The study put initial capex at US$26 million and estimated a post-tax IRR of 101% and NVP8 of $102.6 million.
It used a base case uranium price of $55 per pound and estimated pre-tax production costs of $28.20/lb.
The uranium spot price is currently about $32/lb.
Using a $35/lb uranium price, the PEA put pre-tax NPV at $34.9 million and IRR at 44%.
The study was based on a March resource update, which increased Gas Hills' measured and indicated resource by 128% to 10.77 million pounds U3O8 and put the M&I ISR resources at 7.7Mlb.
The PEA envisaged Gas Hills as a satellite development with final processing done at a facility to be constructed at Azarga's Dewey Burdock project across the border in South Dakota.
President and CEO Blake Steele said Wyoming had a long history of successful ISR operations.
"The PEA results further validate our company's strategy of developing low-cost ISR projects as we continue to progress our flagship Dewey Burdock project towards construction," he said.
"With uranium markets in a structural deficit, Azarga Uranium is exceptionally well positioned to capitalise on the anticipated recovery in the uranium price through its two tier one development-stage ISR uranium projects in the USA."
Gas Hills was forecast to produce a total of 6.5 million pounds of U3O8 over seven years, with steady state production of 1Mlb/year.
Dewey Burdock was expected to produce 14.3Mlb over 16 years according to a 2020 PEA.
Azarga had raised C$6 million in December at 20c per unit to advance its projects, repay loans and for general working capital.
Its shares (TSX: AZZ) have spanned C15.5-36c over the past year and closed unchanged at 25.5c yesterday, capitalising it at $59.6 million (US$48 million).