VANCOUVER, British Columbia, April 16, 2020 (GLOBE NEWSWIRE) -- AZINCOURT ENERGY CORP. (“Azincourt” or the “Company”) (TSX.V: AAZ, OTC: AZURF), is pleased to announce that it has reached an agreement with Skyharbour Resources Ltd. (TSXV:SYH) and Dixie Gold Inc. (formerly, Clean Commodities Corp.) (TSXV:DG) (collectively, the “Vendors”), to extend the deadline for the remaining obligations owing in connection with the acquisition of a seventy percent interest in the East Preston Uranium Project, located in the western Athabasca basin in Saskatchewan, Canada. The Company is currently earning an interest in the 25,000-plus hectare Project as part of a property option agreement previously entered into with the Vendors.
Under the terms of the extension, the Vendors have agreed to extend the deadline for the remaining obligations owing to complete the acquisition of a seventy percent interest in the Project, which include incurring a small portion of the remaining expenditures on the Project and completion of a final payment of CDN $400,000. The deadline for these obligations has been extended through until March 31, 2021. Following satisfaction of these obligations, the Company will hold a seventy-percent interest in the Project.
"We're pleased both Skyharbour and Dixie Gold were open to an extension, allowing us additional time to complete the earn-in," said president and CEO, Alex Klenman. "The extension of the agreement, if required, gives Azincourt some flexibility, particularly in dealing with the impact of COVID-19. With the time and capital already invested, and the successful exploration data generated so far, we’re 100% committed to acquiring majority interest at East Preston. Our work so far has generated a significant inventory of high-quality drill targets, over a very expansive footprint, in precisely the right geographical location for uranium discovery. The development of East Preston is a top priority for us, and this extension, given current circumstances, ensures we have ample opportunity to complete the acquisition as intended," continued Mr. Klenman.
Since 2017 the Company has conducted multiple geophysical surveys that have delineated several long linear conductors with flexural changes in orientation and offset breaks in the vicinity of interpreted fault lineaments - classic targets for basement-hosted unconformity uranium deposits. These are not just simple basement conductors but are clearly upgraded/enhanced prospectivity targets due to structural complexity. The targets are similar to NexGen's Arrow deposit and Cameco's East Point mine. The project ground is located along a parallel conductive trend between the PLS-Arrow trend and Cameco's Centennial deposit in the Virgin River-Dufferin Lake Trend.
Limited drilling (552m) in the winter of 2018-19 confirmed the prospectivity of the East Preston project, as basement lithologies and graphitic structures intersected are similar and appear to be analogous to the Patterson Lake South-Arrow-Hook Lake/Spitfire uranium deposit host rocks and setting.
The Company followed up with a 2500m drill program in January and February of this year that focused on prospective targets in the Five Island Lakes area, testing multiple subparallel EM conductors in the area of marked structural disruption. A portion of the recent targeting was concentrated along the A-Zone conductor, where 2019 drilling verified the presence of significant graphite in strongly deformed (sheared) host rocks that offer both fluid pathways and a reducing host rock conducive to uranium deposition. Assays from the 2020 winter drill program are pending with results expected later this month.
In consideration for the extension, the Company has agreed to issue 5,000,000 common shares (the “Consideration Shares”), at a deemed price of $0.05 per share, to be divided evenly between the Vendors. Completion of the issuance of the Consideration Shares remains subject to the approval of the TSX Venture Exchange. Following issuance, the Consideration Shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws
About East Preston
Azincourt is currently earning towards 70% interest in the 25,000+ hectare East Preston project as part of a joint venture agreement with Skyharbour Resources (TSX.V: SYH), and Dixie Gold Inc. (TSX.V: DG). Extensive regional exploration work at East Preston was completed in 2013-14, including airborne electromagnetic (VTEM), magnetic and radiometric surveys. Three prospective conductive, low magnetic signature corridors have been discovered on the property. The three distinct corridors have a total strike length of over 25 km, each with multiple EM conductor trends identified. Ground prospecting and sampling work completed to date has identified outcrop, soil, biogeochemical and radon anomalies, which are key pathfinder elements for unconformity uranium deposit discovery.
The Company completed a winter geophysical exploration program in January-February 2018 that generated a significant amount of new drill targets within the previously untested corridors while refining additional targets near previous drilling along the Swoosh corridor. Ground-truthing work confirmed the airborne conductive trends and more accurately located the conductor axes for future drill testing. The gravity survey identified areas along the conductors with a gravity low signature, which is often associated with alteration, fault/structural disruption and potentially, uranium mineralization. The combination/stacking of positive features has assisted in prioritizing targets.
The Main Grid shows multiple long linear conductors with flexural changes in orientation and offset breaks in the vicinity of interpreted fault lineaments – classic targets for basement-hosted unconformity uranium deposits. These are not just simple basement conductors; but clearly upgraded/enhanced prospectivity targets because of the structural complexity.
The targets are basement-hosted unconformity related uranium deposits similar to NexGen’s Arrow deposit and Cameco’s Eagle Point mine. East Preston is near the southern edge of the western Athabasca Basin, where targets are in a near surface environment without Athabasca sandstone cover – therefore they are relatively shallow targets but can have great depth extent when discovered. The project ground is located along a parallel conductive trend between the PLS-Arrow trend and Cameco’s Centennial deposit (Virgin River-Dufferin Lake trend).
In early 2019 the Company conducted a small initial diamond drill program totaling 552 meters. The results confirmed the prospectivity of the East Preston project, as basement lithologies and graphitic structures intersected at East Preston were found to be very similar and appear to be analogous to the Patterson Lake South-Arrow-Hook Lake/Spitfire uranium deposit host rocks and setting.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ted O’Connor, P.Geo. a director of the Company, as well as a qualified person.
About Azincourt Energy Corp.
Azincourt Energy is a Canadian-based resource company specializing in the strategic acquisition, exploration and development of alternative energy/fuel projects, including uranium, lithium, and other critical clean energy elements. The Company is currently active at its joint venture East Preston uranium project in the Athabasca Basin, Saskatchewan, Canada, and the Escalera Group uranium-lithium project located on the Picotani Plateau in southeastern Peru.
ON BEHALF OF THE BOARD OF AZINCOURT ENERGY CORP.
Alex Klenman, President & CEO
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.
This press release includes “forward-looking statements”, including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Azincourt. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed, and actual future results may vary materially.
For further information please contact:
Alex Klenman, President & CEO
Azincourt Energy Corp.
1430 – 800 West Pender Street
Vancouver, BC V6C 2V6
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3fd4c282-dbc5-4724-a42b-b7c7e3901eba