Clean Commodities Corp. is pleased to announce the Corporation's option partner Azincourt Uranium Inc. has announced details for an upcoming exploration program at the East Preston Uranium Project.
Their exploration program is slated to commence this summer / early fall with the purpose of locating new drill targets that were previously untested and refining other additional targets within the Swoosh corridor.
Clean Commodities and Preston project partner Skyharbour Resources Ltd. ("Skyharbour") recently entered into Option Agreement (the "Agreement") with Azincourt which provides Azincourt an earn-in option to acquire a 70% working interest in the East Preston Property (see news release dated March 28, 2017). Under the Agreement, Azincourt issued 2,250,000 common shares to Clean Commodities and will contribute cash and exploration expenditure consideration totaling up to $3,500,000 in exchange for up to 70% of the applicable property area over three years. Of the $3,500,000 in project consideration, $1,000,000 will be in cash payments split between Clean Commodities and Skyharbour. The Preston Uranium Project is a strategic, district-scale property with robust exploration upside potential throughout and is located near recent high-grade discoveries in the Patterson Lake area including NexGen Energy's Arrow deposit, Fission Uranium's Triple R deposit, and the Spitfire discovery.
"Clean Commodities continues to execute on its business model by adding value to its Preston Uranium Project. The option agreement with Azincourt complements the other recent option agreement we signed with industry-leader AREVA Resources Canada and together the two option agreements combine for $9,800,000 in total exploration expenditures over six years as well as $1,700,000 in total cash payments split between Clean Commodities and Skyharbour in return for 70% interests in the respective property areas. We are excited to have Azincourt commencing exploration programs at East Preston which will contribute to strong levels of exploration-related news flow that we expect for the balance of 2017," stated Ryan Kalt, CEO of Clean Commodities.
Upcoming East Preston Work Program Details:
The East Preston property area has had extensive regional exploration work completed in 2013 and 2014 including airborne electromagnetic (VTEM), magnetic and radiometric surveys. Three prospective conductive, low magnetic signature corridors have been discovered on the property area. The three distinct corridors have a total strike length of over 25 km, each with multiple EM conductor trends identified. Ground prospecting and sampling work completed to date has identified outcrop, soil, biogeochemical and radon anomalies, which are key pathfinder elements for potential uranium deposit discoveries. Only one of the corridors has been drill tested to date, intersecting structurally disrupted graphitic metasedimentary rocks at the Swoosh S6 target using a combination of Horizontal Loop EM (HLEM) and gravity as primary targeting tools.
Azincourt is planning to complete a summer / fall exploration program aimed at generating new drill targets within the previously untested corridors and refining additional targets along the Swoosh corridor. The proposed work to be completed will include re-logging and sampling of the seven diamond drill holes (1,571 m) drilled in 2014, with additional ground electromagnetic survey work (HLEM) and ground gravity planned along the airborne conductive trends. Additional ground geochemical sampling work is also being considered, but will be used to enhance any target areas identified from the geophysical surveys.
The planned exploration work program is budgeted at $250,000 and is scheduled for completion by the fall of 2017 to allow for future winter drill target testing.
Overview of East Preston:
The significant potential of the Western Athabasca Basin has been highlighted by recent discoveries in the area by NexGen Energy Ltd. (Arrow), Fission Uranium Corp. (Triple R) and a joint-venture consisting of Cameco Corporation, AREVA Resources Canada Inc. and Purepoint Uranium Group Inc. (Spitfire). More than $4.7-million in expenditures on the entire Preston Uranium Project have been incurred to-date, including over $2 million at East Preston. This exploration has consisted of ground gravity, airborne and ground electromagnetics, radon, soil, silt, biogeochem, lake sediment, and geological mapping surveys, as well as two exploratory drill programs. Several high-priority drill target areas associated with multiple prospective exploration corridors have been successfully delineated through this methodical, multiphased exploration initiative, which has culminated in an extensive, proprietary geological database for the project area.