Saskatoon, SK, October 21, 2014 – AZINCOURT URANIUM INC. (“Azincourt” or “theCompany“; TSXV:AAZ), is pleased to provide a corporate update and announce that planning is underway on the PLN project for the winter 2015 follow up drill program. The winter program will focus on the encouraging uranium mineralization encountered during the summer drill program as well as finalizing targets on the untested northern N conductor trend and southern Broach Lake conductor system.
Corporate Update Highlights
- PLN winter 2015 exploration program planning and targeting underway; approximately 3200 m of diamond drilling is being planned within a budget framework of $1.5 million.
- The 2014 summer Program was extremely successful with the JV intersecting its first uranium mineralization on the central A1 conductor. The winter 2015 drill program will follow up this mineralization.
- 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).
- Peru transaction with Macusani Yellowcake Inc. has been completed – Macusani shares have been distributed to Azincourt shareholders, returning the equivalent of $0.09 per Azincourt share, based on recent Macusani share price.
- Cost-cutting measures implemented in July have cut overheads almost in half with no on-going costs in Peru.
- Azincourt continues to review 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. The uranium mineralization and positive features intersected in the summer drilling combined with the two newly developed untested target areas elsewhere on the property highlight PLN is a great project.
We have successfully distributed proceeds from our Peru projects returning value with future up-side potential to our shareholders through the Macusani consolidation.
The cost-cutting measures implemented aim to preserve our treasury to better weather the poor, but improving near-term uranium market while meeting our commitments to follow-up the successful and encouraging results at PLN. After building a successful uranium exploration and development company with quality projects and resources in spite of the weak uranium market over the past year, we will continue to focus on exploration, discovery and development to enhance value for our shareholders. Azincourt was very lean to begin with. We have chosen to become even leaner now.”
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.
The winter program currently being 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.
Azincourt vended Minergia SAC, the Peruvian company holding uranium projects and resources in Peru to Macusani Yellowcake Inc. (Macusani) in exchange for shares in Macusani (see Azincourt News Release dated September 4, 2014). The Macusani shares Azincourt received have been distributed to our shareholders as a return of capital.
Shareholders holding Azincourt shares received approximately 1.31415 shares in Macusani for each Azincourt share held, or the equivalent of $0.085 per Azincourt share. Azincourt shareholders can now also participate in the anticipated uranium price and market upside through Macusani, which is a uranium explorer-developer stage company focused on Peru.
Cost Cutting Highlights
- Director, Officer and Management remuneration cut
- Contract staff reduction and streamlining Investor Relations programs & consultants
- Results in 48% Monthly G&A reduction from Q1/2014 levels
- Additional cost reduction through elimination of Peru costs averaging $35K/month
Opportunities for Growth
Azincourt continues to review projects and opportunities to add quality projects to our portfolio. Despite presently depressed valuations, opportunities must still possess technical and prospectivity merits with good explorability and reasonable likelihood that discoveries can be economic. Azincourt continues to seek these opportunities, and with our global uranium expertise, we are confident we can continue to grow strategically and sensibly.
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)
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.