Symbol: AZM.TSX Venture
LONGUEUIL, QC, May 26 /CNW Telbec/ - Azimut Exploration Inc. ("Azimut") announces the signing of a Letter of Intent with Aurizon Mines Ltd. ("Aurizon") regarding the Rex South property, a major exploration project for gold, copper and rare earth elements. The property comprises 1,274 claims covering a surface area of 555 km2 in Nunavik, Quebec, about 145 km southeast of the community of Puvirnituq (see press release of May 18, 2010).
Rex South is 42 km long by 15 to 20 km wide and displays a strong exploration potential based on a combination of the following factors:
- An extensive multi-element geochemical footprint in lake-bottom
sediments, including anomalies in arsenic, antimony, gold, copper,
molybdenum and rare earth elements;
- A geophysical signature indicating a major structural boundary;
- The presence of several mineralized prospects, including high-grade
gold (up to 33 g/t Au) and copper (up to 6.4% Cu).
Aurizon can acquire an initial 50% interest in the project by performing $5.0 million in exploration work over a five (5)-year period, and an additional 15% interest upon delivery of a bankable feasibility study. Azimut will be the operator during the first twelve (12) months. The principal terms of the Letter of Intent are:
- Cash payments of $150,000 on signing, $130,000 on the first anniversary
date, and $100,000 on each of the second, third and fourth
anniversaries for a total of $580,000;
- Minimum work expenditures of $1,000,000 the first year (firm
commitment), and $700,000, $1,000,000, $1,000,000 and $1,300,000 during
subsequent years for a total of $5,000,000.
Aurizon will also have the option to earn an additional 15% interest by:
- Making cash payments of $70,000 per year for five (5) years for a total
- Incurring minimum work expenditures of $700,000 per year over a five
- Delivering a bankable feasibility study.
Aurizon is a gold producer with a growth strategy focused on developing its existing assets in the Abitibi region of northwestern Quebec and increasing its asset base through accretive transactions.
Azimut is a mineral exploration company using cutting-edge targeting methodologies to discover major ore deposits. This press release was prepared by geologist Jean-Marc Lulin acting as Azimut's Qualified Person under NI 43-101.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Azimut Exploration Inc
For further information: For further information: Jean-Marc Lulin, President and CEO, (450) 646-3015, Fax: (450) 646-3045, email@example.com, www.azimut-exploration.com