ENERGY MINERALS

'This marks a monumental achievement for the [uranium] company'

Azarga Uranium (TSX: AZZ) says it has achieved a major milestone as a licensing body ruled in its favour over the company’s proposed Dewey Burdock in-situ recovery uranium project in South Dakota, US.

Staff reporter
 Azarga Uranium says the final license contention was resolved for its Dewey Burdock ISR project in South Dakota

Azarga Uranium says the final license contention was resolved for its Dewey Burdock ISR project in South Dakota

"Resolution of the last remaining contention comes more than four years after the ASLB (Atomic Safety and Licensing Board) issued its partial initial decision for the Dewey Burdock Project and marks a monumental achievement for the company," president and CEO Blake Steele said.

"The ASLB proceeding is now terminated and the Dewey Burdock Project NRC License is contention free for the first time since this proceeding commenced."

However local media reported the Oglala Sioux Tribe was considering whether to appeal the decision which related to the identification and protection of historic and cultural resources.

Azarga said it was in the process of working to obtain further permit approvals for Dewey Burdock from the Environmental Protection Agency.

The company had trebled the project's measured ISR resource just over 12 months ago to 13.78 million pounds.

It released a "robust" preliminary economic assessment earlier this month, which envisaged initial capex of US$31.7 million, 14.3 million pounds of U3O8 production over 16 years, and a post-tax NPV (8% discount) of $147.5 million and IRR of 50%.

The PEA estimated direct cash operating costs at $10.46/lb and used a base case $55/lb uranium sales price.

This compares with a current spot price of about $26/lb, and a November long-term price of $32.50/lb, according to calculations by Canada-based producer Cameco.

"The robust PEA economics along with the ASLB decision continue to pave the way towards construction and further de-risk the Dewey Burdock project," Steele said, adding the estimated costs meant it was well-positioned to capitalise on the anticipated uranium price recovery.

Azarga's Class A shares gained 9.7% on Friday to C17c, having ranged from 28-10.5c over the past year.

It is capitalised at $31.4 million (US$23.8 million).

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.