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Interpretation Report, High Resolution Aeromagnetic and Gamma-Ray Spectrometric Survey, Rex Project

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Interpretation Report, High Resolution Aeromagnetic and Gamma-Ray Spectrometric Survey, Rex Project GM 66127 INTERPRETATION REPORT, HIGH RESOLUTION AEROMAGNETIC AND GAMMA-RAY SPECTROMETRIC SURVEY, REX PROJECT INTERPRETATION REPORT High Resolution Aeromagnetic and Gamma-ray Spectrometric Survey PROJECT: REX Puvirnituq, Nunavik, Northern Quebec For: 110, rue De la Barre Bur. 214, Longueuil (Québec) Canada, J4K 1A3 Fl Tel.: (450) 646-3015 A7 IN1 ) 1- Fax : (450) 646-3045 By: Géophysique Camille St-Hilaire Inc. 678, Route des Pionniers, CP53 Rouyn-Noranda (Québec), Canada, J9X 5C1 Phone: (819) 762-2838 Project: P10-11-040 December 2010 MRNFP - SECTEUR DES MINES REÇU LE 1 6 DEC. 2011 a: Bureau rigional - Montréal 11602 630, INTERPRETATION REPORT High Resolution Aeromagnetic and Gamma-ray Spectrometric Survey PROJECT: REX Puvirnituq, Nunavik, Northern Quebec FOR : AZIMUT EXPLORATION INC. tâNi66 y, 2 7 DECEMBER 2010 REÇU AU filARNF 1 6 ozr,. , ~~IiiECÉOd DES~d~~ MINERS i 0 Z0 Table of Content 1.0 INTRODUCTION 1 2.0 GEOLOGICAL CONTEXT 3 2.1 Property Description 3 2.2 The Superior Province 3 2.3 The Minto Subprovince 4 2.4 The Duquet Belt 8 2.5 Economic Geology 9 3.0 PRESENTATION OF THE MAGNETIC METHOD 12 3.1 Fundamental 12 3.2 Enhancement of Magnetic Grids 13 3.3 Qualitative Data Interpretation 14 3.4 Quantitative Data Interpretation 14 3.4.1 Power Spectral Analysis 14 3.4.2 Euler Deconvolution Method 15 3.4.3 Depth Calculation, Peters's Technique 16 4.0 PRESENTATION OF THE SPECTROMETRIC METHOD 19 4.1 Fundamental 19 4.2 Distribution of the radio-elements in rocks and soils 21 4.3 Geological Mapping 22 4.4 Direct Detection of Mineralization 23 4.5 Enhancement of Gamma-Ray Spectrometric grids 25 5.0 SURVEY DATA INTERPRETATION 26 5.1 Magnetic Data 28 5.2 Spectrometric Data 29 5.3 EM Data from SOQUEM Survey 29 6.0 CONCLUSIONS 30 REFERENCES 32 i List of Figures Figure 1: Surveyed Blocks 2 Figure 2: Regional Geology 6 Figure 3: Metamorphic zones and major supracrustal belts of the north-central Minto block 7 Figure 4: The Earth Magnetic Field 12 Figure 5: Total Field Anomaly Shape (Field Inclination: 90°) 18 Figure 6: A Typical Gamma-Ray Spectrum 20 Figure 7: Survey Limits: Novatem (black) and Soquem (red) 27 Figure 8: Total Magnetic Intensity Reduced to Pole 35 Figure 9: First Vertical Derivative 36 Figure 10: Analytic Signal 37 Figure 11: Magnetic Automatic Gain Control 38 Figure 12: Magnetic Tilt 39 Figure 13: Air Absorbed Dose Rate 40 Figure 14: Gamma-Ray Spectrometry Ternary Map 41 Figure 15: Potassium (%) 42 Figure 16: Equivalent Uranium (ppm) 43 Figure 17: Equivalent Thorium (ppm) 44 Figure 18: Ratio U/Th 45 Figure 19: Ratio U/K 46 Figure 20: Ratio Th/K 47 Figure 21: Interpretation Map with Au and Cu Values 48 Figure 22: Interpretation Map with Mo and Co Values 49 Figure 23: Interpretation Map with Rare Earth (Eu and Ce) Values 50 Figure 24: Interpretation Map with La and Y Values 51 List of Tables Table 1: Survey Specifications 1 Table 2: Windows Used in Spectrometric Surveys 20 Table 3: Mineral prospect and their geophysical signature 28 Table 4: Selected Exploration Targets 31 ii Interpretation Report, Mag.-Spec Survey, REX Project 1.0 INTRODUCTION This report concerns the interpretation of airborne magnetic and spectrometric data acquired from July 18th to September 14th, 2010 by Novatem Inc. for Azimut Exploration Inc. (Azimut). Survey was flown over three adjacent blocks (AB, CE and RWI; figure 1), which make part of the 1 REX project. Blocks are located close to the lake Couture, approximately 130 km East of Puvirnituq, Nunavik, Northern Quebec. Table 1 defines survey specifications, including number t of line-kilometers acquired on each block. This project was initiated on targeting results of Azimut's regional scale rare earth potential 1 modelling across all of Quebec and Labrador. Primary goal of this airborne geophysical works was providing high quality digitally recorded and processed geophysical data in order to assist geological mapping and to indicate structures potentially favourable to the presence of economic mineralization. Total magnetic field data and spectrometric data were respectively sampled with an interval of i 4.4 and 44 metres along traverse lines and tie-lines. Aircraft, magnetometer and spectrometer sensors mean terrain clearances were: 1 Aircraft and instrument mean terrain clearance: Block AB: 98.8 m Block CE: 90.8 m Block RWI: 119.9 m Following sections present: The geological context (section 2) An overview of the magnetic method and interpretation techniques used (section 3) An overview of the spectrometric method and interpretation techniques used (section 4) 1 The interpretation results (section 5). Table J: Survey Specifications Traverse Control Line Traverse Control Line Block Line-Km Direction Direction Spacing (m) Spacing (m) AB N35°E N125°E 200 2 000 11 124 1 CE N20°E N110°E 200 2 000 2 213 RWI N70°E N160°E 200 2 000 2 539 Total line-km 15 876 1 1 Azimut Exploration Inc. 1 Interpretation Report, Mag.-Spec Survey, REX Project 0000 _.. 450000 460000 470000 400000 490060 520000 5 0000 520000 530000 . ~ ~. .... ....,.. _ _ v _... 4 ..'i 3~ô .•'Oi. ,.M°... '..x:. 'h ". .'~~.._.-~. : .tir .é...,w„/m_ /.9%//.:.ï......w..i .... t . K . 40000 450000 460000 Figure 1: Surveyed Blocks 2 Azimut Exploration Inc. Interpretation Report, Mag.-Spec Survey, REX Project 2.0 GEOLOGICAL CONTEXT 2.1 Property Description The REX mag/spec airborne survey includes three adjacent blocks, AB, CE and RWI. Blocks are located close to the lake Couture, approximately 130 km East of Puvirnituq, Nunavik, Northern Quebec. Table 1 defines survey specifications, including number of line-kilometers acquired on each block. The survey area is located between longitudes 74°42.5' and 75°48' West and latitudes 59°58' and 60°52' North. The survey covers part of the NTS sheet 340 and 35B, between the Ungava Bay to the West and the Labrador border to the East. This territory is under the jurisdiction of the Nunavik regional administration, under the authority of the Puvirnituq municipality. The main river in the area, the Povungnituk River, which flows from North-East to South-West, is an important river, with rapid and elevated rate flow over most of its path. A multitude of small to large-sized lakes are scattered throughout the area. The most important are Lac Couture, Lac Duquet and Lac Ikurtuuq. With some exception in the main valley bottoms, the forest cover is absent. Soil cover is rare, and most of the area consists of lichen-covered rock outcrops or fields of blocks alternating with mossy, grassy or flowery zones. The area hosts a variety of animals including polar bears, wolverines, arctic fox, lemmings, hares, as well as numerous species of birds. 2.2 The Superior Province (Adapted from Nadeau, 2000) The REX property lies in the Duquet and Akuaraaluk belts of the Minto block, northeastern Archean Superior Province of Quebec. (figure 2). The Superior craton (or Superior Province) forms the core of the Canadian Shield at the heart of the North American continent. It extends from Quebec in the east to eastern Manitoba in the west. The western margin extends from northern Minnesota through eastern Manitoba to northwestern Ontario. The Archean Superior Province is divided into four types of litho-tectonic domains based on lithology, structural fabric, metamorphic grade, metallogenic features, and geophysical signatures (Card and Ciesielski 1986). Volcano-plutonic subprovinces are characterized by meta-volcanic supracrustal sequences, intruded and bound by large felsic plutons. They display irregular structural patterns and relatively low-grade greenschist-subgreenschist metamorphism. Meta- sedimentary subprovinces are characterized by pelitic and turbiditic wacke, and minor granitic intrusions. Plutonic subprovinces consist of tonalite gneisses containing abundant mafic 3 Azimut Exploration Inc. Interpretation Report, Mag.-Spec Survey, REX Project xenoliths of metavolcanic or intrusive origin. High-grade gneiss subprovinces are characterized by upper amphibolite and granulite facies ortho-gneisses and para-gneisses, frequently intruded by tonalite to syenite intrusions containing pyroxene. The high grade gneiss subprovinces display regionally domal pattern and high strain polyphase deformation (Card and Ciesielski 1986; Goodwin 1996; Bédard 2003). In Quebec, the Superior Province is broadly divisible into the east-west striking, volcaniclastic southern-western Superior Province and the more plutonic, N-S striking northeastern Superior Province (Goodwin 1996). The northeastern Superior Province, or Ungava craton, is further separated into the Bienville igneous subprovince and the Minto high-grade gneiss subprovince (Card and Ciesielski 1986; Goodwin 1996; Percival and Mortensen 2002). The REX property lies in the Duquet belt area of the Minto subprovince. 2.3 The Minto Subprovince (From Nadeau, 2000 and Percival and Skulski, 2000) The Minto subprovince, also known as the Minto block, is one of Earth's largest granulite terranes. Located in northern Quebec, it consists dominantly of granitic rocks with sparse supracrustal remnants that record low-pressure, high-temperature metamorphism to the amphibolite and granulite facies at ca. 2.7 Ga. Much of the region is underlain by plutonic rocks, including igneous charnockitic bodies that provide little evidence of metamorphism. In contrast, pelitic assemblages in low-grade greenstone belts and their higher-grade shoulders define four metamorphic zones: 1) sub-staurolite-grade slates, found only in the Duquet belt 2) staurolite — andalusite — sillimanite — garnet-zone schists, present in all belts 3) marginal garnet — sillimanite ± kyanite migmatites 4) garnet — sillimanite ± cordierite and garnet — orthopyroxene granulites, as enclaves within plutonic units. The Minto subprovince is bounded to the south by the Archean plutonic Bienville subprovince, and to the east and north by the Labrador Trough and the Cape Smith Belt, respectively (Card and Ciesielski 1986; Percival et al.
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