Add This Uranium Stock To Your Watchlist
Tommy Humphreys | Dec 03, 2014 12:13AM ET
Denison Mines (AMEX:DNN), (TO:DML), one of the most widely followed names in the uranium space, is out with more assays from the Gryphon zone at the Wheeler River property, located in the Athabasca basin of Saskatchewan. The Athabasca basin is known as the best place in the world to find uranium deposits.
The Wheeler River project is 60% owned and operated by Denison, with Cameco (NYSE:CCJ), (TO:CCO) holding a 30% interest and JCU Exploration Company owning 10%.
The 2014 summer drill program consisted of 14,937 metres in 20 drill holes. All of the summer drilling occurred in the Gryphon zone which was discovered earlier in 2014.
The highlight of the latest set of assays is hole WR-573D1, which intersected 22.2 per cent triuranium octoxide (U308) over 2.5 metres, the highest-grade intersection to date at Gryphon.
WR-573D1 is an important hole because it is the farthest hole drilled to date in the down-plunge direction. Denison is well funded with $26.5 million in the treasury at the end of September and will resume drilling at Gryphon in January 2015.
Denison also announced positive preliminary metallurgical test results from the Phoenix deposit which is located ~3km away from Gryphon on the same Wheeler River project.
Denison stock is a fairly active trader, usually averaging between 1 and 2 million shares a day.
The stock shot up ~40% in November as all uranium stocks caught a bid with the excitement of Japan announcing that two nuclear reactors have been cleared to restart. The shares have since come back as the market has realized that two nuclear reactor restarts will not fundamentally change the current uranium oversupply.
A few analysts are forecasting that uranium will remain in oversupply until at least 2016/2017. The fundamentals do remain strong going forward though, with many nuclear reactors currently under construction.
When the uranium market does turn, DML should move with it as evidenced by the 40% move in November.
- Symbol: DNN/DML.T
- Share price: $1.12
- Shares outstanding: 505.875 M
- Market cap: $566.4 M
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