Azarga Uranium achieves crucial permitting milestone at its Dewey Burdock project
|Image credit: Azarga Uranium.|
(Kitco News) - Azarga Uranium (TSX: AZZ, OTCQB: AZZUF, FRA: P8AA) today announced that the United States Environmental Protection Agency (the 'EPA') has issued the final permits for the company's Class III and Class V Underground Injection Control activities at its flagship Dewey Burdock in-situ recovery uranium project in South Dakota, USA.
The EPA permits represent the second of three major regulatory agency approvals, and the final key federal agency approval, required for the Dewey Burdock Project. The NRC has already issued the company's Source and Byproduct Materials License.
The third and remaining major regulatory agency approval is required by the South Dakota DENR, whose staff have already recommended the approval of the key state permits. Board hearings to finalize the key state permits were deferred until the federal permits, namely those pertaining to the NRC and EPA, were issued. With both the NRC and EPA Permits now issued, the company will recommence the state permitting process imminently.
President and CEO Blake Steele stated that “This critical milestone significantly de-risks our flagship asset, the advanced stage, low-cost Dewey Burdock Project, and moves the company substantially closer to becoming the next uranium producer in the USA.”
Dewey Burdock deposit contains 18 Mlbs of U3O8 resources in Measured, Indicated and Inferred categories. In addition to the ISR mineral resource estimate, the NI 43-101 resource estimate includes a non-ISR (located above the water table) mineral resources containing ~1.4 Mlbs of U3O8.
The Dewey Burdock PEA resulted in a pre-income tax NPV of $171.3 million at a discount rate of 8% and an IRR of 55% compared to a post-income tax NPV of $147.5 million at a discount rate of 8% and an IRR of 50%.
Azarga Uranium is an integrated uranium exploration and development company that controls ten uranium projects and prospects in the United States of America (South Dakota, Wyoming, Utah and Colorado), with a primary focus of developing in-situ recovery uranium projects.