JAMES BAY GOLD

Strategic land holdings in an emerging gold district

Azimut began staking gold properties in November 2003 based on the targeting results of its mineral potential modelling over 172,000 km² of land in the James Bay region. Nine months after Azimut acquired its initial gold properties, Virginia Mines announced the discovery of the Eleonore gold deposit, triggering a staking rush in the James Bay region.

In 2007, an article published by the Ministry of Natural Resources and Wildlife of Quebec claimed that exploration in the Eastmain Belt had been so successful, it constituted one of the most promising targets for mineral exploration in Québec. The article highlighted Azimut’s gold properties as examples of exciting new projects in the region.

Azimut currently has 5 gold properties in two main areas in the James Bay region: the Eleonore gold deposit area near the Opinaca Reservoir, about 320 km from Matagami or Chibougamau, and the Clearwater gold deposit area near the Eastmain River, about 290 km north of Chibougamau.

Eleonore gold deposit area

In 2004, Virginia Mines Inc discovered and delineated the major Roberto (Eleonore) gold deposit on their Eleonore property near the Opinaca Reservoir.

The deposit was originally outlined using surface drill holes over a lateral distance of roughly 1,900 m and to a depth of more than 1,100 m. Goldcorp Inc has since acquired the Eleonore project and undertaken a feasibility study. In its latest estimate, Goldcorp declared a resource of 3.15 million ounces (measured and indicated) at a grade of 11.92 g/t Au, and 6.25 million ounces (inferred) at a grade of 12.93 g/t Au.

Azimut acquired claim blocks both before and after the Eleonore discovery was announced, and as a result gained one of the leading property positions in the Opinaca area around the deposit. The geological setting of Azimut’s Opinaca properties is comparable to that of the Eleonore property.

Infrastructure in the surrounding region includes a major north-south highway 75 km to the west, a 65-km gravel road from the highway to the Opinaca Reservoir, several hydro-electric facilities and associated power lines, and a number of Cree communities.

Azimut’s Opinaca claim blocks are divided into four properties, for a total of 1,119 claims covering 584 km²:

Opinaca A: 50% Azimut, 50% Everton Resources, optioned to Aurizon Mines

Opinaca B: 50% Azimut, 50% Everton Resources, optioned to Aurizon Mines

Opinaca D: 100% Azimut, optioned to Dynasty Gold Corp

Eleonore South: 3-way joint venture between Azimut (30%), Opinaca (35%) and Eastmain (35%)

The Opinaca A and Eleonore South property boundaries are less than 5 km from the Roberto (Eleonore) gold deposit. The Opinaca B and D are 10-15 km from the deposit.

Clearwater gold deposit area

About 80 km south of the Eleonore deposit is the Eau Claire (Clearwater) gold deposit, discovered in the 1980s and now held by Eastmain Resources Inc. Eastmain Resources has outlined an indicated and inferred resource of more than 4 million tonnes containing approximately one million ounces of gold.

Azimut has one gold property in the Clearwater area: the 100% owned Wabamisk property, optioned to Goldcorp. The property comprises 755 claims for a total area of 399.5 km². Work has been on-going since the original option agreement in 2005.

A gravel road and power line just south of the Clearwater project connects a nearby Hydro-Québec power-generating facility to the community of Nemiscau and the city of Chibougamau, both of which have airports.