Denison Mines Corp. Announces New Discoveries at Mutanga Project, Zambia

Denison Mines Corp. Announces New Discoveries at Mutanga Project, Zambia

Denison Mines Corp. announced the discovery of three new zones of mineralization at its Mutanga uranium project in Zambia. The new zones were discovered during the drilling of the first three targets of Denison’s 2008 exploration program. The most significant hole (DMD77600-03) included 12.5 metres of 1,204 ppm eU3O8 at a depth of only 74 metres. The 2008 program includes an airborne radiometric survey and a 26,000 metre drill program.

The three separate zones of mineralization were located by widely spaced (generally 400 metre centres) drilling. The Dibwe East Zone is located within three kilometres of the proposed Mutanga pit boundary and is the most favorable of the three located to date. Initial testing has returned several intersections, the most significant being hole DMD77600-03 with 80.3 metres of 351 ppm eU3O8 from 18.0 metres depth, including 12.5 metres of 1,204 ppm eU3O8. Hole DMD78000-03, also at Dibwe East, intersected 24.2 metres of 314 ppm eU3O8 from 23.0 metres depth. For comparison purposes, the average grade contained in the original scoping study was 380 ppm, at a cut-off grade of 200 ppm.

Following the cessation of the development drill program in July, a total of 35 targets were selected for drill testing on the basis of geology, structure, and radiometrics. A total of 6,000 metres has been drilled to date in just over a month out of a program total of 26,000 metres. Work has been confined to the Dibwe Mutanga corridor. Drilling to date has tested the Dibwe East zone with five holes that define an area approximately 1,200 metres by 800 metres. A second prospect along this trend, the Mutanga West Zone is located approximately two kilometres southwest. It is currently defined by one drill hole that returned 29.7 metres of 532 ppm eU3O8, including 11.8 metres of 1,049 ppm eU3O8.

Mineralization at Dibwe East and Mutanga West is similar to that at the Mutanga deposit in that it is composed of coarse autunite in fracture zones within an upper oxidized horizon overlying fine grained disseminated mineralization within a pyritic reduced zone.

Work during the first seven months of the year concentrated on development drilling of the Mutanga and Dibwe deposits. Approximately 41,742 metres of diamond and reverse circulation drilling was completed in support of a 43-101 resource estimation study, which is anticipated to be released in the fourth quarter.

A seven tonne bulk sample was collected and transported to SGS Laboratories in Perth, Australia, where it is currently undergoing bench scale and pilot plant test programs to determine the optimum mill process. In addition to the alkali leach circuit proposed in the original scoping study, heap leach technology is also being investigated. Results of this testwork are expected later this year.

Other work currently underway on the Mutanga project includes hydrogeological drilling to determine potential water sources, condemnation drilling, environmental baseline monitoring and road and power supply studies. Engineering aspects of the detailed feasibility study are ongoing with the anticipated delivery of the feasibility study in the first quarter of 2009.

Denison Mines Corp. is a premier intermediate uranium producer in North America, with mining assets in the Athabasca Basin region of Saskatchewan, Canada and the southwest United States including Colorado, Utah, and Arizona. Further, the Company has ownership interests in two of the four conventional uranium mills operating in North America today. The Company also has a strong exploration and development portfolio with large land positions in the United States, Canada, Zambia and Mongolia.

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