Denison Mines (TSX:DML,NYSEAMERICAN:DNN) has announced the discovery of uranium mineralization at its Waterbury Lake property in the Athabasca Basin region of Northern Saskatchewan.

The Canadian uranium explorer found the mineralization during a planned summer drill program at the site. The Waterbury Lake project is located just 3 kilometers from Denison’s Huskie zone.

According to the company, the basement-hosted uranium mineralization was intersected in two drill holes, returning mineralized assay intervals of 0.43 percent U3O8 over 1 meter in drill hole WAT18-478, and 0.2 percent U3O8 over 0.5 meters, 0.45 percent U3O8 over 0.5 meters and 0.31 percent U3O8 over 0.5 meters in drill hole WAT18-479.

“These drill holes were designed as an initial test of a geological concept — that high-grade uranium mineralization occurs at the intersection of the interpreted regional Midwest structure with cross-cutting, graphite-bearing, structural corridors,” Dale Verran, Denison’s vice president of exploration, said in a press release.

The favorable drill results further emphasize the quality of uranium in the Athabasca Basin. In fact, three of the latest uranium stocks to watch from Raymond James have projects located in the region.

“We are very encouraged by these early results along the GB trend, which has validated the concept by identifying a mineralized system in proximity to the interpreted structural intersection,” Verran added.

He continued, “[w]e look forward to following up on these results with further drilling, and the potential to discover high-grades along strike at GB or along the mineralized Oban trend.”

Denison has been making other headway in the Athabasca Basin lately, announcing earlier this month that it would pay Cameco (TSX:CCO,NYSE:CCJ), Canada’s leading uranium producer, C$16 million to acquire its minority interest in the Wheeler River project.

Earlier this summer, Cameco indefinitely shuttered its McArthur River mine and Key Lake milling operations in Saskatchewan.

Denison’s share price was up 4 percent on Monday (September 17), trading at C$0.73.

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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.