Azarga Uranium Identifies Significant Second Area of New Uranium Mineralization at Dewey Burdock

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 following tables provide a detailed summary of the results for the 941 mineralized drill holes with 1036 intercepts that equal or exceed a 0.2 GT cutoff using a 0.02% grade cutoff:

Data contiguous to existing ISR resources:

Data potentially suitable for non-ISR recovery methods:

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.

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Disclaimer for Forward-Looking Information

Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding its disclosure and amendments thereto. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements may include, but are not limited to, statements with respect to the Company’s continued efforts to obtain all 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, 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, the newly identified uranium mineralization indicates widespread potential to significantly increase the currently identified uranium resources at the Dewey Burdock Project and we look forward to completing a resource update for the Dewey Burdock Project as well as a revised preliminary economic assessment. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including without limitation: (1) the risk that the Company does not obtain all major regulatory permit approvals necessary for construction of the Dewey Burdock Project, including the final Class III and Class V UIC permits from the EPA, (2) the risk that the Dewey Burdock Project resource estimate is not significantly expanded within the NRC License boundary, (3) the risk that larger and more continuous resource areas within the Dewey Burdock Project do not achieve cost reductions compared to the existing preliminary economic assessment, (4) the risk that the newly identified uranium mineralization will not significantly increase the currently identified uranium resources, or increase them at all, at the Dewey Burdock Project, (5) the risk that the Company does not complete a resource update for the Dewey Burdock Project as well as a revised preliminary economic assessment, (6) the risk that such statements may prove to be inaccurate and (7) other factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release and, except as required by applicable securities laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the “Risks and Uncertainties” section in the Company’s most recent MD&A filed with Canadian security regulators.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

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Source: www.fscwire.com