Denison to increase Wheeler interest

Denison Mines (DEN-T) has concluded a second agreement to increase its exposure to uranium exploration in northern Saskatchewan.

The company has agreed with its joint venture partners at the Wheeler River exploration project, near Key Lake, to earn an additional 20% interest over and above its current 40%. To earn the extra interest, Denison would take on expenditure commitments of $3 million in three years to earn 10%, and $4 million in the next three years to earn the next 10%.

Currently Cameco (CCO-T) holds just over 45% of the property; the remaining 15% is held by Japan-Canada Uranium, a consortium of Japanese utilities and industrial conglomerates including Mitsubishi (which owns 50% of Japan-Canada). The other partners have yet to decide what contribution each will make to the interest earned by Denison.

The property consists of 120 sq. km immediately west of the McArthur River mine, operated by Cameco. A quartzite “ridge” feature in the early Proterozoic basement rocks at McArthur, believed to have acted as a hydraulic barrier to mineralizing fluids there, also extends onto the Wheeler property.

The sandstone in the area is deep, as much as 550 metres, which has been an obstacle to exploration in the past. Denison has hopes for geochemical surveys in the overlying sandstone as guides to uranium mineralization.

Denison also recently reached an agreement with its partners at the McClean Lake mine to earn in on the partners’ land package surrounding McClean Lake.