Denison Announces Results from Midwest ISR Preliminary Economic Assessment, Including After-Tax NPV of $965 Million
Denison Mines (NYSE:DNN) has announced positive results from a Preliminary Economic Assessment (PEA) for In-Situ Recovery (ISR) mining at its 25.17%-owned Midwest Main uranium deposit. The PEA outlines total production of 37.4 million pounds U3O8 over a 6-year mine life, with annual average production of 6.1 million pounds.
The project demonstrates robust economics with a post-tax NPV of $965 million (100% basis) and an IRR of 82.7%. Initial capital costs are estimated at $254 million, with Denison's share being approximately $64 million. The project features low production costs of USD$11.69 per pound and a quick payback period of 9 months.
The updated mineral resource estimate shows 38.7 million pounds U3O8 in Indicated resources (510,000 tonnes @ 3.5% U3O8) and 12.6 million pounds U3O8 in Inferred resources. Processing will occur at the McClean Lake mill, which Denison partly owns (22.5%).
Denison Mines (NYSE:DNN) ha annunciato risultati positivi da una Valutazione Economica Preliminare (PEA) per l'estrazione tramite Recupero In-Situ (ISR) nel deposito di uranio Midwest Main, di cui detiene il 25,17%. La PEA prevede una produzione totale di 37,4 milioni di libbre di U3O8 in un ciclo di vita della miniera di 6 anni, con una produzione media annua di 6,1 milioni di libbre.
Il progetto mostra solide prospettive economiche con un VAN post-tasse di 965 milioni di dollari (base 100%) e un tasso interno di rendimento (IRR) dell'82,7%. I costi iniziali di capitale sono stimati in 254 milioni di dollari, con la quota di Denison intorno ai 64 milioni. Il progetto si caratterizza per bassi costi di produzione di 11,69 USD per libbra e un rapido periodo di recupero di 9 mesi.
La stima aggiornata delle risorse minerarie indica 38,7 milioni di libbre di U3O8 in risorse Indicate (510.000 tonnellate al 3,5% di U3O8) e 12,6 milioni di libbre di U3O8 in risorse Inferred. Il processo di lavorazione avverrà presso l'impianto McClean Lake, di cui Denison possiede una quota del 22,5%.
Denison Mines (NYSE:DNN) ha anunciado resultados positivos de una Evaluación Económica Preliminar (PEA) para la minería por Recuperación In-Situ (ISR) en su depósito de uranio Midwest Main, del cual posee el 25,17%. La PEA detalla una producción total de 37.4 millones de libras de U3O8 durante una vida útil de la mina de 6 años, con una producción anual promedio de 6.1 millones de libras.
El proyecto muestra una economía sólida con un VAN post-impuestos de 965 millones de dólares (base 100%) y una TIR del 82.7%. Los costos de capital iniciales se estiman en 254 millones de dólares, con la participación de Denison alrededor de 64 millones. El proyecto presenta bajos costos de producción de 11.69 USD por libra y un rápido período de recuperación de 9 meses.
La estimación actualizada de recursos minerales muestra 38.7 millones de libras de U3O8 en recursos Indicados (510,000 toneladas al 3.5% de U3O8) y 12.6 millones de libras de U3O8 en recursos Inferidos. El procesamiento se realizará en la planta McClean Lake, en la que Denison posee una participación del 22.5%.
Denison Mines (NYSE:DNN)는 자사가 25.17% 지분을 보유한 Midwest Main 우라늄 광산에서 현장 회수법(In-Situ Recovery, ISR) 광산 개발에 대한 예비 경제성 평가(PEA)에서 긍정적인 결과를 발표했습니다. PEA는 6년 광산 수명 동안 총 3,740만 파운드의 U3O8 생산과 연평균 610만 파운드 생산을 제시합니다.
이 프로젝트는 세후 순현재가치(NPV) 9억 6,500만 달러(100% 기준)와 내부수익률(IRR) 82.7%로 견고한 경제성을 보여줍니다. 초기 자본 비용은 2억 5,400만 달러로 추산되며, Denison의 지분은 약 6,400만 달러입니다. 프로젝트는
업데이트된 광물 자원 추정치는 38.7백만 파운드의 U3O8 지정 자원(510,000톤, U3O8 3.5%)과 12.6백만 파운드의 추정 자원을 나타냅니다. 가공은 Denison이 22.5% 지분을 가진 McClean Lake 제련소에서 이루어질 예정입니다.
Denison Mines (NYSE:DNN) a annoncé des résultats positifs d’une étude économique préliminaire (PEA) pour l’extraction par récupération in-situ (ISR) sur son gisement d’uranium Midwest Main, dont elle détient 25,17 %. La PEA prévoit une production totale de 37,4 millions de livres d’U3O8 sur une durée d’exploitation de 6 ans, avec une production annuelle moyenne de 6,1 millions de livres.
Le projet présente une économie solide avec une valeur actuelle nette après impôts (VAN) de 965 millions de dollars (sur une base de 100 %) et un taux de rentabilité interne (TRI) de 82,7 %. Les coûts initiaux en capital sont estimés à 254 millions de dollars, dont la part de Denison s’élève à environ 64 millions. Le projet bénéficie de coûts de production faibles de 11,69 USD par livre et d’une période de récupération rapide de 9 mois.
La mise à jour de l’estimation des ressources minérales indique 38,7 millions de livres d’U3O8 en ressources indiquées (510 000 tonnes à 3,5 % d’U3O8) et 12,6 millions de livres d’U3O8 en ressources présumées. Le traitement sera réalisé à l’usine de McClean Lake, dont Denison détient 22,5 %.
Denison Mines (NYSE:DNN) hat positive Ergebnisse einer vorläufigen Wirtschaftlichkeitsstudie (PEA) für In-Situ Recovery (ISR) Bergbau an der zu 25,17% gehaltenen Midwest Main Uranlagerstätte bekannt gegeben. Die PEA sieht eine Gesamtproduktion von 37,4 Millionen Pfund U3O8 über eine Bergbauzeit von 6 Jahren vor, mit einer durchschnittlichen Jahresproduktion von 6,1 Millionen Pfund.
Das Projekt weist eine robuste Wirtschaftlichkeit mit einem Nachsteuer-NPV von 965 Millionen USD (100%-Basis) und einem IRR von 82,7% auf. Die anfänglichen Investitionskosten werden auf 254 Millionen USD geschätzt, wovon Denisons Anteil etwa 64 Millionen beträgt. Das Projekt zeichnet sich durch niedrige Produktionskosten von 11,69 USD pro Pfund und eine schnelle Amortisationszeit von 9 Monaten aus.
Die aktualisierte Mineralressourcenschätzung zeigt 38,7 Millionen Pfund U3O8 in angezeigten Ressourcen (510.000 Tonnen mit 3,5% U3O8) und 12,6 Millionen Pfund U3O8 in abgeleiteten Ressourcen. Die Verarbeitung erfolgt in der McClean Lake-Aufbereitungsanlage, an der Denison mit 22,5% beteiligt ist.
- Strong post-tax NPV of $965 million with high IRR of 82.7%
- Low initial capital costs of $254 million with impressive NPV to capital cost ratio of 3.8x
- Rapid payback period of only 9 months post-tax
- Low cash operating costs of USD$11.69 per pound U3O8
- Significant resource base of 38.7 million pounds U3O8 in Indicated category
- Existing processing capacity available at McClean Lake mill
- High annual production rate of 6.1 million pounds U3O8
- PEA is preliminary in nature with speculative geological considerations
- Project requires complex freeze wall technology for mining
- Minority ownership position (25.17%) limits Denison's economic benefit
- Relatively short mine life of approximately 6 years
Insights
Denison's Midwest PEA shows exceptional economics with $965M NPV, 83% IRR, and industry-leading low costs for uranium production.
The PEA results for Denison's Midwest Main deposit reveal remarkably robust economics that position this project as potentially one of the most profitable uranium developments globally. With an after-tax NPV of
What makes this project particularly compelling is the estimated all-in cost of
The ISR mining method is key to these economics - requiring modest initial capital of
Processing at the nearby McClean Lake mill (where Denison holds
It's important to note this remains a preliminary assessment with technical and regulatory hurdles ahead. While the PEA incorporates field test results from 2023-2024 supporting key ISR criteria, further de-risking work will be necessary before potential development decisions. The freeze wall technology proposed as a tertiary containment measure adds complexity but appears technically sound based on application at other operations.
This PEA positions the Midwest Main deposit as a potential tier-one uranium asset in the making. The projected production profile of 6.1 million pounds U3O8 annually would represent approximately
The economics stand out sharply against industry averages. Most uranium projects struggle to achieve IRRs above
The projected
The Midwest project benefits from several strategic advantages: leveraging existing licensed processing capacity at McClean Lake mill (avoiding permitting new processing facilities), proximity to established infrastructure, and relatively modest initial capital requirements. The PEA's approach of phased mining allows optimization of resources while maintaining steady production.
From a resource perspective, the indicated resource of 38.7 million pounds at
The ISR mining approach, while technically complex in the Athabasca Basin context, offers significant environmental advantages including reduced surface disturbance, no conventional tailings production, and potentially simplified closure requirements compared to open-pit or underground mining alternatives.
Midwest is a joint venture ("MWJV") owned by Denison (
David Cates, Denison's President & CEO commented, "The Midwest PEA illustrates tremendous technical and economic potential for ISR mining at Midwest Main. While preliminary in nature, the study incorporates the findings of our 2023 and 2024 field test programs, which provided support for key ISR criteria necessary for the application of the mining method and demonstrates the potential for robust economics. The project is estimated to have an all-in cost of production amongst the lowest cost uranium mines in the world, benefitting from a powerful combination of low initial capital costs and low cash operating costs.
Denison has established itself as the industry leader in advancing the deployment of the ISR mining method to high-grade uranium deposits in the
Midwest PEA Highlights:
- Base case post-tax Net Present Value ("NPV")(
8% ) of$965 million 100% basis) – with Denison's25.17% interest in the project equating to a base-case after-tax NPV8% of$243 million - Base case pre-tax NPV
8% of$1.62 billion 100% basis). - Robust base-case Internal Rate of Return ("IRR") of
83% (post-tax) and111% (pre-tax). - Base-case indicative after-tax payback period of 9 months.
- Estimated annual mine production of 6.1 million pounds U3O8 for total life of mine production of 37.4 million pounds U3O8 over an approximately 6-year mine life.
- Processing assumed to occur at the Orano-Denison owned McClean Lake mill, supporting modest estimated initial capital costs of
$254 million 100% basis) and yielding an impressive after-tax NPV8% to initial capital cost ratio of 3.8 times. - Denison's share of estimated initial capital costs is approximately
$64 million - Updated Midwest Main mineral resource estimate of 38.7 million pounds U3O8 in Indicated mineral resources (510,000 tonnes @
3.5% U3O8), plus 12.6 million pounds U3O8 in Inferred mineral resources (905,000 tonnes @0.64% U3O8).
The PEA is preliminary in nature, includes mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would allow them to be categorized as mineral reserves, mineral resources that are not mineral reserves do not have demonstrated economic viability, and there is no certainty that the PEA will be realized.
Midwest Main ISR Preliminary Economic Assessment
The PEA highlights that the ISR mining method has the potential to be a technically sound and economically robust means to extract significant uranium production from the high-grade Midwest Main deposit with low initial capital costs, a high rate of return, and rapid payback.
The assessment incorporates the results of the 2023 and 2024 ISR field de-risking programs completed by Denison on behalf of the MWJV following the completion of an internal Conceptual Mining Study in early 2023, which considered the potential application of ISR mining to Midwest Main.
Engcomp Engineering & Computing Professionals ("Engcomp"), an independent engineering firm based in
Key operating parameters and economic results from the PEA are presented in the tables below.
Table 1 – Summary of Key Midwest Main Operation Parameters ( | |
Mine Life | 6.14 years |
Potentially Mineable Resources(1) | 37.4 million lbs U3O8 (650,000 tonnes at |
Annual Production (Average)(2) | 6.1 million lbs U3O8 |
Initial Capital Costs | |
Average Cash Operating Cost | |
All-in Cost(3) | |
(1) | See Table 3 below for additional information regarding estimated mineral resource. See Table 4 below for additional information regarding initial capital costs. |
(2) | Based on the estimated number of pounds U3O8 to be produced over the life of the project divided by mine life. |
(3) | All-in cost is estimated on a pre-tax basis and includes all project operating costs, capital costs post-FID, and decommissioning costs divided by the estimated number of pounds U3O8 to be produced. |
Table 2 – Summary of Midwest Economic Analysis ( | |
Uranium Selling Price | USD$80/lb U3O8 (1) |
Exchange Rate (CAD$:USD$) | 1.35 |
Discount Rate | 8 % |
Operating profit margin(2) | 85.4 % |
Pre-tax NPV | |
Pre-tax IRR(3) | 111.1 % |
Pre-tax payback period(4) | ~6 months |
Post-tax NPV | |
Post-tax IRR(3) | 82.7 % |
Post-tax payback period(4) | ~9 months |
(1) | Price forecast is stated in constant (not-inflated) dollars. |
(2) | Operating profit margin is calculated as aggregate uranium revenue less aggregate operating costs, divided by aggregate uranium revenue. Operating costs exclude all royalties, surcharges and income taxes. |
(3) | NPV and IRR are calculated to the start of construction activities for the Midwest project and excludes |
(4) | Payback period is stated as number of months to payback from the start of uranium production. |
Mineral Resource Estimate
The Midwest uranium project is comprised of two primary deposits: Midwest Main and Midwest A. The Midwest Main mineral resource estimate has been updated to reflect additional drill holes completed since the previous mineral resource estimate from 2018. The additional drilling consisted primarily of test well installations for ISR de-risking activities and certain targeted resource definition drill holes.
As a result of the additional drilling, the updated estimate of mineral resources consists of 38.7 million pounds U3O8 in Indicated mineral resources (510,000 tonnes @
The updated mineral resources estimated for Midwest, including the Midwest Main and Midwest A deposits, are summarized below.
Table 3 – Estimated Midwest Mineral Resources ( | |||||||
Deposit | Category | Zone6 | Tonnage | Grade7,8 | Metal (tonnes U) | Metal (Mlbs U3O8) | Denison's Share |
Midwest Main | Indicated | UC | 510 | 2.92 | 14,900 | 38.7 | 9.7 |
Inferred | UC | 389 | 0.80 | 3,100 | 8.1 | 2.0 | |
PER | 449 | 0.36 | 1,600 | 4.1 | 1.0 | ||
BSMT | 67 | 0.30 | 200 | 0.4 | 0.1 | ||
Midwest A | Indicated | LG | 566 | 0.74 | 4,200 | 10.8 | 2.7 |
Inferred | LG | 43 | 0.23 | 100 | 0.4 | 0.1 | |
HG | 10 | 24.00 | 2,400 | 6.4 | 1.6 | ||
Total Indicated | 1,076 | 1.78 | 19,100 | 49.5 | 12.5 | ||
Total Inferred | 958 | 0.77 | 7,400 | 19.4 | 4.9 | ||
(1) | The effective date of the mineral resource estimate is December 2, 2024. The Qualified Person (QP) for the estimate is Mr. Matt Batty, P.Eng., of Understood Mineral Resources. |
(2) | Mineral resource estimates are prepared in accordance with CIM Definition Standards (CIM, 2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (CIM, 2019). Mineral resources that are not mineral reserves do not have demonstrated economic viability. |
(3) | Mineral resources are reported at a cut-off grade of |
(4) | Mineral resources are reported using a uranium price of |
(5) | All figures have been rounded to reflect the relative accuracy of the estimate. Figures may not add due to rounding. |
(6) | The Midwest Main and Midwest A deposits consist of various geological zones including the unconformity zone "UC", perched zone "PER", basement zone "BSMT", low-grade "LG", and high-grade zone "HG". |
(7) | Total Indicated and Total Inferred grades indicate average grades. |
(8) | % U3O8 equal to % U X 1.18. |
Mining Overview & Potentially Mineable Resources
The PEA is based on utilization of the ISR method for mining the unconformity-hosted portions of the Midwest Main deposit. A three-phase development sequence is planned to exploit the orebody over an approximately 6-year mine life in a manner that is projected to optimize NPV, IRR, and capital efficiency, while maintaining a steady rate of production throughout the projected mine life.
Key features of the application of ISR at the Midwest Main deposit include:
- Utilization of a low pH mining solution.
- Injection and extraction wells on a 10-metre spacing in a 5-spot pattern with extraction/recovery wells placed in the centre of a ring of injection wells.
- A total of 676 ISR wells are required for complete coverage of the deposit.
- Utilization of commercial permeability enhancement techniques to increase hydraulic conductivity of the near well environment within the deposit, where necessary.
- Use of a freeze wall (curtain) as a tertiary measure to isolate the mining area from the regional groundwater, requiring the installation of 341 freeze holes.
- A total of 50 monitoring wells are projected to be required around the perimeter of the mineralized zone and within the overlying and underlying aquifers, as dictated by geologic and hydrogeologic parameters, and are spaced approximately every 125 metres.
An illustration of the planned mine is provided in Figure 2, which depicts the location of the ISR wellfield, the three mining phases planned, and the associated surface infrastructure expected for the Midwest site. In general, each extraction well is surrounded by 4 or more injection wells, the type of which has been selected and/or located to optimize cost and recovery.
A unique characteristic of the planned Midwest Main ISR mine is the use of artificial ground freezing around the perimeter of the planned mining phases to create a vertical hydraulic barrier surrounding the ISR mining area. The freeze perimeter is a tertiary containment measure and is planned to consist of vertical wells constructed from surface and extending into the impermeable basement rock underlying the deposit.
Mining is planned to occur over an approximate 6-year period, with a partial year of production occurring in the final calendar year of the production plan. Production is expected to achieve nearly 6.1 million pounds U3O8 annually for total recovered uranium of 37.4 million pounds U3O8 over the life of the project, which is based on an estimated average mining recovery of
Processing Overview
Processing of uranium-bearing solution ("UBS") recovered from mine production at Midwest Main is assumed to occur at the McClean Lake mill. The mill is part of the McClean Lake Joint Venture ("MLJV"), which is owned by Orano Canada (
UBS from Midwest Main would be trucked to the McClean mill and offloaded into a storage tank providing surge capacity for both the mine and mill. From the UBS storage tank it would be pumped into the clarification circuit for fines removal prior to solvent extraction. Following clarification, the solution would be processed as per the current mill flowsheet, with final drummed "yellowcake" expected to be a blend of the Midwest Main and Cigar Lake feed streams.
Mining of the Midwest Main deposit via ISR is expected to reduce tailings deposited to the McClean Lake tailings management facility and reduce contaminant loading to the tailings circuit compared to conventional mining and milling.
Site Infrastructure
As processing is assumed to occur at the McClean Lake mill, the Midwest Main mine site is compact and has been designed to limit environmental disturbance. The natural terrain of the area is used where advantageous, further reducing the impact of the Project on the environment. As the Midwest Main deposit is situated below the South McMahon Lake, a berm is planned to be constructed to extend the western edge of the lake to provide a base for the installation of the ISR wellfield.
Based on the Midwest Main site layout (see Figure 2), the primary site facilities will consist of the ISR wellfield and berm, freeze plant, storage pads and ponds, power substation and distribution, process infrastructure, and operations facilities. The total area for these facilities is estimated to be less than one square kilometer.
Additional on-site infrastructure includes a 6.5 km gravel road from Highway 905 to the site, a high-voltage electrical power line from the existing SaskPower transmission line located alongside Highway 905, and the existing dam across the Mink Arm of South McMahon Lake. Due to the relatively short expected duration of mining activities and the mine site's proximity to existing lodging facilities, no camp or airstrip is envisioned to be required on site and existing facilities at Points North Landing, which is located approximately 3 km from the Midwest property, are expected to be utilized.
Capital Costs
Initial capital costs are expected to be incurred during an approximately 24-month construction period that will include the establishment of site infrastructure, as well as the freeze wall perimeter around the Phase 1 mining zone and initial ISR wellfield development within Phase 1. Sustaining capital costs are largely related to the continuation of wellfield development for the second and third mining phase as well as the completion of remediation and decommissioning of the mine site.
Table 4 – Midwest Capital Costs(1) ($ millions) | |||
Description | Initial | Sustaining | Total |
ISR Wellfield | 95.6 | 239.3 | 334.9 |
Milling (McClean Mill Modifications) | 2.9 | 2.9 | |
McClean Lake Mill Sustaining Capital | 37.4 | 37.4 | |
Surface Facilities | 1.6 | 1.6 | |
Utilities | 0.9 | 0.9 | |
Electrical | 11.2 | 11.2 | |
Civil & Earthworks | 46.3 | 39.7 | 86.0 |
Road Upgrades (Midwest to McClean Lake) | 1.2 | 1.2 | |
SaskPower Line to Midwest | 2.9 | 2.9 | |
Surface Mobile Equipment | 1.8 | 1.8 | |
Remediation | 86.8 | 86.8 | |
Demolition | 21.6 | 21.6 | |
Contractor Direct Field Support Costs | 12.3 | 5.4 | 17.7 |
Subtotal Direct Costs | 176.7 | 430.2 | 606.9 |
Project Indirect Costs | 18.8 | 6.7 | 25.5 |
Subtotal Direct + Indirect Costs | 195.5 | 436.9 | 632.4 |
Contingency | 58.7 | 10.1 | 68.8 |
Total Capital Cost | 254.2 | 446.9 | 701.2 |
(1) Totals may not sum precisely due to rounding |
In addition to the total capital costs identified in Table 4, further costs are expected to be incurred prior to making a final investment decision ("FID"). These costs are estimated to total
Operating Costs
Average estimated operating costs are estimated to be
Average operating costs estimated for life of mine are summarized in Table 5 below. A recovery rate of
Table 5 – Midwest Operating Cost per Pound U3O8 Produced(1) | ||
CAD$ | USD$ | |
OPEX - Mining | 2.89 | 2.14 |
OPEX - Milling, Transport, Weigh, Assay (Converter) | 12.21 | 9.04 |
OPEX - G&A Site Support | 0.11 | 0.08 |
OPEX - G&A Administration and Other | 0.57 | 0.43 |
Total Operating Costs | 15.78 | 11.69 |
(1) Totals may not sum precisely due to rounding |
Uranium Selling Price Assumptions
The Base Case uranium price of
Economic Analysis
The Midwest PEA considers pre-tax and post-tax scenarios for the project's base-case economic analysis on a
Table 6 - Midwest Economic Analysis | |||
Economic Metric |
|
| |
IRR | % | 111.1 % | 82.7 % |
Payback | Years | 0.5 | 0.7 |
NPV | CAD$ '000 | 2,412,643 | 1,451,787 |
NPV | CAD$ '000 | 1,618,411 | 964,661 |
Average U3O8 Price | USD$/lb | 80.00 | |
Average FX Rate | CAD$/US$ | 1.35 | |
Sensitivity analysis of the economic results shows that project economics remain robust even in cases where capital costs or operating costs increase by
Recommendations
Given the favourable technical and economic results from the PEA, the independent authors of the study recommend further advancement of the evaluation and de-risking of the application of the ISR mining method to the Midwest Main deposit, including the potential completion of a Pre-Feasibility Study. Additional work is recommended to focus on further classification of permeability characteristics of the ore body, a detailed review of infrastructure designs, verification of costing elements, and completion of various trade-off studies to assess opportunities for optimization identified during the PEA process.
SABRE Mining Method
In parallel to the continued evaluation of the potential use of the ISR mining method at Midwest, the MWJV is also advancing the assessment of the use of the Surface Access Borehole Resource Extraction ("SABRE") mining method for extraction of the Midwest Main deposit. SABRE is a proprietary mining method owned by the MLJV and currently being used at the McClean North deposit. While the PEA shows significant potential for the use of the ISR mining method at Midwest Main, there can be no assurance that the MWJV will ultimately advance the development of the Midwest Main deposit or that future development of the deposit will occur using the ISR mining method. The SABRE mining method has been commercially demonstrated and may also provide a viable means to extract the Midwest Main deposit.
About Denison
Denison is a uranium mining, exploration and development company with interests focused in the
Permitting efforts for the planned Phoenix ISR operation commenced in 2019 and are nearing completion with approval of the project's Environmental Assessment ("EA") received from the Province of
Denison's interests in
Additionally, through its
In 2024, Denison celebrated its 70th year in uranium mining, exploration, and development, which began in 1954 with Denison's first acquisition of mining claims in the
Qualified Persons
The disclosure of scientific or technical information contained in this release has been reviewed and approved by Mr. Chad Sorba, P.Geo., Denison's Vice President, Technical Services & Project Evaluation, who is a Qualified Person in accordance with the requirements of NI 43-101.
Technical Information
The Midwest PEA has been completed in accordance with NI 43-101, Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards, and best practices, as well as other standards such as the AACE Cost Estimation Standards. Other than the risks identified in Denison's Annual Information Form dated March 28, 2025 (the "AIF"), there are no known legal, political, environmental or other risks that could materially affect the potential development of the mineral resources.
A technical report prepared in accordance with NI 43-101, with further details of the results of the Midwest PEA, is anticipated to be completed and filed under Denison's profile on Denison's profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov, a copy of which will also be available on Denison's website.
Data verification has been undertaken by Qualified Persons to support mineral resource and mineral reserve estimation, including site visits, review of drill core, review of quality assurance program and quality control measures and data, re-sampling and sample analysis programs, and database verification. Validation checks were performed on all data. For a further description of the data verification, assay procedures and the quality assurance program and quality control measures applied by Denison, please see Denison's AIF filed under the Company's profile on SEDAR+ and EDGAR.
Non-GAAP Financial Measures
This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"). Such non-GAAP performance measures, including operating costs and sustaining costs, are included because it understands that investors use this information to determine the Company's ability to generate earnings and cash flows. The Company believes that conventional measures of performance prepared in accordance with IFRS do not fully illustrate the ability of mines to generate cash flows. Non-GAAP financial measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS.
Cautionary Statement Regarding Forward-Looking Statements
Certain information contained in this news release constitutes 'forward-looking information', within the meaning of the applicable
In particular, this news release contains forward-looking information pertaining to the following: the interpretation of the Midwest PEA and expectations with respect thereto, including estimates of mine production, NPV, capital costs, operating costs and estimated uranium revenue; expectations with respect to pre- and post-FID costs; expectations with respect to taxes and royalties; assumptions with respect to the industry and uranium prices, anticipated impacts of inflation; expectations with respect to project development and permitting, construction and operational processes; infrastructure and the availability of services to be provided by third parties; expectations with respect to project remediation and decommissioning; future development methods and plans; expectations and assumptions with respect to the SABRE mining method and its current and potential deployment by the MLJV and its partners; and joint venture ownership interests and the continuity of its agreements with its joint venture partners and third parties.
Statements relating to 'mineral reserves' or 'mineral resources' are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral reserves and mineral resources described can be profitably produced in the future. In addition, the PEA is preliminary in nature, includes mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would allow them to be categorized as mineral reserves, mineral resources that are not mineral reserves do not have demonstrated economic viability, and there is no certainty that the PEA will be realized.
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, the modelling and assumptions upon which the interpretation of results are based may not be maintained after further testing or be representative of actual conditions. In addition, while the PEA shows significant potential for the use of the ISR mining method at Midwest Main, there can be no assurance that the MWJV will ultimately advance the development of the Midwest Main deposit or that future development of the deposit will occur using the ISR mining method.
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 AIF and subsequent quarterly financial reports 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 news release may use the terms 'measured', 'indicated' and 'inferred' mineral resources.
Effective February 2019, the United States Securities and Exchange Commission ("SEC") adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the Exchange Act and as a result, the SEC now recognizes estimates of 'measured mineral resources', 'indicated mineral resources' and 'inferred mineral resources'. In addition, the SEC has amended its definitions of 'proven mineral reserves' and 'probable mineral reserves' to be 'substantially similar' to the corresponding definitions under the CIM Standards, as required under NI 43-101. However, information regarding mineral resources or mineral reserves in Denison's disclosure may not be comparable to similar information made public by
View original content to download multimedia:https://www.prnewswire.com/news-releases/denison-announces-results-from-midwest-isr-preliminary-economic-assessment-including-after-tax-npv-of-965-million-302522910.html
SOURCE Denison Mines Corp.
FAQ
What is the expected NPV and IRR for Denison's Midwest uranium project?
How much uranium will DNN's Midwest project produce annually?
What are the production costs for DNN's Midwest uranium project?
How much initial capital is required for DNN's Midwest project?
What are the current mineral resources at DNN's Midwest project?
How long will it take for DNN's Midwest project to pay back its initial investment?
