Rehabilitation of the mine has been under way under an exploration permit since May, and this activity has, according to the company, enabled it to begin mining upon receipt of the operating permits. Contract mining of the deposit has been awarded to Dynatec Corp., Salt Lake City, Utah.

The mining operation will encompass two deposits: Tony M and Bullfrog. Denison said the Tony M deposit mine infrastructure will facilitate access to the nearby undeveloped Bullfrog resources. The Tony M deposit has historical indicated ore resources of 1.28 million tons grading 0.21% U3O8 totaling 5.3 million lb U3O8. Ore produced from the Henry Mountains Complex will be processed at the White Mesa mill.

Upon reaching full production by mid-2008, the Tony M mine is anticipated to produce 18,000 tons of ore per month. Mining is also under way at four of the company’s uranium mines in the Colorado Plateau District producing over 10,000 tons of ore per month, which is currently being stockpiled at the White Mesa mill. Processing is scheduled to commence in early 2008. In addition to ore production from the Henry Mountains and Colorado Plateau districts, Denison is anticipating ore production from its Arizona 1 mine on the Arizona Strip in north-eastern Arizona to begin in mid-2008.

Annual production from Denison’s U.S. operations is expected to be approximately 2.9 million lb U3O8 and 4 million lb of vanadium in 2008. According to Denison, total production from its U.S. and Canadian operations are anticipated to exceed 5 million lb. by 2011.