Following President Trump’s request of an annual allocation of $150 million for a 10-year period to establish a United States uranium reserve, Azarga Uranium’s (TSX: AZZ) president and CEO, Blake Steele, issued a communiqué commending the government’s recognition of the importance of the uranium sector.
“Trump’s proposed fiscal 2021 budget requests $1.36 billion for the office of nuclear energy, which includes $150 million ($1.5 billion for 2021 to 2030) to establish a strategic United States uranium reserve. The budget proposal from President Trump confirms the administration’s commitment to reviving the United States nuclear fuel cycle, of which uranium mining is a critical component,” Steele said.
The executive noted that Azarga’s flagship Dewey Burdock project in South Dakota fits in the strategy outlined by the head of state.
“A robust Preliminary Economic Assessment was recently filed for the Dewey Burdock project, which estimated direct cash costs of $10.46 per pound of production and low initial capital expenditures of $31.7 million,” Steele said. “This, coupled with the positive Atomic Safety and Licensing Board decision on the Nuclear Regulatory Commission license and the Environmental Protection Agency permit advancements in 2019, continues to de-risk the Dewey Burdock project and pave the way towards construction. The company anticipates being well-positioned to realize the benefits of the administration’s support of the United States nuclear industry.”
Dewey Burdock is an in-situ recovery uranium project located in the Edgemont uranium district, where the radioactive metal was first found in 1952.
The project extends for 12,613 surface acres and 16,960 net mineral acres.