East Preston Uranium Project
Athabasca Basin, Saskatchewan, Canada
World-Class District:
The largest, highest grade uranium deposits in the world with 10 to 100 times world average
Production History:
Uranium mining and production for 40+ years
Stable Political Climate:
Pro-mining attitudes and policies on federal and provincial government levels
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Western Athabasca
Comparable Market Caps
NexGen Energy - $819M CDN
Areva (Orano Canada) - $1.37B USD
Cameco - $6.1B CDN
Fission - $281M CDN
Denison - $424M CDN
UEX Corp – $64.8M CDN
Purepoint Uranium – $19.3M CDN
Fission 3.0 - $16.5M CDN
Azincourt Energy - $4.5M CDN
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EAST PRESTON PROJECT
AAZ is earning a 70% interest the Eastern portion of the Preston Project
Overall the Preston Project is one of the largest tenure land positions in the Paterson Lake region
Strategically located near NexGen Energy Ltd’s high-grade Arrow deposit, Fission Uranium Corp’s Triple R deposit & AREVA/Cameco/Purepoint’s joint venture (Spitfire)
Orano Canada (Areva) optioned 49,635 hectares of the Preston Project for up to $7.3 million in exploration expenditures
Over CDN$2.5 million in exploration expenditures on the East Preston Project over the past three years
Several high-priority drill targets identified within multiple prospective exploration corridors delineated through recent geophysics and ground evaluation
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2018 geophysical survey results
In the winter of 2017-18 numerous, high-quality drill targets were generated through HLEM and Gravity geophysical surveys
The geophysical program consisted of 51.45 km of grid preparation, 46.05 km of horizontal loop electromagnetic (HLEM), and 40.6 km of gravity and was designed to accurately identify the location of multiple conductive systems in this shallow depth to basement environment
Uranium deposits are often associated close to basement conductive trends and represent a first order criterion for discovery
Subtle gravity low anomalies can highlight areas of alteration and structural disruption
Gravity highs may represent basement topography, which are also associated with uranium deposits
The initial ground geophysical program confirmed the interpretation of the previous airborne data and has yielded drill targets within previously untested corridors
The following map shows multiple long linear conductors with flexural changes in orientation and offset breaks in the vicinity of interpreted fault lineaments – classic targets for basement-hosted unconformity uranium deposits
These are not just simple basement conductors but clearly upgraded/enhanced prospective targets due to the structural complexity
Abundant drill targets have been identified for continued drill testing
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VTEM ™ Survey – January 2019
A helicopter-borne Versatile Time-Domain Electromagnetic (VTEM™ Max) and Magnetic survey was completed over the southeastern portion of the East Preston Project to complete survey coverage over the entire 25,000+ hectare project area
The survey was completed between January 23 and February 6, 2019, and consisted of 498 line-km with 300 m line spacing and 1,000 m tie-line spacing – identical parameters to the previous VTEM™ Max survey, and ties directly into the previous flight lines
Flight lines were oriented NW-SE, perpendicular to the NE-SW trending structural and conductor trends of the basement rocks at East Preston
Geotech, a global leader in airborne geophysical survey mapping, interpretation and analysis, is finalizing the survey report, but has completed data processing and has provided a merged dataset covering the entire East Preston project (see following slide) by combining the newly acquired VTEM ™ survey data with the original VTEM ™ data coverage
In-depth interpretation is on-going by Bingham Geoscience, geophysical consultants to Azincourt
100% of the 25,000+ hectare (250-sq kms) project ground is now covered by detailed geophysics, adding to an already robust target inventory
The initial results of the survey has added an additional 7.5 to 10 km along two of the previously identified prospective conductive trends
Offset breaks are seen in the conductor trends with multiple, discreet conductors interpreted
Drill Phase – March 2019
Drilling commenced in mid-March with the program consisting of multiple inclined diamond drill holes targeting areas along the Main and M1 conductor trend
All drill holes to date have targeted multiple, closely-spaced discreet graphitic conductors with coincident gravity low anomalies
Drill core samples collected will be submitted for chemical analysis with results pending
Pathfinder trace element geochemistry will add additional information and enhance vectoring towards the most prospective areas of the conductor system
Numerous untested graphitic conductive trends remain on the project for future drill testing, and additional targets are expected to be generated from the recent VTEM survey
