Denison Mines (TSE: DML) (NYSEAMERICAN: DNN) has secured all major approvals for its Phoenix in-situ recovery uranium project in northern Saskatchewan and has already started early construction work, positioning the mine to become Canada’s first large-scale uranium development in more than two decades.
Chief executive David Cates said the company reached a key milestone in February when regulators cleared the Phoenix ISR mine for construction. Additionally, Denison approved the project’s final investment decision shortly afterward and mobilized its Denison-Wood integrated project management team to the Wheeler River property before the end of the first quarter.
Crews have already started schedule-critical site preparation and early construction work at the project site. Meanwhile, contractors continue civil work tied to the future airstrip and related infrastructure.
Cates said the company remains on track to ramp up staffing and construction activities through the second quarter. Consequently, Denison still expects to begin full-scale construction work before the end of June and target first uranium production by mid-2028.
The Phoenix project uses in-situ recovery mining methods instead of conventional open-pit or underground mining. Additionally, ISR mining extracts uranium by circulating solutions through underground ore zones, reducing the need for large-scale surface excavation.
However, severe flooding across northern Saskatchewan has complicated transportation routes into the region. Cates explained that personnel can still reach the site by helicopter, but flood damage may delay deliveries of heavy equipment and construction supplies if conditions persist.
Read more: ATHA Energy launches largest-ever Angilak uranium exploration campaign in Nunavut
Read more: X-Energy IPO raises USD$1.02B as SMRs gain traction in AI era
Nuclear renaissance driving nuclear power demand
The company said it continues monitoring the situation closely while provincial crews respond to damaged infrastructure and road disruptions. Furthermore, Denison expressed optimism that conditions could improve over the coming days.
Denison also reported operational updates from the McClean Lake uranium operation, where the company owns a 22.5 per cent stake. Mining activity at the North SABRE mine remained limited during the first quarter as crews completed resource confirmation drilling.
Additionally, the company expects active mining operations at North SABRE to resume later in the second quarter.
Cates also pointed to growing commercial interest from nuclear power utilities seeking future uranium supply. He said Denison’s combination of physical uranium holdings, current production exposure through McClean Lake and planned future production from Phoenix and Gryphon has attracted several major utility customers.
The company’s customer base now includes North American nuclear utilities operating more than 50 reactors. Meanwhile, Denison has expanded its uranium sales portfolio to nearly eight million pounds of triuranium octoxide, commonly known as U3O8.
The company also continues negotiating additional agreements covering another eight million pounds of U3O8.
During the first quarter, Denison secured near-term uranium sales contracts with average realized pricing above USD$99 per pound of U3O8 for deliveries scheduled within one year. Furthermore, management linked those sales to the company’s earlier uranium purchases made in 2021.
.
joseph@mugglehead.com
