Reuters reported that Denison Mines had begun an exploration program at its Wheeler River property in the Athabasca Basin as it gears up to make a production decision on the uranium project by 2013.

The Toronto-based uranium producer said it would drill 15,000 meters over the winter and then 20,000 meters in the summer as it looks to expand the resource at Wheeler River.

Denison has tested 1.3 kilometers of the possible 18 kilometer deposit which is located in the uranium-rich Athabasca basin in the Canadian province of Saskatchewan. The Wheeler River project is a joint venture of Denison, top Canadian uranium producer Cameco and JCU Exploration. Denison holds a 60% stake in the project.

The joint venture will spend CAD 10 million on exploration in 2011. Denison said it would be the largest exploration program to date in the 35 year history of the project. Wheeler River, which will cost around CAD 690 million to develop, could produce up to 8 million pounds of uranium a year. Cash costs are expected to be around USD 31 a pound.

(Sourced from Reuters)