URANIUM: Denison says updated Gryphon estimate nearly doubles

The camp at Wheeler River. (Image: The Northern Miner)

SASKATCHEWAN - Toronto-based Denison Mines Corp. says the indicated mineral resource at the Wheeler River project has grown 88% with the latest updated numbers for the Gryphon uranium deposit. Wheeler River is located on the eastern edge of the Athabasca Basin. It is a joint venture of Denison (66.3% owner and operator), Cameco and JCU (Canada) Exploration.

The Gryphon deposit is now estimated to contain 61.9 million lb. of uranium oxide (1.6 million tonnes at 1.71% U3O8) in indicated resources plus 1.9 million lb. (73,000 tonnes at 1.18% U3O8) in inferred resources.

The second deposit at the project - Phoenix - contains 70.2 million lb. of uranium oxide (166,00 tonnes at 19.1% U3O8) in the indicated portion of 1.1 million lb. (9,000 tonnes at 1.7% U3O8).

Denison recently advanced Wheeler River to the pre-feasibility stage. The preliminary economic assessment using a uranium price of US$44/lb. gave the project a pre-tax net present value of C$513 million and internal rate of return of 20.4%. Cash operating costs for material from the Gryphon deposit is pegged at US$14.28/lb. and from Phoenix at US$22.15/lb.

Details about the Wheeler River project are available at www.DenisonMines.com.