Azarga Uranium Increases Measured and Indicated Resources by 128% for Gas Hills Uranium Project

Rhea-AI Summary

Azarga Uranium Corp. reported a significant increase in uranium resources at its Gas Hills Project in Wyoming, with measured and indicated resources rising to 10.77 million pounds U3O8, a 128% increase from the previous estimate. The project, now boasting 7.71 million pounds U3O8 as ISR resources, shows promising potential with an average U3O8 grade of 0.101%. A preliminary economic assessment will be conducted to explore the project’s viability as a significant satellite deposit to the flagship Dewey Burdock Project. The resource estimate was verified by independent experts.

Positive

• Measured and Indicated uranium resources increased to 10.77 million pounds U3O8 from 4.73 million pounds U3O8 (128% increase).
• The Gas Hills Project's ISR resources total 7.71 million pounds U3O8 (72% of overall resources).
• Average U3O8 grade of 0.101% supports project advancement.
• Potential to become a significant satellite deposit to the Dewey Burdock Project.

Negative

• None.

Highlights:

• Measured and Indicated uranium resources increased to 10.77 million pounds U₃O₈ from 4.73 million pounds U₃O₈ (128% increase)
• Measured and Indicated in-situ recovery ("ISR") uranium resources total 7.71 million pounds U₃O₈ (72% of overall Measured and Indicated resources)
  • Average U₃O₈ grade of 0.101%
• Maiden ISR resource estimate achieves significant grade and scale and supports further advancement of the project
• Preliminary economic assessment to be undertaken; strong potential for our Gas Hills Project to become a significant satellite deposit to our flagship Dewey Burdock Project

WHITE ROCK, BC / ACCESSWIRE / March 30, 2021 / AZARGA URANIUM CORP. (TSX:AZZ)(OTCQB:AZZUF)(FRA:P8AA) ("Azarga Uranium" or the "Company") is pleased to announce that the Company has completed an updated National Instrument 43-101 ("NI 43-101") resource estimate for its Gas Hills Uranium Project in Wyoming (the "Gas Hills Project") following the identification of additional uranium mineralization as previously disclosed by the Company.

Blake Steele, Azarga Uranium's President and CEO stated: "We are extremely pleased with the results of our Gas Hills Project resource update. The scale and confidence of our ISR amenable Gas Hills Project resource estimate has established it as a significant deposit in the USA. We have conducted numerous hydrology studies on our Gas Hills Project, and they have all confirmed that the resources located below the water table are ideally suited to ISR mining techniques."

Steele also noted, "The Gas Hills region is a prolific uranium district with approximately 100 million pounds of past production. Industry leader, Cameco Corporation, owns a permitted ISR uranium project within this district. We look forward to completing a preliminary economic assessment for our Gas Hills Project and evaluating its potential as a standalone deposit as well as a significant satellite deposit to the Company's flagship Dewey Burdock Project. Utilization of planned infrastructure at our Dewey Burdock Project also has the potential to considerably reduce the capital cost profile of our Gas Hills Project."

Updated Mineral Resource Estimate - 29 March 2021

Gas Hills Project Mineral Resource estimate at 0.10 GT (inclusive of ISR resources)
	Measured Resources	Indicated Resources	Measured plus Indicated Resources	Inferred Resources
Tons	993,928	6,031,224	7,025,152	514,393
Average grade (% U3O8)	0.103	0.072	0.077	0.048
Average thickness (feet)	5.4	6.1	6.1	6.2
Average grade-thickness ("GT")	0.552	0.443	0.463	0.293
Uranium (pounds)	2,051,065	8,714,126	10,765,191	490,072

Note: Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Gas Hills Project ISR Mineral Resource estimate at 0.10 GT
	Measured Resources	Indicated Resources	Measured plus Indicated Resources	Inferred Resources
Tons	993,928	2,835,339	3,829,267	409,330
Average grade (% U3O8)	0.103	0.100	0.101	0.052
Average thickness (feet)	5.4	4.9	5.0	5.9
Average grade-thickness ("GT")	0.552	0.491	0.502	0.310
Uranium (pounds)	2,051,065	5,654,545	7,705,610	427,817

Note: Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Both the ISR and non-ISR resources were determined using the GT contour method and met the following criteria:

1. 0.02 percent grade cutoff;
2. Occur within the same mineral horizon (roll front);
3. Fall within the 0.10 GT contour; and
4. Extend no farther from the drill hole than the radius of influence specified for each category, i.e., measured, indicated or inferred.

In addition, ISR resources that fall within the 0.20 GT contour have also been estimated in the table below (all other calculation criteria are the same as noted above):

Gas Hills Project ISR Mineral Resource estimate at 0.20 GT
	Measured Resources	Indicated Resources	Measured plus Indicated Resources	Inferred Resources
Tons	847,570	2,143,763	2,991,333	260,544
Average grade (% U3O8)	0.111	0.114	0.113	0.056
Average thickness (feet)	5.9	5.7	5.8	8.4
Average grade-thickness ("GT")	0.661	0.653	0.653	0.470
Uranium (pounds)	1,887,847	4,872,128	6,759,975	290,007

Note: Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The NI 43-101 resource estimate was prepared by Roughstock Mining Services ("Roughstock"), Steve Cutler, P.G., a Qualified Person ("QP"). The full technical report will be filed on SEDAR at www.sedar.com and Azarga Uranium's website www.azargauranium.com within 45 days of the issuance of this news release.

Data Verification

An overall assessment of the data used for the classification of resources into various categories is required by the CIM Definition Standards. This assessment showed that historical data gathering and interpretation of the data was conducted by a well-respected, major uranium exploration company with high-quality uranium exploration staff. It also showed that at key points, professional geologic consultants reviewed and verified the results of the historic exploration programs. Numerous academic reports have also been published on geologic settings and uranium mineralization of the Gas Hills Project.

Interpretive geologic evaluation has also been completed under the direction of the Company's senior geologic staff. All these factors provide a high level of confidence in the geological information available on the mineral deposit and that historic drillhole data on the Gas Hills Project is accurate and useable for continued evaluation of the project.

There are no known discrepancies in locations, depths, thicknesses, or grades that would render the project data questionable. The QP has adequately verified the historical data for the Gas Hills Project. The QP has reviewed the data confirmation procedures and concludes that the drillhole database has been sufficiently verified and is adequate for use in resource estimation. The QP concludes the work done by Azarga Uranium to verify the historical records has validated the project information in the updated resource estimate.

Qualified Person

The disclosure of a scientific and technical nature contained in this press release was approved by Steve Cutler, P.G., a qualified person as that term is defined under NI 43-101.

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 been issued its Nuclear Regulatory Commission License and final Class III and Class V Underground Injection Control permits from the Environmental Protection Agency and the Company is in the process of completing regulatory permit approvals necessary for the construction of the Dewey Burdock Project.

For more information please visit www.azargauranium.com.

Follow us on Twitter at @AzargaUranium.

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 undertaking and completing a preliminary economic assessment evaluating the Gas Hills Project's potential as a standalone deposit as well as a significant satellite deposit to the Company's flagship Dewey Burdock Project, there being a strong potential for the Company's Gas Hills Project to become a significant satellite deposit to the Company's flagship Dewey Burdock Project, that the resources at the Gas Hills Project located below the water table are ideally suited to ISR mining techniques, the Company's utilization of planned infrastructure at its Dewey Burdock Project also having the potential to considerably reduce the capital cost profile of its Gas Hills Project and the Company being in the process of completing regulatory permit approvals necessary for the construction of the Dewey Burdock Project. 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 does not undertake or complete a preliminary economic assessment evaluating the Gas Hills Project's potential as either or both a standalone deposit and a significant satellite deposit to the Company's flagship Dewey Burdock Project, the risk that the Company's Gas Hills Project does not become a significant satellite deposit to the Company's flagship Dewey Burdock Project, the risk that the resources at the Gas Hills Project located below the water table are not ideally suited to ISR mining techniques, the risk that the Company's utilization of planned infrastructure at its Dewey Burdock Project does not considerably, or at all, reduce the capital cost profile of its Gas Hills Project, the risk that the Company does not complete regulatory permit approvals necessary for the construction of the Dewey Burdock Project, 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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FAQ

What recent resource estimate did Azarga Uranium release for the Gas Hills Project?

Azarga Uranium announced an updated resource estimate for the Gas Hills Project, revealing a 128% increase in measured and indicated uranium resources to 10.77 million pounds U3O8.

What is the average U3O8 grade of the Gas Hills Project?

The average U3O8 grade of the Gas Hills Project is 0.101%.

How much of the Gas Hills Project's resources are classified as ISR resources?

The Gas Hills Project contains 7.71 million pounds U3O8 in in-situ recovery (ISR) resources, accounting for 72% of the overall measured and indicated resources.

What is the next step for Azarga Uranium regarding the Gas Hills Project?

Azarga Uranium plans to conduct a preliminary economic assessment for the Gas Hills Project to evaluate its potential as a significant satellite deposit.

When will the full technical report for the Gas Hills Project be available?

The full technical report for the Gas Hills Project will be filed on SEDAR and Azarga Uranium's website within 45 days of the press release date.