AZARGA URANIUM CORP. (TSX: AZZ, OTCQB: AZZUF, FRA: P8AA) (“Azarga Uranium” or the “Company”) is pleased to announce that the United States Nuclear Fuel Working Group (“NFWG”) has released its report detailing the Strategy to Restore American Nuclear Energy Leadership. This strategy is designed to restore America’s competitive nuclear advantages and proposes, among other items, that the U.S. Government “take immediate and bold action to revive and strengthen the uranium mining industry”. The strategic objectives will “restore the viability of the entire front-end of the nuclear fuel cycle” over a multi-year effort through direct uranium purchases to establish a new uranium reserve (please refer to the Company’s 12 February 2020 press release).
Blake Steele, President and CEO stated, “We commend President Trump and the NFWG for recognizing the importance of the United States nuclear fuel cycle, specifically the uranium mining industry, and developing a comprehensive strategy to restore America’s competitive nuclear energy advantage. We are also encouraged that the Administration will provide funding for the competitive procurement of U.S. uranium, considering our focus on advanced stage and low-cost in-situ recovery projects in the U.S., through the establishment of a new uranium reserve as reflected in the President’s 2021 fiscal year budget proposal. The NFWG report unquestionably confirms the Administration’s commitment to reviving the United States nuclear fuel cycle, of which uranium mining is a critical component.”
Steele further noted, “The Company anticipates being well positioned to realize the benefits of the Administration’s support of the United States uranium industry. Our flagship asset, the advanced stage, low-cost Dewey Burdock In-Situ Recovery Uranium Project in South Dakota, USA (the “Dewey Burdock Project”), is one of the preeminent undeveloped uranium projects in the United States. A recently completed Preliminary Economic Assessment for the Dewey Burdock Project estimated direct cash costs of US$10.46 per pound of production over a 16-year production life and low initial capital expenditures of US$31.7 million. Though the Dewey Burdock Project is already economically robust and internationally competitive, the NFWG report should provide further benefits including streamlined regulatory reform.”
A summary of the most relevant points included in the NFWG report pertaining to the U.S. uranium mining industry include:
- U.S. government purchases of 17-19 million pounds of uranium, beginning in 2020, from domestic producers for a strategic U.S. uranium reserve.
- The Department of Energy will end the uranium bartering program and reevaluate the Department of Energy’s excess uranium inventory management policy.
- Streamline regulatory reform and land access for uranium extraction.
- Support Department of Commerce efforts to extend the Russian Suspension Agreement to protect against future uranium dumping in the U.S. market.
- Enable the Nuclear Regulatory Commission to deny imports of nuclear fuel fabricated in Russia or China for national security purposes.
- Fund advanced water treatment technology for uranium mining and in-situ recovery.
About Azarga Uranium Corp.
Azarga Uranium is an integrated uranium exploration and development company that controls ten uranium projects and prospects in the United States of America (“USA”) (South Dakota, Wyoming, Utah and Colorado), with a primary focus of developing in-situ recovery uranium projects. The Dewey Burdock in-situ recovery uranium project in South Dakota, USA (the “Dewey Burdock Project”), which is the Company’s initial development priority, has received its Nuclear Regulatory Commission License and draft Class III and Class V Underground Injection Control (“UIC”) permits from the Environmental Protection Agency (the “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.
Source: Azarga Uranium Corp.
