PROPERTIES

ELMER

Geological context

The Elmer Property is located in the central region of the Superior Province within the La Grande Subprovince. The faulted boundary between the La Grande and Opinaca-Nemiscau subprovinces is 4 km south of the main claim block, and passes through the smaller secondary block. The property is underlain by the Lower Eastmain greenstone belt, composed of a volcano-sedimentary sequence up to 15 km thick.

Regional metamorphism reached greenschist to amphibolite facies.

At the property scale, four distinct geological formations compose a volcanic sequence of mafic to felsic tuffs, rhyolite/rhyodacite and basalt, intruded by gabbro and tonalite. All units on the main block are affected by two major shear zones: a Central Fault and a Southern Fault. Secondary structures occur between these major shears, particularly in the property centre, where they are visible on the Patwon outcrop. In the vicinity of these faults, carbonate-chlorite-sericite alteration accompanies pyrite mineralization associated with quartz veins.

Metamorphism on the property primarily reflects greenschist conditions, locally reaching upper amphibolite facies.

Gold is found mainly in volcanic units dominated by felsic tuffs, rhyolite/rhyodacite and basalt, and, to a lesser extent, in felsic intrusives. It is associated with quartz veins and their altered and pyritized wall rocks. Pyrite is the most common sulphide in mineralized areas. Along vein selvages, it is present in cubic form; inside the veins, pyrite is disseminated, semi-massive or in trace quantities. Traces of chalcopyrite and galena have also been identified inside some quartz veins. Native gold has been observed in multiple drill holes on the Patwon discovery.

Exploration highlights

Exploration activities have taken place on the Elmer Property and its vicinity since the 1980s after the discovery of high-grade Au-Ag-Cu-Zn showings.  Most historical prospects are located within an ENE-WSW corridor 12 kilometres long by up to 3 kilometres wide.

On January 14, 2020, Azimut announced a substantial drilling discovery, which it named the Patwon Zone. Several drilling programs quickly followed, including the most recent phase currently underway (15,000 m in 60 holes; PR of April 14, 2021). The discovery was made during the Company’s maiden 2019 diamond drilling program (996 m of oriented core in 7 holes) and included frequent high-grade intervals and visible gold in all seven holes. The highlight was a 102.0 m interval grading 3.12 g/t Au, including 10.1 g/t Au over 20.5 m (hole ELM19-002).

Drilling focused on a high-priority target area in the Elmer Trend, namely the Patwon Prospect, an outcropping area measuring 150 by 100 metres.

By late fall 2020, Azimut had drilled 55 more holes (10,515 m) for a total of 62 diamond drill holes on the property (11,511 m), tracing the Patwon Zone over a strike length of 500 metres, a depth of 250 metres and a true width of up to 80 metres. It has a high probability of growth along strike and at depth. Notably, every hole drilled within this envelope intersected gold mineralization. It is considered an intrusion-hosted orogenic gold-bearing system. (PR of November 20, 2020).

Drilling was supported by detailed induced polarization (“IP”) (51.9 line-km) and magnetic (“Mag”) (56.6 line-km) surveying over the discovery area and its vicinity. A convincing relationship between IP-chargeability and gold mineralization is illustrated by an intersection grading 1.93 g/t Au over 82.0 m, including 3.46 g/t Au over 44.1 m (hole ELM 19-007).

A 100 line-kilometre ground IP survey was subsequently completed to strengthen the definition of new targets. A new 15,000-metre drilling program was then undertaken to expand the Patwon discovery on strike and at depth and to test 10 new nearby targets (PR of January 19, 2021).

Drilling results were reported in the PRs of January 14, July 27, September 15, and November 30, 2020. Surface prospecting and channel sampling results were reported in the PRs of November 20, 2018, and July 16, September 19, October 22 and November 28, 2019. Till sampling results were disclosed in the PR of January 19, 2021. IP results were disclosed in the PR of March 18, 2021.

Till sampling survey

A high-density till sampling survey over the Patwon Zone and its vicinity included a best result of 881 gold grains in one sample. Nine (9) distinct gold-bearing clusters were identified within a high-priority exploration corridor 8 kilometres long by 3 kilometres wide.

Of the 192 till samples, 98 returned gold grains: 22 with very pristine grains, 31 pristine, 25 sub-pristine, 17 sub-rounded and 3 rounded; 80% of the samples contained very pristine to sub-pristine gold grains. Gold grain counts have been normalized to 5 kilograms of sieved material.

Six (6) clusters correlate spatially with high-grade gold prospects, including one directly over the Patwon discovery that appears to be the direct footprint of this significant mineralized zone in glacial sediments. Using the Patwon footprint for reference, the other significant gold-bearing clusters suggest the presence of multiple mineralized zones within the priority corridor.

Swamps limited the sampling program in certain parts of the corridor. Several gold-bearing clusters remain open along strike due to these sampling constraints.

Salient findings:

• Discovery of a consistent steeply dipping gold-bearing zone traced over a strike length of 500 metres to a depth of 250 metres and up to 80 metres true width.

• A mineralized zone, open in all directions, showing excellent geometrical continuity, so far defined by 38 contiguous holes drilled systematically on 50-metre centres.

• A preliminary geometry that might support the concept of an initial open pit mining operation. The consistent high-grade component in most holes suggests the potential for an underground mining component as well. This type of deposit is known for potential kilometre-scale vertical extensions.

• Recent prospecting (grab sampling) uncovered strongly mineralized outcrops along strike or subparallel to the Patwon Zone, within a priority corridor 8 kilometres long by 3.0 kilometres wide:

  • 58.20 g/t Au and 18.55 g/t Au (2.6 km NW of Patwon)

  • 18.25 g/t Au and 17.15 g/t Au (1.5 km NE of Patwon)

  • 8.60 g/t Au and 6.73 g/t Au (about 3.5 km SW of Patwon)

• The vicinity of the Patwon Zone is considered largely underexplored with a strong discovery potential. Key favourable criteria include the presence of high-grade mineralization hosted in a thick belt of felsic intrusives and volcanics, close to a regional shear zone.

• Several characteristics of the mineralization at Patwon can be compared to those of the Goldex deposit (Agnico Eagle), a multi-million-ounce gold mine in the world-class Val-d’Or mining camp in the Abitibi region of Quebec. Goldex has a strike length of about 450 metres at the surface and is known to a depth of 1.8 kilometres.

Main features of the Patwon Zone:

• Gold mineralization appears to be related to three quartz-vein networks:

  • shear veins striking NE-SW subparallel to the schistosity and dipping 65° to 80° to the north;

  • subvertical extension (Riedel-type) veins striking NW-SE; and

  • subhorizontal veins.

• Zones of high-density veining may form stockwork zones, locally appearing as hydrothermal breccias that include mineralized wall rocks.

• Pyrite is the dominant sulphide and occurs as fine to coarse disseminations, cross-cutting centimetric stringers or semi-massive to massive lenses. Disseminated pyrite and pyrite stringers are associated with quartz veining and their wall rocks. No arsenic-bearing minerals have been observed.

• Native gold grains are frequent, generally associated with quartz veins and various forms of pyrite mineralization. The gold grains are isolated or form clusters.

• Gold-bearing facies are accompanied by pervasive silica, chlorite, sericite and carbonate alteration and by tourmaline seams in quartz veins or tourmaline crystals associated with coarse pyrite and pyrite stringers.

• Mineralization appears to be mainly related to a felsic intrusion and felsic volcanics, including ash and clastic tuffs, close to a lithological contact with a thick gabbro unit in the footwall.

• The NW-SE trending mineralized envelope dips 75° to the north on average and is subparallel to the schistosity. It appears structurally controlled in the vicinity of a major shear zone.

• The surface projection and the longitudinal section of the mineralized zone indicate that Patwon is open along strike and at depth. On the western side, the mineralized zone may continue north of the ELM20-037 and -059 hole collars. The “grade x thickness” longitudinal section, established on estimated true widths, indicates a robust central zone. Significant additional drilling will be required to define the full extent, shape and grade of the mineralized body.

• The intensity of quartz veining in the felsic intrusion and felsic volcanics may be partly controlled by the rheologic contrast with the surrounding mafic host rocks.

• Patwon is considered as an intrusion-hosted orogenic gold-bearing system, a type classically associated with a significant depth extent (kilometre-scale) and related to extensive deformation corridors in greenstone belts.

Other Surface exploration highlights

In addition to the high-grade samples collected from Patwon, the Company obtained significant grades from other areas of the property:

Isolated occurrences:

58.20 g/t Au and 18.55 g/t Au (2.6 km NW of Patwon)

18.25 g/t Au and 17.15 g/t Au (1.5 km NE of Patwon)

8.60 g/t Au and 6.73 g/t Au (about 3.5 km SW of Patwon)

Gabbro Zone: hematized and boudinaged quartz veins with traces of pyrite hosted in sheared gabbro; 11 samples including 4 samples with grades above 1.0 g/t Au:

7.98 g/t Au, 18.43 g/t Ag over 0.55 m (channel)

77.8 g/t Au, 167.0 g/t Ag (grab)

60.4 g/t Au, 122.0 g/t Ag (grab)

6.11 g/t Au, 9.49 g/t Ag (grab)

Gold Zone: quartz-ankerite veins with pyrite, pyrrhotite and chalcopyrite hosted in sericitized mafic metavolcanics; 7 samples including 2 with grades above 1.0 g/t Au:

8.56 g/t Au (grab)

1.28 g/t Au, 0.158% Cu (grab)

Possible analog and potential of the Elmer Trend

Comparing already known deposits with the features of a new discovery is a key step in supporting the exploration hypothesis and envisioning the upside potential of the discovery, even if each deposit is ultimately different. Key features of the Goldex deposit (Agnico Eagle Ltd.) are presented for comparison with Patwon. Goldex is a multi-million-ounce gold mine located on the west side of Val-d’Or in the Abitibi region of Quebec. The steeply dipping mineralized body has a horizontal length of about 450 metres and is known down to 1.8 kilometres.

The deposit is principally hosted by a large table-shaped felsic intrusion (a quartz-diorite body) surrounded by a sequence of intermediated, mafic and ultramafic volcanic rocks. The orebody is defined by the intensity of stockwork veins and gold grades rather than by individual veins. Most of the gold occurs as microscopic particles associated with pyrite, while the rest occurs as coarse native gold grains. Several zones contain gold-bearing quartz-tourmaline-pyrite veins and veinlets.

The mineral reserve and resource statement as of December 31, 2020, comprises proven and probable reserves of 1.1 million ounces of gold (22.1 Mt at 1.57 g/t Au), measured and indicated resources of 1.7 million ounces (31.6 Mt at 1.66 g/t Au) and inferred resources of 1.2 million ounces (24.8 Mt at 1.5 g/t Au). (Agnico Eagle website).

The Elmer Property is considered a highly prospective asset with significant exploration upside.

MUNISCHIWAN

Geological context

The geology of the Munischiwan Property consists of a folded and faulted volcano-sedimentary belt sandwiched between foliated plutonic rocks of tonalitic to granodioritic composition. Important northeast- and northwest-trending faults transect the property.  Gravity and magnetism data suggest these faults are the crustal manifestation of trans-lithospheric suture zones. The volcano-sedimentary belt displays multiple folding events and was cut by intrusive rocks of different compositions. The metamorphic grade is from amphibolite to granulite facies, and the presence of chlorite spatially associated with the mineral occurrences suggests a possible retro-metamorphic event.

Exploration highlights

 Since acquiring the property, Azimut has conducted several exploration programs involving grab sampling, channel sampling, airborne geophysics (magnetics and VTEM^TM Plus) and ground geophysics (induced polarization and magnetics).

A SOQUEM-funded, multi-property exploration program in 2018 included prospecting and stripping on Munischiwan. The work led to the discovery of an outcropping Au-Cu-Ag zone (PR of October 25, 2018) now known as the InSight Prospect, a 600-metre by 150-metre envelope based on outcropping mineralization, with grades up to 100.5 Au, 435 g/t Ag, 105 g/t Te and 1.67% Cu. The zone dips about 30° east, is open in all directions, and is coincident with a 300-metre by 1,000-metre IP anomaly striking NNW-SSE. Mineralization consists of disseminated chalcopyrite and quartz veins or veinlets hosted in foliated metasediments affected by strong biotite alteration. An additional gold showing 600 metres to the south (2.42 g/t Au) may represent the extension of the prospect.

Grab samples from outcrops returned the following grades (PRs of October 25 and December 5, 2018):

• 100.5 g/t Au, 151.0 g/t Ag, 156.0 g/t Te, 0.14% Cu

• 4.89 g/t Au, 196.0 g/t Ag, 0.30% Cu

• 2.28 g/t Au, 4.65 g/t Ag, 0.29% Cu

• 1.92 g/t Au, 38.4 g/t Ag, 14.3 g/t Te, 0.63% Cu

• 1.86 g/t Au, 5.48 g/t Ag, 2.99 g/t Te

• 1.64 g/t Au, 29.8 g/t Ag, 0.84% Cu

• 1.35 g/t Au, 3.46 g/t Ag, 0.28% Cu

• 11.0 g/t Au, 435.0 g/t Ag, 0.38% Cu

• 5.89 g/t Au, 13.5 g/t Ag, 0.05% Cu

• 4.48 g/t Au, 55.2 g/t Ag, 1.67% Cu

• 4.14 g/t Au, 37.4 g/t Ag, 1.40% Cu

• 3.34 g/t Au, 5.84 g/t Ag, 0.18% Cu

• 3.02 g/t Au, 35.3 g/t Ag, 1.29% Cu

• 2.24 g/t Au, 28.6 g/t Ag, 0.76% Cu

• 2.01 g/t Au, 32.1 g/t Ag, 0.36% Cu

• 1.95 g/t Au, 29.6 g/t Ag, 1.26% Cu

• 1.53 g/t Au, 67.2 g/t Ag, 0.90% Cu

In 2019, Azimut and SOQUEM completed a 70-line-kilometre Mag-IP ground survey to further assess the InSight Prospect (PR of April 30, 2019), and commenced detailed surface sampling on the prospect to prepare a maiden diamond drilling program (PR of June 27, 2019). The survey grid is about 3.1 kilometres by 2 kilometres, with 100-metre line spacing. Multiple IP anomalies, subparallel to and/or on strike with the InSight Prospect, constitute highly prospective targets within a trend at least 3 kilometres long by 1 kilometre wide. Target definition is strengthened by the correlation between IP anomalies and heliborne magnetic data.

Previous exploration by the Company consisted of an 838 line-kilometre heliborne Mag-VTEM Plus survey flown over the property in spring 2017 with a line spacing of 100 metres (PR of November 2, 2017), followed by a reconnaissance program later that year (249 grabs). This work led to the discovery of several showings, including the Soga Prospect (up to 2.53% Cu, 9.0 g/t Ag in grabs).

PILIPAS

Geological context

The Pilipas Property is located in the La Grande Subprovince of the Archean Superior Province. It is underlain by volcano-sedimentary rocks of the Lower Eastmain greenstone belt: conglomerate, sandstone, basalts and felsic to intermediate tuffs. These lithologies are intruded by tonalite and granodiorite. Two regional NW-SE dextral faults transect the southwestern and northeastern parts of the property. Metamorphism reached greenschist to upper amphibolite facies.

The main targets are intrusion-related systems, VMS, iron formation-hosted mineralization and gold-bearing shear zones.

Exploration highlights

The Pilipas Property is in structural continuity with the InSight Prospect on the Munischiwan Property (up to 100.5 g/t Au, 435.0 g/t Ag, 156.0 g/t Te and 1.67% Cu). The property was covered by a regional mapping program carried out by the Ministry of Energy and Natural Resources (“MERN”) in 1978. Limited exploration work by previous explorers included:

• A geophysical (VTEM) survey in 2006 covering most of the property (630 line-km at a nominal line spacing of 100 m and 50 line-km at 1000-m spacing) and a magnetic survey in 2013 (2514 line-km with 25-m spacing and 137 line-km with 500-m spacing).

• A regional lake-bottom sediment survey (13 samples) and limited rock sampling (32 grab samples).

• A soil sampling survey in 2005 covering most of the property (Eastmain Resources: 1045 samples analyzed for 35 elements).

WAPATIK

Geological context

Wapatik is in the Lower Eastmain greenstone belt, part of the La Grande Subprovince in the Archean Superior Province. The most prospective unit appears to be the Kauputauch Formation, which hosts the Patwon Prospect on the Elmer Property. This east-west trending formation contains conductors associated with highly magnetic iron formations in its western part. An interpreted regional-scale linear fault passes through the Elmer and Wapatik properties. Metamorphism reached greenschist to upper amphibolite facies. 

Exploration highlights

This part of the Kauputauch Formation is underexplored. Only a few prospecting programs have been carried out by previous explorers (3 grab samples and 11 lake-bottom sediment samples are documented). However, regional geologic mapping and lake-bottom sediment surveys have included the property. The most notable grades are 0.11 % Cu, 3 g/t Ag and 0.069 g/t Au in a grab sample carrying pyrite and chalcopyrite from the 99-KC-4146 showing, which is hosted in intermediate volcanic rocks, and 4.1 g/t Ag in a grab sample from the tonalite of the Takuch pluton. Two gold showings, Grid-711-R (179 g/t Au, 28 g/t Au over 0.2 m) and Eastmain-3 (5.44 g/t Au), are located 7 km and 8.2 km, respectively, from the western property limits.

CORVET

Geological context

The Corvet Property is in the geological Superior Province, straddling the contact between the La Grande Subprovince to the north and the Opinaca Subprovince to the south.

The majority of the property is underlain by La Grande rocks belonging to one of two formations:

• The Marbot Formation, composed of paragneiss derived from feldspathic wackes. Iron formations and numerous tonalitic dykes are also present.

• The Corvette Formation, composed of amphibolite derived from intermediate to mafic volcanics.

The southernmost part of the property is occupied by Opinaca rocks belonging to the Laguiche Complex, consisting of migmatized biotite-garnet paragneiss and frequent granite injections.

Exploration highlights

A reconnaissance program in 2017 produced 53 grab samples. The results included anomalous values in gold (0.111 g/t Au), copper (0.12% Cu) and arsenic (668 ppm As) within a target area measuring 7 kilometres by 1.5 kilometres. In 2018, Azimut carried out reconnaissance and prospecting (123 grabs) as part of a SOQUEM-funded multi-property exploration program (PR of June 6, 2018) before SOQUEM relinquished its rights to the property.

DALMAS

Geological context

The Dalmas Property is located in the La Grande Subprovince, less than 10 km from the contact with the Ashuanipi Subprovince. Both subprovinces belong to the Archean Superior Province.

The majority of the property is underlain by the Dalmas Formation. It is composed of paragneiss, biotite wacke, amphibolites derived from intermediate to mafic volcanics, oxide facies banded iron formation, and ultramafic metavolcanics. The Dalmas Formation is older than the Dutreuil Suite, which is present near the northern edge of the property and includes meta-peridotites and meta-pyroxenites with tremolite and serpentine. The intermediate to felsic rocks of the Polaris Batholith surround these units. The entire sequence is intruded by a north-south Paleoproterozoic mafic dyke less than 10 m thick.

The property is located within a highly magnetic E-W domain, likely corresponding to the ultramafic rocks of the Dutreuil Suite, crossed by regional N-S magnetic axes representing Proterozoic dykes. However, the geophysical data do not reflect the structural geology, which appears complex.

Exploration highlights

A SOQUEM-funded, multi-property assessment program in 2018 included an LBS survey on Dalmas and an initial prospecting phase that identified a 3-kilometre trend of anomalous gold, arsenic and copper in grab samples (PR of May 31, 2018). The Azimut-funded 2019 program included prospecting and till sampling.

Azimut has collected >250 rock samples and >80 till samples. The results yielded:

• Gold anomalies:

  • 6 grab samples grading more than 0.1 g/t Au, including 2 samples with 0.36 and 0.423 g/t Au (erratic boulders)

  • 1 sample of till with a count of 9 gold grains

  • 1 sample of till grading 0.374 g/t Au

• Copper anomalies:

  • 5 grab samples between 657 ppm and 1910 ppm Cu (outcrop), three of which exceed 1500 ppm Cu

KAANAAYAA

Geological context

Kaanaayaa is located in the Superior Province, more precisely in the southern part of the La Grande Subprovince. On the property, volcano-sedimentary sequences are bounded by the Archean Langelier Complex to the north and the Neoarchean Semonville Pluton suite to the south. Portions of the Vieux Comptoir granite, located southeast of the property, are found within the sequence. The volcano-sedimentary belts consist of:

• The Rouget Formation: a greenstone belt occupying most of the northern part of the property, extending to the east and west. The rocks are generally mafic and amphibolitized. A series of intrusions along the belt varies in composition from felsic to ultramafic. Sedimentary sequences often contain thin iron formations.

• The Marbot Formation: a sigmoidal metasedimentary belt in the centre of the property composed primarily of paragneiss derived from wackes and less metamorphosed rocks (conglomerates and wackes).

Exploration highlights

Historical exploration on the project is limited. An adjacent property, jointly held by Osisko Exploration James Bay and Newmont, hosts several significant gold prospects. These prospects, about 5 kilometres southwest of Kaanaayaa, include the Marco Prospect (1.07 g/t Au over 27.0 m and 10.1 g/t Au over 5.2 m) and the Contact West Zone (11.82 g/t Au over 4.7 m).

Regional lake-bottom sediment samples returned values up to 84.3 ppm Cu, 0.36 ppm Ag, 1.51 ppm Bi, 15.2 ppm Mo, 75.8 ppm Ni and 51.9 ppm Co. This footprint is comparable to the mineralized Copperfield Trend on the Pikwa Property, located 15 km northwest of Kaanaayaa.

KUKAMAS

Geological context

The property is located in the geological Superior Province, more precisely in the La Grande Subprovince. The property is underlain by three main groups of rocks:

• Yasinski Group: composed of iron formations, clastic sedimentary rocks, and mafic, intermediate and felsic volcanic rocks, the rocks of this group cover most of the property and host several copper and silver prospects.

• Duncan plutons: composed of tonalite, diorite, monzonorite and monzonite, these intrusives of various sizes crop out along the edge of the Yasinski Group volcanics.

• Ekomiak Group: composed of clastic rocks unconformably overlying the Yasinski Group, this sequence is defined by a polygenic conglomerate with tonalite clasts, a magnetite banded iron formation, chert, and felspathic or lithic wacke.

Regional metamorphism attained greenschist facies.

Exploration highlights

The Kukamas project includes one of the strongest geochemical footprints for copper-gold systems in the James Bay region, characterized by strong regional lake-bottom sediment signatures that include 232.8 ppm Cu, 0.39 ppm Ag, 65.7 ppm As, 1.17 ppm Sb.

Numerous prospects sit on or adjacent to Kukamas. Grab samples collected on the property graded up to 3.46 g/t Au and 20.7 % Cu.

Twenty-seven holes have been drilled on Kukamas, and roughly 360 grab samples have been collected. Most of this work took place between 1995 and 2013. The grab sampling average for the property is approximately 2 samples per square kilometre.

PIKWA

Geological context

The Pikwa Property is located on the southern edge of the La Grande Subprovince, about 10 km from its contact with the Opinaca Subprovince. It contains an east-west volcano-sedimentary sequence that is bounded by tonalite to the north and south. The different sets of faults show dominantly thrusting movement. Granitic intrusions cut the volcano-sedimentary units. Metamorphism is at lower amphibolite facies.

Exploration highlights

Azimut conducted lake-bottom sediments (“LBS”) sampling and prospecting campaigns on the property in 2017 and 2018 as part of a multi-property SOQUEM-funded exploration program, followed in 2019 by a self-funded prospecting, soil geochemistry and ground geophysics program (PRs of July 11, 2017; June 6, November 6 and November 27, 2018; March 20, April 15, October 16, October 23 and December 9, 2019; and April 27, 2020). On October 6, 2020, Azimut and SOQUEM announced that a drilling program had commenced on a 10-kilometre-long copper-gold target (Copperfield East).

Exploration highlights include the following spatially correlated features:

• A continuous IP corridor 10 kilometres long and up to 400 metres wide, characterized by moderate to strong chargeability anomalies generally well-correlated with magnetic highs.

• Two electromagnetic (“EM”) conductors that correlate well with IP anomalies in the western part of the target (VTEM survey).

• A strong polymetallic (copper-gold-silver-molybdenum) soil anomaly.

  • Mineralized outcrops and an extensive mineralized boulder field with grades reaching: o up to 9.8% Cu, 13.45 g/t Au, 37.6 g/t Ag, and 1% Mo (from outcrops); and

  • up to 20.1% Cu, 2.99 g/t Au, 58 g/t Ag and 0.24% Mo (from boulders).

The IP anomalies cut across the entire survey grid and correlate well with the other features. Most IP-chargeable anomalies correspond to resistivity highs or are located along the contacts of more resistive units (probably more silica-rich). The anomalies are subcropping, continuous at depth, and generally have moderate to steep dips to the south.

Copperfield Trend

The main area of interest, the Copperfield Trend is a 20-kilometre-long copper-gold exploration target comprising East and West segments, each 10 kilometres long. The results acquired to date point to a major copper-gold system centred on the 10-kilometre-long Copperfield East target. It is interpreted as a porphyry system emplaced along the margins of an intrusion and subsequently sheared during regional-scale tectonic events (PR of October 6, 2020).

To date, the mineralization is characterized as follows:

• The main host rock is biotite-rich gneiss (interpreted as altered metadiorite or granodiorite).

• The dominant copper mineral is chalcopyrite occurring as disseminations or semi-massive veins and veinlets accompanied by frequent bornite and chalcocite and lesser amounts of malachite and occasional azurite.

• Other sulphides include molybdenite and, less frequently, pyrite and pyrrhotite.

• Host rocks show varying degrees of alteration composed of biotite and potassium feldspar (potassic alteration), sericite, epidote, chlorite and magnetite.

• Mineralization generally occurs along foliation planes, often associated with quartz veinlets.

• Foliation strikes ENE-WSW and dips on average 50° to 60° to the south.

Copperfield East is defined as the spatial association of:

• A strong regional-scale copper LBS anomaly centred over the property. The footprint also includes polymetallic components (molybdenum, silver, bismuth, tungsten).

• A strong copper soil anomaly with a polymetallic footprint comparable to the LBS anomaly defined above. The anomaly forms a well-delineated target 5.5 kilometres long by 500 metres wide (locally up to 750 m) within the contours of the LBS anomaly. Peak values are 294 ppm for copper, 0.161 ppm for gold, 0.584 ppm for silver and 42.1 ppm for molybdenum.

• A 10-kilometre-long corridor of IP-chargeable anomalies of moderate to strong amplitudes superimposed on the copper soil anomaly. Most IP-chargeable anomalies correspond to resistivity highs or occur along the contacts of more resistive units (probably more silica-rich units). The anomalies are subcropping, continuous at depth, and generally dip moderately to steeply to the south.

• Two 500-metre-long VTEM conductors that correlate with IP anomalies. In this context, the VTEM anomalies represent attractive targets for massive to semi-massive sulphide mineralization despite the weak soil geochemistry footprint due to thick glacial sediment cover.

• A significant mineralized boulder field of mostly angular to slightly rounded boulders that follows the long axis of the soil anomaly. The best grades from 141 sampled boulders were 20.1% Cu, 2.99 g/t Au, 58 g/t Ag and 0.24% Mo.

• Several high-grade mineralized outcrops within the soil anomaly in the eastern part of the target where glacial sediment cover is thinnest. The best grades are 9.81% Cu, 13.45 g/t Au and 37.6 g/t Ag (grab A0366271).

Collectively, the IP anomalies, copper-in-soil footprint and mineralized boulder field are best explained by a major Cu-Au-Ag-Mo mineralized system in the bedrock of the Property (already partly identified in mineralized outcrops).

Copperfield West is the westward strike extension of Copperfield East, and its interpretation is supported by strong copper anomalies in LBS and the same magnetic pattern (linear magnetic high). Little exploration work has been conducted to date in this part of the trend.

Prospecting results

A total of 268 grabs have been collected from the Copperfield Trend, comprising 141 from boulders and 127 from outcrops. Outcrop exposure on the main soil anomaly is generally poor.

The key results were presented in the PR of December 9, 2019:

Copper: 80 samples returned grades above 0.2% Cu, including 17 samples from 0.5% Cu to 1.0% Cu, and 40 samples above 1.0% Cu up to 20.1% Cu.

Gold: 41 samples returned grades above 0.2 g/t Au, including 12 samples from 0.5 g/t Au to 1.0 g/t Au, and 11 samples above 1.0 g/t Au up to 13.45 g/t Au.

Silver: 40 samples returned grades above 5.0 g/t Ag, including 15 samples from 10 g/t Ag to 20.0 g/t Ag, and 16 samples above 20 g/t Ag up to 58 g/t Ag.

Molybdenum: 18 samples returned grades above 0.05% Mo, including 12 samples higher than 0.1% Mo up to 1.0% Mo.

Of the 268 grab samples, the last batch of 169 from the 2019 program yielded excellent results.

Comparison with the Aitik Porphyry Deposit in Sweden

As reported in the Company’s press release of October 16, 2019, several features of the Copperfield Trend suggest it may represent an Archean analogue to Sweden’s giant Paleoproterozoic Aitik porphyry deposit (Cu-Au-Ag-Mo). In production since 1968, Boliden’s Aitik mine is the largest open pit operation in northern Europe.

The relevant geological features of the Aitik deposit are the following:

• The geological context is characterized by foliated and metamorphosed dioritic and volcano-sedimentary rocks of the Fennoscandian Shield.

• Host rocks are biotite gneisses, quartz-muscovite-(sericite) schists and diorite.

• The main sulphide minerals are disseminated chalcopyrite, pyrite and pyrrhotite and trace amounts of molybdenite, local bornite and chalcocite.

• Alteration is mostly characterized by biotite, sericite and potassic alteration; epidote-calcite-chlorite-quartz assemblages occur mainly along fault zones; quartz stockworks are present along the margins of the intrusion.

• Foliation is well developed in the host rocks, dipping about 50° to the west. Mineralization is mainly structurally controlled, and the entire rock package has been metamorphosed to amphibolite grade.

The Aitik mine provides valuable parameters regarding geometry, size and grades that could optimize the exploration strategy at Copperfield:

• The main open pit (Aitik) measures 4 kilometres by 1.1 kilometre at the surface and reaches 450 metres deep. A second pit (Salmijärvi) measures 0.9 by 0.6 kilometre and reaches 165 metres deep. The deposits average about 500 metres wide.

• In 2018, mineral reserves (proven and probable) were estimated at 1.148 billion tonnes at 0.22% Cu, 0.14 g/t Au and 1.2 g/t Ag. Total historical ore production from 1968 to 2018 is 821 million tonnes at 0.29% Cu, 0.17 g/t Au and 1.8 g/t Ag (Boliden Summary Report 2018).

• A cut-off grade of 0.06% Cu is used for reserves and resources in the Aitik pit. The historical stripping ratio (waste/ore) is 0.95.

PONTOIS

Geological context

The Pontois Property is located in the La Grande Subprovince, roughly 15-20 km from its contact with the Minto Subprovince. The La Grande Subprovince comprises volcano-plutonic assemblages and a tonalitic basement.  The property covers a sheared greenstone belt that has seen little previous exploration, along with portions of the surrounding intrusions. The geology correlates with a strong As-Sb-W anomaly in lake-bottom sediments. The main lithologies in the area belong to the Keyano Formation (paragneiss, iron formations, marbles, diatexites and basaltic amphibolites) interfolded with La Grande tonalite, bounded to the southwest by the Nochet granodiorite and to the east by the Polaris monzodiorite. The property is at the junction between two regional breaks, the E-W Taiga Fault and the SSE-NNW South Pontois Fault, both of which appear to follow the margins of the greenstone assemblage. The magnetic gradient reveals a pattern of polyphase kilometre-scale folds. Metamorphism varies from amphibolite to granulite facies, with a significant volume of diatexite present in the property area.

Exploration highlights

Some historical regional geophysical and reconnaissance surveys have included the Pontois Property and identified areas of interest:

• The Lake Greece iron showing hosted in an iron formation.

• Several U, Th and Fe showings: in particular, a uranium showing hosted in fault breccia of the La Grande pluton, accompanied by hydrothermal alteration, hematite and silica.

In 2018, Azimut conducted a prospecting program on the Pontois Property as part of a multi-property SOQUEM-funded exploration program. The main result was the discovery of the Black Hole Prospect. The best gold results were 6.02 g/t Au, 2.56 g/t Au and 0.90 g/t Au in grab samples from outcrops (PR of Nov. 8, 2018). Other values included silver (up to 2.61 g/t Ag) and tellurium (up to 23.7 g/t Te). Significant copper values (up to 0.18% Cu) were obtained 2 kilometres from the prospect, along the same geological trend. Gold is hosted in mafic metavolcanics and intrusive dykes carrying quartz veins, near a sheared contact with metasediments. The intrusive facies contains disseminated fine pyrite. The 40 by 20-metre prospect area is open along strike in both directions. This was followed by the 2019 exploration program, funded and operated by Azimut, which consisted of prospecting and a detailed LBS survey. Previous work by Azimut included prospecting in 2017 (225 grabs; PR of June 6, 2018) and an LBS survey (237 samples).

EOLEONORE SOUTH

Exploration highlights

The property has been the subject of three major joint exploration programs from 2016 to 2019, totalling $8.4 million.

The Fall 2018–Winter 2019 program comprised the following work (PR of October 1, 2019):

• 2,000 metres of mechanized trenching to expose gold mineralization and alteration in the tonalite intrusion and along the intrusion-metasediment contact (1,250 m of trenching), and the southwestern extensions of the high-grade Moni Prospect (750 m of trenching).
• A 2-month helicopter-supported mapping, prospecting and soil geochemistry program to develop additional targets in the southern and central parts of the property, as well as other targets in metavolcanics in the western part.
• 7,365 metres of diamond drilling in 26 holes focusing on the Cheechoo tonalite over a 1.3-kilometre strike length, testing the southern and western extensions of gold mineralization along the Contact and Moni trends.

Since 2016, exploration work has included 76 diamond drill holes for 15,134 metres, along with detailed prospecting, stripping, channel sampling, LBS geochemistry and a high-definition heliborne magnetic survey (980 line-km at 25-m line spacing) (PRs of June 16, 2016; August 9, 2017; February 27, July 18 and September 11, 2018).

Gold mineralization

Since 2016, surface exploration work and diamond drilling have focused on a large tonalite-hosted gold-bearing system in the eastern part of the property. The gold corridor is at least 2 kilometres long by 600 to 700 metres wide within the Cheechoo tonalite intrusion and up to its contact with the surrounding metasedimentary rock. Mineralization extends to the northeast towards a discovery by Sirios Resources Ltd (“Sirios”) on its adjacent Cheechoo Property and remains open to the southwest. The corridor is characterized by consistent anomalous gold values (>0.5 g/t Au), several networks of quartz veins and veinlets, strong sodic alteration, very low sulphide concentrations (<0.5%) and frequent native gold grains. Two higher-grade trends within the mineralized envelope (the Contact and Moni trends) are described in detail below.

The JT Prospect to the west is hosted in a metasedimentary sequence near the intrusive-metasedimentary contact. Previous drill results indicate that the Cheechoo tonalite is also mineralized in this area. This suggests a potential extension of the Contact Trend to form a semi-ring shape approximately 5.5 kilometres long.

Moni Trend

This 1.8-kilometre-long NE-striking trend is about 500 metres from the metasedimentary contact and includes the Moni, 101 and Trench prospects. It is characterized by a system of pegmatitic quartz-feldspar veins and quartz-dominant veins with interstitial feldspar, carrying native gold and very low sulphide contents. The vein systems within the trend remain open at depth and laterally.

Moni Prospect

This outcropping high-grade quartzofeldspathic vein system is hosted in strongly altered tonalite and has been drill-tested to a vertical depth of 40 metres along a 60-metre strike length.

Mineralized facies vary laterally from grey or black quartz veins to a quartzofeldspathic pegmatite carrying traces to 1-2% of sulphide minerals (mostly arsenopyrite with lesser pyrite, pyrrhotite) and small amounts of tourmaline and scheelite. Alteration minerals are silica, albite, biotite and chlorite. To date, 345 native gold grains have been observed in 42 of the 82 channel samples and more than 20 drill holes. The tonalite is pervasively altered (albite, silica) and displays a network of regularly spaced quartz veins and veinlets of variable widths, with feldspathic selvages (sheeted veins). The system is oriented NE-SW, shows evidence of folding, and is roughly parallel to the trend of steeply dipping foliation.

Closely spaced drill holes on the Moni Prospect reveal a pegmatitic vein with good geometric continuity. Gold values generally reflect the presence of native gold. The information from these holes suggests that other Moni-type gold-bearing veins may show similar continuity.

101 Prospect

This prospect is located 400 metres to the southwest of the Moni Prospect. Mineralization is related to a network of quartz-feldspar pegmatitic veins and veinlets carrying native gold in strongly altered tonalite, striking NE-SW with a subvertical dip. Previous outcrop sampling returned up to 101 g/t Au. In 2017, a prospecting program yielded high-grade grab samples from the 101 Prospect (PR of November 16, 2017), including four (4) with grades above 15 g/t Au (15.2 to 67.2 g/t Au). Grab samples are selective by nature and unlikely to represent average grades.

Trench Prospect

The Trench Prospect is 650 metres southwest of the Moni Prospect (250 m southwest of the 101 Prospect). The very high-grade samples (up to 1,500 g/t Au) were collected from angular boulders of quartz-feldspar-(biotite) pegmatitic veins with native gold. These samples may correspond to a larger dismantled boulder. Mineralized tonalite boulders with arsenopyrite are also found nearby. Previous prospecting returned 247 g/t Au from a boulder in the same area, which is marked by a strong gold-arsenic soil anomaly. It is believed these mineralized boulders come from a nearby source. In 2017, a prospecting program yielded high-grade grab samples from the Trench Prospect (PR of November 16, 2017), with four (4) grading above 800 g/t Au (833 to 1,500 g/t Au).

Contact Trend

This mineralized and altered envelope of variable thickness in tonalite ranges from several tens of metres to over 100 metres thick in core length, with continuous intervals of anomalous gold values. Drilling confirms the presence of consistent gold mineralization along a zone at least 1.4 kilometres long and 150 to 300 metres wide, adjacent to the contact with the surrounding metasedimentary rocks. Results show reasonably good geometric continuity to the gold mineralization and zones remain open down dip and along strike. Mineralization is characterized by clusters of quartz-albite-biotite stockworks accompanied by arsenopyrite, pyrrhotite, pyrite, scheelite and native gold.

The intrusive shows evidence of foliation and folding, and the injections of mafic dykes (described as lamprophyres) are also deformed.

JT Prospect

This gold prospect is located 2.5 to 3 kilometres to the west of the Contact and Moni trends. The sedimentary sequences in this area display comparable characteristics with the stratigraphy hosting the Eleonore gold mine located 12 kilometres to the northwest. At the JT Prospect, gold was identified in the metasedimentary rocks above the tonalite-metasedimentary contact. Results from some historical drill holes indicate that the Cheechoo tonalite is also mineralized in this area (including 2.15 g/t Au over 14.0 m in hole ES08-12). Gold intersections in tonalite near the intrusive-metasedimentary contact may be an extension of the Contact Trend to form a semi-ring shape approximately 5.5 kilometres long.

2018-2019 Drilling Results

The most recent drilling program tested the southern and western extensions of the Contact and Moni trends. Highlights include 7.44 g/t Au over 9.7 m, incl. 63.3 g/t Au over 0.8 m (hole ES19-156, Contact Trend) and 1.02 g/t Au over 92.0 m, incl. 7.36 g/t Au over 8.2 m (hole ES19-157, Contact Trend). The descriptions below and the results in Table 6 were taken from the PR of October 1, 2019.

Drilling along the Contact Trend

Nine (9) holes (ES19-150 to ES19-152 and ES19-154 to ES19-159) tested the Contact Trend to establish continuity.

Hole ES19-156 intersected a section grading 7.44 g/t Au over 9.7 m. Gold mineralization in this interval is distributed in altered tonalite (12.2 g/t Au from 140.3 m to 141.1 m), lamprophyre (63.2 g/t Au from 144.7 m to 145.5 m) and pegmatite (3.86 g/t Au from 141.1 m to 142 m).

Hole ES19-157 returned 1.02 g/t Au over 92.0 m in altered tonalite cut by several units of altered pegmatite and lamprophyre. This mineralized section includes an interval of 7.36 g/t Au over 8.2 m related to deformed and altered lamprophyre dykes with quartz veining. Similar intersections of mineralized and altered tonalite intruded by pegmatites have been reported in most of the holes drilled in this sector.

Drilling along the Central Tonalite (between the Moni and Contact trends)

Nine (9) holes (ES18-134, ES18-135, ES18-143, ES18-145 to ES19-149 and ES19-155) and one (1) extension (ES19-052 EXT) tested the relatively undrilled section of the Cheechoo tonalite between the Moni and Contact trends.

Holes ES18-143 and ES19-147 were drilled along a section northwest of hole ES18-128 to test the extension of the Contact Trend to the north. Each hole intersected a high-grade interval at depth: 8.12 g/t Au over 1.5 m (ES18-143) and 16.7 g/t Au over 1.5 m (ES19-147).

Drilling along the Western Tonalite Contact and the JT Prospect

Three (3) holes (ES18-136, ES19-153 and ES19-154) tested the western extension of the Contact Trend approximately 500 metres west of hole ES17-90 (0.5 g/t Au over 123.5 m). The holes encountered moderately altered tonalite with locally strong foliation but did not intersect significant anomalous gold mineralization.

Holes ES18-139 to ES18-142 investigated the JT Prospect about 3 kilometres west of the Contact and Moni trends. These holes tested the Cheechoo tonalite by drilling through the JT meta-sedimentary package in the vicinity of historical hole ES08-12 (2.15 g/t Au over 14 m). The best intercept is 28.3 g/t Au over 0.5 m (ES18-140) related to a narrow sulphide vein hosted in meta-greywacke close to a pegmatitic contact.

Exploration model

Several key factors point toward a reduced intrusion-related deposit for the gold-bearing system on the Eleonore South Property (PR of July 18, 2018). The Fort Knox mine in Alaska (Kinross Gold Corporation) and the Côté Lake Project in Ontario (IAMGOLD) are useful examples of large-scale intrusion-related gold deposits. In this scenario, assessing the geometry of the intrusion and the surrounding metasedimentary rock is critical, given that the tops of the intrusions are typically viewed as highly prospective.

The 2.61 Ga Cheechoo tonalite, late in the geological sequence, is interpreted to be a mushroom-shaped intrusion with a roughly tabular top 450 to 500 metres thick, with a shallow to moderate southward dip along its southern contact and a moderate westward dip along its western contact (JT Prospect area). The current interpretation suggests the intrusion has not been overturned. The Contact Trend is interpreted as a decompression stockwork zone close to the top of the intrusion.

Resource estimate on adjacent property

The continuation of the Eleonore South mineralized system onto the adjacent Cheechoo Property is strongly supported by the results released by Sirios. Some of the holes drilled by Sirios were collared as close as 12 metres from Azimut’s property boundary. In a PR dated November 17, 2020, Sirios announced an in-pit inferred mineral resource estimate of 93.0 million tonnes at an average grade of 0.65 g/t Au for 1.96 million ounces of gold using a 0.25 g/t Au cut-off.

Details of the Eleonore South footprint and targeting approach

A rigorous interpretation and comparison of the geochemical footprints for Eleonore South and Newmont’s Eleonore gold mine were discussed in the PR of March 30, 2016. Extensive, consistent, strong and coincident gold and arsenic anomalies (higher than 90th percentile) were outlined in B-horizon soil samples on Eleonore South. In most cases, gold mineralization observed in rock samples, trenches and drill core is spatially related to these soil anomalies (e.g., JT Prospect). Newmont’s property and gold mine show comparable features.

The example of the Eleonore mine footprint suggests little to no displacement of the gold-arsenic soil anomalies from their bedrock sources. Consequently, the areas with unexplored strong geochemical anomalies are considered quality targets for potential near-surface discoveries.

OPINACA A

Exploration highlights

A reassessment of the property’s gold potential using previous exploration work and new regional information (PR of July 6, 2017) concluded that two major gold prospects (Charles and Inex) might be linked by a 20-kilometre prospective trend defined by geophysical, geological and geochemical parameters, including till anomalies. This underexplored sector is characterized by the following: a) continuity of the magnetic signature between the two prospects; b) arsenic, antimony and bismuth anomalies in LBS; c) gold anomalies in glacial deposits; and d) local evidence of folding that may act as traps for gold mineralization.

The previous exploration program was a combined $850,000 program on the Opinaca A and B properties in 2014, funded and operated by Hecla. The program, which followed up on ground geophysics, prospecting and diamond drilling from 2007-2008, included a $205,000 program on Opinaca A (2,317 m in 9 holes, prospecting, channelling and till sampling), that extended the Charles Prospect and improved target definition in the area. Salient results are summarized in the descriptions below (PRs of August 9 and December 7, 2007, September 2, 2008, and March 19, 2015).

The Charles Prospect is a 1-kilometre-long gold prospect hosted in biotite-rich paragneiss with quartz veins and up to 15% sulphides (pyrite, pyrrhotite). Several high-grade gold grab samples were obtained (up to 42.34 g/t Au). The best drill hole intersection was 2.7 g/t Au over 2.0 m (hole AC-07-01).

The Inex Prospect is a 1.7-kilometre-long gold prospect associated with a garnet-biotite-amphibole-silica-rich rock hosted in paragneiss. Gold is free or associated with pyrite and pyrrhotite. The best grab samples returned up to 50.9 g/t Au, and the best drill hole returned 9.03 g/t Au over 0.6 m (hole OP-06-02).

The Smiley Prospect (4.24 g/t Au over 1.0 m in hole OS-08-04-A), located 800 metres north of the boundary with the Eleonore mine property, is positioned along an interpreted 2.5-kilometre-long north-trending prospective target supported by magnetic data. It is characterized by a major gold anomaly in till coupled with a gold-arsenic anomaly in soil and by locally intense alteration in greywackes and paragneiss.

OPINACA B

In March 2010, Everton earned its 50% interest in the Opinaca B Property. In September 2010, Hecla signed a three-party agreement with Azimut and Everton on the Opinaca A and B properties (PR of September 16, 2010). The parties amended the agreement on November 14, 2014 to exclude the Opinaca A claims. According to the terms of the amended agreement, Hecla has the option to acquire a 50% interest in the Opinaca B Property by making cumulative cash payments of $580,000 and incurring a total of $6 million in exploration work over four (4) years (extended by an additional two (2) years in an amendment on November 15, 2013). Hecla may earn an additional interest of 10%, for a total interest of 60%, by making cumulative cash payments of $300,000 and incurring at least $3 million in exploration expenditures over three (3) years from the election date, and by delivering an independent pre-feasibility study on or before the fourth anniversary. The Company has received cash payments of $290,000 on the first option. Hecla did not elect to proceed with the second option. Azimut owns 25% interest in the property.

Exploration programs

In 2017 and 2018, Hecla-funded exploration included a 2,945-metre (12-hole) diamond drilling program on multiple gold prospects (Dominic: 4 holes; Fishhook: 4 holes; D8: 2 holes; Eric: 1 hole; and Claude: 1 hole), a heliborne magnetic survey of 1,495 line-kilometres, a soil geochemical survey yielding 483 samples, and ground Mag and EM surveys (PRs of June 19 and November 9, 2017).

In 2015 and 2016, Hecla-funded exploration included prospecting (1,021 rock or float grab samples; 96 soil samples), mechanized stripping and trenching in six areas, and channel sampling (153 samples in 2015 and 202.2 m in 2016) (PRs of November 25, 2015 and January 23, 2017).

In 2012, fieldwork with a former partner led to the discovery of the D8, Eric and Penelope prospects. The program comprised 622 line-kilometres of magnetic-EM surveys, 684 soil samples, 243 rock grab samples, 290 channel samples from 258.35 metres of channels, and 93 till samples. Earlier exploration work in 2007 and 2008 by partner Everton included IP and magnetic ground surveys, drilling and prospecting at Claude and Dominic, and diamond drilling at Dominic (PRs of August 9 and December 7, 2007, and September 2, 2008).

Mineralization and exploration highlights

The most significant results were from the Dominic Prospect, which corresponds to a folded epidote-amphibole-quartz-feldspar vein hosted in metasediments close to a felsic intrusion. Starting in mineralization, hole OP-17-51 intersected 0.61 g/t Au over 30.7 m in a chloritic breccia, including two higher grade intervals: 2.38 g/t Au over 2.0 m and 3.21 g/t Au over 1.7 m.

A previous hole yielded 0.6 g/t Au over 1.2 m. Several grab samples from metasedimentary outcrops assayed above 0.1 g/t Au, including a sample of pyritized, silicified and chloritized rock with quartz and pegmatite veins grading 6.1 g/t Au, 4.5 g/t Au and 1.7 g/t Au, and two samples carrying sulphides and/or magnetite grading 1.4 g/t Au and 1.1 g/t Au. Several channel samples returned values above 0.1 g/t Au, including 1.8 g/t Au over 0.75 m and 1.2 g/t Au over 1.0 m.

The Fishhook Prospect is a magnetic anomaly related to an iron-rich sedimentary unit. Drill targets correspond to possible alteration zones and faulting. Hole OP-17-49 returned 1.06 g/t Au over 1.5 m in a fault zone.

The D8 Prospect is characterized by a 20-metre-wide sheared and altered arsenopyrite-tourmaline-rich shear zone in metasediments (0.55 g/t Au over 4.0 m in a trench), amphibolite-hosted quartz veins (channel sample of 2.3 g/t Au over 1.0 m), and a package of IP anomalies roughly 150 to 200 metres wide. A grab sample from a boulder of chloritized wacke with quartz-feldspar-tourmaline veinlets yielded 3.0 g/t Au.

Mineralization at the Claude Prospect is associated with quartz-tourmaline veins and veinlets. Drilling yielded an intersection of 0.22 g/t Au over 187 m (including 1.0 g/t Au over 21.5 m), grab samples returned 5.8 g/t Au and 4.3 g/t Au, and a channel graded 2.4 g/t Au over 0.5 m.

Mineralization at the Eric Prospect is related to calc-silicate (altered) sediments and arsenopyrite-tourmaline-bearing pegmatites within a kilometre-scale arsenic-gold soil geochemistry target. Eight (8) grab samples assayed above 0.1 g/t Au, including two above 0.5 g/t Au. Only marginal values were obtained in a single hole in 2017.

The Penelope Prospect yielded 10 grab samples with grades above 0.1 g/t Au, including four with values above 0.5 g/t Au up to 4.26 g/t Au. Mineralization is associated with quartz-tourmaline veins and veinlets.

OPINACA D

Exploration highlights

Exploration on the Opinaca D Property began in 2005 and has included reconnaissance geological mapping and prospecting over a number of exploration targets defined by VTEM and/or soil geochemistry anomalies. Soil geochemistry surveys confirmed a broad trend of strong gold, arsenic and antimony anomalies, with respective maximum values of 7.32 g/t Au, 447 ppm As and 2.3 ppm Sb. The anomalies have not yet been tested by drilling. In 2018, 339 grab samples were collected during a prospecting program. Several drill targets have been defined on the project.

GALINÉE

Geological context

The Galinée Property is located in the La Grande Subprovince about 15 km north of the Quentin shear zone, which marks the boundary with the Opinaca Subprovince. The rocks that underlie the property are mostly felsic intrusives – tonalite, granite and granodiorite. Other lithologies include the biotite-rich Salomon River paragneiss in the western part of the property and Trieste amphibolite along with basalts and gabbros in a shear zone. Metamorphism is at upper amphibolite to granulite facies.

Exploration highlights

Previous work in the area was carried out between 1995 and 2017, including several geochemistry surveys (soil and till), a 6-hole drilling program, several prospecting campaigns, heavy mineral sampling (diamond exploration) and a heliborne geophysical survey (magnetic and radiometric). Two historical showings correspond to linear magnetic highs along the northeastern edge of the property:

• The Savon Gold showing (1.18 g/t Au), discovered by Virginia Mines in 2009, is characterized by mineralized altered basalt. A quartz-veined boulder found 175 m to the east of the Savon Gold showing yielded 1.74 g/t Au.

• The Pankot’s Palace showing (5.09 g/t Au) is characterized by millimetric veins of chalcopyrite and pyrite cutting fine-grained biotite paragneiss.

A SOQUEM-funded, multi-property assessment program in 2018 included fieldwork on the Galinée Property, which led to the discovery by prospecting of the sub-cropping, tonalite-hosted Gamora Prospect (up to 2.17 g/t Au), recognized over an area of 130 metres by 30 metres. Twenty-six (26) grab samples yielded values above 0.1 g/t Au, including six (6) samples returning values from 0.53 g/t Au to 0.84 g/t Au and one (1) sample returning 2.17 g/t Au (PR of November 13, 2018). About 5 kilometres to the west, a gold grain dispersal train in till yielded a sample containing 52 delicate gold grains, suggesting a proximal common source. A very unusual multi-kilometre cluster of LBS gold values was also identified (PR of May 31, 2018). The Company intends to conduct till sampling and follow-up prospecting.

DESCELIERS

This area has seen minimal exploration in the past, and very little is known about its geology. The nature and size of the geochemical footprint (an especially strong Au-Cu association) and the untested potential of the area make this property highly attractive.

Exploration highlights

In 2018, a multi-property SOQUEM-funded exploration program included work on the Desceliers Property. A heliborne DIGHEM geophysical survey (1,017 line-km) was followed by a short prospecting program (60 grab samples). Collectively, the work defined robust targets, namely for IOCG and magmatic Ni-Cu deposits. The 2019 program, funded and operated by Azimut, included focused prospecting.

Reconnaissance work in 2017, which followed up on an in-fill LBS survey in 2016, yielding the following results from 192 grab samples:

• A mineralized boulder field (anomalous Au, Ag, As, Bi, Co and Cu values) within a target area measuring 7 kilometres by 4 kilometres. The bedrock source of the boulders is considered proximal. The best results include:

o 0.33 g/t Au, 493 ppm Cu

o 0.2 g/t Au, 1.03 g/t Ag, 173 ppm Co, 562 ppm Cu, 0.14% Zn

o 5.90 g/t Ag, >1% As, 287 ppm Cu

o 0.22 g/t Au, 8.36 g/t Ag, >1% As, 551 ppm Cu

• Two mineralized outcrops located 1.7 kilometres apart within a target area measuring 4 kilometres by 3 kilometres. Samples yielded the following results:

o >500 ppm REE, >500 ppm Y, 377 ppm Zr, >1% P, 619 ppm Mo, 0.32% Pb

o 140 ppm Cu, 235 ppm Y, >500 ppm Zr

MERCATOR

Geological context

Mercator is located in the geological Superior Province, more precisely in the eastern part of the Opinaca Subprovince near the southwestern margin of the high-grade metamorphic Ashuanipi Subprovince.

The geology of the property is defined by generally N-S paragneiss bands roughly 2-8 km wide, intruded by diatexite and plutons of granite, granodiorite and tonalite. The entire sequence is cut by several diabase dykes.

Exploration highlights

Regional lake-bottom sediments show a strong multi-element footprint with maximum values of 316.7 ppm Cu, 1.58 ppm Ag, 0.92 ppm Bi, 29.3 ppm Mo, 29.2 ppm Pb, 251.8 ppm Zn, 39 ppm Y, 21.1 ppm W, 259.3 ppm Ni and 116.6 ppm Co.

On a nearby property to the northeast, Stelmine Inc. reported grab samples grading up to 7.4 g/t Au and 3.0 g/t Au in an iron formation.

On Mercator, a 300-m-long uranium-bearing horizon registered readings in excess of 8,000 cps. Grab samples returned values of 2260 ppm U, 2160 ppm U and 930 ppm U. Among the small number of other grab samples collected on the property, several returned multi-element anomalies, including a sample with 132 ppm Co, 388 ppm Cu, 31 ppm Li and 844 ppm Ni.

The main target models are BIF-hosted gold, intrusion-related copper-gold, magmatic Ni-Cu-Co and IOCG mineralization.

VALORE

Texte Valore

CORNE

Geological context

The Corne Property is in the geological Superior Province, more precisely in the eastern part of the Opinaca Subprovince, close to the boundary with the Opatica Subprovince. A preliminary geological map for the Cadieux Lake area has been published by the Ministry of Energy and Natural Resources (“MERN”), documenting the results of the regional outcrop survey that took place in 2018. The full report can be found on the SIGEOM website: http://gq.mines.gouv.qc.ca/bulletins-geologiques/lac-cadieux/ .

The Cadieux Lake area exhibits regional folding, and the Corne Property is centered on a deformation zone. The rocks on the property belong to two complexes of the Opinaca Subprovince:

• The Laguiche Complex, comprising paragneiss and metatexite derived from wackes and arenites.

• The Mabille Complex, comprising:

• Amphibolitic basalt, garnet amphibolite and tuff

• Foliated peridotite

• Strongly foliated gabbro and diorite with biotite and magnetite

• Foliated granite and granodiorite with biotite and magnetite

• Foliated tonalite and quartz diorite with biotite and magnetite

Exploration highlights

The MacLeod–Pointe Richard deposit is located about 20 km to the northwest of the Corne Property. The Main Zone (1,200 m x 50 m) contains indicated resources of 18.18 Mt at 0.60% Cu, 0.094% Mo, 4.48 g/t Ag and 0.06 g/t Au. Mineralization occurs in migmatized paragneiss at the contact with the MacLeod batholith and within the intrusion.

The MERN collected the first grab samples (22) from the property in 2018 as part of their mapping program. However, Corne has never been drilled or explored by other companies, and there are no known prospects.

A regional lake-bottom sediment survey returned values up to 223 ppm Cu, 0.60 ppm Ag, 0.41 ppm Bi and 10.7 ppm As.

CHROMASKA

Geological context

Chromium mineralization at Chromaska was discovered in 2010. It occurs as disseminated to massive chromitite horizons in a well-defined prospective horizon along a 4-kilometre-long ultramafic intrusion. The two main mineralized facies are ultramafic (massive to semi-massive chromite layers) and chromite-rich dykes or sills (PR of May 19, 2011). The main showings are the Sledgehammer Prospect, which can be traced at the surface for 100 metres within a magnetic high measuring 200 metres by 900 metres, and the Dominic Prospect, which occurs in a magnetic low.

A preliminary mineralogical study indicated very coarse chromite grains in a magnesium-rich aluminosilicate matrix (PR of May 19, 2011). Consequently, a primary grind should be sufficient to easily liberate the chromite from the silicate gangue. A subsequent mineralogical study of the chromite grains indicated a Cr2O3 content of 44.5% and Cr/Fe ratios ranging from 1.63 to 2.4 (PR of January 19, 2017).

Exploration highlights

In 2018, Azimut completed a self-funded diamond drilling program consisting of four (4) holes totalling 1,002 metres (PR of May 29, 2018). Holes CHR18-03 and CHR18-04 intersected semi-massive to massive chromite-bearing horizons within a large disseminated chromite-bearing envelope. An additional phase of work (3 holes totalling 370.5 m and channel sampling) has been completed to further assess the lateral continuity of the chromitite horizons.

Ground gravity survey

In early 2017, Azimut completed a self-funded ground gravity survey (PRs of February 21 and May 8, 2017) to investigate the main target zone in the central part of the intrusion where channelling obtained 17.21% Cr2O3 over 7.54 m (see below), to assess the property’s potential for Ni-Cu-PGE massive sulphides, and to characterize the footprint and extensions of the Dominic and Sledgehammer prospects.

The residual gravity anomaly is 1.2 kilometres long and up to 200 metres wide and remains open to the north and south. The position of the anomaly is stratigraphically high in the intrusion, which is a favourable criterion for chromite sills. Inversion modelling was done to construct subsurface 3D models of possible causative bodies to explain the anomaly. The results suggest a body of significant strike, generally more developed below a depth of 50 metres, possibly a subvertically dipping chromite body of substantial size, or disseminations/thin interdigitations of chromite within high-density host rocks (dunite, harzburgite).

Prospecting and channel sampling results

In late fall 2016, 59 channel samples were collected (cumulative length of 53.10 m in 5 channels) in addition to 14 grab samples (PR of January 19, 2017). The best channel interval was 33.2% Cr2O3 over 3.55 m. Channel lengths were constrained by thick overburden and a creek.

The main highlights are:

• 17.21% Cr2O3 over 7.54 m, including 33.2% Cr2O3 and 0.41 g/t PGE (Pt, Pd) over 3.55 m (Dominic Prospect, channel 3). The best result along this channel is 40.24% Cr2O3 over 1.55 m;
• 5.13% Cr2O3 over 22.49 m, including 23.1% Cr2O3 over 0.55 m, 19.57% Cr2O3 and 0.20 g/t PGE over 2.60 m (Sledgehammer Prospect, channel 1);
• 8.59% Cr2O3 over 6.54 m, including 17% Cr2O3 and 0.22 g/t PGE over 1.18 m, 22.5% Cr2O3 and 0.14 g/t PGE over 0.98 m (Sledgehammer Prospect, channel 2).

WABAMISK

Geological context

The Wabamisk Property is situated in the Archean Superior Province at the contact between the La Grande and Opinaca subprovinces. This boundary is controlled by a major E-W regional deformation corridor. The property is underlain by La Grande volcano-plutonic lithologies and Opinaca metasedimentary units. Wabamisk has a comparable geological context and geochemical signature to the Éléonore gold mine.

Exploration highlights

Initial exploration in 2005 identified several major gold target areas that included most of the known historical gold showings. Since then, a soil geochemistry survey in 2006 was followed in 2007 to 2009 by prospecting (grab sampling), mapping, IP surveys, soil sampling, channel sampling, and a maiden diamond drilling program that intersected sulphides or graphite with little or no gold.

In 2010, Newmont completed an 8-hole (2,800 m) diamond drilling program that identified two prospective areas for gold in the western half of the property. The best result from six (6) holes on the GH Prospect was 2.3 g/t Au over 4.3 m within a large envelope defined by 19 m grading 0.7 g/t Au, 0.39% Sb and 0.20% As. This gold-antimony-arsenic zone is associated with a diorite intrusion and metasedimentary rocks. Mineralization is characterized by Sb and As sulphides as disseminations and veinlets accompanied by sericitization and silicification. The target zone is 3.5 kilometres long, outlined by coincident soil (Sb, As) and geophysical (IP) anomalies. The alteration-mineralization footprint indicates strong exploration potential along strike and at depth.

The second area, the Dome-ML Prospect, is 1.7 kilometres long and yielded several historical high-grade gold values (up to 80.7 g/t Au) in grab samples taken from sheared and altered mafic volcanic units and a dioritic intrusion.

From 2012 to 2015, Newmont funded work programs that included prospecting (651 grab samples), a soil geochemistry survey (3,890 samples), an IP survey over altered shear zones that warranted additional work, and a high-resolution helicopter-borne magnetic survey (3,502 line-km). These programs led to the discovery of a new prospective area in the western part of the property characterized by gold-in-soil anomalies and an assay of 12.45 g/t Au from a quartz vein in a grab sample. Other prospecting results included 2.42% Cu, 0.41 g/t Au and 23.6 g/t Ag (grab sample); 1.42% Cu and 7.1 g/t Ag (grab sample); and 1.01% Cu, 0.67 g/t Au and 9.1 g/t Ag (boulder) (PR of March 19, 2015).

In 2018, Newmont contracted Geo Data Solutions Inc. to fly a heliborne SkyTEM survey over the property at a line spacing of 100 metres for a total coverage of 3,322 line-kilometres. The objective was to enhance target definition by delineating high-quality conductors on the project. Newmont funded the survey ($325,000 budget).

REX-DUQUET

Geological context

The Rex Property is located in the Minto Subprovince, more specifically in the Qalluviartuuq domain. This domain is composed of plutonic units grouped into various felsic to ultramafic magmatic suites or complexes in addition to volcano-sedimentary rocks. The latter are intruded by the Lac Couture carbonatite of late Archean age (ca 2,659 Ma) and the Kuuvaluk diatreme. Two networks of WNW-ESE to NW-SE lineaments represent brittle-ductile structures.

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.

Exploration highlights

Azimut began acquiring claims for the former Rex Property in 2009. The Duquet claims were added in 2015 when they were acquired from joint owners Osisko Gold Royalties Ltd (through the wholly-owned subsidiary Osisko Exploration James Bay Inc.), Newmont Northern Mining ULC and SOQUEM (PR of October 7, 2015). All the rights, titles and interests in the former Duquet Property were transferred to Azimut in consideration of an aggregate 2.25% net smelter return royalty (“NSR”) on those claims, with a 0.75% NSR payable to each of the three previous joint owners.

The 2019 work program comprised a heliborne Mag-EM(HELITEM)-spectrometric survey (1,720.7 line-km) as well as detailed prospecting, which led to the discovery of multiple new mineralized zones with grades up to 141 g/t Au and 13.65% Cu (Mousquetaires and Subtle; PR of November 6, 2019).

Azimut and SOQUEM intended to use the $4-million 2020 Nunavik Alliance exploration program to finance diamond drilling, heliborne geophysics and prospecting campaigns to accelerate its assessment of the best mineralized zones on the property.

Mineralized zones

More than 20 copper or polymetallic (copper-gold-silver-cobalt-tungsten) prospects have been identified since the initial copper discovery was announced in 2010. Drilling results, supported by prospecting, geological, structural and geochemical data, have confirmed several multi-kilometre IOCG-type targets. The most important are described below (PRs of September 4 and November 6, 2019).

Mousquetaires Zone

The Mousquetaires Zone corresponds to a copper-bearing brittle fault crosscutting a foliated iron formation, returning grades of up to 13.65% Cu, 0.12% Mo and 25.9 g/t Te. This zone may represent the strike extension of the 3-kilometre-long fault-controlled copper-bearing RBL Zone located 10 kilometres to the NNW, which returned grades of up to 11.6% Cu. The zone is recognized over a 1,050-metre-long by 80-metre-wide area, striking NNW-SSE with a 70° to 80° NE dip, crosscutting a strongly magnetic iron formation, and largely open along strike. Host rocks are variable: iron formation, gabbro, diorite, mafic and felsic volcanics, and paragneiss. Mineralization is dominated by semi-massive to disseminated chalcopyrite, with pyrite, pyrrhotite, magnetite and some bornite, associated with quartz veins and veinlets in a brittle tectonic context. Alteration is characterized by chlorite, hematite as well as magnetite veinlets proximal to mineralization; by epidote, silica and felspar more distal to mineralization. The main control on mineralization is a brittle fault with possible significant down-dip extensions.

Subtle Zone

The Subtle Zone is a shear-hosted high-grade gold system with silver and zinc, returning grades of up to 580 g/t Au (found in 2012) and 141 g/t Au, 915 g/t Ag and 7.87% Zn. This zone appears on strike with a group of 10 prospects located 5 to 12 kilometres further south on the property, returning up to 133.5 g/t Au, 851 g/t Ag, 9.09% Zn, >500 g/t Te, 1.6% Cu and 0.87% W.

The zone is recognized over an area 500 metres long by 150 metres wide, striking NNW-SSE with a subvertical dip and largely open along strike. Host rocks are paragneiss, orthogneiss and amphibolite. Mineralization is dominated by pyrite associated with centimetric to decimetric quartz veins generally subparallel to foliation, accompanied by sphalerite, galena, chalcopyrite, pyrrhotite and arsenopyrite. The zone is marked by high gold grades (up to 580 g/t Au) associated with silver (up to 915 g/t Ag), zinc (up to 7.87% Zn) and, locally, tellurium (up to 11.7 g/t Te), tungsten (up to 0.5% W) and molybdenum (up to 0.25% Mo). Alteration is characterized by silica, chlorite, sericite and hematite. The main control on mineralization is foliation. Isoclinal folding, as suggested by the magnetic pattern, may increase the width of the zone.

RBL and CM Zones

The RBL Zone is at least 3 kilometres long by 50 to 200 metres wide, with a maximum grade to date of 11.3% Cu (grab sample). The maiden drilling program in 2011 (1,764 m in 23 short holes: 21 rotary + 2 RC) yielded the following best grades: 0.34% Cu over 4.58 m, 0.13% Cu over 9.14 m, 0.14% Cu over 13.72 m, 0.64% Cu over 1.52 m and 0.17% Cu over 6.10 m (PR of February 9, 2012). An envelope of mineralization and alteration is recognizable over the entire zone, and drilling results revealed that copper values are frequently associated with anomalous values of cobalt and tungsten in a wide (up to 200 m) envelope containing anomalous barium, manganese, phosphorus and iron.

The CM Zone measures at least 2.5 kilometres long by 50 to 100 metres wide with a maximum grade to date of 4.3% Cu (grab sample; PR of October 13, 2010). An envelope of mineralization and alteration is recognizable over the entire zone at surface, and the 2011 drilling program (408 m in 6 short holes: 5 rotary + 1 RC) revealed a strong alteration system 150 metres wide, containing anomalous copper, cobalt, tungsten, molybdenum, barium, manganese, phosphorous and iron values (PR of February 9, 2012).

Hosted in migmatitic gneisses, the RBL and CM zones are described as extensive late-tectonic brittle hydrothermal systems with veins, veinlets and breccias. Both contain chalcopyrite, bornite and pyrite, as well as intense networks of magnetite and/or hematite with or without quartz veins and veinlets. Alteration is dominated by strong potassic alteration and pervasive silicification locally accompanied by albite, chlorite and epidote. Located 30 kilometres apart, the zones are spatially associated with two major subparallel structures suggesting significant deep-rooted regional-scale systems.

The geological context of the RBL and CM zones (large alteration and breccia systems spatially associated with regional-scale structures) suggest significant depth to the systems. Both zones show excellent potential for extensions based on their strong magnetic signatures and geochemical footprints in LBS. Azimut considers them to be significant IOCG-type targets. Furthermore, the two zones, spaced 27 kilometres apart, demonstrate the regional scale of mineralization on the Rex-Duquet Property.

REX-SOUTH

Geological context

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.

Exploration highlights

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.

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 (Boreal; PR of November 25, 2019) with grades up to 3.07% Cu, and the extension of previously known zones.

 The results of previous programs are presented in PRs dated October 31, 2011, and September 13, October 4 and April 4, 2012.

Mineralized zones

The property hosts at least 11 mineralized zones with kilometre-scale extensions, most of them surrounding or in the vicinity of an ovoid fluorite-topaz-bearing granitic intrusion 5 kilometres wide by 15 kilometres long (the “Qalluviartuuq Intrusive Complex” or “QIC”). The most important are discussed below.

Boreal Zone

The Boreal Zone appears as a hydrothermal breccia with angular fragments hosted in felsic orthogneiss. It was identified over an area 300 metres long by 10 metres wide, with a NW-SE trend and a subvertical dip. The zone remains largely open along strike. Mineralization is dominated by chalcopyrite accompanied by lesser pyrite and traces of bornite. Alteration is characterized by abundant epidote, albite and silica. Ten (10) grab samples returned grades above 0.5% Cu, including five (5) samples above 1% Cu with a peak of 3.07% Cu.

Copperton Zone

The Copperton Zone, discovered about 5 kilometres southeast of the Anorthosite Zone, is 3,500 metres long by 20 to 100 metres wide. It is hosted in a variably sheared steeply dipping feldspathic intrusion, as well as amphibolites and gneissic metasediments. The mineralized envelope is recognized over a strike length of 3.5 kilometres and a width of 20 to 100 metres. Mineralization is mainly disseminated to semi-massive chalcopyrite and pyrite. The best grades obtained during the latest prospecting program were 5.0 g/t Au, 1.75% Cu and 4.83 g/t Au, 1.5% Cu, while the best sample from 2012 graded 7.37% Cu, 3.86 g/t Au and 56.9 g/t Ag.

Dragon Zone

The Dragon Zone is hosted in foliated mafic and felsic volcanics with a NW-SE strike and a dip to the NE. This zone is approximately 450 metres long by 90 metres wide and appears spatially correlated with a magnetic high. Mineralization is mainly chalcopyrite accompanied by lesser pyrite and magnetite, and the highest values obtained were 4.05% Cu, 0.6% Mo, 2.78% Cu and 0.13% Mo in grab samples. Alteration is marked by silicification.

Lebreuil Zone

The Lebreuil Zone is hosted by felsic orthogneiss. Mineralization is in the form of 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. The preliminary strike extent of the Lebreuil Zone is about 2 kilometres, but widths are still undefined.

Augossan Zone

The Augossan Zone (gold-silver-copper-tungsten-tin) represents the first reported occurrence of significant tungsten grades in the Nunavik region. Other commodities of interest are bismuth, tantalum, beryllium, rubidium, molybdenum, rhenium, tellurium and lithium.

The zone represents a large polymetallic envelope at the contact between the QIC and volcano-sedimentary rocks. It is 7,000 metres long and 100 to 350 metres wide, as defined by drilling, channelling and prospecting data. It remains open in all directions, notably toward the intrusion.

The results for the 788 grab samples collected in this zone from 2010 to 2012 can be summarized as follows:

• Copper: 136 samples returned grades higher than 0.1% Cu, including 25 samples with grades ranging from 0.5% to 2.56% Cu

• Tungsten: 71 samples returned grades higher than 0.05% W, including 49 samples with grades ranging from 0.1% to 4.62% W

• Gold: 141 samples returned grades higher than 0.1 g/t Au, including 28 samples with grades ranging from 1.0 g/t to 23.3 g/t Au

• Silver: 209 samples returned grades higher than 1.0 g/t Ag, including 49 samples with grades ranging from 10.0 g/t to 90.0 g/t Ag

Channel sampling highlights from 2011 include 13.75 g/t Au, 15.8 g/t Ag and 0.23% Cu over 1.1 m; 3.15% W over 1 m; and 0.64% W over 3 m. Channels were cut perpendicular to the apparent orientation of mineralization.

Drilling highlights from 2011 include: 0.14% W over 15.24 m with an interval of 4.20 g/t Ag, 893 ppm Bi, 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; 0.56% W, 2.84 g/t Ag and 0.11% Cu over 1.52 m. True widths of the drilling intervals were estimated to be approximately 75% to 100% of core length.

Anorthosite Zone

The gold-copper-tungsten Anorthosite Zone was discovered in 2010 several kilometres south of the Augossan Zone. A few reconnaissance holes and prospecting data outlined a preliminary envelope 4 kilometres long by 200 metres wide with Au, Ag, Cu, W and Te mineralization.

Aura–Pegor Zone

The Aura–Pegor Zone, 2 kilometres long, is characterized by disseminated pyrite and strong alteration, including tourmaline in veinlets or stockworks accompanied by silica and albite. Grab sample assays include 15 samples with grades ranging from 0.5 g/t Au to 11.75 g/t Au. In addition, this zone presents anomalous values in copper (up to 0.37% Cu), tungsten (up to 0.06% W), bismuth (up to 0.14% Bi) and tellurium (up to 34 g/t Te).

Jemima Zone

The Jemima Zone is a mineralized corridor 2 kilometres long by 30 to 100 metres wide, 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. Mineralization and associated alteration are related to a brittle structure that clearly crosscuts the Archean gneissic country rocks. Assays for 15 grab samples ranged from 0.5% to 2.86% Cu, up to 0.17% Mo (molybdenum) and up to 0.422 g/t Re (rhenium).

Evidence of large-scale systems and comparison to other mineral provinces

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

1. A system mainly emplaced around the 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-kilometre contact between the intrusion and the volcano-sedimentary host rocks, as well as within the intrusion itself. This 30-kilometre prospective trend is marked by a linear magnetic anomaly around the intrusion. The Aura-Pegor and Le Breuil zones, both characterized by abundant tourmaline and lesser fluorite, may represent a less eroded part of the system (possible roof zones) along the northwest and southeast extensions of the Augossan trend.

2. IOCG mineralization associated with brittle structures and characterized by copper-dominant values accompanied by hematite and pervasive potassic alteration, represented by the Jemima Zone and the Sombrero and Impact prospects. The Larissa, Agaku-1, Agaku-2, Agaku-4 prospects may also represent IOCG mineralization.

A comparison can be made between the context of the Rex Trend and the world-class Carajás Mineral Province in Brazil. The latter hosts several large IOCG deposits (Sossego, Salobo, Alemao, Gameleira and Cristalino) and intrusion-related Cu-Au-(W-Bi-Sn) and W deposits (Breves, Aguas Claras) associated with anorogenic granite intrusions. The ages for the Carajás IOCG deposits range from Archean (2.77 Ga) to Paleoproterozoic (1.73 Ga), and the intrusion-related Breves deposit is Paleoproterozoic (1.88 Ga). The Breves deposit (50 Mt @ 1.22% Cu, 0.75 g/t Au, 2.4 g/t Ag, 0.12% W, 70 ppm Sn, 175 ppm Mo, and 75 ppm Bi) has a number of features in common with the Qalluviartuuq mineralized system at Rex South, particularly the presence of fluorite, tourmaline, chalcopyrite, pyrite, arsenopyrite, wolframite, cassiterite, bismuthinite and native bismuth.

NANTAIS

Geological context

Mineralization (pyrrhotite, pyrite, chalcopyrite, arsenopyrite, sphalerite, galena) is hosted within a steeply dipping north-trending unit of mafic and felsic volcanic rocks. This mineralized corridor correlates well with EM conductors (PRs of August 27 and September 29, 2014).

Target deposit types are gold-rich polymetallic VMS and shear zone-hosted. Historical showings include Nantais-1 (4.7 g/t Au, 5.2 g/t Ag, 0.11% Cu (grab)); Nantais-2 (7.9 g/t Au, 7.2 g/t Ag (grab); 15.9 g/t Au, 7.5 g/t Ag, 0.14 % Cu over 0.2 m; 8.0 g/t Au (grab); 0.15% Cu over 0.6 m (channel)), and Cabane (0.47 g/t Au, 1,600 g/t Ag, 0.15% Sb, 0.12% Cu, 2.48% Zn, 7.00% Pb (grab)).

Exploration highlights

The 2019 work program consisted of systematic prospecting on target areas defined by integrating all previous data from heliborne Mag-EM surveys, remote sensing, LBS geochemical modelling, and prospecting. A total of 518 grab samples were collected primarily from outcrops (PR of December 3, 2019).

The Company also conducted fieldwork in 2011 and 2012 (PRs of September 18 and April 19, 2012), and flew a geophysical survey over the property in 2014.

The highlights of the 2019 program are described below:

• Discovery of a 1.6-kilometre-long gold-bearing area with grades up to 6.91 g/t Au, 16.4 g/t Ag and 0.22% Cu (sample Y90610), spatially associated with a 1.1-kilometre-long EM conductor; grab samples collected in this area, mostly from angular boulders, are composed of sheared mafic volcanics with quartz veins and pyrite.

• Improved definition, through infill prospecting, of a previously recognized polymetallic corridor, 3.1 kilometres long by up to 500 m wide, in the central part of the property (see PRs of April 19 and September 18, 2012). The most significant new grab sample results are presented below from north to south:

  •  245 g/t Ag, 1.62% Pb, 6.45% Zn (sample Y090060)

  • 121 g/t Ag, 3.43% Zn (sample Y090165)

  • 0.26 g/t Au, 182 g/t Ag, 0.31% Cu (sample Y090129)

  • 1.27 g/t Au, 249 g/t Ag, 0.11% Cu, 1.29% Pb, 4.56% Zn (sample Y090145)

  • 17.4 g/t Au, 8.82 g/t Ag, 0.2% Cu (sample Y090136)

  • 4.13 g/t Au, 64.2 g/t Ag, 0.3% Cu (sample Y090256)

DORAN

Geological context

Doran is situated at the contact between the Minto and La Grande Sub-province of the Archean Superior Province, in the geological domain called Goudalie-La Grande.

A regional lake-bottom geochemical survey revealed several samples elevated in Cu, Ag, Au, Zn, U or REE. And the highest copper and silver anomalies (>40% Cu and 12.3 ppm Ag) are contained in a rock sample of banded gneiss of the Brésolles serie in Block B.

Exploration highlights

Limited prospecting campaigns have been carried out in the property with only 16 lake bottom sediment samples, 3 rock samples and 26 outcrop observations listed in it. The surrounding area is largely under-explored.

QULLINAARAALUK

More information to follow.

NORTH RAE

Uranium property
The North Rae uranium property (1 claim, 0.45 km² as at January 17, 2016) lies in an area of the Ungava Bay region considered by management to be a new uranium province in Canada. AREVA, a major uranium company, also has a land position in the same area. No major work has been performed on the property since 2009 given the volatility of the uranium market and the current uncertainty regarding the development of uranium projects in Quebec.

Geological context
The North Rae Property is located about 20 kilometres from the coastal town of Kangiqsualujjuaq and 160 kilometres northeast of the town of Kuujjuaq. The property covers uranium targets along the contact between the Proterozoic metasedimentary rocks of the Lake Harbour Group and the Archean granitized basement. The property’s potential is based on its geochemical signature, the association with anatectic granites and the spatial relationship with deep-seated structures. On the nearby Cage Property, AREVA drilled more than 10,000 metres in 2009 and reported 14 mineralized zones with grades up to 9.34% U3O8, mostly hosted in metasedimentary rocks of the Lake Harbour Group, which it called “an important uranium-thorium province” in a report filed in 2007.

Exploration model
The exploration model is a large-tonnage, disseminated uranium deposit hosted by an intrusion and its country rocks. A well-known example of this type is Rössing in Namibia, one of the world’s largest uranium mines. Proximal secondary concentrations along late syn-intrusive to post-intrusive brittle or ductile-brittle faults are also considered. North Rae shares strong similarities with the footprints of several major uranium sites in Quebec, and with the neighbouring Central Mineral Belt in Labrador, a well-known prospective region for uranium.

Exploration highlights and outlook
From 2006 to 2009, a dozen mineralized zones were discovered at surface on the North Rae Property and in its vicinity, with a cumulative length of 17 kilometres and grades up to 3.3% U3O8. The zones show excellent spatial correlation with uranium anomalies identified by geophysical surveys flown over the property. Many targets have yet to be field-tested, and many mineralized zones remain open. No major work has been performed on the property since 2009 given the volatility of the uranium market and the current uncertainty regarding the development of uranium projects in Quebec.

Strategic location
The North Rae uranium property benefits from several strategic advantages, notably the property’s potential for a large and shallow resource base amenable to open pit mining, and the short distance to port facilities on the Ungava Bay coast, which are near deep sea water, a permanent airport and other infrastructure.

MASTA

Masta text