VANCOUVER, BC / ACCESSWIRE / June 8, 2020 / AZARGA URANIUM CORP. (TSX:AZZ)(OTCQB:AZZUF)(FRA:P8AA) ("Azarga Uranium" or the "Company") is pleased to announce that the Company has identified further uranium mineralization at its Gas Hills Uranium Project in Wyoming, USA (the "Gas Hills Project"). This newly identified second area of high-grade uranium mineralization augments the additional uranium mineralization announced by the Company for its Gas Hills Project on 6 April 2020 and was identified through the continued analysis of historical data owned by the Company (the "Gas Hills Data Set").
Highlights of the continued analysis include:
- Gamma log readings for 82 mineralized drill holes equal to or exceeding a 0.2 grade-thickness ("GT") cutoff using a 0.02% grade cutoff with an average U308 grade of 0.205% and an average thickness of 4.0 feet
- Sandstone-hosted roll front uranium mineralization located below the water table indicating potential for in-situ recovery ("ISR") amenability
- Uranium mineralization contained within the Company's existing mineral leases/permits for the Gas Hills Project
- Uranium mineralization falls within an existing Gas Hills Project exploration target of 1.4 to 2.0 million tons averaging 0.04% - 0.10% U308 (see note 1 below) and indicates the potential to supplement the existing resource estimate without additional drilling
"We are very excited to have completed our initial analysis of the Gas Hills Data Set, which has identified significant additional uranium mineralization at the Gas Hills Project and indicates widespread potential to supplement the existing uranium resources. Further, all uranium mineralization identified during the initial analysis occurs in sandstone-hosted roll fronts located below the water table, indicating the potential for ISR amenability. The Gas Hills is a prolific uranium district with approximately 100 million pounds of past production and uranium-focused companies including Cameco Corporation and Ur-Energy Inc. also hold positions in this district. We look forward to completing an updated resource estimate for the Gas Hills Project, which has the potential to transform into a significant satellite deposit for the Company's initial development priority, the Dewey Burdock Project. Utilization of planned infrastructure for the Dewey Burdock Project has the potential to significantly reduce the cost profile of the Gas Hills Project", said John Mays, Chief Operating Officer."
The following table provides a detailed summary of the gamma log readings for the 82 mineralized drill holes that equal or exceed a 0.2 GT cutoff using a 0.02% grade cutoff:
In addition to the gamma log readings detailed above, certain drill holes were also logged by prompt fission neutron equipment ("PFN"). The PFN is a specialized logging tool with neutron activation to determine the uranium concentrations in the drilled holes and can be used to determine the direct content of uranium in the host rocks. The following table provides a detailed summary of the results for the 8 mineralized drill holes also logged by PFN that equal or exceed a 0.2 GT cutoff using a 0.02% grade cutoff:
The gamma log readings do not consider adjustments for disequilibrium; however, chemical assays within the area of the drill hole data presented in this news release indicates that actual uranium concentrations are greater than the drill hole logs. Thus, the results of the drill hole logs could be viewed as conservative.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument ("NI") 43-101 and was reviewed by John Mays, P.E., Chief Operating Officer for the Company and a Qualified Person under NI 43-101.
The Gas Hills Data Set includes historical drilling information that has been reviewed by the Company's geological team. Also of note, a previous owner of the Gas Hills Project completed certain verification drilling from 2007 to 2013. The Company's review of the records and information within the Gas Hills Data Set reasonably substantiate the validity of this information; however, the Company cannot directly verify the accuracy of the historical data, including the procedures used for sample collection and analysis. Therefore, the Company encourages investors to exercise appropriate caution when evaluating these results.
Please refer to the NI 43-101 technical report prepared by BRS Inc. on the Gas Hills Project titled "Amended and Restated Gas Hills Uranium Project, Mineral Resource and Exploration Target NI 43-101 Technical Report, Fremont and Natrona Counties, Wyoming, USA" with an effective date of June 9, 2017. Exploration targets have been quantified where there is sufficient geological and grade evidence from limited drilling to interpret that mineralization may extend from areas of past production, extensions of defined mineral resources, or based on the limited drilling. The potential quantities and grades of the exploration targets are conceptual in nature and there has been insufficient exploration to define a mineral resource. Furthermore, it is uncertain if additional exploration will result in the target being delineated as a mineral resource.
About Azarga Uranium Corp.
Azarga Uranium is an integrated uranium exploration and development company that controls ten uranium projects and prospects in the United States of America ("USA") (South Dakota, Wyoming, Utah and Colorado), with a primary focus of developing in-situ recovery uranium projects. The Dewey Burdock in-situ recovery uranium project in South Dakota, USA (the "Dewey Burdock Project"), which is the Company's initial development priority, has received its Nuclear Regulatory Commission License and draft Class III and Class V Underground Injection Control ("UIC") permits from the Environmental Protection Agency (the "EPA") and the Company is in the process of completing other major regulatory permit approvals necessary for the construction of the Dewey Burdock Project, including the final Class III and Class V UIC permits from the EPA.
For more information please visit www.azargauranium.com.
Follow us on Twitter at @AzargaUranium.
For further information, please contact:
Blake Steele, President and CEO
+1 303 790-7528
Disclaimer for Forward-Looking Information
Certain information and statements in this news release may be considered forward-looking information or forward-looking statements for purposes of applicable securities laws (collectively, "forward-looking statements"), which reflect the expectations of management regarding its disclosure and amendments thereto. Forward-looking statements consist of information or statements that are not purely historical, including any information or statements regarding beliefs, plans, expectations or intentions regarding the future. Such information or statements may include, but are not limited to, statements with respect to the additional uranium mineralization having the widespread potential to supplement the existing Gas Hills Project resource estimate, the additional uranium mineralization having the potential to be ISR amenable, the Company completing an updated resource estimate at the Gas Hills Project, the Gas Hills Project having the potential to transform into a significant satellite deposit for the Company's initial development priority, the Dewey Burdock Project, the utilization of planned infrastructure for the Dewey Burdock Project having the potential to significantly reduce the cost profile of the Gas Hills Project, the results of the drill hole logs being viewed as conservative and Azarga Uranium's continued efforts to obtain all major regulatory permit approvals necessary for the construction of the Dewey Burdock Project, including the final Class III and Class V UIC permits from the EPA. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Azarga Uranium will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect. A number of risks and uncertainties could cause actual results to differ materially from those expressed or implied by the forward-looking statements, including without limitation: the risk that the additional uranium mineralization does not supplement the existing Gas Hills Project resource estimate, the risk that the additional uranium mineralization is not ISR amenable, the risk that the Company does not complete an updated resource estimate at the Gas Hills Project, the risk that the Gas Hills Project does not transform into a significant satellite deposit for the Company's initial development priority, the Dewey Burdock Project, the risk that planned infrastructure for the Dewey Burdock Project is not developed or does not significantly reduce the cost profile of the Gas Hills Project, the risk that the drill hole logs are not conservative, the risk that Azarga Uranium does not obtain all major regulatory permit approvals necessary for construction of the Dewey Burdock Project, including the final Class III and Class V UIC permits from the EPA, the risk that such statements may prove to be inaccurate and other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and, except as required by applicable securities laws, Azarga Uranium assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the most recent AIF filed with Canadian security regulators.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.
SOURCE: Azarga Uranium Corp.
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