Denison Mines (TSE:DML) continues to build upon the Wheeler River project's "world-class" status, said analyst Rob Chang of Cantor Fitzgerald in a research note released earlier today.
The company announced that it discovered a new zone of mineralization at the project, which is located on the eastern side of the Athabasca Basin between the McArthur River mine and the Key Lake complex.
The new area sits about 800 metres south of the Gryphon zone, which was discovered last year, Denison said.
Chang said the discovery is positive, as Denison continues to grow the Wheeler River project.
"To date the notable deposits/zones at Wheeler include: Phoenix deposit (70.2M lbs. U3O8 indicated at 19.13% and 1.1M lbs. inferred at 5.8%), Gryphon zone (intercepts include 21.2% U3O8 over 4.5m and 15.3% over 4.0m), and the newly discovered zone today," he wrote.
"The project continues to build upon its world-class status."
The new zone is highlighted by two drill holes that intersected the area thus far, including 2.8% uranium over 4.0 metres and 0.9% uranium over 1.1 metres.
The company said mineralization is open along the section and along strike to the south.
Denison's partners at Wheeler River include Cameco Corp (TSE:CCO), which owns a 30 percent stake, and JCU Canada Exploration Company, which holds a 10 percent interest.
Cantor Fitzgerald has a buy rating on Denison, and a target price of C$1.80. Shares were trading down almost 1 percent on Monday afternoon, at C$1.01.