🕐11.01.10 - 01:45 Uhr

DENISON CONFIRMS FIRST ORE SHIPPED FROM DANEROS MINE GRADED 0.34% U308 – 15% HIGHER THAN EXPECTATION



White Canyon Uranium Limited ASX announcement ASX Announcement 11 January 2010 DENISON CONFIRMS FIRST ORE SHIPPED FROM DANEROS MINE GRADED 0.34% U308 -- 15% HIGHER THAN EXPECTATIONS KEY POINTS * Production of development material from Daneros uranium mine in Utah shipped to Denison Mines Corp, as planned, in December 2009, * Denison confirmed material graded 0.34% U308, 15% higher than Company expectations, * White Canyon Uranium was expecting a grade of 0.3% for first shipment of development material (based on drill hole data), * Based on same drill hole data White Canyon Uranium expecting average grade of 0.25% across entire Daneros uranium mine, however this may be enhanced given positive results from first shipment, and * Second shipment of development ore to Denison currently being delivered. US-focussed uranium company White Canyon Uranium Limited (ASX: WCU) ("White Canyon" or "the Company") has received confirmation from major North American uranium producer and processor Denison Mines Corps (TSX: DML, NYSE AMEX:DNN) ("Denison") that the first shipment of production of development material from its 100% owned Daneros uranium mine ("Daneros") in South Eastern Utah to Denisons White Mesa Mill graded 0.34% U308, or approximately 15% higher than Company expectations. Based on drill hole data, the Company was expecting the first shipment of development material, delivered to Denison in December 2009, to grade 0.03% U308.

White Canyon believes the grade achieved for its first shipment is very encouraging and gives them greater confidence for the grade likely to be achieved from future deliveries. "We have always been very conservative with our estimated grades and it appears this approach has paid off, with the grade we achieved from this first shipment to Denison approximately 15% above our expectations," said White Canyon Uranium Managing Director, Mr Peter Batten. "The Company has been as conservative with our estimation of grades across the entire Daneros uranium mineralisation and, based on these results, believe we could be pleasantly surprised with the grades achieved from the remainder of the mineralisation within the mine area." White Canyon has a conservative average drill indicated grade of 0.25% U308 for drill defined mineralisation at the Daneros uranium mine.

As previously announced (see ASX announcement 20 October 2009), White Canyon has agreed to sell material produced during the development stage of the Daneros Uranium Mine into the Denison Ore Buying Schedule. "The sale of this development material will allow Denison to derive critical processing parameters with regard to the Daneros mineralisation, will assist with how to best treat this mineralisation through the White Mesa Mill in the future and will provide pertinent information required for the finalisation of a long term treatment agreement with Denison," Mr Batten said. White Canyon is currently compiling the second shipment of production and development material to Denison and expects to complete this ore parcel in January 2010. To read the full announcement click here: http://esp.gewru.com/em/message/email/view.php?id=572493&u=15636 For further information please contact: Peter Batten Managing Director & CEO White Canyon Uranium Limited Tel: +61 8 9381 9192 Website: www.whitecanyonuranium.com David Tasker Professional Public Relations Tel: +61 89388 0944/ +61 433 112 936 Em:
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