Denison Mines Corp. · TSX:DML
Denison Mines — TD Securities Mining Conference 2015
28 slides from Denison Mines's conference presentation, Jan 28, 2015
Slide 1: Denison Mines Corp. Investor Update
Denison Mines Corp. p Investor Update TD Securities Mining Conference January 28, 2015
Slide 2: Cautionary Statements
Cautionary Statements This presentation includes forward-looking information or forward-looking statements under Canadian and U.S. securities laws that involve risks,, uncertainties and other factors that could cause actual results to differ materially y from those expressed p or implied by such for
Slide 3: Denison's Strategic Strengths
Denison’s Strategic Strengths • Strong exploration portfolio in the Eastern portion of the Athabasca Basin – near existing mining and milling infrastructure • Exploration and development team led by Athabasca Basin veterans • 22.5% strategic stake in McClean Lake uranium mill provides toll milling r
Slide 4: Athabasca Basin Portfolio
oenison DA A MINES Athabasca Basin Portfolio @™ 100% Denison HH Cameco operated JV © Strateco operated JVs C3 Highest priority projects McArthur River Mann Lakegp Lynx Wheeler River Moon np Bachman Lake Kay x. Waterbury [4 Denison operated JVs Lake G Areva operated JVs Johnston Lake S Uranium Mine A
Slide 5: Athabasca Basin Portfolio: Wheeler River Project
Athabasca Basin Portfolio Wheeler River Project • Denison D i 60% • Cameco 30% • JCU 10% • Denison is the operator 5
Slide 6: Wheeler River – 2014 Successes
Wheeler River – 2014 Successes Phoenix Deposit • High-grade expansion and updated 43-101 Phoenix Resource Gryphon Discovery • Discovery hole WR-556 during Q1’2014 intersected 15.3 % U3O8 over 4.0 metres • Focus of Summer 2014 program • 3km NW of Phoenix Deposit 6
Slide 7: Phoenix Uranium Deposit, Wheeler River Property
oewson'DAA DENISON MINES CORP. PHOENIX A URANIUM DEPOSIT WHEELER RIVER PROPERTY < WR-539 + Only the highest grade 13.1 2%U,0,/5.0m intersections are shown where drill holes have more than one mineralized interval. * See news WR-545 WR-541 release for multiple intervals. 0, 0, + Intersections from 20
Slide 8: Phoenix High Grade Extensions
Phoenix High Grade Extensions • Single large high- grade core • Successfully expanded with 2014 drilling 8
Slide 9: Athabasca Basin Deposits
Athabasca Basin Deposits Contained M lbs U3O8 McArthur River Cigar Lake Triple R Shea Creek Gryphon? M&I Millenium Phoenix Inf Roughrider Midwest PHOENIX RESOURCE ESTIMATE* Eagle Point Million Lbs. Horseshoe/Raven McClean Tonnes Grade U3O8 Horseshoe Category (100% Basis) (% U3O8) (100% Basis) Tamara
Slide 10: Athabasca Basin Deposits
Athabasca Basin Deposits Grade % U3O8 h Phoenix Cigar Lake McArthur River Roughrider Midwest Millennium Tamarack Dawn Lake Triple R McClean J Zone Shea Creek Midwest A West Bear Eagle Point Horseshoe/Raven 0 2 4 6 8 10 12 14 16 18 20 % AllUdata 3Ofrom 8 Public Sources. All Resource Categories have b
Slide 11: Wheeler River – Gryphon Discovery
Wheeler River – Gryphon Discovery Exciting Discovery • Multiple stacked lenses • Northeast plunge • Basement hosted 11
Slide 12: Wheeler River – Gryphon Discovery
Wheeler River – Gryphon Discovery Exciting Potential • Several high grade intersections • Currently measures 350m x 60m with ith variable ariable thickness • Open both up and down plunge 12
Slide 13: Wheeler River – Gryphon Discovery
Wheeler River – Gryphon Discovery Semi-massive foliation-controlled Intermittent pitchblende-hematite pitchblende and hematite Pseudo-breccia replacement (“worm-rock”) bands 13
Slide 14: Wheeler River – Gryphon Discovery
Wheeler River – Gryphon Discovery Drill Hole From (m) To (m) Interval (m) %U3O8 GT (%m) WR‐556 697.5 671.5 4.0 15.3 61.2 WR‐560 759.0 763.5 4.5 21.2 95.4 WR‐564 739.0 758.0 19.0 1.2 23.4 WR‐569A 680.0 683.5 3.5 13.2 46.1 WR‐569A 702.5 711.5 9.0 4.9 44.3 WR‐574 WR 574 696 5 696.5 698 5 698.5 20 2.0 1
Slide 15: Wheeler River – Gryphon Discovery
Wheeler River – Gryphon Discovery Drill Hole From (m) To (m) Interval (m) %U3O8 GT (%m) WR‐556 697.5 671.5 4.0 15.3 61.2 WR‐560 759.0 How763.5 big is it?4.5 21.2 95.4 WR‐564 739.0 758.0 19.0 1.2 23.4 How big could WR‐569A 680.0 it683.5 be? 3.5 13.2 46.1 WR‐569A 702.5 711.5 9.0 4.9 44.3 WR‐574 WR 574
Slide 16: Wheeler River – 2015 Targets
Wheeler River – 2015 Targets K North Phoenix North Phoenix Focus: Gryphon Zone & K North • Together with other target areas: • Drilling: 62 drill holes, 37,000 metres • Geophysics: 126 kilometres Q Central • Budget: Cdn $10M (Cdn $6M Denison share) K South O-Zone O Zone DC-Resistivity 16
Slide 17: 2015 Plan
2015 Plan: • Approx. Approx 71 71,000 000 m in drilling • Focus on high priority properties 1. Wheeler River (60%) – 37,000 m 2 Mann Lake (30%) – 8,000 2. 8 000 m 3. Waterbury (60%) – 3,350 m 4. Crawford Lake (100%) – 4,600 m 5. Moore Lake (100%) – 4,000 m 6 Wolly (22.5%) 6. (22 5%) – 4,000 4 000 m
Slide 18: McClean Lake Mill
McCLEAN LAKE MILL (Saskatchewan) • Denison owns 22.5% 22 5% • AREVA 70%, OURD 7.5% Mill Expansion Continues • 13M lbs to 24M lbs per year • Fully funded by Cigar Lake • Completion expected 2015 18
Slide 19: Toll Milling of Cigar Lake Ore
Toll Milling of Cigar Lake Ore Cash flow from toll milling begins! • Cigar Lake ore processing began in September 2014 • First packaged drums produced in October 2014 • ~ 26,000 lbs U3O8 produced from Denison’s share of McClean material used to commission the mill 19
Slide 20: Rising Cash Flow from Toll Milling
Rising Cash Flow from Toll Milling 20 $9.0 $) Milling Revvenue (M $ 18 $8.0 uction (M llbs U3O8) 16 $7.0 14 $6 0 $6.0 12 $5.0 10 2015 Plan: $4.0 Denison Toll M 8 CLJV Produ • 6 to 8 million lbs U3O8 $3.0 6 • Denison’s share of toll 4 $2.0 milling revenue ~$2.5M 2 $1.0 0 $‐ 2014 2015 2016 2017 2018 2
Slide 21: Africa: Diversified Portfolio
Africa: Diversified Portfolio 2014 Update: • Interests reorganized g in preparation for spin-out or disposal transaction • Waiting for market conditions Mutanga 2015 Program: • Focused on maintaining claims in good standing • $2.3M budget: additional target generation at Mutanga & Falea 21
Slide 22: African Resources
African Resources Tonnes U3O8 Lbs U3O8 Project Category (000’s) (%) (000’s) Mutanga* Measured & Indicated 10,280 0.03 7,809 Inferred 65,270 0.03 41,400 Falea** Measured & Indicated 15,670 0.09 29,581 Inferred 15,350 0.05 15,688 Total Measured & Indicated 25,950 0.06 37,390 Inferred 80,620 0.03 57,08
Slide 23: Mutanga/Falea Comparison
Mutanga/Falea Comparison Mutanga Falea Exploration Potential Resources (M ( lbs. lb U3O8) * Infrastructure + ‐ Political Risk + ‐ Metallurgy + ‐ Value per Tonne** US$23.00 US$85.00 Mining Open pit U/G * Falea also includes copper and silver ** Based on spot metal prices on Jan. 15, 2015 23
Slide 24: Mongolia: Gurvan Saihan JV
Mongolia: Gurvan Saihan JV • Resources (on a 100% basis) • Indicated - 19.8 million lbs. (12.3 million tonnes @ 00.07% 07% U3O8) • Inferred - 5.8 million lbs. (5.5 million tonnes @ 0.05% U3O8 ) • 2015 – focus continues on restructuring and d strategic t t i alternatives lt ti 24
Slide 25: 2015 Budget Summary
2015 Budget Summary 2015 Consolidated Cash Flow by Segment (USD, Millions) $4.0 2.6 $2.0 $0.0 $ ‐0.6 ‐0.7 ‐0.5 ‐$2.0 ‐2.3 ‐2.6 ‐$4.0 ‐$6 0 ‐$6.0 • ~ US$31.0 US$31 0 M iin cash h & equivalents i l t ‐$8.0 at the end of Q3’2014 ‐$10.0 • Fully funded after closing Cdn$15.0M ‐$12.0 $12 0 FTS offering g
Slide 26: The Denison Advantage
The Denison Advantage • Canadian focused with key assets in the Eastern Athabasca Basin – 60% interest in high-grade high grade Phoenix deposit on Wheeler River property – Active portfolio of exploration properties with potential for future discoveries – 22.5% strategic interest in high-grade McClea
Slide 27: Corporate Information
Corporate Information Market Summary Management & Directors ((Dec. 31,, 2014)) Exchanges TSX, NYSE - MKT Ron Hochstein (CEO, Director) Shares Outstanding 505.9 M David Cates (President & CFO) Warrants 11M 1.1 Steve Blower (V (V.P. P Exploration) Options 6.2 M Peter Longo (V.P. Project Development) F
Slide 28: Further Information
Denison Mines Corp. p Investor Update Further Information TSX: DML NYSE MKT:DNN Phone: 416.979.1991 ext 366 Toll Free: 1.888.689.7842 Email: [email protected] Web: www.denisonmines.com