Azimut, Kennecott pair up

Montreal-based junior Azimut Exploration has partnered with Rio Tinto (RTP-N) subsidiary Kennecott Exploration to explore for gold and base metals over a vast region of Quebec.

In the first phase of the agreement, Azimut will deliver to Kennecott a mineral-potential study of a 500,000-sq.-km area with the objective of identifying exploration targets. The major will pay Azimut $40,000 for the information.

Next, for any targets that warrant follow-up work, Kennecott will spend $5,000 to $30,000 per target during a one-year assessment period. During that time, Azimut will be the project operator.

In the third phase, for each suitable target, Kennecott will have an exclusive right to enter into a joint venture with Azimut. Kennecott will earn a 60% interest per selected property by spending $1 million on exploration over four years, including $150,000 during the first year and at least $250,000 per year thereafter. In this phase, Kennecott will be the operator. Kennecott will also pay Azimut a $50,000 bonus for each selected property that reaches the drilling stage.

Thereafter, the major will have the option of acquiring an additional 20% interest by delivering a feasibility study within five years.

Earlier in the month, Azimut kicked off a nickel-copper-platinum exploration program in the Labrador Trough region of northernmost Quebec. The program entails prospecting and sampling over three wholly owned properties named Retty, Gillett Lake and De Romer.