Denison Mines Corp.
TSX : DML
AMEX : DNN

Denison Mines Corp.

October 04, 2007 14:08 ET

Denison Updates Athabasca Basin Exploration Activities

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2007) - Denison Mines Corp. ("Denison" or the "Company") (TSX:DML)(AMEX:DNN) is pleased to provide an update on its summer exploration activities in the Athabasca Basin.

Denison has an active interest in a total of 35 projects in the Athabasca Basin and is the operator of 23 of these projects. Drilling is currently being carried out on five properties with twenty-five holes totalling 8,500 metres completed to date. Approximately 4,000 line kilometres of AEROTEM survey, 200 line kilometres of TITAN DC Resistivity survey, 180 line kilometres of boulder surveys and 354 lake sediment samples have also been carried out.

Drilling at the AREVA Resources Canada Inc. ("ARC") operated Mae Zone on the Midwest lease recommenced in early September, 2007 with 3,000 metres of drilling planned for this promising area. Five holes have been completed to date. The second hole, MW-753, testing the west extension of the Mae discovery, successfully confirmed a new, sandstone-hosted mineralized zone. As reported by ARC, four zones of low-grade mineralization, based on a cut-off grade of 0.1% eU, were intersected as follows:



-----------------------------------------------------
From To Length Grade
(%eU) at a 0.1% eU cutoff
-----------------------------------------------------
184.9 188.6 3.7 0.34
-----------------------------------------------------
196.9 200.3 3.4 0.76
-----------------------------------------------------
202.9 210.8 7.9 0.60
-----------------------------------------------------
218.0 224.3 6.3 0.33
-----------------------------------------------------


In addition, drill hole MW-755 was drilled 25 metres south west from MW-753, representing the furthest west section to date, and intersected 21.9 metres of 2.71% eU (or 3.20 % eU3O8). This mineralization potentially indicates a new high-grade zone which is currently open to the southwest.



-----------------------------------------------------
From To Length Grade
(%eU) at a 0.1% eU cutoff
-----------------------------------------------------
197.0 218.9 21.9 2.71
-----------------------------------------------------


At the Murphy Lake joint venture with Santoy Resources Ltd. ("Santoy"), three drill holes were completed totalling 1,152 metres. ML-07-01 displayed weak silicification throughout the sandstone and weak pyrite from 265 metres to holes end at 334 metres. Elevated radioactivity was intersected at 226 metres. Three holes totalling 856 metres were also completed at the Hatchet Lake joint venture with Santoy and evaluation of the results is continuing.

Two holes totalling 993 metres were drilled this summer on Denison's Park Creek option with Cameco Corporation. The holes were targeted to follow up a previously unknown structure intersected in 2006. The second hole successfully intersected this structure. This new structure is considered significant as a potential new target on the property.

At Wheeler River, a joint venture with Cameco and JCU Exploration (Canada) Limited, 2,329 metres have been drilled in six holes to date. Evaluation of the drill program results is ongoing and drilling will continue until early October. A TITAN Resistivity survey was also completed on the M Zone and in the K Zone area.

Three holes, totalling 1,048 metres were drilled on the Crawford Lake and Brown Lake properties, on which Denison is earning a 75% interest from Freeport-McMoRan Copper & Gold Inc. These holes were a follow up to a historical showing discovered in 1979 having an intersection of 1.42% U3O8 over 1.0 metre. The holes, although un-mineralized, intersected favourable alteration and structure suggesting proximity to mineralization.

Denison has identified a new target at the Kirsch Lake property, where Denison is earning a 51% interest from Consolidated Abaddon Resources Inc. A single hole was drilled to a depth of 811 metres on an untested geophysical anomaly. The hole intersected favourable graphitic pelites at a depth shallower than expected. Expanded geophysical surveys are proposed before further drilling can be undertaken.

Drilling is also underway on several of the Company's properties with JNR Resources Inc. ("JNR"). Two holes totalling 906 metres have been drilled at Bell Lake and a third hole is planned for completion prior to freeze up. Drilling has recently commenced at the JNR-operated Pendleton Lake project, and mobilization is underway at Moore Lake for a 2,000 metre program to test geological and TITAN Resistivity targets in the Maverick area.

One drill is presently working on our wholly owned Stevenson River project. Seven holes totalling 1,000 metres are proposed on geophysical targets in this area of shallow Athabasca cover. Three holes totaling 462 metres have been completed to date.

The grades reported herein are equivalent U or U3O8 grades based on down hole radiometric probing at a cut-off grade of 0.1% eU as reported by ARC; geochemical corroborative assay results have not been completed at this time. All intersections and geological interpretations are based on diamond drill core only and mineralized intervals may not represent true thickness. For a description of the quality assurance program and quality control measures applied by both ARC and Denison during the above described work, please see Denison's Annual Information Form filed under the Company's profile on March 30, 2007 on the SEDAR website at www.sedar.com.

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.

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 and development portfolio with large land positions in the United States, Canada, Zambia 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; exploration activities; 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.

Contact Information

  • Denison Mines Corp.
    E. Peter Farmer
    (416) 979-1991 ext. 231
    or
    Denison Mines Corp.
    Ron Hochstein
    (604) 689-7842
    or
    Denison Mines Corp.
    James Anderson
    (416) 979-1991 ext. 372
    (416) 979-5893 (FAX)
    Website: www.denisonmines.com