TORONTO — Denison Mines Corp. says it is prepared to move forward with construction of its flagship Phoenix In-Situ Recovery uranium project, pending final regulatory approvals, following significant progress on engineering, procurement and permitting throughout 2025.
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The company reported that it is ready to make a final investment decision and begin construction on the Phoenix project at its Wheeler River property in northern Saskatchewan. If approvals are received in the first quarter of 2026, construction is expected to begin shortly thereafter, with first uranium production targeted for mid-2028 following a two-year build timeline.
David Cates, president and CEO of Denison, said the company is entering 2026 positioned for a major milestone.
“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,” Cates said. “With the recent conclusion of the CNSC public hearing, and receipt of an initial approval to commence construction activities from the Province of Saskatchewan, we are poised to start 2026 with a series of positive catalysts that will mark the beginning of a new era in our Company's long history.”
He added that the project’s readiness follows years of planning and risk reduction.
“Owing to years of work de-risking and advancing Phoenix, the Project is now ready to become the first new large-scale uranium mine built in Canada since Cigar Lake, with first production expected by mid-2028,” Cates said.
Denison noted that Phoenix is expected to be one of only a limited number of new uranium production sources coming online before the end of the decade. The company said the project is well positioned to benefit from rising global demand for nuclear energy while aligning with Canada’s goals for environmentally responsible resource development.
“This timeline means that Phoenix… is positioned to (i) benefit from an anticipated acceleration in uranium demand based on increasingly widespread global adoption of nuclear energy, and (ii) support Canada's objective to develop sustainable and environmentally responsible 'nation building' mining projects to reinvigorate Canada's natural resources sector,” Cates said.
The company also emphasized its financial capacity to proceed.
“Based on our strong balance sheet, and the advanced state of project engineering, construction planning, and procurement activities, we are confident that we will be able to make a positive final investment decision following receipt of final regulatory approvals,” Cates said.
Denison reported that the two-part Canadian Nuclear Safety Commission public hearing concluded on Dec. 11, 2025, representing the final step in the federal regulatory review process. A decision from the CNSC is now pending.
At the provincial level, the project received environmental assessment approval from Saskatchewan in August, along with authorization to begin certain early earthworks, including vegetation removal and drainage activities.
Procurement for major 2026 construction contracts is nearing completion, with awards expected in early 2026. The company also said shipment timelines remain on track for long-lead infrastructure items, including electrical systems and substation equipment.
Project engineering is substantially complete, with approximately 87% of total engineering finished and more than 90% of primary deliverables issued for construction.
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Denison updated its initial capital cost estimate for Phoenix to approximately $600 million, reflecting inflation, project refinements and improved cost certainty. The revised estimate represents a roughly 20% increase over the 2023 feasibility study when adjusted for inflation.
The updated budget includes $65 million in contingency and owner reserves and is intended to serve as the project’s final construction control budget, with no further revisions expected prior to the start of construction.
Despite the higher capital costs, Denison said the project’s economics remain strong, supported by higher uranium price assumptions since mid-2023. The company reported that the project’s adjusted after-tax net present value remains effectively unchanged, with robust returns and a short projected payback period.
Phoenix is part of the larger Wheeler River project, the largest undeveloped uranium project in the eastern Athabasca Basin. Denison holds a 90% interest and operates the project alongside joint venture partner JCU (Canada) Exploration Company.
The Phoenix deposit is planned as an in-situ recovery operation, which Denison says is designed to reduce surface disturbance while improving operational efficiency. Permitting efforts began in 2019 and are now nearing completion following provincial approvals and the conclusion of federal hearings.
Denison said receipt of final federal approvals remains the key catalyst needed to proceed with construction and maintain its mid-2028 production target.
Originally reported by Denison Mines Corp. in PR News Wire.
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