Denison Mines Inc.
TSX : DEN

Denison Mines Inc.

October 28, 2005 15:14 ET

Denison Reports Results of Test Mining Program

TORONTO, ONTARIO--(CCNMatthews - Oct. 28, 2005) -

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

Denison Mines Inc. (TSX:DEN) announced today that the summer campaign of the test mining program at McClean Lake, conducted by operator COGEMA Resources Inc., has been completed. The specialty equipment (namely the mining tools and the mining pipes, engineered and manufactured exclusively for the Pilot Test Program) has been successfully commissioned and to some extent tested in the sandstones.

The test mining program is being conducted to evaluate two mining technologies: blind shaft mining (also called blind boring) and hydraulic borehole mining (also known as jet boring). Both of these technologies involve drilling an access hole through the sandstone and glacial overburden and extracting the underlying ore material from surface. Briefly, blind shaft mining uses a mechanical device (a reaming head) to cut material and enlarge the mining cavity in the ore horizon, whereas hydraulic borehole mining utilizes a high-pressure water jet. The primary purpose of the evaluation is to improve the economics of these mining technologies as a technique for recovering uranium ore, particularly from smaller deposits.

The achievements of the test mining were significant enough to convince Denison to support Cogema's recommendation that the test mining should proceed and, pending regulatory approval, to drill and test mine from 15 holes in 2006 with anticipated production of 1 million pounds of U3O8 next year.

While much was achieved during the testing, there were numerous problems with the actual drilling. The penetration rates in the sandstone were much lower than what had been anticipated because of the inadequacy of the rig and its mechanical problems. The contractor managed to drill a hole to the target depth but was unable to set the casing because of the excessive deviation of the hole.

The achievements from this summer's test mining program include:

- The construction of facilities that will require very few improvements to be fully operational on a large scale

- The specialty equipment has been developed, manufactured and commissioned.

- The overall system has proved to work, and the water flows between the hole, the ponds and the ore pad can be easily controlled during operation.

- Design issues of the specialty tooling have been sufficiently identified to permit desirable modification before commencement of the 2006 mining program.

- The functioning of the lifting of the ore through the reverse circulation system and the cutting mechanisms of the rock by an air pressure water jet in submerged conditions are now much better understood although additional field work is required.

- The air shroud (or air sheath) surrounding the nozzle has been carefully studied and design work of a new air shrouded nozzle will commence shortly.

- The air-lift technique has proved its capabilities in the field and further modifications will be reviewed to optimize the technique to reduce energy consumption.

Denison looks forward to a very successful conclusion to the test mining program next year.

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