Denison Mines Inc.
TSX : DEN

Denison Mines Inc.

April 10, 2006 08:00 ET

Denison Announces That Midwest Drilling Confirms Second Area of Significant Uranium Mineralization

TORONTO, ONTARIO--(CCNMatthews - April 10, 2006) -

Not for distribution to United States newswire services or for dissemination in the United States

Denison (TSX:DEN) is pleased to provide an update on exploration activities during the past winter exploration programme. Exploration was carried out by Denison as operator of the Wheeler River Joint Venture and by COGEMA as operator of joint venture projects Midwest, Wolly and McClean. Exploration will recommence after spring break-up on these and other projects.

Denison's 25.17% owned Midwest project already contains estimated recoverable reserves of 41.7 million pounds U308(1). Delineation drilling of the new discovery made in winter of 2005 that is about 3 kilometres north-east from the existing reserve and now termed the Mae Zone was carried out with very encouraging results. Seventeen holes were drilled, for a total of 3,527.5 metres at 25 metre line spacings and 12.5 metre spacings along the lines. The following table presents a summary of the results, which may be viewed in conjunction with a plan map of the Mae Zone in the Exploration/Midwest section of our website at www.denisonmines.com. The grades for the 2006 drilling are equivalent U308 grades based on downhole radiometric probing at a cutoff grade of 0.1% U308, as reported by COGEMA; geochemical corroborative assay results have not been completed at this time. However, these radiometric probes are industry standard procedures of determining downhole uranium grades and are routinely calibrated against known radiometric standards. Geochemical assays have been received for the drill holes carried out in 2005, and are presented in the accompanying table. The geochemical analyses are mostly lower but this is believed due to the generally poor core recovery through the mineralized zone.

While there is not enough information to confirm the dip, strike, thickness, or overall grade of the mineralization, a zone of significant mineralization has been intersected over a total strike length of at least 100 metres, at locations in the sandstone, at the unconformity and in the basement. The current interpretation at this time suggests that the zone is northeast to easterly striking and steeply dipping to the northwest. The mineralization remains open along strike and dip. The last two drill holes of the winter season, MW-691 and MW-692 returned the best results of the year's programme. These holes intersected strong mineralization of 15.3% and 12.4% eU308 over 12.5 and 6.1 metres, respectively. The strike extension could not be determined as drilling had to cease due to melting ice conditions.

Further drilling is necessary to delineate this zone, and drilling of this area is expected to continue this summer.



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Midwest Project--Mae Zone --Significant Intersections
(Greater than 1% U308)
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Holes drilled in 2005
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Hole # -Dip / Azi UTM E UTM N Elev UC Depth
(m)
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MW-658(i) -53/125 555148 6465358 481 266.7
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MW-659 -58/118 555148 6465359 481 249.1
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MW-660(i) -63/120 555147 6465360 481 235.3
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MW-661 -67/120 555146 6465360 481 226.7
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MW-662(i) -53/120 555147 6465363 484 265.8
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MW-663A -50/115 555149 6465361 482 280.2
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MW-664 -49/112 555179 6465427 483 275.4
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MW-666 -76/088 555100 6465265 485 221.6
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MW-668 -80/159 555100 6465265 485 215.4
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MW-670 -69/088 555100 6465265 485 226.9
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MW-672 -65.5/083 555100 6465265 485 231.1
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(i) Probe results previously reported


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Probe Geoch.
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Hole # Hole From To Interval % eU % % U308
Depth (m) (m) eU308
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MW-658(i) 323 no significant results over 1% eU308
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MW-659 304 229.2 236.3 7.1 5.3 6.2 5.4
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MW-660(i) 350 197.4 205.1 7.7 9.9 11.7 8.0
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MW-661 299 no significant results over 1% eU308
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MW-662(i) 329 215.7 233.4 17.7 0.97 1.1 1.2
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MW-663A 320 222.2 223.5 1.3 2.6 3.1 0.3
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MW-664 342 no significant results over 1% eU308
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MW-666 282 no significant results
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MW-668 309 210 217.3 7.3 1.99 2.3
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MW-670 318 no significant results over 1% eU308
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MW-672 303 no significant results over 1% eU308
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(i) Probe results previously reported




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Holes drilled in 2006
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Hole # -Dip / Azi UTM E UTM N Elev UC Depth
(m)
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MW-673 -90/NA 555159 6465268 480 208.9
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MW-674 -90/NA 555278 6465316 479 N/A
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MW-675 -90/NA 555228 6465294 479 207.9
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MW-676 -90/NA 555311 6465355 479 201
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MW-679 -90/NA 555272 6465325 479 202
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MW-680 -90/NA 555265 6465335 479 198
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MW-681 -90/NA 555298 6465341 479 205.2
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MW-682 -90/NA 555259 6465305 479 205.6
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MW-683 -90/NA 555325 6465343 479 205.8
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MW-684 -82/332 555293 6465296 479 205.1
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MW-686 -82/332 555264 6465295 479 207
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MW-687 -90/NA 555330 6465331 479 204
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MW-688 -82/332 555244 6465281 479 208.7
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MW-689 -87/152 555303 6465330 479 204.5
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MW-690 -87/152 555348.5 6465353.6 479 202.7
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MW-691 -87/152 555278.7 6465316.1 479 204.6
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MW-692 -81/152 555317.5 6465348.1 479 207
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Hole # Hole Depth From To Interval % eU % %
(m) (m) eU308 U308
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MW-673 212 Hole Lost
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MW-674 185 Hole Lost
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MW-675 267 171.0 173.5 2.5 1.2 1.4
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MW-676 233 rods broke, probed to 176 only
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MW-679 210 186.1 193.8 7.7 1.6 1.9
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MW-680 308 no significant results over 1% eU308
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MW-681 269 no significant results over 1% eU308
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MW-682 275 189.0 190.9 1.9 1.0 1.2
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191.1 198.3 7.2 8.0 9.5
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MW-683 282 192.2 196.6 4.4 1.2 1.4
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MW-684 285 no significant results over 1% eU308
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MW-686 309 189.5 195.0 5.5 1.5 1.8
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195.4 198.5 3.1 1.9 2.2
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204.7 206.5 1.8 1.6 1.9
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MW-687 244.5 rods broke, 8 metres unprobed mineralization
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MW-688 292 203.8 209.3 5.5 1.7 2.0
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MW-689 289 203.0 211.8 8.8 3.0 3.5
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239.4 240.3 0.9 2.6 3.1
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MW-690 242 no significant results over 1% eU308
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MW-691 240 192.2 204.7 12.5 13.0 15.3
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MW-692 237 195.8 201.9 6.1 10.5 12.4
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At the Wolly Joint Venture, an 11 hole drill programme targeted interpreted fault zones in the area east of the McClean Facility complex on the basis of ground DC resistivity surveys completed in the fall of 2005. No significant intersections were made, and other areas of the property are being prepared for an intense exploration programme in 2006 and 2007.

At the 22.5% owned McClean property, surface exploration was postponed as the drill rig was required at the Midwest project. Several high priority targets will be drill tested as soon as conditions permit in the summer. The Bena Lake zone, a new target area discovered in the winter of 2005 and which returned, from the best hole, 0.53% eU308 over 0.5 metres near a 23 metre unconformity offset, will be followed up. In addition, infill drilling will take place in the area of the Sue E pit. Approximately 7 million pounds(2) of U308 have been estimated and classified as inferred resources beneath the currently designed open pit, and infill drilling on 12.5 metre line spacings is planned to assess continuity for the purpose of reclassifying these resources as reserves.

At the 40% owned Wheeler River Joint Venture, where Denison will earn a further 20% interest this year, an eight hole, 3,748 metre programme tested the M zone this past winter. The M zone was discovered in the mid 1980's, associated with a mineralized conductor at a depth of 400 metres over a strike length of several kilometres, and was drilled at 200 metre spacings. The current programme returned sub-economic mineralization both at the unconformity and in the overlying sandstone. With the completion of this winter work, Denison is planning on returning to the quartzite ridge this summer. The last hole in the 2005 programme discovered anomalous uraniferous mineralization at the unconformity. In addition, a number of high priority geological and geochemical targets with associated geophysical conductors are planned for drill testing.

For a description of the quality assurance program and quality control measures applied by Denison during the above described work, please see Denison's "Annual Information Form" filed March 7, 2006 on the Sedar website at www.sedar.com.

The technical information contained in this Press Release relating to the above exploration activities is reported by William C. Kerr, Denison's Vice-President, Exploration and Development, who is a "qualified person" as defined in NI 43-101.

Denison Mines Inc. is also pleased to report that it has received a new Technical Report dated March 31, 2006, on the Mineral Resources on its 22.5% owned McClean Lake property in the Athabasca Basin in Northern Saskatchewan.

The Report entitled "Technical Report on the Sue D Uranium Deposit Mineral Resource Estimate, Saskatchewan, Canada" (the "Report") identifies Indicated Mineral Resources for the Sue D deposit totaling 122,800 tonnes at an average grade of 1.05% U3O8 containing 2.8 million pounds of U3O8 (Denison's share 0.6 million pounds) and Inferred Mineral Resources totaling 24,240 tonnes at an average grade of 0.39% U3O8 containing of 0.2 million pounds (Denison's share 0.05 million pounds) based on a 0.1% U3O8 cutoff grade. The McClean Lake Joint Venture, in which Denison has a 22.5% interest, holds mineral claims and leases covering areas that host six uranium deposits including Sue A, B, D, E, McClean North and Caribou. The Sue D deposit, lying between Sue C and Sue E, was discovered during exploration drilling in 1989. The deposit lies at a depth of approximately 155 metres to 220 metres and approximately 75 metres to 110 metres below the unconformity. Additional drilling has been recommended to better define the subvertical basement fault structures to further evaluate these resources.

The Report was prepared by Roscoe Postle Associates Inc ("RPA"), who was retained by Denison in January 2006 to independently review and estimate the Mineral Resources of the Sue D uranium deposit in accordance with the requirements of National Instrument 43-101 ("NI43-101"), Companion Policy 43-101CP and Form 43-101F of the CSA. RPA is an independent firm of geological and mining consultants, with offices in Toronto, Vancouver and Rouyn, that has been working in the field of Mineral Resources and Mineral Reserves estimation since 1985.

James W. Hendry, P.Eng. and Richard E. Routledge, M.Sc., P.Geol. are the Qualified Persons in accordance with the requirements of NI43-101 who are responsible for the Report.

Caution Regarding Resource Estimates

Mineral resources are not mineral reserves, and do not have demonstrated economic viability. The extent to which resources may ultimately be reclassified as proven or probable reserves depends, in part, on the demonstration of their profitable recovery. The evaluation of resources is influenced by economic and technological factors, which may change over time. Resources figures included herein have not been adjusted in consideration of these risks and, therefore, no assurances can be given that any resource estimate will ultimately be reclassified as proven or probable reserves. The resource figures included are estimates, and some estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While Denison believes that the resource estimates set out above are well established and the best estimates of Denison's management, by their nature resource estimates are imprecise and depend, to a certain extent upon statistical inferences, which may prove unreliable.

About Denison

Denison Mines Inc. is a uranium exploration, development and production company whose principal assets are a 22.5% interest in one of the world's largest uranium facilities at McClean Lake in Northern Saskatchewan and its 25.17% interest in the Midwest Uranium Project. It is actively engaged in exploration activities in Canada's Athabasca Basin, in Mongolia and through its 12% interest in Energy Metals, in Australia. It is also engaged in mine decommissioning and environmental services through its Denison Environmental Services division and provides management services to Uranium Participation Corporation. Additional information on Denison is available on SEDAR at www.sedar.com and on Denison's website at www.denisonmines.com.

(1) Reference is made to the "Technical Report on the Midwest Uranium Deposit Mineral Resource and Mineral Reserve Estimates, Saskatchewan, Canada" dated June 1, 2005, revised on February 14, 2006, which is available on the Sedar website at www.sedar.com.

(2) Reference is made to the "Technical Report on the Denison Mines Inc. Uranium Properties, Saskatchewan, Canada" dated November 21, 2005, as revised on February 16, 2006, which is available on the Sedar website at www.sedar.com.


Contact Information

  • Denison Mines Inc.
    E. Peter Farmer
    President and Chief Executive Officer
    (416) 979-1991 Ext. 231
    or
    Denison Mines Inc.
    James R. Anderson
    Executive Vice-President and Chief Financial Officer
    (416) 979-1991 Ext. 372
    www.denisonmines.com