In January 2023, Azincourt Energy (AAZ.V) announced it was mobilizing its crew for an extensive Winter 2023 drill program at the East Preston uranium project in the Athabasca Basin. The program is planned for approximately 3,000 metres of drilling in 12 plus diamond drill holes. The focus will be on evaluating the alteration zones and elevated uranium identified from the previous Winter 2022 drill program.
Today, the Company provided an update on its 2023 Winter exploration program. Drilling commenced at the East Preston Project on February 2nd 2023, and so far 1,686 metres has been completed in 8 drill holes. Two rigs are operational on the project after extreme weather delayed the initial startup. Six dill holes are complete and two are in progress. Currently, drills are turning on both the K and H zones (shown below).
The company considers the drilling results to date to be significant, as major uranium discoveries in the Athabasca Basin such as McArthur River, Key Lake, and Millennium were primarily the result of drill testing of strong alteration zones related to conductor features.
“We are excited to be continuing where our 2022 program left off. The previous program has shown that we have a significant alteration system present on the property” said VP, Exploration, Trevor Perkins. “Finding the extents of this system and identifying where within that system the alteration fluids are focusing is very important. We need to focus in on the most responsive areas, and confirm what these anomalous areas have to offer,” continued Mr. Perkins.
Drilling on the northeast trending G-Zone was halted with three holes completed to follow up 2022 results. Extensive hydrothermal alteration and evidence of east-west cross-cutting structures have been intersected along the southern portion of the zone. The alteration zone is highlighted with intervals of hydrothermal hematite alteration and extensive evidence for a steep east-west fault cross-cutting the main northeast trending structure and graphitic lithologies.
Current results have not significantly improved the ranking of this area; however, the identified alteration is still considered significant. An evaluation of the structural data and geochemistry will be undertaken to aid in determining what additional follow-up and evaluation of the alteration zone in this area is warranted.
On the north end of the K-Zone two holes have been completed. Drilling has intersected extensive structure and hydrothermal alteration, increasing the length of this alteration zone by 300 meters to 1500 meters long. Extensive clay alteration within the structural zone is an indication of upgraded prospectivity and vectoring towards potential mineralization.
The decision to increase drilling in this area has been made and will be completed once pads have been prepared. Samples of intersected clay will be analyzed to confirm the clay species and significance with respect to the alteration model and potential proximity to mineralization.
One hole has been completed in the H-Zone where a bend occurs naturally. Additional drilling will continue to evaluate this bend, but so far the first hole has intersected an intense graphitic fault zone with hydrothermal alteration.
“We continue to be encouraged by the response we are seeing in the K and H Zones” said VP, Exploration, Trevor Perkins. “The extensive alteration we are encountering is very encouraging. As we continue to drill and intersect stronger clay alteration, this allows us to begin narrowing our focus on the most prospective areas on these trends” continued Mr. Perkins.
Azincourt Energy is currently up 9.09% on today’s news.
Bottom pickers who are bullish on uranium should definitely have this stock on their watchlist. Azincourt Energy is showing promising signs of a bottoming pattern forming. Just looking at the market structure shows that an uptrend could be in the cards. The stock has had a downtrend, and is currently in its range phase. All markets move in three ways: downtrend, range and an uptrend. These just repeat cycle after cycle.
A range tends to show the end of one trend, and a transition to another. In the case of Azincourt Energy, a range has formed after a downtrend, and the breakout of the range would thus trigger a new uptrend. The trigger for a breakout on Azincourt Energy comes with a daily candle close above $0.08.
When you consider a uranium bull market, the stock ranging and near its base of previous all time lows, a potential reversal pattern triggering AND fundamental catalysts from upcoming drill results from the Winter 2023 program, the stock does provide a good risk vs reward investment.
