Denison Mines Corp (DNN) 2012 Q2 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to the Denison Mines second quarter 2012 results conference call. I would now like to turn the meeting over to Mr. Ron Hochstein. Please go ahead Mr. Hochstein.

女士們，先生們，早安！歡迎參加丹尼森礦業公司2012年第二季業績電話會議。現在，我想將會議時間交給羅恩·霍克斯坦先生。請霍克斯坦先生發言。

Thank you, Paul. Good morning. Participating with me today is Jim Anderson, Executive Vice President and Chief Financial Officer. We'll start with a brief look at the recently completed transaction with Energy Fuels, then following that, Jim will speak to the financial results. Then I'll update you on our 2012 activities and then answer questions.

謝謝保羅。早安.今天和我一起參加的是執行副總裁兼財務長吉姆·安德森。我們將首先簡要介紹最近完成的與能源燃料公司（Energy Fuels）的交易，然後吉姆將介紹財務表現。之後，我將向大家介紹我們2012年的業務活動，並回答大家的提問。

This discussion includes forward-looking information. Actual future results may differ from expected results for a variety of reasons described in the cautionary statements regarding forward-looking information section of our press release. All amounts are in US dollars unless otherwise indicated.

本討論包含前瞻性資訊。由於我們新聞稿中關於前瞻性資訊的警示性聲明部分所述的各種原因，實際未來結果可能與預期結果不同。除非另有說明，所有金額均以美元計算。

Q2 marked a significant turning point for Denison with the completion of the transaction with Energy Fuels Inc. whereby they acquired our US mining division. For Denison shareholders, this was an opportunity to maximize their investment in Denison's US assets in a transaction that distributed that value directly and tax efficiently to them via new shares in Energy Fuels. Denison shareholders of record on June 28, 2012 received approximately 1.106 common shares of EFR for every common share of Denison they owned while retaining their Denison shares.

第二季標誌著丹尼森公司的一個重要轉折點，公司完成了與 Energy Fuels Inc. 的交易，Energy Fuels Inc. 收購了我們的美國採礦部門。對於丹尼森公司的股東來說，這是一個最大化其在丹尼森美國資產投資的機會，交易將透過 Energy Fuels 的新股直接且有效率地分配給股東。截至2012年6月28日登記在冊的丹尼森公司股東，其持有的每一股丹尼森普通股將獲得約1.106股EFR普通股，同時保留其持有的丹尼森公司股份。

The transaction is an important step forward for Denison. We had evolved on two separate parallel but different tracks, being both an exploration and development entity with a global footprint and an established uranium producer. The production and exploration risk profiles are very different. A producer is evaluated based on earnings, whereas an exploration company is evaluated on the basis of exploration success.

這項交易對丹尼森公司而言是重要的一步。我們先前一直處於兩條平行但不同的發展軌道上：既是一家業務遍布全球的勘探開發實體，也是一家成熟的鈾生產商。生產和勘探的風險狀況截然不同。生產商的估值是基於收益，而勘探公司的估值則是基於勘探成功率。

With the shutdown of our Canadian production in 2010, we became purely a US producer. The US production, though, was large enough to support that business but not as well as the global exploration programs. Through this transaction, we were able to unlock the value inherent in the two components of Denison's business, which in our view was not being adequately recognized in the market. In addition, the deal was structured in a way that allowed Denison shareholders to benefit from two distinct investment vehicles.

隨著2010年加拿大生產設施的關閉，我們成為了純粹的美國生產商。儘管美國產量足以支撐該業務，但不如全球勘探項目那麼強勁。透過此次交易，我們得以釋放丹尼森公司兩大業務部門的內在價值，而我們認為這些價值在市場上尚未得到充分認可。此外，這筆交易的結構設計也使丹尼森的股東能夠從兩種不同的投資工具中獲益。

Combining and strengthening of our US operations with a complementary set of assets and people at Energy Fuels has created what is now the leading US pure play uranium company with four producing mines and a fifth scheduled to begin operations later this year, the only conventional uranium mill in the United States and one of the largest holdings of US-based 43-101 compliant uranium resources.

透過整合和加強我們在美國的業務，以及 Energy Fuels 互補的資產和人員，我們創建了目前美國領先的純鈾公司，該公司擁有四個在產礦山，第五個礦山計劃於今年晚些時候開始運營，是美國唯一的常規鈾礦廠，也是美國最大的符合 43-101 標準的鈾資源控股公司之一。

At the same time, Denison shareholders will be able to benefit from its increased focus on our Canadian and global asset base, particularly our exploration and development portfolio, which includes our extensive Athabasca Basin portfolio of 28 properties, 23 of which are operated by Denison. Our Athabasca holdings include the 60% owned Wheeler River Project and its Phoenix deposit, as well as the McClean underground and Midwest development projects, also in northern Saskatchewan, and adjacent to our 22.5% owned McClean Lake mill, our wholly owned Mutanga project in Zambia and the Gurvan Saihan joint venture in Mongolia.

同時，丹尼森股東將受益於公司對加拿大及全球資產基礎的更多關注，尤其是我們的勘探和開發組合，其中包括我們在阿薩巴斯卡盆地的28個資產組合，其中23個由丹尼森運營。我們在阿薩巴斯卡的資產包括我們持有60%股權的惠勒河計畫及其鳳凰礦床，以及麥克萊恩地下開發案和中西部開發案。這兩個項目同樣位於薩斯喀徹溫省北部，毗鄰我們持有22.5%股權的麥克萊恩湖工廠，以及我們在尚比亞全資擁有的穆坦加項目，以及在蒙古的古爾萬賽漢合資項目。

Based on stock market performance to last Friday, August 3, the transaction has accomplished its objective of unlocking shareholder value. Since the transaction was announced, Denison, taking into account the energy fuels distribution, is up 9.7% while chemical is up 1%. Uranium 1, paladin and uranium energy are all down 17.7%, 30.4% and 30.9%, respectively. The global ex-uranium ETF was also down 18.5%.

根據截至8月3日（上週五）的股市表現，該交易已實現其釋放股東價值的目標。自交易宣布以來，丹尼森（計入能源燃料分銷）股價上漲9.7%，而丹尼森化學股價上漲1%。鈾1、帕拉丁和鈾能源分別下跌17.7%、30.4%和30.9%。全球除鈾ETF也下跌了18.5%。

Since the distribution date, Denison is up 14.8% and EFR is up 7.9%. Combining the two based on the transaction ratio, a Denison shareholder that held them both after the transaction is up 13.7%. The other comparative companies and the global ex-uranium ETF were all down during the same period from 4.6% to 15.4%.

自派息日以來，丹尼森股價上漲了14.8%，EFR股價上漲了7.9%。以交易比率合併兩家公司的股價，交易後同時持有這兩家公司的丹尼森股東的股價上漲了13.7%。同期，其他可比公司以及全球除鈾ETF均下跌了4.6%至15.4%。

Now I'd like to turn the call over to Jim who will deal with the financial ramifications of the EFR transaction as well as guide you through the results of our continuing operations. Jim?

現在我想把電話轉給吉姆，他將負責處理 EFR 交易的財務影響，並引導您了解我們持續經營的結果。吉姆？

Thank you, Ron. Good morning, everyone. As a result of the EFR transaction, the Company has restated the presentation of its statement of income to include only the Company's continuing operations in detail and to disclose the results of its mining -- US mining division separately as discontinued operations.

謝謝，Ron。大家早安。由於EFR交易，本公司已重述其損益表的列報方式，僅詳細列明公司的持續經營業務，並將其採礦業務（美國採礦部門）的業績單獨披露為已終止經營業務。

The Company accounted for the EFR transaction in accordance with IFRS which requires that we fair value the assets being distributed to shareholders, which in this case was the EFR shares. Fair value of the shares was determined to be $79.4 million based on $425 million common shares of EFR to be distributed to Denison shareholders, a share price of CAD0.19 per share and a Canadian-US dollar exchange rate of 0.9822.

本公司根據《國際財務報告準則》(IFRS) 對 EFR 交易進行了會計處理，該準則要求我們對分配給股東的資產（在本例中為 EFR 股份）進行公允價值評估。基於分配給 Denison 股東的 4.25 億股 EFR 普通股、每股 0.19 加元的股價以及 0.9822 加元兌美元的匯率，確定該股份的公允價值為 7,940 萬美元。

Immediately prior to the sale, the Company tested the carrying value of the US Mining division for impairment using the fair value of the EFR share consideration as the recoverable amount. As a result, the Company recognized an impairment charge of $97.9 million of which $44.1 million had been recognized in the first quarter of 2012, and $53.8 million was recognized in the second quarter.

在出售前夕，公司以EFR股份對價的公允價值作為可收回金額，對美國礦業部門的帳面價值進行了減損測試。結果，公司確認了9,790萬美元的減損費用，其中4,410萬美元已於2012年第一季確認，5,380萬美元已於第二季確認。

Net loss from discontinued operations totaled $50.4 million or $0.13 per share for the three months ended June 30, 2012 compared to a net loss of $3.8 million or $0.01 per share for the three months ended June 30, 2011. The net loss from discontinued operations was $92.8 million or $0.24 per share for the six months ended June 30, 2012 compared to a net loss of $4.5 million or $0.02 per share for the six months ended June 30, 2011. The net loss in 2012 was primarily due to the impairment charges.

截至 2012 年 6 月 30 日的三個月，非持續經營淨虧損總計 5,040 萬美元或每股 0.13 美元，而截至 2011 年 6 月 30 日的三個月淨虧損為 380 萬美元或每股 0.01 美元。截至 2012 年 6 月 30 日的六個月，非持續經營淨虧損為 9,280 萬美元或每股 0.24 美元，而截至 2011 年 6 月 30 日的六個月淨虧損為 450 萬美元或每股 0.02 美元。 2012 年的淨虧損主要由於減損費用。

Looking at continuing operations, revenue from Denison's Environmental Services division was $2 million for the three months ended June 30, 2012 and $5.2 million for the six-month period. This compares with $3.6 million and $7.1 million during the comparable periods in 2011.

從持續經營業務來看，截至2012年6月30日的三個月，丹尼森環境服務部門的營收為200萬美元，上半年營收為520萬美元。相較之下，2011年同期的營收分別為360萬美元和710萬美元。

The decline in revenue is primarily due to the expiry in March of 2012 of a contract with the Yukon government at the Faro Mine. Revenue from the management contract with Uranium Participation Corporation was $435,000 for Q2 2012 and $870,000 for the six months compared with $476,000 and $1 million in the same periods in 2011. Total revenue for Q2 2012 amounted to $2.4 million.

收入下降的主要原因是與育空地區政府簽訂的法羅礦管理合約於2012年3月到期。 2012年第二季度，與鈾參與公司簽訂的管理合約收入為43.5萬加元，上半年收入為87萬加元，而2011年同期分別為47.6萬加元和100萬加元。 2012年第二季總營收為240萬加元。

The McClean Lake mill remains on standby. Operating costs for the three months and six months ended June 30, 2012 totaled $749,000 and $1.3 million, including standby costs compared to $242,000 and $354,000 for the three months and six months ended June 30, 2011. The Cigar Lake joint venture continues to pay nearly all of the standby expenses under the terms of the toll milling arrangement. Operating costs were higher in 2012 than in 2011 due to increased funding of the SABRE testing which is not part of the McClean Lake standby costs. SABRE stands for Service Access Borehole Resource Extraction, and it is the new name of the former SABM, or MED program.

麥克林湖工廠仍處於待命狀態。截至2012年6月30日的三個月和六個月，營運成本總計74.9萬美元和130萬美元，其中包括待命成本，而截至2011年6月30日的三個月和六個月，營運成本分別為24.2萬美元和35.4萬美元。根據委託銑削協議的條款，雪茄湖合資企業繼續支付幾乎所有的待命費用。 2012年的營運成本高於2011年，原因是SABRE測試的資金增加，而該測試不包含在麥克林湖的待命成本中。 SABRE是「服務通道鑽孔資源提取」的縮寫，是前SABM（或MED）專案的新名稱。

Exploration expenditures during the second quarter of 2012 totaled approximate $4.4 million. Approximately $1.2 million of this was spent in the Athabasca Basin in northern Saskatchewan where we are engaged in exploration as part of the agreed the AREVA operated McClean and Wolly joint ventures, as well as on three other projects, including Wheeler River.

2012年第二季的勘探支出總計約440萬美元。其中約120萬美元用於薩斯喀徹溫省北部的阿薩巴斯卡盆地，我們在該盆地從事勘探工作，該盆地是阿海琺集團運營的麥克萊恩和沃利合資項目的一部分，此外我們還在惠勒河等其他三個項目上進行勘探。

We also spent $657,000 at the Mutanga project in Zambia compared with $785,000 in the second quarter of 2011. Total costs so far this year at Mutanga are $776,000.

我們還在尚比亞的 Mutanga 項目上花費了 657,000 美元，而 2011 年第二季度為 785,000 美元。今年迄今為止，Mutanga 的總成本為 776,000 美元。

Exploration expenditures in Mongolia for the three months ended June 30, 2012 were $2.5 million compared with $664,000 during the same period in 2011. For the six months of 2012 we spent $2.8 million in Mongolia.

截至 2012 年 6 月 30 日的三個月，我們在蒙古的勘探支出為 250 萬美元，而 2011 年同期為 664,000 美元。 2012 年上半年，我們在蒙古的支出為 280 萬美元。

The Company recorded a net loss from continuing operations of $1.7 million or $0.01 per share for the three months ended June 30, 2012 compared with a net loss from continuing operations of $10 million or $0.03 per share for the same period and 2011.

截至 2012 年 6 月 30 日的三個月，本公司持續經營淨虧損為 170 萬美元，即每股 0.01 美元，而 2011 年同期持續經營淨虧損為 1,000 萬美元，即每股 0.03 美元。

For the six months ended June 30, 2012, the net loss from continuing operations was $11.2 million or $0.03 per share compared to a net loss of $16.4 million or $0.04 per share for the six months ended June 30, 2011.

截至 2012 年 6 月 30 日的六個月，持續經營淨虧損為 1,120 萬美元，即每股 0.03 美元，而截至 2011 年 6 月 30 日的六個月的淨虧損為 1,640 萬美元，即每股 0.04 美元。

As of the end of June this year, the Company had cash and cash equivalents of $46 million compared with $53.5 million at the end of December in 2011. The decrease of $7.5 million was due primarily to expenditures on property, plant and equipment totaling $10.8 million offset by cash provided by operations of $4.2 million.

截至今年 6 月底，公司現金及現金等價物為 4,600 萬美元，而 2011 年 12 月底為 5,350 萬美元。減少 750 萬美元主要是因為物業、廠房和設備支出總計 1,080 萬美元，但被經營活動提供的 420 萬美元現金所抵銷。

On June 30, 2012, the Company put in place a revolving term credit facility for $15 million. The credit facility terminates on June 28, 2013. There's no debt outstanding under the facility, however, $9.5 million of the line was used as collateral for certain letters of credit at June 30, 2012.

2012年6月30日，公司設立了一筆1,500萬美元的循環定期信貸額度。該信貸額度將於2013年6月28日到期。該信貸額度項下目前沒有未償債務，但截至2012年6月30日，其中950萬美元已用作某些信用證的抵押品。

For a more detailed discussion of our financial results, I refer you to our MD&A. Now, I'd like to turn the call back over to Ron.

有關我們財務表現的更詳細討論，請參閱我們的管理層討論與分析 (MD&A)。現在，我想把電話轉回給羅恩。

Thank you, Jim. Now I'd like to turn my attention to our exploration and development programs. In Canada, at the 60% owned Wheeler River project, a 15,000-meter summer drilling program is nearly complete. Denison is the operator at Wheeler River and is utilizing two drill rigs. The drill program focused on drilling in zones A and B and also on three other interesting targets near the Phoenix deposit. The results of this summer's drilling in zones A and B will be included along with the 2011 drilling results to prepare a revised National Instrument 43-101 Resource Estimate for Phoenix by the end of 2012. We're planning to spend a total of CAD6.8 million at Wheeler River this year with Denison's share being CAD4.1 million, both those figures in Canadian dollars.

謝謝，吉姆。現在我想談談我們的勘探和開發項目。在加拿大，我們擁有60%股權的Wheeler River項目，一個15,000公尺的夏季鑽探項目已接近尾聲。 Denison公司是Wheeler River的營運商，目前使用兩台鑽孔機。該鑽探計畫主要集中在A區和B區，以及Phoenix礦床附近的其他三個目標區域。今年夏季A區和B區的鑽探結果將與2011年的鑽探結果一起納入，以便在2012年底前編制修訂後的Phoenix國家43-101號資源量估算報告。我們計劃今年在Wheeler River項目上投入總計680萬加元，其中Denison公司的份額為410萬加元，這兩個數字均以加元計算。

Exploration work is also being carried out this summer on the Moore Lake and Wolly projects. At McClean Lake, construction for the expansion of the mill capacity from 13 million to 22 million pounds per year has begun. The ramp-up to processing on Cigar Lake ore in 2013 has also started with AREVA beginning to increase staffing levels and mill maintenance activities. In addition, the TMF, or Tailings Management Facility, optimization earthwork has also begun.

今年夏天，摩爾湖 (Moore Lake) 和沃利 (Wolly) 計畫也正在進行勘探工作。麥克林湖 (McClean Lake) 的選礦廠擴建工程已開工，將選礦廠的年處理能力從 1,300 萬磅增至 2,200 萬磅。雪茄湖 (Cigar Lake) 選礦廠的礦石處理量也已於 2013 年開始提升，阿海琺 (AREVA) 已開始增加員工數量和選礦廠維護工作。此外，尾礦管理設施 (TMF) 的最佳化土方工程也已開工。

In terms of Canadian development, the McClean Lake joint venture has been actively working on two development projects, MacLean underground and Midwest. Denison expects this year to spend approximately $630,000 on these projects. The McClean north or McLean underground feasibility study is being expanded to include the Sue D and Caribou deposits. We were expecting a production decision by Q4 this year, however this has been delayed to Q1 2013. This delay has not impacted the time line, though, to first production, which is projected to be late 2015 or early 2016 because dewatering of the Sue D pit has begun and this activity is on the critical path.

在加拿大開發方面，麥克萊恩湖合資公司正積極推動兩個開發案：麥克萊恩地下計畫和中西部計畫。丹尼森公司預計今年將在這兩個項目上投入約63萬美元。麥克萊恩北部或麥克萊恩地下計畫的可行性研究正在擴展，涵蓋Sue D和Caribou礦床。我們原計劃在今年第四季前做出生產決定，但該決定已被推遲至2013年第一季。不過，這項延遲並未影響首次投產的時間表，預計投產時間為2015年末或2016年初，因為Sue D礦坑的脫水工作已經開始，且目前正處於關鍵階段。

On the Midwest project, the provincial and federal authorities are continuing with the evaluation of the final environmental assessment. We expect them to approve the EA late third or early fourth quarter this year.

關於中西部項目，省級和聯邦政府正在繼續進行最終環境評估。我們預計他們將在今年第三季末或第四季初批准環境評估報告。

This summer, as Jim mentioned, the three-hole production test of the SABRE mining method will be carried out on one of the MacLean North ore pods. The SABRE method, if applicable, may be used at the Midwest deposit. The total cost of this program is estimated at CAD10.2 million on a 100% basis.

正如Jim所提到的，今年夏天將在MacLean North的一個礦體上進行SABRE採礦法的三孔生產試驗。如果適用，SABRE採礦法可能會在中西部礦床使用。該項目的總成本估計為1020萬加元（以100%計算）。

In Zambia at the 100% owned Mutanga project, we're following up on our successful 2011 drill program which increased resources on the Mutanga project to 7.8 million pounds U3O8 measured and indicated and 41.4 million pounds in inferred resources. This summer, a 15,000-meter exploration drill program is underway focusing on several targets that have been identified near the existing resources. To date, although we have identified additional mineralization, it was shallow and low-grade. The drilling program is ongoing.

在尚比亞全資擁有的Mutanga項目，我們正在延續2011年成功的鑽探計劃，該計劃將Mutanga項目的測量和指示資源量提升至780萬磅八氧化三鈾，推斷資源量則達到4140萬磅。今年夏天，一項15,000公尺的勘探鑽探計劃正在進行中，重點關注現有資源附近已發現的幾個目標。到目前為止，雖然我們已經發現了額外的礦化，但這些礦化層位淺且品位低。鑽探計劃仍在進行中。

In addition to the exploration drilling, metallurgical test work is ongoing as well as several social programs in the local area. The Zambian program will total an estimated $7.1 million this year.

除了勘探鑽探外，冶金測試工作以及當地一些社會計畫也在進行中。贊比亞計畫今年的總投資預計為710萬美元。

Earlier this year at the Gurvan Saihan joint venture in Mongolia, we acquired the 15% of Geologorazvedka, our former Russian partner for cash consideration of $742,000 and the release Geologorazvedka's share of unfunded joint venture obligations. This additional interest is expected to be transferred to Mon-Atom, our Mongolian government partner as part of the restructuring plan. Although we currently hold 85%, the final restructuring of the GSJV is expected to result in Denison having its original 70% interest reduced to 66%, thus allowing the Mongolian government to hold 34%, the minimum entitled interest under the new law.

今年早些時候，在蒙古的Gurvan Saihan合資公司，我們以74.2萬美元的現金對價收購了我們之前的俄羅斯合作夥伴Geologorazvedka公司15%的股份，並解除了Geologorazvedka公司在合資公司中尚未出資的份額。作為重組計畫的一部分，這部分額外權益預計將轉移給我們的蒙古政府合作夥伴Mon-Atom公司。儘管我們目前持有85%的股份，但GSJV的最終重組預計將導致Denison公司原有的70%的股份降至66%，使蒙古政府持有34%的股份，這是新法規定的最低權益。

This year, a $4.3 million exploration program is projected in Mongolia. A 29,600 meter drilling program was completed on the Urt Tsaav and Ulziit properties and successfully expanded the 2011 discovery made on Ulziit. Efforts for the remainder of the year will focus on discussions with the government at Mon-Atom regarding restructuring of the GSJV and licensing activities.

今年，蒙古的勘探計畫預計耗資430萬美元。 Urt Tsaav和Ulziit礦區已完成29,600公尺的鑽探項目，並成功拓展了2011年在Ulziit發現的礦藏。今年剩餘時間將聚焦在與蒙古政府在Mon-Atom會議上就GSJV重組及許可活動進行討論。

Regarding our outlook for the remainder of 2012, as a result of the EFR transaction and the standby state of the McClean Lake mill, we obviously will have no production or sales during the remainder of 2012. In terms of our exploration and development, Denison's plans for this year for Canada, Zambia and Mongolia are not anticipated to change as a result of the EFR transaction. Total expenditures on development and exploration projects in 2012 excluding the US are estimated at $22.3 million.

關於我們對2012年剩餘時間的展望，由於EFR交易以及麥克林湖工廠的待命狀態，我們在2012年剩餘時間內顯然不會有任何生產或銷售。就我們的勘探和開發計劃而言，預計丹尼森今年在加拿大、尚比亞和蒙古的計劃不會因EFR交易而改變。 2012年除美國以外的開發和勘探項目總支出預計為2,230萬美元。

Work has begun in developing our 2013 programs which at this time are anticipated to see increased activity on our exploration properties in Canada. The Zambia-Mongolia programs will depend more on the results of the 2012 exploration in Zambia and the negotiations in Mongolia.

我們已開始製定2013年的項目，目前預計加拿大的勘探項目將會增加。贊比亞-蒙古計畫將更取決於2012年贊比亞的勘探結果以及蒙古的談判進度。

With a strong balance sheet and no outstanding debt, Denison plans to aggressively pursue its Canadian and international exploration and development strategy. Our diversified global asset base and experienced exploration team means Denison is well-positioned.

丹尼森擁有強勁的資產負債表，且無未償債務，計劃積極推進其加拿大及國際勘探開發戰略。我們多元化的全球資產基礎和經驗豐富的勘探團隊，使丹尼森佔據有利地位。

That concludes the formal presentation. Thank you for your time, and now we would be happy to answer any questions. Paul?

正式演講到此結束。感謝您抽出時間，現在我們很樂意回答任何問題。保羅？

(Operator Instructions) Adam Schatzker.

（操作員指示）Adam Schatzker。

Hi, good morning Ron.

嗨，早上好，羅恩。

Good morning.

早安.

If I could start with the first question with respect to SABRE, I've got to say, it certainly sounds like an extremely compelling technology, especially for getting into ore bodies that would not be economic conventionally. Can you maybe sort of hypothesize as to a time line as to when we might actually see something more towards the commercial production? And do you see other opportunities in the Basin where you, with or without AREVA, might be able to really introduce this as a more revolutionary small ore body technology.

如果我可以先問第一個關於SABRE的問題，我必須說，這聽起來確實是一項極具吸引力的技術，尤其是在開採那些傳統上不經濟的礦體方面。您能否假設一下，我們何時才能真正看到更多技術實現商業化生產？您是否認為該盆地還有其他機會，無論有沒有AREVA的參與，您都能真正將其作為更具革命性的小型礦體技術引入。

Thanks, Adam. That's really part of the intent of this year's program is it's a three-hole test program where we're going to be mining three holes in close proximity, so mining up against backfilled cavities in order to give us good data. And the plan is to actually next year complete a study for -- on Midwest looking at open pit, underground and SABRE as potential technologies. Others -- so I think you start to see more visibility on the potential for this technology early next year.

謝謝，亞當。今年計畫的目的之一就是進行三孔測試，我們將在三個相鄰的孔洞中進行開採，這樣就能沿著回填空洞進行開採，從而獲得更準確的數據。我們計劃明年完成一項針對中西部地區的研究，研究露天開採、地下開採和SABRE等潛在技術。其他方面——所以我認為，明年年初，這項技術的潛力將會更加清晰。

Another type deposit that it could be used on, although Caribou is being included in the feasibility study to be accessed via underground mining methods, we are potentially looking at Caribou as a target for SABRE as well. And there are a number of deposits in and around the basin that have been known for many years that would be -- that SABRE would be an ideal mining method.

另一種可以使用SABRE技術的礦床類型是Caribou，儘管可行性研究中已將Caribou列入地下採礦法，但我們也有可能將其作為SABRE技術的目標礦床。盆地內外有許多礦床，人們早已知道SABRE技術是理想的採礦方法。

Another one that we own ourselves would be Midwest A. That would be -- right now, that resource with what we know today would not be mineable either underground or open pit, but would be an ideal candidate for SABRE.

我們自己擁有的另一個資源是 Midwest A。目前，就我們目前所知，該資源既不能在地下開採，也不能在露天開採，但卻是 SABRE 的理想候選資源。

With regards to potential for Wheeler for us, given its depth at 400 meters, we might be pushing the limits, the envelope with SABRE, because, obviously, your pumping capabilities to pump that high-grade ore from those depths. So Midwest is -- we're doing testing at McClean, which is 175 to 200 meters; then you get to Midwest, which is a little deeper. We'll get more knowledge as to how deep we can go, but I think Wheeler might be pushing the envelope. But it has -- I think it has a tremendous opportunity for other opportunities in the basin.

至於惠勒礦對我們而言的潛力，考慮到其深度達400米，我們或許正在挑戰SABRE的極限，因為顯然，我們的泵送能力需要從如此深度抽取高品位礦石。至於中西部礦區－我們正在麥克萊恩礦區進行測試，深度為175至200公尺；之後我們會到達中西部礦區，那裡的深度稍深。我們會進一步了解我們能鑽多深，但我認為惠勒礦區可能正在挑戰極限。但我認為它為盆地的其他項目提供了巨大的機會。

So just to try to put a framework around what types of deposit might see metal, obviously smaller is good because you wouldn't be able to get to it conventionally. Are there ideal dimensions? Is it better to have tall, skinny ore bodies, or wide, fat ore bodies? And when you go down and do the excavation, what kind of size would you actually be able to get out of that from each one? I'm just trying to figure what kind of rates you might be able to get with the technology.

所以，為了嘗試建立一個框架，說明哪些類型的礦床可能含有金屬，顯然越小越好，因為常規方法無法開採。理想的尺寸有哪些？是高而細的礦體比較好，還是寬而肥的礦體比較好？當你深入地下進行挖掘時，你實際上能從每個礦床中開採出多大的礦體？我只是想弄清楚，利用這項技術，你的開採率能達到什麼樣的水準。

That's -- you know, the cavity size, I think we're looking at 3- to 4-meter diameter cavity; is that right Jim? And then in terms of the height of that cavity, Adam, that's dependent upon the ore body.

你知道，洞穴的大小，我認為我們觀察到的洞穴直徑在3到4公尺之間，對嗎，吉姆？至於洞穴的高度，亞當，這取決於礦體。

Right.

正確的。

So that's sort of the diameter of the cavities that we're looking at. The work that's been done on the mining head itself is it's very flexible and the jet bore and the jet technique is -- can be manipulated so that you could work around different shaped ore bodies. Obviously, tall, skinny ones so that you drilling less holes would be ideal, just like the jet boring from below. So that's the type of deposit, but anything that's -- like I said, Midwest A, which is around 10 million pounds, SABRE would be ideal for that.

這就是我們觀察到的礦洞直徑。採礦頭本身的加工非常靈活，噴射鑽孔和噴射技術可以靈活調整，以便處理不同形狀的礦體。顯然，高而細的礦體，這樣鑽孔較少，是理想的選擇，就像從下方噴射鑽孔一樣。這就是礦床的類型，但任何——就像我說的，中西部A型礦，大約1000萬磅——SABRE都是理想的選擇。

Can you remind me of the grade there?

你能提醒我那裡的成績嗎？

Grade at Midwest A is fairly high. I can't remember it right off the top of my head.

中西部的A級成績相當高。我一下子想不起來了。

(inaudible) [5]%.

（聽不清楚）[5]%。

It's 5 -- probably about 5 -- probably about the same as Midwest.

大約是 5 — — 大概是 5 — — 可能與中西部差不多。

Okay. Alright, well, certainly look forward to more out of SABRE.

好的。好吧，當然期待SABRE的更多作品。

Now if I could ask a more broad question, when you go through everything that you're doing, it seems like the major focus right now would be obviously Wheeler River drilling, McClean North underground, and I see AREVA sort of doing most of the heavy lifting on that end of things, but then you've got your work overseas in Zambia and Mongolia and the spend for 2012 of over $20 million. So I guess the net question here is, you've got all these different things going on and certainly each one with some interesting opportunities. But now that you don't have production, and even with the recovering uranium market, there wouldn't be positive cash flows, not that you necessarily had them recently in this depressed environment. But I'm just trying to see, is there an issue where one might start to see cash burn going too fast because you've got too many things, and if you had to actually say, okay, what is our absolute focus in order to get back into production as soon as possible. Which ones would you look at as that focus?

現在，如果我可以問一個更寬泛的問題，回顧一下你們目前所做的一切，似乎目前的主要重點顯然是惠勒河鑽井和麥克林北地下項目，而我認為阿海琺公司在這方面承擔了大部分重擔。但你們在尚比亞和蒙古也有海外項目，2012年的支出超過2000萬美元。所以，我想，這裡的最終問題是，你們正在進行所有這些不同的項目，當然每一項都有一些有趣的機會。但現在你們沒有產量，即使鈾市場正在復甦，也不會有正現金流，而且在這種低迷的環境下，你們最近也不一定有正現金流。我只是想看看，是否存在一個問題，即由於你們有太多項目，現金消耗可能會太快？如果一定要問，為了盡快恢復生產，我們的絕對重點是什麼？您會將哪些項目視為重點？

That's -- you've nailed what we -- that's our target going forward here, is we have to be spending the money smartly and identifying where we believe that we're going to get the best value in the short period of time. As you've laid out, it's a little more challenging in this uranium market to be creating that value. Obviously, Canada is going to continue to be -- Wheeler will continue to be our primary focus. The other --there's other exploration properties in and around Wheeler that we have not been working on for a few years because of just our focus on Wheeler that we will begin to do some more drilling there. So Canada's going to continue to be the number one priority, followed by Zambia to try to contain -- we still believe, even though our drilling this year hasn't gone as well as we had hoped, we still believe there's great opportunity to expand that resource and turn that project around into a more economic project, even at slightly higher uranium prices. And then Mongolia, it's going to be a third priority just because of the issues we have with the political environment there, and we've just got to continue to work with the government to try and negotiate a joint venture that makes sense.

你說得對，這就是我們未來的目標：我們必須精打細算地花錢，並找到我們認為能在短期內達到最佳價值的地方。正如你所說，在鈾礦市場創造這種價值更具挑戰性。顯然，加拿大將繼續——惠勒將繼續是我們的主要關注點。另一方面——惠勒及其周邊還有其他勘探項目，由於我們專注於惠勒，我們已經有幾年沒有在那裡開展工作了，我們將開始在那裡進行更多的鑽探。因此，加拿大將繼續是我們的首要任務，其次是讚比亞——我們仍然相信，儘管我們今年的鑽探進展不如預期，但我們仍然相信，即使在鈾價略高的情況下，仍有巨大的機會擴大該資源，並將該項目轉變為一個更具經濟效益的項目。然後是蒙古，這將是第三個優先事項，因為我們在那裡的政治環境中遇到了問題，我們必須繼續與政府合作，嘗試談判一項有意義的合資企業。

Right, and I guess now you've been a different company for a few months now when you meet with investors. What do they want out of the Company? What are you finding? Are they saying, look, Canada's really our focus. We don't care too much with Zambia or Mongolia, or vice versa?

對，我想您已經在另一家公司工作了幾個月，現在和投資者見面了。他們想從公司得到什麼？您發現了什麼？他們是不是說，你看，加拿大才是我們真正的重點。我們不太關心贊比亞或蒙古，反之亦然？

Yes, no, that's it. What I laid out is really what we're hearing from investors as well in terms of our focus.

是的，不是，就是這樣。我講的其實是我們從投資者那裡聽到的關於我們關注點的意見。

Okay, well, certainly a good start, and hopefully we'll see lots more good drilling coming out of Canada.

好的，這當然是個好的開始，希望我們能看到加拿大有更多優秀的鑽探成果。

I would hope so too, Adam, thanks.

我也希望如此，亞當，謝謝。

Thanks for your time.

感謝您的時間。

(Operator Instructions) Ian Parkinson.

（操作員指示）伊恩·帕金森。

Hi Ron, thanks for taking the call. Listen, just a quick question on the summer drilling at Wheeler. You may have dealt with this earlier in the call; I apologize if you have. Are you focused more to the Northeast, or is it going to be more in the central part of the known deposits -- more to ore zone B?

嗨，Ron，謝謝你接電話。聽著，我只想問一個關於惠勒礦夏季鑽探的簡短問題。你可能在電話裡早些時候已經提到過這個問題了；如果提到了，我深表歉意。你的重點是東北部，還是會更專注於已知礦床的中部－也就是B礦區？

We did do some -- most of our drilling this summer was on cross-faults that we had had some success in expanding A in the winter program and tail end of the summer program last year. And so we were drilling some further cross-faults that we know of at A and also in B. That was -- we didn't do any sort of infill drilling. We had already drilled this thing at very tight spacing. Unfortunately, on the cross-faults in B, they didn't show up as well.

我們確實做了一些——今年夏天我們大部分的鑽探工作都在交叉斷層上進行，去年冬季專案和夏季專案尾聲，我們在擴展A斷層方面取得了一些成功。因此，我們在A斷層和B斷層也進行了一些我們已知的交叉斷層鑽探。也就是說——我們沒有進行任何加密鑽探。我們已經以非常緊密的間距鑽探過這個斷層。不幸的是，在B斷層上，這些斷層也沒有顯現出來。

Where were we still feel that A may be open is at depth to the north-northeast, what we used to call the zone D. We're now saying, that's just really zone A going to depth. So that's still open. But in terms of going further south on zone B -- we don't think there's much there. So we're still looking at northeast to zone A and starting to look at other targets that we have within a 2- to 3-kilometer radius of Phoenix that are near around that quartzite ridge.

我們之前認為A區可能處於開放狀態的地方是北偏東北方向的深度，也就是我們過去所說的D區。現在我們說，那其實只是A區向深處延伸的部分。所以那裡仍然開放。但就B區更南邊而言——我們認為那裡沒有太多發現。所以我們仍然在尋找A區的東北方向，並開始尋找菲尼克斯週邊2到3公里半徑範圍內、靠近石英岩山脊的其他目標。

Are they more towards the northeast, a long trend or --?

它們是否更傾向於東北，這是一個長期趨勢還是——？

It's a little bit of both. There's some that -- there is -- two are actually on the other side of the quartzite ridge; one is to the southwest. That one had been -- received a lot of drilling historically, very good alteration and mineralization, but lower grade; and then there's some conductors to the north-northwest.

兩者都有一點。有些……有－實際上有兩個位於石英岩脊的另一側；一個在西南方。那個地方－歷史上進行過大量鑽探，蝕變和礦化非常好，但品位較低；還有一些位於北偏西北方向的礦體。

Okay. What sort of turnaround are you seeing these days on getting data back from the labs?

好的。您最近從實驗室取得數據的情況如何？

It's not too bad. It's a little bit slower at this year because we have seen -- Fission has picked up their programs a bit, and also Rio has picked up their programs in the basin a bit. So it's a little bit slower this year, but it's nothing like what it used to be.

還不錯。今年稍微慢了一點，因為我們已經看到——Fission的計畫有所加快，Rio在盆地的計畫也有所加快。所以今年是慢了一點，但和以前完全不一樣了。

Okay great, thanks guys.

好的，太好了，謝謝大家。

Thanks, Ian.

謝謝，伊恩。

Adam Schatzker.

亞當·沙茨克。

Hi Ron, just a quick follow-up on that. Looking towards next year, where do you see the drill program with respect to number of drills as you move away from the known deposits and you get, I guess, more back to a grass roots style of exploration of deposit location? Do you see an increase there, or are we still going to be with the same number of drills?

你好，Ron，我簡單跟進一下這個問題。展望明年，隨著鑽探計畫逐漸遠離已知礦床，我猜想會回歸到基層礦床勘探模式，您認為鑽探數量會有多少？您認為鑽探數量會增加嗎？還是會維持不變？

I think we'll probably start the -- probably do the winter program with two drills, Adam, and then, obviously, that will depend on its success. But the one thing we are going to change our tack, and that if we do identify resources, we'll put 2 to 3 drills in that area, but always keep at least one or two drills on [rec-e] work.

亞當，我想我們可能會先進行兩次訓練，然後開始冬季訓練計劃，當然，這取決於訓練是否成功。但有一件事我們要改變策略，那就是如果我們確實找到了資源，我們會在這個領域安排2到3次訓練，但始終會保留至少1到2次訓練用於[娛樂性]工作。

Okay sounds good. Thank you.

好的，聽起來不錯。謝謝。

Thank you, there are no further questions registered at this time. I would now like to turn the meeting back over to Mr. Hochstein.

謝謝，目前沒有其他問題。現在我想把會議交還給霍克斯坦先生。

Thank you, Paul, and thank you, everyone, for attending and look forward to hearing from you all in Q3. Thanks very much.

謝謝保羅，也謝謝大家的參與，期待在第三季與大家見面。非常感謝。

Thank you, the conference is now ended. Please disconnect your lines at this time and we thank you for your participation.

謝謝！會議到此結束。請您暫時斷開連接，感謝您的參與。