NORTH — Denison Mines says construction is advancing at its Phoenix uranium project in northern Saskatchewan, with the company targeting first production in 2028 and positioning the operation to become Canada’s first in-situ recovery uranium mine.
The company began site clearing and early works construction in March and has recently transitioned to full-scale construction, according to David Cates, Denison’s president and CEO.
Denison Mines said that Phoenix is expected to produce nearly 60 million pounds of uranium over its projected 10-year mine life. Denison said the project represents the next major source of new uranium supply expected to enter the market since the startup of Cigar Lake.
“Phoenix was the first new large-scale uranium mine permitted for construction in over 20 years in Canada,” Cates told SaskToday. “It is also on track to be Canada’s first In-Situ Recovery (ISR) uranium mine.”
Denison updated its capital cost estimate for the project in January, placing total initial capital expenditures, including pre-final investment decision costs, at $700 million. As of June 30, the company reported spending $111 million on initial capital expenditures.
Cates said the project is expected to employ up to 400 people, including contractors, at peak construction. Once operational, Phoenix is projected to create up to 150 direct jobs.
Denison has secured support agreements with more than 30 Indigenous nations, organizations and municipalities connected to the project area. They include English River First Nation, Birch Narrows Dene Nation, Hatchet Lake First Nation, Peter Ballantyne Cree Nation, Kineepik Métis Local #9, Northern Village of Pinehouse, Northern Village of Île-à-la-Crosse, Northern Village of Beauval, Uranium City, Ya’thi Néné Lands and Resources, Métis Nation-Saskatchewan and several northern municipalities and Métis locals, according to Cates.
Cates said the company continues to work closely with communities to meet commitments made through impact-benefit agreements and to provide ongoing project information.
Phoenix will use ISR mining rather than conventional underground mining. The method involves circulating a mining solution through the uranium-bearing orebody to dissolve and recover uranium without excavating ore from underground.
According to Denison, ISR eliminates the need for underground mining and reduces surface disturbance, tailings production, dust, noise and water consumption compared with traditional mining methods.
The company selected ISR after reviewing more than 30 potential mining methods for the deposit.
Denison also plans to use a freeze wall around the orebody. The system works by circulating chilled brine through a series of wells drilled around the deposit, freezing groundwater and creating an impermeable barrier.
The freeze wall serves as an additional hydraulic-control safeguard, providing a backup barrier to help prevent groundwater inflow and contain mining solutions within the production area.
While inflation, tariffs and labour shortages remain concerns across the mining sector, Cates said Phoenix’s relatively small capital budget and short construction timeline help reduce exposure to escalating costs.
“The nature of ISR mining is less labour-intensive relative to other mining methods,” he said.
Denison already has agreements in place to sell more than eight million pounds of uranium concentrate and says it is in advanced negotiations for the sale of more than seven million additional pounds. The company supplies customers through existing uranium inventories and production received from its joint venture with Orano Canada at the McClean Lake operation.
Looking ahead, Cates said weather-related challenges remain one of the project’s biggest risks. Spring flooding, summer wildfires and extreme winter temperatures can all disrupt construction activities in northern Saskatchewan.
To help maintain the construction schedule, Denison recently expanded operations to include night shifts and is prioritizing weather-sensitive work during the summer construction season.
Among the milestones the company is watching most closely are the installation of the freeze wall, completion of concrete foundations for the process plant and main power transformer, establishment of the site’s airstrip, installation of on-site power distribution systems and continued progress on civil earthworks.
Denison reported that more than 20 per cent of the project’s total civil work and nearly all civil subgrade work required for the process plant and wellfield areas had been completed as of early August.
By Nicole Goldsworthy, Local Journalism Initiative Reporter, SaskToday.ca
Original Published on Aug 18, 2026 at 14:00
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