Saskatoon, SK, December 29, 2014 – AZINCOURT URANIUM INC. (“Azincourt” or “theCompany“; TSXV:AAZ), is pleased to provide a year-end corporate update and announce that planning is complete for the PLN project joint venture with Fission 3, for the winter 2015 drill program. The winter program will focus on the encouraging uranium mineralization encountered during the summer drill program as well as drilling targets on the untested northern N conductor trend and southern Broach Lake conductor system.
Year-end Corporate Update Highlights
Patterson Lake North (PLN)
- Successful targeting and the initial drill program at PLN provided encouragement and new conductor corridor targets for the future; Completion of Year 1 of earn-in sees $1.5 million spent with Azincourt earning 10% project interest. Year 2 of earn-in commenced immediately.
- The $1.5 million Year 2 summer 2014 program was extremely successful with the Joint Venture intersecting its first uranium mineralization on the central A1 conductor and detailed resistivity ground geophysics established drill targets for winter 2015 testing.
- PLN winter 2015 exploration program planning and targeting work completed; at least 3200 m of diamond drilling is planned within a budget framework of $1.5 million. Final program approval contingent on Azincourt funding with initial tranche financing announced and in progress (see Azincourt news release dated December 24, 2014).
- Winter 2015 drill program to also test targets that have been established on two previously untested areas with multiple conductor systems (N Conductors and Broach Lake Conductors).
- Azincourt acquired uranium resources and exploration projects in Peru from Cameco and Vena Resources in January 2014
- Azincourt vended the Peru projects into Macusani Yellowcake to consolidate all known uranium resources in Peru in September 2014 in exchange for shares in Macusani with joint management and board representation.
- All Macusani shares received have been distributed to Azincourt shareholders on a pro rate basis, returning value to our shareholders equivalent to $0.085 per Azincourt share, based on Macusani share price at transaction close.
- Macusani positioned for revaluation after consolidation as the uranium market shows signs of improvement.
- Cost-cutting measures implemented in July cut overheads almost in half with no further costs in Peru. Further cost saving measures continue to be implemented.
- Azincourt is currently reviewing quality uranium projects, companies and opportunities for sensible growth.
Ted O’Connor, President and CEO of Azincourt, commented,
“Azincourt is committed to completing the Year 2 earn-in at PLN alongside our partner, Fission 3.0 through funding the remaining $1.5 million required under the JV agreement. The uranium mineralization and positive features highlighted from the summer drilling combined with the two new untested target areas on the property reveal PLN is a great project. Azincourt is so compelled with this project, we plan to finance the $1.5 million of in-ground expenditure required to earn 20% project interest in PLN.
We have successfully distributed proceeds from our Peru projects returning value with tremendous future up-side potential to our shareholders through the Macusani consolidation. Macusani is well positioned for a revaluation as the uranium market recovers. Recent signs of improvement include the expected early 2015 Japanese reactor restarts and increased demand from new reactor builds. Uranium demand is increasing. Uranium supply has stagnated and decreased. It is the perfect storm for an eventual uranium price increase.”
PLN Project Background and Planning
Azincourt completed Year 1 – $1.5 million exploration earn-in funding commitment in June 2014 to earn a 10% interest in PLN from Fission 3.0, the project operator. The Year 1 exploration program enhanced the project prospectivity with encouraging drill results along the central A1 conductor system. Sufficiently encouraged, the Company immediately pushed forward with Year 2 of the option agreement. Azincourt has already funded $1.5 million of the $3 million Year 2 commitment through targeting geophysical surveys and diamond drilling completed during summer 2014.
The summer Program was extremely successful with the JV intersecting its first uranium mineralization on the central A1 conductor in the right rocks with encouraging pathfinder element signatures, alteration and structure indicative of unconformity uranium mineralizing systems. Further follow-up drilling is planned in the central A1-A4 conductor area for winter 2015.
Drill targets have also been established on two previously untested priority target areas with multiple conductor systems. One is located in the northern project area (N Conductor Trend) and the second in the southern project area (Broach Lake Conductor system) (see Figure 1 – Patterson Lake North Location of Conductors and Conductive Trends Map, below).
The N conductor trend is a newly discovered 8.5 km long system comprising 3 separate west-dipping conductors in northeastern PLN. The Broach Lake system represents shallow-depth, north-easterly trending conductive targets with a similar orientation and flexural trend to the PLS discovery trend. The untested B conductors at Hodge Lake are also planned to be tested if ice conditions cooperate this winter.
Joint Venture meetings have been held with Fission 3 and the winter program currently planned anticipates approximately 3200 m of diamond drilling within a $1.5 million budget framework. This work will satisfy Azincourt’s Year 2 exploration funding commitment under the earn-in agreement towards earning a total of 20% interest in the PLN project.
Patterson Lake North Property
The Patterson Lake North property (PLN) lies adjacent to and north of the Patterson Lake South property, owned by Fission Uranium Corp. (TSX-V:FCU) where uranium mineralization has been traced by core drilling at PLS over 2.24km (east-west strike length) in four separate mineralized “zones” (See Fission Uranium news release August 26, 2014). Fission expects to announce a maiden resource estimate for PLS in early 2015.
PLN was acquired by staking in 2004 and became part of the Fission 3.0 portfolio as part of the Fission Uranium/Alpha Minerals agreement in December 2013. It comprises 27,408 Ha, and is located about 30 km immediately south of the UEX/AREVA Anne and Collette uranium deposits at Shea Creek.
Azincourt has a staged, four year option agreement with Fission 3.0 dated April 29, 2013 whereby Azincourt can earn up to a 50% interest in the PLN project through a combination of option payments and exploration work funding. Approximately $4.7 million has been spent on prior exploration of the property by Fission Uranium. Azincourt has completed Year 1 funding of the option and presently holds a 10% interest. Fission 3.0 is the operator and project manager.
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. President and CEO of Azincourt, a qualified person.
About Azincourt Uranium Inc.
Azincourt is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties and is headquartered in Vancouver, British Columbia. Azincourt currently holds a 10% interest in the PLN exploration project joint venture with Fission 3.0 in northern Saskatchewan, with an option to earn up to 50% of the project.
ON BEHALF OF THE BOARD OF AZINCOURT URANIUM INC.
Ted O’Connor, CEO and President
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:
Ted O’Connor, President & CEO
Azincourt Uranium Inc.
Corporate Development/Investor Relations