Azincourt Energy signs Definitive Agreement to acquire five lithium projects in Manitoba
VANCOUVER, British Columbia, Jan. 15, 2018 (GLOBE NEWSWIRE) -- Azincourt Energy Corp. (“Azincourt” or the “Company”) (TSX-V:AAZ) is pleased to announce it has entered into a definitive property agreement with New Age Metals (TSX.V:NAM) (“the Optionor”), and its wholly-owned subsidiary, Lithium Canada Development Inc., pursuant to which it will acquire the option (the “Option”) to earn up to one-hundred percent (100%) in a series of five lithium exploration projects located in the Winnipeg River Pegmatite Field, Manitoba, Canada (collectively, the “Projects”).
The agreement covers the Lithium One, Lithium Two, Lithman West, Lithman East and Lithman North projects. The land package included in this agreement represents the largest mineral claim holdings (6000 hectares) of projects for the lithium group or type of minerals in the Bird River Greenstone Belt, which contains the Winnipeg River Pegmatite Field.
The Winnipeg River Pegmatite Field is host to numerous lithium-rich pegmatites in addition to the world-class Tanco Pegmatite, a highly fractionated lithium-cesium-tantalum (LCT) type pegmatite that has been mined at the Tanco Mine since 1969 for spodumene (a major rock unit for lithium (Li)), tantalum (Ta), cesium (Cs), rubidium (Rb), and beryllium (Be) ores.
Three of the five projects are drill ready:
Lithium Two Project
- * Historical estimate from drilling in 1947 defined 545,000 tonnes of 1.4% Li2O, drilled to a depth of 60 meters
- Field work in 2016 confirmed that the Eagle and FD5 Pegmatites contained significant surface spodumene
- 12 samples collected returned a range of 0.02% to 3.04% Li2O from the Eagle Pegmatite, and up to 2.08% Li2O from the FD5 Pegmatite
- The Eagle Pegmatite is ~1100 meters in length, up to 12 meters wide and open to depth
- Project is adjacent to Quantum Minerals Corp (TSX.V: QMC) Cat Lake Lithium Project (aka Irgon Lithium Mine)
* Note: The mineral reserve estimate cited above as part of the Lithium Two project is presented as a historical estimate which does not conform to current NI43-101 standards. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Although the historical estimates are believed to be based on reasonable assumptions, they were calculated prior to the implementation of National Instrument 43-101 standards. These historical estimates therefore do not meet current standards as defined under sections 1.2 and 1.3 of NI 43-101; consequently, the issuer is not treating the historical estimate as current mineral resources or mineral reserves.
Lithium One Project
- Field work in 2016 sampled several historical pegmatites
- Grab samples of the pegmatitic granites and pegmatites in the project area returned values from 0.00 to 4.33% Li2O with the high values obtained at the Silverleaf Pegmatite
- Several of the other pegmatites in the project area yielded lithium values from lepidolite and spodumene
- Approximately 40 pegmatites are estimated to exist north of Greer Lake with around 100 to the south of the lake
- The Silverleaf Pegmatite was excavated and mined for spodumene in the 1920’s, with surface exposure of 80 m X 45 m
- Several drill ready targets
Lithman West Project
- Historical rock and soil geochemical anomalies
- Anomalies have not been drill tested
- Drill ready
The Lithman West and East projects are adjacent to the Tanco Mine lease property. Tanco Mine is an underground cesium, spodumene and tantalum mine. The mine has the largest known deposit of pollucite and is also the world's largest producer of cesium. The pegmatite ore body now mined by the Tanco Mine was discovered in the late 1920s. Major minerals found in the mine include spodumene (lithium bearing), amblygonite (lithium bearing), pollucite (cesium bearing), and beryl (beryllium bearing) and a host of tantalum bearing minerals.
The additional projects contained in this agreement, Lithman East (adjacent to Tanco) and Lithman North, represent prospective exploration areas that require additional ground work to determine drill targets.
“This definitive agreement highlights Azincourt Energy’s continued determination to be part of the solution to the increasing demand for battery metals, for today and tomorrow’s EV revolution,” stated Chairman Ian Stalker. “We continue to look to unlock shareholder value from previously worked properties that have distinct promise and where our team can add input from their collective experience. We are also please to be working with the New Age Metals team and look forward to utilizing their knowledge of the projects to date.
“The work that will commence on these properties, along with the work underway on our uranium focused properties, shows the Company’s commitment to this energy demanding environment,” continued Mr. Stalker.
“Our corporate strategy is to identify, acquire and develop highly prospective projects that will add immediate value in addition to presenting measurable upside”, said Alex Klenman, president and CEO. “The addition of the Manitoba lithium properties is but one step in this process. We are currently conducting due diligence on additional projects in the clean energy-clean fuel space that would expand our portfolio and continue to add value,” continued Mr. Klenman.
Pursuant to terms of the Option, the Company can acquire a fifty percent (50%) interest in the Projects by: (i) completing a series of cash payments totaling $200,000 over an eighteen-month period, (ii) issuing 1,000,000 common shares over a thirty-six-month period, and (iii) completing a minimum of $2,100,000 of exploration expenditures on the Projects prior to August 31, 2020. Once the Company has acquired this interest, it can acquire a further ten percent (10%) interest in the Projects by completing the issuance of a further 1,000,000 common shares, and incurring further exploration expenditures of at least $750,000 prior to October 31, 2021. The remaining forty percent (40%) interest in the Projects can be acquired by completing the issuance of a further 1,000,000 common shares, and incurring expenditures of at least $1,000,000 prior to October 31, 2022.
Once the Company has acquired a one-hundred percent (100%) interest in the Projects, it will grant to the Optionor a two percent (2%) net smelter returns royalty on commercial production from the Projects. In addition, the Projects are subject to an existing one percent (1%) royalty on lithium production from the Projects which can be purchased for a one-time cash payment of $250,000.
All securities issued in connection with the property option will be subject to a four-month-and-one-day statutory hold period. The property option remains subject to the approval of the TSX Venture Exchange.
The contents contained herein, which relates to Exploration Results or Mineral Resources, is based on information compiled, reviewed or prepared by Carey Galeschuk, Principal Consulting Geoscientist for New Age Metals. Mr. Galeschuk is a Qualified Person, as defined by National Instrument 43-101 and has reviewed and approved the technical content of this news release.
About Azincourt Energy Corp.
Azincourt Energy Corp. is a Canadian-based resource company specializing in the strategic acquisition, exploration and development of alternative energy/fuel projects, focusing on uranium, lithium, cobalt, and other critical energy & fuel elements.