Azarga Metals Signs MOU FOR Additional Copper-Silver Growth Opportunities IN Chara-Aldan Area, Russia
AZARGA METALS CORP.
UNIT 1 – 15782 MARINE DRIVE, WHITE ROCK, B.C. V4B 1E6, CANADA
www.azargametals.com
FOR IMMEDIATE RELEASE
22 January 2018 TSX-V: AZR
AZARGA METALS SIGNS MOU FOR ADDITIONAL COPPER-SILVER GROWTH
OPPORTUNITIES IN CHARA-ALDAN AREA, RUSSIA
AZARGA METALS CORP. ("Azarga Metals" or the “ Company”) (TSX-V:AZR) has
signed an exclusive Memorandum of Understanding (“ MOU”) with the main vendors of
the Unkur Copper -Silver Project for cooperation with respect to additional corporate
development growth opportunities pertaining to copper and silver rich sediment-hosted
projects in the broader Chara -Aldan area of eastern Russia where the Company’s
existing Unkur Copper-Silver Project is located.
Commenting on the MOU, Dorian L. (Dusty) Nicol, the Company's president and CEO
said, “The USGS estimates there could be in excess of 20 million tonnes of
undiscovered copper in the region and o ur quick success at Unkur confirms the
area’s overall prospectivity.” He then went on to say, “The MOU provides Azarga
Metals with exclusive access t o the database of probably the most active early
stage prospecting group within the Chara-Aldan area.”
ABOUT THE MOU
The MOU has been signed between Azarga Metals and certain Azarga Resources
Partners, Blake Steele and Alexander Molyneux, OC Management Group Limited and
Insignia Partners Limited, with each acting in their individual capacities (the “ Chara-
Aldan Consortium”). Together, the Chara-Aldan Consortium were the main vendors of
the Unkur Copper -Silver Project, which has become the Company’s main asset and
which the Company currently proposes to consolidate the remaining 40% not currently
owned by it. Furthermore, members of the Chara -Aldan Consortium all remain
significant shareholders of the Company.
Since 2012, members of the Chara -Aldan Consortium have been gathering data
(including numerous field visits) , exchanging information and undertaking reviews of
various existing and potential copper and silver rich sediment -hosted projects in the
broader region covering the areas of Chara and Aldan, mainly in the Zabaikalsky
province of eastern Russia.
Page 2
Key terms of the MOU include:
Exclusive cooperation – The parties will work together exclusively with respect to
sediment-hosted copper and silver projects in the Chara-Aldan area.
Data and knowledge sharing – The Chara -Aldan Consortium will make its
databases (and non-database knowledge) available to the Company.
Cooperative working – Individual members of the Chara -Aldan consortium will
provide assistance to Azarga Metals to assist its own internal evaluation of data
and opportunities. The Chara -Alda Consortium will not be further compensated
for access to its data base or for providing assistance to Azarga Metals
Azarga Metals discretion – Azarga Metals will consider whether to pursue
projects at its own discretion.
Term – Initial renewable term of 24-months.
THE CHARA-ALDAN AREA
The Chara-Aldan area is mostly s ituated in the Zabaikalsky province in eastern Russia
and is highly prospective for stratabound sediment -hosted copper and silver
mineralization. The approximately 320,000 square kilometer area is situated to the north
of China east of Mongolia, where Russia and China share a direct land border. In broad
terms the Chara -Aldan area is similar in size to the Katanga Basin straddling
Democratic Republi c of Congo and Zambia, which is known to host similar styles of
copper mineralization.
Geological prospectivity
Baikal Mining Company (“BMC”), a Russian corporation, reports that its Udokan Copper
Project, located in the Chara -Aldan region, is t he world’ s third largest undeveloped
copper deposit contains a JORC resource of 26.7 million tonnes of contained copper
metal (www.bgk-udokan.ru/en).
Azarga Metals’ Unkur Copper -Silver Project is also within the Chara -Aldan region,
approximately 30 kilometers away from Udokan . Its maiden Inferred Resource was
estimated in 2017 to contain 220,000 tonnes of copper within 42 million tonnes at 0.52%
copper and 52 million ounces of silver within 38g/t silver (see Technical Report for the
Unkur Copper-Silver Deposit, Kodar-Udokan Area, Russian Federation dated 31 March
2017, available on the Company’s profile at www.sedar.com).
According to the U.S. Geological Survey (“ USGS”), there are likely six known
permissive tracts in the Chara -Aldan area likely to host undiscovered sediment -hosted
copper deposits. Furthermore, the USGS estimates the as yet undiscovered deposits in
the area to contain in excess of 20 million tonnes of co pper metal, with such estimate
based on statistical analysis of existing deposits in the area and assessment by a panel
of independent geologists.1
1 Zientek, M.L, Chechetkin, V.S, Parks, H.L., Box, S.E., Briggs, D.A., Cossette, P.M., Dolgopolova, A., Hayes, T.S., Seltmann, R., Syusyura, B., Taylor,
C.D., and Wintzer, N.E., 2014, Assessment of undiscovered sandstone copper deposits of the Kodar -Udokan Area, Russia: U.S. Geological Survey
Scientific Investigations Report 2010-5090-M, 129 p. and spatial data. Also available online at http://dx.doi.org/10.3133/sir20105090M.
Page 3
Infrastructure
The Chara -Aldan region has world -class infrastructure. The Baikal -Amur Mainline
(“BAM”) railway cuts through the region east to west and connects to Russia’s far
eastern ports. The BAM railway also connects with the Trans -Siberian railway for
connection to China. Parallel to the railways are all -weather roads and both Chara and
Aldan are connected with Russia’s federal highway system.
The towns of Chara and Aldan are both connected to the Russian federal electricity grid
with 220kV sub -stations and overhead powerlines cross a number of the known
permissive tracts for mineralisation in the reg ion. Aldan itself hosts Russia’s largest
hydro-electric power plant complex (3,300MW).
With BMC’s Udokan project in the pre -development phase, significant construction
works took place in Chara in 2017 including an airport upgrade and completion of a new
hotel and housing facilities. It is anticipated the development of Udokan will involve the
influx of in excess of 2,000 people. BMC reports that f ull construction of Udokan is
expected to commence in 2019.
About Azarga Metals Corp.
Azarga Metals is a min eral exploration and development company that currently owns
60% of the Unkur Copper -Silver Project in the Zabaikalsky province in eastern Russia.
The Company has exercised its option to acquire the remaining 40% of the project
subject to the Company’s disinterested shareholder approval on February 14, 2018 and
the TSX Venture Exchange.
AZARGA METALS CORP.
"Dusty Nicol"
Dorian L. (Dusty) Nicol, President and CEO
For further information please contact: Doris Meyer, at +1 604 536-2711 ext 6, or visit
www.azargametals.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Statement:
This news release contains forward -looking statements that are based on the Company’s current
expectations and estimates. Forward -looking statements are frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate ", "estimate", "suggest", "indicate" and other
similar words or statements that certain events or conditions "may" or "will" occur. Such forward -looking
statements involve known and unknown risks, uncertainties and other factors that could cause actual
Page 4
events or results to differ materially from estimated or anticipated events or results implied or expressed
in such forward -looking statements. Such factors include, among others: the actual results of current
planned exploration activities; conclusions of ec onomic evaluations; changes in project parameters as
plans to continue to be refined; the Company’s disinterested shareholders approving the acquisition of the
remaining 40% of the Unkur project, possible variations in ore grade or recovery rates; accident s, labour
disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing;
and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be
as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which
it is made and, except as may be required by applicable securities laws, the Company disclaims any
intent or obligation to update any forward -looking statement, whether as a result o f new information,
future events or results or otherwise. Forward -looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on such statements due to the inherent
uncertainty therein.