Abitibi Metals: Resource estimate jumps by over 60% in all categories

The wait was worth it! After the shares of copper and gold explorer Abitibi Metals (WKN A3EWQ3 / CSE AMQ) were suspended from trading yesterday, CEO Jon Deluce’s company presented its updated resource estimate for the polymetallic B26 project after the close of trading. And based on the first drilling phase in 2024 alone, as well as metal prices adjusted to current market conditions, Abitibi Metals was able to increase the B26 resources by more than 60% in both the indicated and inferred categories!

A total of 13,510 meters of drilling spread over 44 drill holes were included in the new resource calculation. The ongoing drilling of phase two (16,500 meters of drilling), the first results of which are to be presented next week according to Abitibi, have not yet been included and the mineralization of the B26 deposit, which begins at the surface, remains open for expansion at depth and laterally.

So, with phase one of drilling alone, the indicated resource was increased by 62% from 6.9 million tons to 11.3 million tons. The average grades are now 1.23% copper, 1.27% zinc, 0.46 g/t gold and 31.9 g/t silver. According to Abitibi’s calculations, this corresponds to 2.13% copper equivalent.

This means that the indicated resources now contain 307.9 million pounds of copper, 316.9 million pounds of zinc, 168,200 ounces of gold and 11.6 million ounces of silver – or 532.3 million pounds of copper equivalent!

In the inferred category, the company was able to increase resources by 63% from 4.4 to 7.2 million tons, with average metal grades now being 1.56% copper, 0.17% zinc, 0.87 g/t gold and 7.4 g/t silver, or 2.21% copper equivalent. This brings the amount of contained metal in this resource category to 246.0 million pounds of copper, 27.3 million pounds of zinc, 200,800 ounces of gold and 1.7 million ounces of silver, which equates to 348.8 million pounds of copper equivalent.

Amount of contained metal increases significantly

Overall, this results in a significant increase in the amount of metal contained compared to the 2018 resource estimate. Copper is up 38%, zinc is up 15%, gold is up 29% and silver is up 22%.

Abitibi Metals attributes this significant increase primarily to a refined 3D model of the mineralization, which also contains the updated commodity prices. According to the company, the calculation method used is mostly the same as that used for the resource calculation in 2018. In addition, a more detailed view of the model allowed for a better connection of the mineralization intersections. And, of course, the new 13,510 meters (44 holes) of drilling completed in 2024 contributed to the expansion of the metal content.

Underground mining the preferred scenario

Based on the information now available, Abitibi Metals has also conducted a detailed analysis of both an open pit and an underground mining scenario. It was concluded that a scenario in which the deposits are mined exclusively underground offers the most immediate value.

This does not mean that the management has ruled out open pit mining. On the contrary, Abitibi remains convinced that this scenario could also create great value. However, in order to realize the full potential of mining from the surface, Abitibi believes that additional work is required. This includes further drilling, sampling of historical drill core, where large zones of disseminated mineralization remain untested, and sonic drilling to test for a possible layer of oxidized overburden containing mineralization directly above bedrock, similar to that observed at the Selbaie mine. The Company remains committed to advancing both scenarios to maximize the resource potential of the B26 deposit.

Jonathon Deluce, CEO of Abitibi Metals, is delighted with this “significant” resource update, which he emphasizes has been achieved after only one year of focused exploration activities. Mr. Deluce emphasizes, too, that the substantial increase in contained metal in particular underscores the “exceptional potential of this asset” – and this validates the disciplined approach of the Abitibi team in unlocking the value of the property.

And the Abitibi Metals CEO goes on to stress that, in his opinion, the company is only at the very beginning of delineating a much larger resource at B26, which they are already working on with the drilling already underway.

Conclusion: In our opinion, the new resource estimate now published represents an important first step on the way to proving a resource of up to 30 million tons at B26, which Mr. Deluce has proclaimed as a possible target in various interviews. However, with the increase in resources of more than 60% in both the indicated and inferred categories, Abitibi Metals has already significantly increased the value of the project – with only a first round of drilling. With mineralization at B26 remaining open both at depth and laterally, according to the company, the potential for further resource growth is evident – and in this regard the first results from the second phase of drilling should follow in just a few days. Add to this the fact that Abitibi Metals still has C$13 million to complete the second phase of work in 2024 and to drill another 20,000 meters next year, and it becomes obvious why we believe that the company is extremely well positioned for the future!