VANCOUVER, British Columbia, Nov. 01, 2018 (GLOBE NEWSWIRE) — Columbus Gold Corp. (CGT: TSX, CGTFF: OTCQX) (“Columbus”) is pleased to provide a permitting update for the Montagne d’Or gold mine project located in French Guiana, France.
In September 2018, the French National Commission of Public Debate (the “CNDP”) published a report (the “Report”) on the public hearings carried-out for the Montagne d’Or gold project, which concluded in the summer of 2018 (news release dated August 7, 2018). The hearings and the Report were successfully completed over a 5-month period as scheduled.
The Report consolidates the feedback gathered from 14 public meetings, which attracted approximately 1,500 participants, and an online platform that had 5,928 visits and generated 232 opinions, 211 questions, 184 comments, and 39 contributions.
The Report recommends that the Montagne d’Or joint venture (Columbus 44.99% and Nordgold 55.01%) consider the following in order to pursue development of the Montagne d’Or project:
Do not underestimate cultural values;
Improve transparency;
Be more precise on the definition of risk management measures;
Test wherever possible, several options on sensitive elements of the project;
Take into consideration recommendations of the French Geological and Mining Research Bureau (BRGM);
Prioritize options that minimize risks and impacts, to help ensure that Montagne d’Or will be a responsible mining operation.
Pursuant to the procedures established by the CNDP, the Montagne d’Or joint venture has until December 7, 2018 to declare in the Journal Officiel (a government publication) if it intends to proceed with permit applications to develop the Montagne d’Or gold project; taking into account the CNDP’s above recommendations, and any modifications to the development plan resulting thereunder.
In addition, in July 2018 the French government formed a committee to assess the social and economic benefits, and the impacts, of the development of the gold mining industry in French Guiana, taking into consideration in particular Montagne d’Or, the most advanced large gold project in French Guiana. The committee is a joint ministerial task-force under the direction of the French Ministers of Environment, of Economy and Finance, and of Overseas Territories. Columbus and the Montagne d’Or joint venture are working closely with this task-force, which is expected to deliver its conclusions in a report to the relevant ministers in December 2018.
ABOUT COLUMBUS GOLD
Columbus is French Guiana’s leading gold exploration and development company. Columbus holds a major interest in the world-class Montagne d’Or gold deposit. A feasibility study for Montagne d’Or was filed in May 2017, and the permitting process is currently underway. Columbus is also earning into the Maripa gold exploration project where past drilling has returned excellent near surface results, including 36 meters of 4.3 g/t gold.
ON BEHALF OF THE BOARD,
Robert F. Giustra Chairman
For more information contact:
Investor Relations (604) 634-0970 or 1-888-818-1364 info@columbusgold.com
Certain statements and information contained in this press release constitute “forward-looking statements” within the meaning of applicable U.S. securities laws and “forward-looking information” within the meaning of applicable Canadian securities laws, which are referred to collectively as “forward-looking statements”. The United States Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as “seek”, “expect”, “anticipate”, “budget”, “plan”, “estimate”, “continue”, “forecast”, “intend”, “believe”, “predict”, “potential”, “target”, “may”, “could”, “would”, “might”, “will” and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking statements in this and other press releases include but are not limited to statements and information regarding: its plans, or modifications thereunder, to develop Montagne d’Or ; the construction and development plans for the Montagne d’Or gold mine, including anticipated timing thereof; the satisfaction of additional requirements to the construction of the Montagne d’Or gold mine, including but not limited to, the submission and processing of mine permit applications; the delivery of a concluding report from the French joint ministerial task-force for Montagne d’Or; and the earning into of the Maripa gold exploration project. Such forward-looking statements are based on a number of material factors and assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance on forward-looking statements contained in this press release. Some of the known risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements are described in the sections entitled “Risk Factors” in the Annual Information Form of Columbus Gold Corp., available on SEDAR under Columbus’ profile at www.sedar.com. Actual results and future events could differ materially from those anticipated in such statements. Columbus undertakes no obligation to update or revise any forward-looking statements included in this press release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
7:30 to 7:55 am: Registration and coffee 7:55 to 8 am: Introduction by Jayant Bhandari 8 to 9 am: “South Africa: The Reality Obscuring the Ideal,” by Simon Roche 9 to 9:30 am: “Changing Culture of the Youth in the West,” by Prof. Ian Plimer 9:30 to 10 am: Coffee 10 to 10:40 am: TBA 10:40 to 11 am: “Things that Annoy a Grumpy Old Libertarian,” by Adrian Day 11 to 11:40 am: “Open Borders?,” a debate between Rakesh Wadhwa and Frank Raymond; moderated by Albert Lu 11:40 to 12:50 pm: Lunch 12:50 to 2:20 pm: “Prejudice, Discrimination, Racism and ‘the West vs. the Rest’,” a discussion between Doug Casey, Rick Rule, and Jayant Bhandari; moderated by Albert Lu 2:20 to 2:50 pm: Coffee 2:50 to 3:30 pm: “Kidnapping the Goddess of Eris,” by Rick Rule 3:30 to 4 pm: “The Virtue of Selfishness,” by Mary Lou Gutscher 4 to 4:20 pm: “Are You a Libertarian?” by Rajni Bala 4:20 to 4:40 pm: “The Effect of Mexican Immigration into the US,” by Jorge Ramiro Monroy 4:40 to 4:50 pm: Break 4:50 to 5:20 pm: “The World without the USA,” by Jayant Bhandari 5:20 to 6:00 pm: “The Characters of My Novels, and the Archetypes They Represent,” by Doug Casey Venue: Event Rooms 1300-1500 Segal Graduate School of Business 500 Granville Street Vancouver, BC, Canada V6C 1W6 (This is an independent event, not affiliated with the School) Host: Jayant Bhandari Price (until 15th November 2018): C$117 for individuals; C$80 for those from the media; C$80 for those under 25 year old.
(For discounted price, please contact us for a link to register) Other Events: There will be organized dinners on 2nd & 3rd August 2019. Also, there will be a picnic in the morning of 4th August 2019. These events will be charged separately. Refund Policy: You can ask for a full refund (minus any transaction fee) until 1st July 2019. Thereafter a 25% deduction applies. No refund will be made for cancellation after 15th July. We are happy to change the name of the participant if you want someone else to take your place. Price of the ticket increases significantly as we get closer to the date of the event. Linked here are video recordings of earlier year seminars.
Micro-cap oil explorer/producer Jericho Oil (TSX-V:JCO, OTC: JROOF) has spent the last three years assembling an impressive package of oil producing assets in Oklahoma. Jericho boasts a portfolio consisting of ~55,000 net acres in one of the hottest basins in the United States, including an interest in ~16,000 net acres in the STACK Play, one of the world’s top resource plays for horizontal development. While Jericho’s portfolio churns out nearly 1,000 barrels/day of oil production it’s the potential for growth through exploration where the real upside for Jericho shareholders exists.
In 2018 Jericho has been exploring more aggressively on its properties including drilling 3 STACK wells. Recently Jericho has begun talking about what it calls its “hidden gem”; Jericho’s “Osage Extension” play in northeast Oklahoma has company management very excited about the next few months. The Osage Extension is listed 3rd in Jericho’s “playbook” (its list of assets), however, this hidden gem could deliver substantial upside. Jericho has been studying the Osage Extension from a geological standpoint for many months and they are finally ready to drill it. Because the holes in the Osage Extension are shallower it will be cheaper to drill (sub-$3 million) than the STACK wells that Jericho has already completed this year.
Jericho feels that there is at least as much upside on its Osage Extension play and they will be tapping into this upside for roughly ½ the drilling cost of the STACK. The market has been focusing on Jericho’s STACK property package for much of 2018 and I believe most investors have forgotten about this hidden gem in the Osage Extension – it’s not something that Jericho has talked about a lot (because they were working to get a better understanding of it) and it’s not something which Jericho gives itself much reserve value for. That could change drastically over the next several months after Jericho begins drilling its hidden gem by the end of November.
The way to build a big oil company is through drilling and production growth. After spending 2 ½ years building a valuable portfolio of oil assets in Oklahoma (when oil prices were much lower than today’s US$67/barrel), Jericho is committed to unleashing the potential that these assets hold. JCO has begun to tap into this potential with its STACK wells and now the Osage Extension is next.
Jericho shares have strong support in the C$.50-$.55 area which roughly correlates to a US$50 million market cap (JCO has 128.6 million shares outstanding [~46% held by insiders]):
JCO.V (Daily)
As Jericho progresses with its growth plans I expect to see a move back up to the next area of resistance near C$.75 (almost 50% above current levels) followed by a rally back to all-time highs (C$1.38) reached earlier this year after Jericho announced initial results from its first STACK well.
The market loves exploration news, especially exploration news that indicates production growth. Jericho’s hidden gem might be about to deliver just what the market wants. Shrewd investors have the opportunity to use the recent market weakness which has resulted from a tumultuous broader market environment to pick up Jericho shares at support just before Jericho begins drilling its hidden gem.
Disclaimer
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. Jericho Oil Corp. is a high-risk venture stock and not suitable for most investors.. Consult Jericho Oil Corp’s SEDAR profile for important risk disclosures.
EnergyandGold has been compensated to cover Jericho Oil Corp. and so some information may be biased. EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.
This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. 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 the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.
TORONTO, Oct. 30, 2018 /PRNewswire/ – Denison Mines Corp. (“Denison” or the “Company”) (DML: TSX, DNN: NYSE MKT) today announces that it filed a technical report under Canadian Securities Administrators’ National Instrument 43-101 Standard of Disclosure for Mineral Projects for its 90% owned Wheeler River Project in Saskatchewantitled “Pre-feasibility Study for the Wheeler River Uranium Project, Saskatchewan, Canada” dated October 30, 2018 with an effective date of September 24, 2018.
The technical report is posted on the Company’s website at www.denisonmines.com and is available under its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml. This report supports the disclosure made by the Company in its news release dated September 24, 2018 (the “News Release”) and there are no material differences contained in the technical report from the information previously disclosed in the News Release.
As outlined in the News Release, the PFS considers the potential economic merit of co-developing the Phoenix and Gryphon deposits. The high-grade Phoenix deposit is designed as an In-Situ Recovery (“ISR”) mining operation, with associated processing to a finished product occurring at a plant to be built on site at Wheeler River. The Gryphon deposit is designed as an underground mining operation, utilizing a conventional long hole mining approach with processing of mine production assumed at Denison’s 22.5% owned McClean Lake mill.
Taken together, the project is estimated to have mine production of 109.4 million pounds U3O8 over a 14-year mine life, with a base case pre-tax Net Present Value (“NPV”) of $1.31 billion (8% discount rate), Internal Rate of Return (“IRR”) of 38.7%, and initial pre-production capital expenditures of $322.5 million. The base-case economic analysis assumes uranium sales are made at UxC Consulting Company, LLC’s (“UxC”) annual estimated spot price for mine production from the Phoenix deposit (from ~US$29/lb U3O8to US$45/lb U3O8), and a fixed price for mine production from the Gryphon deposit (US$50/lb U3O8).
Using the same price assumed for the project’s 2016 Preliminary Economic Assessment (“2016 PEA”), a fixed uranium price of US$44/lb U3O8 (“PEA Reference Case”), the PFS produces a combined pre-tax project NPV of $1.41 billion – representing roughly 275% of the $513 million pre-tax project NPV estimated in the 2016 PEA.
Pre-Feasibility Study Highlights
Phoenix delivers exceptional operating costs and manageable initial capex with ISR
Mine life
10 years (6.0 million lbs U3O8 per year on average)
Probable reserves(1)
59.7 million lbs U3O8 (141,000 tonnes at 19.1% U3O8)
Average cash operating costs
$4.33 (US$3.33) per lb U3O8
Initial capital costs
$322.5 million
Base case pre-tax IRR(2)
43.3%
Base case pre-tax NPV8%(2)
$930.4 million
Base case price assumption
UxC spot price(3) (from ~US$29 to US$45/lb U3O8)
Operating profit margin(4)
89.0% at US$29/lb U3O8
All-in cost(5)
$11.57 (US$8.90) per lb U3O8
(1)
See below for additional information regarding Probable reserves;
(2)
NPV and IRR are calculated to the start of pre-production activities for the Phoenix operation in 2021;
(3)
Spot price forecast is based on “Composite Midpoint” scenario from UxC’s Q3’2018 Uranium Market Outlook (“UMO”) and is stated in constant (not-inflated) dollars;
(4)
Operating profit margin is calculated as uranium revenue less operating costs, divided by uranium revenue. Operating costs exclude all royalties, surcharges and income taxes;
(5)
All-in cost is estimated on a pre-tax basis and includes all project operating costs and capital costs, divided by the estimated number of pounds U3O8 to be produced.
Gryphon leverages existing infrastructure and provides additional low-cost production
Mine life
6.5 years (7.6 million lbs U3O8 per year on average)
Probable reserves(1)
49.7M lbs U3O8 (1,257,000 tonnes at 1.8% U3O8)
Average cash operating costs
$15.21 (US$11.70)per lb U3O8
Initial capital costs
$623.1 million
Base case pre-tax IRR(2)
23.2%
Base case pre-tax NPV8%(2)
$560.6 million
Base case price assumption
US$50 per pound U3O8
Operating profit margin(3)
77.0% at US$50/lb U3O8
All-in cost(4)
$29.67 (US$22.82) per lb U3O8
(1)
See below for additional information regarding Probable reserves;
(2)
NPV and IRR are calculated to the start of pre-production activities for the Gryphon operation in 2026;
(3)
Operating profit margin is calculated as uranium revenue less operating costs, divided by uranium revenue. Operating costs exclude all royalties, surcharges and income taxes;
(4)
All-in cost is estimated on a pre-tax basis and includes all project operating costs and capital costs, divided by the estimated number of pounds U3O8 to be produced.
Selection of ISR mining method for high-grade Phoenix deposit – Following the completion of the 2016 PEA, the Company evaluated 32 alternate mining methods to replace the high-cost Jet Bore Mining System (“JBS”) assumed for the Phoenix deposit in the 2016 PEA. The suitability of ISR mining for Phoenix has been confirmed by significant work completed in the field and laboratory – including drill hole injection, permeability, metallurgical leach, agitation, and column tests. Results demonstrate high rates of recovery in both extraction (+90%) and processing (98.5%) following a simplified flow sheet that precipitates uranium directly from the uranium bearing solution (“UBS”), without the added costs associated with ion exchange or solvent extraction circuits.
Novel application of established mining technologies – Given the unique geological setting of the Phoenix deposit, straddling the sub-Athabasca unconformity in permeable ground, the project development team has combined the use of existing and proven technologies from ISR mining, ground freezing, and horizontal directional drilling to create an innovative model for in situ uranium extraction in the AthabascaBasin. While each of the technologies are well established, the combination of technologies results in a novel mining approach applicable only to deposits occurring in a similar geological setting to Phoenix – which now represents the first deposit identified for ISR mining in the Athabasca Basin.
Environmental advantages of ISR mining at Phoenix – The Company’s evaluation of the ISR mining method for Phoenix has also identified several significant environmental and permitting advantages, namely the absence of tailings generation, the potential for no water discharge to surface water bodies, and the potential to use the existing Provincial power grid to operate on a near zero carbon emissions basis. In addition, the use of a freeze wall, to encapsulate the ore zone and contain the mining solution used in an ISR operation, eliminates common environmental concerns associated with ISR mining and facilitates a controlled reclamation of the site. Taken together, the Phoenix operation has the potential to be one of the most environmentally friendly mining operations in the world. Owing largely to these benefits, consultation with regulatory agencies and stakeholder communities, to date, has been encouraging regarding the use of ISR mining.
The PFS has been completed in accordance with NI 43-101, Canadian Institute of Mining, Milling and Petroleum (CIM) standards and best practices, as well as other standards such as the AACE Cost Estimation Standards.
Wheeler River Project
The Wheeler River project is the largest undeveloped uranium project in the eastern portion of the Athabasca Basin region in northern Saskatchewan, Canada. The project is situated in close proximity to important regional infrastructure, including the Provincial electrical transmission grid and an all-season Provincial highway. Since Denison became the operator of the project in 2004, two high-grade uranium deposits have been discovered and now account for combined Mineral Reserves and Mineral Resources (100% Basis) as follows:
Probable Mineral Reserves of 109.4 million pounds U3O8
Deposit
Classification
Tonnes
Grade
Lbs U3O8
Phoenix
Probable
141,000
19.1%
59.7 million
Gryphon
Probable
1,257,000
1.8%
49.7 million
Total
Probable
1,398,000
3.5%
109.4 million
Notes:
(1)
Reserve statement is as of September 24, 2018;
(2)
CIM definitions (2014) were followed for classification of mineral reserves;
(3)
Mineral reserves for the Phoenix deposit are reported at the mineral resource cut-off grade of 0.8% U3O8. The mineral reserves are based on the block model generated for the May 28, 2014 mineral resource estimate. A mining recovery factor of 85% has been applied to the mineral resource above the cut-off grade;
(4)
Mineral reserves for the Gryphon deposit are estimated at a cut-off grade of 0.58% U3O8 using a long-term uranium price of USD$40/lb, and a USD$/CAD$ exchange rate of 0.80. The mineral reserves are based on the block model generated for the January 30, 2018 mineral resource estimate. The cut-off grade is based on an operating cost of CAD$574/tonne, milling recovery of 97%, and 7.25% fee for Saskatchewan royalties;
(5)
Mineral reserves include diluting material and mining losses;
(6)
Mineral reserves are stated at a processing plant feed reference point;
(7)
Numbers may not add due to rounding.
Indicated Mineral Resources (inclusive of Reserves) of 132.1 million pounds U3O8 (1,809,000 tonnes at an average grade of 3.3% U3O8); plus
Inferred Mineral Resources of 3.0 million pounds U3O8(82,000 tonnes at an average grade of 1.7% U3O8).
The PFS does not include any economic analysis based on estimated Inferred Mineral Resources.
The project is a joint venture between Denison (90% and operator) and JCU (Canada) Exploration Company Limited (“JCU”) (10%).
Qualified Persons
The disclosure of the results of the PFS contained in this news release, including the mineral reserves, was reviewed and approved by Peter Longo, P. Eng, MBA, PMP, Denison’s Vice-President, Project Development, who is a Qualified Person in accordance with the requirements of NI 43-101.
The disclosure of a scientific or technical nature regarding the Phoenix and Gryphon deposits, including the mineral resources, contained in this news release was reviewed and approved by Dale Verran, MSc, P.Geo., Pr.Sci.Nat., Denison’s Vice President, Exploration, who is a Qualified Person in accordance with the requirements of NI 43-101.
For a 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 27, 2018 filed under the Company’s profile on SEDAR at www.sedar.com.
About Denison
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. In addition to its 90.0% owned Wheeler River project, which ranks as the largest undeveloped high-grade uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, Denison’s Athabasca Basin exploration portfolio consists of numerous projects covering approximately 320,000 hectares. Denison’s interests in the Athabasca Basin 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 and Midwest A deposits, and a 65.45% interest in the J Zone deposit and Huskie discovery on the Waterbury Lake property. Each of Midwest, Midwest A, J Zone and Huskie 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.
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 financial performance and condition of Denison.
Generally, these forward-looking statements can be identified by the use of forward-looking 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 results of, and estimates, assumptions and projections provided in, the PFS, including future development methods and plans, market prices, costs and capital expenditures; the Company’s current plans with respect to the commencement and completion of an EA and feasibility study on the project; assumptions regarding Denison’s ability to obtain all necessary regulatory approvals to commence development; Denison’s percentage interest in its projects and its agreements with its joint venture partners; and the availability of services to be provided by third parties. Statements relating to “mineral resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the 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 activity, performance or achievements of Denison to be materially different from those expressed or implied by such forward-looking statements. Denison faces certain risks, including the inability to permit or develop the project as currently planned, the unpredictability of market prices, the use of mining methods which are novel and untested in the AthabascaBasin, events that could materially increase costs, changes in the regulatory environment governing the project lands, and unanticipated claims against title and rights to the project. Denison believes that the expectations reflected in this forward-looking information are reasonable but there can be no assurance that such statements will prove to be accurate and 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 “Risk Factors” in Denison’s Annual Information Form dated March 27, 2018 available under its profile at www.sedar.com and 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 reliance on forward-looking statements. The forward-looking information contained in this press 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 press release. 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.
Vancouver, British Columbia, October 30, 2018 (Globe Newswire) – Irving Resources Inc. (CSE:IRV) (“Irving” or the “Company”) is pleased to announce it has received approval from the Ministry of Economy, Trade and Industry (“METI”) of its Omui Mine Plan covering mining and exploration related activities at its Omui Mining License (“Omui”). Omui is part of Irving’s 100% controlled Omu gold-silver project, Hokkaido, Japan. Approval of this Omui Mine Plan is a very important step and allows Irving to bulk sample and ship the material offsite, and conduct diamond drilling and other advanced exploration activities. Omui is one of Irving’s key high grade target areas at Omu. With this approval, Irving must now submit the Omui Mine Safety Regulation for acceptance. Approval of Irving’s Omu Sinter drilling permit, a separate application from the Omui Mine Plan, is currently awaited. Omu Sinter is another one of the high priority targets at Omu. As discussed in the Company’s news release dated October 19, 2018, Irving is currently working with Mitsui Mineral Development Engineering Co., Ltd. (“MINDECO”) and Rodren Drilling Ltd. to mobilize a diamond drill to Omu. Further updates about timing of drilling will be provided as these various items are organized. “Approval of our Mine Plan by METI is very encouraging”, commented Akiko Levinson, President and Director of Irving Resources. “Not only does this give us approval to conduct bulk sampling, trenching and diamond drilling, this establishes Irving as a mining company in Japan”. Quinton Hennigh (Ph.D., P.Geo.) is the Qualified Person pursuant to National Instrument 43-101 responsible for, and having reviewed and verified, the technical information contained in this news release. Dr. Hennigh is a technical advisor and director of Irving Resources Inc. About Irving Resources Inc.: Irving is a junior exploration company with a focus on gold in Japan. Irving also holds, through a subsidiary, Project Venture Agreements with Japan Oil, Gas and Metals National Corporation (JOGMEC) for joint regional exploration programs in the United Republic of Tanzania, the Republic of Malawi and the Republic of Madagascar. JOGMEC is a government organization established under the law of Japan, administrated by the Ministry of Economy, Trade and Industry of Japan, and is responsible for stable supply of various resources to Japan through the discovery of sizable economic deposits of base, precious and rare metals. Additional information can be found on the Company’s website: www.IRVresources.com. Akiko Levinson, President & Director For further information, please contact: Tel: (604) 682-3234 Toll free: 1 (888) 242-3234 Fax: (604) 641-1214 info@IRVresources.com THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
Vancouver, British Columbia–(Newsfile Corp. – October 30, 2018) – EMX Royalty Corporation(TSXV: EMX) (NYSE American: EMX) (the “Company“ or “EMX“) is pleased to announce that it has received its initial cash distribution of US $65.15 million from IG Copper LLC’s (“IGC”) sale of the Malmyzh copper-gold porphyry project (“Malmyzh” or the “Project”). IGC sold Malmyzh to Russian Copper Company (“RCC”) for US $200 million, of which US $190 million has been released from escrow1. The remaining US $10 million from the sale is being held in escrow, and subject to certain conditions, cash distributions of up to US $4 million will be made to EMX as funds are released from escrow over the next 12 months.
EMX’s strategic investment in IGC resulted from the Company’s recognition of Malmyzh in 2011 as an early-stage opportunity with excellent discovery potential. EMX took a disciplined investment approach by backing IGC’s initiatives to steadily advance the Project over the years, and when market conditions allowed, maximized value for EMX’s shareholders and IGC’s investors by supporting the sale of Malmyzh to RCC. The Malmyzh sale is a milestone event for EMX, and the Company enthusiastically looks forward to future successes in building value for its shareholders.
About EMX. EMX leverages asset ownership and exploration insight into partnerships that advance our mineral properties, with EMX receiving pre-production payments and retaining royalty interests. EMX complements its royalty generation initiatives with royalty acquisitions and strategic investments. Please see www.EMXroyalty.com for more information.
About IGC. IGC, a privately held company, is led by President and CEO Thomas E. Bowens, and includes key personnel with a track record of exploration discovery and project development in the Russian Far East.
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For further information contact:
David M. Cole President and Chief Executive Officer Phone: (303) 979-6666 Email: Dave@EMXroyalty.com
Scott Close Director of Investor Relations Phone: (303) 973-8585 Email: SClose@EMXroyalty.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
1 See EMX news release dated October 11, 2018.
Forward-Looking Statements
This news release may contain “forward looking statements“ that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures,timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,““intend,““expect,““anticipate,““will“, “believe“,“potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company‘s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the sixmonth periodthat ended onJune 30, 2018(the“MD&A”), and themost recently filed Form 20-F for the year ended December 31, 2017,actual events may differ materially from current expectations. More information about the Company, including the MD&A, the 20-F and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.
VANCOUVER, British Columbia, Oct. 30, 2018 (GLOBE NEWSWIRE) — Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to discuss recent findings and exploration plans at its recently acquired Egina gold project, Western Australia.
Like Novo’s Karratha gold project, Egina is an important part of the Pilbara conglomerate gold province. Not only does Egina have potential to host significant deposits of gold-bearing conglomerates, weathering and erosion appear to have liberated considerable gold from these rocks and redeposited it into extensive surficial lag gravel deposits blanketing much of the area. Gold-bearing gravels can easily be explored as described in Novo’s aggressive exploration program described below.
Egina Exploration Model Highlights:
Egina lies in the heart of the Pilbara conglomerate gold province approximately 120 km east of Novo’s Karratha gold project (please refer to Figure 1). Upon recognizing its conglomerate gold potential, Novo began applying for multiple exploration licenses covering much of the core area beginning in 2017. On September 17, 2018, Novo announced two transactions; the acquisition of private company Farno-McMahon Pty Ltd (“FM”), and a joint venture with ASX-listed Pioneer Resources Limited, increasing Novo’s Egina project to 948 square km. Importantly, purchase of FM included granted mining leases M47/560 and M47/561 covering approximately 11.8 square km of key target areas.
Three styles of gold mineralization are recognized at Egina: 1) basal Fortescue gold-bearing conglomerates like those at Novo’s Karratha gold project, 2) gold-bearing, deflationary and/or marine lag gravels blanketing an erosional terrace covering most of the Egina area, and 3) lode gold mineralization hosted by the underlying Mallina Basin assemblage.
Given the large size of the target, Novo considers the gold-bearing terrace lag gravels to be the most important immediate target at Egina. Gravel deposits form a continuous sheet across much of the terrace, and their origin is depicted in Figure 1. Where they have been trenched, they are up to 1.5 meters thick and weakly consolidated. Lag gravels rest on weathered Mallina Group sedimentary rocks, and up to 1 meter of soil and sand overlie them.
Novo has discovered considerable cobbles and boulders of weathered Fortescue-type conglomerate within the lag gravels. Particulate gold has been observed in the matrix of some conglomerate boulders. A few gold nuggets that have been recovered from trenches at Egina remain partially encased in ferruginous rock matrix, some of which display a distinctive melon seed shape similar to nuggets observed at Karratha. Remarkably, halos of fine-grained gold are evident in the residual rock matrix surrounding these nuggets, again strikingly similar to that observed around in situnuggets at Karratha. Novo firmly believes much of the gold in lag gravels is derived from geologically recent weathering and erosion of Fortescue-type conglomerates that once blanketed this area.
Most gold found at Egina is coarse and water-worn. During the 2018 exploration season, FM focused entirely on metal detecting nuggets within a series of trenches covering an area roughly 500 x 200 meters. Detected nuggets range in size from approximately 0.5-104 grams. As a test for the presence of fine-grained gold, Novo recently assessed gravel from these trenches. Significant numbers of small nuggets up to 4 mm across were recovered along with appreciable very fine gold particles down to approximately 10 microns in size (please refer to Figure 1). Novo finds the presence of fine gold particularly encouraging and believes it may be derived, in part, from weathering of halo gold associated with Fortescue-type nuggets.
2018 Exploration Plans
° Systematic sampling of • largely unworked areas of lag gravel within M47/560 • gravels already excavated but not processed by FM that have shown appreciable fine gold in preliminary testing (please refer to Figure 1) ° Geophysical testwork including ground penetrating radar and ground magnetics to define terrace and channel geometries ° Trench mapping and survey pickup to delineate gravel horizons for input into a 3D model ° Conduct broader-spaced program of alluvial sampling for fine gold and develop coarse gold assessment strategy ° Assess Novo’s IGR3000 alluvial processing plant for suitability and engineering modifications ahead of bulk sampling of the terrace gravels in 2019 ° Regional 1:2,500 scale mapping to define areas of conglomerate gold and basement gold potential
Novo plans to engage the Kariyarra and Mugarinya Traditional Owner Groups to seek permission to explore on Novo-controlled exploration licenses surrounding M47/560. Environmental regulators will also be engaged regarding permitting requirements for the project, laying the groundwork for Novo to conduct test mining of lag gravels on mining lease M47/560 at Egina beginning after the rainy season, approximately second quarter of calendar 2019.
“Egina is a very special gold-property,” commented Dr. Quinton Hennigh, Chairman and President of Novo Resources Corp. “Upon recognizing the potential for conglomerate gold here, we diligently assembled a large land position covering the area. What really caught our attention was the presence of appreciable gold in the lag gravels covering the vast flat terrace system covering the region. Our research over the past few months has led to compelling evidence this gold is likely derived from basal Fortescue conglomerates like those 120 km west at Karratha. We find this particularly intriguing because it suggests there was, in recent geologic time, a potentially large source of detrital gold that has been weathered, eroded, then reconstituted into lag gravels. These unconsolidated gravels are situated within a meter of surface allowing for easy exploration and assessment.”
Dr. Quinton Hennigh, P. Geo., the Company’s President and Chairman and a qualified person as defined by National Instrument 43-101, has approved the geological content of this news release.
About Novo Resources Corp.
Novo’s focus is to explore and develop gold projects in the Pilbara region of Western Australia, and Novo has built up a significant land package covering approximately 12,000 sq km with varying ownership interests. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com
On Behalf of the Board of Directors,
Novo Resources Corp.
“Quinton Hennigh” Quinton Hennigh President and Chairman
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward-looking information Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, statements as to planned exploration activities. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, customary risks of the mineral resource industry as well as the performance of services by third parties and the issuance of necessary approvals and permits by regulatory authorities.
(Figure 1 – Images discussing the Egina gold project.
Location Map: Egina lies approximately 120 km east of Novo’s Karratha conglomerate gold project and 200 km northwest of Novo’s Beaton’s Creek conglomerate gold project.
Egina Flats: A vast erosional terrace, partly terrestrial and partly marine in origin, covers most of the country around Egina. This terrace region has yielded alluvial gold since the 1880’s. Novo believes this gold was derived from weathering and erosion of Fortescue gold-bearing conglomerates that blanketed this area until recent geologic time.
Fortescue Basin: Remnants of Fortescue Group gold-bearing conglomerates and Mt Roe basalt cap small mesas scattered across southern portions of the Egina area.
Schematic Section through Egina: As Fortescue Group rocks have been weathered and eroded away, a residual lag gravel has formed containing gold likely derived from them. Wind blown sand and soil cover the lag gravel in most areas. Lode gold deposits in underlying Mallina Basin sedimentary rocks may have also yielded some gold.
Lag Gravel: Lag gravels are unconsolidated and easily excavated (top photo). The lag gravel horizon is up to 1.5 meters thick in areas that have recently been trenched (bottom photo). Weathered Mallina Group sedimentary rocks form the platform underneath and wind blown sand and soil rest above the lag gravel.
Conglomerate: Novo geologists have found numerous cobbles and boulders of Fortescue-type conglomerate in lag gravels at Egina (top and bottom left photos). These rocks often display rounded patches of iron oxides after weathered pyrite pebbles. Particles of gold have been observed in the matrix of conglomerate boulders (center right photo). A few gold nuggets that have been recovered from trenches at Egina remain partially encased in ferruginous rock matrix (lower right photo). These nuggets display a distinctive melon seed shape similar to nuggets observed at Karratha. Halos of fine-grained gold are evident in the residual rock matrix surrounding these nuggets, again strikingly similar to that observed around in-situ nuggets at Karratha. Novo believes much of the gold in lag gravels is derived from geologically recent weathering and erosion of Fortescue-type conglomerates that once blanketed this area.
Egina Gold: A comparison of a melon seed type nugget from Comet Well to a similar one eroded from Fortescue conglomerates at Egina (upper left photo). Recently detected nuggets from Egina range in size from approximately 0.5-104 grams (upper right photo). Novo recently assessed a test sample of gravel from these trenches. Significant numbers of small nuggets up to 4 mm across were recovered along with appreciable very fine gold particles down to approximately 10 microns in size (bottom photo). Novo believes fine-grained gold may be derived, in part, from weathering of halo gold associated with Fortescue-type nuggets. Please note that gold mineralization in the above figure is not necessarily representative of the mineralization hosted on the Egina property.)
TORONTO, Oct. 30, 2018 (GLOBE NEWSWIRE) — Gowest Gold Ltd. (“Gowest” or the “Company”) (GWA.V) is pleased to announce that it has entered into a definitive Custom Milling Agreement (“the Agreement”) with QMX Gold Corporation (“QMX”) pursuant to which QMX will process material from the Company’s Bradshaw Gold Deposit (“Bradshaw”) at its Aurbel Mill (the “Mill”) located in Val d’Or, Quebec.
Pursuant to the Agreement, Gowest will be obligated to fund certain upgrade permits and capital expenditures necessary to use the Mill to process Bradshaw material as part of its bulk sample and pre-production program, followed by production at Bradshaw. Assuming all necessary permits are received and upgrades are performed, the Agreement will have a four (4) year term with an option to extend. Gowest has already stockpiled over 28,000 tonnes of development material on surface in preparation for ore-sorting. (See Gowest news release dated April 16, 2018.) The Company intends to truck sorted mineralized material to the Mill for toll milling into a high-grade gold concentrate. Gowest will then ship the gold concentrate to the Humon Smelter, Shandong Province China (see Gowest news release dated February 14, 2018) for final processing and sale.
With the execution of the definitive agreement, QMX and Gowest will immediately form a Technical Committee made up of individuals from both parties that will oversee the application and receipt of necessary permits required by the Province of Quebec to process third party material and start up of the Mill. At this time, it is expected that processing will begin mid-2019. In conjunction with preparing the Mill for start up, the Company intends to crush and sort the material on surface at the Bradshaw site, continue the infill drill program and continue preparations for underground mining. Gowest will provide updates on its progress and timing as information becomes available.
Gowest President & CEO, Greg Romain said, “We are very pleased to have reached this agreement with QMX, which represents a vital milestone in our development of Bradshaw and in our goal of advancing it into a commercial gold mine.” Mr. Romain added, “The termination of the previously executed agreement for toll milling prevented the Company from moving the project into the next phase of mining and financing. Now that we have closed the loop, we will be able to finalize discussions on completing the necessary funding of the project.”
Qualified Person
The technical information in this news release has been reviewed and approved by Mr. Jeremy Niemi, P.Geo., Gowest’s Director of Exploration, who is the Qualified Person for the technical information in this news release under National Instrument 43‐101 standards.
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Bradshaw Gold Deposit (Bradshaw), on the Frankfield Property, part of the Corporation’s North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on its +100-square‐kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. Currently, Bradshaw contains a National Instrument 43-101 Indicated Resource estimated at 2.1 million tonnes (“t”) grading 6.19 grams per tonne gold (g/t Au) containing 422 thousand ounces (oz) Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre-Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Mineral Reserves (Mineral Resources are inclusive of Mineral Reserves) in the probable category, using a 3 g/t Au cut-off and utilizing a gold price of US$1,200 / oz, totaling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.
Forward-Looking Statements
This news release may contain certain “forward looking statements”. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.
Vancouver, British Columbia – (October 29, 2018) – Rover Metals Corp. (TSXV: ROVR) (“Rover Metals” or the “Company“) is pleased to announce results of its soil geochemical survey on its 100% owned Cabin Lake Gold Project, NT, Canada. Rover Metals’ Fall 2018 Exploration Program at its Cabin Lake Gold Project has focused on revisiting the historic gold zone occurrences over the gold-rich iron formation to better understand the system, geology, structure and mineralization. The Fall 2018 Exploration Program has combined a detailed Total Magnetic Field UAS Survey with a Soil Geochemistry Survey. The second phase of the Cabin Lake Gold Project exploration program will consist of diamond drilling scheduled for the upcoming winter months.
The results from the Geochemical Survey, even at the ultra-trace level, reveal strong coincident gold anomalies around and on known historic gold mineralization areas, particularly over the Camp and Andrew South Zones. The survey also shows a new additional well-defined anomalous zone in the south-east zone of the property. The interpretation of the results from field reconnaissance, the magnetic survey and the preliminary soil sampling analysis supports the hypothesis of a gold bearing system in the form of a shear corridor intersecting a series of folded iron formations, with gold preferentially being deposited within sulphidized sections of the iron formations in such zones. Rover Metals’ interpretation supported by the new gold in-soil anomalies, also supports the hypothesis that there is a much more extensive gold system than initially discovered by Aber Resources’ historic exploration drilling in the late 1980’s which only focused on one folded section of the Bugow Iron Formation. Rover Metals has identified repetitive targets within these northeast-southeast shear corridors. The Company believes the Cabin Lake system is similar in kind and style to the historic Lupin Gold Mine in Nunavut, Canada, and to some extent to the Musselwhite Gold Mine in Ontario, Canada. Keith Minty, President of Rover Metals, states“We just tested our initial thesis on the shear zones and Iron Formation intersections within the Cabin Lake property and the correlations exceed our expectations in defining a new gold anomaly in a previously untested area. We are continuing to analyse the data from Fall 2018 Exploration Program. In the future, we plan to use the same geochemistry testing protocols on the remaining areas of the Cabin Lake Group Project (i.e. inclusive of the Camp Lake and Slemon Lake claims) to identify and further expand the known gold anomalies.” About the Geochemistry Survey The program consisted of 485 samples covering an area of approximately 1,150 meters x 600 meters (69 hectares) following lines north-south oriented and spaced 50 meters between each other. Sample stations were placed every 25 meters within the lines. Samples were taken using auger tools below the topsoil wherever possible. Even though the region is known to be locally covered with glacial till, the surveyed area was selected by its outcrop exposures on known mineralized zones for comparison and reference over other possible zones within the property boundaries. The Geochemistry Survey also reveal coincident anomalies of pathfinder elements to this style of gold mineralization such as Arsenic, Sulphur (%) and Copper on top of the magnetic anomalies following the Bugow Iron formation. Aurora Geosciences Ltd. from Yellowknife, NT, Canada, was commissioned to perform the geophysical and geochemical work. Soil samples were collected under the direct supervision of Raul Sanabria, P.Geo,, VP of Exploration at Rover Metals and Company project QP, following a tight chain of custody from the collection site to ALS preparation facility in Yellowknife, NT. Assays were performed at ALS Laboratories in Vancouver, British Columbia. Certified blank and standard samples were inserted at regular batch intervals for accuracy and verification. Technical information in this news release has been approved by Raul Sanabria, M.Sc., P.Geo., VP of Exploration at Rover Metals Corp. and a Qualified Person for the purposes of National Instrument 43-101. About Rover Metals Rover Metals is a natural resource exploration company specialized in Canadian precious metal resources that is currently focused on the Northwest Territories of Canada, one of the most mining friendly jurisdictions in North America.
ON BEHALF OF THE BOARD OF DIRECTORS “Judson Culter” Chief Executive Officer and Director For further information, please contact: Judson Culter Email: judson@rovermetals.com Phone: (604) 449-5347 Statement Regarding Forward-Looking Information
This news release contains statements that constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Rover’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Any factor could cause actual results to differ materially from Rover’s expectations. Rover undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change. THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS. NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.
TORONTO, Oct. 29, 2018 /PRNewswire/ – Denison Mines Corp. (“Denison” or the “Company”) (DML.TO) (NYSE American: DNN) is pleased to announce that it has completed the previously announced transaction (the “Transaction”) with Cameco Corporation (“Cameco”), whereby Denison has acquired all of Cameco’s minority interest in the Wheeler River Uranium Project (“Wheeler River” or the “Project”). Denison now holds a 90% participating interest in the Project (directly and indirectly through its subsidiary Denison Mines Inc.).
Denison’s joint venture partner in the Project, JCU (Canada) Exploration Company Limited (“JCU”), waived its right of first refusal to pro rata participation in the Transaction, and retained its 10% participating interest in the Project.
Denison acquired Cameco’s approximately 24% interest in the Wheeler River Joint Venture, in exchange for the issuance of 24,615,000 common shares of Denison, representing approximately 4.2% of the Company’s issued and outstanding common shares.
About Wheeler River
Wheeler River is the largest undeveloped uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, in northern Saskatchewan – including combined Indicated Mineral Resources of 132.1 million pounds U3O8 at an average grade of 3.3% U3O8, plus combined Inferred Mineral Resources of 3.0 million pounds U3O8 at an average grade of 1.7% U3O8. The project is host to the high-grade Phoenix and Gryphon uranium deposits (discovered by Denison in 2008 and 2014, respectively), and is a joint venture between Denison (90% and operator) and JCU (10%).
A Pre-Feasibility Study (“PFS”) was completed, considering the potential economic merit of co-developing the high-grade Gryphon and Phoenix deposits, the results of which were announced on September 24, 2018. Taken together, the project is estimated to have mine production of 109.4 million pounds U3O8 over a 14-year mine life, with a base case pre-tax Net Present Value (“NPV”) of $1.31 billion (8% discount rate), Internal Rate of Return (“IRR”) of 38.7%, and initial pre-production capital expenditures of $322.5 million. The PFS is prepared on a project (100% ownership) and pre-tax basis, as each of the partners to the Wheeler River Joint Venture (“WRJV”) are subject to different tax and other obligations. Additional scientific and technical information relevant to the PFS, as well as after-tax results attributable to Denison’s ownership interest, are described in greater detail in the September 24, 2018 press release announcing the results of the PFS. A NI 43-101 technical report supporting the PFS results is in the process of being finalized and will be filed under Denison’s profile on SEDAR within 45 days of the initial press release.
The disclosure of the results of the PFS contained in this news release, including the mineral reserves, was reviewed and approved by Peter Longo, P. Eng, MBA, PMP, Denison’s Vice-President, Project Development, who is a Qualified Person in accordance with the requirements of NI 43-101.
Further details regarding the Wheeler River project are provided in the NI 43-101 Technical Report for the Wheeler River project titled “Technical Report with an Updated Resource Estimate for the Wheeler River Property, Northern Saskatchewan, Canada” dated March 15, 2018 with an effective date of March 9, 2018. 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.
The disclosure of a scientific or technical nature regarding the Phoenix and Gryphon deposits, including the mineral resources, contained in this news release was reviewed and approved by Dale Verran, MSc, P.Geo., Pr.Sci.Nat., Denison’s Vice President, Exploration, who is a Qualified Person in accordance with the requirements of NI 43-101.
For a 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 27, 2018 filed under the Company’s profile on SEDAR at www.sedar.com.
About Denison
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. In addition to its 90% owned Wheeler River project, which ranks as the largest undeveloped high-grade uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, Denison’s Athabasca Basin exploration portfolio consists of numerous projects covering approximately 320,000 hectares. Denison’s interests in Athabasca Basin 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 and Midwest A deposits, and a 65.45% interest in the J Zone deposit and Huskie discovery on the Waterbury Lake property. Each of Midwest, Midwest A, J Zone and Huskie 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.
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 financial performance and condition of Denison. Generally, these forward-looking statements can be identified by the use of forward-looking 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: Denison’s percentage interest in its properties and its plans and agreements with its joint venture partners; the interests of JCU and its rights under the terms of the Wheeler River JV; estimates of Denison’s mineral resources; the results of its PFS assessing the potential for project development; and outlook for the industry and uranium mining in the Athabasca Basin. 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.
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, performance or achievements of Denison to be materially different from those expressed or implied by forward-looking statements. 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 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 Annual Information Form dated March 27, 2018 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 forward-looking information and the assumptions made with respect thereto speaks only as of the date of this press release. 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 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. “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.
