Denison Mines to Begin Construction of Canada’s First In-Situ Uranium Mine

Toronto, ON – Denison Mines Corp. (TSX: DML) (NYSE American: DNN) has received the green light to begin construction of the Phoenix In-Situ Recovery (ISR) uranium mine at Wheeler River in northern Saskatchewan, Canada. The company’s board of directors made its final investment decision (FID) on February 24, 2026, and site preparation is slated to commence in March 2026.

A New Era for Canadian Uranium Mining

The Phoenix mine is poised to grow the first uranium mine built in Canada in over two decades and will utilize the innovative in-situ recovery method. This technique involves pumping an acidic solution into the ore body to dissolve the uranium, which is then pumped back to the surface. The project is located within Treaty 10 territory.

Project Highlights and Economic Impact

The Feasibility Study for the Phoenix ISR project, completed in 2023, indicates a base case pre-tax Net Present Value (NPV) of $2.34 billion (based on 100% ownership) – a 150% increase from the 2018 Pre-Feasibility Study. The project boasts a robust base-case pre-tax Internal Rate of Return (IRR) of 105.9%. After-tax NPV8% is estimated at $1.56 billion (100% basis), with Denison’s 95% interest equating to $1.48 billion. Payback is projected to be just 10 months.

Estimated pre-production capital costs are under $420 million, resulting in an after-tax NPV to initial capital cost ratio exceeding 3.7 to 1. Production is expected to increase by approximately 43% during the first five years of operations compared to previous plans.

Community Engagement and Impact Benefit Agreements

Denison Mines has signed impact benefit agreements with English River First Nation, the Métis Nation—Saskatchewan, and Ya’thi Néné Lands and Resources, representing Hatchet Lake Denesułiné First Nation, Black Lake Denesułiné First Nation, Fond du Lac Denesułiné First Nation, Stony Rapids, Uranium City, Wollaston Lake and Camsell Portage. While details of these agreements remain confidential, they typically include provisions for employment, training, contracts for local businesses, and financial benefits.

Ya’thi Néné Lands and Resources endorsed the project after Denison addressed environmental and other potential impacts. Garrett Schmidt, executive director of Ya’thi Néné Lands and Resources, emphasized the importance of maintaining clean water, intact ecosystems, and land to support the communities’ culture and way of life.

Still, not all communities are supportive. Submissions to regulatory hearings from communities like Birch Narrows Dene Nation and Peter Ballantyne Cree Nation did not endorse the project. Peter Ballantyne Cree Nation previously initiated legal action against the province and Denison Mines regarding the environmental assessment and duty to consult.

Regulatory Approvals and Timeline

The Canadian Nuclear Safety Commission (CNSC) issued Denison Mines a licence to prepare the site and build the mine and mill on February 5, 2026. A separate licence will be required to operate the mine once construction is complete. The provincial government approved the project in August 2025.

Construction is anticipated to take approximately two years, with first production targeted for mid-2028. David Cates, President and CEO of Denison, stated the company aims to become a significant new source of uranium supply before the end of the decade.

Competition in the Athabasca Basin

Denison Mines is one of two companies planning new uranium production in Saskatchewan. Vancouver-based NexGen Energy Ltd. Is awaiting a construction licence decision from the CNSC for its Rook I project, an underground uranium mine also located in the Athabasca Basin. Cameco Corp. Began construction at its Cigar Lake mine in 2005, the last uranium mine approved in the province.