Denison Mines Corp. announced that grid power supply from Saskatchewan Power Corporation ("SaskPower") is available at the site of the future Phoenix in-situ recovery uranium mine ("Phoenix", or the "Project") following the recent installation of a new 138kV transmission line. The availability of grid power at the Phoenix site represents a significant step in de-risking the execution of the Project, as the electrification of the site is on the critical path of activities planned for the first year of construction and supports the establishment of the freeze wall planned to surround the initial mining area.
The new transmission line is approximately 6 kilometres in length and connects the Phoenix site to the existing 138kV transmission line east of Phoenix that runs proximal to Highway 914 near Russell Lake. Accordingly, the installation and electrification of the new 138kV transmission line to the Phoenix site represents a significant de-risking event, as the electrization of the Phoenix site will now only require the installation of on-site electrical distribution infrastructure, including the main site transformer, substation high-voltage equipment, switchgear, and substation e-house - all of which are long-lead items that have been procured and are on schedule for delivery to site and installation during the first year of construction. SaskPower is Saskatchewan's principal electrical utility, reliably servicing over a half million customers across an extensive geographic area, including connections to the grids in Manitoba, Alberta and North Dakota.
SaskPower obtained applicable approvals for and installed their transmission line to support a power supply agreement with Denison, whereby Denison has obtained access to up to 8.8 MW of power and agreed to purchase a minimum amount of power for a five-year period from the in-service date of the new transmission line. The cost of the new transmission line was funded by the Wheeler River Joint Venture. The commencement of Phoenix construction activities by Denison, including the installation of on-site electric distribution equipment, remains subject to receipt of final regulatory approvals and a final investment decision by Denison.
Wheeler River is the largest undeveloped uranium project in the infrastructure-rich eastern portion of the Athabasca Basin region, in northern Saskatchewan. The project is host to the high-grade Phoenix and Gryphon uranium deposits, discovered by Denison in 2008 and 2014, respectively, and is a joint venture between Denison (90% and operator) and JCU (Canada) Exploration Company Limited ("JCU", 10%). In August 2023, Denison filed a technical report summarizing the results of (i) Phoenix FS; and (ii) a cost update to the 2018 Pre-Feasibility Study for conventional underground mining of the basement-hosted Gryphon uranium deposit.
Based on the respective studies, both deposits have the potential to be competitive with the lowest cost uranium mining operations in the world. Permitting efforts for the planned Phoenix ISR operation commenced in 2019 and are nearing completion with approval in July 2025 of the Project's EA by the Province of Saskatchewan and conclusion in December 2025 of the Canadian Nuclear Safety Commission Public Hearing for Federal approval of the EA and project construction license.
