Azincourt Energy (TSX-V: AAZ)(OTCQB: AZURF) CEO Alex Klenman on Vectoring in on a New Discovery
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 great Gerardo. Always happy to be on with you and discuss the deal and what's moving forward. There's some exciting things going on.
Gerardo Del Real: Let's get into it. The uranium sector is on fire. Azincourt has good momentum. You've now increased the alteration in the K zone to 1,200 meters. I should caution everyone listening or reading that alteration at this point is just alteration, but the discovery process for significant uranium discoveries starts with this type of alteration. I don't think it's a coincidence that you just closed a $5.1 million private placement. You also announced a share consolidation. A lot to unpack there, but I wanted to have you on just to set the table and maybe set expectations for what the process looks like moving forward. Because, as I said, alteration is just alteration at this point. But man is it exciting to see that zone continue to expand.
Alex Klenman: You are 100% correct. And I'm happy to elaborate a little bit. Yes, alteration is key. Obviously we know that several major discoveries have been made by first finding alteration zones and then chasing those zones in a manner of different ways. And so that was a significant find for us. We've got two zones that are completely open, and one is 1,200 meters. As you mentioned, the other's about 500 meters. But we have every indication that those will continue on. And we're getting some pretty massive interceptions of that alteration, that hematite and the clays. I mean, we're talking 100 to 200 meter thick zones and that's significant at this point. We have to have alterations. We've now found it. And now we tighten up the grids within that alteration. And we, as they say, vector towards discovery.
Gerardo Del Real: Walk me through timelines. Obviously, we're waiting for assays. We're waiting to see what's there. That's going to dictate what comes next as far as the approach, right? How is the turnaround time with the labs? When do you expect assays? And then walk me through what comes next. Let's do best case/worst case scenario. Worst case scenario, it's just alteration, but you are vectoring towards what you believe is something significant. Best case scenario is you actually touch on some uranium there and it's off to the races. Regardless of which scenario plays, out what comes next?
Alex Klenman: Yeah, it's funny that you mention that, I know you didn't do this consciously, by saying, oh, well it's just alteration. It's like saying, well, we just found gold for the first time on a project or we just found a diamond and it's not 300 carats.
Gerardo Del Real: That was intentional by the way, Alex.
Alex Klenman: It is significant, and I'll tell you how we know it's significant. Obviously we reported that 800 meters in the first news release that we put out in regards to the alteration find. And immediately thereafter, we had expressions of interest from institutional funds, to the tune of, as you mentioned, $5 million, a little over $5 million. So again, a complete institutional round of financing, but based not on upcoming drill results. I mean again, they put money into Azincourt ahead of drill results. Which tells you the significance of the alteration. The alteration in itself is a discovery. And we just know that sooner or later, somewhere in there is going to be what we're after. And yeah, we'd like to see geochemical analysis. Obviously we're hoping to get some runs in there and some positive results. But I think the most important thing to remember is, the alteration is game changing. And so much so we increased the coffers by a substantial amount. We just spent four million on the drill program and we just recovered that before even seeing any analysis whatsoever. So very positive.
Gerardo Del Real: I think the smart money, or the money that, at the very least, understands the significance of this alteration zone, clearly wants to position ahead of results. And ahead of furthering the discovery process. I asked for timelines on assay results. When do you think we may start to see some of those results trickle in Alex?
Alex Klenman: Yeah, I'm hoping by the end of the month. Sometime in April we'll start to see the beginning of it. And then I think the labs are going to be exceptionally busy, in fact, I know they are. This was probably the most money spent in the basin in the last decade this particular drill season. So obviously they're going to be very busy. We got some of our core in pretty early, so we should start to see results coming in towards the end of the month.
Gerardo Del Real: With the uranium spot price hitting $63. And in my opinion, headed to $100 and then $125 and then $150, and then eventually overshooting to $200. I can't imagine a better time to be tapping into and vectoring into this discovery. I think your timing is excellent, I said it to you off air. Again, not a coincidence that you were able to get the kind of interest on the private placement that you did. You announced a share consolidation, which I love to see. I'm a big proponent of share structures and being able to manage that, so congrats on that. Exciting times, Alex, anything to add to that?
Alex Klenman: Yeah, I'd love to talk about the consolidation real quick. We made the decision based on the interest on the table, right? So five million basically added 60, 65 million at our current share price to the flow. And at some point, and the argument is it's already at that point, that it becomes hard to manage. And all we really did here was tighten it up a little bit. A two and a half to one is very manageable heading into positive results at east Preston, the cash in the bank, the sector, as you framed, I mean $63 spot is phenomenal, but $100, $120 or more is on the table. The timing is right. When the masses come in, they're going to see Azincourt for the first time. And if we had 500, 600 million shares out, a lot of retail investors will broach at that.
They'll look at that and they'll go, I like everything about this deal, but I think that's just too heavy. So we clean that up prior to the masses arriving, and I think that's really going to help value moving forward. And really it's not about quantity. It's more about quality. I know a lot of people get hung up. Oh, well, I want as many shares as possible. Really look at the value of what you're holding and what the path ahead to get your ROI looks like.
And today our path ahead looks far, far better, far cleaner, and way more efficient to get those returns that people seek. I should also mention that the funds were aware prior to the placement closing that there was the potential of a two or two and a half to one, not one order was pulled. So the funds are on board, they're happy with the move. A few retail people were complaining, but for the most part I think we're getting good support. Today we just hit a four month high just a few days after announcing that. So that's always a good sign and I think good things are ahead as you mentioned.
Gerardo Del Real: Exciting times, Alex. Thank you so much for the update. I'm looking forward to having you back on and I can't wait to see those assays.
Alex Klenman: Awesome. Appreciate it. Thanks Gerardo, as always.
Gerardo Del Real: All right, Alex, we'll chat soon. Bye now.