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Denison Mines Corp. (TSX:DML,NYSEMKT:DNN) announced its first quarter 2015 results, which included operational updates for the company’s various properties.
Denison Mines Corp. (TSX:DML,NYSEMKT:DNN) announced its first quarter 2015 results, which included operational updates for the company’s various properties.
As quoted in the press release:
During the first quarter of 2015, the McClean Lake mill continued to process ore received from the Cigar Lake mine under a toll milling agreement. The mill processed and packaged approximately 693,000 pounds U3O8 for the CLJV. The Company’s share of toll milling revenue from processing Cigar Lake ore at the McClean Lake mill, during the three months ended March 31, 2015, totaled $204,000. In 2014, toll milling revenue was only recognized in the fourth quarter, as the first drums of CLJV uranium were packaged in October 2014.
Revenue from Denison Environmental Services (“DES”) during the three months ended March 31, 2015 was $1,640,000, compared to $1,625,000 during the same period in 2014. In the first quarter of 2015, DES experienced an increase in Canadian dollar revenues due to an increase in activity at certain care and maintenance sites, which was largely offset by the unfavourable fluctuation in foreign exchange rates applicable on the translation of revenues earned in Canadian dollars.
Highlights:
- Continued Exploration Success at the Wheeler River Property: Denison completed a total of 17,700 metres in 26 drill holes during the winter program, resulting in the expansion of the Gryphon zone and the discovery of a new zone of uranium mineralization:
- Expansion of basement hosted uranium at the Gryphon zone – Seven of the 12 drill holes targeting extensions of the Gryphon zone intersected significant uranium mineralization. The zone was extended up-plunge, down-plunge, and up-dip on two sections, with the best result coming from drill hole WR-584B, which intersected 9.0% eU3O8 over 4.6 metres in the up-plunge direction.
- Discovery of a new zone of unconformity hosted uranium 800 metres to the south of Gryphon – 14 drill holes were completed to explore for other areas of mineralization along strike to the south of the Gryphon zone. The highlight was drill hole WR-597, which intersected 2.8% eU3O8 over 4.0 metres at the unconformity, 800 metres to the south of the Gryphon zone.
- Potential to add significant mineral resources at Wheeler River: The Gryphon zone is considered a highly prospective uranium discovery and has the potential to add significantly to the estimate of mineral resources at Wheeler River, which already includes the high grade Phoenix uranium deposit.
- Expansion of unconformity hosted uranium at the Mann Lake property: At Denison’s 30% owned Mann Lake property, operated by Cameco Corp. (“Cameco”), the 2015 winter program was designed to explore for extensions of uranium mineralization intersected in 2014. A total of 7,570 metres in 11 drill holes was completed during the winter program. Drill hole MN-066-01 produced the best result to date on the property, intersecting 9.8% eU3O8 over 3.5 metres at the unconformity, roughly 300 metres south of the zone of uranium mineralization identified in 2014.
- Encouraging exploration results from winter drilling at Hatchet Lake and Crawford Lake: A total of 12,613 metres was completed in 35 drill holes on 6 other properties operated by Denison. Highlights from the winter program include positive results at the Hatchet Lake project (December 31, 2014: Denison’s interest, 58.06%) and 100% owned Crawford Lake project. At Hatchet Lake, a zone of weakly mineralized, intense basement clay alteration, coincident with a strong fault zone within graphitic pelitic gneiss, was extended. At Crawford Lake, drilling confirmed the presence of an intense sandstone alteration zone associated with faulted graphitic pelitic gneiss along the entire 2,400 metre strike length of a conductor initially encountered in 2014.
- Stream of toll milling revenue continues to grow in the first quarter of 2015: Approximately 693,000 pounds U3O8 was produced for the Cigar Lake Joint Venture (“CLJV”) at the McClean Lake mill, in which Denison holds a 22.5% interest. Denison recognized toll milling revenue of $0.2 Million in the quarter. Production has ramped up significantly in the early part of the second quarter in line with the production plan, calling for six to eight million pounds U3O8 to be packaged during the year. The Company’s share of toll milling revenues for the year is expected to be approximately $2.1 Million.
- CAD$15 Million offering of flow-through common shares to finance 2016 Canadian exploration: The Company announced a “bought deal” private placement in April 2015, which will ensure its exploration programs are fully funded up to the end of 2016.
Click here to read the full Denison Mines Corp. (TSX:DML,NYSEMKT:DNN) press release.