Centerra Gold (TSX:CG) has signed a definitive option agreement with Azimut Exploration (TSXV:AZM) for the Corvet and Kaanaayaa properties in Québec’s James Bay region.
Under the agreement, Centerra can earn up to a 70% interest in the properties through a two-stage process. This would require cumulative exploration expenditures of US$16 million ($23 million), cash payments totalling US$850,000, and delivery of a preliminary economic assessment (PEA) with a minimum 1 million gold-equivalent ounce mineral resource estimate.
The properties cover 556.3km² across 1,082 claims in the Eeyou Istchee James Bay region, spanning 57km along the La Grande-Opinaca subprovince structural boundary. Both projects were generated using Azimut’s AZtechMine expert system and are considered largely underexplored.
The Corvet Property comprises 623 claims covering 320.4km² near the Trans-Taiga Road. The property straddles the contact between the La Grande and Opinaca subprovinces and covers strong multi-element spatial associations in lake sediments.
Fieldwork has yielded copper and gold mineralisation in grab samples up to 7.86% copper (Cu) and 1.83 grams per tonne gold (Au).
Meanwhile, the Kaanaayaa Property consists of 459 claims across 235.9km² and hosts multi-kilometre geochemical anomalies in lake sediments. The Moly prospect, discovered in 2024, returned grab sample values up to 7.39g/t Au, 3.98g/t silver, 0.95% molybdenum, 0.33% bismuth, and 0.14% Cu.
Centerra can earn an initial 51% interest over four years by funding US$6 million in exploration expenditures and making US$250,000 in cash payments. The company has committed to spending US$1.25 million in year one, with minimum expenditures of US$1.5 million per property required to vest interest.
A second option allows Centerra to earn an additional 19% interest by delivering the PEA, incurring US$10 million in exploration expenditures, and making up to US$600,000 in cash payments over six years.
Azimut will operate during the first option phase, with Centerra assuming operations during the second option or electing to continue Azimut as operator until PEA studies commence.
An initial systematic till sampling program is scheduled to begin this month (October 2026) on both properties, leading to field validation next spring.
Centerra currently owns approximately 13.97 million Azimut shares, representing 12.67% of outstanding shares. The transaction requires TSX Venture Exchange approval.
Centerra Gold is a gold and copper producer and developer operating the Mount Milligan Mine in British Columbia, Canada, and the Öksüt Mine in Türkiye. It also owns and operates US Moly, a vertically integrated molybdenum business in the US comprising the Thompson Creek Mine in Idaho and the Langeloth Metallurgical Facility in Pennsylvania.
Write to Paula Fabe at Mining.com.au
Main image: Azimut Exploration
