Denison Reports Q3 2017 Results
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Denison Mines Corp.
1100 – 40 University Ave
Toronto, ON M5J 1T1
www.denisonmines.com
PRESS RELEASE
DENISON REPORTS Q3 2017 RESULTS
Toronto, ON – October 31, 2017 Denison Mines Corp. (“Denison” or the “Company”) (DML: TSX, DNN: NYSE MKT)
today filed its Consolidated Financial Statements and Managemen t’s Discussion & Analysis (“MD&A”) for the period
ended September 30, 2017. Both documents are available on the Company’s website at www.denisonmines.com or
on SEDAR (at www.sedar.com) and EDGAR (at www.sec.gov/edgar.shtml). The highlights below are derived from
these documents and should be read in conjunction with them. All amounts in this release are in U.S. dollars unless
otherwise stated.
David Cates, President and CEO of Denison commented, “The third quarter of 2017 truly showcased Denison’s ability
to add value through the use of the drill-bit. Our Saskatoon based exploration team has been busy drilling high-grade
uranium mineralization throughout the summer on our flagship Wheeler River project, as we delineate and expand the
Gryphon deposit, as well as the Waterbury Lake project, w here the team discovered a new basement hosted zone of
uranium mineralization called the ‘Huskie’ zone. It has been very exciting to see preliminary grades and assays
reported on these two projects all summer long, building up to quite a considerable body of high-grade results in areas
that are not currently included in any of our current resource estimates.
The results at Wheeler River are particularly encouraging, given our plan to update the resource estimate for the
Gryphon deposit following the receipt of final assays from an extended summer drilling season. We are confident that
we will achieve our goal of increasing both the confidence and size of the resource at Gryphon. The updated resource
estimate is expected to be an important part of the Pre-Feasibility Study (“PFS”) for the project, which is expected to
be completed in the first half of 2018. Taken together, it is a very exciting time for Wheeler River – as we are advancing
what is already the largest undeveloped uranium project in the infrastructure rich eastern Athabasca basin, towards
development.
At Waterbury, the emergence of the Huskie zone has brought new life to a project that already hosts the strategic
J Zone deposit. Huskie was discovered on the first drill hole of the summer program, and the mineralized footprint has
quickly expanded to the extent of drilling – measuring 100 me tres along strike and up to 120 metres along dip, with
multiple high-grade mineralized lenses having been interpret ed to date. Huskie is wide open and has the potential to
grow considerably with follow-up drilling expected to resume in 2018.”
Q3 2017 PERFORMANCE HIGHLIGHTS
Discovery of high-grade unconformity mineralization in new E series lenses at the Gryphon deposit
Drill hole WR-689D3, on the Company's 60% owned Wheeler River p roject, intersected high-grade unconformity-
hosted uranium mineralization approximately 250 metres along strike to the northeast and 200 metres up-dip of the
Gryphon deposit. Preliminary radiometric equivalent probe results ("eU3O8") from drill hole WR-689D3 are highlighted
by an interval of 5.0% eU 3O8 over 4.7 metres, including 8.5% eU 3O8 over 2.7 metres (see Denison press release
dated August 30, 2017). This int ersection adds to other high-gr ade intersections, at or immediately below the
unconformity, in the newly defined E series lenses, which occur outside of the current resources estimated for the
Gryphon deposit. Other highlight s of the E series lens intersec tions include 19.3% U 3O8 over 1.0 metres (drill hole
WR-507D2), and 6.2% U3O8 over 2.5 metres (drill hole WR-646) (see Denison press release s dated May 26, 2016
and November 17, 2016).
Continued expansion of the Gryphon D series lenses including thick and high-grade intersections
Drill holes from the summer 2017 drilling program, testing for additional mineralization within the D series of lenses
and outside of the Gryphon resource area, returned positive results, with the potential to add meaningful resources
to the Gryphon deposit. An update to the resource estimate for the project is planned following the receipt of assays.
A total of fifteen drill holes have been reported for the D ser ies lenses, with results expanding the mineralized zone
outwards from drill holes WR-641 (5.3% U 3O8 over 11.0 metres) and WR-633D3 (1.3% U 3O8 over 3.0 metres, plus
3.3% U3O8 over 13.5 metres, and 6.2% U 3O8 over 2.5 m) (see Denison press releases dated May 26, 2016 and
May 26, 2017). Preliminary radiometric equivalent grade results from recent drill holes are highlighted by 3.5% eU3O8
over 3.2 metres (drill hole WR-621D2), 4.8% eU3O8 over 3.7 metres (drill hole WR-694), 3.8% eU3O8 over 3.7 metres
(drill hole WR-690D2), 2.0% eU3O8 over 5.2 metres (drill hole WR-657D1) and 6.4% eU3O8 over 1.0 metre (drill hole
WR-690D1) (see Denison press releases dated July 24, 2017 and August 30, 2017).
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Discovery of the new high-grade basement-hosted Huskie zone at Waterbury Lake
With the first hole of the summer 2017 drilling program at Waterbury Lake, a new high-grade, and basement-hosted,
zone of uranium mineralization (the “Huskie” zone) was discovered approximately 1.5 kilometres to the northeast of
the property’s J Zone deposit. The nine drill hole program, com pleted on an approximate 50 x 50 metre spacing,
included seven mineralized holes with high-grades occurring in four holes. Highlight assay results included 9.1%
U3O8 over 3.7 metres, including 16.8% U3O8 over 2.0 metres (drill hole WAT17-446A), 1.7% U 3O8 over 7.5 metres,
including 8.2% U3O8 over 1.5 metres (drill hole WAT17-449) and 1.5% U 3O8 over 4.5 metres, including 3.9% U 3O8
over 1.0 metre (drill hole WAT17-450A). The mineralized zone oc curs between 50 and 175 metres vertically below
the sub-Athabasca unconformity ( 265 and 390 metres vertically b elow surface) and measures approximately 100
metres along strike (the current extent of drilling) and up to 120 metres along dip, with individual lenses varying in
interpreted true thickness between approximately 2 and 7 metres . The zone is wide-open in all directions (see
Denison news release dated October 11, 2017).
ABOUT DENISON
Denison was formed under the laws of Ontario and is a reporting issuer in all Canadian provinces. Denison’s common
shares are listed on the Toront o Stock Exchange (the “TSX”) und er the symbol “DML” and on the NYSE American
exchange (the “NYSE MKT”) under the symbol “DNN”.
Denison is a uranium exploration and development company with i nterests focused in the Athabasca Basin region of
northern Saskatchewan, Canada. In addition to its 60% owned Whe eler River project, which hosts the high grade
Phoenix and Gryphon uranium dep osits, Denison's exploration por tfolio consists of numerous projects covering
approximately 355,000 hectares in the Athabasca Basin region, i ncluding 335,000 hectares in the infrastructure rich
eastern portion of the Athabasca Basin. Denison's interests in Saskatchewan 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 deposit and a 64.22% interest in the J Zone deposit and newly discovered Huskie zone on the Waterbury
Lake property. The Midwest and J Zone deposits, as well as the Huskie zone, are located within 20 kilometres of the
McClean Lake mill.
Denison is engaged in mine decommissioning and environmental services through its Denison Environmental Services
(“DES”) division, which manages Denison’s Elliot Lake reclamati on projects and provides post-closure mine and
maintenance services to a variety of industry and government clients.
Denison is also the manager of Uranium Participation Corporatio n (“UPC”), a publicly traded company listed on the
TSX under the symbol “U”, which invests in uranium oxide in concentrates (“U3O8”) and uranium hexafluoride (“UF6”).
SELECTED QUARTERLY FINANCIAL INFORMATION
(in thousands)
As at
September 30,
2017
As at
December 31,
2016
Financial Position:
Cash and cash equivalents $ 4,393 $ 11,838
Investment in debt instruments (GIC’s) $ 32,215 $ -
Cash, cash equivalents and GIC’s $ 36,608 $ 11,838
Working capital $ 31,572 $ 9,853
Property, plant and equipment $ 200,377 $ 187,982
Total assets $ 263,168 $ 217,423
Total long-term liabilities $ 65,753 $ 37,452
(In thousands, except for per share amounts)
Q3 2017 Q3 2016
Continuing Operations:
Total revenues $ 2,717 $ 3,489
Net loss $ (5,777) $ (2,506)
Basic and diluted loss per share $ (0.01) $ -
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RESULTS OF CONTINUING OPERATIONS
Revenues
Revenue from DES during Q3 2017 was $2,007,000, including conti nued revenues from the Company’s recently
renewed cornerstone contract with BHP Billiton Limited, which relates to the management and operation of several of
BHP's decommissioned mine sites in Ontario and Quebec. The Company also recognized $254,000 in revenue during
the quarter from its management contract with UPC.
On February 13, 2017, Denison closed an arrangement under which Denison received an upfront payment of
$32,860,000 (CAD$43,500,000), in exchange for its right to receive future toll milling cash receipts from the MLJV under
the current toll milling agreement with the Cigar Lake Joint Ve nture (“CLJV”) from July 1, 2016 onwards. The upfront
payment was accounted for as deferred revenue. In Q3 2017, the Company recognized toll milling revenue of $456,000
from the draw-down of the deferred revenue.
Operating expenses
Operating expenses at DES during Q3 2017 totaled $1,803,000 and relate primarily to care and maintenance and
environmental consulting services provided to clients and includes labour, and other costs.
Operating expenses in the Can adian mining segment include depre ciation, mining and other development costs.
Operating expenses during Q3 2017 were $794,000, including $532 ,000 of depreciation from the McClean Lake mill,
associated with the processing of U3O8 for the CLJV.
Exploration and Evaluation
During 2017, the Company has remained active on its portfolio o f projects in the Athabasca Basin region in
Saskatchewan, Canada. The Company’s Athabasca land package decr eased slightly during the third quarter, from
359,313 hectares (249 claims) to 346,761 hectares (244 claims), as certain low priority claims were allowed to lapse
where no further work was warranted. Denison’s share of explora tion and evaluation expenditures was $4,348,000
during Q3 2017.
Wheeler River Project
Denison’s share of exploration costs at Wheeler River amounted to $3,064,000 during Q3 2017. Field activities during
Q3 2017 included continuation of the summer 2017 drilling progr am, which commenced in late May 2017. A total of
27,116 metres in 58 holes were completed as part of the summer 2017 drilling program through mid-October 2017.
Preliminary radiometric equival ent results for 34 holes were re ported in our press releases dated July 24, 2017 and
August 30, 2017. In early September, Denison announced a signif icant increase to the summer 2017 drilling program
with the addition of approximately 16 drill holes (6,500 metres ) (see Denison’s press release dated September 12,
2017). Once completed, the summer drilling program is expected to include a total of approximately 30,000 metres in
64 holes.
The summer 2017 program includes drilling to increase the confi dence of the resources estimated for the Gryphon
deposit, from an inferred level to an indicated level, and to potentially expand the size of the deposit’s overall resources,
ahead of an updated resource estimate scheduled following the receipt of summer assay results, and the Pre-Feasibility
Study ("PFS") scheduled for 2018.
The definition drilling within t he current inferred resource ha s continued to show good consistency with the inferred
resource block model. Furthermore, the summer program has resul ted in the successful expansion of the A, B and D
series of mineralized lenses, as well as the recognition and expansion of the new E series lenses. Most notably, the D
and E series lenses are fully outside of the current resources estimated for the Gryphon deposit.
Denison’s share of evaluation co sts at Wheeler River amounted t o $427,000 for Q3 2017, and mainly related to the
work on the pre-feasibility stud y, which included engineering d ata collection activities, including geotechnical and
hydrogeological work, engineering investigations into alternate mining methods at Phoenix, and options for shaft and
vent raise excavation at both Gryphon and Phoenix. The Company also advanced its environmental baseline programs,
and continued with the community consultation and engagement process.
Waterbury Lake
The summer 2017 drilling program at Waterbury Lake, comprising 3,722 metres in nine holes, has led to the discovery
of a new zone of high-grade basement-hosted uranium mineralization, named the “Huskie” zone. The summer program
commenced in late July 2017 and was originally designed to include six exploration drill holes over 2,650 metres. The
first drill hole of the program, WAT17-443, returned a high-grade uranium intersection in the basement rock. Following
this result, a further eight holes were completed, including th ree additional holes announced as part of an expanded
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program, on an approximate 50 x 50 metre spacing. Of the nine d rill holes completed, seven intersected significant
mineralization, including high-grade intersections in four holes.
The Huskie zone is located on an east-west geological trend, lo cated approximately 1.5 kilometres to the north of the
property’s J Zone deposit. Drill testing to date has allowed for the wide-spaced definition of a zone of entirely basement-
hosted mineralization, with geological features consistent with basement-hosted deposits in the Athabasca Basin. The
mineralized zone, which covers t he extent of the current drilli ng, occurs between 50 and 175 metres vertically below
the sub-Athabasca unconformity (265 and 390 metres vertically b elow surface) and measures approximately 100
metres along strike and up to 120 metres along dip, with individual lenses varying in interpreted true thickness between
approximately 2 and 7 metres. The zone is wide-open in all dire ctions in terms of the mineralization and associated
alteration intersected.
General and administrative expenses
Total general and administrative expenses were $1,169,000 durin g Q3 2017. These costs are mainly comprised of
head office salaries and benefits, office costs in multiple reg ions, audit and regulatory costs, legal fees, investor
relations expenses, project costs, and all other costs related to operating a public company with listings in Canada and
the United States.
Other Income and expenses
During Q3 2017, the Company recognized a loss of $556,000 in ot her expenses, mainly due to a decline in the fair
value of certain investments of $453,000 in the quarter.
LIQUIDITY AND CAPITAL RESOURCES
Cash and cash equivalents were $4,393,000 at September 30, 2017 , compared with $11,838,000 at December 31,
2016. At September 30, 2017, the Company also held investments in GICs of $32,215,000, which are categorized as
short term investments on the balance sheet. The Company holds the large majority of its cash, cash equivalents, and
GIC’s in Canadian dollars, amounting to approximately CAD$45.7 million at the end of the third quarter.
Denison also has restricted cash of $9,862,000, at the end of the third quarter, which largely relates to the terms of the
Company’s revolving term credit facility with the Bank of Nova Scotia (“BNS”) that is restricted to non-financial letters
of credit in support of reclamation obligations. The facility requires the Company maintain CAD$9,000,000 pledged
restricted cash on deposit at BNS.
OUTLOOK FOR 2017
During Q3 2017, the Company increased its 2017 outlook for mineral property exploration and evaluation expenses by
$1,300,000, primarily because of the expansion of the Wheeler R iver and Waterbury Lake summer exploration
programs, partly offset by a def erral of the Hook-Carter summer drilling program into 2018. Also during Q3 2017,
planned spending on development and operations for the year dec reased by $460,000, primarily due to lower than
expected spending on the surface access bore hole resource extr action (SABRE) project at McClean Lake, and
expected services fees from UPC for 2017 have been increased by $180,000.
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
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QUALIFIED PERSON, ASSAY PROCEDURES AND FURTHER DETAILS
The disclosure of scientific or technical information regarding Denison’s properties in this press release and the MD&A was prepared
by, or reviewed and approved by, Dale Verran, MSc, Pr.Sci.Nat., the Company’s Vice President, Exploration, a Qualified Person in
accordance with the requirements of NI 43-101.
Grade results reported herein as “eU3O8” refer to radiometric equivalent U3O8 derived from a calibrated total gamma down-hole probe.
Radiometric equivalent U 3O8 results are preliminary in nature and all mineralized interval s have been sampled and submitted for
chemical U3O8 assay in accordance with Denison’s technical procedures. All Gryphon drill holes reported herein were 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. For further details regarding the description of the data verification, assay procedures and the quality assurance program and
quality control measures applied by Denison, please see Denison ’s Annual Information Form dated March 23, 2017 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.
Further details regarding the Gryphon deposit and the current m ineral resource estimates are provided in the NI 43-101 Technic al
Report for the 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 available on Denison's website and
under its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml.
Cautionary Statement Regarding Forward-Looking Statements
Certain information contained in this press release constitutes “forward-looking information", within the meaning of the Unite d States
Private Securities Litigation Reform Act of 1995 and similar Ca nadian legislation concerning t he business, operations and fina ncial
performance and condition of Denison.
Generally, these forward-looking statements can be identified b y the use of forward-looking terminology such as "plans", "expe cts",
"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", "b e achieved"
or “has the potential to”. In particular, this press release contains forward-looking information pertaining to the following: the likelihood
of completing and benefits to be derived from corporate transactions; use of proceeds from financing activities; expectations regarding
further studies on material properties, including the PFS; expe ctations regarding the toll milling of Cigar Lake ores; expecta tions
regarding revenues and expenditure from operations at DES; expectations regarding Denison’s ownership interests and continuity of
agreements with its partners; expectations regarding the provis ion of management services to UPC; capital expenditure programs ,
estimated exploration and devel opment expenditures and reclamat ion costs and Denison's share of same; and exploration,
development and expansion plans and objectives and statements r egarding anticipated budgets. Statements relating to "mineral
reserves" or "mineral resources" are deemed to be forward-looki ng information, as they involve the implied assessment, based o n
certain estimates and assumptions that the mineral reserves and mineral resources described can be profitably produced in the future.
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 activ ity,
performance or achievements of Denison to be materially differe nt from those expressed or implied by forward-looking statement s.
Denison believes that the expectations reflected in this forwar d-looking information are reasonable but no assurance can be gi ven
that these expectations will prove to be accurate and may diffe r materially from those anticipated in this forward looking inf ormation.
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 23, 2017 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 press release is expressly qualified by this cautionary statement. Any forw ard-
looking information and the assu mptions made with respect there to speaks only as of the date of this press release. Denison d oes
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 Denison's 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. “Inferr ed mineral resources” have a g reat amount of uncertainty as to their existence, and as to the ir
economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgrad ed 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 in vestors are also cautioned not to assume that all or any part
of an inferred mineral resource exists, or is economically or legally mineable.