Azimut Exploration Inc.

Rex-Duquet

Region

Nunavik

Size

59,900 Ha

Metals

Cu-Au-Ag-REE

Target Style

IOCG / Magmatic systems

Stage

Drilling Stage - Priority Targets Identified

Operator

AZM

Ownership

100% AZM - Option to SOQUEM

2024 Planned Program

Data Processing, Prospecting

Introduction

The Rex-Duquet property is a copper-polymetallic project occupying the northern segment of the Rex Trend, a vast underexplored region characterized by a strong 300-km-long copper anomaly in lake-bottom sediments, coupled with a strong 100-km-long REE anomaly. The property’s claim blocks are spread over a distance of 80 km. Rex-Duquet is considered a district-scale polymetallic project for gold, copper, silver, tellurium, molybdenum and tungsten.

The property demonstrates evidence for district-scale IOCG mineralization associated with brittle structures and characterized by copper-dominant values accompanied by magnetite, hematite and pervasive potassic alteration, primarily represented by the RBL, Mousquetaires and CM zones.

Azimut began acquiring claims for the former Rex property in 2009. The Duquet claims were added to the Company’s portfolio in 2015 when they were acquired from joint owners Osisko Gold Royalties Ltd, Newmont Northern Mining ULC and SOQUEM. On May 15, 2019, Azimut announced that it had signed a strategic alliance agreement with SOQUEM for the Nunavik region, and the two properties were amalgamated. The Nunavik Alliance comprises two option phases representing a total investment of up to $40 million. Under the first option, SOQUEM has the option to earn an initial 50% interest in the Rex-Duquet, Rex South and Nantais properties by investing $16 million in exploration work over four (4) years, the first two (2) years being a firm commitment of $4 million each year. Under the second option, SOQUEM may earn an additional 10% interest in each designated property (for a total 60% interest in each such property) by investing $8 million per designated property over two (2) years and delivering a preliminary economic assessment. Azimut is the operator of the Nunavik Alliance.

The Rex-Duquet component of the SOQUEM-funded summer 2021 Nunavik Alliance exploration program consisted of diamond drilling (2,152 m in 12 holes), geophysics (IP and magnetics) and channel sampling (PR of September 15, 2021 ). The latest set of acquired data is being reviewed.

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

Mineralized zones

More than 20 copper or copper-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-km-long fault-controlled copper-bearing RBL Zone located 10 km to the NNW, which returned grades of up to 11.6% Cu. The zone is recognized over a 1,050-m-long by 80-m-wide area, striking NNW-SSE, 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 and hematite and/or magnetite veinlets proximal to mineralization and by epidote, silica and feldspar more distal to mineralization. The main control on mineralization is a brittle fault with possible 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 the PAK Zone and PAK North Zone, a group of 10 prospects located 5 to 12 km 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 Subtle zone is recognized over an area 500 m long by 150 m wide, striking NNW 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 km long by 50 to 200 m 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. Drilling 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 km long by 50 to 100 m wide with a maximum grade to date of 4.3% Cu (grab sample). An envelope of mineralization and alteration is recognizable over the entire zone at surface. The 2011 drilling program (408 m in 6 short holes: 5 rotary + 1 RC) revealed a strong alteration system 150 m wide, containing anomalous copper, cobalt, tungsten, molybdenum, barium, manganese, phosphorous and iron values.
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 magnetite and/or hematite networks 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 km 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 lake-bottom sediment. Azimut considers them to be significant IOCG-type targets. Furthermore, the two zones, spaced 27 km apart, demonstrate the regional scale of mineralization on the Rex-Duquet property.

The Rex-Duquet property is located in the Archean Minto Subprovince (Superior Province), 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.

November 23, 2022

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