Azarga Uranium almost doubles resource at Dewey Burdock
Azarga Uranium (TSX: AZZ; US-OTC: PWURF) has increased the in-situ recovery measured and indicated resource at its Dewey Burdock uranium project in South Dakota.
The project now contains 6.8 million measured and indicated tonnes grading 0.113% uranium for 16.93 million lb. uranium, a 97% increase over the previous resource. The measured resource alone increased 234%, from 4.12 million lb. uranium to 13.78 million lb. uranium.
The project now contains 6.8 million measured and indicated tonnes grading 0.113% uranium for 16.93 million lb. uranium, a 97% increase over the previous resource
The project also contains 664,000 inferred tonnes grading 0.056% uranium for 818,000 lb. uranium. It contains an additional 1.07 lb. uranium at 0.057% uranium in the measured category that is not in-situ.
The company speculates that this larger and more contiguous resource will lead to improved project economics, compared with its existing preliminary economic assessment.
The 2015 study outlined a $113.8 million after-tax net present value at an 8% discount rate and a 57% after-tax internal rate or return. The project would require US$27 million in initial capital but $135.7 million in sustaining capital over a 16 year mine life.
In early November, the U.S. Atomic Safety and Licensing Board denied the Oglala Sioux Tribe’s motion for summary disposition and request to revoke Azarga’s Dewey Burdock project license. The company retains its permits despite continued opposition to the project. The Olgala Sioux Tribe is trying to bar the project from proceeding claiming it does not comply with the protection of historic and cultural resources as outlined in the National Environmental Policy Act. There is still one remaining contention on the project.