News
Azincourt Energy begins data compilation at Snegamook
2024-11-13 12:02 ET - News Release
Mr. Alex Klenman reports
AZINCOURT ENERGY BEGINS DATA COMPILATION AT THE SNEGAMOOK URANIUM PROJECT
Azincourt Energy Corp. has begun historic data compilation on its recently acquired Snegamook uranium project, located in the province of Newfoundland and Labrador.
The project is strategically located to the southeast of Snegamook Lake within Labrador's Central mineral belt and less than one kilometre (km) south of the Two Time zone (indicated and inferred resource of 5.55 million pounds (Mlb) triuranium octoxide (U3O8), June 2008), formerly held by Silver Spruce Resources Inc. as part of a larger land package and consists of a mineral licence block comprising 17 contiguous claims covering 423 hectares.
The Central mineral belt in Labrador also hosts Paladin Energy Ltd.'s recently acquired Michelin deposit (measured and indicated resource of 82.2 Mlb U3O8). Uranium was first discovered in the Central mineral belt in 1951. Readers are cautioned that past results or discoveries on properties in proximity to the project are not necessarily indicative of the presence of similar mineralization on the project.
Exploration work conducted on the project by Silver Spring Resources between 2006 and 2008 consisted of airborne radiometric and magnetic surveys, follow-up prospecting, lake sediment and soil sampling, radon gas surveys, geological mapping, trenching, and diamond drilling. The exact number of diamond drill holes completed within the current project has not yet been verified.
Drilling to follow up a radon gas anomaly identified the Snegamook zone uranium occurrence located 1.3 km along strike to the southeast of the Two Time zone. 17 drill holes intersected a 20 to 50 metres (m) wide section of uranium-bearing brecciated and altered monzodiorite with moderate to strong chlorite, hematite and carbonate alteration, the same geological setting as the Two Time zone. The Snegamook zone is located near several large-scale uranium discoveries including the Two Time, Moran, Kitts and Jacques Lake deposits.
Four mineralized lenses were traced over a strike length of 300 metres and to a vertical depth of 200 metres. The lenses are shallow dipping (15 to 20 degrees west) and vary in width from five to 53 metres with values ranging from 225 to 771 parts per million (ppm) U3O8. Individual one-metre sample values range from 50 to 1,110 ppm U3O8, with the widest section in drill hole SN-08-8 averaging 206 ppm U3O8 over 73 metres. Mineralization and related hydrothermal alteration appears to be structurally controlled within lineaments cross-cutting the host intrusive gneissic units. The zones appear to be disrupted to the south and down dip by steeply dipping fault structures that displace the basement gneiss but remain open to the north.
Two drill holes (SN-08-18 and SN-08-20) tested a radon gas anomaly 500 metres to the south of the Snegamook zone. They intersected nine metres (210 to 219 m) of 552 ppm U3O8 and five metres (191 to 196 m) of 224 ppm U3O8. Higher-grade zones, 0.11 per cent U3O8 over three m and 0.11 per cent U3O8 over two m, were located within the highlighted zone in SN-08-18.
No work has been conducted on the land currently within the Snegamook project since 2008, with the mineral licences being allowed to lapse in 2017. Despite a recent increase in activity and discoveries in the Central mineral belt, the project area remains relatively underexplored. The initial focus for Azincourt is a compilation of all available information and data for the historical exploration work in the area. Much of the data available are from assessment reports filed with the government of Newfoundland and Labrador and therefore must be digitized to be useful in a 3-D-GIS environment. Once this is complete, any available historical drill core can be examined, and a drill program can be developed to confirm and expand the historical mineralization.
Non-brokered private placement
The company also announces that its non-brokered private placement to raise gross proceeds of up to $1-million (see news release dated Oct. 29, 2024) will now consist of both flow-through units (FT units) and non-flow through units (NFT units) offered at a price of 1.5 cents per NFT unit.
Each FT unit will comprise one flow-through common share and one common share purchase warrant and each NFT unit will comprise one common share and one warrant. Each warrant will be exercisable at a price of five cents into one common share for a period of 36 months from the date of issue.
The gross proceeds of the private placement will be used for general working capital and exploration work on the company's Snegamook project. The gross proceeds will not be used for any payments to non-arm's-length parties of the company nor for any payment relating to persons conducting investor relations activities.
In connection with the private placement, the company may pay finders' fees to eligible third parties that have assisted in introducing subscribers to the company. All common shares to be issued in connection with the private placement will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws. Completion of the private placement remains subject to the approval of the exchange. It is expected that the private placement will not result in the creation of a new control person of the company.
The FT shares will qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)). An amount equal to the gross proceeds from the issuance of the FT shares will be used to incur eligible resource exploration expenses which will qualify as (i) Canadian exploration expenses (as defined in the Tax Act) and (ii) as flow-through critical mineral mining expenditures (as defined in Subsection 127(9) of the Tax Act). Qualifying expenditures in an aggregate amount not less than the gross proceeds raised from the issue of the FT shares will be incurred (or deemed to be incurred) by the company on or before Dec. 31, 2025, and will be renounced by the company to the initial purchasers of the FT shares with an effective date no later than Dec. 31, 2024.
Qualified person
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 C. Trevor Perkins, PGeo, vice-president, exploration of Azincourt Energy, and a qualified person as defined by National Instrument 43-101.
About Azincourt Energy Corp.
Azincourt is a Canadian-based resource company specializing in the strategic acquisition, exploration and development of alternative energy/fuel projects. The company has been a uranium explorer for over a decade and is currently active at its majority-owned joint venture East Preston uranium project located in the Athabasca basin, Saskatchewan.
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