Denison Mines Corp. (DML)

[NYBob]

A Fresh Jolt for Uranium
By Toby Shute
August 13, 2008
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Uranium observers have no doubt been wondering what catalyst would shake the sector out of its slump. It turns out that the biggest jolt since 2006's inflow at Cameco's (NYSE: CCJ) Cigar Lake Mine is ... another water inflow at Cigar Lake.

Dewatering efforts at the delayed megaproject hit a major hitch yesterday. This news is crucial to the uranium supply story, because the high-grade Cigar Lake Mine could provide about 10% of global consumption at today's levels. As it stands, uranium usage routinely exceeds global mine production. We can tap decommissioned warheads and other stockpiles to fill the gap, but that won't last forever. The longer Cigar Lake is delayed, the faster we blow through above-ground supply.
That would do wonders for the spot price of uranium.

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