DIANA

Copper, Cobalt, Rare Earths

Azimut acquired the Diana property by map-staking in 2009, following its polymetallic mineral potential modelling covering more than a million square kilometres of land in Quebec and Labrador.

Diana comprises six separate claim blocks totalling 600 claims over a surface area of 272 km². It is defined by a strong, 45-km-long, multi-element geochemical footprint in lake-bottom sediments and is considered to be a major exploration project for copper, cobalt and REE.

The property is well positioned, just 40 km northwest of the town of Kuujjuaq and about 50 km southwest of the Ungava Bay shoreline.

Partnership

In May 2010, Azimut announced that its partner 2227352 Ontario Inc. (a private Ontario company) had reached an agreement with Valencia Ventures Inc regarding the Diana property. Valencia Ventures shall have the right to acquire an interest of up to 65% in the project by assuming all of the rights and obligations currently held by the private Ontario company and issuing a total of five million (5,000,000) common shares to the private Ontario company over a period of two (2) years, subject to regulatory approval.

Valencia Ventures can acquire an initial 50% interest in the project by performing $4.0 million in exploration work over a four (4)-year period, and an additional 15% interest upon delivery of a bankable feasibility study.

Geochemical footprint, mineralization and geological setting

The Diana property covers an area with strong lake-bottom sediment values reaching 559 ppm in copper, 191 ppm in cobalt, and 129 ppm in yttrium, as well as anomalous values in lanthanum (260 ppm), cerium (612 ppm), samarium (68 ppm) and europium (11 ppm). The area shows only minor uranium values (up to 57 ppm) and no thorium.

Two previously known mineralized showings are present in the westernmost part of the property: Anderson Lake (0.62% Cu and 460 ppb Au) and Gelinas Lake (830 ppb Pd and 550 ppb Pt).

Magnetic and gravity data indicate deep-seated structures and late major faults. This area is part of the geological Rae Province. The geology is characterized by reworked Archean gneissic core and Paleoproterozoic paragneisses.

Exploration programs

Past exploration in this area of Nunavik is very limited.

During the summer of 2010, work at Diana included airborne magnetic and spectrometric surveys, detailed lake-bottom sediment geochemistry, and intensive prospecting. The minimum work expenditure commitment is $700,000. Results are pending.

Relevant Press Releases

May 25, 2010
Azimut: Valencia Ventures options the Diana property (Copper-Cobalt-Rare Earth Elements) in Nunavik, Quebec

February 23, 2010
Azimut signs a Letter of Intent for the Diana Property (Copper-Cobalt-Rare Earth Elements), Nunavik, Quebec

February 18, 2010
Azimut stakes a large Copper-Cobalt-Rare Earth Element exploration target in Nunavik, Quebec