Phoenix ISR (Wheeler River) Feasibility Study: C$1.57B NPV, 73% IRR
Denison Mines Corp.'s Phoenix ISR (Wheeler River) in Athabasca Basin, Northern Saskatchewan, Canada has a Feasibility Study outlining an after-tax NPV of C$1.57B, an after-tax IRR of 73%, and initial capital of C$600M. The proposed mine plan runs 10 years.
Denison Mines Corp.'s Phoenix ISR (Wheeler River) has reported Feasibility Study results for the uranium project in Athabasca Basin, Northern Saskatchewan, Canada. The study headlines an after-tax net present value of C$1.57B at a 8% discount rate. It reflects Denison Mines Corp.'s (DML.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$1.57B using a 8% discount rate. After-tax IRR is 73%. Initial capital expenditure is estimated at C$600M. The study models a payback period of 1 years. All-in sustaining costs are pegged at 18.41 USD/lb U3O8. Economics are based on US$68.89-US$78.36/lb U3O8 (base case), US$100/lb U3O8 ($100/lb case).
Production and mine plan. The project envisions an in-situ recovery (isr) operation. Life of mine is 10 years. Average head grade is 11.7% U3O8.
Resources and ownership. The company holds a 95% interest in the project.
These figures are extracted from Denison Mines Corp.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven & Probable | 219,000 tonnes | 11.7% U3O8 | 56.7M lbs U3O8 |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 280,200 tonnes | 11.4% U3O8 | 70.6M lbs U3O8 |
| Measured & Indicated (Zone A high-grade domain) | — | 46.0% U3O8 | 56.3M lbs U3O8 |
Our Analysis
The 73% after-tax IRR places this project in the top quartile of our tracked universe, well above the practical financing hurdle for even high-risk single-asset developers. The 1-year payback and capital-light profile (capex at 38% of NPV) are standout features that reduce execution and funding risk. However, the 8% discount rate used for NPV reporting is low relative to typical industry practice, which inflates the NPV figure—investors should adjust their own discount rate expectations accordingly.
The NPV-to-market-cap ratio (0.4x) presents a two-sided picture: it could signal that the market has not fully priced the asset, or that skepticism exists around financing, permitting, or the 10-year mine life’s ability to sustain returns. The Athabasca Basin jurisdiction is generally mining-friendly but carries high regulatory and environmental scrutiny for uranium. The key watch-item is the price assumption: the base case range (US$68.89–US$78.36/lb) sits well above historical averages, and the US$100/lb case is aggressive—returns are highly sensitive to uranium price realization over a relatively short mine life.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.