SASKATCHEWAN Toronto-based DENISON MINES is bringing its interest in the Midwest uranium project up to 40.66% by acquiring a further 20.70% stake from REDSTONE RESOURCES, a subsidiary of NEWMONT MINING. The deal will bring Denison’s uranium reserve base to over 19 million lb. The cost of the transaction is $15 million, payable $5 million in cash and the balance by issuing Denison treasury shares.
With its greater interest in Midwest, Denison plans an expanded exploration program on the property, which it says has not been systematically explored since the early 1980s. The program will focus on three areas: 1) under the Midwest deposit to further evaluate the known basement mineralization; 2) north of the deposit to follow up on a hole drilled in the 1980s grading 8.24% U3O8 over 3.8 metres; and 3) testing of a relatively untested conductor south of the Midwest deposit.
The acquisition is subject to regulatory approval, the completion of a definitive agreement and financing. See also www.DenisonMines.com.
The operator and majority owner of the Midwest project is COGEMA. The deposit is a potential future ore supply for the McClean Lake mill, 15 km away. The Cogema website is at www.cri.ca.