencement of an infill drilling prog ram at the Gryphon deposit to br ing the inferred re sources to an
indicated level of confidence.
About Denison
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin
region of northern Saskatchewan. Including its 60% owned Wheeler Ri ver project, which hosts the high
grade Phoenix and Gryphon uranium deposits, Denison' s exploration portfolio consists of numerous
projects covering over 350,000 hectares in the infr astructure rich eastern Athabasca Basin. Denison's
interests in Saskatchewan also include a 22.5% ownership interest in the McClean Lake joint venture, 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 deposit and
a 63.01% interest in the J-Zone deposit on the Wa terbury Lake property. Both the Midwest and J Zone
deposits are located within 20 kilometres of the McClean Lake mill.
Denison is also engaged in mine decommissioning and environmental services through its Denison
Environmental Services division and is the manager of Uranium Participation 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 press release constitutes “forward-looking information”, within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and similar Canadian legislation concerning the business, operations and finan cial
performance and condition of Denison. Genera lly, these forward-looking statements can be identified by the use of forward-looki ng
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 press release contains forward-looking information
pertaining to the following: exploration (including drilli ng) and evaluation activities, plans and objectives; potential mineralization of
drill targets; the estimates of Denison's mineral resources and the results of its PEA.
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 c ause the actual results, level of activi ty,
performance or achievements of Denison to be materially different from those expre ssed or implied by such forward-looking
statements. Denison believes that the expec tations reflected in this forward-looki ng information are reasonable but there can b e no
assurance that such statements will prove to be accurate and may differ materially from those ant icipated in this forward looki ng
information. For a discussion in respect of risks and other factors that could influence forward-looking events, please refer to the “Risk
Factors” in Denison’s Annual Information Form dated March 24, 2016 available under its profile at www.sedar.com and in its Form
40-F available at www.sec.gov/edgar.shtml. These factors are not, and should not be construed as being, exhaustive.
Accordingly, readers should not place undue re liance on forward-looking statements. The forward-looking information contained i n
this press release is expressly qualified by this cautionary statement. Denison does not undertake any obligation to publicly update or
revise any forward-looking information after the date of this press release to conform such information to actual results or to changes
in its expectations except as otherwise required by applicable legislation.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources: This
press release may use the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while
such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission 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
Canadian rules, estimates of inferred mineral resources may 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 mineable.
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Figure 1: Denison’s Athabasca Basin mineral dispositions with priority exploration projects outlined in bold.
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Figure 2: Wheeler River property location and basement geology
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Figure 3: Plan map of the northeast plunging Gryphon mineralized lenses projected up to the simplified basement geology at the
sub-Athabasca unconformity. Yellow stars show select summer 2016 drilling highlights where high-grade mineralization is open.