The US Environmental Protection Agency (EPA) has issued the final permits for the Dewey Burdock in-situ recovery uranium project, in South Dakota, moving TSX-listed Azarga closer to becoming the next uranium producer in the US.
The EPA permits were the second of three major regulatory agency approvals and the final key federal agency approval required for the project with the US Nuclear Regulatory Commission having already declared the project technically and environmentally sound.
Azarga would move to finalise the state permitting process. The South Dakota Department of Environment and Natural Resources had recommended approval of the key state permits, CEO Blake Steele stated.
“At a time when the uranium market remains in a structural deficit and the United States government has shown historic bi-partisan support for the uranium sector, as evidenced by the Senate Committee on Appropriations draft fiscal year 2021 funding measures and subcommittee allocations’ inclusion of $150-million for a United States uranium reserve, Azarga Uranium continues to unlock the value of one of the pre-eminent undeveloped in-situ recovery uranium projects in the USA,” he said.
The Dewey Burdock project is forecast to produce 14.3-million pounds of U3O8 over its 16 years of production. Initial capital expenditures are estimated at $31.7-million and projected cash flows of the project are expected to be positive in the second year of production, two years after the commencement of construction.
Azarga's stock closed 13% higher at C$0.22 apiece.