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Uranium Company Announces 'Robust' PEA for South Dakota Project
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The report projects a 55% pretax and 50% post-tax internal rate of return at US$55 per pound uranium.

Azarga Uranium Corp. (AZZ:TSX; AZZUF:OTCQB) announced in a news release that it filed an NI 43-101 compliant preliminary economic assessment (PEA) on its Dewey Burdock uranium project in South Dakota.

The report outlines an in situ recovery operation producing 14.3 million pounds of U3O8 over 16 years.

In the base case scenario, which assumes a $55 per pound uranium sales price and applies an 8% discount rate, the PEA projects a pretax internal rate of return (IRR) of 55% and a net present value (NPV) of $171.3 million. With the same assumptions, the post-tax IRR is an estimated 50% and the NPV, about $147.5 million.

"The projected cash flows for the Dewey Burdock project PEA are positive in the second year of production, two years after the commencement of construction," the release noted.

As for costs, the initial capex is estimated to be $31.7 million. Cash operating costs are forecast to be $10.46 per pound of production. Royalties and local taxes (except for property tax) are estimated to be $5.15 per pound of production.


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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