Azarga PEA Shows Top US Uranium Project
Azarga Uranium (TSX: AZZ)(OTC: AZZUF) has produced a preliminary economic assessment (PEA) for its Dewey-Burdock project in South Dakota. (Press release here.)
The study proves the asset is one of the best undeveloped in-situ uranium projects in the United States.
It showed a project with low capital expenditure (US$31.7 million) and robust returns, including an after-tax internal rate of return of 50% and net present value (NPV) of US $147.5 million.
It would produce 14.3 million pounds of uranium over 16 years.
Those are quite the numbers for a company that is currently fetching a market valuation of only C$28.6 million (US$21.6M) — or just 15% of its base case NPV.
An additional catalyst is afoot as the company awaits a decision on the final remaining license contention for the project, which was expected by December 6. That could happen any day now.
Last week also saw rumors swirling that the United States federal government could soon buy more domestic uranium and/or create a new domestic stockpile after recommendations from the Nuclear Fuel Working Group were leaked.
Support from the federal government is a positive for Azarga and its US-based Dewey-Burdock project.
Your report on Azarga Uranium and the Dewey-Burdock project can be found here.
And don’t forget the November issue of Hard Asset Digest with Rick Rule is now live. New reports and recommendations will be available soon. Pre-sale memberships are available now.
Yours in profits,
Mike Fagan
Editor