Denison Mines Corp. [DML-TSX; DNN-NYSE MKT] reported another high-grade uranium intersection near the Gryphon deposit on Denison’s 60%-owned Wheeler River property in the Athabasca Basin of northern Saskatchewan. Drill hole WR-641 intersected 3.9% eU3O8 over 9.2 metres, including 6.7% e U3O8 over 5.3 metres, approximately 160 metres to the northwest of the Gryphon deposit. Denison reports its initial exploration results as the radiometric equivalent uranium (eU3O8) from a total gamma down-hole probe. All intersections will be sampled for chemical U3O8 assay.
Drill hole WR-641 is located approximately 100 metres northwest of, and on the same section line as, WR-633D1 – a recent drill hole in which Denison previously reported an intersection of approximately 11 metres of basement-hosted uranium mineralization grading over 1% e U3O8, including intervals of 5.7% e U3O8 over 1.0 metre and 6.3% e U3O8 over 1.7 metres.
Denison’s President and CEO, David Cates, said, “We are very encouraged to see such promising follow up results to WR-633D1 – together these results suggest that we may be on to another significant body of mineralization right next to Wheeler River’s recently delineated Gryphon deposit. We are roughly half way through the 2016 winter drill program at Wheeler and we have plenty of metres left for further follow up on the mineralization immediately north of Gryphon and to continue to test targets southwest of the Gryphon deposit.”
The Gryphon deposit is hosted in basement rock and is estimated to contain inferred resources of 43.0 million lbs U3O8 at a grade of 2.3% U3O8. Gryphon is located on the Wheeler River property, approximately 3 km to the northwest of the Phoenix deposit, which is estimated to contain an additional indicated resource of 70.2 million lbs U3O8 at a grade of 19.1% U3O8. Together, the Gryphon and Phoenix deposits put Wheeler River amongst the largest and highest grade undeveloped projects in the Athabasca Basin.
High-Grade Uranium Mineralization in Drill Hole WR-641, Section 5200GP
Following the high-grade intersection in drill hole WR-633D1, a drill rig was dedicated to follow up in the area immediately north of Gryphon and further test the Basal Pegmatite unit. The follow up program commenced on the same section line as WR-633D1 in both the down- and up-dip directions. Additional mineralization and strong alteration was intersected in WR-633D2, 50 metres up-dip of WR-633D1, and indicated further drilling up-dip was warranted. Drill hole WR-641 was targeted approximately 50 metres up-dip of WR-633D2 and encountered 3.9% e U3O8 over 9.2 metres, including 6.7% e U3O8 over 5.3 metres. The high-grade mineralization in WR-641 was intersected approximately 180 metres below the sub-Athabasca unconformity and occurs within strongly altered pelitic gneisses that occur within the Basal Pegmatite unit. This represents the best result obtained to date within the Basal Pegmatite unit and is amongst the best basement intercepts since Gryphon was discovered in early 2014.
Denison’s Vice President of Exploration, Dale Verran, commented, “These recent high-grade intersections, along with the significant alteration and structure, emphasize the mineralization potential of the Basal Pegmatite unit, which occurs immediately footwall to the Gryphon deposit and has undergone little previous drill testing and remains open in all directions.”
Follow up drilling has yet to proceed along strike from the high-grade intercepts in WR-633D1 and WR-641, where the mineralization is open in both plunge directions. Furthermore, additional follow up drilling is warranted up-dip of WR-641 to test the extents of the high-grade mineralization and test additional graphitic pelites which exist in the Basal Pegmatite unit.
Denison is operator of the Wheeler River Project. Cameco Corp. [CCO-TSX; CCJ-NYSE has a 30% interest. JCU9Canada) Exploration Company Ltd. holds the remaining 10% interest. Denison has a number of other mineral assets in the Athabasca Basin including a 22.5% interest in the producing McClean Lake Mine. Refer to company press release for compete drill results and other information.