Denison Announces 205 Million Pound Uranium Historical Resource Estimates on its Elliot Lake Properties -
June 19, 2007 - 8:17 AM EDT
Denison Mines Corp. -
("Denison" or the "Company") (TSX: DML)(AMEX: DNN) is pleased to announce that it has received an independent review and compilation of the resource estimates on its uranium deposits located in the Elliot Lake area of northern Ontario. The Elliot Lake complex is estimated to contain an historical resource estimate of over 205 million pounds of U3O8.
In the report entitled "Technical Report on the Elliot Lake Property, Elliot Lake District, Ontario Prepared for Denison Mines Corp." dated June 18, 2007 (the "Report"), Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA") has compiled the historic mineral resources for the Elliot Lake deposits at a variety of different cut-off grades. Scott Wilson, RPA, has recommended that the historical resource estimate be reported using a 0.80 lb/ton cut-off grade which represents the undiluted cut-off grade for the underground leaching over the last years of production. This may not represent the current economic cut-off grade. Based on this cut-off, at this grade and tonnage, the report documents a total of over 205 million pounds U3O8 classified as historical resources as remaining in the Elliot Lake complex. The historical estimate, reported in accordance with the requirements of National Instrument 43-101 ("NI43-101"), is based on historical mine records at the time of the shutdown of the mines; no subsequent work has been carried out since 1992.
---------------------------------------------------------------------------
ELLIOT LAKE HISTORICAL RESOURCE ESTIMATES
Developed and Undeveloped
(All tons and lbs x 1,000,000)
---------------------------------------------------------------------------
Primary Pillar Total Primary & Total
Mining Mining Pillar Mining Mineralization
Remaining Remaining Remaining Remaining
---------------------------------------------------------------------------
Tons Lb/t Tons Lb/t Tons Lb/t Tons Lb/t Lbs
U3O8 U3O8 U3O8 U3O8 U3O8
Developed 33.7 1.20 19.6 1.55 53.3 1.32 89.2 1.29 115.0
Undeveloped 45.1 1.13 11.3 1.13 56.3 1.13 80.5 1.13 90.0
---------------------------------------------------------------
Total 79.1 1.17 31.1 1.39 110.2 1.23 169.7 1.21 205.0
---------------------------------------------------------------------------
Notes:
1. CIM definitions are not used.
2. Historic resource estimates are reported at cut-off grades of 0.8 lb/t
U3O8 (0.04% U3O8).
3. A minimum width of 6 feet was used.
4. The total primary and pillar mining represents the "estimated
recoverable resource" based on the mining methods employed at the Elliot
Lake facility in 1992.
5. The total mineralization remaining represents the total amount of
mineral remaining in the ground without applying mining recovery
factors.
6. The historic resource estimates cannot be verified and the estimates are
not necessarily indicative of the mineralization on the property.
In the opinion of Scott Wilson, RPA, although the historical estimate cannot be verified, the estimate is considered to be reasonable based on the estimation methods at the time. The current historical resource, without access to the drilling information, cannot be classified directly under the CIM classification standards incorporated under NI 43-101. The mineral resource estimates were originally classified for the purposes of the Report as Developed and Undeveloped. Developed resources are those resources that have been developed for mining and represent total mineralization remaining after partial extraction during the previous mining operations. Undeveloped resources are located in blocks beyond existing development workings where no mining has taken place.
Denison operated a significant underground mine complex in the Elliot Lake area from 1957 through to 1992 and produced over 147.3 million pounds U3O8 from 69.4 million tons of ore at an average grade of 2.25 pounds per ton. The Elliot Lake mining complex operated by Denison was closed in 1992 and decommissioning operations have continued since that time. The mine was primarily a room and pillar underground operation, with considerable production from bacterial leaching in the later years. While the underground workings are flooded and all shaft and ramp openings capped in accordance with applicable regulations, all underground haulage and passageways are assumed to be open. Although good infrastructure is present, the mill and tailings areas have all been decommissioned and reclaimed. Denison notes that it has no plans at this time to commence mining operations at Elliot Lake; however, the Company will continue to review the project in light of the continuing strength in the uranium market.
The Scott Wilson, RPA, report has documented historical resources only; no original data was available to audit, and there can be no guarantee that these resources will ever be converted to reserves. Denison is not treating these historical resources as current as they have not passed any economic test and are not considered to be relevant to current economic assessment parameters. Because no original data was available for audit, the historical resource estimate cannot be relied upon in attributing value to the resources and these resources do not have demonstrated economic viability. Much further work remains to be done to further evaluate this property.
Scott Wilson, RPA, was retained to independently review and audit the mineral resources at Elliot Lake project. Messrs. Lawrence B. Cochrane, Ph.D, P.Eng., and Leo R. Hwozdyk, P.Eng., are the Qualified Persons pursuant to National Instrument 43-101 who have verified the data disclosed and were responsible for the Report. Messrs. Cochrane and Hwozdyk have reviewed the technical contents related to the resource estimates contained in this release. A copy of the Report will be available on SEDAR (www.sedar.com).
Denison Mines Corp. is a premier intermediate 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. Further, the Company has ownership interests in two of the four uranium mills operating in North America today. The Company also has a strong exploration portfolio with large land positions in the United States, Canada and Mongolia. Correspondingly, the Company has one of the largest uranium exploration teams among intermediate uranium companies.
Cautionary Statements
This news release contains "forward-looking statements", 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 Mines Corp. ("Denison").
Forward-looking statements include, but are not limited to, statements with respect to estimated production; the development potential of Denison's properties; the future price of uranium; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; currency exchange rate fluctuations; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; and limitations on insurance coverage. 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".
Forward-looking statements are based 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, including but not limited to risks related to: unexpected events during construction, expansion and start-up; variations in ore grade, tonnes mined, crushed or milled; delay or failure to receive board or government approvals; timing and availability of external financing on acceptable terms; actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of uranium and vanadium; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in the completion of development or construction activities, as well as those factors discussed in or referred to under the heading "Risk Factors" in Denison's Annual Information Form dated March 27, 2007 available at www.sedar.com and its Form 40-F available at www.sec.gov. Although management of Denison has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Denison does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. Readers should refer to the Annual Information Form and the Form 40-F of the Company for the fifteen month period ended December 31, 2006 and other continuous disclosure documents filed since December 31, 2006 available at www.sedar.com, for further information relating to their mineral resources and mineral reserves.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: This news release uses the terms "Measured", "Indicated" and "Inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
Contacts:
Denison Mines Corp.
E. Peter Farmer
(416) 979-1991 ext. 231
Denison Mines Corp.
Ron Hochstein
(604) 689-7842
Denison Mines Corp.
James Anderson
(416) 979-1991 ext. 372
(416) 979-5893 (FAX)
Website:
denisonmines.com
Source: Market Wire (June 19, 2007 - 8:17 AM EDT)
News by QuoteMedia
www.quotemedia.com
app.quotemedia.com |
