Denison releases ISR uranium mine update, Q1 report
Denison Mines Corp. [DML-TSX] has released its financial statements and management’s discussion and analysis for the First quarter of 2025. The press release contains a progress report on the company’s Pheonix project on the Wheeler River property in Saskatchewan. It is expected to rank as Canada’s first In-Situ Recovery (ISR) uranium mine and potentially one of the lowest-cost uranium mines in the world.
In-situ recovery involves processing the uranium while it is still in the ground through the injection of catalyzing agents into the ore.
In-situ-recovery is only possible in porous geological formations (like sandstone) which are amenable to such a technique. On average, the capital spend needed to put an ISR uranium project into production is less than 15% of the cost to build a conventional hard-rock uranium mine.
Aside from the production cost, ISR leaves a much smaller environmental footprint because it does not require the construction of a tailing’s impoundment facility
“With the Canadian Nuclear Safety Commission announcing in Q1 2025 the scheduling for public hearing for our flagship Pheonix In-Situ Recovery project in late 2025, our focus for the remainder of the year has shifted to completion of the detailed design engineering phase and advancement of construction planning and procurement efforts,’’ said Denison President and CEO David Cates. “Our plans are designed to put us in a position to start construction in early 2026, following anticipated regulatory approvals,’’ he said. “Based on this timeline, we expect to be able to maintain our previous guidance of first production from Pheonix by mid-2028, which would make Pheonix the first new large-scale uranium mine in northern Saskatchewan since the Cigar Lake mine was commissioned in 2014.”
Cates went on to say that by the end of the first quarter of 2025, the company had achieved 75% completion of total engineering for Pheonix, and has already funded over $7 million and committed a further $67 million for long-lead capital purchases. “With 2.2 million pounds of U308 in physical uranium holdings on hand, strong balance sheet, and no debt, Denison remains in an enviable financial position – able to fund both (i) our pre-final investment decision investments in Pheonix and (ii) important potential future growth initiatives,’’ Cates said.
“At our McLean lake Joint Venture (MLJV), with Orano Canada, we are expecting 2025 to be a notable year with the commencement of mining at the McClean North deposit using the MLJV’s patented Surface Access Borehole Resource Extraction mining method,’’ he said. “This far this year, site preparation activities have recommenced, and we are expecting mining to commence in the coming months.’’
Denison Mines shares eased 0.917% or $0.02 to $2.16. The shares trade in a 52-week range of $3.45 and $1.58.