In a news release, Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQB) announced that its partner company Azincourt Energy Corp. (AAZ:TSX.V; AZURF:OTC) "has announced a Summer Geophysical Target Generation Program at East Preston Uranium project located 50 km southeast of Patterson Lake in the Western Athabasca Basin, northern Saskatchewan, Canada."
The company indicated that "Skyharbour and Dixie Gold Inc. (DG:TSX.V) have entered into an Option Agreement with Azincourt, whereby Azincourt has an earn-in option to acquire a 70% working interest in a portion of the Preston Uranium project known as the East Preston property."
The firm advised that under the terms of the agreement, Azincourt has issued common shares and will contribute up to CA$3.5 million in cash and exploration expenditures in exchange for up to 70% of the applicable property area over three years and that CA$1 million of the CA$3.5 million will be paid to Skyharbour and Dixie Gold in cash.
The firm stated that the 2020 summer ground geophysical targeting program will consist of helicopter-supported ground geophysical surveys and is presently being created to support future drill programs based on the existing property-wide heli-borne VTEM survey interpretation and results.
The company noted that it expects Azincourt's summer work program to be sufficient to satisfy the CA$2.5 million work requirement stipulated in the joint venture earn-in agreement with Skyharbour and Dixie Gold, and that after one final cash payment of CA$400,000 is paid to Skyharbour and Dixie, Azincourt will have earned a 70% interest in the East Preston project.
Azincourt's President and CEO Alex Klenman commented, "The continuing work at East Preston is all about target generation...It's no secret the project is already target rich. We have barely scratched the surface in terms of drill testing these areas. We are methodically moving the project forward by adding more critical data. This is the logical next step before we commence the next drill program."
The company explained that the East Preston project is located immediately south of the southern edge of the Athabasca Basin and pointed out that no Athabasca sandstone is present beneath the relatively thin glacial overburden. The firm outlined that follow-up and extension drilling has already been recommended for the existing target areas based upon prior drill results and the similar geological and structural setting to the prolific Paterson Lake trend.
The company stated that Azincourt conducted a winter geophysical exploration program in January-February 2018 that generated a significant amount of new drill targets within the previously untested corridors while refining additional targets near previous drilling along the Swoosh corridor. The gravity surveys completed identified areas along the conductors with a gravity low signature, which the firm stated is often associated with alteration, fault/structural disruption and potential for uranium mineralization, according to the company.
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