As we come up to the end of the year, it’s worth taking stock of Azincourt’s progress and our plans for next year. The last six months have seen us enter a joint venture agreement with Fission Uranium to explore the PLN (Patterson Lake North) project as well as make the acquisition of two projects in Peru. As I see it, we are now in a tremendous position for 2014. Here’s why:
Exploration at PLN, Saskatchewan: As exploration plays go, it doesn’t get much better than this. Our JV with Fission means a partnership with the top uranium exploration team in the Athabasca Basin if not the world. They have made two major discoveries in three years in the Basin and Ross McElroy, Fission’s chief geologist, has been instrumental in four of the last nine major discoveries there. On its own, that’s an impressive track record. When you then consider that uranium deposits in the Basin have the highest grades but are the most difficult to find anywhere in the world, you realize just how big a deal Fission’s experience is. Certainly PDAC feels it’s worthy of note because they’ve just awarded Ross McElroy the Bill Dennis award – the mining industry’s top accolade for exploration success.
As for PLN itself, our corporate presentation has the very latest information and updates so I urge you to check it out. A snapshot view of the project is that PLN is immediately adjacent to the south of Fission’s Patterson Lake South project – host to the world’s most exciting new shallow depth, high-grade uranium discovery. Fission had spent $4.7m on exploration at PLN by the time we came on board. Since that point, we have had very encouraging survey results and work has now progressed to the point where drilling is set to begin next month. Fission’s spinout company, Fission 3.0 Corp., is the operator at PLN. The team is the same as Fission Uranium’s and having worked with dozens of exploration teams during my long tenure with Cameco, I can tell you that their professionalism and expertise is a pleasure to see.
Development at Macusani, South Eastern Peru: If you’re familiar with my background and former role with Cameco you’ll know that I have an in-depth understanding of uranium projects and exploration teams throughout the world and that includes Peru. So make no mistake, the shallow depth, proven 43-101 resource and favourable geology make Macusani a highly prospective development project with excellent economic potential. This is particularly so when you recall we’ve acquired it for just $0.06 per lb.
However, don’t just take my word for it. In case you missed their news earlier this month, Macusani Yellowcake Inc. has released the results of a preliminary economic assessment for its uranium properties located on the Macusani plateau. Their press release states: The results demonstrate that the Project has the potential to become part of a large, low-cost uranium mining camp (or district). In addition, there remains excellent exploration potential to further expand the size of the existing Mineral Resource.
In 2014, we’ll be setting things in motion at Macusani. Peru is a solid mining jurisdiction and the local communities there are supportive but of course there are no short cuts when it comes to re-engaging them. At the same time, we hope to complete our own leach testing and in the new year, we will be engaging SRK to analyze and produce a report on the wealth of existing technical information on the project and from the region, that will allow us to start independently assessing the potential economics at Macusani ourselves. Take a look at the project pages and corporate presentation for the project’s technical information and don’t hesitate to get in touch with us further info.
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Ted O’Connor, CEO of Azincourt Uranium