Azimut and KGHM Sign Joint Venture Option Agreement for the Kukamas Copper-Gold Property, James Bay Region, Quebec
Azimut and KGHM Sign Joint Venture Option
Agreement for the Kukamas Copper-Gold
Property, James Bay Region, Quebec
TSXV: AZM
OTCQX: AZMTF
LONGUEUIL
, QC
,
Dec. 8, 2022
/CNW Telbec/ -
Azimut Exploration Inc.
("Azimut" or the
"Company") (TSXV: AZM) (OTCQX: AZMTF) is pleased to announce the signing of a joint venture
option agreement (the "Agreement") for its Kukamas Property (the "Property") in the Eeyou Istchee
James Bay region of
Quebec
(
see Figures 1 to 5
) with
KGHM International Ltd
("KGHM
International"). KGHM International is a subsidiary of KGHM Polska Miedź S.A, a Polish corporation
that has been a major copper and silver producer for more than 50 years, with mining projects in
Europe
,
North America
and
South America
.
Under the Agreement, KGHM International can acquire from Azimut an initial 50% interest in the
Property over four (4) years with
$5 million
in exploration expenditures and can earn an additional
20% interest with a further investment of at least
$4.2 million
to complete and deliver a preliminary
economic assessment study ("PEA").
A first exploration program totalling
$700,000
will be undertaken in early 2023 and will include a high
resolution magnetic-electromagnetic heliborne survey, a detailed lake-bottom sediment survey,
followed by focussed prospecting on targets defined by these surveys. Azimut is the operator.
The Kukamas Property covers a 41-kilometre cumulative strike length along a highly prospective
greenstone belt (the Yasinski Group) within the La Grande Subprovince of the Archean Superior
Province. Kukamas displays one of the strongest geochemical footprints for copper-gold mineralized
systems in the
James Bay
region, marked by strong values in copper, silver, arsenic and antimony in
lake-bottom sediments. The geology is characterized by extensive shear zones, clastic
metasediments, iron formations, and mafic to felsic metavolcanics surrounding granitic intrusions.
The project is considered as largely underexplored. Numerous known prospects sit on or adjacent to
the Property. Historical grab samples collected on the project graded up to 10.63 g/t Au and
20.7 % Cu.
N
ote that grab samples are selective by nature and unlikely to represent average
grades
.
Two main target types are considered:
Shear-related copper-gold systems, and
Intrusion-related nickel-copper-cobalt-PGE systems
The Property comprises 536 claims (272.1 km
2
) in two blocks of claims. The project is easily
accessible with major infrastructure nearby. It is located 4 kilometres north of the Trans-Taiga Road
and the LG-3 airstrip (Km 100), along an access road leading to the LG-3 hydroelectric generating
station just north of the Property. The nearest town is
Radisson
, 80 kilometres to the north-
northwest.
Key terms of the Agreement
KGHM International can acquire an initial 50% interest in the Property by completing the following
conditions over four (4) years:
Funding minimum work expenditures of
$700,000
the first year (firm commitment) and
$800,000
,
$1,500,000
and
$2,000,000
in the three (3) subsequent years for a total of
$5,000,000
.
Making cash payments of
$50,000
on signing and on the first anniversary of the Agreement, and
of
$75,000
on the two (2) subsequent anniversaries for a total of
$250,000
.
Azimut shall act as operator during this first option phase.
Upon KGHM International earning a 50% interest, it has the option of earning an additional 20%
interest by delivering a PEA under the following conditions:
Incurring minimum work expenditures of
$1,400,000
per year for three (3) years for a total of at
least
$4,200,000
.
Making cash payments of
$75,000
per year for three (3) years for a total of
$225,000
.
KGHM International will act as operator during this second option phase.
If KGHM International decides not to exercise this additional option, it must pay Azimut
$75,000
in
cash as final payment.
The second option period may be extended by up to three (3) years under the following conditions:
Work expenditures of at least
$1,700,000
per extension year.
Cash payment of
$100,000
per extension year.
This news release was prepared by Dr.
Jean-Marc Lulin
, P.Geo., acting as Azimut's qualified person
under National Instrument 43-101.
About Azimut
Azimut is a leading mineral exploration company with a solid reputation for target generation and
partnership development. The Company holds the largest mineral exploration portfolio in
Quebec
.
Azimut is actively advancing its wholly-owned flagship
Elmer Gold Project
to the initial resource
stage in the
James Bay
region. Azimut has also acquired a major nickel position in the region with its
James Bay Nickel Project
.
Azimut uses a pioneering approach to big data analytics (the proprietary
AZtechMine
TM
expert
system), enhanced by extensive exploration know-how. Azimut's competitive edge is based on
systematic regional-scale data analysis and concurrently active projects. Azimut maintains rigorous
financial discipline and a strong balance sheet, with 79.3 million shares issued and outstanding.
www.azimut-exploration.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
SOURCE
Azimut Exploration Inc.
View original content:
http://www.newswire.ca/en/releases/archive/December2022/08/c2522.html
%SEDAR: 00003284E
For further information:
Jean-Marc Lulin, President and CEO, Tel.: (450) 646-3015 - Fax: (450)
646-3045; Jonathan Rosset, Vice President Corporate Development, Tel: (604) 202-7531,
CO: Azimut Exploration Inc.
CNW 06:30e 08-DEC-22