The state of mining in 2020 has been very much in flux thanks to the global spread of the COVID-19 Coronavirus pandemic. However, uranium market fundamentals have remained very strong. As a result of COVID-19, significant supply-side disruption occurred, reducing 2020 forecast primary production to 120 million pounds. Compare this to 177 million pounds of 2020 forecast demand and the equation is quite clear. The uranium market is in deficit and the global nuclear reactor pipeline continues to indicate growth. It is after all a carbon free source of energy.
Though some operators have returned to work, now could be the perfect time for uranium developers to take the next step, as the world looks to reduce its carbon footprint. The shortage of supply will likely be met by those who are either in production, or on the verge of something incredible …
Azarga Uranium Corp. (
TSX: AZZ,
OTCQB: AZZUF,
Forum) announced in late November 2020 that the United States Environmental Protection Agency (EPA) had issued the final permits for the Company’s Class III and Class V Underground Injection Control activities at its primary development project, the Dewey Burdock in-situ recovery uranium project in South Dakota.
Azarga Uranium’s President and Chief Executive Officer, Blake Steele, explained in a media release highlighting this news for investors that this critical milestone significantly de-risks its flagship asset, the advanced stage, low-cost Dewey Burdock Project, while also moving the Company substantially closer to becoming the next uranium producer in the USA.
The issue of permits from the EPA follows an extensive review from the agency over the Company’s Dewey Burdock Project and he added that it reaffirms the findings of the United States Nuclear Regulatory Commission (NRC), that the project is both technically and environmentally sound.
He noted that the Company is in a strong position to finalize the state permitting process with these pivotal federal permits now issued by both the EPA and NRC, where the South Dakota Department of Environment and Natural Resources (DENR) staff have already recommended approval of the key state permits. The South Dakota DENR is the last major regulatory agency approval required for the Dewey Burdock Project.
“At a time when the uranium market remains in a structural deficit and the United States government has shown historic bi-partisan support for the uranium sector, as evidenced by the Senate Committee on Appropriations draft fiscal year 2021 funding measures and subcommittee allocations' inclusion of $150 million (USD) for a United States uranium reserve, Azarga Uranium continues to unlock the value of one of the preeminent undeveloped in-situ recovery uranium projects in the USA.”
A summary of the Dewey Burdock Project economics is below:
(Click image to enlarge)
The Company has 10 uranium projects and prospects in the United States under its control, in South Dakota, Utah, Colorado, and Wyoming. It was in Wyoming where AZZ also reported that it had identified further uranium mineralization at its Gas Hills Uranium Project in
June 2020. This recently identified second area of high-grade uranium mineralization augments the additional uranium mineralization announced by the Company at its Gas Hills Project back in April and was identified through the continued analysis of its own historical dataset. The Company is in the process of completing an updated resource estimate for its Gas Hills Project, which the Company states has the potential to be a significant satellite project for the Dewey Burdock Project.
To find out more about Azarga Uranium Corp., visit the Company’s website at
azargauranium.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.