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Wyoming

Gas Hills Uranium Project

Project Highlights

Project Details

The Gas Hills Uranium Project is located in Wyoming. Azarga Uranium owns 100% of the project.

Location

The Gas Hills Project is located in the historic Gas Hills uranium district situated 45 miles east of Riverton, Wyoming. The Gas Hills Project consists of approximately 1,280 surface acres and 12,960 net mineral acres of unpatented lode mining claims, a State of Wyoming mineral lease, and private mineral leases, within a brownfield site which has experienced extensive development including mine and mill site production.

History

Between 1953 and 1988, various companies explored, developed, and produced uranium in the Gas Hills uranium district, including on lands now controlled by URZ. Three uranium mills operated in the district and two others nearby were also fed by ore mined from the Gas Hills district. Cumulative production from the district is in excess of 100 million pounds of uranium, mainly from open-pit mining, but also from underground mining.

The Gas Hills Project was owned by Strathmore Minerals Corporation from 2007 until 2013, when the company and the project was acquired by Energy Fuels Inc. URZ Energy purchased the project on October 31, 2016 and it is now 100% owned by Azarga Uranium.

Summary of Mineral Resources

In May 2021, an updated technical report was prepared by Rough Stock Mining Services on the Gas Hills Project titled “NI 43-101 Technical Report, Mineral Resource Report, Gas Hills Uranium Project, Fremont and Natrona Counties, Wyoming, USA” (the “Gas Hills Report”) with an effective date of March 29, 2021. The Gas Hills Project contains estimated ISR amenable measured and indicated uranium resources of 7.7 million pounds U3O8 (3.8 million tons at an average grade of 0.101% U3O8) and inferred uranium resources of 0.43 million pounds U3O8 (0.41 million tons at an average grade of 0.052% U3O8) at a 0.10 GT cut-off.  The mineral resource estimate was made using the GxT contour method, constrained by measured resources falling within 100 feet of a mineralized drillhole in the horizon. Indicated resources fall between 100 and 250 feet, while inferred resources fall between 250 and 600 feet of a mineralized intercept in that horizon.

The mineral resource estimates were made using radiometric equivalent data (eU3O8) for 4,228 drill holes (3,834 pre-2007), and eU3O8 data and Prompt Fission Neutron (PFN) assay data for 182 drill holes completed from 2007 to 2013.

The 0.1 GT base case cutoff was selected by meeting economic criteria for ISR and on the relative location to the water table. Resources labeled “ISR” meet the criteria of being sufficiently below the water table to be amenable by ISR methods, as well as also meeting other hydrogeological criteria. The GT cutoff of 0.1 GT is also consistent with previous historic resource estimation in the area. Additionally, 0.2 GT cutoffs were included for ISR resources for additional comparison purposes only as this is a typical uranium industry standard ISR cutoff.”

Gas Hills Project ISR Mineral Resource Estimate at 0.10 GT
Measured ResourcesIndicated ResourcesMeasured plus Indicated ResourcesInferred Resources
Tons993,9282,835,3393,829,267409,330
Average grade (% U3O8)0.1030.1000.1010.052
Average thickness (feet)5.44.95.05.9
Average GT0.5520.4910.5020.310
Uranium (pounds)2,051,0655,654,5457,705,610427,817

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

Gas Hills Project ISR Mineral Resource Estimate at 0.20 GT
Measured ResourcesIndicated ResourcesMeasured plus Indicated ResourcesInferred Resources
Tons847,5702,143,7632,991,333260,544
Average grade (% U3O8)0.1110.1140.1130.056
Average thickness (feet)5.95.75.88.4
Average GT0.6610.6530.6530.470
Uranium (pounds)1,887,8474,872,1286,759,975290,007

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

The uranium mineralization is contained in roll-front deposits hosted by arkosic sandstone beds of the Eocene Wind River Formation.  Based on areas of wide-spaced limited historical drilling and areas of past mine production, the Company believes that there is sufficient geological evidence to interpret that mineralization may extend from current mineral resource areas along identified trends.

Hydrogeology

Significantly, this maiden ISR resource estimate was established and supported by numerous hydrology studies confirming that the resources located below the water table are ideally suited for ISR mining techniques. “In 2021, Hydro-Engineering Inc developed a numerical groundwater flow model within the major proposed ISR resource areas within the Central Unit. The objective of the modeling was to evaluate the magnitude and extent of predicted drawdown that would occur within the potential ISR mining area and utilized data previously assembled by Hydro-Engineering from previous studies of the Project.  Results of the model indicated that for a life-of-mine production scenario ISR operations could be sustained, with a suitable but minor depression of the water table within the ISR pattern area and with the majority of water column above the immediate mining zone intact during ISR extraction. The analysis included stresses based on a life-of mine ISR wellfield design parameters designed to achieve approximately 1 million pounds U3O8 per year production.”

Details of the assumptions and parameters used with respect to the Gas Hills Report, including quality estimates and information on data verification, are available under the Company’s profile at www.sedar.com.

What’s Next?

The Company is currently completing a PEA for the Gas Hills Project, which has the potential to become a significant satellite ISR project to the Company’s NRC licensed Dewey Burdock ISR Project.

John Mays, P.E. and Chief Operating Officer for Azarga Uranium is a Qualified Person under NI 43-101 – Standards of Disclosure for Mineral Projects and is responsible for and has approved the technical disclosure on this website.

Qualified Person

John Mays, P.E. and Chief Operating Officer for Azarga Uranium is a Qualified Person under NI 43-101 – Standards of Disclosure for Mineral Projects and is responsible for and has approved the technical disclosure on this website.

ISR Uranium Mining