Denison Mines Corp. (TSX:DML) announced an 88 percent increase in the indicated mineral resources estimated for the Wheeler River project.
Highlights are as follows:
- The Gryphon deposit is estimated to contain, above a cut-off grade of 0.2% U3O8, 61.9 million pounds of U3O8 (1,643,000 tonnes at 1.71% U3O8) in Indicated Mineral Resources, plus 1.9 million pounds of U3O8 (73,000 tonnes at 1.18% U3O8) in Inferred Mineral Resources.
- Wheeler River is also host to the Phoenix deposit, which is estimated to include Indicated Mineral Resources of 70.2 million pounds of U3O8above a cut-off grade of 0.8% U3O8 (166,000 tonnes at 19.1% U3O8), as disclosed in the Preliminary Economic Assessment for the Wheeler River Uranium Project, Saskatchewan, Canada dated March 31, 2016 and prepared by Ken Reipas, P.Eng of SRK Consulting (Canada) Inc. (the “PEA”).
- With this update to the resources estimated for the Gryphon deposit, the combined Indicated Mineral Resources estimated for Wheeler River have increased by 88% to 132.1 million pounds U3O8, which will be used to support the Pre-Feasibility Study (“PFS”) initiated for the project in July 2016 and expected to be completed during 2018.
This updated resource estimate for Gryphon marks an important milestone for the Wheeler River project – solidifying its ranking as the largest undeveloped uranium project in the infrastructure rich eastern Athabasca Basin, and positioning the project to be the next new mine developed in the region. The long-term fundamentals for the uranium mining business are certainly at the forefront of the market right now, with a series of production curtailments recently being announced.
As a developer positioning to build a new mine for the next uranium bull market, we strongly believe that the ability to leverage existing infrastructure, and limit up-front costs and timelines to production, will make the difference in building and financing a new mine as the uranium market strengthens. This updated resource, is expected to bode well for our ongoing efforts related to the Wheeler River PFS, which is planned to be completed during 2018.