Denison Mines (DML-T, DNN-X) has wrapped up the 2012 drill programs at its 60%-held Wheeler River uranium property in Saskatchewan, and plans to update the project’s resource estimate by year-end.
The Toronto-based firm published results from its recent drill efforts, and re-released holes completed earlier this year. The project saw a total of 58 holes, or 27,300 metres in 2012. Of the holes, 51 targeted mineralization at the Phoenix A and B deposits, while seven tested regional targets.
Drilling at Phoenix B focused on increasing the drilling density and pinpointing extensions of previously known mineralization. Highlights from Phoenix B included 4.4 metres grading 18.37% uranium oxide (U3O8) in hole 474, and 1.6 metres of 21.74% in hole 478.
At Phoenix A, the company said it intersected new mineralization along the interpreted cross structures in hole 446, which returned 1.5 metres of 1.32% U3O8, and in 454, which cut 5.5 metres of 0.43% U3O8 and 5 metres of 0.76% U3O8. It also hit new mineralization along strike to the northeast of the deposit.
While results from the Phoenix deposit were encouraging, Denison had little luck with regional drilling. Of seven holes totalling 3,555 metres on the three targeted areas, it reported no significant mineralization. The company plans to further test the three targets as early as next year.
The company is finalizing plans for the project’s 2013 drill campaign, noting it should be similar in size to this year’s program. Denison is also targeting the resource estimates for the Phoenix deposits later this year.
“While the infill drilling results could allow for an upgrade to the resource classification and a modest resource expansion, from the information provided it does not appear that a significant increase in known mineralization is likely,” BMO Capital Markets analyst Edward Sterck writes in a note. “BMO Research’s view is that Wheeler River lacks critical mass, and that resource expansion is needed.”
The project is located in the Athabasca basin in northern Saskatchewan.
Cameco (CCO-T, CCJ-N) holds 30% of Wheeler River, and JCU Exploration owns 10%.
Denison closed the day flat at $1.42 per share in Toronto. Sterck has a $1.80 price target on the company.
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