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Azarga Metals set to begin PEA on Unkur copper-silver project in Russia

Published 01 February 2018

Azarga Metals has engaged Tetra Tech Mining and Minerals to complete a NI 43-101 compliant Preliminary Economic Assessment (PEA) on its high-grade Unkur Copper-Silver Project located in the Zabaikalsky administrative region of eastern Russia.

The PEA will be completed by Tetra Tech's office in Swindon, United Kingdom. Work on the PEA will commence immediately, with completion expected within three to four months.

Azarga Metals’ overall strategy remains to continue physical exploration at Unkur for a transformational increase in mineralization. However, the Company engaged Tetra Tech in late 2017 to review the data associated with the Maiden Mineral Resource estimate announced in mid-2017 and as a result of these discussions Azarga Metals believes there is a strong chance that a PEA performed using existing data will indicate robust economics for project development at Unkur. The information gained from the PEA in terms of metallurgical processing options, infrastructure and operating costs in the region will greatly assist in refining the strategy for further exploration activities.

Commenting on the initiation of the PEA, Dorian L. (Dusty) Nicol, the Company's president and CEO said, “I remain very confident that further exploration at Unkur will significantly increase the size of the resource. Our target for the next round of physical exploration is a doubling of the resource tonnage with an enhancement of overall copper and silver grades” He continued, “Our expectation is that the outcome of this PEA will result in our current Resource at Unkur demonstrating positive economics. The project will then only benefit from additional exploration success.”

UPDATE ON ONGOING CORPORATE AND PROJECT ACTIVITIES

In addition to the PEA, Azarga Metals has continued to move forward a number of initiatives that currently remain incomplete, including: engaging with a number of potential strategic partners at both the Unkur project and parent level; re-interpretation of the results of the 2016-2017 exploration program to refine plans for upcoming physical exploration works; and reviewing potentially attractive acquisitions in the broader Chara-Aldan region within which Unkur is situated and for which the Company executed an exclusive Memorandum of Understanding with Azarga Resources Partners, OC Management Group and Insignia Partners Limited for cooperation on such opportunities.

UNKUR GROWTH POTENTIAL

Azarga Metals considers that there is strong potential to grow the Mineral Resource at the Unkur Copper-Silver Project beyond that identified in the maiden Mineral Resource estimate. The mineralization is open in both directions along strike and further exploration drilling will aim to extend mineralization along strike. Of key interest for growth potential is the zone of thicker and higher grade mineralization in the northern part of the Inferred Mineral Resource area. The next phase of exploration work will focus on using geologic and geophysical exploration to target potential extensions of this higher grade zone. The mineralization also remains open down-dip. In addition to this the Unkur Copper-Silver Project Inferred Mineral Resource area and its potential extensions, there are numerous additional occurrences of copper-silver mineralization and geochemical / geophysical anomalies within the Company’s 5,390 hectare Unkur License.



Source: Company Press Release