AZARGA URANIUM CORP. (TSX:AZZ) (“Azarga Uranium” or the “Company”) is pleased to announce that the Company continues to identify new uranium mineralization at its initial development priority, the Dewey Burdock in-situ recovery (“ISR”) uranium project in South Dakota (the “Dewey Burdock Project”). On 8 February 2018, the Company announced newly identified uranium mineralization at the Dewey area of the Dewey Burdock Project, with the expectation of identifying additional uranium mineralization at the Burdock area of the project. Through the continued analysis of historical data owned by the Company (the “Data Set”) and the evaluation of revised ISR cutoff criteria, consistent with other producing ISR projects in nearby Wyoming, the Company has identified significant, new uranium mineralization at the Burdock area of the Dewey Burdock Project.
Highlights of the new uranium mineralization at the Dewey Burdock Project includes:
- 706 mineralized drill holes with 787 intercepts equal to or exceeding a 0.2 grade-thickness (GT) cutoff using a 0.02% grade cutoff with an average eU3O8 grade of 0.139% and an average thickness of 5.1 feet
- 28% of the mineralized drill holes exceed a 0.5 GT cutoff
- Falls within the existing Nuclear Regulatory Commission (“NRC”) License boundary for the Dewey Burdock Project
- Contiguous with ISR resources already identified at the Dewey Burdock Project
- Further indicates the potential to significantly expand the Dewey Burdock Project resource estimate within the NRC License boundary
- Larger and more continuous resource areas within the Dewey Burdock Project could achieve certain cost reductions compared to the existing preliminary economic assessment
“We are very excited to have completed our initial analysis of the Data Set for the Dewey Burdock Project. The results to date have exceeded our expectations. With initial review of both the Dewey and Burdock areas complete, the newly identified uranium mineralization indicates widespread potential to significantly increase the currently identified uranium resources at the Dewey Burdock Project. The number of newly identified uranium intercepts from this initial review nearly equals the number of intercepts used to calculate the existing resource estimate for the Dewey Burdock Project. We look forward to completing a resource update for the Dewey Burdock Project as well as a revised preliminary economic assessment”, said John Mays, Chief Operating Officer.
In addition to the 706 mineralized drill holes with 787 intercepts contiguous to existing ISR resources, the Company identified 235 mineralized drill holes with 249 intercepts at relatively shallow depth, potentially suitable for non-ISR recovery methods, with an average eU3O8 grade of 0.082% and an average thickness of 6.8 feet.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and was reviewed by John Mays, P.E., Chief Operating Officer for the Company and a Qualified Person under NI 43-101.
The Data Set includes historical drilling information that has been reviewed by the Company’s geological team, as well as 91 exploratory drill holes completed by the Company in a previous exploration campaign. The Company’s review of the records and information within the Data Set reasonably substantiate the validity of this information; however, the Company cannot directly verify the accuracy of the historical data, including the procedures used for sample collection and analysis. Therefore, the Company encourages investors not to place undue weight on these results.
The Company’s current resource estimate and preliminary economic assessment dated April 21, 2015, with an effective date of January 29, 2015, for the Dewey Burdock Project primarily uses a cutoff grade of 0.05% and GT of 0.5; whereas, the intercepts identified above utilize a cutoff grade of 0.02% eU3O8 and GT of 0.2, which is consistent with other producing ISR projects in nearby Wyoming.
About Azarga Uranium Corp.
Azarga Uranium is an integrated uranium exploration and development company that controls six uranium projects, deposits and prospects in the United States of America (South Dakota, Wyoming and Colorado) and the Kyrgyz Republic. The Dewey Burdock Project, which is the Company’s initial development priority, has received its NRC License and draft Class III and Class V Underground Injection Control (“UIC”) permits from the Environmental Protection Agency (“EPA”) and the Company is in the process of completing other major regulatory permit approvals necessary for the construction of the Dewey Burdock Project, including the final Class III and Class V UIC permits from the EPA.