TORONTO , Jan. 8, 2019 /CNW/ – Uranium Participation Corporation (“UPC”) (TSX:U) reports its estimated net asset value at December 31, 2018 was CAD$691.5 million or CAD$5.01 per share. As at December 31, 2018 , UPC’s uranium investment portfolio consisted of the following: View PDF Version.
(in thousands of Canadian dollars, except quantity amounts)
Quantity
Fair Value
Investments in Uranium:
Uranium oxide in concentrates (“U3O8“)
14,159,354 lbs
$
550,511
Uranium hexafluoride (“UF6“)
1,117,230 KgU
$
134,123
$
684,634
U3O8 fair value1 per pound:
– In Canadian dollars1
$
38.88
– In United States dollars
$
28.50
UF6 fair value1 per KgU:
– In Canadian dollars1
$
120.05
– In United States dollars
$
88.00
1
Fair values are month-end spot prices published by Ux Consulting Company, LLC, translated at the Bank of Canada’s month-end daily exchange rate of $1.3642.
On the last trading day of December 2018 , the common shares of UPC closed on the TSX at a value of CAD$4.48 , which represents a 10.58% discount to the net asset value of CAD$5.01 per share.
About Uranium Participation Corporation
Uranium Participation Corporation is a company that invests substantially all of its assets in uranium oxide in concentrates (“U3O8“) and uranium hexafluoride (“UF6“) (collectively “uranium”), with the primary investment objective of achieving appreciation in the value of its uranium holdings through increases in the uranium price. UPC provides investors with a unique opportunity to gain exposure to the price of uranium without the resource or project risk associated with investing in a traditional mining company. Additional information about Uranium Participation Corporation is available on SEDAR at www.sedar.com and on UPC’s website at www.uraniumparticipation.com.
Caution Regarding Forward-Looking Information
This press release contains certain forward-looking statements and forward-looking information that are based on UPC’s current internal expectations, estimates, projections, assumptions and beliefs. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intent”, “estimate”, “anticipate”, “plan”, “should”, “believe” or “continue” or the negative thereof or variations thereon or similar terminology and include statements with respect to UPC’s investment objectives.
By their very nature, forward-looking statements involve numerous factors, assumptions and estimates. A variety of factors, many of which are beyond the control of UPC, may cause actual results to differ materially from the expectations expressed in the forward-looking statement. These factors include, but are not limited to, changes in commodity prices and foreign exchange as well as the risk that UPC will not obtain the anticipated benefits of its agreements with third parties. For a description of the principal risks of UPC, see “Risk Factors” in UPC’s Annual Information Form dated May 14, 2018 for the year ended February 28, 2018 , a copy of which is available at www.sedar.com.
These and other factors should be considered carefully, and readers are cautioned not to place undue reliance on these forward-looking statements. Although management reviews the reasonableness of its assumptions and estimates, unusual and unanticipated events may occur which render them inaccurate. Under such circumstances, future performance may differ materially from those expressed or implied by the forward-looking statements. Except where required under applicable securities legislation, UPC does not undertake to update any forward-looking information statement.
/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/
KELOWNA, BC , Dec. 21, 2018 /CNW/ – Fission 3.0 Corp. (“Fission 3” or the “Company“) is pleased to announce that it has closed its previously announced non-brokered private placement (the “Private Placement“) for total gross proceeds of $1,500,201 . The Company issued 500,000 units (“Units“) at a price of C$0.20 per Unit for gross proceeds of C$100,000 and 6,364,550flow-through shares (“FT Shares“) at a price of C$0.22 per FT Share for gross proceeds of C$1,400,201 . Each Unit consists of one common share (“Common Share“) and one common share purchase warrant (“Warrant“).
View photos
Fission 3.0 Corp. (CNW Group/Fission 3.0 Corp.)
Each Warrant is exercisable for an additional Common Share until three years from the date of issuance at an exercise price of C$0.25 . If, commencing four months and one day after the date of issuance, the volume weighted average trading price of the Company’s Common Shares on the TSX Venture Exchange is higher than C$0.30 for 20 consecutive trading days then, on the 20th consecutive trading day of any such period (the “Acceleration Trigger Date“), the expiry date of the Warrants may be accelerated by the Company in its absolute discretion to the 30th calendar day after the Acceleration Trigger Date by the issuance of a news release announcing such acceleration within three trading days of the Acceleration Trigger Date.
The Common Shares, Warrants, common shares issuable on exercise of the Warrants and FT Shares will be subject to resale restrictions for a period of four months from issuance.
In connection with the closing of the Private Placement, Red Cloud Klondike Strike Inc. (the “Finder“) received an aggregate cash commission of $98,014 , representing commissions of 7% of the gross proceeds raised by the Finder. The Company also granted the Finder 445,518 warrants (the “Finder’s Warrants“), representing 7.0% of the aggregated number of FT Shares sourced by the Finder. Each Finder’s Warrant is exercisable for one common share at a price of C$0.22 for a period of 36 months.
The gross proceeds of the offering of FT shares will be used to incur Canadian exploration expenses, which will be renounced in favour of the purchasers for the 2018 taxation year. The net proceeds from the sale of the Units will be used to advance development of the Company’s properties and for general working capital.
About Fission 3.0 Corp.
Fission 3.0 Corp. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties and is headquartered in Kelowna, British Columbia . Common Shares are listed on the TSX Venture Exchange under the symbol “FUU.”
ON BEHALF OF THE BOARD
“Dev Randhawa”
_________________
Dev Randhawa, CEO
Fission 3.0 Corp.
Cautionary Statement:Fission 3.0 Corp.
Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, 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”. Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Fission 3.0 Corp. which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and Fission 3.0 Corp. disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America . The securities have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.
TORONTO, ON / ACCESSWIRE / December 21, 2018 / DNI Metals Inc. (CSE: DNI; OTC PINK: DNMKF) (“DNI” or the “Company”) is pleased to announce the results of its annual meeting held December 20, 2018.
The following matters of business were conducted:
1. The presentation of the financial statements.
2. The election of 3 directors.
3. The re-appointment of UHY McGovern Hurley LLP as the Corporation’s auditors.
4. The change of the Corporation’s financial year end from March 31 to December 31.
5. The special resolution authorizing the continuance of the Corporation from the Province of Quebec into the Federal jurisdiction of Canada in accordance with the Business Corporations Act (Quebec) and the Canada Business Corporations Act, as more particularly described in the Information Circular for the Meeting.
The scrutineers provided the report on attendance, which indicated that there were present at the meeting, in person or represented by proxy, 113 shareholders holding 25,463,889 common shares of the Corporation, or 21.1% of the common shares outstanding.
Voting Results
Election of Directors
Outcome
Votes For
Votes Withheld
Daniel J. Weir
Carried
10,615,876
98.9%
117,851
1.1%
John A. Carter
Carried
10,657,592
99.21%
76,135
0.71%
Keith Minty
Carried
10,702,592
99.71%
31,135
0.29%
Appointment of Auditors
Carried
24,771,130
99.23%
192,134
0.77%
Change of Financial year end to December 31
Carried
10,716,974
99.84%
16,753
0.16%
Continuation of DNI from a Quebec Corporation under the QBCA to a Federal Corporation under the CBCA
Carried
10,619,586
98.94%
114,141
1.06%
The information Circular specified that Daniel J. Weir personally owns or exercise’s control over 3,050,000 common shares, however the actual numbers are 3,456,200 common shares and his wife Nicolle Weir owns 576,000 common shares, as disclosed and publicly available on Sedi. This information was also recorded in the minutes of the Annual Meeting.
This press release contains forward-looking statements, including statements that relate to, among other things, the following: (i) the geological characteristics of the projects; (ii) the potential to discover additional mineralization and to extend the area of mineralization; (iii) the potential to raise additional financing; and (iv) the potential to expand and upgrade the resource estimate of the projects. Forward-looking information is subject to the risks, uncertainties and other important factors that could cause the Company’s actual performance to differ materially from that expressed in or implied by such statements. Such factors include, but are not limited to volatility and sensitivity to market metal prices, impact of change in foreign exchange rates, interest rates, imprecision in resource estimates, imprecision in opinions on geology, environmental risks including increased regulatory burdens, unexpected geological conditions, adverse mining conditions, changes in government regulations and policies, including laws and policies; and failure to obtain necessary permits and approvals from government authorities, and other development and operating risks, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, “possible”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “objective”, “hope” and “continue” (or the negative thereof) and words and expressions of similar import. Although DNI believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company’s most recent annual and interim Management’s Discussion and Analysis under “Risk and Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory authorities. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.
VANCOUVER, Dec. 20, 2018 /PRNewswire/ – NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX:NXE, NYSE:NXE) is pleased to announce that it has filed a technical report on the Arrow Deposit, Rook I Project (the “Technical Report”) pursuant to National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101”). The Technical Report supports the disclosure made by the Company in its November 5, 2018news release announcing the results of the maiden pre-feasibility study for the Arrow Deposit located on the Company’s 100% owned, Rook I Property.
The Technical Report, bearing an effective date of November 5, 2018, is entitled: “Technical Report on the Pre-feasibility Study of the Arrow Deposit, Rook I Property, Saskatchewan, Canada” and was prepared by Mr. Paul O’Hara, P.Eng. of Wood., Mr. Jason J. Cox, P.Eng. of RPA, Mr. David M. Robson, P.Eng., M.B.A of RPA, and Mr. Mark B. Mathisen, C.P.G. of RPA, each of whom is a “qualified person” for the purposes of NI 43-101.
NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of uranium industry professionals with a successful track record in the discovery of uranium deposits and in developing projects through discovery to production. NexGen owns a portfolio of prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook I, location of the Arrow Deposit in February 2014, the Bow discovery in March 2015, the Harpoon discovery in August 2016 and the Arrow South discovery in July 2017.
Forward-Looking Information
The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.
Forward-looking information and statements are based on the then current expectations, beliefs, assumptions, estimates and forecasts about NexGen’s business and the industry and markets in which it operates. Forward-looking information and statements are made based upon numerous assumptions, including among others, that the proposed transaction will be completed, the results of planned exploration activities are as anticipated, the price of uranium, the cost of planned exploration activities, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment, supplies and governmental and other approvals required to conduct NexGen’s planned exploration activities will be available on reasonable terms and in a timely manner and that general business and economic conditions will not change in a material adverse manner. Although the assumptions made by the Company in providing forward looking information or making forward looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of NexGen to differ materially from any projections of results, performances and achievements of NexGen expressed or implied by such forward-looking information or statements, including, among others, negative operating cash flow and dependence on third party financing, uncertainty of the availability of additional financing, the risk that pending assay results will not confirm previously announced preliminary results, imprecision of mineral resource estimates, the appeal of alternate sources of energy and sustained low uranium prices, aboriginal title and consultation issues, exploration risks, reliance upon key management and other personnel, deficiencies in the Company’s title to its properties, uninsurable risks, failure to manage conflicts of interest, failure to obtain or maintain required permits and licenses, changes in laws, regulations and policy, competition for resources and financing, and other factors discussed or referred to in the Company’s Annual Information Form dated March 2, 2018 under “Risk Factors”.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by 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 forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
It’s December and we continue to see strong progress at Pumpkin Hollow. Both underground and surface works are proceeding according to schedule and, as you can see from the first photo below, the site is steadily transforming. For comparison, check out our October update. Below are some additional photos and comments on some of our recent activity.
East Main Shaft
We now have a 2-boom jumbo and rock bolter on site (both Epiroc) and an R1600 LHD (CAT). We have completed the 2850 shaft station, have sunk the shaft down to the 2770 shaft station level and are now developing the 2770 shaft station. This is an important station as it will house our material handling system. This system will be responsible for hoisting ore out of the mine and, during development, it will be our main haulage from the 2850 level via a drop-raise. This will allow us to handle the waste from our 2850 lateral development.
East-North Ventilation Shaft
We have completed the sub-collar (that was in progress during our last update) and have commenced pre-sink activity. The shaft has now been sunk 100ft down from the sub-collar. In the photos you’ll see an impressive 220-ton crane (in red) which has been facilitating our rapid progress on the East-North shaft work.
We completed the foundations for the winches and main hoist in November and have also installed the winches and hoist on those foundations. We are now working on the foundations for head frame and we expect delivery of the Galloway in the coming month.
Surface Works
Preliminary work for the surface facilities and processing plant continues to move forward briskly. We have completed the earth works for the low-grade/high-grade stockpile area along with the earth works for the processing plant. We have also made significant progress on the earth works for the support buildings and we are currently re-routing the 25kv power line to its final location.
Additional Information
For further information please visit the Nevada Copper corporate website (www.nevadacopper.com) and visit our Pumpkin Hollow virtual tour.
NEVADA COPPER CORP.
Further information call:
Rich Matthews
VP Marketing and Investor Relations
Nevada Copper Corp
rmatthews@nevadacopper.com
1 (877) 648-8266 – Work | (604) 355-7179 – Mobile www.nevadacopper.com
Dan Weir the Executive Chairman of DNI Metals sits down with Maurice Jackson of Proven and Probable to discuss a number of topics for current and prospective shareholders regarding environmental permit, Resource Estimate on the flagship Vohitsara, LOI on Alberta Black Shales Deposit, and a Financing Opportunity.
Progress Reported with Graphite, Vanadium Projects on Two Continents Contributed Opinion
Source: Maurice Jackson for Streetwise Reports (12/19/18)
Dan Weir, executive chairman of DNI Metals, speaks with Maurice Jackson of Proven and Probable about the progress his company has made with its graphite project in Madagascar, as well as developments with its Alberta project.
Maurice Jackson: Joining us for a conversation is Dan Weir, the executive chairman of DNI Metals Inc. (DNI:CSE; DMNKF:OTC), which is establishing itself to become one of the world’s leading graphite producers. Mr. Weir, welcome to the show, sir. Dan Weir: Hi, Maurice, and greetings from Madagascar. Maurice Jackson: Glad to have you back on the program. We brought you on today to provide us with an update on a number of important topics for current and prospective shareholders. But before we delve into today’s interview, for first time listeners, who is DNI Metals, and what is the thesis you’re attempting to prove? Dan Weir: DNI Metals is a public company. It’s been around for about 35 years. DNI had a number of different projects. It first started out as a nickel company. It used to be called Dumont Nickel Incorporated, and it was shortened to DNI Metals. And it had, at one point, a gold asset in Utah. We still own a royalty on that gold asset. And then the previous management was focusing on a very large polymetallic deposit up in Alberta, which I think we’ll talk about a little bit later. When I took over in late 2014, we decided to focus the company on graphite in Madagascar. Our projects in Madagascar are the company’s main focus, and that focus is to get our projects in Madagascar into production. Maurice Jackson: Speaking of Madagascar, in our last interview, you referenced your commitment to getting the environmental permit and a purposed timeline. What can you share with us regarding the environmental permit? Dan Weir: What I’ve tried to do over the last two months is put out press releases to the market and discuss how we’ve been moving forward with the environmental permits. In one of our press releases in October, we mentioned that we had terminated our previous team. We brought a whole new team in to complete the work. I’ve been spending a lot of time in Madagascar to make sure that that is all happening. And you can see from a lot of press releases we have been making great headway. Some of the documents weren’t filed properly with the government agency, the Office National pour l’Environnement Madagascar, also called the ONE. And we have those documents filed. We have to do two site visits, a technical site visit and then a public consultation visit.
On December 5 and 6 when I was here, we did the technical visits. They went very well. And in mid-January we will do the public consultations, three public consultations, one for the district and then one for Marofody and Vohitsara, respectively. Thereafter, DNI Metals will have completed everything to receive the environmental permit. We are very excited that we’ve been moving forward. So it’s been great, Maurice. Maurice Jackson: Speaking of the Vohitsara, can you provide us with an update on the resource estimate? Dan Weir: Yes. We have hired Micon, a company from Toronto. It is very well known around the world for its expertise in resource studies. In the first week in January, Micon will be coming to visit our flagship project, the Vohitsara in Madagascar, to conduct a site review. DNI Metals believes that we can have the main resource for the Vohitsara property completed by late January, early February. We are very excited about the timing because around the same time we should be receive the environmental permits, so very exciting times coming for DNI Metals shareholders. Maurice Jackson: Moving onto Canada, Dan, you referenced the Alberta Black Shells Deposit, which also a part of the DNI project portfolio. It’s been overshadowed with your projects in Madagascar. Tell us a little bit more about this deposit and why is the market is specifically excited about the deposit there? Dan Weir: We had put the project on hold. It was a really a non-core asset. Previous management spent over $6.7 million. There are six outcroppings or six mineralized zones that we know of stretching well over 30 to 50 kilometers right near the tar sands or the oil sands in northern Alberta in Canada. It’s what they call a polymetallic. So all sorts of different minerals are in the there, rare earths, uranium, cobalt, nickel, zinc. But what’s been really exciting lately is the fact that it has a lot of vanadium in it and cobalt and lithium. As the world moves forward with battery metals, those are key components, as well as the graphite being a key component of a lithium-ion battery.
So we’re very excited about all of that. We’ve had a number of people come to us who are interested in doing something with that project. Again, I want to emphasize this, that we’re focused on graphite. We will continue to focus on graphite. But we have done a great deal where a group is going to earn into our property in Alberta. It is going pay us a cash component and will spend a minimum of $1 million to earn into 50% of the project. At that point DNI will have 49% of the project, and we will have a carried interest to a full bankable feasibility study.
So, in essence, another group is going to manage the project. It will do all the work on the project. I will help, but really it won’t take up any of my time, and it allows me to focus on Madagascar and the graphite. But it allows DNI to have a 49% interest in a very big vanadium, cobalt, lithium, rare earth-type deposits. That has some potential. So we’re very excited. Again, we get a carried interest all the way to the bankable feasibility study. And at that point we can decide whether or not we want to put up the capital to build the processing plant or get diluted down to a 2% royalty. We’ll see at that point. Maurice Jackson: Dan, before we leave the deposit there, I want to discuss vanadium a little bit more in detail here. Most investors know very little about the metal. Can you share with us where the demand will be coming from regarding vanadium? Dan Weir: Some investors may not have heard about a vanadium redox battery. It’s very different from a lithium-ion battery. Vanadium redox tend to be used for very, very large storage of energy. So if you had a wind farm or if you had a solar farm and you wanted to store the energy, a vanadium redox battery would be a very good battery for that. It’s not a good battery to use in a car, a cell phone, or your laptop. That’s where a lithium-ion battery has its use. These are big stationary-type batteries. But what’s really driven the price in vanadium lately, and remember when we did the feasibility studies on the Alberta property, vanadium was at around $5.80. It’s now well over $22 a pound.
The primary reason for the price increase in vanadium is that China has just put in new construction laws where a higher percentage of rebar, which is used to strengthen concrete, has to have vanadium in it. That is for two reasons, strengthening the rebar, and helping in the corrosion factors of the rebar. Therefore demand is going through the roof for vanadium. Maurice Jackson: Switching gears. Dan, DNI will be conducting a financing. Can you share the details with us? Dan Weir: Yes. As DNI Metals completes our environmental licenses/permits, and as we move forward on the resource study, our ultimate goal is to complete those, we would do a much larger financing to build the pilot plant, buy the machinery needed. And by machinery, I mean the bulldozers and excavators and additional equipment. But in the meantime, you will see also from our press release, we’re negotiating with some of the locals to buy some of their land. It’ll actually likely be more of a 99-year lease, which we can renew for another 99 years. Again, we’re negotiating all of that. To have some money in the bank right now to be able to use what I’m negotiating will help us.
So it’s nice right now to have some money in the bank. It lets me continue my work, what I need to do here in Madagascar, and sets us up for the next financing. Hopefully in and around some time in February or March that’ll be the time when we want to do a much larger financing to build everything. So we decided to come up with a convertible debenture where investors who buy the debenture, if they hold on to the debenture for one year, there’s a one-year term on the debenture, we’ll pay them a 12% coupon. At that point you can convert the debenture into stock at 8 cents (CAD). You get a unit on the conversion, and all the details are in our press release. Or you can take the cash. Your choice at the end of one year. So this is really a short-term type loan to the company as we develop some of the things we need to do over the coming months. Maurice Jackson: Dan, to summarize what we’ve covered today, what is the next unanswered question for DNI Metals? When should we expect results, and what determines success? Dan Weir: As you’ve seen from a lot of our press releases recently, I have really tried to be open to the market and give exact details of what we’re doing and how we’re doing things for the environmental licenses, for the resource report, and now for potentially developing some of the Alberta projects. So there’s not a lot else out here right now that hasn’t been made public. We’re working our butts off to get things done in Madagascar. I’m staying on top of it and moving it all forward. Maurice Jackson: What did I forget to ask? Dan Weir: I don’t think you forgot to ask anything. Maurice. You’ve been to the property twice. You’ve seen how exciting it is. I’m really pushing to make sure that we get this into production and get there as soon as possible. That’s my mandate, and that’s what I’m doing. Maurice Jackson: Dan, for someone who wants to get more information regarding DNI Metals, please share the contact details. Dan Weir: The best thing to do is email me, because I will be going back and forth between Toronto and Madagascar. It’s DanWeir@DNIMetals.com and the website is www.DNIMetals.com. Maurice Jackson: And as a reminder, DNI Metals trades on the CSE: DNI. And on the OTC: DMNKF. DNI Metals is a sponsor of Proven and Probable, and we are proud shareholders for the virtues conveyed in today’s interview. And last but not least, please visit our website www.provenandprobable.com where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.
Dan Weir of DNI Metals, thank you for joining us today on Proven and Probable. Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.
1) Dan Weir: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: DNI Metals. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: DNI Metals.
2) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: DNI Metals. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: DNI Metals is a sponsor of Proven and Probable. Proven and Probable disclosures are listed below.
3) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: DNI Metals. Click here for important disclosures about sponsor fees.
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TORONTO, ONTARIO / ACCESSWIRE / December 18, 2018 / DNI Metals Inc. (DNI: CSE; DNMKF: OTC) (“DNI” or the “Company”)
DNI’s focus is Graphite in Madagascar, but due to the increase in certain battery metals pricing including the value of Vanadium, V2O5, from $5.89*per pound, in 2014, to over U$27.50 the increase of Cobalt, Co, from U$14.38* per pound, in 2013, to over U$25.06, the increase in Lithium, Li2CO3, from U$ 2.82* per pound to over U$30.00, DNI Metals Inc, is pleased to announce that a number of parties have shown renewed interest in its Black Shales Polymetallic deposit in Alberta.
Note: All the mineral prices have changed, the $Can/US exchange rate has changed, and input costs may have changed .*Prices as well used in DNI’s resource report dated August 27, 2013.
Dan Weir, CEO, commented, “I want to emphasize that DNI is focused on developing its Graphite deposits in Madagascar. The previous management team and board of DNI did an amazing job, developing the Alberta Black Shales deposits. Over $6.7 million was spent on developing the deposits. The new team and I were treating the Black shales as a non-core asset. It is great to see the renewed interest in the project, and the worldwide demand for Vanadium.”
Highlights of DNI’s Vanadium and Polymetallic Resource in Alberta.
Several studies on the resources and economic significance of the deposits have been completed and a summary of selected results is presented below. Further details can be found on SEDAR”
Vanadium – Buckton South- Inferred Resource – Lower Portion – Second White Speckled Shale Formation
Vanadium – Buckton – Inferred Resource – Lower Portion – in Second White Speckled Shale Formation
Six Mineralized zones
DNI’s Polymetallic Deposits – Battery and Electric car Metals
Letter of Intent
DNI has signed a Letter of Intent (“LOI”) granting a private company (“Privateco”) an option to earn up to a 51% interest in DNI’s Alberta Black Shales Deposit. The LOI is generally non- binding, except for matters related to, among others, exclusive dealing and confidentiality.
DNI will grant to Privateco the option to earn an initial 51% interest in the Black Shales Property as follows:
upon execution of the LOI, Privateco is paying ONE HUNDRED THOUSAND dollars (Cdn$100,000) to DNI;
on or before the date which is the earlier of 6 months from the date of the Definitive Agreement or 15 days after the date that Privateco completes an RTO/IPO transaction, Privateco would pay an additional ONE HUNDRED FIFTY THOUSAND dollars (Cdn$150,000) to DNI; and
by incurring exploration and development expenditures on the Property of at least ONE MILLION dollars (Cdn$1,000,000) on or before March 31, 2021.
Privateco is controlled by Jim Atkinson in trust and without personal liability for a corporation to be incorporated. This is an arm’s length transaction.
Dan Weir, CEO, commented, “Completing a deal with Privateco, will allow further development of its Vanadium / polymetallic assets, without sacrificing its Graphite Assets. We look forward to working with Privateco’ s professional team.”
DNI has also received interest from a First Nation group to purchase one claim of its eight claims of the Alberta properties and make the area into a provincial park. This could possibly include the area where DNI has its indicated resources, the Buckton zone.
Note: DNI is aware of six mineralization zones, 3 that have been drilled, and that the 3 stretch over 30 kms apart. The 6 form an even bigger area.
Black Shales – Vanadium
DNI Metals owns a Polymetallic black shales deposit in Alberta.
Mineral resources are hosted in two near-surface stacked black shale horizons which are mineralized with recoverable Mo-Ni-U-V-Zn-Co-Cu-Li-REEs-Y-Th-Sc and are partly exposed on surface. Six mineralized systems, or zones, have been identified on DNI’s Property in northeast Alberta.
Two zones, the Buckton and the Buckton South zones have inferred resources and the Buckton has in addition indicated resources.
Asphalt Mineralized Zone. Three holes were drilled over the Asphalt Mineralized Zone, in 2011. It is located approximately 30 kilometres to the south of the Buckton Mineralized Zone.
Buckton South – March 1, 2013 Technical Report
The Maiden Resource Estimate for the Buckton South Zone, SBH Property Northeast Alberta prepared by APEX Geoscience Ltd. classified an inferred resource consisting of 548 million short tons (497 million metric tonnes) of mineralized black shale extending over 3.3 square kilometres beneath less than 75m of overburden cover. This resource is hosted in the Labiche Formation and underlying Second White Speckled Shale Formation, which are two flat-lying Formations that are stacked to comprise a continuous thick zone of mineralized shale. The inferred resource is mineralized with recoverable Molybdenum (Mo), Nickel (Ni), Uranium (U), Vanadium (V), Zinc (Zn), Copper (Cu), Cobalt (Co), Lithium (Li), Scandium (Sc), Thorium (Th) and Rare Earth Elements Lanthanum (La), Cerium (Ce), Praseodymium (Pr), Neodymium (Nd), Samarium (Sm), Europium (Eu), Gadolinium (Gd), Terbium (Tb), Dysprosium (Dy) and Yttrium (Y). The Resource Study estimates that the maiden inferred resource is overlain by 122 million short tons (110 million metric tonnes) of glacial till overburden cover.
Buckton – September 9, 2013 Technical Report
The Updated and Expanded Resource Estimate for the Buckton Zone SBH Property Northeast Alberta, prepared by APEX Geoscience Ltd. expanded the inferred resource at the Buckton Zone from 3.5 billion short tons to 4.9 billion short tons, in addition to upgrading a portion of it to the indicated resource class by delineating a 300 million short ton indicated mineral resource. The inferred and indicated resources together extend over 21.9 square kilometres (approximately a 3kmx8km area), 20.4 square kilometres of which represents the aerial extent of the inferred resource.
Asphalt Mineralized Zone – Exploration Target
Three holes were drilled over the Asphalt Mineralized Zone*, located approximately 30 kilometres to the south of the Buckton Mineralized Zone*. A number of additional planned drill holes were deferred, including holes intended to upgrade a portion of the Asphalt Mineralized Zone* (previously named the Asphalt Potential Mineral Deposit*) into an inferred resource, and holes intended to verify projected extensions of the Zone* which is open in three directions.
As outlined in the SBH Technical Report, the Asphalt Potential Mineral Deposit* holds potential for hosting 109-132 million short tons of polymetallic mineralization extending over 4.5 square kilometers and is open in three directions. The Asphalt Potential Mineral Deposit* was recently renamed as the Asphalt Mineralized Zone* to harmonize nomenclature with Jun30/2011 amendments to NI-43-101. Although based on drilling and nearby outcrop exposures, the Asphalt Mineralized Zone*, as better outlined in the SBH Technical Report, is a target for further ongoing exploration, it is conceptual in nature as there has been insufficient drilling conducted over the Zone* to define a mineral resource, and it is uncertain whether further drilling will define a mineral resource over the Zone*.
DNI’s current drilling reinforces geological extrapolations which suggest good continuity of mineralization within the Asphalt Mineralized Zone*.
Details of the drilling completed over the Asphalt Mineralized Zone* (holes 11AS01-11AS03) are tabulated below, showing analytical results, as well as comparative grades from adjacent historic holes 7AS01 and 7AS02.
Hole
Depth
Zone Width** (m)
Weighted Average Grade (ppm) ***
Specific
#
(m)
From-To
Width
Mo
Ni
U
V
Zn
Cu
Co
Ag
Li
Gravity
11AS01
51.0
26.8-37.9
11.1
116
203
47
786
352
88
30
1.0
75
2.38
11AS02
106.5
95.5-106.5
11.0
65
137
30
682
281
89
23
0.9
85
2.48
11AS03
32.5
Hole Lost in overburden in bad ground @ 32.5m depth
7AS01
76.3
7.1-18.5
11.4
73
144
47
690
376
89
20
0.3
na
na
historic
7AS02
89.8
21.6-33.2
11.4
63
122
31
664
282
89
20
0.3
na
na
historic
Hole
Depth
Zone Width** (m)
Weighted Average Grade (lb/st) ***
#
(m)
From-To
Width
Mo
Ni
U
V
Zn
Cu
Co
Li
[MoO3]
[U3O8]
[V2O5]
11AS01
51.0
26.8-37.9
11.1
0.23
0.41
0.09
1.57
0.70
0.18
0.06
0.15
[0.35]
[0.11]
[2.80]
11AS02
106.5
95.5-106.5
11.0
0.13
0.27
0.06
1.36
0.56
0.18
0.05
0.17
[0.20]
[0.07]
[2.43]
11AS03
32.5
Hole Lost in overburden in bad ground @ 32.5m depth
7AS01
76.3
7.1-18.5
11.4
0.15
0.29
0.09
1.38
0.75
0.18
0.04
na
historic
[0.22]
[0.11]
[2.46]
7AS02
89.8
21.6-33.2
11.4
0.13
0.24
0.06
1.33
0.56
0.18
0.04
na
historic
[0.19]
[0.07]
[2.37]
Note: See notes attached to information tabulated above for the Buckton Mineralized Zone*.
The drilling over the Asphalt Mineralized Zone* serves to confirm historic drilling results. The results reiterate uniformity of grades between the Asphalt and Buckton Mineralized Zones* which are located some 30km apart, and continuity of bulk average grades over distances ranging 300m-760m between holes.
In addition, the recent drill results indicate that tonnages previously estimated for the Asphalt Mineralized Zone* in the SBH Technical Report, relying on historic information, are understated. While an estimated specific gravity of 2.1, per historic work records, was relied upon by the SBH Technical Report to estimate potential tonnages which might be hosted in the Asphalt Mineralized Zone*, specific gravity of the Speckled Shale as measured from the above drill core samples averages approximately 2.4 and, accordingly, revises potential tonnages estimated for the Asphalt Mineralized Zone* from 109-132 million short tons of polymetallic mineralization to 125-151 million short tons. The above specific gravity figures are consistent with results from surface sampling completed by DNI during the past two years.
NI 43-101 Disclosure
The information in this press release was taken from previous press releases and technical reports filed on Sedar between the years 2010-2014.
In 2013, the technical information had been prepared in accordance with Canadian regulatory requirements by, or under the supervision of, the following independent Qualified Persons: Mr. Eugene Puritch P.Eng. (per P&E Mining Consultants Inc.), Mr. Michael Dufresne P.Geol. (per APEX Geoscience Ltd.) and Mr. Bruce Cron P.Eng. (per Cron Metallurgical Ltd.) DNI’s previous Qualified Person in respect of its Alberta polymetallic black shale project is Mr. Shahé F.Sabag P.Geo., former President and CEO of DNI.
James Atkinson P.Geo, and Qualified person, has reviewed and approved the information contained in this press release. The reports prepared by the previous consultants were completed by competent, Qualified Persons and the present QP believes the information to be accurate.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that all or any part of the mineral resource reported herein will be converted into a mineral reserve. An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The metal recoveries reported represent preliminary mineral recovery testing results collated from the collective bench scale laboratory testwork completed by DNI to date and may not reflect actual process recoverability that might be achieved in a mineral production operation, all of which is the subject of ongoing studies.
This press release contains forward-looking statements, including statements that relate to, among other things, the following: (i) the geological characteristics of the projects; (ii) the potential to discover additional mineralization and to extend the area of mineralization; (iii) the potential to raise additional financing; and (iv) the potential to expand and upgrade the resource estimate of the projects. Forward-looking information is subject to the risks, uncertainties and other important factors that could cause the Company’s actual performance to differ materially from that expressed in or implied by such statements. Such factors include, but are not limited to volatility and sensitivity to market metal prices, impact of change in foreign exchange rates, interest rates, imprecision in resource estimates, imprecision in opinions on geology, environmental risks including increased regulatory burdens, unexpected geological conditions, adverse mining conditions, changes in government regulations and policies, including laws and policies; and failure to obtain necessary permits and approvals from government authorities, and other development and operating risks, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, “possible”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “objective”, “hope” and “continue” (or the negative thereof) and words and expressions of similar import. Although DNI believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company’s most recent annual and interim Management’s Discussion and Analysis under “Risk and Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory authorities. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.
Shaft 1’s continuing advance has intersected 29 metres of high-grade mineralization from underground mine development, beginning at a depth of 780 metres
Platreef’s long-term processed wastewater agreement finalized to supply most of the bulk water needed for the first phase of production
Platreef is positioned to become a major producer of palladium, which recently became more valuable than gold
Platreef’s Indicated Mineral Resources contain an estimated 26.8 million ounces of palladium, 25.6 million ounces of platinum, 4.5 million ounces of gold, and 1.8 million ounces of rhodium (a combined 58.7 million ounces of PGMs plus gold), plus 4.1 billion pounds of nickel and 2.1 billion pounds of copper, at a cut-off grade of 1 gram per tonne
Platreef’s Inferred Mineral Resources contain an additional 43.0 million ounces of palladium, 40.4 million ounces of platinum, 7.8 million ounces of gold, and 3.1 million ounces of rhodium (a combined 94.3 million ounces PGMs plus gold), plus 7.7 billion pounds of nickel and 4.1 billion pounds of copper, also at a cut-off grade of 1 gram per tonne
At the base-case cut-off grade of 2 grams per tonne, Indicated Mineral Resources contain an estimated 42.0 million ounces of PGMs plus gold, plus 2.4 billion pounds of nickel and 1.2 billion pounds of copper, with an additional 52.8 million ounces of PGMs plus gold, 3.4 billion pounds of nickel and 1.8 billion pounds of copper in Inferred Resources
Platreef’s T1 and T2 high-grade mineralized zones interpreted as much thicker versions of the high-grade mineralized reefs found on the Western and Eastern limbs of South Africa’s Bushveld Complex
Mokopane, South Africa–(Newsfile Corp. – December 18, 2018) – Ivanhoe Mines’ (TSX: IVN) (OTCQX: IVPAF) Co-Chairmen Robert Friedland and Yufeng “Miles” Sun, and Ivanplats’ Managing Director Dr. Patricia Makhesha, announced today that Platreef’s Shaft 1 has reached a depth of 850 metres below surface and development work has begun on the 850-metre station – the second of three horizontal mining access stations planned for Shaft 1.
The first mining access station has been constructed at the 750-metre level, following earlier development of a water-pumping station at the 450-metre level. The third mining access station will be developed at a mine-working depth of 950 metres. Shaft 1 is expected to reach its projected, final depth of approximately 980 metres below surface, complete with all four of the stations, in early 2020.
The Platreef mining team delivered the first high-grade mineralization from underground mine development to surface stockpiles for metallurgical sampling three months ago. The high-grade mineralization intersected in Shaft 1 is contained within two mineralized zones (T1 and T2) totalling 29 metres of the Turfspruit Cyclic Unit (TCU). A total of fifty grab samples from individual 3.2-metre-blast stockpiles yielded an average grab sample grade of 6.35 grams per tonne (g/t) platinum, palladium and rhodium plus gold (3PE+Au), ranging up to 9.6 g/t 3PE+Au, as well as significant quantities of nickel and copper.
The 29-metre mineralized intersection in Shaft 1 yielded approximately 3,500 tonnes of ore that will be used for bulk-scale metallurgical test work. Based on the estimated resource grade of the pilot hole for Shaft 1 (GT008), the 3,500 tonnes are expected to contain more than 400 ounces of platinum-group metals (PGMs).
Ivanhoe Mines indirectly owns 64% of the Platreef Project through its subsidiary, Ivanplats, and is directing all mine development work. The South African beneficiaries of the approved broad-based, black economic empowerment structure have a 26% stake in the Platreef Project. The remaining 10% is owned by a Japanese consortium of ITOCHU Corporation; Japan Oil, Gas and Metals National Corporation; and Japan Gas Corporation.
Photo: Stockpiles of Flatreef ore from the sinking of Shaft 1, with Shaft 1 headframe in the background.
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Long-term wastewater agreement finalized to supply most of the bulk water needed for the first phase of production at Platreef
Ivanplats, led by Dr. Makhesha, announced that it has finalized a long-term agreement with the Mogalakwena Local Municipality for the supply of local, treated wastewater to supply most of the bulk water needed for the first phase of production at the Platreef platinum-group metals, nickel, copper and gold mine now being constructed in South Africa.
Ivanplats signed a memorandum of agreement earlier this year with the Mogalakwena Local Municipality for the supply of a minimum of five million litres of treated water a day for 32 years, beginning in 2022, from the town of Mokopane’s new Masodi Treatment Works. Last week, the agreement was officially approved in a signing ceremony in Mokopane.
Ivanplats expects to begin receiving a small quantity of processed wastewater early next year after the Masodi plant has been commissioned. Further treatment will be conducted at the Platreef Mine’s on-site filtration plant to ensure compliance with Ivanplats’ quality standards. The initial supply will be used in Platreef’s ongoing underground mine development and surface infrastructure construction.
Ivanplats estimates that it will require approximately 7.5 million litres per day (Ml/day) of bulk water during the first-phase of steady-state production. A water-balance model developed for the mine calls for the bulk water for the first phase of production to consist of five Ml/day from the Masodi treatment plant, with the balance provided from ground water from local, licenced boreholes, and rainwater collected in storage ponds at the mine.
Photo: Platreef’s long-term wastewater agreement finalized between Dr. Patricia Makhesha, Ivanplats’ Managing Director (left), and Kenneth Maluleke, Mogalakwena Acting Municipality Manager.
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In July 2017, Ivanhoe issued an independent, definitive feasibility study (DFS) for Platreef covering the first phase of production at an initial mining rate of four million tonnes per annum (Mtpa). The DFS estimated that Platreef’s initial, average annual production ratewill be approximately 219,000 ounces of palladium, 214,000 ounces of platinum, 30,000 ounces of gold and 14,000 ounces of rhodium (combined 477,000 ounces of 3PE+Au), plus 21 million pounds of nickel and 13 million pounds of copper.
The Platreef DFS was based on the development of a large, mechanized, underground mine with an initial, four Mtpa concentrator and associated infrastructure. Platreef would rank at the bottom of the cash-cost curve, at an estimated US$351 per ounce of 3PE+Au produced, net of by-products and including sustaining capital costs, and US$326 per ounce before sustaining capital costs.
The thick Flatreef orebody at the Platreef Project is ideal for bulk-scale, mechanized mining. As underground development progresses, the mine plan calls for the addition of large, mechanized mining equipment, such as 14- and 17-tonne load-haul-dump machines and 50-tonne haul trucks to support the planned long-hole mining method.
The mineral resources used as the basis of the Platreef DFS were those amenable to underground selective mining. Detailed information about assay methods and data verification measures used to support the scientific and technical information is set out in the Platreef 2017 Feasibility Study NI 43-101 Technical Report dated September 2017, available under Technical Reports at www.ivanhoemines.com and on Ivanhoe Mines SEDAR profile at www.sedar.com.
Key features of the 2016 Platreef Mineral Resource estimate include:
Indicated Mineral Resources contain an estimated 41.9 million ounces of platinum, palladium, rhodium and gold with an additional 52.8 million ounces of platinum, palladium, rhodium and gold in Inferred Resources (using a cut-off grade of 2.0 g/t 3PE+Au).
Indicated Mineral Resources contain an estimated 2.44 billion pounds of nickel and 1.23 billion pounds of copper, with an additional 3.44 billion pounds of nickel and 1.78 billion pounds of copper in Inferred Mineral Resources (using a cut-off grade of 2.0 g/t 3PE+Au).
Indicated Mineral Resources totalling 346 million tonnes, at an average grade of 3.77 g/t 3PE+Au, 0.32% nickel and 0.16% copper, at a cut-off grade of 2.0 g/t 3PE+Au.
Inferred Mineral Resources totalling an additional 506 million tonnes, at a grade of 3.24 g/t 3PE+Au, 0.31% nickel and 0.16% copper, at a cut-off grade of 2.0 g/t 3PE+Au.
The 2016 Mineral Resource estimate was prepared by Ivanhoe Mines under the direction of Dr. Harry Parker, RM SME, of Wood Group (formerly Amec Foster Wheeler E&C Services Inc.). Dr. Parker and Timothy Kuhl RM SME, also of Wood Group, have independently confirmed the Mineral Resource estimate and are the Qualified Persons for the estimate, which has an effective date of April 22, 2016.
The platinum-to-palladium ratio at the Platreef Mine is approximately 1:1. Palladium and rhodium are used as catalysts to control exhaust emissions in gasoline-fuelled vehicles, while diesel vehicles mostly use platinum. Platinum also is used as the catalyst in zero-emission, hydrogen-powered, fuel-cell electric vehicles now being developed by leading, global automakers including Honda, Toyota, Hyundai, BMW, Mercedes-Benz and Hyundai.
A sustained palladium-supply deficit, coupled with robust demand from automakers, has seen palladium prices increase by approximately 50% during the past four months, making it more valuable than gold for the first time since 2002.
Chart: Palladium’s price increase since August 2018 (in blue) compared to gold (in white).
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Flatreef’s T1 and T2 mineralized zones are 29 metres thick at Shaft 1 intersection
The mineralized zones (reefs) at Ivanhoe’s Platreef Project are the thickest (Platreef’s T2MZ averages 24.7 metres at a 1 g/t 3PE+Au cut-off) among the known reefs in South Africa’s Bushveld Igneous Complex. Although substantially thicker on Ivanhoe’s Platreef Project, Flatreef’s exceptional T1 and T2 reefs have been correlated with the Bushveld Complex’s Bastard and Merensky reefs by Dr. Danie Grobler, Ivanplats’ Head of Exploration and Geology, and other Ivanplats geologists (Grobler et al., published in the international journal, Mineralium Deposita, 2018).
The Turfspruit Cyclic Unit (TCU), which hosts the majority of the Platreef’s selectively mineable Mineral Resources, has two mineralized zones that are laterally continuous across the Platreef Project. The T1 mineralized zone (T1MZ) occurs within cyclical magmatic units and feldspathic pyroxenite (ultramafic igneous rock) immediately below the Main Zone. The T2 mineralized zone (T2MZ) is hosted within a mineralized, PGM-enriched, very coarse-grained pegmatoidal pyroxenite distinct from the feldspathic pyroxenite above it and bound by a top chromite stringer.
The T2MZ occurs at a stratigraphic position similar to the world-renowned Merensky Reef. The T2MZ can be subdivided into an upper pegmatoidal orthopyroxenite, referred to as the T2 Upper, and a lower, less continuous pegmatoidal harzburgite, referred to as the T2 Lower. Recognition of the TCU and the pegmatoidal pyroxenite in 2012 was a key interpretive breakthrough for the Platreef Project.
Shaft 1 intersected the TCU below the Main Zone of the Bushveld Complex in September 2018. The upper T1 mineralized reef was intersected at a depth of 780.11 metres below the shaft bank (Figure 1). Shaft sinking proceeded to intersect the main T2 mineralized reef at a depth of 798 metres, beneath the upper chromitite stringer. The T2 mineralization gradually decreases over a vertical interval of 11 metres to the footwall norite contact at a depth of 809 metres. The total TCU width intersected within the shaft is 28.9 metres.
Photo:Dr. Danie Grobler, Ivanplats’ Head of Exploration and Geology(left), Jan Mapeka, Ivanplats Geologist (centre), and Gerick Mouton, Ivanplats’ Vice President and Project Director (right), at the intersection of the T1 mineralized reef in Shaft 1 at a depth of approximately 780 metres.
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Figure 1: Schematic section of the Platreef Mine, showing Flatreef’s T1 and T2 thick, high-grade mineralized zones (red and dark orange),underground development work completed to date in shafts 1 and 2 (white), and planned development work (gray).
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Figure 2: Flatreef cross section showing T1 and T2 mineralized zones (T1MZ and T2MZ)and the significant top loading of high-grade PGMs mineralization in the T2 mineralized zone.
Photo:Members of the Platreef Project team and its South African sinking contractor, Aveng Mining, in Shaft 1 at its intersection of the 29-metre Flatreef Deposit in September.
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Photo: Platreef’s underground mine development team includes three members from local communities (from left): Nkone Madubana, Learner Sinker; Katlego Nkwana, Learner Sinker; and Caroline Dzivhani, Geologist – who recently became fully certified underground miners.
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The 2016 consolidated Mineral Resources for the Platreef Project are shown in Table 1 (2.0 g/t 3PE+Au base case highlighted; other cases are included to show the sensitivity of the Mineral Resources to changes in cut-off grades).
Table 1: Platreef Mineral Resource – all mineralized zones (2.0 g/t base case).
Indicated Mineral Resources – Tonnage and Grades
Cut-off Grade (3PE+Au)
Mt
Pt (g/t)
Pd (g/t)
Au (g/t)
Rh (g/t)
3PE+Au (g/t)
Cu (%)
Ni (%)
3.0 g/t
204
2.11
2.11
0.34
0.14
4.7
0.18
0.35
2.0 g/t
346
1.68
1.70
0.28
0.11
3.77
0.16
0.32
1.0 g/t
716
1.11
1.16
0.19
0.08
2.55
0.13
0.26
Indicated Mineral Resources – Contained Metal
Cut-off Grade (3PE+Au)
Pt
(Moz)
Pd
(Moz)
Au
(Moz)
Rh
(Moz)
3PE+Au (Moz)
Cu
(Mlbs)
Ni
(Mlbs)
3.0 g/t
13.86
13.86
2.23
0.92
30.86
800
1 597
2.0 g/t
18.66
18.94
3.12
1.23
41.95
1 226
2 438
1.0 g/t
25.63
26.81
4.49
1.82
58.75
2 076
4 108
Inferred Mineral Resources – Tonnage and Grades
Cut-off Grade (3PE+Au)
Mt
Pt (g/t)
Pd (g/t)
Au (g/t)
Rh (g/t)
3PE+Au
(g/t)
Cu (%)
Ni (%)
3.0 g/t
225
1.91
1.93
0.32
0.13
4.29
0.17
0.35
2.0 g/t
506
1.42
1.46
0.26
0.10
3.24
0.16
0.31
1.0 g/t
1431
0.88
0.94
0.17
0.07
2.05
0.13
0.25
Inferred Mineral Resources – Contained Metal
Cut-off Grade (3PE+Au)
Pt
(Moz)
Pd
(Moz)
Au
(Moz)
Rh
(Moz)
3PE+Au
(Moz)
Cu
(Mlbs)
Ni
(Mlbs)
3.0 g/t
13.78
13.96
2.33
0.94
31.01
865
1, 736
2.0 g/t
23.17
23.78
4.26
1.56
52.77
1,775
3, 440
1.0 g/t
40.38
43.01
7.81
3.06
94.27
4,129
7,759
Mineral Resources have an effective date of April 22, 2016. The Qualified Persons for the estimate are Dr. Harry Parker, RM SME, and Timothy Kuhl, RM SME, who are employees of Wood Group (formerly Amec Foster Wheeler E&C Services Inc.) and independent of Ivanhoe. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
The 2 g/t 3PE+Au cut-off is considered the base case estimate and is highlighted. The rows are not additive.
Mineral Resources are reported on a 100% basis. Mineral Resources are stated from approximately -200 m to 650 m elevation (from 500 m to 1,350 m depth). Indicated Mineral Resources are drilled on approximately 100 x 100 m spacing (locally 150 m spacing); Inferred Mineral Resources are drilled on 400 x 400 m (locally to 400 x 200 m and 200 x 200 m) spacing.
Mineral Resources have been estimated on an externally undiluted basis and without consideration for mining recovery. Dilution and mining recoveries will vary with the geometry (dip, thickness, faulting and or irregularities in contacts) of the mineralization and the eventual mining method used.
Reasonable prospects for eventual economic extraction were determined using the following assumptions. Assumed commodity prices are Pt: $1,600/oz, Pd: $815/oz, Au: $1,300/oz, Rh: $1,500/oz, Cu: $3.00/lb and Ni: $8.90/lb. It has been assumed that payable metals would be 82% from a smelter/refinery and that mining costs (average $34.27/t) and process, G&A, and concentrate transport costs (average $15.83/t of mill feed for a 4 Mtpa operation) would be covered. The processing recoveries vary with block grade but typically would be 80%-90% for Pt, Pd and Rh; 70-90% for Au, 60-90% for Cu, and 65-75% for Ni.
3PE+Au = Pt + Pd + Rh + Au.
Totals may not sum due to rounding.
Grab sample assay results for Shaft 1 TCU intersection
Mineralized material from the Flatreef Deposit was extracted during the sinking of Shaft 1 through the TCU mineralized zones and then stockpiled on surface for individual 3.2-metre blasts. A total of 50 grab samples were collected for the T1 and T2 reefs, at surveyed shaft depths ranging from 780.11 to 808.9 metres.
The individual stockpile assay grades from the T1 feldspathic pyroxenite zone vary from 2.47 to 9.65 g/t 4E (platinum, palladium, rhodium and gold), with significant nickel and copper. A composite of individual grab samples for the different T1 stockpiles yielded an average grade of 6.04 g/t 4E and 0.40% nickel plus 0.19% copper (Table 2).
The T2 pegmatoidal pyroxenite composite grab sample assay grades are 6.72 g/t 4E,0.50% nickel and 0.24% copper. The average grade of all of the stockpile grab samples for the T1 and T2 mineralized zones is 6.35 g/t 4E, 0.45% nickel and 0.21% copper (Table 2).
The grab sample results reported above and listed in Table 2 are included for indicative purposes only as they were not subject to Ivanhoe’s normal rigorous internal QA/QC procedures applied to diamond drilling for Mineral Resources estimation. No standards, blanks or duplicates were included in the sample submissions, although internal QC was undertaken by Set Point laboratories (a division of Torre Analytical Services) in Mokopane, South Africa. The sampling methods employed to collect the grab samples, while thorough, are not considered adequate to produce an unbiased grade estimate of either the individual stockpiles or the shaft intersection as a whole. There also is considerable uncertainty as to the amount of cross contamination of each stockpile due to the degree of re-handling of material from shaft bottom to final stockpile position.
Platreef’s shafts 1 and 2 are located in an area of the project’s Indicated Resources that has lower grade and thickness than the adjoining mining areas; it will form part of the shaft pillar − a solid block of rock left around the shafts to protect the shafts and the surface buildings.
Figure 3 below is a grade-thickness plot (3PGE grade [g/t] multiplied by the thickness [m], which gives a metre-grams-per-tonne [mg/t]) of the Platreef Indicated Resources, showing the position of Shaft 1 (identified by the black star in the centre of Figure 3). The blue colours represent the lowest grade thickness, which are clustered around the yellow star marking the location of Shaft 1.
Ivanhoe’s initial mining plan at Platreef will focus on the thick, high-grade Indicated Resources (identified by the brown, orange and red zones) in close proximity to shafts 1 and 2. Drill intercepts in the thick, high-grade zones include hole TMT006, which intersected 90.64 metres (297 feet) with an average grade of 4.51 g/t 4E, plus 0.37% nickel and 0.20% copper. TMT006 was drilled approximately 360 metres south of Shaft 1.
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Figure 3: Grade–thickness plot of the T2 mineralized zone surrounding Shaft 1(yellow star).
Geology and mineralogy of the Shaft 1 Flatreef intersection
The dominant sulphide species in the T1MZ and T2MZ are represented by pentlandite (a nickel-rich sulphide mineral) and chalcopyrite (a copper-rich sulphide mineral), with lesser amounts of pyrrhotite and pyrite (iron sulphide minerals) in both reefs. Sulphide abundance is variable, but visually estimated in the shaft at an average of 5% for the T1MZ and up to 10% in the T2U, with large composite blebs (bubble-like inclusions of one mineral within a larger mineral) very common.
Photo: T1 mineralization within weakly-altered (chloritized) feldspathic pyroxenite at a depth of 784 metres. Sulphide mineralization is pentlandite (nickel sulphide) dominant, with lesser chalcopyrite (copper sulphide), and occurs as interstitial, disseminated to net-textured in the specimen shown.
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Photo: The T2 (Merensky) pegmatoidal orthopyroxenite, with large composite sulphide blebs consisting of pentlandite(nickel sulphide)-chalcopyrite (nickel sulphide)-pyrrhotite(iron sulphide).
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In September 2015, Ivanhoe Mines, Laurentian University (Sudbury, Canada) and the University of Limpopo (Turfloop, South Africa) forged an educational partnership. The principal goal was to develop and equip the University of Limpopo’s geology department to become a centre of excellence in geosciences. Since then, several Limpopo University students commenced postgraduate MSc and PhD studies at Laurentian University. Several of these studies are focused on the Platreef Project.
In April 2018, Ivanhoe geologists, together with Professor Wolfgang Maier, of Cardiff University, published a scientific paper detailing the first stratigraphic system for Ivanhoe’s Flatreef PGE deposit. The paper, titled “Litho- and chemostratigraphy of the Flatreef PGE deposit, northern Bushveld Complex”, was published in the prestigious, international, scientific journal Mineralium Deposita. The paper documents the down-dip and along-strike litho- and chemostratigraphy of the Flatreef Discovery, and its footwall and hanging-wall rocks. Based on stratigraphic, lithological and compositional comparisons to the layered rocks in the western Bushveld Complex, the layered sequence of the Flatreef Discovery, with its chromite-bearing footwall rocks, is unequivocally correlated with the interval between the UG2 chromitite, the Merensky and the Bastard Reef.
Shaft 1’s 750-metre, 850-metre and 950-metre stations will provide lateral underground mining access to the Flatreef orebody
The 750-metre and 850-metres stations on Shaft 1 will provide initial, underground mining access to the high-grade orebody, enabling lateral mine development to proceed during the construction of Shaft 2, which will become the mine’s main production shaft. As shaft-sinking advances, a third shaft station will be developed at a mine-working depth of 950 metres. The mining zones in the current Platreef Mine plan occur at depths ranging from approximately 700 metres to 1,200 metres below surface.
Shaft 1’s 750-metre station also will allow access for the first raise-bore shaft, which will have an internal diameter of six metres, to provide ventilation to the underground workings during the mine’s ramp-up phase.
Photo: Miners on the Shaft 1’s 750-metre level. The 750-metre and 850-metre stations will provide initial, underground access to the high-grade orebody.
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Excavation complete at Shaft 2 surface box cut; construction of concrete hitch (foundation) now underway
Excavation of the Shaft 2 box cut to a depth of approximately 29 metres below surface has been completed and construction now is underway of the concrete hitch (foundation). The hitch will provide the foundation for the 103-metre-tall concrete headgear (headframe) that will house the Shaft 2’s permanent hoisting facilities and support the shaft collar.
Shaft 2, to be located approximately 100 metres northeast of Shaft 1, will have an internal diameter of 10 metres, will be lined with concrete and sunk to a planned, final depth of 1,104 metres below surface. It will be equipped with two 40-tonne rock-hoisting skips with a capacity to hoist a total of six million tonnes of ore per year – the single largest hoisting capacity at any mine in Africa. Headgear for the permanent hoisting facility was designed by South Africa-based Murray & Roberts Cementation.
Photo: Platreef’s Shaft 2 box cut (now completed to a depth of 29 metres)alongside Shaft 1 headframe. Constructionof the concrete hitch (foundation) for Shaft 2 now is underway.
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Development focused on construction of a highly-mechanized underground mine
The Platreef Project is located on the Northern Limb of the Bushveld Complex, adjacent to Anglo Platinum’s Mogalakwena Mine.
The Platreef Project, which contains the Flatreef Deposit, is a tier-one discovery by Ivanhoe Mines geologists. Based on the findings of the July 2017 independent DFS, Ivanhoe plans to develop the Platreef Mine as a major underground mining operation in three phases to achieve: 1) An initial rate of four million tonnes per annum (Mtpa) to establish an operating platform to support future expansions; 2) a doubling of production to eight Mtpa; and 3) expansion to a steady-state 12 Mtpa.
Mining zones in the current Platreef mine plan occur at depths ranging from approximately 700 metres to 1,200 metres below surface. Primary access to the mine will be by way of a 1,104-metre-deep, 10-metre-diameter production shaft (Shaft 2). Secondary access to the mine will be via a 980-metre-deep, 7.25-metre-diameter ventilation shaft (Shaft 1), which is under construction. During mine production, both shafts also will serve as ventilation intakes. Three additional ventilation exhaust raises (Ventilation Raise 1, 2, and 3) are planned to achieve steady-state production.
Mining will be performed using highly productive mechanized methods, including long-hole stoping and drift-and-fill. Each method will utilize cemented backfill for maximum ore extraction.
Table 2:Compositesof grab sample assay results for individual blast stockpiles.
Reef type
Depth
From
Depth
To
4E g/t
Au g/t
Pt g/t
Pd g/t
Rh g/t
Cu %
Ni %
T1
780.0
783.2
2.47
0.43
1.24
0.77
0.07
0.15
0.32
T1
783.2
785.1
3.85
0.49
1.93
1.35
0.09
0.17
0.33
T1
785.1
788.7
8.32
0.67
4.23
3.23
0.19
0.20
0.43
T1
788.7
791.7
9.65
1.14
4.74
3.71
0.13
0.34
0.61
T1
791.7
795.7
5.48
0.48
3.03
1.87
0.11
0.16
0.36
T1
795.7
798.7
6.51
0.36
3.74
2.29
0.13
0.12
0.34
18.7
6.04
0.59
3.15
2.20
0.12
0.19
0.40
T2
798.7
800.4
8.43
0.40
4.34
3.44
0.25
0.27
0.55
T2
800.4
801.3
5.68
0.33
2.72
2.46
0.17
0.22
0.46
T2
801.3
802.2
5.95
0.31
2.92
2.57
0.16
0.21
0.44
T2
802.2
805.6
7.59
0.42
3.78
3.21
0.18
0.26
0.53
T2
805.6
808.9
5.95
0.34
2.78
2.68
0.16
0.26
0.54
10.2
6.72
0.36
3.31
2.87
0.18
0.24
0.50
T1 + T2
28.9
6.35
0.49
3.22
2.51
0.15
0.21
0.45
Qualified person
The scientific and technical information in this news release has been reviewed and approved by Stephen Torr, P.Geo., Ivanhoe Mines’ Vice President, Project Geology and Evaluation, a Qualified Person under the terms of National Instrument (NI) 43-101. Mr. Torr is not independent of Ivanhoe Mines. Mr. Torr has verified the technical data disclosed in this news release.
Detailed information about assay methods and data verification measures used to support the scientific and technical information is set out in the Platreef 2017 Feasibility Study NI 43-101 Technical Report dated September 2017, available under Technical Reports at www.ivanhoemines.com and on Ivanhoe Mines’ SEDAR profile at www.sedar.com.
About Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa: the development of new mines at the Kamoa-Kakula copper discovery in the Democratic Republic of Congo (DRC) and the Platreef palladium-platinum-nickel-copper-gold discovery in South Africa; and the extensive redevelopment and upgrading of the historic Kipushi zinc-copper-germanium-silver mine, also in the DRC.
Information contacts
Investors Bill Trenaman +1.604.331.9834
Media North America: Bob Williamson +1.604.512.4856
South Africa: Jeremy Michaels +27.82.772.1122
Forward-looking statements
Certain statements in this news release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results , performance or achievements of the company, the Platreef Project, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the company’s current expectations regarding future events, performance and results, and speak only as of the date of this news release.
The forward-looking statements and forward-looking information in this news release include without limitation, (i) statements regarding the 29-metre intersection of the Flatreef Deposit at Shaft 1 is expected to contain more than 400 ounces of platinum-group metals (PGMs); (ii) statements regarding Ivanplats expects to begin receiving a small quantity of grey water from the Masodi water treatment plant early next year; (iii) statements regarding the expectation that Shaft 1 will reach its projected, final depth of 980 metres below surface, complete with the stations, in 2020; (iv) statements regarding Ivanhoe’s plans to develop the Platreef Mine as a major underground mining operation in three phases to achieve: 1) An initial rate of four million tonnes per annum (Mtpa) to establish an operating platform to support future expansions; 2) a doubling of production to eight Mtpa; and 3) expansion to a steady-state 12 Mtpa; and (v) statements regarding Platreef would rank at the bottom of the cash-cost curve, at an estimated US$351 per ounce of 3PE+Au produced, net of by-products and including sustaining capital costs, and US$326 per ounce before sustaining capital costs.
In addition, all of the results of the Platreef DFS constitute forward-looking statements and forward-looking information. The forward-looking statements include metal price assumptions, cash flow forecasts, projected capital and operating costs, metal recoveries, mine life and production rates, and the financial results of the Platreef DFS.
Readers are cautioned that actual results may vary from those presented.
All such forward-looking information and statements are based on certain assumptions and analyses made by Ivanhoe Mines’ management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believe are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure, industrial accidents or machinery failure (including of shaft sinking equipment), or delays in the development of infrastructure; and the failure of exploration programs or other studies to deliver anticipated results or results that would justify and support continued studies, development or operations. Other important factors that could cause actual results to differ from these forward-looking statements also include those described under the heading “Risk Factors” in the company’s most recently filed MD&A, as well as in the most recent Annual Information Form filed by Ivanhoe Mines. Readers are cautioned not to place undue reliance on forward-looking information or statements. Certain of the factors and assumptions used to develop the forward-looking information and statements, and certain of the risks that could cause the actual results to differ materially are presented in the “Platreef 2017 Feasibility Study, September 2017” available on SEDAR at www.sedar.comand on the Ivanhoe Mines website at www.ivanhoemines.com.
Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
TORONTO , Dec. 18, 2018 /CNW/ – Denison Mines Corp. (“Denison” or the “Company”) (DML: TSX, DNN: NYSE American) is pleased to report that the Company’s Board of Directors and the Wheeler River Joint Venture (“WRJV”) have approved the advancement of the Wheeler River project, following a detailed assessment of the strong economic results produced by the recently filed Pre-Feasibility Study (“PFS”) prepared for the project in accordance with NI 43-101 (see news release dated October 30, 2018 ). In support of the decision to advance the Wheeler River project, the WRJV has approved a $10.3 million budget for 2019 (100% basis), which is highlighted by plans to initiate the Environmental Assessment (“EA”) process as well as engineering studies and related programs required to advance the high-grade Phoenix deposit as an in-situ recovery (“ISR”) mining operation. Denison’s share of the 2019 budget for Wheeler River is $9.3 million , which reflects Denison’s 90% ownership interest in the project (see news release dated October 29, 2018 ). View PDF version.
Highlights from Wheeler River 2019 Budget
Initiation of Environmental Assessment process: The submission of a Project Description (“PD”), to Federal and Provincial Regulatory Authorities is planned for early 2019, which is expected to initiate a multi-year EA, consultation, and permitting processes for the project.
Commencement of ISR wellfield tests: Field tests involving the drilling of ISR wells into the Phoenix deposit will be designed to assess permeability throughout the deposit by completing pump and other hydraulic tests within the orezone. The drilling of ISR wells will also allow for the collection of additional groundwater and ore samples, as well as provide assistance in refining the estimated cost of wellfield development.
Initiation of metallurgical ISR pilot plant testing: Extensive laboratory studies replicating the ISR flowsheet are planned to test and optimize the mineral processing aspects of the Phoenix operation. Studies are expected to include the assessment of lixiviant chemistry and performance under a variety of permeability and grade conditions.
Discovery focused exploration program: Following years of delineation drilling for the Phoenix and Gryphon deposits, planned exploration activities in 2019 are designed to evaluate high priority regional target areas by focusing on initial testing of targets at the sub- Athabasca unconformity – which could lead to the discovery of further uranium deposits that may be amenable to ISR mining.
David Cates , President and CEO of Denison, commented “With the potential for a Phoenix ISR operation to have the industry’s lowest operating cost per pound of U3O8, as outlined in the Wheeler River PFS, the Board of Directors unanimously approved the advancement of the project and the 2019 budget. The initiation of the EA process, as well as engineering and field studies designed to ultimately support a feasibility study, illustrates the Company’s commitment to achieving the project development timeline outlined in the PFS and claiming the ‘pole-position’ amongst undeveloped uranium projects in the Athabasca Basin region. With plans for 2019 including a discovery-oriented exploration program and various engineering programs designed to de-risk the mine plan for the Phoenix ISR operation, we have the potential for several meaningful catalysts to emerge during the year.”
A location map of the Wheeler River project is provided in Figure 1, showing existing and proposed infrastructure. Figure 2 shows the location of the high priority regional target areas planned for exploration drill testing in 2019.
View photos
Figure 1: Location map of the Wheeler River project, showing existing and proposed infrastructure (CNW Group/Denison Mines Corp.)
Figure 2: Location of the high priority regional target areas planned for exploration drill testing in 2019, shown on the Wheeler River basement geology map. (CNW Group/Denison Mines Corp.)
The PFS considers the potential economic merit of co-developing the Phoenix and Gryphon deposits. The high-grade Phoenix deposit is designed as an ISR mining operation, with associated processing to a finished product occurring at a plant to be built on site at Wheeler River. Based on the PFS plan, first production from Phoenix is expected in 2024, with the development of the Gryphon deposit to follow with first production from Gryphon projected for 2030. The Phoenix operation is estimated to have a base case pre-tax Net Present Value (“NPV”) of $930.4 million (at 8% discount rate) representing the large majority of the project’s overall estimated pre-tax NPV(8%) of $1.31 billion – which includes the self-funding development of the Gryphon operation from cash-flows generated by the Phoenix operation.
The novel use of the ISR mining method at Phoenix pairs the world’s lowest cost uranium mining method with the world’s highest grade undeveloped uranium deposit ( Phoenix ) – in what could prove to be one of the world’s (1) lowest cost and (2) most environmentally friendly and responsible uranium mining operations.
Industry leading operating costs and comparatively low initial capex with ISR for Phoenix
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 (100%)
Base case pre-tax IRR(2)
43.3%
Base case pre-tax NPV8%(2)
$930.4 million (100%)
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)
For further details on mineral reserves refer to the NI 43-101 Technical Report on Wheeler River titled “Pre-feasibility Study for the
Wheeler River Uranium Project, Saskatchewan, Canada” dated October 30, 2018 available on Denison’s website or on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml
(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
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 lixiviant 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 federal and provincial representatives and stakeholder communities, to date, has been encouraging regarding the use of ISR mining.
Initiation of Environmental Assessment process
The PFS process identified the EA as a key element of the project’s critical path. The PFS estimated a 3-4 year timeline to receive approvals under the existing regulations of the Canadian Environmental Assessment Act (“CEAA 2012”), allowing for construction to commence in 2022 with first production planned by 2024.
After careful consideration of the risks and opportunities associated with permitting and concurrent advancement of project engineering activities, the Company has decided to submit a PD and initiate the EA process in early 2019 for the Phoenix ISR operation, and to bring the Gryphon operation forward, at a later date, as required to achieve the PFS plan of Gryphon first production by 2030. This is expected to simplify the EA and permitting process for the Phoenix operation and reduce the capital required to advance the project to a definitive development decision.
EA related expenditures planned for 2019 are estimated to be $2.5 million (100% basis) and, in addition to advancing the actual EA process, will include the continuation and expansion of the collection of certain baseline environmental data and the continuation of stakeholder consultation efforts.
Commencement of ISR wellfield tests
Additional field and laboratory work is needed to increase confidence and reduce risk in the ISR application at Phoenix . While preliminary field data supports the use of ISR, the ability to move fluids through the ore zone is an important technical risk that requires additional evaluation ahead of the initiation of a formal Feasibility Study (“FS”).
ISR field testing planned for 2019 is expected to include the installation of approximately 15 to 20 ISR wells into the Phoenix orebody, which is expected to provide a representative test of the various ore domains associated with Phoenix and the expected conditions in actual ISR operations. The field test is expected to have the following key objectives:
Confirm the ability to pump fluids through the various domains of the orebody and quantify volumes, pressures and other conditions required within the ore zones and surrounding host rock;
Confirm the ability, costs and schedule to drill larger diameter (8 inch) boreholes and set impermeable casings within the ground surrounding Phoenix ;
Confirm baseline water conditions in, and surrounding, the deposit for the design of water treatment during operations, closure plans and the completion of expected environmental assessments;
Obtain additional representative ore samples from core drilling to facilitate extensive ISR metallurgical testing; and
Obtain surface geotechnical data of soils for foundation designs.
Expenditures related to the field testing planned for 2019 are estimated to be $2.4 million (100% basis).
Initiation of metallurgical ISR pilot plant testing
The PFS results are based on metallurgical test work which was focused on proving the applicability of ISR mining (via column test) and leachability (via conventional leach tests) for the development of the Phoenix operation. As the project advances through the EA process and towards the initiation of a FS, additional metallurgical test work is required to both test and optimize the metallurgical processing elements of the Phoenix operation. A customized laboratory test program is expected to be developed to properly achieve the desired metallurgical test objectives – which are likely to include the following:
Assess the performance of different lixiviants in a variety of permeability and grade conditions;
Evaluate the potential for build-up of contaminants in the lixiviant;
Evaluate opportunities to recover rare earth metals as a by-product;
Increase confidence in the concentration of the lixiviant for the process plant design; and
Improve confidence in ground restoration abilities and cost estimates.
A laboratory scale pilot plant is planned to run over a one-year period, starting during the second half of 2019, with approximately $0.5 million (100% basis) budgeted for the setup and initial operation of the pilot plant in 2019.
Other project development activities
A further approximately $1.7 million (100% basis) is budgeted for project development / evaluation related activities in 2019, including the completion of certain third-party review studies, additional engineering trade-off studies related to the proposed Gryphon operation, program management costs, and operator fees to the WRJV.
The 2019 program is part of a multi-year project development plan that calls for the completion of a FS by the end of 2020 and receipt of final environmental and permitting approvals in 2021 or 2022 – which is expected to position Denison to make a definitive development decision on the project. Future activities in 2020 and beyond may include:
Drilling of pilot / test freeze holes to increase confidence in costs associated with establishing the freeze wall surrounding the Phoenix deposit;
Completion of condemnation drilling and mineral resource updates at Phoenix to ensure potentially economic mineral resources are encapsulated within the freeze wall perimeter; and
Initiation of a formal FS in accordance with NI 43-101.
Discovery focused exploration program
The 2019 budget also calls for a $3.2 million (100% basis) discovery focused exploration program at Wheeler River. The program consists exclusively of diamond drilling, including approximately 13,500 metres in 23 planned drill holes.
Following the completion of the PFS and given the highly encouraging results from the proposed Phoenix ISR operation, the exploration drilling program will be focused on initial testing of targets at the sub- Athabasca unconformity, with the potential to discover additional ISR amenable uranium deposits. Potential for basement hosted uranium mineralization will not be ignored where opportunities also exist to evaluate prospective basement targets.
High priority regional target areas planned for testing in 2019 include K West, M Zone, K South, Gryphon South, Q South (East), and O Zone, each of which is shown in Figure 2.
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 ( Canada ) Exploration Company Limited (10%).
A PFS was completed, considering the potential economic merit of co-developing the high-grade Phoenix and Gryphon 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 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.
Further details regarding the Wheeler River project, including 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 NI 43-101 Technical Report for the Wheeler River project titled “Pre-feasibility Study for the Wheeler River Uranium Project, Saskatchewan, Canada ” dated October 30, 2018 with an effective date of September 24 , 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.
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 in its exploration activities, 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 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 65.92% interest in the J Zone and Huskie deposits 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 Athabasca Basin, 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.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources and Probable Mineral Reserves: This news release may use the terms ‘measured’, ‘indicated’ and ‘inferred’ mineral resources. United States investors are advised that while such terms have been prepared in accordance with the definition standards on mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian National Instrument 43-101 Mineral Disclosure Standards (“NI 43-101”) and are recognized and required by Canadian regulations, the United States Securities and Exchange Commission (“SEC”) 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. The estimates of mineral reserves in this press release have been prepared in accordance with 43-101. The definition of probable mineral reserves used in NI 43-101 differs from the definition used by the SEC in the SEC’s Industry Guide 7. Under the requirements of the SEC, mineralization may not be classified as a “reserve” unless the determination has been made, pursuant to a “final” or “bankable” feasibility study that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Accordingly, Denison’s probable mineral reserves disclosure may not be comparable to information from U.S. companies subject to the reporting and disclosure requirements of the SEC.
TULSA, Okla., Dec. 17, 2018 (GLOBE NEWSWIRE) — Jericho Oil Corporation (“Jericho”) (TSX-V: JCO; OTC PINK: JROOF) is pleased to announce that the lender under its USD$30 million Senior Secured Revolving Credit Facility (the “Facility”), East West Bancorp, has reaffirmed its borrowing base at $7.5mm following the Company’s regularly scheduled semi-annual redetermination process. There were no other material changes to the terms of the Facility resulting from this borrowing base redetermination.
The Company also reports that it has opportunistically restructured its commodity hedge positions to eliminate upside caps on its realized price for crude oil, in addition to raising the floor which protects the Company’s realized price to the downside.
Brian Williamson, CEO of Jericho Oil, stated, “We are encouraged by the outcome of our recent redetermination process, which we believe to reflect the quality of our Mid-Continent position and the economics associated with our continued investment,” adding, “we appreciate the support of our lending bank and their commitment to partner with us as we continue to add to our proved reserves base and execute on our growth strategy throughout 2019.” About Jericho Oil Corporation
Jericho Oil (www.jerichooil.com) is focused on domestic, liquids-rich unconventional resource plays, located primarily in the Anadarko basin STACK Play of Oklahoma. Jericho’s primary business objective is driving long-term shareholder value through the growth of oil and gas production, cash flow and reserves. Jericho has assembled an interest in 55,000 net acres across Oklahoma, including an interest in ~16,000 net acres in the STACK Play. Jericho owns a 26.5% interest in STACK JV.
Jericho’s current operations are focused on the oil-prone Meramec and Osage formations in the STACK. The Jericho team applies advanced engineering analyses and enhanced geological techniques to under-developed resource areas.
Jericho, with operational headquarters in Tulsa, Oklahoma, trades publicly on the TSX-Venture Exchange (JCO) and OTC Markets (JROOF). Jericho owns its net acre position in Oklahoma through, and participates in the STACK JV through, one or more wholly owned subsidiaries.
Cautionary Note Regarding Forward-Looking Statements: This news release includes certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual events and results to differ materially from Jericho’s expectations include risks related to the exploration stage of Jericho’s project; market fluctuations in prices for securities of exploration stage companies; and uncertainties about the availability of additional financing.
Neither the 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 release.
CONTACT:
Adam Rabiner,
Director, Investor Relations
1.800.750.3520 investorrelations@jerichooil.com
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