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.
With the recent conclusion of the CNSC public hearing, and receipt of an initial approval to commence construction activities from the Province of Saskatchewan, are poised to start 2026 with a series of positive catalysts that will mark the beginning of a new era in Denison's long history. 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.
Based on strong balance sheet, and the advanced state of project engineering, construction planning, and procurement activities, are confident that will be able to make a positive final investment decision following receipt of final regulatory approvals. While estimate of initial capital costs has increased moderately from the 2023 Phoenix FS, it is important to note that the Project is now ready for construction, continues to have only a two-year construction schedule, and that the updated costs are the basis for project Control Budget meaning that there are no further revisions expected prior to the commencement of construction. 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 Q22026.
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). After accounting for increases in inflation, cost increases, and project refinements, the Company now estimates the total post-FID initial capital estimate for the Project to be approximately $600 millionat a Class 2 cost estimate level of precision. 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.
