Azimut Exploration Inc.

History

2010

Quebec’s top exploration portfolio

Azimut's 2010 portfolio increased to 36 exploration properties representing 19,021 claims or approximately 8% of the mineral rights granted in Quebec, once again maintaining its position as the #1 claim-holder in the province.

Discovery of new polymetallic district

The staking of the Rex and Rex South properties marked a major achievement for Azimut, providing the Company with a controlling land position over a previously unrecognized 160-km polymetallic trend in a largely under-explored region of Nunavik, northern Quebec. In addition to exceptional copper, gold and silver grades, Rex South also yielded the first discovery of high-grade tungsten in Nunavik (northern Quebec).

Property ownership

Azimut owned a 100% interest in all of its properties in 2010, with the exception of Eleonore South (approx. 30%), and Opinaca A and B (50% each). By the end of the year, there were 7 option agreements in effect on 9 of the 36 properties.

Exploration highlights

Nunavik copper-gold-REE

Azimut staked the 45-km-long Rex South property to cover a large copper, gold and rare earth target identified by the Company’s province-scale mineral potential modelling. The property was later enlarged by about one third.

Azimut signed an agreement with Aurizon Mines whereby Aurizon can acquire up to a 50% interest in Rex South by incurring $5.0 million in exploration work over 5 years and making cash payments.

Azimut and Aurizon discovered a major gold-silver-copper-tungsten mineralized zone during an initial exploration program at Rex South. Grab samples from the Augossan Zone (3.3 km by 50-200 m, open in all directions) were up to 23.3 g/t Au, 90.0 g/t Ag, 2.56% Cu and 0.93% W (tungsten).

During an initial exploration program at its wholly owned and operated Rex property, Azimut discovered major copper (gold, silver) mineralization over a largely outcropping zone several kilometres long and about 100 metres wide. Grab sample graded up to 11.3% Cu on the RBL Zone, and up to up to 4.4% Cu, 16.1 g/t Au and 196.0 g/t Ag on five other zones.

Azimut staked the 45-km-long Diana property, a large copper, cobalt and REE exploration target best defined by a strong, multi-element geochemical footprint in lake-bottom sediments.

Azimut signed an agreement for Diana whereby a private Ontario company can acquire up to a 50% interest by incurring $4.0 million in exploration work over 4 years and making cash payments and share issuances.

Azimut and Valencia Ventures signed an agreement whereby Valencia would take over the earlier agreement between Azimut and a private Ontario company for Diana, assuming all rights and obligations, to earn up to a 65% interest in the property.

James Bay gold

Azimut announced Everton had earned its 50% interest in the Opinaca A and B properties, and both companies later signed an agreement with Aurizon Mines whereby Aurizon can acquire up to a 60% interest in the properties by incurring $6.0 million in exploration work over 4 years and making cash payments and share issuances.

Azimut signed an agreement with Dynasty Gold Corporation for the Opinaca D property. Dynasty can acquire a 50% interest in the project by conducting $3.2 million in exploration work over a 4-year period and making cash payments and share issuances.

At Eleonore South, Azimut’s joint venture partners Les Mines Opinaca (Goldcorp) and Eastmain Resources began a $1.6 million (3,300-metre) drilling program to drill-test extensions of the JT Zone, reveal JT Zone ore-grade thicknesses, and test other priority targets.

At Wabamisk, Azimut and partner Goldcorp completed an 8-hole (2,000-m) drilling program with the best intercept returning 2.3 g/t Au over 4.3 m.

2009

Strong position in a challenging market

In light of the prevailing market conditions for most of 2009, Azimut significantly reduced overhead and project expenditures so the Company could move forward with exploration on key properties and continue to identify early-stage and major exploration targets, including a newly discovered world-class polymetallic target staked as the Rex property.

This strategy safeguarded value added to the Company’s projects and left it well positioned to capitalize on Quebec's outstanding business environment, the Company's distinctive exploration targeting methodology, and its strong exploration results for uranium and gold.

Maintaining top claim-holder position in Quebec

Azimut's 2009 portfolio included 21 exploration properties totalling 19,207 claims, representing approximately 8% of the mineral rights granted in Quebec, thereby maintaining its position as the #1 claim-holder in the province. The Company owned a 100% interest in all its properties, with the exception of Eleonore South (approx. 30%).

Exploration highlights

Nunavik copper-gold-REE

Azimut staked a major new property, Rex, to cover a 100-km-long copper and rare earth element (REE) exploration target. The recognition of one of the strongest and most extensive geochemical footprints for REE at the scale of both Quebec and Labrador was an outstanding example of the Company’s cutting-edge targeting methodology.

Rex was subsequently tripled in size to cover additional prospects (including historical gold-silver-copper prospects) that further confirmed the mineral endowment and strong exploration potential of the property.

James Bay gold

Goldcorp's program at Azimut’s Wabamisk property focused on 4 gold targets and 1 copper-zinc-silver target. A 2,000-m diamond drilling program was planned for 2010.

At Eleonore South, Azimut’s joint venture partners Les Mines Opinaca (Goldcorp) and Eastmain Resources funded and completed a 3,700-m drill program. The $1.6-million program drill-tested the JT gold zone and two other priority targets. Nine out of the 12 holes at JT intersected gold-bearing sedimentary rocks over wide intervals, along a one-kilometre-long corridor. The best result was 1.40 g/t Au over 10.0 m, including 9.22 g/t Au over 0.5 m.

Ungava Bay uranium

Azimut regained its 100% owned North Rae and Daniel Lake properties following the termination of its option agreements with NWT Uranium Corp. Azimut subsequently proceeded with a self-financed exploration program that produced positive results after channel sampling 6 of the 12 known surface uranium zones. Best results were up to 3.3% U₃O₈.

Azimut and Abitex reported grades up to 0.94% U₃O₈ on the Kangiq property. The exploration program also discovered the Kangiq extension of the Puqila Zone, which had been previously identified on the adjacent Daniel Lake property.

West and Central Nunavik uranium

Uranium and high-grade REE mineralization was discovered on the Kativik property, optioned to Nemaska Exploration. The best outcrop samples were 10.6% REE₂O₃, 0.77% Y₂O₃, 14.3% P₂O₅ and 0.12% U₃O₈ on one claim block, and 0.27% U₃O₈, 146.0 g/t Ag and 2.89% ZrO₂ on another.

Azimut and Rukwa Uranium discovered mineralization grading up to 1.21% U₃O₈ on the North and South Minto properties.

Azimut and Abitex announced the discovery of uranium mineralization grading up to 0.65% U₃O₈ at the Central Minto property.

Azimut and Abitex discovered mineralization grading more than 40% Cu and up to 0.67% U₃O₈ on the South Bienville property.

2008

Quebec’s top claim-holder

Despite the stock market downturn in 2008, Azimut remained one of the leading exploration companies in Quebec, with 18 distinct mineral exploration programs on its properties, including 16 partner-funded programs totalling $10 million.

It became the #1 claim-holder in Quebec when its portfolio grew to 48 uranium, gold and nickel properties representing 27,637 claims (13,330 km²), or approximately 10% of the mineral rights granted in the province .

Partnerships and investments

Azimut had 16 active option agreements in 2008 for an aggregate minimum work commitment of $57 million from its partners. These agreements covered 64% of the Company’s mineral claims.

Exploration highlights

Exploration work in 2008 produced 20,239 line-km of helicopter-borne geophysics, 1,027 lake-bottom sediment samples, and 1,603 rock samples during intensive surface prospecting and mapping. Among the exploration highlights:

James Bay gold

Azimut's partners conducted two drilling programs totalling 5,250 m on the Eleonore South and Opinaca A gold properties with encouraging results: 4.24 g/t Au over 1 m, and 0.22 g/t Au over 187 m, including 1.4 g/t over 12 m

Ungava Bay uranium

Azimut’s discoveries at North Rae and the mineralization identified by AREVA on their Cage property confirmed the district-scale uranium potential of the Ungava Bay region where Azimut continues to hold a commanding land position.

Azimut outlined a 6-km radioactive zone at its other Ungava Bay property, Daniel Lake, where prospecting in 2007 had uncovered a showing grading up to 0.65% U₃O₈.

New radiometric data collected by Azimut and its partner Majescor suggest additional mineralization may occur along strike of the 30-km prospective corridor on the South Rae property.

Azimut and NWT Uranium agreed to terminate their option agreements on the North Rae and Daniel Lake properties, allowing Azimut to accelerate exploration on these two uranium properties.

West and Central Nunavik uranium

Azimut and Majescor uncovered regional-scale uranium potential at the West Minto property with grades up to 0.90% U₃O₈.

Azimut and its partners identified major uranium targets on the North and South Minto properties optioned to Rukwa Uranium, the Central Minto property optioned to Abitex Resources, and the Hudson Bay property optioned to Silver Spruce.

2007

Becoming a mineral exploration leader in Quebec

By the end of 2007, Azimut's portfolio contained 5,093 claims for uranium, gold and nickel properties in Quebec. Twelve option agreements were signed, representing a minimum of $42 million in required expenditures (and $6 million in payments to Azimut) from its 12 partners over the next three to five years to earn property interests.

Two strategic agreements were signed, one regarding the mineral potential assessment of Ecuador with Channel Resources, and the other, the nickel potential of Quebec's geological Grenville Province with Kennecott Exploration Company (Rio Tinto Group).

Exploration highlights

Ungava Bay uranium
Extensive uranium mineralization was discovered on multiple large-scale targets in the Ungava Bay region of Quebec, revealing a potential new uranium district in a territory where Azimut holds a commanding land position.

Seven mineralized zones with grades up to 3.3% U₃O₈ and a cumulative length of 10 km were delineated on the North Rae property, optioned to NWT Uranium.

A 30-km prospective trend with grades up to 0.65% U₃O₈ was discovered on the South Rae property optioned to Majescor Resources.

An announcement released by AREVA Québec Inc., a wholly-owned subsidiary of the world's third largest uranium producer, stated it was highly encouraged by exploration results from its Cage property located near Azimut's Ungava properties.

North Shore uranium-REE

Many high-quality uranium targets were identified on 11 properties on the North Shore and Nunavik using the results of extensive helicopter-borne surveys.

Best grades for the North Havre property included 0.43% U₃O₈ and more than 4% rare earth elements, for up to 0.33% U₃O₈ for the Grenium project.

James Bay gold

Encouraging gold results of 1.0 to 37.8 g/t Au were recorded for a 600 x 300 m zone on the Eleonore South property (agreement with Eastmain Resources and Goldcorp), including channel samples with 1.49 g/t Au over 16 m and 5.33 g/t Au over 8 m.

Equally encouraging gold results, ranging from 1.0 to 36.0 g/t Au, were received for the 1.3-km long Charles Prospect on the Opinaca A property, optioned to Everton Resources.

2006

Portfolio and partnerships

In 2006, Azimut expanded its portfolio by acquiring a large land position for uranium exploration in Quebec. The Company also marked a new milestone when it signed its 12th partnership agreement and all existing Azimut partners extended their second-year options: a sign of increasing recognition of Azimut's ability to generate high-quality exploration targets.

Partnership highlights

Kennecott extended its strategic agreement regarding uranium exploration

A letter of agreement was signed with Northwestern Mineral Ventures (now NWT Uranium Corp.) for the North Rae uranium project in Northern Quebec.

An agreement was signed with Goldcorp and Eastmain for the Eleonore South gold property in the James Bay region.

Exploration highlights

Fifteen (15) exploration programs were conducted on Azimut's Quebec properties with $4.5 million in work commitments.

Azimut's partner Everton confirmed the 1.7-km long gold-bearing trend on the Opinaca project.

Azimut and Northwestern's initial discovery of 10 uranium showings revealed regional-scale uranium potential for the North Rae property in Ungava Bay.

2005

Growing number of partnerships and agreements

This year was one of new partnerships and exploration for Azimut's properties. Partnership agreements were completed for the Opinaca and James Bay projects with Eastmain Resources, Cambior and Placer Dome (now Goldcorp).

Gold exploration highlights

Six gold exploration programs were conducted on Azimut's properties in the James Bay region with a budget of $1.6 million. The work led to several discoveries, including:

A 1.7-km long gold-bearing trend on the Opinaca properties in the James Bay region by Azimut's partner Everton.

Gold targets on the Wabamisk property, also in the James Bay region, by Azimut's partner Placer Dome.

Several significant gold exploration targets on the Opinaca D property and what would later become the Eleonore South property by Azimut's partner Eastmain Resources.

2004

New partnerships and agreements

In Azimut's second year, the Company signed its first partnership and strategic agreements:

Two partnership agreements with Everton Resources for four of the six Opinaca projects, which Azimut had enlarged following the announcement of the Eleonore discovery.

A strategic agreement with Kennecott-Rio Tinto, covering 500,000 km² in Quebec, to generate gold and base metal targets.

2003

New beginnings, new vision

In 2003, Azimut Exploration was reactivated under the leadership of President and CEO Jean-Marc Lulin with a vision of becoming an industry leader in project generation through regional-scale mineral potential modelling. Notable achievements in this first year included:

The realization of Azimut’s first mineral potential modelling for gold, which covered 172,000 km² in the James Bay region of Quebec..

The staking of mineral properties in the immediate vicinity of the Eleonore property, which would soon become well-known for its Roberto gold deposit, thus validating Azimut's approach and garnering recognition from the industry as a generator of high-quality targets.