Gas Hills Project (100% – Wy, USA)

The Gas Hills Uranium Project is located in Wyoming. Azarga Uranium owns 100% of the project.

Location

The Gas Hills Project, located in the historic Gas Hills Uranium District, is located 45 miles east of Riverton, Wyoming. The Gas Hills Project consists of approximately 11,000 acres of unpatented lode mining claims, State of Wyoming, and private mineral leases and is located within a brownfield site which has experienced extensive development and mine and mill site production.

History

Between 1953 and 1988, various companies explored, developed, and produced uranium in the Gas Hills uranium district, including on lands now controlled by URZ. Three uranium mills operated in the district and two others nearby were also fed by ore mined from the Gas Hills district. Cumulative production from the district is in excess of 100 million pounds of uranium, mainly from open-pit mining, but also from underground mining.

The Gas Hills 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.

Summary of Mineral Resources

In June 2017, a technical report was 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”. The technical report outlines an indicated resource of 4.7 million pounds eU3O8 (2.4 million tons at an average grade of 0.098% eU3O8) and an inferred resource of 2.5 million pounds eU3O8 (2.3 million tons at an average grade of 0.054% eU3O8) – see Table 1 below for further details.

The uranium mineralization is contained in Wyoming type roll-front deposits hosted by arkosic sandstone beds of the Eocene Wind River Formation. The deposits are stratabound and occur from the surface to depths of ~450 feet in areas amenable to open-pit mining, and to depths in excess of 1,200 ft which may be amenable to ISR. Data sources for the estimation of uranium mineral resources for Gas Hills included radiometric equivalent data (eU3O8) for 4,228 drill holes and eU3O8 and Prompt Fission Neutron (“PFN”) logging data for 182 drill holes completed between 2007 and 2013.

Based on areas of wide-spaced limited historical drilling and areas of past mine production, the Company believes that there is sufficient geological evidence to interpret that mineralization may extend from current mineral resource areas along trends. Based on a detailed review of previous work, URZ has outlined five high priority exploration targets within the project for follow-up including Day Loma, Day Loma/Loco-Lee, Loco-Lee, George-Ver, and Bullrush.