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Denison Mines Corp. ("Denison"
or the "Company") is pleased to announce significant winter drill
programs at a number of its Athabasca Basin projects, including the
commencement of the first part of the multi-faceted 2011 exploration program
at Wheeler River.
Wheeler River
Denison's 60% owned Wheeler River
project is host to the Phoenix deposit, for which initial NI 43-101 resource
estimates were announced late in 2010. Drilling at Wheeler has tested only
1.3 kilometres of a known 18 kilometres
of favourable stratigraphy,
and Denison believes that this stratigraphy has
strong potential to host other high-grade zones. The Wheeler River Joint
Venture has approved a $10 million budget for 2011, making this the largest
exploration program to be carried out to date in the 35-year exploration
history of the Wheeler property.
The first step in the program will
involve testing of several high-priority targets along strike from the
high-grade Phoenix deposit. The winter portion of the program is focussed on diamond drilling and has commenced with two
drills, expanding to three drills as the season progresses. It is anticipated
that 15,000 metres, or 34 holes, will be completed
this winter, which will be followed up by an anticipated 20,000 metre summer program. The project team has identified a
number of high quality drill targets to test in 2011.
In addition to the drilling activity,
the 2011 Wheeler River program will also entail activities identified as a
result of the Concept Study (the "Study") completed by Golder Associates Ltd. ("Golder")
for the Joint Venture in the fourth quarter 2010. The path forward will
require advancing environmental programs, engineering studies and
geotechnical and hydrogeological investigations.
The Study was completed for the Joint
Venture for its internal use to help prepare a development strategy for the
project. The Study conceptually proposed that a mine which could produce
between 6.0 and 8.0 million lbs U3O8 per year would have an initial estimated
capital cost of Cdn$690 million and an estimated operating cash cost of
approximately US$31.00 per lb, assuming toll milling. Based on an integrated
environmental and engineering approach, the Study project schedule indicates
potential first production by early 2019, assuming a positive production decision
is made by the end of 2013.
Moore Lake
Denison's 75% owned Moore Lake project
is host to the Maverick deposit, which was extensively tested by the former
manager. During the past several years, Denison has completed a number of
geophysical (resistivity) surveys over the favourable
targets, in addition to relogging a number of
critical holes. The Moore Lake Joint Venture has approved an eight hole, 3,000 metre program which
will test a combination of strong resistivity targets and strongly altered stratigraphy along strike from the Maverick deposit.
Preparatory work is underway and drilling will commence shortly.
Hatchet Lake
Denison's 50% owned Hatchet Lake project
is located only 40 kilometres north of the McClean Lake Mill, in an area of strongly altered
basement rocks. The Hatchet Lake Joint Venture has authorized a 14 hole, 2,300 metre drill program
designed to test targets developed over several years in an area where the
unconformity is relatively close to surface. Work is expected to commence shortly.
McClean Lake
AREVA, the operator of the 22.5% McClean Lake Joint Venture, is expected to commence a
4,500 metre, 19 hole
program at McClean Lake this season. This is the
largest drill program at McClean in recent history,
and is being undertaken now in support of near term mining operations.
Targets near known mineralization at Sue D, McClean
South, and McClean North will be tested during the
winter program. The targets are designed to locate both incremental resources
and new mineralization on a property that has already produced almost 50
million pounds U3O8 and still has significant untested potential.
Joint Venture Participants
Denison is the operator and holds a 60%
interest in the Wheeler River Property; Cameco
Corporation holds a 30% interest and JCU (Canada) Exploration Company,
Limited holds the remaining 10% interest. The participants in the Moore Lake
Joint Venture are Denison (75% and operator) and JNR Resources Inc.(25%). The participants in the Hatchet Lake Joint Venture
are Denison (50% and operator) and Virginia Energy Resources Inc.(50%). The participants in the McClean
Lake Joint Venture are AREVA Resources Canada Inc (70% and operator), Denison
(22.5%) and OURD (Canada) Co., Ltd. (7.5%).
The technical information contained in
this press release related to the above described exploration activities is
reported and verified by William C. Kerr, Denison's Vice President, Exploration, who is a qualified person as defined by NI
43-101. For a description of the quality assurance program and quality
control measures applied by Denison, please see Denison's Annual Information
Form dated March 19, 2010 filed under the Company's profile on the SEDAR
website.
About Denison
Denison Mines Corp. is a mid-sized
uranium producer in North America, with mining assets in the Athabasca Basin
region of Saskatchewan, Canada and the southwest United States including
Colorado, Utah, and Arizona. The Company has ownership interests in two
conventional uranium mills in North America. Denison also has a strong exploration
and development portfolio including the Phoenix discovery in the Athabasca
Basin as well as large land positions in the United States, Canada, Mongolia
and Zambia.
Cautionary Statements Regarding Forward
Looking Information
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" 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" or "be achieved" and "has
the potential to".
Forward looking statements are based on
the assumptions noted in this press release and 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 believes that the expectations reflected
in this forward-looking information are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking information included in this press release should not be
unduly relied upon. This information speaks only as of the date of this press
release. In particular, this press release may contain forward-looking
information pertaining to the following: the estimates of Denison's mineral
reserves and mineral resources; uranium and vanadium production and sales
volumes; capital expenditure programs, estimated production costs,
exploration and development expenditures and reclamation costs; expectations
of market prices and costs; supply and demand for uranium and vanadium;
possible impacts of litigation on Denison; exploration, development,
production and expansion plans and objectives; Denison's expectations
regarding raising capital and adding to its mineral reserves through
acquisitions and development; and receipt of regulatory approvals and permits
and treatment under governmental regulatory regimes.
There can be no assurance that such
statements will prove to be accurate, as Denison's actual results and future
events could differ materially from those anticipated in this forward-looking
information as a result of those factors discussed in or referred to under
the heading "Risk Factors" in Denison's Annual Information Form
dated March 19, 2010, available at http://www.sedar.com
and its Form 40-F for the financial year ended December 31, 2009, available
at http://www.sec.gov, as well as the following: global financial conditions;
volatility in market prices for uranium and vanadium; changes in foreign
currency exchange rates and interest rates; the market price of Denison's
securities; the ability to access capital; the ability of Denison to meet its
obligations to its creditors; liabilities inherent in mining operations;
uncertainties associated with estimating mineral reserves and resources;
failure to obtain industry partner and other third party consents and
approvals, when required; delays in obtaining permits and licenses for
development properties; competition for, among other things, capital,
acquisitions of mineral reserves, undeveloped lands and skilled personnel;
incorrect assessments of the value of acquisitions; geological, technical and
processing problems; and, the potential influence of, or reliance upon, a
business partner.
Accordingly, readers should not place
undue reliance on forward-looking statements. These factors are not, and
should not be construed as being, exhaustive. Statements relating to
"mineral reserves" or "mineral resources" are deemed to
be forward-looking information, as they involve the implied assessment, based
on certain estimates and assumptions that the mineral reserves and mineral
resources described can be profitably produced in the future. The
forward-looking information contained in this press release is expressly
qualified by this cautionary statement. Denison does not undertake any
obligation to publicly update or revise any forward-looking information after
the date of this press release to conform such information to actual results
or to changes in Denison's expectations, except as otherwise required by
applicable legislation.
Contact:
Contacts:
Denison Mines Corp.
Ron Hochstein
President and Chief Executive Officer
(416) 979-1991 Extension 232
(416) 979-5893 (FAX)
Denison Mines Corp.
Jim Anderson
Executive Vice President and CFO
(416) 979-1991 Extension 372
(416) 979-5893 (FAX)
www.denisonmines.com
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