Hatchet Lake Uranium Project
Azincourt has entered into a definitive property option agreement with ValOre Metals Corp. (the “Optionor”) (TSX.V: VO), an arms-length party, pursuant to which the Company has been granted the option to acquire up to a seventy-five percent interest in the Hatchet Lake Uranium Project. The Project consists of a series of six mineral claims located in the Province of Saskatchewan.
Hatchet Lake is 13,711-hectare uranium exploration project adjacent to the northeastern margin of the Athabasca Basin, situated along the underexplored northeast extension of the Western Wollaston Domain (WWD) within the Wollaston-Mudjatik Transition Zone (WMTZ). This highly prospective structural corridor hosts the majority of known high-grade uranium deposits and all of Canada’s operating uranium mines.
Located 39km along-trend from the Roughrider and Midwest uranium deposits and within 30km of Cameco’s Eagle Point uranium mine, Hatchet Lake features multiple, shallow, unconformity-related basement uranium targets based on previous work by both Hathor Exploration Ltd. and Rio Tinto. Previous work includes geophysics, boulder, soil, lake sediment and bio-geochemical sampling. The project contains substantial historic exploration datasets with identified uranium anomalism and showings to help guide exploration programs.
Two high-priority zones on the property have been identified; the Upper Manson and SW Scrimes zones. Previous work includes 140 line-km of ground geophysics and a 2007 VTEM survey that defined 30 conductive targets with a combined 53 line-km of strike length. Total sampling includes 1583 soil, 2404 bio-geochemical, and 24 radioactive rock samples returning assay results up to 2.43% U3O8 (ValOre Metals Presentation). Geochemical anomalies highlight a variety of uraniferous host rocks that are coincident with the conductive geophysical targets. Uraniferous rocks are typically referred to as containing uranium significantly above normal expected values.
Terms and Considerations
Pursuant to the terms of the Option, the Company can acquire a seventy-five percent interest in the Project by completing a series of cash payments and share issuances to the Optionor, and incurring certain expenditures on the Project, as follows:
|Cash Payments||Common Shares||Exploration Expenditures|
|Upon the grant of the Option||$100,000||$250,000||Not Applicable|
|Within 12 Months||$250,000||$500,000||$1,000,000|
|Within 24 Months||$250,000||$500,000||$1,000,000|
|Within 36 Months||$250,000||$500,000||$2,000,000|
All common shares issuable to the Optionor will be calculated and issued at a deemed price equivalent to the volume-weighted average closing price of the common shares of the Company on the TSX Venture Exchange in the twenty trading days immediately prior to issuance, subject to a minimum price of $0.05.
Following completion of these requirements the Company will hold a seventy-five percent interest in the Project. In the event the Company does not complete the final cash payment ($250,000) and share issuance ($250,000), and incur the final expenditures ($2,000,000), the Company will hold a fifty percent interest in the Project.