The results of 19 drill holes are still pending
Abitibi Metals Corp. (CSE:AMQ, OTCQB:AMQFF; FSE:FW0) has begun drill testing the known eastern extension of its B26 polymetallic deposit in Quebec and is encountering encouraging results there as well as in the main central zone (see Figure 1). Holes #312 and #313 both intersected high-grade copper mineralisation at shallow depths.
#312 returned 1.31% CuEq over 23.55 metres starting at 114.15 metres depth, including 5.4% CuEq over 2.75 metres. #313 returned 2.68% CuEq over 25.5 metres starting at 189.0 metres depth, including 4.82% CuEq over 13.15 metres. The results from #312 and #313 are expected to fill in data gaps in the eastern extension of B26. The results now released exceed the grades returned in historical drilling. Results from three additional extension holes (#315 and #320 to #323) located beyond the edge of the deposit are pending. In total, the results of 19 drill holes are still pending.
Abitibi Metals plans to drill a total of 30,000 metres in the current 2024 field season. Of this, 13,500 metres of drilling have already been completed. The company currently has $18.0 million to complete the remaining 16,500 metres this year and a further 20,000 metres in 2025. The company plans to present a preliminary economic assessment (PEA) as early as 2025. Abitibi can acquire 80% of the project in an earn-in with the semi-public SOQUEM Inc.
Jonathon Deluce, CEO of Abitibi Metals, commented: “We are pleased to announce results from the eastern sector of the B26 deposit where we have intersected 2.68% CuEq over 25.5 metres in #313. We have been able to better define the mineralised zone at the eastern boundary of the B26 deposit. These are the first results from the eastern drilling, where we still have extension drilling pending in holes 315, 320 and 323, where we have seen positive results. As the copper price continues to break out, projects like B26, located in the world-class jurisdiction of Quebec, stand out globally for their potential to deliver critical metals at a time when there is significantly increasing demand for copper.”
Picture 1 – Copper results plan view
Conclusion: Abitibi Metals is in an enviable position for a mining junior thanks to the rapid, full funding of its earn-in. Abitibi will significantly shorten the seven-year period granted by its partner SOQUEM for the acquisition of 80 per cent of the B26 deposit. The company intends to complete the necessary work as early as next year: 50,000 metres of drilling will improve the quality of the resource and significantly increase the tonnage compared to historical data. At the end of the earn-in, Abitibi intends to present a preliminary economic feasibility study in 2025. The market is rewarding this determination and, with further good drilling results, should gradually price in the opportunity for a significantly larger deposit. The rising copper price provides an additional tailwind. The historical resource was based on a copper price of USD 5,000 per tonne. Copper is currently trading at over USD 10,000.
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