Azincourt Uranium Inc.



Azincourt Uranium Inc.

April 02, 2014 03:00 ET

PLN Winter Program Completed-Prospectivity Confirmed

SASKATOON, SASKATCHEWAN--(Marketwired - April 2, 2014) - AZINCOURT URANIUM INC. ("Azincourt" or "the Company") (TSX VENTURE:AAZ), and its joint venture partner and operator, Fission 3.0 Corp ("Fission 3.0") (TSX VENTURE:FUU), are pleased to announce the results of the winter drill, radon survey and ground geophysical program at their PLN Property.

  • Approximately 1988.3m of drilling was completed in seven holes testing 3 separate basement electromagnetic (EM) conductors: four holes were completed to target depth, one hole was partially completed before being lost due to technical difficulties and 2 attempts were abandoned in thick overburden.

  • Drilling encountered a lithological setting with structural complexity similarly analogous to that of the PL-3B conductor and its association with uranium mineralization at Fission Uranium's PLS project. Although only limited radioactivity was encountered, encouraging basement lithology, alteration and structural features confirm the high prospectivity of the target areas. Further drilling is required to evaluate these target areas.

  • Drilling of the shallow southern lake targets was not undertaken as a result of unsuitable winter ice conditions. However anomalous radon in water survey results confirm the high prospectivity of these targets and additional Squid EM surveys underway in the Broach Lake area.

  • Azincourt and its JV Partner Fission 3.0 are sufficiently encouraged with the winter results to ensure funding is in place for phase 2 of the 'earn-in'. The plan will be to continue follow up drilling those targets identified, and confirmed on land through the remainder of this year, and refine the lake targets for testing next winter.

Ted O'Connor, President and CEO of Azincourt, commented,

"The results from the winter program at PLN have increased our knowledge and understanding of the geology at PLN. All three conductors tested remain highly prospective. The 2014 radon and geophysical survey results and all exploration work to date, have set the project up with an excellent and large target inventory over the entire project area. Azincourt is extremely encouraged with the project prospectivity and will be continuing to fund on-going exploration work at PLN. The immediate plans are to use the drill, radon and geophysical survey data to prioritize new drill targets for testing during the next drill program."

Program Summary

The winter drill program was designed to test the A1, A1B and A3 EM conductors (Harrison Lake area). These 3 conductors, located in the south-west area of the property are part of a south-east trending sub-parallel system of EM conductors. All 3 EM conductors are interpreted to be situated in basement bedrock.

A1 Conductor

  • Four holes were completed to target depth (PLN14-010, PLN14-011, PLN-012 and PLN-013). Drilling encountered a lithological setting with structural complexity similarly analogous to that of the PL-3B conductor and its association with uranium mineralization at Fission Uranium's PLS project.
  • Target area remains highly prospective and requires further drilling to evaluate.

A1B Conductor

  • Two attempts to penetrate overburden were unsuccessful (PLN14-015A and PLN14-015B).
  • Conductor remains untested during this program and particularly in light of the results seen along the neighboring A1 conductor axis, the A1B conductor remains a highly prospective target.

A3 Conductor

  • One hole lost in basement rock before desired target depth completion (PLN14-014)
  • Intense clay and chlorite alteration in the upper 30m of basement
  • No graphite or sulphides were intersected to explain the EM conductor, and thus this target area requires further drilling to evaluate.
  • The A3 conductor remains highly prospective.

Table 1: PLN Winter 2014 Drill Hole Summary

Target Hole ID Collar Overburden Athabasca Sandstone Basement Unconformity Total
Depth
Comments
Easting Northing Azimuth Dip Depth (m) From - To (m) Depth (m) (m)
A1 Conductor PLN14-010 588615 6409645 000 -90 92.0 98.2 - 101.1 101.1 384.0
A1 Conductor PLN14-011 588823 6409310 000 -90 104.0 N/A 104.0 374.0
A1 Conductor PLN14-012 588845 6409322 061 -85 101.5 N/A 101.5 296.0
A1 Conductor PLN14-013 589198 6408619 000 -90 136.3 N/A 136.3 413.0
A3 Conductor PLN14-014 587982 6407858 027 -84 99.5 N/A 99.5 263.0 Hole Lost at 263.0m
A1B Conductor PLN14-015A 589505 6408792 000 -90 92.0 N/A N/A 92.0 Hole Lost in Overburden
A1B Conductor PLN14-015B 589505 6408792 000 -90 116.0 N/A N/A 116.0 Hole Lost in Overburden
1938.0
* Collar Location (GPS: UTM NAD 83)

Drill Program

A1 Conductor

The A1 EM conductor is central to the package of south-east trending basement conductors in the Harrison Lake area. It has a strike length of approximately 3km. Previous historic drilling (2007 and 2008) targeted the northern half of the conductor, but none of those holes intersected a conductive basement lithology that could explain the conductor. During the winter 2014 program, four holes were drilled along a 1.2km strike length of the southern half of this conductor; PLN14-010, 011, 012 and 013. All 4 holes were completed to their planned targeted depth.

The four holes drilled in the 2014 winter program intersected locally structurally complex mylonitic graphite and sulphide rich pelitic gneiss. These lithologies and structural features are the preferred geologic setting for basement hosted and structurally hosted high-grade uranium deposits in the Athabasca Basin area, analogous to the PL-3B corridor which hosts high grade uranium on Fission Uranium's nearby PLS property, located ~20km to the south. Despite the lack of anomalous radioactivity, A1 remains a very prospective target area with the type of features required to host anomalous uranium mineralization. Further drilling is warranted for this area.

PLN14-010 was cased vertically through overburden and a thin section of cretaceous mudstone overlaying 2.9m of Athabasca sandstone before reaching the unconformity at a depth of 101.1m. Moderate to strongly hematized and chloritic semi-pelitic gneiss were encountered to a depth of 234.0m where the EM conductor was intersected to 289.3m. The graphitic unit was broken and cataclastic near the upper contact, and is comprised of a strongly graphitic and pyritic mylonized pelitic gneiss. The hole was completed at 384.0m in quartzite without encountering significant radioactivity.

PLN14-011 was drilled vertically 400m south along strike from PLN14-010 and intercepted weakly graphitic and hematitic semi-pelitic gneiss basement lithologies at 104.0m. The ground EM conductor from 292.0m to 324.0m showed increased shearing, along with greater graphite and sulphide content compared to PLN14-010; graphitic cataclasites and fault gouge within the structure prompted an immediate follow up hole. The hole was completed at 374.0m in quartzite without encountering significant radioactivity.

PLN14-012 was collared 25m northeast (060°) of PLN14-011 at a dip of -85° and targeted the conductor 120m up-dip and closer to the unconformity. After casing through 101.5m of overburden, moderately to strongly hematized and chloritic semi-pelitic gneiss were encountered before successfully intersecting the oxidized graphitic and pyritic pelitic gneiss from 179.5m to 215.0m. The hole was completed at 296.0m in quartzite without encountering significant radioactivity.

PLN14-013 was collared vertically 780m south along strike from PLN14-011 testing the A1 conductor near its south terminus and near an interpreted NE structure offsetting the A1 and A1B conductors. After casing through 136.3m of overburden, moderately hematized and chloritic semi-pelitic gneiss and weakly graphitic pelitic gneiss were encountered to 236.8m where the conductor was intersected to a depth of 271.8m. The strongly graphitic and pyritic pelitic gniess contained mylonitic textures as seen in drillholes PLN14-10, 11, and 12 and was significantly broken between 264.0m and 269.0m. Sulphide rich quartz veins intruded the graphitic pelitic gneiss between 241.0m and 246.7m. Semi-pelitic and pelitic gneiss lithologies at depth remained weakly graphitic to completion depth of 413.0m without encountering significant radioactivity.

A1B Conductor

The A1B conductor is a 1.5km long, NNW-SSE oriented basement conductor parallel to and south-east of the A1 conductor. The A1B is interpreted to be an off-set section of the highly prospective A1 conductor, where a NE trending fault off-sets the conductor by about 400m to the east. Two unsuccessful attempts were made to penetrate the overburden; PLN14-015A was abandoned at 92.0m in overburden and PLN14-015B was abandoned at 116.0m in overburden. The A1B conductor remains a prospective target and further drilling is required to evaluate this area.

A3 Conductor

The A3 conductor is the western-most identified EM conductor in the Harrison Lake package and has a strike length of ~2km. A single hole (PLN14-014) tested the southern region of the conductor. Although the hole did intersect basement it was terminated short of the planned targeted depth due to technical problems at 263.0m. The basement rock consisted of orthogneiss throughout with the upper 28.15m (99.85m - 128.0m) being intensely clay and chlorite altered. No anomalous radioactivity was encountered. This lithology does not explain the EM conductor. The A3 conductor remains a highly prospective target and requires further drilling to evaluate.

Upon completion, all drill holes are radiometrically surveyed using a Mount Sopris 2GHF-1000 Triple Gamma probe, which allows for more accurate measurements in high grade mineralized zones.

Drill core samples will be submitted for trace element lithogeochemical analysis to look for pathfinder element enrichment signatures indicative of alteration associated with uranium mineralizing processes. Samples have been submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon. All samples sent for analysis will include a 63 element ICP-OES, uranium by fluorimetry and boron.

Radon-in-Water Survey

An EIC (Electret Ionization Chamber) survey to measure radon in lake water (RIW) and occasional radon in sediment (RIS), was conducted by RadonEx Exploration Management, of St Lazare, Quebec at two target areas: Harrison Lake and Hodge Lake. Radon is a gas emitted as a daughter product from the natural decay of uranium. In certain circumstances radon can be measured and assists in determining if a uranium source is present, thus prioritizing drill targets.

Harrison Lake

In early January 55 RIW and 5 RIS samples were collected at 20 m station on 60 m line spacing covering the north end of the A1B conductor, and the suspected cross-cutting structure offsetting the A1 and A1B conductors. Encouraging RIW results measuring up to 344.5 pCi/L on the NE part of the survey grid near the NE trending structure prompted an extension of the survey, and an additional 45 RIW and 5 RIS samples were collected to help refine drill targets.

Hodge Lake

A total of 120 RIW samples were collected over a grid at 20m station on 60m to 100m line spacing covering two parallel NNE trending EM conductors, each 1.0 km in length. RIW water values up to 124.0 pCi/L were measured. These results will be used to assist in prioritizing future drill targets in this area.

Patterson Lake North Property

The Patterson Lake North property (PLN) lies adjacent and to the north of the Patterson Lake South property, owned by Fission Uranium Corp. (TSX VENTURE:FCU) where recent drill results have identified high grade uranium in 6 separate pods. (See Fission Uranium news release November 27, 2013.)

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 from 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.

PLN is prospective for hosting structurally controlled high-grade unconformity uranium mineralization that is often associated with basement graphitic shear zones within clay altered metasedimentary basement lithologies. These features have unique characteristics that can be identified by geophysical surveys.

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. Fission 3.0 is the operator and project manager.

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 Ted O'Connor, P.Geo. President and CEO of Azincourt Uranium Corp., a qualified person.

About Azincourt Uranium Inc.

Azincourt Uranium Inc. 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 has advanced exploration projects and compliant uranium resources in southeastern Peru and the PLN exploration project joint venture with Fission 3.0 in northern Saskatchewan.

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.

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