Prospect generator Azimut Exploration (TSXV: AZM; US-OTC: AZMTF) has signed a joint venture agreement with KGHM International for its early stage Kukamas copper-gold property in the Eeyou Istchee James Bay region of Quebec.
Under the deal, KGHM International, a subsidiary of Polish firm KGHM Polska Miedź S.A, can earn a 50% interest in the property by spending $5 million over four years. KGHM’s investment begins in early 2023 with a $700,000 commitment to perform a high-resolution magnetic-electromagnetic heliborne survey, a detailed lake-bottom sediment survey, and focused prospecting on areas identified in the process.
Azimut will act as operator during this first phase of the agreement. Once KGHM has acquired a 50% interest in the property, it can complete a preliminary economic assessment (PEA) and an investment of $4.2 million to acquire a further 20% of the property.
The secondary option of the agreement can be extended up to three years. KGHM must pay a final cash instalment of $75,000 to Azimut if it does not fulfill this part of the agreement.
The Kukamas property covers a 41-km cumulative strike length along a highly prospective greenstone belt. Two main targets are shear-related copper-gold systems and intrusion-related nickel-copper-cobalt-PGE systems. Historical grab samples collected on the project have returned up to 10.63 grams gold per tonne and 20.7% copper.
Azimut is also actively exploring its Wapatik property under a JV with Australian firm Mont Royal Resources (ASX: MRZ) that was announced in September 2020. Mont Royal can earn up to 70% of the project, which is also located in the Eeyou Istchee James Bay region. In October, the partners announced the discovery of a second nickel-copper bearing intrusion at Wapatik. Mont Royal must invest an initial $4 million and a secondary $3 million along with delivering a PEA. Azimut is the operator.
Azimut’s most advanced project is its Elmer gold property. Also located in the Eeyou Istchee James Bay region of Quebec, the project is focused on a 35-km-long gold corridor known as the Elmer trend. In January 2020, Azimut announced the discovery of the Patwon zone at the project, and in October this year, the company received the Discovery of the Year award from the Mineral Exploration Association of Quebec (AEMQ) for its work on the Patwon zone. The best assay from the Patwon zone was 24.04 grams gold per tonne over 18 metres from 254 metres.
In addition, the company has acquired a major nickel position in the region with its James Bay nickel project.
At press time in Toronto, shares of Azimut were trading at 60¢ within a 52-week trading range of 49¢ and $1.75. The company has 79.3 million shares outstanding.