REX SOUTH

Copper, Gold, Silver, Tungsten

The 100% owned Rex South property, optioned to Aurizon Mines, is located approximately 145 km east of Hudson Bay and the community of Puvirnituq in Nunavik, northern Quebec. The property is more than 45 km long in a north-south direction and comprises 1,822 claims over a surface area of 794 km².

The most significant target area on the Rex South property, represented by the Augossan and Le Breuil trends, displays a b district-scale polymetallic footprint and will be drilled in 2011.

Partnership with Aurizon Mines

In May 2010, Azimut announced the signing of a letter of intent with Aurizon Mines Ltd regarding the Rex South property. Aurizon Mines can acquire an initial 50% interest in the project by performing $5.0 million in exploration work over a five (5)-year period, and an additional 15% interest upon delivery of a bankable feasibility study.

Aurizon Mines intends to accelerate the 2011 work program with a budget of $4.1 million.

Mineralized areas

Based on the 2010 summer exploration program, Azimut announced the discovery of a major gold-silver-copper-tungsten mineralized zone, the Augossan Zone, on the Rex South property. Twenty (20) other significant mineralized prospects have also been identified on the property.

The Augossan Zone occurs in an area of significant outcrop exposure and has been recognized over a strike length of 6 km and a width of 50 to 300 m. It remains open in all directions.

The Augossan Zone and the Le Breuil Trend together form a single 5 x 15 km ovoid-shaped target area characterized by b geochemical anomalies in lake-bottom sediments, notably for copper and rare earth elements, as well as superimposed anomalies of molybdenum, tungsten, gold, barium, zinc and lead.

Within this highly anomalous geochemical context, the main gold-silver-copper-tungsten mineralized zones—including the 6-km Augossan Zone and the 1.4-km Anorthosite 1&2 Zone—are associated with extensive magnetic anomalies. These anomalies have a combined length of about 28 km and represent considerable exploration potential.

To the east, the Larissa Trend is a 16-km-long target area marked by copper and molybdenum prospects and b lake-bottom geochemical anomalies, notably for copper, molybdenum, cobalt and rare earth elements.

Results: first discovery of significant tungsten grades in Nunavik

Grab samples from the property returned gold grades up to 23.3 g/t Au, silver up to 90.0 g/t Ag, copper up to 2.56% Cu and tungsten up to 4.62% W. Significant values in bismuth (up to 0.13% Bi), molybdenum (up to 0.35% Mo) and rubidium (up to 0.18% Rb) were also obtained.

This is the first time significant grades of tungsten have been found in Nunavik.

Geological setting and target type

Rex South is located in the Archean Minto Subprovince. The mineralized areas on the property—the Augossan and Le Breuil trends, and the Larissa, Kumo, Aura, Ferrus and Moly prospects—are considered porphyry-type targets associated with granitic intrusions and dykes and their surrounding host rocks. This type of deposit is of considerable economic importance worldwide and includes many examples of world-class mines.

The identification of porphyry-type mineralization is viewed as an exploration breakthrough for this large region of Northern Quebec. Field observations at Rex South this summer indicate a very large exploration target, corresponding to a typical target size for this deposit type.

Other target types considered for the property are sediment-hosted gold-copper and volcanogenic massive sulphides.

Upcoming Exploration Program

On the basis of results from a property-wide airborne geophysical survey (5,410 line-km), a detailed lake-bottom sediment geochemical survey (765 samples) and prospecting (2010 program totalling $1.6 million), Azimut and Aurizon have designed a comprehensive follow-up exploration program for 2011 that includes a 7,000-m drilling program.

Aurizon has a planned budget of $4.1 million for 2011. The drill program will test the discovery zone and surface sampling will be carried out over other copper-gold anomalies identified through geophysical and geochemical surveys. Azimut and Aurizon consider the Augossan Zone to be a very attractive exploration target.

Relevant Press Releases

February 22, 2011
Azimut further defines major Copper and Gold exploration targets at Rex South, Nunavik, Quebec

February 15, 2011
Azimut and Aurizon re-evaluate tungsten values on the Copper-Gold Augossan Zone at Rex South, Nunavik, Quebec

January 12, 2011
Azimut's partner Aurizon accelerates exploration at Rex South (Gold-Silver-Copper-Tungsten) in Nunavik, Quebec

December 20, 2010
Azimut reports major progress in Nunavik

November 08, 2010
Azimut and Aurizon discover major polymetallic porphyry-type mineralization (Gold-Silver-Copper-Tungsten) at Rex South, Nunavik, Quebec

October 07, 2010
Azimut and Aurizon complete comprehensive work program at Rex South, Nunavik, Quebec

July 07, 2010
Azimut and Aurizon begin $1.5-million exploration program at the Rex South Property (Gold-Copper-REE) in Nunavik, Quebec

May 26, 2010
Azimut and Aurizon sign a Letter of Intent for the Rex South Property (Gold-Copper-Rare Earth Elements), Nunavik, Quebec

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