Azincourt Energy (TSX-V: AAZ)(OTCQB: AZURF) CEO Alex Klenman on Fall & Winter Drill Programs and Adding Value During Tough Markets
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, it's great to have you back on. It's been a bit. How have you been, sir?
Alex Klenman: I've been well, thanks for having me. It's been a quiet summer. We just watched the markets melt and we kind of backed off a lot of marketing, cut the spend in a lot of places just to ride it out. But we're getting into the drill window here, so it's time to talk Azincourt.
Gerardo Del Real: Well, listen, I think your timing is excellent. We saw that big leg up here early in the year in the uranium space, and then we've seen a consolidation since then. I see the uranium spot price poking its head over the $52 level. Both you, myself, and then people much smarter than I believe that's going much, much higher. So I think your timing is excellent. Tell me about the fall and winter drill programs that you have planned for Azincourt?
Alex Klenman: Yeah, you bet. No, we're right on schedule for our East Preston project, which is our flagship. We've sunk a lot of money into it and we're getting closer to impactful discovery with every bit of drilling we do. Last year, obviously with the big story was the alteration zones, 1,700 meters of alteration that we drilled into. And just to remind your listeners, alteration is pretty key on the road to discovery in the uranium deposition. Hematite alteration typically acts as a halo around a deposit or near a deposit from proximity of deposit. So we're running into tons of hematite. I mean, we've got 100 meter thick zones, which is pretty amazing, and now we're starting to run into the clays which are even closer, typically found closer to uranium deposition. So we're excited about that. We have a new set of targets. We're going to tighten up some of the grids in the areas that we've drilled with good numbers before, and we're scheduled to do another 5,000, 6,000 meter drill program here. We'll be on the ground in January. In December, we're on road prep and camp build so work starts pretty quick.
Gerardo Del Real: You also had a recent addition to the Azincourt portfolio that I don't believe we actually went over in great detail. This of course happened back in late 2021. Can we get into Hatchet Lake?
Alex Klenman: Yeah, absolutely. Now that was our second project. We really wanted a sidecar project, a second project that had plenty of upside, and after looking at dozens of options, we liked the proposal from ValOre Metals and the earn in agreement is solid and it's in the right place. It's on the Wollaston corridor and the Northeastern side of the basin where really all of the production in the Athabasca is located. We know that there is already uranium mineralization on property up to 2.4%, which is, I mean, the world average is 0.2, so that's good, higher grade.
And we want to get in there and drill. We're in the permitting and First Nations consultation process for Hatchet, so we hope to get through that as quickly as possible. Certainly not moving as quickly as we'd like, but that's all those things they say about bureaucracy, right?
So we're in the throws of it, but we'll get there and we'll drill. We're going to drop probably $1 million, $1.5 million on first drill program there. We've got some good targets and we're excited to get going. We'll just sort of wait it out here as the process plays out, but hopefully we'll get to it here in the midterm or in the interim, and we'll move from there.
Gerardo Del Real: It sounds like you're in acquisition mode because you signed a letter of intent that's dated September the 15th of this year with an undisclosed party to evaluate an exploration stage uranium project. Are you looking for other projects, Alex?
Alex Klenman: Well, funny how that works, right? We weren't really looking, but something came across our desks that piqued our interests. So there is a property that has some mineralization in a good area. It's been underexplored. Has all of the geological characteristics you like to see, and it looks like a good deal. So are we going to cut a deal? I don't know. We'll see. Right now we're doing the data compilation and we're going through a lot of the behind the scenes stuff. We really want to dig into the project and then we'll see, but we're able to accommodate a third project. It's not something, again, that was front and center for us, but in a bad market, when good projects come your way, they're typically cheaper and easier to deal with and might be something that we pull off here. We'll see.
Gerardo Del Real: A lot of news flow coming up. Again, I think your timing is excellent. Alex, anything to add to that?
Alex Klenman: No, just, I know a lot of people, there's so much panic and disgust and anxiety and angst over the market where it's turned, but really there's always light at the end of the tunnel. And these things are cyclical and you have a down period and then you have an up period. And it's really trying to keep everything in perspective. Don't get too high, don't get too low. We'll pull out of this. A lot of the market caps have been decimated just on sentiment coming back into the sector alone. We'll all bump up 25%, 30%, 35% or more. And when you combine a little bit of work and maybe some positive work into that move, we'll be back and I think people will be much happier. And I think we're finally getting to the point where people are understanding that it is futile to complain and that the markets will turn when they turn. But the best advice I've been given and I can give is, ride it out and before you know it things will be looking good.
Gerardo Del Real: Well said, Alex. Great catching up. Let's do it again soon.
Alex Klenman: Appreciate it, Gerardo. Thanks as always.
Gerardo Del Real: Cheers.