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Denison Reports Financial and Operational Results for Q2 2023

Press Release

TORONTO, Aug. 10, 2023 – Denison Mines Corp. (‘Denison’ or the ‘Company’) (TSX: DML) (NYSE American: DNN) has filed its Condensed Consolidated Financial Statements and Management’s Discussion & Analysis (‘MD&A’) for the quarter ended June 30, 2023. Both documents are or will be available on the Company’s website at, SEDAR+ (at and EDGAR (at The highlights provided below are derived from these documents and should be read in conjunction with them. All amounts in this release are in Canadian dollars unless otherwise stated. View PDF version.

David Cates, President and CEO of Denison commented, “During the second quarter, Denison achieved a further notable milestone associated with the advancement of our flagship Wheeler River Project (‘Wheeler River’) with the completion of (i) a highly successful Feasibility Study (‘Phoenix FS’) evaluating the use of In-Situ-Recovery (‘ISR’) mining for the high grade Phoenix uranium deposit (‘Phoenix’), and (ii) a positive cost update (‘Gryphon Update’) to the Pre-Feasibility Study (‘PFS’) for the underground mine planned for the Gryphon uranium deposit (‘Gryphon’).

As outlined in the Phoenix FS, Denison has successfully completed several years of technical de-risking, which has cemented Phoenix’s position as one of the lowest-cost uranium development projects in the world. Notably, the economics of Phoenix as an ISR mining operation remain exceptionally robust, despite industry-wide cost inflation, while most contemporary uranium development projects have not yet been tested against current cost inflation. The recent results of the Phoenix FS and Gryphon Update illustrate Denison’s unique potential to become a meaningful uranium producer with multiple low-cost development assets.

Global support for the role of nuclear power in the clean energy transition continues to grow and uranium buyers are increasingly prioritizing geopolitical stability. Denison is well funded, with over $235 million in working capital and investments at the end of the second quarter, and focused on advancing Phoenix to a final investment decision in anticipation of building a much-needed new source of Canadian uranium production.”


  • Feasibility Study for Wheeler River Phoenix deposit yields significant increase in economic results

In June 2023, Denison released the results of the Phoenix FS completed for ISR mining of Phoenix. The Phoenix FS demonstrates robust economics including:

  • Base case pre-tax NPV (8%) of $2.34 billion (100% ownership-basis) representing a 150% increase in the base case pre-tax NPV8% for Phoenix from the 2018 Pre-Feasibility Study (‘2018 PFS’).
  • Very robust base case pre-tax Internal Rate of Return (‘IRR’) of 105.9%.
  • Adjusted base case after-tax NPV8% of $1.56 billion (100% basis) and IRR of 90.0% – with Denison’s effective 95% interest in the project equating to an adjusted base case after-tax NPV8% of $1.48 billion.
  • Base case pre-tax and after-tax (adjusted) payback period of 10 months – equating to a reduction of 11 months for the pre-tax payback period from the 2018 PFS.
  • Optimized production profile, based on ISR mine planning efforts evaluating production potential for individual well patterns – resulting in an increase to the planned rate of production by approximately 43% during the first five years of operations.
  • Estimated pre-production capital costs of under $420 million (100% basis), yielding an impressive base case after-tax (adjusted) NPV to initial capital cost ratio in excess of 3.7 to 1.
  • Robust economics that easily absorb cost-inflation and design changes impacting both operating and capital costs, confirming Phoenix’s position with estimated cash operating and all-in costs expected to be amongst the lowest-cost uranium mines in the world.
  • Phoenix FS plans aligned and costed to meet or exceed environmental criteria expected to be required by the ongoing regulatory approval process.
  • Updated mineral resource estimate, reflecting the results of 70 drill holes completed in support of ISR de-risking and resource delineation activities, which has upgraded 30.9 million pounds U3O8 into measured mineral resources, and increased the average grade of the Zone A high-grade domain. This zone is now estimated to contain 56.3 million pounds U3O8 in Measured and Indicated mineral resources at an average grade of 46.0% U3O8.
  • Upgraded 3.4 million pounds U3O8 into Proven mineral reserves, representing the equivalent of 85% of production planned during the first calendar year of operations.
  • Completion of Phoenix ISR De-Risking and Transition to Engineering Design

The Phoenix FS reflects independent third-party validation of the selection of the ISR mining method for Phoenix and builds on the findings from a comprehensive and rigorous multi-year technical de-risking process highlighted by the highly successful completion of the leaching and neutralization phases of the Phoenix Feasibility Field Test (‘FFT’) in late 2022. Through the technical de-risking process, Denison has acquired extensive deposit-specific data and developed a robust ISR mine planning model that involved evaluation of the production potential for individual well patterns.

With technical de-risking of the project substantially complete, front-end engineering design efforts to support the advancement of the planned Phoenix operation are already significantly progressed and the Company is on track to transition into detailed design efforts, consistent with the Company’s Outlook for 2023, before the end of the year.

  • Cost update to the 2018 PFS for Wheeler River Gryphon deposit confirms the project remains to be positioned amongst the lowest-cost uranium mines in the world

The scope of the Gryphon Update was targeted at the review and update of capital and operating costs. Mining and processing plans remain largely unchanged from the 2018 PFS aside from minor scheduling and construction sequencing optimizations. The key points include:

  • Base case pre-tax NPV (8%) of $1.43 billion (100% basis) is a 148% increase in the base case pre-tax NPV8% for Gryphon from the 2018 PFS.
  • Strong base case pre-tax IRR of 41.4%.
  • Base case after-tax NPV8% of $864.2 million (100% basis) and IRR of 37.6% – with Denison’s effective 95% interest in the project equating to a base case after-tax NPV8% of $821.0 million.
  • Base case pre-tax payback period of 20 months, and base case after-tax payback period of 22 months – equating to a reduction of 17 months for the pre-tax payback period from the 2018 PFS.

Importantly, Gryphon remains a highly valuable project that provides Denison with an additional source of low-cost potential production to deploy significant free cash flows expected from Phoenix.

David Cates, President and Chief Executive Officer, (416) 979-1991 ext. 362; Mac McDonald, Exec. Vice President & Chief Financial Officer, (416) 979-1991 ext. 242; Follow Denison on Twitter, @DenisonMinesCo


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