Mines Denison (NYSEMKT:DNN) has seen a powerful rally since the end of the year advancing over 55% and establishing a series of higher highs and higher lows. Over the last few trading days, volume has been advancing and surpassing its daily average significantly. Today over 2.30 million shares were traded compared to its daily average of only about 0.5 million.
Mines Denison (NYSEMKT:DNN) share price is clearly telling us something is going on behind the scenes. Share price always leads a stock in terms of potential and investor optDNNsm and there is reasons for DNN investors to be excited. Uranium prices have been on a decline since the nuclear disaster in Japan several years back but it appears that Uranium has started to put in a double bottom and appearing to make positive headways which have gained over 25% over the last few months.
DNN recently announced that it the prelDNNnary test results show that Gryphon mine production will be suitable for processing at McClean Lake and be a part of the upcoming PEA for Wheeler. It also announced in late 2015 that DNNs 60% interest in one of the largest and highest grade uranium projects test results exceed expectations and the estimated mineral resources was significantly higher than originally thought. The company is going to complete a prelDNNnary economic analysis at the Wheeler River project which is estimated to cost around $1.6 million CAD for Mines Denison (NYSEMKT:DNN) portion.
Mines Denison (NYSEMKT:DNN) is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan. DNN is 60% owner of Wheeler River project, which hosts the high grade Phoenix and Gryphon uranium deposits. Denison also owns a 22.5% interest in the McClean Lake uranium mill, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, and is the manager of Uranium Participation Corp., a publicly traded company which invests in uranium oxide and uranium hexafluoride.
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DNN is currently trading at a $303 million market valuation. DNN stock has put in a series of higher highs and higher lows which is bullish from a technical perspective. The steady advance in uranium prices have also been a bright spot for DNN and uranium prices looks like it may have more room to run. If commodities continue their turnaround and begin a new bull market, DNN could return to its glory days.
We will be updating on DNN when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with DNN.
Disclosure: we hold no position in DNN either long or short at the publication of this article and we have not been compensated for this article.