Azincourt Energy CEO and President Alex Klenman joined INN to discuss exploring Saskatchewan’s Athabasca Basin.
Azincourt Energy (TSXV:AAZ,OTC Pink:AZURF) CEO and President Alex Klenman joined the Investing News Network at the Vancouver Resource Investment Conference to discuss his company’s progress exploring Saskatchewan’s Athabasca Basin.
Azincourt is currently exploring its 25,000-hectare East Preston project, located in the southwest portion of the Athabasca Basin. The company recently received all necessary permits for its upcoming 2020 drill program, which it intends to conduct as it works towards defining a resource at East Preston.
According to Klenman, black swan events and recent legislative challenges like the 232 initiative in the US have cast a shadow over the uranium sector. Despite these setbacks, Klenman believes the supply and demand dynamics in the uranium space have the potential to drive the price upwards as society continues to rely on nuclear power as a sustainable energy source. Despite societal concerns about nuclear power plants, the growing trend towards small modular reactors (SMRs) and more manageable nuclear energy production facilities has the potential to boost the nuclear energy space.
Below is a transcript of our interview with Azincourt CEO and President Alex Klenman. It has been edited for clarity and brevity.
Investing News Network: Alex, welcome back.
Azincourt CEO Alex Klenman: Thank you, sir. Good to see you.
INN: What’s your symbol? What market are you on?
AK: Azincourt Energy trades on TSX Venture under the symbol AAZ or AA-Zed as my Canadian friends like to say.
INN: Specializing in uranium.
INN: It’s a very interesting metal right now with the need for uranium going up and new facilities coming online. There is a building demand and everybody can see it.
AK: One hundred percent. The 232 Initiative in the US has really cast a shadow over the sector but the US buyers are the largest buyers on the planet. Having them wait to have 232 settled has caused a little bit of grief, or delay, in the market we know is coming. Supply and demand fundamentals are clear. There are a number of long term contracts expiring and they have to buy at some point. This thing is going to go.
INN: We’ve seen the drawdown in production out of Russia as well, so the entire marketplace has changed.
AK: Right. We know it’s coming, it’s become a little bit more of a contrarian play today than it was last time you and I spoke. But if you look at supply and demand fundamentals, this is where you’ll see the light.
INN: Let’s talk about your project.
AK: Yeah, absolutely. East Preston is 25,000 hectares in Western Athabasca. It is the place to be. We’re in a unique position, we’re a C$3.5 million market cap and we’re about to put about 30 percent of that into a drill program. We’re literally days away from that beginning. We’re going to drill 15 targets somewhere around 2,500 meters and we’re excited. This is something we’ve been waiting for — it’s a substantial drill program.
INN: So how long before you think we’ll have results out of that drill program?
AK: It’s anywhere from 50 to 60 days worth of drilling, so we’ll drill right into March. Then, probably April or May before we see results. But we’re excited, we think we’re onto something. The little bit of drilling we did last year gave us a little hint, so we’re excited. This is a big moment for Azincourt.
INN: What do you need to do to get from where you are now to when that demand starts to hit?
AK: In terms of the project itself, it’s being able to continue to build the data and push the project towards success. That means better results in drilling, higher elevations, higher readings and putting together this database with what we have in East Preston.
We’re a long way off from getting to any kind of huge upside in terms of defining a resource but where we are, there are not a lot of new projects coming that are early-stage like we are in such a great place. Our value kind of lies within that: we’re in the right place, it’s the right address and we’re putting substantial investment into the drilling, which I think is really where our upside will turn.
INN: So what’s the opportunity for the investor at the moment?
AK: When you look at where we are right now, trading at sub 5 cents, the risk-reward I think is staring you in the face. We have a grade-A project in the best place in the world to drill for uranium and we’re cashed up for drilling and we’re not going light. This is a substantial program. So we’re giving everybody an opportunity here.
INN: What does Canada as a jurisdiction, Saskatchewan in particular, bring to the equation?
AK: Obviously, it’s a safe jurisdiction. It exists for uranium mining, the Athabasca Basin. We’re not going anywhere; no one’s going to shut us down. We’re going to continue to work on the project as long as we can. We think we’re onto something, and I think it’s just a matter of time in terms of being able to define it. The more drilling we get done, the greater the chance we have.
INN: It’s a pretty exciting market.
AK: Absolutely. We’re a long way from Three Mile Island or even Fukushima. The technology is getting better, reactors are getting smaller and they’re more self-contained. Unfortunately, a black swan event in the uranium space is a big event. We always have that hanging over our heads, but the long term curve here is headed in that direction, and there will be much more reliance on nuclear heading into the next 10, 20, 30 years.
INN: Well who can predict? If someone is watching this conversation a year from now, your story could really start to change.
AK: We need to get to US$30. That’s coming.
INN: There seems to be a lot of optimism about the price getting to US$30.
AK: I think it’s close. I mean, we’re going to wait it out, we have no choice, but we’re going to get our work done in the meantime and when that happens, you’ll notice.
This interview is sponsored by Azincourt Energy (TSXV:AAZ,OTC Pink:AZURF). This interview provides information which was sourced by the Investing News Network (INN) and approved by Azincourt Energy in order to help investors learn more about the company. Azincourt Energy is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Azincourt Energy and seek advice from a qualified investment advisor.
This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.