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Azimut Discloses Drilling Results from Gold Discovery on the Elmer Property, James Bay

Drill Results

Azimut Discloses Drilling Results from Gold

Discovery on the Elmer Property, James Bay

Region, Quebec

Symbol: AZM.TSX Venture

2.77 g/t Au over

90.20 m

including 12.28 g/t Au over

14.2 m

2.61 g/t Au over

72.15 m

including 29.24 g/t Au over

4.95 m

1.14 g/t Au over

103.15 m

including 4.15 g/t over

12.0 m

3.66 g/t Au over

22.75 m

including 7.21 g/t Au over

10.65 m

LONGUEUIL, QC

,

July 27, 2020

/CNW Telbec/ -

Azimut Exploration Inc.

("Azimut" or the

"Company") (TSXV: AZM) is pleased to report the assay results of fourteen (14) holes totalling

2,790 metres from its ongoing 10,000-metre diamond drilling program on the

100% owned Elmer

Property

(the "Property") in the

James Bay

region of

Quebec

. To date, 39 holes have been drilled

for 7,656 metres, in addition to the seven (7) holes (996 m) of the maiden drilling program in

November 2019

(see press releases of

January 14

and

June 29, 2020

). Assay results are pending

for 25 holes (

4,866 m

).

The information obtained from the current phase of work will be used to prepare an aggressive

follow-up drilling program in the coming months.

The results disclosed in this press release:

Support the discovery of a substantial gold-bearing system at Patwon, with multiple

intersections along holes, including frequent high-grade intervals; and

Demonstrate a strike extent of at least 350 metres and a vertical extent of 200 metres. True

widths vary considerably but could reach up to 80 metres. The Patwon gold zone, which starts

from surface, remains open along strike and at depth. Significant additional drilling will be

required to define the full extent, shape and grade of the mineralized body.

The Patwon Prospect is part of a NE-SW high-potential corridor at least 7 kilometres long in the

central portion of the Property. Using the Patwon footprint, data processing is underway to further

define comparable targets within this corridor. The Elmer Property covers 35 kilometres of a highly

prospective underexplored Archean greenstone belt. The Wapatik Property, 100% owned by Azimut

and located further east along the same geological trend, provides an additional 24.4-kilometre-long

prospective strike.

HIGHLIGHTS

(

see

Table 1

,

Photos 1 to 8

,

Figures 1 to 9

)

Hole ELM20-008

0.81 g/t Au over 58.8 m

(from 77.2 m to 136.0 m) including:

1.40 g/t Au over 14.5 m

(from 77.2 m to 91.7 m)

1.04 g/t Au over 25.0 m

(from 111.0 m to 136.0 m)

Hole ELM20-009

1.14 g/t Au over 103.1 m

(from 121.15 m to 224.3 m) including:

4.15 g/t Au over 12.0 m

(from 136.5 m to 148.5 m)

8.36 g/t Au over 1.5 m

(from 159.4 m to 160.9 m)

Hole ELM20-010

0.71 g/t Au over 78.0 m

(from 78.0 m to 156.0 m)

Hole ELM20-011

3.66 g/t Au over 22.75 m

(from 45.75 m to 68.5 m) including:

7.21 g/t Au over 10.65 m

(from 50.35 m to 61.0 m)

Hole ELM20-013

1.65 g/t Au over 18.55 m

(from 56.45 m to 75.0 m)

Hole ELM20-026

2.61 g/t Au over 72.15 m

(from 122.2 m to 194.35 m) including:

3.59 g/t Au over 51.85 m

(from 142.5 m to 194.35 m)

including

29.24 g/t Au over 4.95 m

(from 154.75 m to 159.7 m)

Hole ELM20-028

1.44 g/t Au over 58.2 m

(from 156.3 m to 214.5 m) including:

3.60 g/t Au over 13.45 m

(from 156.3 m to 169.75 m)

including

6.0 g/t Au over 7.15 m

(from 156.3 m to 163.45 m)

1.46 g/t Au over 15.50 m

(from 199.0 m to 214.5 m)

Hole ELM20-034

2.77 g/t Au over 90.2 m

(from 151.3.0 m to 241.5 m) including:

12.28 g/t Au over 14.2 m

(from 151.3 m to 165.5 m)

including

23.26 g/t Au over 5.85 m

(from 151.3 m to 157.15 m)

5.35 g/t Au over 2.9 m

(from 202.6 m to 205.5 m)

3.95 g/t Au over 9.95 m

(from 221.55 m to 231.5 m)

Hole ELM20-35

1.24 g/t Au over 34.75 m

(from 127.25 m to 162.0 m) including:

6.39 g/t Au over 4.0 m

(from 152.0 m to 156.0 m)

Hole ELM20-36

2.46 g/t Au over 5.10 m

(from 206.9 m to 212.0 m)

Azimut prioritized the assaying of samples from holes ELM20-026, -028, -034, -35, and -36 to

accelerate its assessment of the vertical and strike continuity of the Patwon discovery.

_________________________

The current core-oriented drilling program aims to expand the Patwon Discovery on strike and at

depth, and to assess new targets on strike with or subparallel to Patwon, most supported by quality

induced polarization ("IP") anomalies (see press releases of

March 18

and

May 26, 2020

).

Thirty (30) holes (6,420 m) have been drilled thus far on the Patwon Prospect (the ELM-1 target),

principally along a 600-metre length using 50-metre-spaced drilling sections, including seven (7)

holes to test the continuity of the gold-bearing system to a depth of 200 metres.

Nine (9) holes (

1,236 m

) have been drilled on four other IP targets: ELM-2 (3 holes), ELM–3 (1

hole), ELM-4 (4 holes) and ELM-5 (1 hole).

Results are still pending for about 3,595 samples from twenty-five (25) holes. This includes 2,400

samples that have yet to be sent for assays from eighteen (18) holes still undergoing core logging

and sampling.

The results disclosed in this press release are from thirteen (13) holes drilled on the Patwon

Prospect (ELM20-008, –009, -010, -011, -013, -014, -015, -017, -026, -028, -034, -035 and -036)

and one (1) hole on the ELM-3 target (ELM20-016).

Holes ELM20-008, -026

and

-028

tested the vertical extent of previously reported hole ELM19-007

(1.93 g/t Au over

82.0 m

incl. 3.46 g/t Au over

44.1 m

), at roughly 40-metre intervals along the same

section. The results indicate good vertical continuity of the mineralized zone, which is mostly hosted

by felsic volcanics and a felsic intrusion near its contact with a gabbro unit. The mineralized

envelope, up to 70 metres wide, recognized down to 190 metres, appears roughly subparallel to the

NE-SW schistosity, with a dip of 70

o

to the north (

Figure 5

).

Holes ELM20-011, -013

,

-034, -035

and

036

were drilled laterally off the section described above

and demonstrate lateral continuity of the mineralization over a 300-metre strike length (

Figures 6 and 7

). Hole -034 confirmed the vertical extent of the gold-bearing system down to 200

metres. Pending results will likely extend the mineralized system at least 50 metres further east,

based on visual observations of core from holes

ELM20-40

and

-41

(quartz veining, pyritic stringers,

native gold grains).

Holes ELM20-009

and

-010

tested the vertical extent of two previously reported drilling sections of

three (3) holes each (ELM19-001, -002, -003 and ELM19-004, -005 and -006). These sections were

designed to intersect a prominent NW-SE extensional vein system recognized at surface. Both holes

confirm the vertical continuity of mineralization within a wide mineralized envelope (

Figures 8 and 9

).

Holes ELM20-014, -015

and

017

tested IP anomalies to the SW of the Patwon Prospect. These

holes, which mostly cut a gabbro unit, did not return significant mineralization. It is now thought that

the mineralized system lies immediately north of these holes.

Hole ELM20-016

, drilled on target

ELM-3, did not return significant mineralization.

Technical advancement

The information acquired during this program will help further expand the Patwon discovery and

define new targets along strike.

Gold mineralization is related to several sets of quartz veins/veinlets and their wall rocks, as

well as metre-scale hydrothermal breccias, pyrite stringers, and massive to semi-massive pyrite

lenses. Mineralization appears to be mainly related to a felsic intrusion and felsic volcanics,

including ash and clastic tuffs, close to their lithological contacts with a thick gabbro unit.

Three sets of quartz veins contain gold, two of which corroborate surface observations:

Subvertical extensional veins striking NW-SE;

Shear veins striking NE-SW, subparallel to the schistosity and dipping 65

o

to 80

o

to the

north; and

Subhorizontal veins, thus far observed in drill core only.

Variable amounts of pyrite are present as fine- to coarse-grained disseminations, as

crosscutting centimetric stringers, or as semi-massive to massive pyrite lenses (possible

replacement or exhalative horizons). Disseminated pyrite and pyrite stringers are associated

with quartz veining and their wall rocks. Pyritic lenses appear to be associated with felsic

volcanics and concordant with schistosity. Other sulphides include trace amounts of chalcopyrite

and galena. No arsenic-bearing minerals have been observed.

Native gold grains are frequent, generally associated with quartz veins and various forms of

pyrite mineralization. The grains are isolated or form clusters (

Photos 1 to 8

).

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.

Preliminary geometry and mineralization model:

Mineralization has been recognized over a

350-metre length

(open along strike to the NE

and SW). Widths appear highly variable but may reach up to

80 metres

. Average width has

not yet been determined. Mineralization is known down to

200 metres

and is open at

depth.

A mineralized envelope, with a NE-SW orientation, dips 70

o

to the north, on average, and is

subparallel to the schistosity.

New observations suggest a primary volcanogenic component related to felsic volcanics,

with a structural overprint. The structural component appears to be a dextral NE-SW shear

zone that generated two main vein sets: NE-SW shear veins and NW-SE extensional veins

(Riedel type). Both vein types commonly display sulphide-rich wall rocks.

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.

The Elmer Property comprises 515 claims covering 271.3 km

2

over a 35-kilometre strike length. The

project is located 285 kilometres north of

Matagami

, 60 kilometres east of the village of

Eastmain

,

and 5 kilometres west of the paved James Bay Road, a major all-season highway. The region

benefits from quality infrastructure, including significant road access, a hydroelectric power grid and

airports. The project was staked based on the results of the Company's predictive modelling for gold

in the

James Bay

region using its proprietary

AZtechMine

TM

expert system.

Drilling contract and analytical protocol

The drilling contract was awarded to Chibougamau Drilling Ltd of

Chibougamau, Quebec

. The hole

diameter is BTW. The phase of drilling discussed in this press release (39 holes,

7,656 m

) took

place from

May 20 to July 11, 2020

. The remainder of the 10,000-metre program is scheduled to be

completed in August.

Drill core samples were sent to ALS Minerals in

Val-d'Or, Quebec

. Gold was analyzed by fire assay,

with atomic absorption and gravimetric finish for grades above 3.0 g/t Au. Samples were also

analyzed for a 48-element suite using ICP. Azimut applied industry-standard QA/QC procedures to

the program. Certified reference materials, blanks and field duplicates were inserted in all drill core

shipments to the laboratory.

This press release was prepared by Dr.

Jean-Marc Lulin

, P.Geo., acting as Azimut's qualified

person under National Instrument 43-101. The field program is under the direction of François

Bissonnette, P.Geo., Operations Manager, and François Gagnon, P.Geo., Project Manager.

About Azimut

Azimut is a mineral exploration company whose core business is centred on target generation and

partnership development. The Company uses a pioneering approach to big data analytics (the

proprietary

AZtechMine

TM

expert system) enhanced by extensive exploration know-how. Azimut

maintains rigorous financial discipline and has 65.7 million shares outstanding. Azimut's competitive

edge against exploration risk is founded on systematic regional-scale data analysis and multiple

concurrently active projects.

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/July2020/27/c9434.html

%SEDAR: 00003284E

For further information:

Jean-Marc Lulin, President and CEO, Tel.: (450) 646-3015 - Fax: (450)

646-3045, [email protected], www.azimut-exploration.com

CO: Azimut Exploration Inc.

CNW 07:00e 27-JUL-20