Azimut Exploration Inc. is a Canadian mineral exploration company trading on Toronto's TSX Venture Exchange.
The Company specializes in project generation supported by exploration expertise and partnership development. Targets are generated through the advanced processing of large geoscientific databases (the “Big Data” approach).
Azimut holds a major gold and base metal portfolio in the mining-friendly province of Québec, Canada.
Rigorous Financial Discipline
Azimut's strategy allows it to be essentially self-financing, having received about $1 million per year in cash and share considerations since 2004, which covers most of the internal expenditures.
The Company maintains a rigorous financial discipline to limit shareholder dilution, ending 2016 with $2.8 million in working capital, no debt and 45.4 million shares issued (53.3 million fully diluted) of which 33.3% are held by insiders and institutional shareholders.
Big Data Approach as a Competitive Edge
Azimut strongly believes that its big data approach provides a competitive edge in exploration. The Company's experience in Quebec can be applied to other jurisdictions wherever the right database exists (see press release of November 19, 2015).
The Company's strategy is to drastically reduce the technical and financial risks associated with exploration by focusing on two key aspects:
- Generate quality targets: Predictive modelling using large databases of geoscientific data is performed in a rigorous and systematic manner to generate new targets. The approach can be applied to regions the size of geological provinces, large geographic territories or entire countries. The main regions covered thus far have been Quebec (1,542,000 km2), Newfoundland and Labrador (405,000 km2), Ecuador (248,000 km2) and parts of Burkina Faso and Uganda.
- Develop partnerships at an early stage: The highest quality targets are staked as projects that are offered to potential partners who may acquire an interest by performing exploration work and making cash payments. This joint venture approach ensures a large number of active properties.
Property Portfolio in Mining-Friendly Quebec
Azimut’s gold and base metal portfolio is concentrated in the new Eleonore gold camp in Central Quebec, and in the vast Nunavik region of Northern Quebec where the Government is committed to infrastructure and mining development. Quebec is renowned for its exceptional mineral potential, and is recognized as one of the world’s most attractive mining jurisdictions.
Since 2004, Azimut has concluded 30 partnership agreements that led to more than $63 million in field work in Quebec (>$52 million funded by Azimut's partners), including three strategic agreements with Rio Tinto and six option agreements with Goldcorp, Hecla Mining and IAMGOLD.
Validation of Breakthrough Modelling
Azimut backs up its expertise in digital processing with extensive field validation programs. Linking predictive modelling to field discoveries is crucial in proving up this technology, and is considered one of the Company’s strengths. Data valorization represents a competitive advantage for mining companies and governments that possess large but neglected digital datasets.
Exploration work by Azimut and its partners has led to the discovery of more than 400 new prospects in Québec. The most notable examples of field validation were the early recognition of the gold potential of the James Bay region (now the Eleonore Gold Camp), and the discovery of two new mineral provinces in Northern Quebec (see map):
- Early recognition of new gold camp: Azimut's mineral potential modelling over 172,000 km2 of land in the James Bay region allowed the Company to recognize the strong gold potential of the Opinaca Reservoir area back in 2003, allowing it to build an important land position around the future site of the Éléonore gold mine almost nine months before the deposit’s discovery was announced.
- Discovery of polymetallic Rex Trend: Azimut's predictive modelling for rare earths in 2009 revealed one of the strongest and most extensive geochemical footprints at the scale of Quebec and Labrador. The Company secured a commanding land position over the 100-km rare earths anomaly and a coincident 300-km copper anomaly. Management considers the Rex Trend to be a new mineral province with a potential for hosting large-scale deposits, including iron oxide copper-gold (IOCG), intrusion-related polymetallic and sediment-hosted gold.
- Discovery of new uranium district: Azimut’s uranium modelling for Quebec and Labrador identified regional-scale targets that have seen little to no exploration, each with a footprint broadly comparable to the Central Mineral Belt in Labrador where resources of more than 50,000 tonnes U3O8 have been discovered. The Ungava Bay region in Northern Quebec was the focus of the Company’s work, leading to the discovery of roughly 200 uranium showings where none had been documented.