Kaleigh Harrison
Denison Mines is preparing to bring its Phoenix in-situ recovery (ISR) uranium project at Wheeler River into full development, with construction readiness now largely achieved. Engineering is near completion, with close to 90% of designs finalized and most build packages already issued. Major procurement is underway, with key contracts for the 2026 construction season in final negotiation stages. Long-lead infrastructure components—including electrical gear like switchgear and transformers—are on schedule for delivery.
While federal licensing is still pending, the Canadian Nuclear Safety Commission completed its public hearing phase in December 2025. Saskatchewan has already granted environmental approval and authorized early site works, allowing Denison to begin vegetation clearing and site drainage—preparatory steps intended to reduce schedule risk once full construction is cleared. If federal approval lands in early 2026 as expected, Denison plans to begin construction almost immediately, targeting mid-2028 for first production.
This would make Phoenix the first new large-scale uranium mine built in Canada in over a decade, reinforcing the country’s role in the global nuclear fuel market at a time when demand for clean energy sources continues to grow.
Revised Capital Plan Anchored by Cost Certainty
Denison has updated its capital cost estimate for Phoenix to approximately $600 million—20% higher than inflation-adjusted projections in its 2023 feasibility study. The increase reflects refined project plans, firmed-up pricing, and design optimization, rather than scope expansion. According to Denison, this latest figure is a control budget, with no further changes anticipated before construction begins.
Cost certainty has improved significantly. Around 75% of equipment and materials costs are now underpinned by either committed contracts or advanced bid evaluations. Meanwhile, about half of the construction costs are in final negotiations. A built-in contingency has also been added, in recognition of recent inflation volatility across the mining and infrastructure sectors.
Changes to the project’s wellfield design are among the operational upgrades contributing to the capital increase. Phoenix will now use larger-diameter wells that can serve as either injectors or recovery wells—improving operational flexibility and boosting projected uranium recovery rates over time.
Despite higher upfront costs, the project’s base-case economics remain largely unchanged. Stronger uranium market fundamentals have supported improved pricing assumptions, offsetting the capital increase. Denison continues to forecast a short payback period and an internal rate of return that remains competitive for a greenfield uranium operation.