Azincourt Energy has signed an option agreement to acquire a mineral claim block, the Snegamook Project, in the Province of Newfoundland and Labrador, Canada, from BR Corporation.

Under the deal, Azincourt will have the option to acquire a 100% stake in the mineral claim block by issuing shares and investing in the project's development.

Upon exercising the option, the project will incur a 2% net smelter returns royalty, with the possibility of buying back half of this royalty for a one-time payment of $1m (C$1.39m).

Azincourt Energy Exploration vice-president Trevor Perkins said: “The Central Mineral Belt in Labrador has seen a resurgence in activity recently and is relatively underexplored. It is exciting to get involved in an area that will potentially see the next wave of uranium discoveries in Canada.”

Located near Snegamook Lake in Labrador's Central Mineral Belt, the Snegamook Project spans 423 hectares (ha) and is positioned less than 1km south of the Two Time Zone Project with a historical resource of 5.55 million pounds (mlb) of triuranium octoxide (U3O8).

The project area is also in proximity to Paladin Energy’s Michelin deposit, which boasts a significant resource of 82.2mlb of U3O8.

Between 2006 and 2008, the project underwent various exploratory activities including airborne geophysics, prospecting and diamond drilling.

These efforts led to the identification of the Snegamook Zone uranium occurrence, where drilling intersected uranium-bearing monzodiorite with geological similarities to the Two Time Zone Project.

Despite these initial findings, no further exploration has been conducted since 2008.

Azincourt's immediate plan involves compiling all historical exploration data and initiating a drill campaign to confirm and potentially expand upon the historical mineralisation.

Azincourt Energy CEO Alex Klenman said: “We have been seeking a second uranium project for some time and Snegamook meets some important criteria for us.

“The project offers proven shallow mineralisation proximal to a known deposit. It provides exploration upside for both expansion and for new discoveries. In the mid-2000s, the region was quite active with uranium exploration activity and now once again there are some large companies leading exploration efforts in the area.

“This initial land position allows Azincourt to establish a foothold in this emerging Canadian uranium camp.”