Company profile
Azimut Exploration Inc. is a Canadian mineral exploration company trading on Toronto's TSX Venture Exchange. Its objective is to discover major ore deposits using an innovative targeting methodology combined with considerable exploration know-how.
A UNIQUE STRATEGY
Azimut's strategy is to drastically reduce the technical and financial risks associated with exploration by generating quality targets and developing partnerships with other mining companies at an early stage. This approach focuses on two key aspects:
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Mineral potential modeling is performed in a rigorous and systematic manner using an exclusive methodology for processing geoscientific data. This approach is employed at the scale of vast regions the size of geological provinces or subprovinces, large territories, or even countries.
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Targets generated by this process are offered to potential partners who may acquire an interest in the project by performing exploration work. The large number of active properties resulting from these partnerships further reduces the exploration risk.
AN EXPLORATION LEADER IN QUEBEC
Azimut's portfolio includes 50 exploration properties in Quebec for uranium, gold and nickel. These properties represent some 27,000 claims (13,100 km
2), or about 10% of the active mineral claims in the province. Quebec is known around the world for its exceptional mineral potential and is recognized as one of the most attractive mining jurisdictions.
The Company's 20 option agreements signed with 12 partners represent a potential cumulative investment of $65 million in exploration work and $7 million in payments. Partners can generally acquire a 50% interest in the properties, but may increase their interest by submitting a bankable feasibility study. Azimut retains royalties on any property that reaches the production stage.
FROM CONCEPTUAL TARGETING TO RECOGNIZING DISTRICTS
Since Azimut's reactivation in 2003, two strategic actions have had a major impact on the Company's growth:
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For gold, Azimut's mineral potential modeling over 172,000 km2 of land in the James Bay region allowed the Company to recognize the strong gold potential of the Opinaca area back in 2003. It was then that Azimut began building an important land position adjacent to the future site of the Eleonore gold deposit, almost nine months before its discovery was even announced. The five option agreements for these properties led to encouraging results that validate the initial modeling. Exploration is still underway on the properties.
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For uranium, modeling that covered 1,082,000 km2 of land in Quebec and Labrador led to the recognition of 3 target-regions in Quebec that have seen little to no exploration. Each of these regions is broadly comparable to the Central Mineral Belt in Labrador where resources of more than 50,000 t U3O8 have been discovered. Azimut now holds a dominant land position for uranium in Quebec, with about 19,000 claims divided among 17 properties. A total of 15 agreements were made with 9 partners. The results from these properties validate the initial modeling. In the Ungava Bay region - an area largely controlled by Azimut and its partners - results so far indicate the presence of a new uranium district.
CREDIBILITY AND A RIGOUROUS APPROACH
Azimut is led by a team with considerable international experience in the mining industry. In just five years, the Company's rigorous and disciplined approach helped establish Azimut as a leader among Quebec's leading mineral exploration companies. From 2003 to 2008, Azimut's market capitalization grew from $500,000 to $70 million with only $3.7 million in financings. The Company has 16.8 million shares outstanding (19 million fully diluted), no debt, and $2.0 million in cash and long-term investments. In 2008, Azimut expects to receive $2.0 million in cash and share compensation from its partners according to the terms of existing agreements.
GROWTH OUTLOOK
Azimut intends to continue evaluating various territories, in Canada and elsewhere, with the aim of generating new quality projects and developing new partnership agreements. The objective is to continue building a strong property portfolio. By reducing technical and financial risks at the initial stage of each project, Azimut is well-positioned to benefit from any discovery or production on its properties.
