The 100%-owned advanced stage Juniper Project is located in Wyoming.
The Juniper Ridge Project is located in the southwest portion of Wyoming, approximately 10 miles west of the town of Baggs and accessible by county and local roads. The Juniper Project consists of approximately 3,300 acres of unpatented lode mining claims and State of Wyoming mineral leases and is located within a brownfield site which has experienced extensive exploration, development, and mine production.
Uranium was discovered in the Juniper Ridge area in 1951, with commercial uranium mining occurring intermittently from 1954 until 1966. Seven companies have mined uranium in the area producing over 0.5 million pounds via open-pit and shallow underground mines.
The Juniper Ridge Project was owned by Strathmore Minerals Corporation from 2007 until 2013, when the company and the project was acquired by Energy Fuels Inc. URZ Energy purchased the project on October 31, 2016 and it is now 100% owned by Azarga Uranium.
Preliminary Economic Assessment
In June 2017, a technical report was prepared by BRS Inc. and T.P. McNulty and Associates Inc. on the Juniper Ridge Project titled “Juniper Ridge Uranium Project, Amended and Restated 43-101 Mineral Resource and Preliminary Economic Assessment Technical Report” (the “Juniper Ridge PEA”) with an effective date of June 9, 2017. The Juniper Ridge Project contains indicated uranium resources of 6.0 million pounds U3O8 (5.1 million tons at an average grade of 0.058% U3O8) and inferred uranium resources of 0.2 million pounds U3O8 (0.1 million tons at an average grade of 0.085% U3O8) at a 0.1 GT cut-off.
Details of the assumptions and parameters used with respect to the Juniper Ridge PEA, including quality estimates and information on data verification, are available under the SEDAR profile of URZ Energy at www.sedar.com. The Juniper Ridge PEA is preliminary in nature; it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the Juniper Ridge PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The Juniper Ridge PEA resulted in a pre-tax net present value of $27.3 million at a discount rate of 8% and an internal rate of return of 26% compared to a post-tax net present value of $19.9 million at a discount rate of 8% and an internal rate of return of 22% based on open pit mining and heap leach extraction of uranium. The Juniper Ridge PEA assumed uranium prices of $65/lb U3O8, total direct operating costs of $39.77/lb U3O8 and capital expenditures of $36.7 million.
While local mineralization displays some of the characteristics of known uranium deposits in the Gas Hills uranium district and in the Powder River Basin of Wyoming, the mineralization at the Juniper Ridge Project is sandstone hosted. Data sources for the estimation of uranium mineral resources for the Juniper Ridge Project consists of 2,716 drill holes including radiometric equivalent data for 2,167 drill holes completed before 2011, Uranium Spectral Analysis Tool assay data for 400 drill holes completed during the 2011 drilling program, and radiometric equivalent and PFN assay data for 149 drill holes completed in 2012.
Table 1: Juniper Ridge 43-101 Resource Estimate
|Class||Cut-off||Tons (x1,000)(1)||Weighted Average Grade (% eU3O8)||Pounds eU3O8 (x1,000)(1)|