Azimut Exploration Inc. [TSXV-AZT; OTCQX-AZMTF] signed an option to joint venture agreement with Ophir Gold Corp. [TSXV-OPHR; OTCQB-OPHRF] for its wholly owned Pilipas property, located in Eeyou Istchee James Bay region of northern Quebec.
Under the agreement, Ophir can earn up to a 70% interest in the property from Azimut over three years by financing $4 million in exploration expenditures, and by making payments totalling six million in shares of Ophir and $100,000 in cash.
The Pilipas property (135 claims, 70.7 km2) is located along the Billy-Diamond Highway and adjacent to the Munischiwan project (Azimut-SOQUEM JV) and Elmer East project (Quebec Precious Metal Corp.). Pilipas is underlain by the Lower Eastmain greenstone belt, part of the La Grande subprovince of the Archean Superior province. The geoscientific database covering the project notably comprises a soil geochemical survey and a magnetic-electromagnetic survey.
Pilipas displays significant exploration potential for lithium-cesium-tantalum (LCT) pegmatites as well as for intrusion-related and volcanogenic massive sulphides gold-copper systems.
The property is in close proximity to the recent Ninaaskumuwin spodumene outcrop discovery made by Quebec Precious Metals on its Elmer East project. Pilipas hosts several identified outcropping pegmatites that have not been sampled for lithium, constituting quality exploration targets.
The property is also geologically situated along strike with the InSight prospect on the Munischiwan property, which returned up to 100.5 g/t gold, 435 g/t silver, 156 g/t tellurium and 1.67% copper (from grab samples). An induced polarization survey completed in 2019 on Munischiwan suggests that this prospective trend may extend north onto Pilipas.
Ophir will act as the operator during the option phase with the first-year minimum expenditure representing a firm exploration commitment.
Following the formation of a participating joint venture, if a party’s interest is diluted below 10%, it will convert to a 2% net smelter return royalty (NSR).
The parties are dealing at arm’s length. The agreement remains subject to regulatory approvals by the TSX Venture Exchange.
Azimut holds the largest mineral exploration portfolio in Quebec. Its wholly owned flagship project, the Elmer gold project, has advanced to the resource stage with a strong exploration upside. The company also controls a strategic land position for copper-gold, nickel and lithium.
The company uses a pioneering approach to big data analytics (the proprietary AZtechMine expert system) enhanced by extensive exploration know-how. Azimut’s competitive edge is based on systematic regional-scale data analysis and concurrently active projects. The company has 85.2 million shares issued and outstanding.