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News Update


Company Reports 'Robust PEA' for South Dakota Uranium Project
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The report validates the Colorado-based company's strategy.

Azarga Uranium Corp. (AZZ:TSX; AZZUF:OTCQB) announced in a news release the results of a preliminary economic assessment (PEA) for its Dewey Burdock uranium project in South Dakota.

"The PEA demonstrates robust economics and cements the Dewey Burdock project as one of the pre-eminent, undeveloped, in situ recovery projects in the U.S.," Azarga President and CEO Blake Steele said in the release.

The PEA outlined a base case scenario of 14.3 million pounds of U3O8 produced over 16 years. This would yield a pre-tax internal rate of return (IRR) of 55% and constitute a net present value (NPV) of US$171.3 million, assuming a US$55 per pound uranium sales price and an 8% discount rate.

With the same discount rate, the post-income tax IRR is projected to be 50% and the post-income tax NPV is US$147.5 million.

As for costs, the required initial capital outlay is estimated at US$31.7 million. Direct cash operating costs are forecast to be US$10.46 per pound of production.

"The estimated cost profile and modest initial capital expenditures leave Dewey Burdock and the company well positioned to capitalize on the anticipated recovery in the uranium price," Steele added.

The company noted that it is continuing to advance Dewey Burdock toward construction.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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