Formation Metals Inc. (CSE: FOMO, Germany: VF1) seamlessly builds on its recent drilling success at its N2 gold project in northwestern Quebec. Led by CEO Deepak Varshney, the company has just reported additional results from its fully funded 30,000-metre drill program, confirming the continuity of the mineralized system at depth. At the same time, zones have been identified that Formation Metals describes as a starting point for a large-scale, near-surface (“bulk tonnage”) open-pit scenario.
The announcement focuses in particular on drill hole N2-25-008, which returned 0.95 g/t gold over 61.1 metres from a downhole depth of 109 metres – including 1.68 g/t gold over 26.5 metres. In addition, Formation Metals reported for N2-25-007 1.3 g/t gold over 22.2 metres from 139.9 metres, including a higher-grade interval of 2.36 g/t gold over 10.5 metres. N2-25-010 also delivered 1.43 g/t gold over 19.4 metres from 117.5 metres, including 2.23 g/t gold over 7.0 metres. Strong numbers, especially in an environment of nearly USD 5,200 per ounce of gold…
Formation Metals: New drill holes support continuity and geometry of the main system
Formation Metals classifies the three new drill holes as confirmation of previously reported intervals from N2-25-005 and N2-25-012 (we reported). There, the company had announced broad, continuous, near-surface mineralization: N2-25-005 with 0.91 g/t gold over 42.3 metres from 14.0 metres, including 2.04 g/t gold over 8.1 metres and 1.31 g/t gold over 11.4 metres; and N2-25-012 with 1.75 g/t gold over 30.4 metres from 64.1 metres, including 3.51 g/t gold over 10.5 metres and 19.2 g/t gold over 0.51 metres.
The new drill holes N2-25-007, -008 and -010 were collared nearly 50 metres apart and would underpin drill-hole continuity of the main system, the company explained. Formation describes the main mineralization as a classic “pinch-and-swell” system with a tabular-to-lenticular morphology. Thicknesses would vary under structural control and, based on current data, range between 20 and 61 metres; the system is also “at least 85 metres” wide. According to the company, the main target remains open to the south at depth as well as along strike to the east and west – overall across an 8-kilometre corridor, which Formation Metals is now highlighting as the central exploration axis for a large-scale gold target.
Geographically, the N2 gold project is located around 25 kilometres south of Matagami (Quebec). As a starting point, Formation Metals refers to a global historical resource of around 871,000 ounces of gold: approximately 18 million tonnes at 1.4 g/t gold (approx. 810,000 ounces) across four zones (A, East, RJ-East and Central) as well as 243,000 tonnes at 7.82 g/t gold (approx. 61,000 ounces) in the RJ zone.
N2 gold project: Additional vein sets could widen the open-pit shell
In addition to demonstrating continuity in the primary target, Formation Metals highlights that the current drilling also outlines secondary and tertiary vein sets above and below the main system. The company considers these additional structures important because—if they can be demonstrated along the entire strike corridor—they could significantly widen the potential open-pit mining footprint.
Specifically, in N2-25-007, Formation Metals reports 0.45 g/t gold over 12.6 metres and 0.67 g/t gold over 18.5 metres above the main target. Below the primary target, the company reports 0.55 g/t gold over 8.4 metres in N2-25-008 and 0.78 g/t gold over 11.5 metres in N2-25-010. The release concludes that—with corresponding lateral continuity—a potential open-pit “mining envelope” could expand in thickness to around 90 metres.
CEO Deepak Varshney states that the Phase 1 results show that the A Zone is being considered a significant open-pit opportunity. He also notes that the historical resource in the northern corridor has so far covered only around 1.5 kilometres of strike length—while Formation Metals is now talking about more than 6 kilometres of additional strike that is to be systematically drilled for the first time at the project. At the same time, the company emphasizes that, based on current results, the main zone is “at least 20 metres” thick and “about 85 metres” wide.
Drill program, timeline and next data packages
Operationally, Formation Metals reports that 33 drill holes totalling 10,836 metres have been completed to date. Assay results are still pending for 20 drill holes, so a steady stream of news can be expected in the coming period. The Phase 1 program totals 14,000 metres and is designed to increase confidence in the near-surface mineralization through infill drilling, expand the resource through step-outs along strike to the east and west as well as at depth, and at the same time obtain representative core material for metallurgical work.
In addition, Formation Metals speaks of an accelerated strategy with a planned drill program totalling around 70,000 metres, aimed at defining a potentially near-surface, open-pittable gold resource. Two drill rigs are active and are systematically testing the A and RJ zones along the 8-kilometre corridor. An initial resource estimate (MRE) is planned for the third quarter—after completion of Phase 1.
