Denison Mines Corp. reported that, pending final regulatory approvals, it is ready to make a final investment decision ("FID") and commence construction of the proposed Phoenix In-Situ Recovery ("ISR") uranium mine ("Phoenix" or the "Project"). Significant regulatory, engineering, and construction planning progress has been made throughout 2025, which has positioned Phoenix in a construction-ready state, including confirmation of an expected 2-year construction timeline.
Provided final regulatory approvals to commence construction are received in first quarter of 2026, targeted first production remains on track for mid-2028. 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. This timeline means that Phoenix, as one of only a few notable new sources of uranium production expected before the end of the decade, 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.
Shipment of long lead items on schedule: Expected shipment dates for all key long lead items are on schedule, including electrical distribution infrastructure consisting of main site transformer, substation high voltage equipment, switchgear, and substation e-house. Substantial completion of project engineering: Detailed design engineering for the Project is substantially complete with approximately 87% total engineering complete to date, and 92% of primary engineering deliverables issued for construction with remaining engineering, related to the latter phases of project construction, forecasted to be completed by second quarter of 2026. Updated initial capital cost estimate based on significant procurement progress: Given significant progress with long-lead procurement and the advanced stage of negotiation on several key construction work packages, a Class 2 post-FID capital cost estimate has been prepared to set a project construction cost control budget ("Control Budget").
This capital cost estimate updates the Class 3 cost estimate (based on 2022 costing) reported in the 2023 feasibility study for Phoenix (the "2023 Phoenix FS"). Inclusive of approximately $47 million in pre-FID expenditures estimated to have been incurred up until November 30, 2025, Denison expects to incur a total of approximately $100 million in pre-F ID expenditures since the completion of the 2023 Phoenix FS, which compares to $67.4 million in pre-FID expenditure estimated in the 2023 Phoenix FS. Construction of the Project is still planned to be completed during an approximate 24-month construction period.
If the Project receives all necessary approvals to commence construction by the end of the first quarter of 2026, Denison would be able to initiate construction as planned and maintain its target of achieving first production by mid-2028. 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 (the "Wheeler River 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 licence. More information is available in the technical report titled "NI 43-101 Technical Report on the Wheeler River Project Athabasca Basin, Saskatchewan, Canada" dated August 8, 2023 with an effective date of June 23, 2023 with an effective Date of June 23, 2023, 2023, 2023 with an effectivedate of the Company's long history.
