An updated NI 43-101 report for Denison Mines' Hairhan uranium deposit in the South Gobi region shows a 151% increase in indicated resources and a 67% increase in inferred resources.
Hairhan is held by the Gurvan Saihan Joint Venture of which Denison holds a 70% interest with the Mongolian state entity Mon-Atom LLC holding 15% and the Russian concern Geologorazvedka holding the remaining 15%.
The joint venture holds six exploration licences, including Hairhan, totalling 181,574 hectares in the South Gobi.
The updated resource incorporates results from drilling from 2007 and 2008 in the central portion of the deposit. This drilling comprised 278 holes totalling 46,000 metres concentrated in known mineralized areas in order to close drill spacing and to support detailed resource estimation.
As a result of the drill programs, which increased the total drilling at Hairhan to more than 118,000 metres, there are now estimated to be 12,261 indicated tonnes at a grade of 0.062% uranium for 19.780 million pounds of U3O8 and 5536 inferred tonnes @ 0.04% uranium for 5.811 million pounds.
Hairhan is amendable to ISR (in situ recovery) techniques. A small pilot test conducted in 1998 confirmed favourable geologic and hydrologic conditions for ISR.
The next phases being planned by the company include advancing the Hairhan exploration licence to a mining licence, designing a semi-commercial scale acid ISR plant, and initiating site construction and development activities in late 2011 and into 2012.
The semi-commercial test will be intended to provide site specific operating costs and confirmation of production parameters to support a full commercial feasibility study and decision.