Denison Provides U.S. Operations Update
July 31 2008 - 5:01PM
Marketwired
TORONTO, ONTARIO (TSX: DML)(AMEX: DNN) today provided an update
on its U.S. operations.
Denison has experienced delays in obtaining an Air Quality
Permit, the only remaining permit required to mine Arizona 1, from
the Arizona Department of Environmental Quality ("ADEQ"). The
application for the Air Quality Permit, which relates to surface
air quality, was submitted to the ADEQ in January 2008 after three
months of consultation. Concern was subsequently raised over dust
emission on public roads from the trucks hauling ore from the mine
and further information was provided. The ADEQ staff was very
timely in its response and indicated in June that all necessary
information had been provided and finalizing the Air Quality Permit
should not take long. Recently however, further information and
analysis have been requested, which will be provided to ADEQ over
the next six weeks. Unfortunately, Denison is unable to determine
whether this new information will be sufficient, or the length of
time ADEQ will require to process this information, and ultimately
issue the Air Quality Permit. As a result, the Company has adjusted
its 2008 production forecast to exclude any ore production from
Arizona 1, a reduction of 340,000 pounds from the earlier estimate
of 2008 production.
Ore production from the five Colorado Plateau mines and the Tony
M mine is meeting estimates. Production from Tony M at 300 tons per
day continues to increase as historical mine development workings
are dewatered and rehabilitated. On the Colorado Plateau production
is currently at 400 tons per day, and the reopening of the Beaver
Shaft is progressing on schedule with production anticipated in the
fourth quarter of this year. Head grades have been slightly lower
than planned. On the Colorado Plateau, the average head grade was
originally estimated at 0.20% U(3)O(8) and 1.20% V(2)O(5). Based on
production to date, head grades are averaging 0.18% U(3)O(8) and
1.05% V(2)O(5). At Tony M, average head grades are 0.15% U(3)O(8),
compared to an estimated average of 0.20% U(3)O(8). Changes in
mining procedures have been implemented to reduce dilution and
improve the head grade.
As a result of the delay in the receipt of the Air Quality
Permit, and the lower head grades, production in 2008 from U.S.
operations is now expected to be 1.0 to 1.2 million pounds.
Vanadium production from the Colorado Plateau mines is expected to
be 2.9 to 3.2 million pounds.
The start-up of the White Mesa mill has gone very well with
throughput currently at 1,500 tons per day and recoveries averaging
above 90%. Lack of experienced personnel has been an issue, but the
Mill has implemented a new shift rotation to improve training.
The decision has been made to add a parallel alternate feed
circuit at the White Mesa mill to run in conjunction with the
processing of conventional ore. The engineering for this circuit
will be completed in the fourth quarter and start-up of the circuit
is anticipated by mid-2009. There is currently about 175,000 pounds
of U3O8 contained in alternate feed material on site and another
350,000 pounds is expected to be delivered over the remainder of
the year. With ongoing expected shipments next year and beyond,
production from alternate feed is expected to be 150,000 - 250,000
pounds of U(3)O(8) on an annualized basis.
About Denison
Denison Mines Corp. is a 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. The Company also has ownership
interests in two of the four conventional uranium mills operating
in North America today. The Company has a strong exploration and
development portfolio with large land positions in the United
States, Canada, Mongolia and Zambia.
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 development
potential of Denison's properties, including those of its joint
ventures; the future price of uranium; 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; actual results of current
exploration 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 under the heading "Risk Factors" in
Denison's Annual Information Form dated March 28, 2008 available at
www.sedar.com and its Form 40-F available at www.sec.gov. 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 and the Form 40-F of the Company for the year
ended December 31, 2007 and other continuous disclosure documents
filed since December 31, 2007 available at www.sedar.com, for
further information relating to their mineral resources and mineral
reserves.
Contacts: 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) Website: www.denisonmines.com
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