Denison Mines Corp.

Denison Mines Corp.

March 20, 2007 08:25 ET

Denison Announces Inferred Mineral Resource Estimates on its Arizona Strip Properties

TORONTO, ONTARIO--(CCNMatthews - March 20, 2007) - Denison Mines Corp. ("Denison" or the "Company") (TSX:DML) is pleased to announce that it has received independent resource estimates on its Arizona 1, Canyon and Pinenut deposits located in the Arizona Strip district in northeastern Arizona. Denison controls eight breccia pipe uranium deposits and one sandstone uranium deposit in the Arizona Strip district. These resource estimates were prepared by Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA") and reported in accordance with the requirements of National Instrument 43-101 ("NI 43-101"), focused only on the Arizona 1, Canyon and Pinenut deposits; resource estimates for the other deposits have not been prepared.

Arizona 1 has been partially developed. At Canyon all of the surface facilities for shaft sinking are in place and Pinenut is a fully developed mine currently on standby. In addition to these three properties Denison also controls the recently acquired EZ1, EZ2, DB and WHAT breccia pipe deposits, the Moonshine Springs sandstone type deposit (Company Press Release of February 27, 2007), and the Kanab North deposit which is a previously operated mine with minor quantities of mineralized material remaining.

In the report titled "Technical Report on the Arizona Strip Uranium Project, Arizona, U.S.A." dated February 26, 2007 (the "Report"), Scott Wilson RPA has estimated the mineral resources for the Arizona 1, Canyon and Pinenut as detailed below using a cut-off grade of 0.2% eU3O8.

Scott Wilson Roscoe Postle Associates, Inc.
Grade % eU3O8
Deposit Tons eU3O8 (lbs)
Arizona 1 70,300 0.68 956,000
Canyon 70,500 1.08 1,523,000
Pinenut 99,200 0.44 873,000
Notes: 1. CIM Definitions were followed for mineral resources.
2. Interval grades were converted from the gamma log data and
are therefore equivalent U3O8 (eU3O8).
3. Grade-shell wireframes at 0.2% eU3O8 were used to constrain
the grade interpolation. All material within the wireframes
is included in the estimate.
4. eU3O8 values were interpolated by kriging.
5. Wireframes were constructed with a minimum drill hole
sample length of 6 ft.
6. High eU3O8 grades were cut to 6% at Arizona 1, 10% at
Canyon, and 8% at Pinenut.
7. Blocks are 5 ft. by 5 ft. by 5 ft.

Breccia pipe mines of the Arizona Strip typically contain relatively high grade, vertically-oriented uranium mineralization over intervals of hundreds of feet at depths ranging from 500 to 2,000 feet. Denison's predecessor, Energy Fuels Nuclear Inc., explored, discovered, developed and mined in the Arizona Strip district from 1980 through 1994, producing over 19 million pounds U3O8 from the district.

All permits are in place for Arizona 1 to commence production. One of the Pinenut permits needs to be converted to a current version and Canyon requires additional permitting. Denison is planning on restarting operations at Arizona 1 this year to complete the shaft and begin mining in 2008. Permitting on the Canyon mine will also be moving forward as well as permitting for the EZ1 and EZ2 deposits.

Scott Wilson RPA was retained to independently estimate mineral resources at the Arizona 1, Canyon and Pinenut projects. Messrs. David A. Ross, P.Geo., and Thomas C. Pool. P.E., are the Qualified Persons pursuant to National Instrument 43-101 who are responsible for the resource estimates and the Report. Messrs. Ross and Pool have reviewed the technical contents related to the resource estimates contained in this release. A copy of the Report will be available on SEDAR (

All the historical drill holes on Denison's Arizona Strip breccia pipe properties were gamma logged and surveyed for deviation by qualified in-house personnel of Energy Fuels (a Denison predecessor company). This process was consistent with industry standards at the time and the work carried out by Energy Fuels is judged by Scott Wilson RPA to have been of superior quality. All of the basic data for calculation of quantities and grades of mineralized material for the Arizona 1, Pinenut, and Canyon deposits, originally by Energy Fuels and more recently by Scott Wilson RPA, were derived directly by gamma log interpretation. Scott Wilson RPA notes that all gamma log grades listed and discussed herein utilize an eU3O8 characterization. The "e" preceding U3O8 indicates that the respective grades are "equivalent" U3O8 grades based on an assumed direct correlation between gamma-ray intensity, as measured by the gamma logging tools, and uranium content. Such is not always the case and the correlation must always be checked by chemical and radiometric assays of core samples or by direct neutron activation means. Energy Fuels performed extensive checks on core and the available results seem to confirm the general correlation. The "e" prefix indicates that somewhat less reliance can be placed on the reported grades than if sufficient data was available to provide greater assurance on the correlation. It is at least partially for this reason that mineral resources listed herein are classified as inferred.

Denison Mines Corp. is the 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 combination of a diversified mining asset base with parallel ownership of milling infrastructure in highly politically stable jurisdictions has uniquely positioned the Company for growth and development into the future. The Company also has a strong exploration portfolio with large land positions in the United States, Canada 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, the expected effects of possible corporate transactions and the development potential of Denison's properties; the future price of uranium and vanadium; 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; risks related to international operations; actual results of current exploration activities; actual results of current reclamation 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 in the Management's Discussion and Analysis of the Company filed with the securities regulatory authorities in Canada and available at 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 of Denison Mines Inc. for the year ended December 31, 2006 and the Form 20F of International Uranium Corporation for the year ended September 30, 2005 and other continuous disclosure documents filed by each of them since those dates available at, 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
    Denison Mines Corp.
    Ron Hochstein
    (604) 689-7842
    Denison Mines Corp.
    James Anderson
    (416) 979-1991 ext. 372
    (416) 979-5893 (FAX)