Denison Mines Corp. ("Denison" or the "Company")(TSX: DML)(AMEX:
DNN) today announced the discovery of three new zones of
mineralization at its Mutanga uranium project in Zambia. The new
zones were discovered during the drilling of the first three
targets of Denison's 2008 exploration program. The most significant
hole (DMD77600-03) included 12.5 metres of 1,204 ppm eU3O8 at a
depth of only 74 metres. The 2008 program includes an airborne
radiometric survey and a 26,000 metre drill program.
The three separate zones of mineralization were located by
widely spaced (generally 400 metre centres) drilling. The Dibwe
East Zone is located within three kilometres of the proposed
Mutanga pit boundary and is the most favorable of the three located
to date. Initial testing has returned several intersections, the
most significant being hole DMD77600-03 with 80.3 metres of 351 ppm
eU3O8 from 18.0 metres depth, including 12.5 metres of 1,204 ppm
eU3O8. Hole DMD78000-03, also at Dibwe East, intersected 24.2
metres of 314 ppm eU3O8 from 23.0 metres depth. For comparison
purposes, the average grade contained in the original scoping study
was 380 ppm, at a cut-off grade of 200 ppm.
Following the cessation of the development drill program in
July, a total of 35 targets were selected for drill testing on the
basis of geology, structure, and radiometrics. A total of 6,000
metres has been drilled to date in just over a month out of a
program total of 26,000 metres. Work has been confined to the Dibwe
Mutanga corridor. Drilling to date has tested the Dibwe East zone
with five holes that define an area approximately 1,200 metres by
800 metres. A second prospect along this trend, the Mutanga West
Zone is located approximately two kilometres southwest. It is
currently defined by one drill hole that returned 29.7 metres of
532 ppm eU3O8, including 11.8 metres of 1,049 ppm eU3O8. The
following table details the significant intersections.
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Zone Hole Number Easting Northing From To Width eU3O8
(m) (m) (m) Grade(i)
(ppm)
---------------------------------------------------------------------------
Dibwe
East DMD77600-03 8191180 660049 18.0 98.3 80.3 351
(Zone 1)
Including 74.4 86.9 12.5 1,204
---------------------------------------------------------------------------
DMD77400-02 8191265 659681 49.1 74.0 24.9 377
---------------------------------------------------------------------------
DMD77800-01 8191229 660251 62.0 74.7 12.7 608
---------------------------------------------------------------------------
DMD78000-03 8191624 660280 23.0 47.2 24.2 314
---------------------------------------------------------------------------
Dibwe
East DMC75600-03 8189459 658870 36.0 77.2 41.2 412
(Zone 2)
---------------------------------------------------------------------------
Mutanga DMC75600-03 8193300 658580 12.5 42.2 29.7 532
West
Including 30.4 42.2 11.8 1,049
---------------------------------------------------------------------------
(i)The grades reported herein are equivalent U3O8 (grades based on
down-hole radiometric probing at a cut-off grade of 100 ppm eU3O8;
geochemical corroborative assay results have not been received at this
time. All intersections and geological) interpretations are based on
vertical diamond drill core or reverse circulation drill chips only and
mineralized intervals may not represent true thickness.
Mineralization at Dibwe East and Mutanga West is similar to that
at the Mutanga deposit in that it is composed of coarse autunite in
fracture zones within an upper oxidized horizon overlying fine
grained disseminated mineralization within a pyritic reduced
zone.
Work during the first seven months of the year concentrated on
development drilling of the Mutanga and Dibwe deposits.
Approximately 41,742 metres of diamond and reverse circulation
drilling was completed in support of a 43-101 resource estimation
study, which is anticipated to be released in the fourth
quarter.
A seven tonne bulk sample was collected and transported to SGS
Laboratories in Perth, Australia, where it is currently undergoing
bench scale and pilot plant test programs to determine the optimum
mill process. In addition to the alkali leach circuit proposed in
the original scoping study, heap leach technology is also being
investigated. Results of this testwork are expected later this
year.
Other work currently underway on the Mutanga project includes
hydrogeological drilling to determine potential water sources,
condemnation drilling, environmental baseline monitoring and road
and power supply studies. Engineering aspects of the detailed
feasibility study are ongoing with the anticipated delivery of the
feasibility study in the first quarter of 2009.
The technical information contained in this press release
relating to the above described exploration activities is reported
and verified by William C. Kerr, Denison's Vice-President,
Exploration, who is a "qualified person" as defined in National
Instrument 43-101. For a description of the quality assurance
program and quality control measures applied by Denison during the
above described work, please see Denison's Annual Information Form
filed under the Company's profile on March 28, 2008 on the SEDAR
website at www.sedar.com.
About Denison
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 conventional uranium mills operating
in North America today. The Company also has a strong exploration
and development portfolio with large land positions in the United
States, Canada, Zambia and Mongolia.
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.
Forward looking statements include, but are not limited to,
statements with respect to estimated production; the development
potential of Denison's properties, including those of its joint
ventures; 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 28, 2008 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 year
ended December 31, 2007 and other continuous disclosure documents
filed since December 31, 2007 available at www.sedar.com for
further information relating to their mineral resources and mineral
reserves.
Contacts: Denison Mines Corp. E. Peter Farmer Chief Executive
Officer (416) 979-1991 Extension 231 Denison Mines Corp. Ron
Hochstein President and Chief Operating Officer (604) 689-7842
Denison Mines Corp. James R. Anderson Executive Vice President and
Chief Financial Officer (416) 979-1991 Extension 372 (416) 979-5893
(FAX) Website: www.denisonmines.com
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