PEA on US Uranium Firm's Wyoming Project Robust, Outlines Satellite Model

PEA on US Uranium Firm’s Wyoming Project Robust, Outlines Satellite Model

In an Aug. 24 research note, analyst Sid Rajeev reported that Fundamental Research Corp. increased its fair target price on Azarga Uranium Corp. (AZZ:TSX; AZZUF:OTCQB) to CA$1.11 per share from CA$1.03 after the uranium firm released a "robust" preliminary economic assessment (PEA) for its Gas Hills project in Wyoming.

"The PEA confirmed our assumption that Gas Hills can be a satellite project of the company’s flagship Dewey Burdock project in South Dakota," Rajeev wrote.

The analyst reviewed the PEA. It outlined a satellite-model operation producing 1 million pounds of uranium per year over a seven-year mine life. Processing will take place at a facility on the Dewey Burdock property.

As for Gas Hills costs, initial capex required is an estimated US$26 million ($26M), a low amount according to Rajeev. Cash operating costs are forecasted to be US$11.52 per pound and sustaining costs, US$9.07 per pound. All PEA figures are based on a […]

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