Denison Mines (TSX:DML,NYSEMKT:DNN) announced its third quarter financial and operational results, including results for the nine months ended September 30.

Denison Mines (TSX:DML,NYSEMKT:DNN) announced its third quarter financial and operational results, including results for the nine months ended September 30.
Highlights, as quoted in the press release:

  • Gryphon Deposit adds 43 Million Pounds of Uranium Resource at the Wheeler River Property: The Company completed an initial mineral resource estimate for the basement hosted Gryphon uranium deposit, which is located three kilometres to the northwest of the high-grade Phoenix deposit.
    The Gryphon deposit is estimated to contain an inferred mineral resource of 43.0 million U3O8 at an average grade of 2.3% U3O8. When combined with the high-grade Phoenix deposit, Wheeler River now contains an indicated resource of 70.2 million pounds U3O8 at a grade of 19.1% U3O8 and inferred resources totaling 44.1 million pounds U3O8 at a combined grade of 2.4%. The significant increase to the mineral resource estimate at Denison’s 60% owned Wheeler River property establishes the project as one of the largest and highest grade undeveloped uranium projects in the Athabasca Basin region.
  • Appointment of Lukas Lundin as the Company’s Executive Chairman: Throughout his career, Mr. Lundin has been responsible for various resource discoveries, including the multi-million ounce Veladero gold deposit. Mr. Lundin has also led numerous companies through very profitable business acquisitions and mergers, including the sale of Red Back Mining Inc. Mr. Lundin currently sits on the Board of a number of publicly traded companies and has served as a director of Denison since 1997.
  • Continued Exploration Success at the Wheeler River Property: The summer drilling program was completed with a total of 24,468 metres of drilling in 34 drill holes. The best result was drill hole WR-604, which intersected 6.3% U3O8 over 5.5 metres (779.0 to 784.5 metres), followed by 11.6% U3O8 over 1.0 metres (790.0 to 791.0 metres), extending the Gryphon Zone of mineralization approximately 50 metres in the down-dip direction.
    Twenty additional drill holes were completed in the general K North area surrounding the Gryphon Zone, to evaluate a variety of targets and identify additional mineralization. The best result from these targets was in drill hole WR-612, located 200 metres south of the unconformity mineralization identified on the WR-595/597 section during the winter 2015 exploration program. WR-612 intersected 2.4% U3O8 over 2.5 metres, approximately 25 metres below the unconformity.
  • Other pipeline exploration properties provide exciting Summer 2015 Drilling results: Promising results were achieved at some of Denison’s pipeline properties, including at Denison’s 58.94% owned Murphy Lake project, where the first drill hole of the summer 2015 program intersected a new zone of uranium mineralization. Drill hole MP-15-03 returned 0.25% U3O8 over 6.0 metres (270.0 to 276.0 metres) at the unconformity.
  • Positive Cash flow from toll milling on track to exceed initial 2015 guidance: The McClean Lake mill, in which Denison holds a 22.5% interest, packaged approximately 6.7 million pounds U3O8 in the first nine months of 2015 for the Cigar Lake Joint Venture (“CLJV”), generating toll milling revenues for Denison of $1.9 million. If production continues at current rates, the McClean Lake mill could produce more than 10 million packaged pounds of U3O8 by the end of this year (previously targeted at six to eight million packaged pounds). The Company’s share of toll milling revenues for the year is now expected to be approximately $2.5 million.
  • Update on sale of Mongolian interests: During the second quarter, Denison entered into a share purchase agreement with Uranium Industry a.s. (“UI”), of the Czech Republic, which provided that UI would acquire all of Denison’s interest in uranium projects and operations located in Mongolia in exchange for cash consideration of $20 million, payable upon the achievement of specified milestones and subject to various conditions on closing (the “Mongolian Transaction”). The sale did not close as expected by September 8, 2015, as certain conditions were not satisfied. Denison remains the owner of its Mongolian interests and continues to pursue the closing of a transaction to sell its Mongolian interests to UI.
  • Denison and Fission Uranium Corp. (“Fission”) terminate arrangement agreement: On July 27, 2015, Denison entered into an agreement to combine its business with Fission by way of a court approved plan of arrangement (the “Arrangement”). Denison’s shareholders strongly supported the Arrangement. Although a majority of the Fission shareholders approved the Arrangement by the proxy voting deadline, the required two-thirds approval was not obtained. As a result, on October 13, 2015, the Arrangement was terminated.

Click here to read the full Denison Mines (TSX:DML,NYSEMKT:DNN) press release.



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