Denison Mines says its 2012 drill program at the Urt Tsav and Ulziit uranium properties in Mongolia has almost doubled the defined extent of the mineralized system. A Can$3.1 million, 29,600 metre drill program was completed at the company’s 85%-owned Gurvan Saihan joint venture (GSJV) properties in September.
The GSJV includes four exploration licences in the South Gobi region across 685,632 hectares. In 2009, the GSJV had its licences renewed for three years and its resource report formally accepted by the Mongolian government. This is the first uranium resource estimate accepted by the Mongolian government and is the first stage in the receipt of a mining licence.
The other 15% shareholder in the GSJV properties is the Mongolian government (Mon-Atom) and the two companies are currently restructuring the joint venture to allow the government to increase its stake under the new Nuclear Energy Law.
A 15% interest in Russian entity Geologorazvedka will be transferred to Mon-Atom as part of the restructuring plan. The final restructuring of the GSJV is expected to result in Denison having its interest reduced to 66%. As a result of the parliamentary elections in Mongolia this year, efforts on this front have been delayed. Discussions are continuing and the timing for completion of the restructuring is yet to be finalized.
Meantime, Denison’s financial report for the nine months to September 30 records a loss from continuing operations of $9.64 million, compared with a net income for the same period in 2011 of $7.85 million. The company spent $10.6 million on exploration expenditures for the nine months ended September 30, 2012 compared to $11,986,000 for the same period in 2011.
Denison is engaged in uranium exploration, as both operator and non-operator of joint ventures and as operator of its own properties in Mongolia, Canada and Zambia.
The company also supplies mine decommissioning and environmental services through its Denison Environmental Services (DES) division. Denison is also the manager of Uranium Participation Corporation, a publicly traded company which invests in uranium oxide in concentrates and uranium hexafluoride.