Denison Mines forecasts 1.8 million lbs. of uranium sales in 2010
Toronto’s Denison Mines announced Monday that it expects to sell 1.8 million pounds of U3O8 this year, a 14% increase from 1.4 million pounds of U308 produced in 2009.Denison’s uranium production is expected to total 1.6 million pounds of U3O8 from the Beaver, Pandora and Arizona 1 mines and from production from the alternative feed circuit at the White Mesa Mill and its share from production at the McClean Lake mill.Located six miles west of Blanding, Utah, White Mesa is the only conventional uranium mill currently operating in the United States. It is expected to begin processing conventional ore in March and is licensed to produce 8 million pounds of U3O8 annually.This year’s vanadium production is expected increase 460% from 501,000 pounds of V2O5 in 2009 to a total 2.8 million pounds in 2010.In a statement Ron Hochstein, Denison CEO said, "Our 2010 plan and budget will not only generate positive cash flow from operations, while keeping us debt free in a weak uranium price environment, but will also generate sufficient cash flow to fund an aggressive exploration and development program to increase Denison’s production and profitability for the years ahead."The company plans to invest US$16.7 million on business activities, as well as other net cash outflows of $1.8 million. Operating cash flow from mining is expected to generate $19.5 million. Mining revenue is forecast to be $119 million including vanadium revenue of $19.3 million.Denison expects to remain debt free throughout this year and is forecasting a net loss for $18.5 million, after providing for depletion, depreciation and amortization.Dennison will participate in exploration programs on 10 properties in Canada and the U.S for which $11.5 million has been budgeted of which $6.3 million is Dennison’s share. The most significant of these programs includes a 45-hoe, 22,500 meter drilling program on the Wheeler River property in Saskatchewan.A total of $8.8 million is budgeted for development stage projects this year of which $6.3 million will be used to advance Zambian and Mongolian and develop a long-term strategy for their development.Denison has established a five-year business development plan which aims to increase annual uranium production to at least 10 million pounds per year by 2020. This year, a budget of $1.6 million has been allocated to initiate the search for and evaluation of advanced stage projects and producing mines with the potential to increase Denison’s production in the near term. This work will focus on opportunities in Canada, the U.S, and Africa.