Wheeler River - Phoenix Feasibility Study: C$1.57B NPV, 73% IRR
Denison Mines Corp.'s Wheeler River - Phoenix 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 Wheeler River - Phoenix 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 Base case US$68.89-US$78.36/lb U3O8; also US$100/lb case.
Production and mine plan. The project envisions an in-situ recovery (isr) operation. Life of mine is 10 years.
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 | 56.7 million lbs U3O8 |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 280,200 tonnes | 11.4% U3O8 | 70.6M lbs U3O8 |
| Measured & Indicated (Zone A high-grade) | — | 46.0% U3O8 | 56.3M lbs U3O8 |
Our Analysis
The 73% after-tax IRR is exceptional — top-quartile across all commodities and well above the 20%+ threshold that single-asset juniors require. The 8% discount rate is standard for NPV reporting but flatters the C$1.57B NPV; a higher rate would compress that figure meaningfully. The NPV sits at roughly 0.4x market cap, which cuts both ways: the market may be pricing in execution risk, or the asset may be underappreciated if the study’s assumptions hold.
Capital intensity is low at 38% of NPV, reducing funding risk, and the 1-year payback is unusually fast. The 10-year mine life is short, limiting long-term commodity exposure but also constraining total value. The Athabasca Basin in Saskatchewan is a top-tier mining jurisdiction, which lowers political risk. The base-case price range of US$68.89–US$78.36/lb is the key sensitivity; the US$100/lb case highlights upside optionality. The single most important watch-item is permitting and construction timeline in a remote, high-grade region — any delays could erode the rapid payback advantage.
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.