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« Japan Struggles With Tainted Reactor Water | Main | SA won’t stipulate where nuclear solution is sourced – Peters »
Tuesday
Feb282012

Denison Mines Corp: the first 11 drill hole Results of Winter programme

 We purchased shares at $1.66 on the 5th January 2009 when we wrote this about Denison Mines Corporation (DNN):

Firstly Denison Mines Corporation; this is a company that we tried to buy when the uranium market was far more buoyant but we failed to do so as our bids were too miserly. This stock is well thought of and has many supporters and at one time traded at around $14.00 per share. You could argue that we are late coming in at this time as this tiny sector has suddenly spiked and you would be correct in thinking that way. However we wanted to see some signs of life before making any more acquisitions and hopefully this recent upsurge is the beginning of a revival for uranium stocks. There could well be some profit taking by those who moved early but in twelve months or so we expect to Denison trading much higher than the price we have just paid for it. This is our first purchase of Denison but we do hope to build a bigger position going forward.

Today the company has released the following update: results from the first 11 drill holes of the 2012 winter drill program on its 60% owned Wheeler River property in Saskatchewan. Significant results included drill hole WR-435 which returned 25.8% eU3O8 over 4.9 metres and WR-437 which intersected 3.7 metres grading 27.0% eU3O8, both of which were in Zone A of the Phoenix Deposits.

Phoenix Zone A

As follow-up to mineralized holes WR-401 (38.5% eU3O8 over 8.4 metres) and WR-404 (3.5 metres grading 4.17% U3O8) from Denison's 2011 summer drilling program, drilling this winter has successfully delineated an east-west mineralized extension diverging from the regional northeasterly strike of Phoenix Zone A.

Drill holes WR-435 and WR-437 tested the continuity along strike of the high grade intersections in WR-401 and WR-404 and were drilled approximately 15 and 30 metres respectively to the northeast of WR-404. WR-433 was drilled approximately 30 metres to the southwest and deviated from its proposed target, and consequently did not encounter any significant mineralization. Further drilling will be conducted in this area to test the strike extension to the southwest and for width to the northwest. This also opens more potential target areas along the western flank of Zone A.

The results from the first 11 holes of the 2012 winter program are shown below:

Hole Number

Zone

Depth From (m)

Depth To
(m)

Interval Thickness (m)

Grade (%eU3O8)

GT 
Grade X Thickness

WR-432

A

NO SIGNIFICANT RESULTS

WR-433

A

NO SIGNIFICANT RESULTS

WR-434

A

NO SIGNIFICANT RESULTS

WR-435*

A

410.1

415.0

4.9

25.8

126.3

WR-436

A

NO SIGNIFICANT RESULTS

WR-437*

A

409.2

412.9

3.7

27.0

100.0

WR-438*

A

407.9

408.9

1.0

4.2

4.2

WR-439

A

NO SIGNIFICANT RESULTS

WR-440

A

NO SIGNIFICANT RESULTS

WR-441

A

NO SIGNIFICANT RESULTS

WR-442

A

NO SIGNIFICANT RESULTS

* 1.0% eU3O8 cut-off grade

 

 

 

The foregoing drill results are calculated using down hole geophysical probes which measure natural gamma radiation, from which an indirect estimate of uranium content can be made. The result is referred to as "eU3O8" for "equivalent U3O8".

Drill hole WR-438 was drilled to test for an extension of mineralization to the northeast of WR-249 (1.72% U3O8 over 1.4 metres). The mineralization is similar in thickness and magnitude to those holes that initially tested and eventually led to the discovery of the Zone A Extension. Further drilling is planned to fully understand the significance of this mineralization.

Drill holes WR-432 and WR-439 were drilled 15.0 and 25.0 meters respectively to the south of the Zone A Extension. Although the geology and structure continue, further drilling is required to define the limits of mineralization.

Drill holes WR-434, WR-436 and WR-441 were all drilled along the eastern margin of Zone A, which have similar geochemical and structural signatures to that of Zone A Extension. Although inferred cross structures were encountered, no significant mineralization was intersected in these holes.

Drill hole WR-440 was a re-drill of drill hole WR-190A which was drilled in 2003 to test the WS conductive trend. WR-190A was lost prior to reaching the unconformity due to bad ground conditions. Based on projected structural information and the initial EM signature, it was thought a possible parallel conductor to the Phoenix (WS) conductor may lie in this area. Although no mineralization or parallel conductor was intersected in WR-440, significant sandstone alteration and structures indicate that another conductor may lie further to the east requiring future follow up.

Drilling with two drills is continuing with a plan to drill an additional 6,000 to 8,000 metres during this 2012 winter program.

Denison Mines Corporation trades on the AMEX under the symbol of DNN and on the Toronto Stock Exchange as DML.

Market capitalization is $742.14 million, average volume ranging from 1 - 2 million shares traded, however it can spike by as much as 20 million shares, has a 52 week high $4.00, a 52 week low $0.81 and closed recently at $1.93.

Regarding www.skoptionstrading.com. We are off to a good start this year closing two trades in January, the first gave us a profit of 71.58% and the second gave us a profit of 33.97%.

It was nice to bag a couple of winners before January ended and hopefully 2012 will continue in a successful manner. We do have a number of ideas on the drawing board which we are looking to execute shortly, but only when the risk/reward environment is firmly in our favour.

Please be aware that discussions are taking place regarding an increase in the price for this service for new members. We have looked at about 100 similar services and the average cost for them is $866.00 per year. This price increase will not affect the current subscribers whose subscription will remain unchanged.

Our performance stats have now been updated as follows:

Our model portfolio is up 446.55% since inception

An annualized return of 98.38%

Average return per trade of 36.68%

96 completed trades, 88 closed at a profit

A success rate of 91.67%

Average trade open for 50.48 days

 

Also many thanks to those of you who have already joined us and for the very kind words  that you sent us regarding the service so far, we hope that we can continue to put a smile on your faces.

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