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Denison Mines ready to mine Uranium

Denison Mines has stated that it is ready to start developing its planned uranium mine is Siavonga once prices for the metal improve. For the company to break even, the price of uranium should increase to levels above US$65 per pound of which currently have collapsed to somewhere around US$50 a pound from as high as US$70 per pound after an earthquake and Tsunami in February 2011 crippled the Fukushima plant, leading to the closure of Japan’s 50 reactors and souring sentiment elsewhere for nuclear power. “We need prices that are above US$65 per pound of uranium oxide to make the Mutanga project feasible and we have very strong indications that uranium prices will start improving in late 2013,” said Denison Mines project director for Africa, Andrew Goode. He further stated that the price would improve due to the depletion of the stocks from surplus nuclear war heads from the cold war. The Denison Mine plans to mine about 18.8 million tons of uranium ore from the Mutanga project located in Siavonga. In additions, Mr. Goode stated that the company is currently undertaking further exploration work to find more resources and hopefully increase the ore grade to reduce its operating costs.  Increasing the grade reduces operating cost per pound and if operating cost is reduced to US$50 a pound since there is the possibility the price going up then chances of starting to mine uranium are high.

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