Azarga Uranium Receives Report Demonstrating Favorable Permeability Suitable for in-Situ Recovery Mining At Gas Hills

- July 20th, 2018

Azarga Uranium Corp. (TSX:AZZ) (“Azarga Uranium” or the “Company”) is pleased to announce the positive results of a second hydrologic study, focused on the permeability of the Wind River formation confined aquifer, the primary host of uranium mineralization at the Company’s Gas Hills Uranium Project (“Gas Hills”) located in Wyoming.  

Azarga Uranium Corp. (TSX:AZZ) (“Azarga Uranium” or the “Company”) is pleased to announce the positive results of a second hydrologic study, focused on the permeability of the Wind River formation confined aquifer, the primary host of uranium mineralization at the Company’s Gas Hills Uranium Project (“Gas Hills”) located in Wyoming.  The first study, announced by URZ Energy Corp. on 1 May 2018, focused on piezometric surface conditions and demonstrated that the majority of the deposits at the Gas Hills property had sufficient water pressure in the Wind River formation confined aquifer to conduct in-situ recovery (“ISR”) mining operations.

Blake Steele, CEO & President, stated “this favorable report on permeability in the mineralized Wind River formation confined aquifer at Gas Hills coupled with the favorable piezometric surface conditions confirm that these two important hydrologic parameters are suitable for ISR uranium mining.  We are very encouraged by the results of these two studies and we will continue to evaluate future ISR development options at Gas Hills, consistent with the Company’s strategy of developing US-focused ISR uranium projects.”

Permeability is an important parameter for ISR mining operations.  The higher the permeability (also referred to as hydraulic conductivity), the more water that can be injected into and pumped out of the mineralized aquifer per unit of time (e.g., gallons per minute), a positive for ISR mining operations. Azarga Uranium engaged Hydro-Engineering L.L.C. (“Hydro-Engineering”), the same firm used to conduct the piezometric surface study, to conduct the permeability study. Hydro-Engineering is an experienced consulting firm based in Casper, Wyoming, having conducted numerous hydrologic reports for mine permit applications for several existing and planned uranium mines in Wyoming.

Hydro-Engineering performed a comprehensive review of pump test data for the Gas Hills and pump test data for other mining operations and planned mining operations in Wyoming proximal to Gas Hills.  A summary of Hydro-Engineering’s review is presented below for each project:

Project Name and Owner Hydraulic Conductivity Range (feet/day) Permeability Range (darcy)
Gas Hills; Azarga Uranium               1.0 to 5.7                   0.8 to 2.7
Gas Hills (Peach); Cameco               0.5 to 6.0                   0.3 to 2.89
Lost Creek; Ur-Energy               0.27 to 2.78                   0.13 to 1.3

 

Hydro-Engineering concluded that the hydraulic conductivity at Gas Hills is comparable to hydraulic conductivity values at other ISR mining operations and planned mining operations in Wyoming proximal to Gas Hills.  Thus, the permeability of the mineralized Wind River formation confined aquifer at Gas Hills is suitable for ISR uranium mining.

About Azarga Uranium Corp.

Azarga Uranium is an integrated uranium exploration and development company that controls ten uranium projects, deposits and prospects in the United States of America (“USA”) (South Dakota, Wyoming, Utah and Colorado) and the Kyrgyz Republic, with a primary focus of developing in-situ recovery uranium projects in the USA.  The Dewey Burdock in-situ recovery uranium project in South Dakota (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 (“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.

For more information please visit www.azargauranium.com.

Follow us on Twitter at @AzargaUranium.

For further information, please contact:

Blake Steele, President & CEO

John Mays, COO

+1 303 790-7528

E-mail: info@azargauranium.com

Disclaimer for Forward-Looking Information

Certain information and statements in this news release may be considered forward-looking information or forward-looking statements for purposes of applicable securities laws (collectively, “forward-looking statements”), which reflect the expectations of management regarding its disclosure and amendments thereto. Forward-looking statements consist of information or statements that are not purely historical, including any information or statements regarding beliefs, plans, expectations or intentions regarding the future. Such information or statements may include, but are not limited to, statements with respect to Azarga Uranium’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 report on permeability in the mineralized Wind River formation confined aquifer at Gas Hills coupled with the favorable piezometric surface conditions confirm that these two important hydrologic parameters are suitable for ISR uranium mining and the Company will continue to evaluate future ISR development options at Gas Hills. 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 Azarga Uranium 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 Azarga Uranium 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 permeability in the mineralized Wind River formation confined aquifer at Gas Hills and/or the piezometric surface conditions may not be suitable for ISR uranium mining, (3) the risk that the Company will not continue to evaluate future ISR development options at Gas Hills, (4) the risk that such statements may prove to be inaccurate and (5) other factors beyond Azarga Uranium’s control. These forward-looking statements are made as of the date of this news release and, except as required by applicable securities laws, Azarga Uranium 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 most recent MD&A filed with Canadian security regulators.

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