Denison Mines Corp. announce a NI 43-101 resource estimate on its Mutanga project in Zambia. Measured and Indicated resources are estimated at 2.0 and 5.8 million pounds U3O8 respectively and Inferred resources exceed 13 million pounds U3O8.
The resource estimate is based on 45,600 metres of development drilling carried out by Denison from late 2007 through to mid-2008. Results of the highly successful program significantly exceed pre-NI 43-101 historical estimates(i) for this project of 13.7 million pounds U3O8.
Following completion of the development drilling program, a 26,000 metre exploration program was initiated at Mutanga. As previously announced (September 18, 2008), three new large mineralized zones have been discovered so far in the ongoing drill program. Mineralization is similar to that of the main Mutanga deposit and could potentially add to the existing resource base. Significant further exploration upside remains on the project.
Denison has recently received formal notification that its license renewal application has been successful. Engineering work is now in progress for the preparation and completion of a Definitive Feasibility Study, currently scheduled for a target date of April, 2009 and submittal of a mining licence application. Earlier scoping studies indicate the potential for a relatively low cost, open pit mining operation utilizing alkali leach processing for extraction.
Mutanga is part of an extensive project development pipeline held by Denison. Adding to its current production profile and structured for strategic growth, the Company has a number of new developments slated to come on-stream over the next several years. In addition, the Company has enjoyed considerable exploration success on a number of other projects in its diversified portfolio, most notably the high grade Wheeler River project in the Athabasca Basin near the MacArthur River mine in northern Saskatchewan. The Wheeler River project is the most significant new discovery in the Athabasca Basin in many years (please see news release dated February 17, 2009).
The Mutanga resource estimate was prepared by CSA Global (UK) Pty Ltd (”CSA”) in accordance with the requirements of National Instrument 43-101 (”NI 43-101″). In the report titled “NI 43-101 Technical Report Mutanga Uranium Project, Zambia” (the “Report”), CSA has estimated the mineral resources for the Mutanga project deposits using a cut-off grade of 100 ppm U3O8 and 200 ppm U3O8.
CSA was retained to independently review and audit the mineral resources at the Mutanga projects. Malcolm Titley, BSc, MAusIMM, MAIG is the Qualified Persons pursuant to National Instrument 43-101 who has verified the data disclosed was responsible for the Technical Report and reviewed the technical contents related to the resource estimates contained in this release.