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Denison has released high-grade uranium drill results from its Mann Lake and Wheeler River properties. Analysts were quick to voice their positivity.
Wednesday was a good day for Denison Mines (TSX:DML,NYSEMKT:DNN), which released high-grade uranium drill results from its Mann Lake and Wheeler River properties, both of which are located in Saskatchewan’s Athabasca Basin.
Specifically, the company said that hole MN-066-01 at Mann Lake intersected 9.8 percent eU3O8 over 3.5 meters — that’s the best result to date at the property. Another hole, MN-061-01, intersected “weakly elevated radioactivity” directly beneath an unconformity. Twelve holes are planned for the current program, and those are the only ones that have been completed thus far.
In terms of Wheeler River, Denison points in its press release to hole WR-584B as a highlight, noting that it intersected 9 percent eU3O8 over 4.6 meters and extends the Gryphon zone by about 50 meters. In total, four of a planned 22 holes have been completed, with others being WR-582 and WR-583, which respectively intersected 2.9 percent eU3O8 over 2.4 meters and 2.8 percent eU3O8 over 2.4 meters; they have extended the Gryphon zone about 50 meters downplunge.
Though the company’s share price saw little movement after the news came out, closing at $1.11 on the TSX, up just 0.91 percent, and at $0.89, up 0.11 percent, on the NYSE MKT, analysts have been quick to praise the results.
For instance, Cantor Fitzgerald’s Rob Chang said in a note that the high-grade intercepts at Wheeler “continue to point to the large resource potential of the newly discovered Gryphon Zone,” and described the results from Mann Lake as “encouraging as the property is the newest addition to the Denison portfolio.” Similarly, Colin Healey of Haywood Securities said the high-grade intersection at Mann Lake “looks promising for the project, and is definitely noteworthy,” also noting that Gryphon’s potential for expansion “is holding up well.”
In terms of what’s next for Denison, the company has left little to the imagination. As mentioned, more drilling needs to be completed at both Mann Lake and Wheeler River, and Denison has made the goals of both programs clear. Work at Mann Lake is aimed at exploring for extensions to uranium mineralization intersected in 2014 in holes MN-060 and MN-065; similarly, the goal at Wheeler River is to extend the Gryphon zone, which was also discovered in 2014.
According to Healey, the company’s 2015 exploration programs are fully funded, though it may require future equity fundings to move forward after that. However, given that Mann Lake is a joint venture with uranium heavyweights Cameco (TSX:CCO,NYSE:CCJ) and AREVA (EPA:AREVA), while Wheeler River is a joint venture with Cameco and JCU (Canada) Exploration, it’s clear the properties have some support.
No word yet on when further results from either program can be expected, but given Wednesday’s numbers, investors will no doubt be on the lookout.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.