Denison Mines Inc.
TSX : DEN

Denison Mines Inc.

January 10, 2006 16:18 ET

Denison Reports on Midwest and McClean

TORONTO, ONTARIO--(CCNMatthews - Jan. 10, 2006) -

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

Denison Mines Inc. (TSX:DEN) reports the project description of the Midwest project was submitted to the Canadian Nuclear Safety Commission, the Environmental Assessment Branch of Saskatchewan Environment and the Canadian Environmental Assessment Agency on December 28, 2005. It is proposed that the Midwest deposit be mined as an open pit with further expansion of the JEB mill at McClean where the Midwest ore will be processed. The Midwest Project was previously considered and recommended to proceed, with conditions, in 1997 by the Joint Federal-Provincial Panel on uranium mining developments in Northern Saskatchewan. The Project was approved by the Federal and Provincial Governments in 1998, based on the Panel's recommendation. It is expected that an environmental assessment will be required. Denison anticipates that the environmental assessment and subsequent licensing will be completed in time to commence stripping of the Midwest deposit in 2008. A copy of the Midwest Project description is available on Denison's website.

The McClean Lake uranium facilities produced about 1,033,000 pounds of uranium oxide in concentrates (U3O8) during the three months ended December 31, 2005, of which Denison's share was 232,000 pounds. The aggregate production from McClean for 2005, which was scheduled to be 6,000,000 pounds, was 5,490,000 pounds or about 8.5% less than scheduled. Denison's share of production for the year was 1,235,000 pounds. The primary reason for the shortfall was the difficulty in recovering the high grade ore in the Sue C stockpile resulting in lower average feed grade to the mill during the last six weeks of the year. As outlined in Denison's Third Quarter Report 2005, uranium production in 2006 is estimated to be about 4 million pounds. At year end Denison had an inventory of approximately 382,000 pounds of packed U3O8.

Denison reports that it has amended and extended the loan agreement with Cogema Resources Inc. The maturity date of the loan facility has been extended to no later than December 31, 2010 and the amount of the facility has a maximum of CDN$22 million. This amount will be reduced by a minimum of 20% per year and a maximum amount equal to the amount that applicable uranium cash receipts exceeds applicable costs at McClean and Midwest. Denison has only a nominal amount outstanding under the facility and can draw upon the facility at any time on forty-five days' notice.

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 and in Mongolia. 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.

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