Azimut Exploration Inc. [AZM-TSXV; AZMTF-OTC] said Wednesday March 18 that it has launched a 6,000-metre (30-hole) diamond drilling program on its 100%-owned Elmer property in the James Bay region of northern Quebec. The company said the program starts immediately with two rigs and will run until the end of April, 2020.
The announcement comes after Azimut recently reported 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 Elmer property.
Highlights from previous drilling include 3.15 g/t gold over 102.0 metres, including 10.1 g/t gold over 20.5 metres at the Patwon Prospect on the Elmer property. Azimut said the objective of the latest drill program is to expand the Patwon gold discovery, where the results of initial drilling indicate that gold-bearing mineralization is associated with three vein sets with different orientations.
Azimut said its management considers these results to be among the most significant gold exploration results in the James Bay region since the 2004 discovery of the Eleonore deposit, which is currently owned and operated by Newmont Goldcorp Corp. [NGT-TSX; NEM-NYSE].
Azimut shares responded to that news by rallying sharply from 50 cents on January 13, 2020, to $1.70 on February 19, 2010. On Wednesday, shares were down 12.72% or 14 cents to 96 cents and currently trade in a 52-week range of 32 cents and $1.77.
Azimut said the Patwon Prospect is part of a larger 7-km long high potential target zone on the property.
It also said significant additional drilling will be required to define the true width and extent of the discovery. “A ground geophysics survey (induced polarization) is currently underway over the discovery area and its vicinity to prepare for a more comprehensive upcoming drill program,” Azimut said in a January 14, 2020, press release.
On Wednesday, Azimut said it is fully financed for a planned 2020 exploration budget of $10.5 million that includes 18,000 metres of drilling on five gold and copper-gold properties in Quebec.
Meanwhile, other juniors have moved to pick up ground around this unfolding exploration play.
Pistol Bay Mining Inc. [PST-TSXV; SLTFF OCT Pink, OQS2-FSE] recently said it had struck a deal with an arm’s length vendor to acquire a land package consisting of 1,690 hectares and located 12.5 km southwest of the Azimut Elmer property.
Pistol Bay said its property is on strike on the same greenstone belt as the Elmer Project, which is separated from Pistol Bay’s land package by Dios Exploration Inc.’s [DOS-TSXV] K2 Gold Project.
Dios has said it plans to drill the K2 gold project this year. It said the project borders Azimut’s Elmer property to the west-southwest, along the same trend of Opinaca River deformation Zone, an undeveloped part of Lower Eastmain Greenstone belt.