Azarga Uranium Identifies Additional Uranium Mineralization At Dewey Burdock

February 8, 2018 9:00 am

AZARGA URANIUM CORP. (TSX:AZZ) (“Azarga Uranium” or the “Company”) is pleased to announce that the Company has identified additional uranium mineralization at its initial development priority, the Dewey Burdock in-situ recovery (“ISR”) uranium project in South Dakota (the “Dewey Burdock Project”). The Company has identified this mineralization through its continued analysis of historical data owned by the Company (the “Data Set”) and the evaluation of revised ISR cutoff criteria, consistent with other producing ISR projects in nearby Wyoming.

Highlights of the additional uranium mineralization at the Dewey Burdock Project includes:

  • 107 mineralized drill holes with 111 intercepts equal to or exceeding a 0.2 grade-thickness (GT) cutoff using a .02% grade cutoff with an average eU308 grade of 0.105% and an average thickness of 5.5 feet
    • 26% of the mineralized drill holes exceed a 0.5 GT cutoff
  • Falls within the existing Nuclear Regulatory Commission (“NRC”) License boundary for the Dewey Burdock Project
  • Contiguous with ISR amenable resources already identified at the Dewey Burdock Project
  • Provides further indication that the resource trends head west towards the Company’s Dewey Terrace Project
  • Indicates the potential expansion of the Dewey Burdock Project resource to the north and the south within the NRC License boundary

“We are very excited that our analysis of the Data Set and the evaluation of revised ISR cutoff criteria has identified additional uranium mineralization at the Dewey Burdock Project. The newly identified uranium mineralization indicates the potential to increase uranium resources at the Dewey Burdock Project. Further, to this point, the analysis of the Data Set and the revised ISR cutoff criteria has only focused on the Dewey area of the project, which represents approximately 40% of the current resource estimate. As we continue our review of the Data Set, we expect that further uranium mineralization will be identified at the Burdock area of the project. Additionally, the Burdock area of the project contains substantially more historical drilling than the Dewey area,” said John Mays, Chief Operating Officer.

The following table provides a detailed summary of the results for the 107 mineralized drill holes with 111 intercepts that equal or exceed a 0.2 GT cutoff using a .02% grade cutoff:

Hole ID Zone Depth (ft) Thickness (ft) GT Avg. Grade (%)
DB 08-32-7 F11 557.0 5.5 0.63 0.114
DWA 100 F12 477.0 6.5 0.21 0.033
DWA 123 F11 580.5 8.0 0.50 0.062
DWA 124 F11 573.0 5.0 0.66 0.132
DWA 129 F11 576.5 6.5 0.39 0.059
DWA 14 L5 776.0 11.5 0.39 0.034
DWA 159 L6 723.0 3.5 0.27 0.076
DWA 18 L6 668.0 6.5 0.41 0.063
DWA 190 F11 585.5 4.0 0.33 0.082
DWA 21 L5 697.0 2.0 0.25 0.124
DWA 27 F11 579.5 6.0 0.58 0.096
DWA 31 F11 582.5 5.5 0.43 0.077
DWA 40 F13 475.5 2.0 0.25 0.124
DWA 49 L3 714.5 2.0 0.34 0.171
DWM 1 L4 702.0 14.0 0.45 0.032
DWM 13 F12 463.5 1.5 0.20 0.134
DWM 29 L4 670.5 7.0 0.47 0.067
DWM 3 F13 484.5 2.0 0.31 0.154
DWM 3 L1 777.5 8.0 1.04 0.130
DWM 57 F12 572.0 3.5 0.23 0.066
DWM 8 L5 629.5 4.0 0.51 0.127
DWR 103 F12 564.0 4.5 0.24 0.054
DWR 37 F12 583.0 6.0 0.28 0.046
DWR 37 F11 601.5 1.0 0.21 0.208
DWR 4 F12 574.5 4.5 1.01 0.223
DWR 41 F12 578.5 6.0 0.28 0.046
DWR 67 F12 578.5 11.5 0.27 0.023
DWT 13 L4 792.5 9.0 0.54 0.060
DWT 2 F12 470.0 5.0 0.40 0.080
DWT 21 L2B 836.5 5.5 0.92 0.166
DWT 22 F11 578.5 4.0 0.44 0.110
DWT 30 F12 581.0 3.0 0.33 0.110
DWT 48 F12 446.0 2.0 0.22 0.110
DWT 51 L4 660.0 4.0 0.57 0.143
DWT 56 F12 417.5 4.5 0.45 0.100
DY 273 L1 870.5 4.0 0.40 0.100
DY 301 L3 840.0 2.0 0.29 0.145
DY 99-3 L1 894.0 7.0 0.85 0.121
ELA 101 F10 608.0 6.0 0.40 0.067
ELA 105 F12 536.5 3.5 0.26 0.075
ELA 106 F12 522.5 3.0 0.35 0.115
ELA 108 F12 556.5 8.0 0.50 0.063
ELA 109 F12 565.0 2.5 0.22 0.087
ELA 12 F12 546.0 23.5 1.27 0.054
ELA 14 F12 531.5 7.5 0.44 0.058
ELA 17 F11 577.5 4.0 0.22 0.056
ELA 25 F11 579.0 10.0 0.72 0.072
ELA 25 F10 596.5 3.5 0.29 0.082
ELA 26 F11 573.0 1.5 0.23 0.151
ELA 28 F12 570.0 8.0 0.33 0.041
ELA 33 F12 537.0 9.0 0.38 0.042
ELA 42 F12 566.0 4.0 0.22 0.054
ELA 44 F12 568.5 4.0 0.38 0.095
ELA 48 F12 562.5 8.5 0.59 0.070
ELA 64 F13 525.5 1.5 0.23 0.153
ELA 67 F12 556.0 7.0 0.39 0.056
ELA 75 F12 551.0 6.0 0.33 0.055
ELA 76 F12 550.5 15.5 1.43 0.092
ELA 80 F12 560.5 3.0 0.46 0.154
ELA 81 F12 546.5 3.5 0.24 0.068
ELA 87 F12 536.5 6.5 0.32 0.049
ELA 89 F12 554.0 4.5 0.38 0.084
ELA 90 F12 577.0 2.5 0.26 0.104
ELA 92 F10 606.5 1.0 0.43 0.429
ELA 94 L5 780.5 4.5 1.24 0.276
ELM 3 F11 573.0 2.5 0.40 0.160
ELM 38 F12 616.0 6.0 0.23 0.039
ELM 4 F11 603.0 3.5 0.33 0.093
ELM 52 L2B 851.0 3.5 0.30 0.085
ELR 1 F11 594.5 8.5 0.29 0.035
ELR 16 F11 612.0 4.0 0.23 0.057
ELR 18 F11 602.0 9.5 0.59 0.062
ELR 19 F12 568.0 2.0 0.21 0.105
ELR 24 F10 609.5 4.5 0.39 0.087
ELR 27 F12 527.0 5.0 0.27 0.054
ELR 33 F10 580.5 17.5 0.72 0.041
ELR 35 F12 527.0 4.0 0.57 0.142
ELR 40 F12 531.0 3.0 0.22 0.073
ELR 43 F12 531.5 4.0 0.25 0.063
ELR 46 F12 534.5 5.5 0.45 0.082
ELR 49 F11 574.0 5.0 0.24 0.047
ELR 49 F10 590.0 17.5 0.81 0.046
ELR 53 F12 537.0 3.0 0.23 0.076
ELR 54 F10 612.0 11.0 0.74 0.067
ELR 57 F10 592.5 7.0 0.23 0.033
ELR 58 F12 546.5 5.0 0.29 0.058
ELR 60 F12 522.0 5.5 0.48 0.088
ELR 62 F12 534.0 7.5 0.56 0.075
ELR 67 F12 572.0 1.5 0.24 0.163
ELR 68 F11 577.0 3.5 0.27 0.078
ELR 82 F12 522.0 2.0 0.22 0.112
ELR 89 F10 583.5 8.0 0.28 0.034
ELR 93 F10 611.0 5.0 0.54 0.108
ELT 13 L2B 757.5 3.0 1.08 0.360
ELT 24 F12 615.0 7.0 0.49 0.070
ELT 28 F12 540.5 6.5 0.33 0.050
ELT 36 F12 523.0 1.0 0.26 0.260
ELT 50 F12 581.5 1.0 0.25 0.245
ELT 62 L2B 851.5 2.5 0.54 0.217
ELT 64 L2B 866.0 4.5 0.63 0.139
ELT 67 L4 834.0 3.0 1.59 0.529
ELT 95 F11 594.0 13.0 0.27 0.021
ELT 96 F12 558.0 5.5 0.45 0.082
PUA 3 F12 528.0 5.5 0.21 0.037
PUR 27 F12 532.0 6.0 0.31 0.052
PUR 3 F10 608.0 10.0 0.20 0.020
PUR 30 F10 606.0 2.0 0.42 0.210
PUR 38 F12 526.5 7.5 0.32 0.042
PUR 46 F11 551.0 1.0 0.37 0.370
PUR 7 F10 608.5 2.5 0.45 0.180
PUR 8 F12 540.0 2.5 0.33 0.130

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in 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 Data Set includes historical drilling information that has been reviewed by the Company’s geological team, as well as 91 exploratory drill holes completed by the Company in a previous exploration campaign. The Company’s review of the records and information within the 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 not to place undue weight on these results.

The Company’s current resource estimate and preliminary economic assessment dated April 21, 2015, with an effective date of January 29, 2015, for the Dewey Burdock Project use a cutoff grade of 0.05% and GT of 0.5; whereas, the intercepts identified above utilize a cutoff grade of 0.02% eU3O8 and GT of 0.2, which is consistent with other producing ISR projects in nearby Wyoming.

About Azarga Uranium Corp.

Azarga Uranium is an integrated uranium exploration and development company that controls six uranium projects, deposits and prospects in the United States of America (South Dakota, Wyoming and Colorado) and the Kyrgyz Republic. The Dewey Burdock Project, which is the Company’s initial development priority, has received its NRC License and draft Class III and Class V Underground Injection Control (“UIC”) permits from the Environmental Protection Agency (“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:

John Mays, COO
+1 303 790-7528

E-mail: info@azargauranium.com

Disclaimer for Forward-Looking Information

Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding its disclosure and amendments thereto. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements may include, but are not limited to, statements with respect to the Company’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, the potential expansion of the Dewey Burdock Project resource to the north and the south within the NRC License boundary, the potential to increase uranium resources at the Dewey Burdock Project and the Company’s expectation that further uranium mineralization will be identified at the Burdock area of the project. 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 the Company 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 our actual results to differ materially from those expressed or implied by the forward-looking statements, including without limitation: (1) the risk that the Company 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, (2) the risk that the Dewey Burdock Project resource is not expanded to the north and the south within the NRC License boundary, (3) the risk that uranium resources at the Dewey Burdock Project are not increased, (4) the risk that further uranium mineralization is not identified at the Burdock area of the project, (5) the risk that such statements may prove to be inaccurate and (6) 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, the Company 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 Company’s most recent MD&A filed with Canadian security regulators.

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