Denison Mines has approved the final investment decision to develop the Phoenix uranium mine in Saskatchewan, signaling a major upgrade in North American uranium production.

Construction is planned to start in March after securing regulatory and community support, with production anticipated by 2028 and an initial capital estimate of about C$600 million.

Financials show a total capital cost around C$600 million, with an internal rate of return in the high-20s to mid-30s percent and an NPV of C$1.2-1.8 billion (8% discount) depending on uranium prices.

ISR technology at Phoenix reduces capital costs by roughly 65% and surface disturbance by about 95%, processing about 6 million pounds of uranium oxide annually.

The project uses in-situ recovery (ISR) to achieve an all-in sustaining cost target of roughly $32-38 per pound, with a staged ramp from about 2 million pounds in Year 1 to 6 million pounds by Year 3 and potential upside to 6.5-7 million pounds as improvements continue, aiming for ~85% recovery.

Indigenous partnerships are central, including 30% Indigenous workforce participation, revenue-sharing and community investment programs, and substantial regional economic benefits through jobs, supplier development and tax revenue.

Risks such as geological uncertainty, construction timelines, price volatility, and regulatory factors are addressed with mitigation like pilot testing, advanced modelling, long-term contracting and hedging.

A construction licence from the Canadian Nuclear Safety Commission was granted, with production expected to begin in 2028 and initial capex around C$600 million.

If realized, Phoenix could be among the first uranium mines to employ in-situ recovery as the primary processing method.

The project aligns with Canada’s Critical Minerals strategy to boost domestic uranium supply for North American energy security, while promoting tech transfer and ESG-friendly mining practices.

Forecasts project mid- to late-2028 production, with uranium prices potentially reaching about $85-120 per pound by 2029-2030, supported by long-term contracts covering a portion of post-2028 demand.

Regulatory approvals were completed within about seven years, including provincial environmental permits in mid-2025 and a federal license in early 2026, with ongoing Indigenous and environmental commitments.