Denison Mines Corp. (Denison Mines) said that a 7,500 meter drill program on the Wheeler River Property in the Athabasca Basin of northern Saskatchewan to further define the high-grade Phoenix discovery made in 2009. In order to accelerate the evaluation of this discovery, a 7,500 meter, 15 hole drill program has been initiated. This drill program will include eight drill holes around hole WR-273, which intersected 62.6% U3O8 over 6.0 meters.
The Wheeler River project is a joint venture among Denison Mines, who is the operator and holds a 60% interest, Cameco Corp. (30% interest) and JCU (Canada) Exploration Company, Limited (10% interest).
New Drill Program
The Phoenix uranium discovery has the potential to develop into a deposit of major importance in Saskatchewan. Four drill holes are also planned to further evaluate the area around WR-258 and WR-259, which intersected 11.8% U3O8 over 5.5 meters and 17.8% U3O8 over 4.5 meters, respectively. The balance of the program will test other priority targets along the one kilometer strike length of the Phoenix discovery. The budget for this drill program is $1.5 million and the results will be released following completion of the work.
Summer Drill Program
Assay results have been received for all the holes drilled this summer on the Wheeler River Property. A total of 11 holes (WR-270-280 inclusive) were completed during the summer program. Table 1 lists the drill hole assays with significant uranium intersections. Assay results for drill holes WR-270, 272, 273, 274, and 276 of the summer program have not only confirmed, but have substantially increased the high-grade down-hole probe results previously reported. Hole WR-275 was lost in altered sandstone just above the unconformity while five of the remaining six drill holes did not intersect significant mineralization, but did intersect intense alteration typically associated with uranium mineralization. The Phoenix zone has now been tested over a strike length of one kilometer, and remains open along strike.
Drill hole WR-279, intersected 0.26% U3O8 over 0.5 meters from a depth of 520.5 meters, in the basement, 117.0 meters below the unconformity, as well as graphite, which is considered important in the formation of Athabasca Basin deposits. This intersection may be indicative of the potential for basement-hosted mineralization up or down-dip from this drill hole. Strong alteration and structure encountered in hole WR-280 may be indicative of nearby mineralization. Further drilling will be carried out in these areas.
All drill holes reported to date were drilled at -80 degrees, and while the exact attitude of the mineralization remains uncertain, it is believed, at this time, that the mineralized intervals represent near true widths. All results are now reported at a 0.05% U3O8 cut-off.
The Wheeler River Property, which hosts the Phoenix discovery, is located in the Athabasca Basin between the McArthur River and Key Lake operations. This discovery has many geological similarities to the McArthur River deposit but is at a shallower depth.