White Canyon Uranium first ore milled at Denison Mines White Mesa Mill
Monday, January 24, 2011
White Canyon Uranium (ASX: WCU, TSX-V: WU) has achieved what very few uranium companies manage to do, produce and sell uranium.
One of few listed uranium producers in Australia and in Canada, a total of 35,635 tonnes of ore from White Canyon's Daneros mine was milled by Denison Mines (TSX: DML; NYSE AMEX: DNN) at its White Mesa Mill in the month to December 10, 2010.
Toll milling of White Canyon’s uranium ore stockpiled at the White Mesa Mill commenced in November 2010.
The White Mesa Mill is located 100kms from the White Canyon Daneros Mine in Utah, USA.
White Canyon achieved an 0.28% average grade and a 94.06% recovery rate from first ore milled under the agreement with Denison ,which was within expectations.
White Canyon engaged Denison as sales agent for the company’s ‘yellow-cake’ concentrate which could be sold in to the spot market.
The spot price for uranium has been performing exceptionally well in the past several months and was reported by UXC (The Uranium Consulting Company) at $68 a pound.
With the uranium price spiking 50% to the current price the company is well placed to increase margins and build cashflows.
White Canyon fast tracked Daneros to become an advanced uranium production company, holding a 100% interest in multiple mining projects in Southern Utah.
These comprise over 15,000 acres of mining claims and mineral leases. The Daneros Mine is White Canyon’s first mine to be put into production.
The company has already stockpiled 9,922 tonns of ore for its next mill run in 2011 at the Daneros Mine and production is continuing.
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