Observe: Quebec is proven in orange within the Canada map above.
This text first appeared in ‘Development Investing Group’ on April 4, 2023, however has been up to date for this text.
Azimut Exploration Inc.
Azimut Exploration Inc. (“Azimut”, “AZM”) [TSXV:AZM] (OTCQX:AZMTF) is a Canadian junior explorer with ~30 exploration initiatives/properties in Quebec, Canada. They focus primarily as a mission generator and a JV accomplice in growth initiatives throughout gold, copper, nickel, lithium and many others in Quebec, Canada.
Azimut state they’re “the most important declare holder in Quebec for Au, Co, Ni, Li”. Their 30 properties are unfold over 8,781 sq. km.
Azimut Exploration 5-year value chart – Worth = CAD 1.20 (supply)
Elmer Gold Property (100% AZM)
Azimut’s flagship is their 100% owned Elmer Gold Property. It’s due for a maiden useful resource announcement quickly. It’s deliberate to be an preliminary open pit mine adopted by underground mining because the Patwon deposit is 860m deep. The deposit has a wider mineralized zone (>2 g/t Au) and excessive grade zones (>5 g/t Au). The deposit stays open at depth and alongside strike with different gold discoveries already made close by together with at a parallel zone (not proven beneath, see web page 14) 300m to the north of the primary Patwon Zone. There’s potential for gold findings alongside a 35km development on the Elmer Property.
Elmer Gold Mission (Patwon Gold Zone orebody mannequin) in Quebec, Canada (supply)
Azimut’s Quebec properties (contains JV initiatives) (supply)
Observe: Extra particulars on all Azimut’s initiatives right here.
AZtechMine™
Azimut states that the Firm “generates mineral exploration targets of high quality utilizing AZtechMine™, the Firm’s proprietary predictive modelling methodology that applies specialised analytics to massive geoscientific databases.”
AZtechMine™ has been used extensively throughout Quebec and James Bay to establish goal properties for Azimut to discover additional (supply)
This text will now focus totally on Azimut’s lithium properties.
Azimut’s lithium initiatives
Azimut’s lithium properties/initiatives embody (all in Quebec, Canada):
Pikwa Property (50% AZM: 50% SOQUEM) (261 sq. km) – Lies straight adjoining to the western strike extension of Patriot Battery Metals’ Corvette Property. Azimut state: “Geologic and magnetic information strongly counsel the existence of a 14-kilometre-long strike extension onto Pikwa of the identical geologic development internet hosting the spodumene-bearing pegmatite our bodies on Corvette. Rock sampling information from Pikwa…..returned extremely anomalous values in lithium (as much as 447 ppm Li) and different related pathfinder parts, together with tantalum (as much as 79.2 ppm Ta), cesium (as much as 167 ppm Cs) and rubidium (as much as 960 ppm Rb). This vary of values will be indicative of proximal lithium mineralization. The lake sediment footprints for lithium and different pathfinder elements-Cs, Rb, Gallium (Ga), Tin (Sn)…..additional underscoring the property’s robust potential for lithium exploration.” Corvet Property (100% AZM) (282 sq. km) – Lies south of Pikwa and has excellent indicators for lithium (see purple patches within the map beneath). Azimut state: “The property covers an excellent exploration goal represented by an intensive and outstanding 26-kilometre-long lithium anomaly in lake sediments coupled with robust Rb, Cs, Ga and Sn footprints.” Kaanaayaa Property (100% AZM) (216 sq. km) – Has a 25.6 km strike size and a number of other coincidental Li-Cs-Rb-Ga anomalies.
Observe: All three of the above properties look extraordinarily promising targets for lithium exploration, particularly in our view Corvet. It might be ironical if ‘Corvet is the following Corvette’.
Map displaying the Pikwa, Corvet, and Kaanaayaa Properties all close to Patriot Battery Metals’ Corvette Mission (supply)
Galinée Property (50% AZM: 50% SOQUEM) (290 sq. km) – Lies straight south and adjoining to Winsome Assets’ Adina Property the place Winsome’s drill outcomes embody 107.6 m @ 1.34% Li2O simply close to the boundary (see map beneath). Galinée has 33km of strike size. Azimut state: “Azimut’s administration considers it very possible that comparable pegmatite our bodies are current on Galinée. This view is supported by the geology and lake sediment information collected by Azimut and SOQUEM…..The northern a part of Galinée is marked by a robust lithium footprint, spatially related to well-defined anomalies in Cs, Rb, Ga and Sn, all of that are pathfinder parts for spodumene-bearing pegmatites.”
The Galinee property is situated adjoining and south to Winsome’s Adina Mission, very near main drill hits (supply, web page 21)
James Bay Lithium Mission (“JBL”)(100% AZM) (672 sq. km) – Azimut state: “[JBL] covers robust regional Li, Cs, Rb, Ga and Sn anomalies in lake sediments that will reveal important spodumene-bearing pegmatite our bodies in shut neighborhood (classically on the kilometre scale or much less).”
Location map displaying all Azimut’s James Bay lithium properties (supply)
Azimut’s lithium and gold alternative summarized (supply)
Catalysts
The important thing catalysts in 2023 embody the Elmer Gold Mission maiden useful resource and exploration throughout a number of lithium initiatives, in addition to another multi-metal (nickel, gold, copper, PGE) mission exploration outcomes; all in Quebec, Canada.
Azimut states: “The Firm will undertake its first lithium-specific exploration applications in 2023 by itself (Corvet, Kaanaayaa), collectively with SOQUEM (Pikwa, Galinée), and/or by way of potential new choice agreements (JBL).”
The chart beneath contains Azimut’s 2023 plans and catalysts throughout all initiatives.
Azimut’s 2023 initiatives’ plans (supply)
Administration and shareholders
Azimut’s group (together with Administrators) have robust expertise in exploration in Canada, however appears to be like to be a small administration group solely. Extra particulars right here.
President & CEO Jean-Marc Lulin is a senior mining government {and professional} geologist with greater than 30 years of expertise in North America, Africa and Europe. He designed the mineral potential focusing on methodology (“AZtechMine™”) utilized by Azimut.
Administration and Board (supply)
High shareholders
Insider possession is at ~5%, noting Agnico Eagle Mines holds 10.1%.
Valuation
Azimut’s present market cap is C$96m with web debt as zero. As of Feb. 2023 money ranges had been at C$8.6m.
Analyst ranking is an ‘outperform’ with a value goal of C$3.60, representing 200% potential upside.
Dangers
Falling gold, lithium and to a lesser diploma nickel costs. The same old mining dangers – Exploration, allowing, funding, manufacturing, accomplice, environmental dangers, and mission delays. The large portfolio of ~30 initiatives would require important future funding each to fund exploration so anticipate there could also be some inventory dilution. That is diminished considerably by Azimut being a mission generator and utilizing mission companions. This will additionally restrict the potential upside. Enterprise dangers – Administration, liquidity, debt, and foreign money danger. Sovereign danger – Low in Canada. Inventory market dangers – Dilution, lack of liquidity (greatest to purchase on native change – TSXV), market sentiment.
Key current information
We have now coated a lot of the current information within the article. You’ll be able to learn all of the Firm information right here.
April 24, 2023 – Azimut and Mont Royal Define Nickel-Copper mineralization alongside a 750-metre strike size at Wapatik March 16, 2023 – Azimut Feedback on Two Information Releases from Activist Shareholders Feb. 23, 2023 – Azimut Supplies Strategic Replace.
• Largest mineral exploration portfolio in Quebec with at the least 10 work applications deliberate for 2023.
• Elmer Gold Mission advancing towards the mineral useful resource estimate stage, with an open-pit situation as the primary section.
• Main strategic land place for lithium with robust and in depth targets, together with two initiatives with important discoveries straight on strike on adjoining properties. Aggressive subject evaluation section to be carried out as early as potential after the winter season.
• Main strategic land place for nickel-copper-cobalt-PGE (200 targets) following superior regional focusing on for large sulphide deposits of the Eagle’s Nest goal kind.
• Deal with the Eeyou Istchee James Bay area, probably the most potential areas in Canada with wonderful group relationships, governmental help for exploration actions and infrastructure, together with paved highways, airports and a world-class hydro-electric energy grid……..
Additional studying
Azimut’s James Bay Nickel Mission/Portfolio (112 nickel targets) (supply)
Azimut Exploration is a multi-commodity explorer in Quebec, Canada (supply)
Conclusion
Azimut is the most important declare holder in Quebec, Canada for Au, Co, Ni, Li with possession of 30 properties unfold over 8,781 sq. km. That alone carries substantial worth.
Azimut holds main exploration properties for gold, copper, nickel and lithium and is advancing its flagship Elmer Gold Property in direction of a maiden useful resource.
James Bay Quebec is a robust area for infrastructure (main street entry, hydro-electric energy grid, airports) and potential massive scale future lithium initiatives.
Close to time period catalysts embody a maiden useful resource on the Elmer Gold Property and any exploration outcomes throughout 10 properties being explored in 2023; notably from their most promising lithium properties in Quebec (close to Corvette and Adina).
Administration appears to be like skilled however solely a small group and seems to maneuver considerably slowly at exploration; maybe given the big portfolio of initiatives regardless of the mission generator mannequin.
Valuation appears to be like very enticing on a present market cap of C$96m supplied the corporate can efficiently progress one or a number of of their initiatives. The inventory has lately risen considerably however that is warranted based mostly on the lithium potential of the properties subsequent to Patriots’ Corvette and Winsome’s Adina initiatives, the 2 greatest lithium exploration performs in Canada in 2022. Analyst ranking is an ‘outperform’ with a value goal of C$3.60, representing 200% potential upside.
Dangers revolve principally round exploration success and funding; however are considerably mitigated to the draw back by having the Elmer Gold Mission and upcoming useful resource. Please learn the dangers part.
We view Azimut Exploration as an amazing speculative purchase (excessive danger/excessive reward), appropriate for a 5-year-plus time-frame, particularly in case you are optimistic on the outlook for lithium, gold and nickel exploration in Quebec Canada.
As common all feedback are welcome.
Editor’s Observe: This text discusses a number of securities that don’t commerce on a significant U.S. change. Please concentrate on the dangers related to these shares.