Azarga Releases PEA, Upgraded Resource for Dewey Burdock Project

Azarga Uranium Corp. (TSX:AZZ) released a preliminary economic assessment (PEA) for its Dewey Burdock project, located in South Dakota. The company also upgraded the resource for the project.

Highlights include:

• Measured plus Indicated Resources increase 28% to 8.6 million pounds U3O8at 0.25%
• Estimated pre-tax NPV of US$149.4 million and IRR of 67% (at US$65 per pound uranium sales price assumption)
• IRR of 41% at current term uranium contract price (using US$50 per pound as reported by TradeTech)
• 11-year project production life at approximately one million pounds per year once steady state production level is reached
• Initial capital expenditure estimated at US$27.0 million
• Annual operating costs estimated at US$18.86 per pound (excluding well-field and facility capital costs)

Richard Clement, president and CEO of Azarga, commented:

The updated resource statement included in the PEA confirms Dewey Burdock as the highest grade in situ recovery (‘ISR’) project among North American peers, with an economic profile that should enable construction in the current uranium price environment. It’s a transformational improvement from the PEA produced in 2012, with lower initial capital expenditure and cash costs, more pounds in inventory and an estimated 37% increase in pre-tax NPV.

Watch Azarga Chairman Alexander Molyneux speak about Dewey Burdock at the 2015 Vancouver Resource Investment Conference.

Click here to read the full Azarga Uranium Corp. (TSX:AZZ) press release.