Azimut Exploration Inc – First Quarter Report – November 30, 2017 p.36 of 44
NUNAVIK – URANIUM
North Rae Property
Azimut considers Nunavik to be highly prospective for large-tonnage uranium deposits related to intrusive rocks in high-grade metamorphic environments. Azimut’s only uranium property in Nunavik, the North Rae Property (1 claim, 0.45 km2), is located in a part of the eastern Ungava Bay region that management considers to be a new uranium province in Canada.
The major uranium company AREVA also has a land position in the same area.
The North Rae Property is located about 20 kilometres from the coastal town of Kangiqsualujjuaq and 160 kilometres northeast of the town of Kuujjuaq. It covers uranium targets along the contact between the Proterozoic metasedimentary rocks of the Lake Harbour Group and the Archean granitized basement.
The potential of the North Rae Property is based on its geochemical signature, the association with anatectic granites and the spatial relationship with deep-seated structures.
On the nearby Cage Property, AREVA drilled more than 10,000 metres in 2009 and reported 14 mineralized zones with grades up to 9.34% U3O8, mostly hosted in metasedimentary rocks of the Lake Harbour Group, which it called “an important uranium-thorium province” in a report filed in 2007.
The exploration model is a large-tonnage, disseminated uranium deposit hosted by an intrusion and its country rocks. A well-known example of this type is Rössing in Namibia, one of the world’s largest uranium mines. Proximal secondary concentrations along late syn-intrusive to post-intrusive brittle or ductile-brittle faults are also considered.
North Rae shares strong similarities with the footprints of several major uranium sites in Quebec, and with the neighbouring Central Mineral Belt in Labrador, a well-known prospective region for uranium.
From 2006 to 2009, a dozen mineralized zones were discovered at surface on the North Rae Property and in its vicinity (former properties held by Azimut), with a cumulative length of 17 kilometres and grades up to 3.3% U3O8.
The zones show excellent spatial correlation with uranium anomalies identified by geophysical surveys flown over the North Rae Property and other former adjacent properties. Many targets have yet to be field-tested, and many mineralized zones remain open.
No major work has been conducted on the North Rae Property since 2009 given the volatility of the uranium market, the major nuclear incident at Fukushima in March 2011, and the current uncertainty regarding the development of uranium projects in Quebec.
The North Rae uranium project benefits from several strategic advantages, notably the potential for a large and shallow resource base amenable to open pit mining, and the short distance to port facilities on the Ungava Bay coast, which are near deep sea water, a permanent airport and other infrastructure.
For Q1 2018, Azimut did not incur any claim renewal expenditures ($200 – Q1 2017) or any exploration expenditures ($Nil – Q1 2017). The North Rae Property was fully impaired because no E&E expenditures were planned due to the uncertainty surrounding the uranium industry in Quebec.
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Social acceptability of a project by the local community is required as is it everywhere else.
At least 10 active uranium exploration projects see the future value of defining a resource.
