Denison Mines increases resources at Hairhan uranium deposit

Denison Mines (TSE:DML)(AMEX:DNN) announced Monday that it has signficantly increased uranium resources at its Hairhan deposit in Mongolia, part of the Gurvan Saihan joint venture.

Denison holds a 70% interest in the venture, with Mongolian state-owned entity Mon-Atom holding 15%, and Russian concern Geologorazvedka holding the remainder. The joint venture owns six exploration licenses, including Hairhan, totaling 181,574 hectares in the South Gobi region.

The updated NI 43-101 compliant resource estimate includes results from drilling in 2007 and 2008 in the central portion of the deposit, comprising of 278 holes totalling 46,000 metres.

As a result, the new report by Roscoe Postle Associates, estimated 12.26 million tonnes of indicated resources at a grade of 0.062% U, or 19.78 million pounds of U3O8, representing a 151% increase over the last study in February 2007. Inferred resources were calculated at 5.54 million tonnes grading 0.040% U, or 5.81 million pounds of U3O8, representing a 67% boost over 2007.

The company said the resources were estimated using a cutoff of 0.02% U over a minimum thickness of two metres.

Denison plans to advance the Hairhan exploration license to a mining license, and design a commercial scale acid in-situ recovery plant, as well as initiate site construction and development activities later this year. The company's shares rose 9% on Monday to trade at $2.8 as of 3:13pm EST.

Denison Mines Corp. is an 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, Mongolia and Zambia.


Source:www.denisonmines.com