Denison Mines Poised to Begin Construction on Phoenix Uranium Project

Denison Mines (TSX:DML,NYSEAMERICAN:DNN) is ready to move forward with construction of its flagship Phoenix in-situ recovery (ISR) uranium project in Northern Saskatchewan, pending final regulatory approvals.

The project, which is part of the Wheeler River property and expected to begin production by mid-2028, will mark Canada’s first new large-scale uranium mine since Cameco's (TSX:CCO,NYSE:CCJ) Cigar Lake.

“After another year of significant investment and progress, Denison stands ready to make a final investment decision and commence construction of the Phoenix ISR mine proposed for our flagship Wheeler River property,” said David Cates, Denison’s president and CEO, in a January 2 press release.

Regulatory and planning milestones have brought the project to a construction-ready state.

Last month, the Canadian Nuclear Safety Commission concluded its public hearings on the project’s environmental assessment and licensing, while Saskatchewan granted initial approval for early earthworks. Procurement planning is nearly complete, with long-lead items such as electrical infrastructure already on schedule for shipment.

Denison has also updated its initial capital cost estimate for the Phoenix project to approximately US$437 million, which includes inflation, procurement progress and engineering refinements.

This figure represents a 20 percent increase relative to the asset's 2023 feasibility study. Despite this rise, the company emphasized that no further adjustments are expected prior to construction.

The Phoenix ISR project is expected to be completed within a two-year construction timeline, supporting both the current fleet of Canadian nuclear reactors and future advanced reactor designs.

IRS, the method planned for Phoenix, involves dissolving uranium underground and pumping it to the surface, a technique used in over half of global uranium production, but not yet implemented in Canada.

Phoenix hosts the high-grade Phoenix and Gryphon deposits, discovered in 2008 and 2014, respectively, and is a joint venture between Denison and JCU Exploration Company, with Denison acting as operator.

If approvals are received in the first quarter of 2026, Denison expects to commence construction promptly, keeping the project on track for first uranium output in mid-2028.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.