Making the right moves at Azincourt as uranium prices drive higher

Uranium prices  are running hot, so today I take a look at a uranium junior that has two uranium projects with exploration upside. One project is in the prolific uranium region of the Athabasca Basin in Canada, and the other is in the emerging uraniumlithium district on the Picotani Plateau in Peru. The Peru property also shows early signs of lithium.

The company is Azincourt Energy Corp. (TSXV: AAZ | OTCQB: AZURF) (“Azincourt”).

Uranium prices have risen about 50% higher over the past 2.5 months, and are now at US$46.10

Source: Trading Economics

Azincourt Energy Corp.’s uranium projects:

East Preston Project (Saskatchewan, Canada) (Azincourt 70%, Skyharbour Resources 15%, Dixie Gold Inc. 15%)

Azincourt controls a 70% interest in its flagship, East Preston Project, having spent C$2.5 million on the project and having paid C$1 million in cash to the option partners since 2017. The Project covers over 25,000 hectares in the western Athabasca Basin, Saskatchewan, the world’s premier location for uranium mining. 

The Project has a large inventory of priority drill targets identified within 25km of prospective exploration corridors delineated through multiple geophysics and ground evaluation programs. Multiple long linear conductors are giving positive signals warranting further drilling. To date, 4,178 meters in 17 holes have been drilled at the East Preston Project.

Azincourt state: “Limited drilling has confirmed basement lithologies and graphitic structures intersected at East Preston are very similar and appear to be analogous to the Patterson Lake SouthArrowHook Lake/Spitfire uranium deposit host rocks and setting. Drilling has established the right basement unconformity uranium setting rocks, structure and alteration. The recognition of what is believed to be a basement analogue to uranium depositrelated REE mineralization and alteration suggests that mineralizing fluid systems were active on the project at the right time.”

A 2021-22 Winter drilling campaign is planned. Targets include areas of elevated uranium discovered in the 20202021 drilling campaign. Preparation work is slated to begin in December 2021, with drilling to commence early January 2022. Permits and funding are in place.

Azincourt’s East Preston flagship Project is located near multiple highly valued uranium projects in the prolific Athabasca Basin, Saskatchewan, Canada

Source: Azincourt company presentation

Escalera Group Project (Puno, Peru) – 100% (Vendor retains a 1.5% NSR royalty)

The Escalera Group consists of three concessions (Lituania, Condorlit, Escalera) covering an area of 7,400 hectares of prospective exploration targets for volcanic hosted supergene/surficial uranium and lithium on the Picotani Plateau, Puno district, Peru. This region is an emerging uraniumlithium district where mines and projects are owned by Minsur and Rio Tinto, as well as growing mid-tiers and juniors like Bear Creek Mining and Plateau Energy Metals (recently acquired by American Lithium).

A 2017 sampling program produced values up to 3,560 ppm uranium and 153 ppm lithium. Historical surface samples from Escalera show assays up to 6,812 ppm uranium. A 2018 groundwork returned samples as high as 8,061 ppm uranium while delineating over 6.5 km of prospective trends at the Escalera concession.

Management

Azincourt’s President and CEO is Alex Klenman. He has over 30 years of business development, marketing, finance, media and corporate communications experience. From 2010-2014, he was Vice-President, Communications, and a partner with Falcon Point Capital Partners, a firm that provided finance, communications and marketing initiatives for TSX Venture listed resource companies.

Exploration Manager Trevor Perkins is a 25-year experienced geologist with a successful track record, notably in the Athabasca Basin, Saskatchewan, Canada. He has worked for UEX Corporation, Rio Tinto, and (spent a decade with) Cameco Corporation.

World power sources in 2020

  • Coal – 35%
  • Natural gas – 25%
  • Hydro – 16%
  • Nuclear – 10%
  • Renewables (solar, wind, geothermal) – 12%

Source: Reuters courtesy BP Statistical Review of World Energy

Closing remarks

The world’s attention is now on COP26 in Glasgow as investors await  announcements of progress. There is increasing pressure to ban the construction of new coal power stations; however to replace this source (coal) of baseload power many countries will need to use smart nuclear with safely located smaller nuclear power stations. This in turn will  help drive future demand for uranium.

Uranium juniors such as Azincourt Energy Corp. are well placed to grow in future years to meet an expected strong uranium demand. In particular its East Preston Project is well located, being in a prolific uranium region of the Athabasca Basin, which has the largest, highest grade, uranium deposits in the world with 10 times, or higher than, world average grades. Azincourt has recently raised C$8.1 million with which it intends to focus on the upcoming 30 to 35 hole, 7,000 metre, drill program at its East Preston uranium project in the Athabasca Basin.

Investors will need  patience and risk tolerance; however given that Azincourt Energy Corp. trades on a market cap of only C$34 million and that it owns two well-placed uranium projects, there is plenty of upside ahead should it succeed. Stay tuned as this sector is moving fast.




Alex Klenman on Azincourt Energy’s high tech exploration program and the uranium bull market

In a recent InvestorIntel interview, Tracy Weslosky spoke with Alex Klenman, President, CEO and Director of Azincourt Energy Corp. (TSXV: AAZ | OTCQB: AZURF) about the current uranium ‘bull market’ as Azincourt heads towards its biggest drill program to date at its East Preston Uranium Project in the Athabasca Basin.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Alex said that the East Preston Uranium Project is strategically located near several high-grade uranium deposits. He continued by providing an update on Azincourt’s partnership with FOBI to utilize artificial intelligence and data mining techniques on the project giving it a first-mover advantage in utilizing new technologies in uranium exploration. Alex also provided an update on Azincourt’s recent private placements which saw participation from many institutional funds.

To watch the full interview, click here.

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.

To learn more about Azincourt Energy Corp., click here

Disclaimer: Azincourt Energy Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp. (IIC) does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain“forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken,  as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please email info@investorintel.com.




The Red Hot Uranium Update Highlights Azincourt Energy Corp.

Another day, another decent gain for anything even remotely related to uranium. Frenzy about the Sprott Physical Uranium Trust (TSX: U.UN) et al out there buying up spot uranium, and what the Reddit crowd are up to has this segment of the market going parabolic. It’s not just the micro caps either. The established players like Cameco (TSX: CCO | NYSE: CCJ) and Denison Mines Corp. (TSX: DML | AMEX: DNN) are up 34% and 38% respectively month to date. Other smaller cap names are up anywhere from 50% to 100%. And in case you haven’t noticed, it’s only mid-month.

As a long time follower of uranium and uranium stocks, I was a little skeptical about this current move. As I sit here wiping the egg off my face, I have to confess I totally missed the boat on this move having sold the last of my uranium holdings (including U.UN) right around the end of August and beginning of September just as this run was getting started. As noted, I’ve watched uranium for a long time and thought the beginning of this rally was going to be as good as it gets. Chalk up another trading lesson learned the hard way.

It appears uranium is the hot place to be right now, and I’m obviously not the one to judge whether this is just the start or not, so let’s dig down into the small cap space and see what we can find to whet our appetite. Today we look at a company called Azincourt Energy Corp. (TSXV: AAZ), a Canadian based resource exploration and development company with core projects in the clean energy space. Their two core areas are a uranium exploration project in the prolific Athabasca Basin, Saskatchewan, Canada, and lithium/uranium projects on the Picotani Plateau, Peru. That’s right, if uranium isn’t hot enough for you right now they also have some lithium exposure but today we’ll focus on the uranium side of the ledger.

The Athabasca Basin in Saskatchewan is one of the most prolific uranium districts in the world. There’s even a city called Uranium City in the region, not that a city name equals good geology. Nevertheless, there are numerous world class discoveries in the Athabasca Basin including Cameco’s Cigar Lake mine which is the world’s largest uranium mine when running at full capacity. Within this basin is Azincourt’s 70% interest, 25,000+ hectare East Preston property with joint venture partners Skyharbour Resources (TSXV: SYH) and Dixie Gold. The property is strategically located near NexGen Energy Ltd’s (TSX: NXE | AMEX: NXE) high-grade Arrow deposit, Fission Uranium Corp.’s (TSX: FCU) Triple R deposit & AREVA/Cameco/Purepoint’s joint venture Spitfire. Pretty good company if you are playing the closeology game.

Source: Azincourt Energy Corp. website

But where this story gets interesting is what’s to come this winter. The Winter 2020-21 drill campaign was a planned 10-12 hole, up to 2,500 meters, diamond drill program but was cut short due to warm weather and early onset of spring break-up resulting in only 5 holes completed for 1,195 meters. Anomalous and elevated uranium levels were encountered in three of the five holes completed and the elevated base metals and uranium suggest that there is uranium-bearing fluids in the area. These results have management confident they can vector towards the sweet spot. This August the Company completed an airborne radiometric survey further highlighting focus areas for this stage of the project. Correspondingly, the Winter 2021-22 program will consist of approximately 7,000 meters in 30-35 drill holes. This will be the largest drill campaign yet at East Preston and permits and funding are in place to complete all the planned work through the winter.

Anyone who has read any of my articles before knows that I like exploration companies that have money to generate lots of results. Azincourt fits into that category with over $4M in cash at the end of June and as they’ve stated, they should be fully funded for 30-35 drill holes this winter. Part of that is due to the infrastructure they put in place last winter and also if you only have to drill 100-200 meter holes you can do a lot of drilling very cost effectively. The one caveat to having a fully funded drilling program is that your capital structure can get a little unruly in order to keep the drill turning. Azincourt has 345M shares outstanding and another 200+ M warrants all with a $0.07 exercise price. With the stock closing at $0.11 yesterday this can be a great source of future funding but could make for a bit of a headwind to good news.

Regardless, as we await results from Azincourt’s winter drilling program, one can rest assured that in a market as hot as it is for anything uranium right now, if the Company finds anything the stock is likely to go crazy. In the meantime they are along for the ride which has been a very good one for investors so far. What inning are we in for the run in uranium? As I made very clear above, I’m not the right person to answer that question. However, you can rest assured I will be watching closer than most.