Denison plans Zambian uranium mine

26 September 2007

[miningmx.com, 24 September] Dension Mines of Canada plans to develop a uranium mine in the Lake Kariba are of Zambia. The company's president, Ron Hochstein, speaking at the Alternative Energy Forum in Keystone, Colorado, USA, said that plans were to have the mine in production by late 2010 or early 2011. However, Zambia currently has no specific permitting legislation covering uranium mining. Hochstein said that Dension had been in close consultation with both the Zambian government and the local communities about development of the mine and that both had been "extremely supportive, although they have stressed that we must do it right." The decision to develop the mine follows Denison's acquisition earlier this year of OmegaCorp, which controlled the "advanced stage" Kariba Uranium Project. The Kariba project consists of a single prospecting licence covering 1893 square kilometres in the southern province of Zambia. Three main areas of mineralization have already been identified in the holdings at Mutanga, Dibwe and Bungua. A scoping study at Kariba has been completed based on the JORC-compliant Inferred Mineral Resource Estimate of 6215 tonnes U3O8 at an average ore grade of 0.04%. This would support a mine producing some 680 tonnes U3O8 annually over an economic life initially estimated at six to ten years. Denison said that all three deposits are shallow and amenable to open pit mining.

Further information

Denison Mines

WNA's Uranium in Africa information paper

WNN: Denison Mines offers to buy OmegaCorp

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