Azimut Exploration Inc. (TSX-V: AZM) is pleased to report the discovery of substantial gold mineralization in multiple drill hole intersections, including frequent high-grade intervals, in all seven holes of its maiden diamond drilling program on the 100% owned Elmer Property in the James Bay region of Quebec. Significant additional drilling will be required to define the true width and extent of this discovery. The Patwon Prospect is part of a larger 7-kilometre-long high-potential target zone on the Property (see Figures 1 to 3). A ground geophysics survey (induced polarization) is currently underway over the discovery area and its vicinity to prepare for a more comprehensive upcoming drilling program.

The results from this initial phase of drilling indicates that gold-bearing mineralization occurs in three different orientations: 1) along an extensive set of veins oblique to the schistosity; 2) parallel to the schistosity; and 3) as flat-lying veins. Drill holes were oriented to intersect the three types of veins.

Azimut’s management considers these results to be among the most significant gold exploration results in the James Bay region since the 2004 discovery of the Éléonore deposit by Virginia Gold Mines. The Éléonore mine is currently owned and operated by Newmont.

HIGHLIGHTS (see Tables 1 and 2, Figures 1 to 8)

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Based on previously reported surface information (see press releases of July 16, September 19, October 22 and November 28, 2019), the objectives of the 996-metre core-oriented drill program were to:

• Cut perpendicularly the main vein system striking NW-SE, with six holes totalling 849 metres (holes ELM19-001 to 006) in two parallel 40-metre-spaced drill sections of three drill holes each; and
• Cut perpendicularly shear veins striking NE-SW subparallel to the schistosity with one hole (ELM19-007, 147 m); schistosity is roughly parallel to the fabric of the magnetic gradient and to lithological contacts (see Figure 4).

The drilling program provided the following critical preliminary information:

• Gold mineralization is related to different sets of quartz veins and veinlets and their wall rocks, and more locally to metre-scale hydrothermal breccias. Quartz veining seems to be principally related to a felsic intrusion, either at or close to the lithological contacts between the intrusion and the surrounding mafic volcanics and gabbros.
• Three sets of quartz veins contain gold, two of which corroborate surface observations:
  • Subvertical veins striking NW-SE (main system);
  • Veins striking NE-SW, subparallel to the schistosity and dipping 65^o to 80^o to the north; and
  • Subhorizontal veins so far observed in drill core only.
• Variable amounts of pyrite (1% to 30%) are present as coarse-grained disseminations or centimetric stringers, both forms associated with quartz veining and their wall rocks.
• Native gold grains are frequent, generally associated with quartz veins, or as isolated grains in pyrite stringers (see Table 2).
• Gold-bearing facies are accompanied by pervasive silica, chlorite, sericite and carbonate alteration, and occasionally by tourmaline seams in quartz veins.
• The following interpretation at this early discovery stage is based on the results of 7 drill holes and detailed surface sampling:
  • Mineralization has been recognized over a 200 metres length (open laterally to the NE and SW) with an apparent width at surface ranging from 50 to 70 metres;
  • Mineralization is known down to 100 metres, open at depth;
  • The principal control on mineralization appears to be a dextral NE-SW shear zone generating two main vein sets: NE-SW shear veins and NW-SE extensional veins (Riedel type);
  • Both vein types commonly display sulphide-rich wall rocks; and
  • The intensity of quartz veining in the felsic intrusion may be partly controlled by the rheologic contrast with the surrounding mafic host rocks.
• The detailed geometric relationships between drill hole intercepts will be better defined with further data analysis and additional drilling.
• The Patwon Prospect, located in a central position on the Property, has potential kilometre-scale strike extensions that have seen very little exploration. Two high-grade occurrences (25.2 g/t Au over 1.0 m, 12.65 g/t Au), respectively 270 metres and 840 metres SW of Patwon, underscore the potential of this area, which is part of a larger 7-kilometre-long high-potential target zone (see Figures 2 and 3).
• A detailed induced polarization survey is currently underway over all three prospects on a 2.1 kilometre by 0.7 kilometre grid (see Figure 3). It is expected that this survey will be an efficient method to generate quality drill targets.

The Elmer Property and the adjacent wholly owned Duxbury Property provide Azimut with a controlling position over a 35-kilometre-long segment of a prospective greenstone belt. Both properties were staked following the Company’s predictive modelling for gold in the James Bay region using its proprietary AZtechMine^TM expert system.

Elmer comprises 276 claims covering 145.4 km² over a 22-kilometre strike length. Duxbury, located to the east, covers a further 13 km along strike. The projects are located 285 kilometres north of Matagami, 60 kilometres east of the municipality of Eastmain, and 20 kilometres west of the paved James Bay Road. The region benefits from quality infrastructure that includes major access roads, a hydro-power grid and airports.

Drilling contract and analytical protocol

The drilling contract was awarded to Chibougamau Drilling Ltd based in Chibougamau, Quebec. The hole diameter is BTW. Drilling took place from November 19 to November 30, 2019.

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 program has been made possible thanks to the financing completed in fall 2019 which involved the following six Quebec institutional funds:  Capital régional et coopératif Desjardins, CDPQ Sodemex Inc., Fonds de solidarité FTQ, Fonds régionaux de solidarité FTQ Nord-du-Québec, SIDEX s.e.c. and Société de développement de la Baie James.

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 Dr. Martin Tuchscherer, P.Geo., Chief Geologist.

About Azimut

Azimut is a mineral exploration company whose core business is 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 58.5 million shares outstanding.

Azimut holds the largest mineral exploration portfolio in Quebec. The Company’s edge against exploration risk is founded on systematic regional-scale data analysis and multiple concurrently active projects. This includes two regional strategic alliances with SOQUEM for six (6) gold properties in the James Bay region and three (3) major gold-copper properties in the Nunavik region.

Azimut’s other high-potential properties in the James Bay region comprise:

• 4 gold properties in the Eleonore camp (Eleonore South JV, Opinaca A, Opinaca B, Opinaca D);
• 6 copper and copper-gold properties with strong regional-scale footprints (Kukamas, Masta, Corvet, Kaanaayaa, Corne, Mercator).