Canada-based Denison Mines is preparing to begin site preparation and construction of the Phoenix in-situ recovery uranium mine, in Saskatchewan, later this month, president and CEO David Cates said on Tuesday.

Phoenix, which forms part of the Wheeler River project, is expected to produce about six-million pounds a year of uranium oxide once in operation.

“Phoenix will be one of the few new sizeable sources of uranium production expected to come to the market before the end of the decade,” Cates said, noting that improving market fundamentals suggested a growing need for new sources of uranium production.

“Uranium consumers and producers are continuing to engage in constructive price discovery through on-market and off-market negotiations, which has resulted in a sustained increase in the long-term price of U₃O₈,” said Cates.

Denison’s board approved a final investment decision for the C$600-million project in February, with construction expected to take about two years and first production targeted for mid-2028.

The project also secured the final regulatory approval required for construction earlier this year after the administrative tribunal of the Canadian Nuclear Safety Commission approved the environmental assessment and issued the licence to prepare the site and construct the mine.

Denison said the approval marked the first time in more than 20 years that a uranium mine in Canada had received federal approval for construction.

Engineering and construction planning for the project advanced significantly during 2025, with about 87% of total engineering completed by the end of the year and most primary engineering deliverables issued for construction.

The company has also awarded a construction management contract to Wood Canada, which will oversee procurement, construction management for the processing plant, installation of site infrastructure and integrated project controls.

“We believe Phoenix is a unique 'nation building' project that has the potential to generate significant benefits for our shareholders, employees, contractors, Indigenous partners, and the public through our sustainable development of the project and its contribution of much needed nuclear fuel supply for a growing global fleet of nuclear reactors,” said Cates.

The company signed agreements with local communities, including an impact benefit agreement with the Métis Nation–Saskatchewan and several regional Métis groups, confirming their consent and support for the development and operation of the Wheeler River project.

In addition, Denison signed the Nuhenéné Benefit Agreement with the Ya'thi Néné Land and Resource Office, three First Nations and four municipalities in northern Saskatchewan, supporting the development of the Wheeler River project and other Denison interests in the region.