Azimut Exploration Inc.

Rex South

Region

Nunavik

Size

53,700 Ha

Metals

Cu-Au-Ag-W-REE

Target Style

Intrusion-related polymetallic / IOCG systems

Stage

Drilling Stage - Priority Targets Identified

Operator

AZM

Ownership

100% AZM - Option to SOQUEM

2024 Planned Program

Data Processing, Prospecting

Introduction

The Rex South property is a copper-polymetallic project occupying the southern segment of the Rex Trend, a vast underexplored region characterized by a strong 300-km-long copper anomaly in lake-bottom sediments, coupled with a strong 100-km-long REE anomaly. Rex South is considered a district-scale polymetallic project for gold, copper, silver, tellurium, molybdenum and tungsten.

On May 15, 2019, Azimut announced that it had signed a strategic alliance agreement with SOQUEM for the Nunavik region. The Nunavik Alliance comprises two option phases representing a total investment of up to $40 million. Under the first option, SOQUEM has the option to earn an initial 50% interest in the Rex-Duquet, Rex South and Nantais properties by investing $16 million in exploration work over four (4) years, the first two (2) years being a firm commitment of $4 million each year. Under the second option, SOQUEM may earn an additional 10% interest in each designated property (for a total 60% interest in each such property) by investing $8 million per designated property over two (2) years and delivering a preliminary economic assessment. Azimut is the operator of the Nunavik Alliance.

Since the 1990s, the area has been the subject of mapping and prospecting work, as well as some local airborne and ground geophysics surveys. SOQUEM and its partners at the time also conducted several brief drilling programs on a few showings.

The Rex South component of the most recent exploration program (the SOQUEM-funded summer 2021 Nunavik Alliance program) consisted of diamond drilling (738 m in 5 holes), geophysics (IP and magnetics) and channel sampling (PR of September 15, 2021). The latest set of acquired data is being reviewed.

Azimut’s 2019 work program focused on the eastern claim block. A total of 320 grab samples were collected primarily from outcrops. A heliborne Mag-EM(HELITEM)-spectrometric survey (4,611.7 line-km) was flown over the property. The work led to the discovery of a new mineralized zone with grades up to 3.07% Cu, and the extension of previously known zones. The most important are described in the sections below (PRs of September 4 and November 25, 2019).

Overall, the Rex South property shows evidence for two types of district-scale mineralized systems:

Intrusion-related polymetallic system associated with an oval (5 km by 15 km) fluorite-topaz-bearing A-type intrusive complex (the Qalluviartuuq Intrusive Complex: “QIC”). This includes the Augossan, Anorthosite, Copperton, Dragon, Lebreuil and Boreal zones and the Pegor and Ferrus prospects. Considerable additional exploration potential exists along the 30-km contact between the QIC and the volcano-sedimentary host rocks, as well as within the intrusion itself. The Aura-Pegor and Lebreuil zones may represent a less eroded part of the system (possible roof zones) along the extensions of the trend. The QIC mineralized system has several features in common with the Breves deposit in Brazil (see PR of April 4, 2012).
IOCG mineralization associated with brittle structures and copper-dominant values (Jemima Zone, Sombrero Prospect, Impact Prospect). Mineralization is accompanied by magnetite, hematite and pervasive potassic alteration.

Mineralized zones

Augossan Zone
The Augossan Zone represents a large polymetallic envelope (Au, Ag, Cu, W, Sn, Te, Bi, Rb, Mo) about 8 km long by 100 to 350 m wide at the contact between the QIC and volcano-sedimentary rocks. The zone remains open in all directions, notably toward the intrusion. Grab samples returned grades of up to 47.2 g/t Au, 90.0 g/t Ag, 2.56% Cu, 60.8 g/t Te, 4.62% W, 7.53% Sn, 0.36% Mo, 0.77% Bi, and 0.25% Rb in grab samples. Channel sampling yielded 7.53% Sn, 0.72% W and 0.14% Cu over 2.7 m. RC drilling highlights include: 0.14% W over 15.24 m, 0.12% W and 0.35% Cu over 7.62 m; 1.28 g/t Au, 8.41 g/t Ag and 0.12% Cu over 6.1 m; 1.10 g/t Au and 2.60 g/t Ag over 9.14 m. Augossan represents the first reported occurrence of significant tungsten grades in the Nunavik region.

Copperton Zone
The Copperton Zone, 3.5 km long by 20 to 100 m wide, is hosted in a variably sheared, steeply dipping feldspathic intrusion and amphibolites and gneissic metasediments. Mineralization is disseminated to semi-massive chalcopyrite, pyrite and pyrrhotite. The best grades were 9.56 g/t Au, 82.7 g/t Ag, 9.56% Cu, 38.4 g/t Te and 0.23% W in various grab samples.

Dragon North Zone
The Dragon North target zone, 450 m long by 90 m wide, is hosted in foliated mafic and felsic volcanics striking NW and dipping to the NE. Mineralization is mainly chalcopyrite accompanied by lesser pyrite and magnetite. The best grab samples are 4.05% Cu, 0.6% Mo and 2.78% Cu, 0.13% Mo. Alteration is mainly silicification.

Dragon Zone
The Dragon Zone, roughly 2 km in strike length, is hosted in felsic orthogneiss. Mineralization occurs as chalcopyrite in quartz veins and veinlets associated with tourmaline. Alteration is marked by epidote and hematite. The best grades from grab samples are 3.67% Cu, 11.2 g/t Au and 48.5 g/t Te.

Anorthosite Zone
A few reconnaissance holes and the prospecting data for this gold-copper-tungsten zone have outlined a preliminary envelope 4 km long by 200 m wide, with Au, Ag, Cu, W and Te mineralization.

Aura–Pegor Zone
The Aura–Pegor Zone, 2 km long, is characterized by disseminated pyrite and strong alteration, including tourmaline in veinlets or stockworks accompanied by silica and albite. Grab sample grades range from 0.5 g/t Au to 11.75 g/t Au, with anomalous values of other elements up to 0.37% Cu, 0.06% W, 0.14% Bi and 34 g/t Te.

Jemima Zone
The Jemima Zone, 2 km long by 30 to 100 m wide, is characterized by disseminated to semi-massive chalcopyrite and bornite associated with hematite-magnetite in veins, veinlets or breccia cement, accompanied by strong pervasive potassic alteration, silica, chlorite and epidote. Grab samples assayed from 0.5% to 2.86% Cu, with up to 0.17% Mo and 0.422 g/t Re.

The Rex South property is located in the Minto Subprovince, more specifically in the Qalluviartuuq domain. This area is composed of plutonic units grouped into various felsic to ultramafic magmatic suites or complexes in addition to volcano-sedimentary rocks. The project focuses on the Qalluviartuuq Intrusive Complex, a fluorite-topaz granite intrusion. It is crossed by the Allemand-Tasiat Zone, a structural corridor recognized by the Ministry of Energy and Natural Resources (“MERN”) as a deep crustal structure with diamond potential.

The property is part of the Rex Trend, which is defined by a strong 300-km copper anomaly in lake-bottom sediments associated with a strong 100-km rare earth anomaly. This information and the results of the various exploration programs carried out by Azimut since 2010 confirm the property’s potential for polymetallic, IOCG, VMS and shear (Cu-Au) systems.

November 23, 2022

Azimut to Present at the Quebec Mines + Énergie Conference on the Rex and James Bay Nickel Projects