Azarga discovers more uranium at Gas Hills, Wyoming

Azarga Uranium Corp. [AZZ-TSX; AZZUF-OTCQB; P8AA-FSE] has identified further uranium mineralization at its Gas Hills Uranium Project in Wyoming. This newly identified second area of high-grade uranium mineralization augments the additional uranium mineralization announced by the company for its Gas Hills Project on 6 April 2020 and was identified through the continued analysis of historical data owned by Azarga. The Gas Hills Project is considered to be amenable to in situ mining technology.

Highlights of the continued analysis include:

• Gamma log readings for 82 mineralized drill holes equal to or exceeding a 0.2-grade-thickness (GT) cut-off using a 0.02% grade cut-off with an average U3O8 (triuranium octoxide) grade of 0.205% and an average thickness of 4.0 feet;
• Sandstone-hosted roll front uranium mineralization located below the water table indicating potential for in situ recovery (ISR) amenability;
• Uranium mineralization contained within the company’s existing mineral leases/permits for the Gas Hills project;
• Uranium mineralization falls within an existing Gas Hills project exploration target of 1.4 million to 2.0 million tons averaging 0.04 per cent to 0.10 per cent U3O8 and indicates the potential to supplement the existing resource estimate without additional drilling.

“We are very excited to have completed our initial analysis of the Gas Hills data set, which has identified significant additional uranium mineralization at the Gas Hills Project and indicates widespread potential to supplement the existing uranium resources. Further, all uranium mineralization identified during the initial analysis occurs in sandstone-hosted roll fronts located below the water table, indicating the potential for ISR amenability. The Gas Hills is a prolific uranium district with approximately 100 million pounds of past production and uranium-focused companies including Cameco Corp. and Ur-Energy Inc. also hold positions in this district. We look forward to completing an updated resource estimate for the Gas Hills Project, which has the potential to transform into a significant satellite deposit for the company’s initial development priority, the Dewey Burdock Project. Utilization of planned infrastructure for the Dewey Burdock Project has the potential to significantly reduce the cost profile of the Gas Hills project,” said John Mays, Chief Operating Officer.

In addition to the gamma log readings detailed above, certain drill holes were also logged by prompt fission neutron equipment (PFN). The PFN is a specialized logging tool with neutron activation to determine the uranium concentrations in the drilled holes and can be used to determine the direct content of uranium in the host rocks.

The gamma log readings do not consider adjustments for disequilibrium; however, chemical assays within the area of the drill hole data presented in this news release indicate that actual uranium concentrations are greater than the drill hole logs. Thus, the results of the drill hole logs could be viewed as conservative.

Azarga Uranium is an integrated uranium exploration and development company that controls 10 uranium projects and prospects in the United States (South Dakota, Wyoming, Utah and Colorado), with a primary focus of developing in situ recovery uranium projects.