Azincourt Energy (TSX-V: AAZ)(OTCQB: AZURF) CEO Alex Klenman on Extending the Alteration Zone At The East Preston Uranium Project

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the President and CEO of Azincourt Energy, Mr. Alex Klenman. Alex, how are you today?

Alex Klenman: I'm good, sir. Thank you for having me once again.

Gerardo Del Real: Thanks for coming back on on short notice. The last time you and I spoke, we talked about a significant discovery, the discovery being an alteration zone at the East Preston uranium project. Now, it is just an alteration zone at this point, but the release today extends that alteration zone. And I wanted you on to explain why that is a significant development for the East Preston uranium project.

Alex Klenman: Yeah, yeah, no, it's actually really, really good news and it's extremely significant. And it should be mentioned that these alteration zones typically act as halos around deposition, mineralization and you really need to find them to find big deposits. So, first step is, find the zone, determine the size of the zone, and we've been doing that. So the first release that we put out, we estimated it at about 800 meters. Drilling in the southernly direction has continued to run into this hematite, run into the extreme alteration, and we're now at about just over 1,200 meters strike length. And that's a very significant footprint for what could be in fact, a halo over something notable.

Gerardo Del Real: When you say potentially significant and halo, what are the analogs when it works out? And again, I want to stress and caution, right? This is still early. It's still just an alteration zone, but at the same time, you're seeing all the right indicators, right? If this was a gold deposit in Nevada and you were seeing the arsenic and the mercury and the pathfinder elements, you would be excited that you're getting closer to a gold discovery, right? Can you explain that for everyone?

Alex Klenman: Yeah and well said. I mean, that's a good analogy talking about gold discovery in a place like Nevada. But in the Athabasca, typically, I'll give you an example. Three major deposits, Key Lake, Millennium and McArthur River were all found by chasing alteration, that is to drill in and around the alteration with different methods, either underneath, cross-cutting, down the heart of it, however you want to look at it. But by chasing alteration led to all of those discoveries that I just mentioned, and those were all big, impactful discoveries.

Now that isn't to say, we're going to duplicate that, but what we need to know or what should be noted here is if we ran into a big mineralized hole prior to finding the alteration, we'd probably be shocked and scratching our heads. If we're to run into that hole tomorrow, we're not as shocked. We're not scratching our heads. We're celebratory of course, but the next step along this path could very well be impactful discovery, simply because you have to have this alteration. It is how the deposition occurs. You need it. It's an indicator, and we're getting a big zone. I mean, 1,200 meters is nothing to sniff at.

Gerardo Del Real: Agreed. Results? When do we start peeking under the hood per se?

Alex Klenman: Yeah. Yeah. Well, it's all going to come down to the geochemistry and the analysis, right? So, we're optimistic that the first few holes will start to come back in April, but cautionary tales always tell us the labs will be optimistic, but the labs are going to be jammed. And we've addressed this before. I mean, it's almost a record year. Certainly the most capital in the last 10 years has recently flowed into the basin. And that's going to mean that there's more drilling and that there's more core that has to be analyzed. And I guarantee you, the labs are going to be jammed. So we're hopeful that we'll begin to see some of the results in April, and it'll probably stretch into May, maybe even June. Hopefully not that long, but I mean, it's taken us this long to get to where we're at, so we're okay.

We're drilling in the K-Zone. We're drilling in the H-Zone. Both of these zones have ideal environments. We've run into 10 times background radioactivity, which is also a great sign. We're onto something here, and it's why we also, in that news release, mentioned that we're going over budget. We're going to increase the budget. We're going to spend a little bit more money to get as much done as we can in this season.

Gerardo Del Real: Well said. Looking forward to those results. Let's catch up again soon. And again, can't wait to see numbers and follow up work, right? It should be noted again, discoveries don't typically happen with five holes or 10 holes. It usually takes quite a bit. And we know it's high risk, high reward, but the reward on this could be significant, so looking forward to that. Anything to add, Alex?

Alex Klenman: Yeah, no, I understand the exploration and drilling is a high risk endeavor, but by finding zones like this and chasing zones like this, the project becomes that much more derisked, so we're excited.

Gerardo Del Real: Indiana Jones would be proud. Thank you, sir.

Alex Klenman: Thank you. Take care.

Gerardo Del Real: Bye now.

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