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Wyoming

Juniper Ridge

Project Highlights

Project Details

The 100%-owned advanced stage Juniper Project is located in Wyoming.

Location

The Juniper Ridge Project is located in the southwest portion of Wyoming, approximately 10 miles west of the town of Baggs. The Juniper Ridge Project consists of approximately 640 surface acres and 3,240 net mineral acres of unpatented lode mining claims and a State of Wyoming mineral lease and is located within a brownfield site which has experienced extensive exploration, development, and mine production.

History

Uranium was discovered in the Juniper Ridge area in 1951, with commercial uranium mining occurring intermittently from 1954 until 1966. Seven companies have mined uranium in the area producing over 0.5 million pounds via open-pit and shallow underground mines.

The Juniper Ridge 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.

Preliminary Economic Assessment

In June 2017, a technical report was prepared by BRS Inc. and T.P. McNulty and Associates Inc. on the Juniper Ridge Project titled “Juniper Ridge Uranium Project, Amended and Restated 43-101 Mineral Resource and Preliminary Economic Assessment Technical Report” (the “Juniper Ridge PEA”) with an effective date of June 9, 2017. The Juniper Ridge Project contains indicated uranium resources of 6.0 million pounds U3O8 (5.1 million tons at an average grade of 0.058% U3O8) and inferred uranium resources of 0.2 million pounds U3O8 (0.1 million tons at an average grade of 0.085% U3O8) at a 0.1 GT cut-off.

Details of the assumptions and parameters used with respect to the Juniper Ridge PEA, including quality estimates and information on data verification, are available under the SEDAR profile of URZ Energy at www.sedar.com. The Juniper Ridge PEA is preliminary in nature; it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the Juniper Ridge PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The Juniper Ridge PEA resulted in a pre-tax net present value of $27.3 million at a discount rate of 8% and an internal rate of return of 26% compared to a post-tax net present value of $19.9 million at a discount rate of 8% and an internal rate of return of 22% based on open pit mining and heap leach extraction of uranium. The Juniper Ridge PEA assumed uranium prices of $65/lb U3O8, total direct operating costs of $39.77/lb U3O8 and capital expenditures of $36.7 million.

While the mineralization at Juniper Ridge displays some of the characteristics of known sandstone hosted uranium deposits in the Gas Hills uranium district and in the Powder River Basin of Wyoming, there are significant differences.  Mineralization at the Juniper Ridge Project consists of uraninite as well as uranophane and autunite, of which the latter two minerals are uncommon in the Gas Hills and Powder River Basin deposits. In addition, the host sands at Juniper Ridge are of aeolian (wind blown) origin, rather than fluvial deposits formed at, or along the margins of sedimentary basins, as are those of the Powder River Basin. And while the host rocks of most Wyoming deposits are 40-55 million years old, the Juniper Ridge host Upper Browns Park formation is much younger, at about 8 million years old.  The mineralization is hosted in porous and permeable sandstones at depths averaging slightly over 100 feet, but ranges from near surface to a maximum of 292.5 feet.

Table 1: Juniper Ridge 43-101 Resource Estimate

ClassCut-offTons (x1,000)(1)Weighted Average Grade (% eU3O8)Pounds eU3O8 (x1,000)(1)
Indicated0.10 GT5,1390.0586,006
Inferred0.10 GT1070.085182

What’s Next?

The Company intends to continue to evaluate and review project geophysical logs and other data associated with the project to evaluate the possibility of future alternatives including updates to resource estimates and project economics.

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