Resource World Magazine

A P R I L / M A Y 2 0 1 6 www.resourceworld.com 15 Athabasca Basin Focused Diversified & Growth-Oriented Uranium Development & Explora on Denison is a uranium explora on and development company with interests focused in the Athabasca Basin region of northern Saskatchewan - including its 60% owned Wheeler River project, which hosts the high grade Phoenix and Gryphon uranium deposits. Denison also owns a 22.5% interest in the McClean Lake uranium mill, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, and is the manager Of Uranium Par cipa on Corp., a publicly traded company which invests in uranium oxide and uranium hexafluoride. Focused. Experienced. Growing. TSX: DML | NYSE MKT: DNN www.denisonmines.com @DenisonMinesCo the spotlight. Shares of Lucara soared in November 2015 after the Vancouver- based company reported that it had recovered a huge diamond from its Karowe Mine in Botswana The 1,111-carat, gem quality stone, named the Lesedi La Rona or "Our Light", is only slightly smaller than a ten- nis ball – see our cover photo. It ranks not only as the biggest ever to be recov- ered from Botswana, but also the second largest gem quality stone to be recovered in the past 100 years. "At Lucara we produce close to half of all the diamonds weighing over 100 carats in the world,'' said Lundin. "We should definitely see more (large stones) come out,'' he said. Lucara is currently preparing for that eventuality by spending $18 million to complete the installation of a mega dia- mond recovery circuit. However, for Lucara, the highlight of 2016 will be the sale of the 1,111-carat diamond and another 813-carat stone, according to a research report by United Kingdom-based Pareto Securities Ltd. Pareto said it believes the minimum value for the stones would be US $60,000 per carat. Another priority will be to demon- strate its organic growth options with deeper drilling at Karowe, examining its underground potential, and bulk sampling results at its two exploration licenses. Karowe is expected to process as much as 2.4 million tonnes of ore, pro- ducing over 350,000 carats of diamonds in 2016, generating revenue of up to $220 million. Meanwhile, work at another Lundin Group company, NGEx Resources, is at a much earlier stage as it tries to advance two large copper-gold-silver projects in Chile and Argentina. In January 2016, NGEx released the results of a Preliminary Economic Assessment (PEA) that evaluated the development of two of the company's large copper-gold-silver deposits, (Los Helados and Josemaría), together as one integrated project named Project Constellation. The PEA shows robust economics and highlights the potential to develop this project into one of the largest pro- ducers of copper, gold, and silver in South America. The projected mine life is 48 years, with production forecast at an average of 150,000 tonnes of copper, 180,000 ounces of gold and almost 1.2 million ounces of silver annually. Project Constellation contemplates sequential production from an open pit mine at Josemaría (which is located in Argentina) followed by a block cave, underground mine at Los Helados (situ- ated in Chile). The two deposits are located approximately 10 km apart, and material from both deposits would be processed at a centralized facility. Los Helados is part of a joint venture in which the company holds 60% and Pan Pacific Copper Co., Ltd. holds 40%. Josemaría is part of a joint venture in which the company holds 60% and Japan Oil, Gas, and Metals national Corporation (JOGMEC) owns 40%. NGEx also owns a 100% interest in the Filo del Sol advanced exploration por- phyry / epithermal deposit which lies 15 km south of Los Helados. "We came out with a very good scop- ing study on Los Helados and Jose Maria," Lundin said. However, the PEA indicates the project would cost over $3 billion to develop. That would make it tough to finance in the current market. "What we will do is keep going on our environmental work and wait a little bit for better times,'' Lundin said. "The good news is it breaks even at these prices. Anything that breaks even in a down market is a mine." Lundin is also Chairman of the Lundin Foundation, a philanthropic organization founded by the Lundin family that is sup- ported by a number of publicly traded natural resource companies that provide risk capital to high potential, small- and medium-sized businesses in Africa and elsewhere. Lukas Lundin was recently named 2015 Mining Person of the Year by The Northern Miner. n

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