Denison Mines (TSE:DML)(AMEX:DNN) announced Monday that it has signficantly increased uranium resources at its Hairhan deposit in Mongolia, part of the Gurvan Saihan joint venture.
Denison holds a 70% interest in the venture, with Mongolian state-owned entity Mon-Atom holding 15%, and Russian concern Geologorazvedka holding the remainder. The joint venture owns six exploration licenses, including Hairhan, totaling 181,574 hectares in the South Gobi region.
The updated NI 43-101 compliant resource estimate includes results from drilling in 2007 and 2008 in the central portion of the deposit, comprising of 278 holes totalling 46,000 metres.
As a result, the new report by Roscoe Postle Associates, estimated 12.26 million tonnes of indicated resources at a grade of 0.062% U, or 19.78 million pounds of U3O8, representing a 151% increase over the last study in February 2007. Inferred resources were calculated at 5.54 million tonnes grading 0.040% U, or 5.81 million pounds of U3O8, representing a 67% boost over 2007.
The company said the resources were estimated using a cutoff of 0.02% U over a minimum thickness of two metres.
Denison plans to advance the Hairhan exploration license to a mining license, and design a commercial scale acid in-situ recovery plant, as well as initiate site construction and development activities later this year. The company’s shares rose 9% on Monday to trade at $2.8 as of 3:13pm EST.