Symbol: AZM.TSX Venture

LONGUEUIL, QC, Oct. 17, 2017 /CNW Telbec/ - Azimut Exploration Inc. ("Azimut" or the "Company") (TSXV: AZM) is pleased to announce the discovery of a high-grade gold-bearing vein system on the Eleonore South JV Property in the James Bay region of Quebec. Channel composite samples assayed up to 79.6 g/t Au over 4.25 m and 79.5 g/t Au over 5.87 m. The ongoing exploration program includes 18 recently completed drill holes (results pending); additional drilling is scheduled for January 2018. This new gold discovery confirms the highly prospective environment at Eleonore South. The discovery area is located 15 kilometres from the major Eleonore gold mine, owned and operated by Goldcorp Inc (see attached figures 1 and 2).

The channel sampling results reported below were obtained on the Moni Prospect following mechanical stripping that significantly enlarged the previous exposure (see press release of November 3, 2016). The current work phase is part of the $3.9-million JV 2017-2018 program, which includes 8,000 metres of diamond drilling (see press release of July 20, 2017).

The Eleonore South Property is a three-way joint venture between Azimut Exploration Inc., Eastmain Resources Inc. (TSX: ER) and Goldcorp Inc. (TSX: G; NYSE: GG). Ownership in the Property is as follows: Azimut 26.6%, Eastmain 36.7% and Goldcorp 36.7%.

Azimut is operator of the current program.

Highlights (see attached figures 3 to 5)

• Intrusion-hosted high-grade gold-bearing quartzo-feldspathic vein system of up to 6 metres in width over a strike length of 36 metres, oriented NE-SW and open along strike. From NE to SW, the best composite intervals are:

• Another vein, located about 15 m SE from the vein described above, returned the following composite intervals:

• The 17 regularly spaced channels were cut generally perpendicular to vein strike. Channel sampling in the newly exposed area comprises 82 samples with a cumulative length of 64.95 metres. True widths may range from 70% to 100% of apparent widths at surface.
• The potential for a kilometre-scale strike extension to the southwest of this high-grade vein system is supported by:
• a newly discovered prospect ("the 101 Prospect") that returned up to 101.0 g/t Au in grab samples, located about 400 metres southwest of the Moni Prospect; 
• a 1,100-metre-long NE-SW trend of strong gold-arsenic soil anomalies on strike with both the Moni and 101 prospects; and
• an apparent correlation with a NE-SW magnetic trend.

Description of the Moni Prospect

Individual sample results are presented on figure 3 and composite intervals on figure 4. Reported gold values are uncut. The samples weigh 3.75 kg each, on average. All channel samples have been individually described and preliminary mapping of the stripped outcrop has been completed. Key features can be summarized as follows:

• The high-grade gold vein system is related to a network of quartz-feldspar veins and veinlets hosted in strongly altered tonalite. The mineralized facies vary laterally from grey or black quartz veins to a quartzo-feldspathic pegmatite with trace to 1-2% sulphides (mostly arsenopyrite with lesser pyrite, pyrrhotite), and small amounts of tourmaline and scheelite. Alteration minerals are silica, albite, biotite and chlorite.
• 345 native gold grains have been observed in 42 of the 82 channel samples.
• The tonalite is pervasively altered (albite, silica) and displays a network of regularly spaced quartz veins and veinlets with feldspathic selvages (sheeted veins).
• The NE-SW-trending gold-bearing system is deformed with some evidence of folding. The vein system appears roughly parallel to the steeply dipping foliation trend.

All significant channel results from the Moni Prospect are presented below for the main vein system and a second lateral vein. These results include channels 01, 02, 03 and 04, which were sampled in 2016. Several samples terminate in mineralization where it meets overburden, warranting further stripping.

The composite mineralized results for the main vein system are as follows, from NE to SW:

The lateral high-grade vein, for which the geometry and possible link to the main vein are not yet fully understood, yielded the following composite channel results:

Only one exploration drill hole from a previous program has been adequately positioned to intersect the vein system. Hole ES16-48 returned 8.88 g/t Au over 2.50 m from 6.10 m to 8.60 m along the hole.

Exploration Potential

Exploration work since 2016 has demonstrated the presence of a 4-kilometre-long by 500-metre-wide gold-bearing corridor related to a hydrothermally altered tonalite intrusion and its contact with metasediments.

At Eleonore South, the primary target types are:

• A tonalite-hosted high-grade gold-bearing quartzo-feldspathic vein system ("Moni-type");
• Tonalite-hosted kilometre-scale zones of considerable width characterized by a quartz-albite-biotite stockwork, or a variable density of quartz-albite veinlets, with small amounts of sulphides (arsenopyrite, pyrite, pyrrhotite) and frequent native gold grains.

Both types are interpreted to be part of a late-magmatic hydrothermal system related to the tonalite intrusion. In this geological environment, the surrounding metasediments may also constitute potential targets depending on favourable lithological and structural settings.

For reference, the nearby Eleonore mine is a sediment-hosted gold deposit. High-grade quartz-feldspar-arsenopyrite-pyrrhotite veins with visible gold that grade into pegmatitic material have been described in the mine. Of particular interest, the pegmatite at the mine is the same age as the known tonalite on the Eleonore South Property (2.62 billion years).

Program Update

• Drilling: Phase 1 (18 holes totalling 4,443 m) is now completed and results are pending. Phase 2, totalling 3,600 metres, will run from January to March. The drilling pattern for this next phase will be defined using the highly encouraging surface results from the Moni Prospect and the pending Phase 1 drill results.
• Heliborne high-definition magnetic survey: A total of 980 line-km has been flown at 25-m line spacing over the prospective corridor and its surroundings. Results are pending.
• Property-scale lake-bottom sediment geochemical survey: The results of 121 samples collected early this summer have been received and are currently under review.
• Property-scale prospecting: This work is underway. To date, 301 rock samples have been collected in several target areas.

Partial prospecting results revealed the discovery of the 101 Prospect, which returned 101.0 g/t Au in a grab sample. Preliminary field observations indicate tonalite-hosted grey to black quartz centimetre-scale veins with feldspar and native gold striking NE-SW. These veins are 400 metres southwest of the Moni Prospect and may represent its lateral extensions. Additional prospecting in this area is underway, as well as detailed soil geochemistry.

The 2017-2018 program is operated by Azimut under the supervision of Dr. Jean-Marc Lulin and the field direction of François Bissonnette, both professional geologists and qualified persons under National Instrument 43-101. This press release was prepared by Jean-Marc Lulin, acting as Azimut's qualified person.

Analytical Protocol

Channel samples were sent to ALS Minerals in Val-d'Or, Quebec. All samples have been analyzed by fire assay with atomic absorption and gravimetric finish. For samples in which native gold had been observed and high-grade gold results were therefore expected, the crushers and pulverizers were systematically cleaned with barren material between samples. Azimut applied industry-standard QA/QC procedures to its program.

About Azimut Exploration

Azimut is a mineral exploration company with its core business centred on target generation and concurrent partnership development. Targets are identified using advanced processing of large geoscientific databases enhanced by extensive exploration know-how. The Company has 45.4 million shares outstanding, with 54% held by Quebec-based large financial institutions, insiders and several individual shareholders.

Azimut's main exploration successes are directly related to its pioneering proprietary approach using Big Data analytics. This includes the early recognition of the gold potential in the Opinaca region (notably the Opinaca C block, now part of Eleonore South) and the discovery of two new mineral provinces in Nunavik (the Ungava Bay Uranium Province and the Polymetallic Rex Trend).

The Company holds a strategic position for gold and base metals in Quebec, including one of the largest exploration portfolios in the James Bay region (20 properties covering 3,966 claims or 2,059 km²). In 2017, Azimut's exploration budget is $6 million, 76% of which is funded by partners.

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.

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