Azincourt Energy Corp. (TSXV: AAZ) (OTCQB: AZURF) signed a definitive property option agreement with Atlantis Battery Metals Corp to purchase up to 75 per cent interest in the Big Hill Lithium Project in Newfoundland.
The Big Hill Lithium Project is an exploration property spanning 7,500 hectares in southwestern Newfoundland, Canada. The property contains Lithium-Cesium-Tantalum (LCT) deposits and is situated on the south side of the Hermitage Flexure, approximately five kilometres away from the Kraken Lithium Pegmatite Field.
The Big Hill Lithium Project features numerous granite dikes that cut the Burgeo granite. Pegmatite dikes greater than 2 meters wide and 20 meters long have been found south of the property and are expected to be present on the Big Hill exploration licenses.
Preliminary prospecting has identified four target areas based on extrapolation of bedrock geology, structural disaggregation of stratigraphic blocks, and apparent folding and late shear faulting. These targets are known as the River, Road, MK, and Ridge Targets and will be the focus of initial exploration. The soil and rock assay results and other geological information are expected by mid-June.
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Area around Big Hill Lithium Project previously explored for polymetallic mineralization
The area around the Big Hill Lithium Project has seen extensive mineral exploration over the past several decades. The Peter Snout mineral occurrences immediately east of the Kraken Lithium Pegmatite discovery and the White Bear River area further to the northeast have seen exploration for many years for polymetallic mineralization.
Additionally, the Grey River area to the southeast has been explored for tungsten and gold. The Hope Brook Mine, located to the southwest of Big Hill, produced 752,163 ounces of gold from 1987 to 1997.
“The potential at Big Hill is significant, and we feel it’s extremely prospective for additional, substantial discoveries,” said Alex Klenman, CEO and president of Azincourt Energy.
Atlantis Battery Metals has extensive exploration success in the lithium space and will provide ongoing technical support. Atlantis will also act as an operator throughout the option period in conjunction and close collaboration with Azincourt’s management team.
The terms state that Azincourt can acquire a 60 per cent interest in the project by completing cash payments, share issuances, and incurring certain expenditures. The company can acquire a further 15 per cent interest in the project by completing a one-time cash payment to Atlantis equivalent to the fair market value of the interest at the time.
Newfoundland is home to a number of different companies in search of critical minerals, including lithium. The province has started to see more interest after an alliance between Sokoman Minerals (TSX: SIK) and Benton Resources (TSXV: BEX) confirmed the first lithium occurence in the province in 2021 at their Golden Hope property.
Now Origen Resources Inc. (CSE: ORGN) (FSE: 4VXA) has staked a 3,500 hectare claim within the Newfound Lithium Belt.
Azincourt Energy shares rose 12.5 per cent on Friday to $0.045 on the TSX Venture Exchange.
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