VANCOUVER, BC / ACCESSWIRE / April 24, 2020 / AZARGA URANIUM CORP. (TSX:AZZ)(OTCQB:AZZUF)(FRA:P8AA) ("Azarga Uranium" or the "Company") is pleased to announce that the United States Nuclear Fuel Working Group ("NFWG") has released its report detailing the Strategy to Restore American Nuclear Energy Leadership. This strategy is designed to restore America's competitive nuclear advantages and proposes, among other items, that the U.S. Government "take immediate and bold action to revive and strengthen the uranium mining industry". The strategic objectives will "restore the viability of the entire front-end of the nuclear fuel cycle" over a multi-year effort through direct uranium purchases to establish a new uranium reserve (please refer to the Company's 12 February 2020 press release).
Blake Steele, President and CEO stated, "We commend President Trump and the NFWG for recognizing the importance of the United States nuclear fuel cycle, specifically the uranium mining industry, and developing a comprehensive strategy to restore America's competitive nuclear energy advantage. We are also encouraged that the Administration will provide funding for the competitive procurement of U.S. uranium, considering our focus on advanced stage and low-cost in-situ recovery projects in the U.S., through the establishment of a new uranium reserve as reflected in the President's 2021 fiscal year budget proposal. The NFWG report unquestionably confirms the Administration's commitment to reviving the United States nuclear fuel cycle, of which uranium mining is a critical component."
Steele further noted, "The Company anticipates being well positioned to realize the benefits of the Administration's support of the United States uranium industry. Our flagship asset, the advanced stage, low-cost Dewey Burdock In-Situ Recovery Uranium Project in South Dakota, USA (the "Dewey Burdock Project"), is one of the preeminent undeveloped uranium projects in the United States. A recently completed Preliminary Economic Assessment for the Dewey Burdock Project estimated direct cash costs of US$10.46 per pound of production over a 16-year production life and low initial capital expenditures of US$31.7 million. Though the Dewey Burdock Project is already economically robust and internationally competitive, the NFWG report should provide further benefits including streamlined regulatory reform."
A summary of the most relevant points included in the NFWG report pertaining to the U.S. uranium mining industry include:
- U.S. government purchases of 17-19 million pounds of uranium, beginning in 2020, from domestic producers for a strategic U.S. uranium reserve.
- The Department of Energy will end the uranium bartering program and reevaluate the Department of Energy's excess uranium inventory management policy.
- Streamline regulatory reform and land access for uranium extraction.
- Support Department of Commerce efforts to extend the Russian Suspension Agreement to protect against future uranium dumping in the U.S. market.
- Enable the Nuclear Regulatory Commission to deny imports of nuclear fuel fabricated in Russia or China for national security purposes.
- Fund advanced water treatment technology for uranium mining and in-situ recovery.
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.
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For further information, please contact:
Blake Steele, President and CEO
+1 303 790-7528
E-mail: info@azargauranium.com
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 Company being well positioned to benefit from the NFWG plans to revive and strengthen the U.S. uranium mining industry, the strategy and strategic objectives of the NFWG report and the Administration and the execution of these strategies to restore America's competitive nuclear energy advantage, the establishment of a new uranium reserve as reflected in the President's 2021 fiscal year budget proposal, the Company being well positioned to realize the benefits of the Administration's support of the United States uranium industry, the estimated direct cash costs of US$10.46 per pound of production over a 16-year production life and low initial capital expenditures of US$31.7 million in the Preliminary Economic Assessment for the Dewey Burdock Project, the NFWG report providing further benefits including streamlined regulatory reform 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 Company is not well positioned to benefit from the NFWG plans to revive and strengthen the U.S. uranium mining industry, the risk that the strategy and strategic objectives of the NFWG report and the Administration are not executed and these strategies do not restore America's competitive nuclear energy advantage, the risk that a new uranium reserve is not established as reflected in the President's 2021 fiscal year budget proposal, the risk that the Company is not well positioned to realize the benefits of the Administration's support of the United States uranium industry, the risk that the estimated direct cash costs of US$10.46 per pound of production over a 16-year production life and low initial capital expenditures of US$31.7 million in the Preliminary Economic Assessment for the Dewey Burdock Project are not achieved or the Dewey Burdock Project does not go into production, the risk that the NFWG report does not provide further benefits including streamlined regulatory reform, 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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