Formation Metals (CSE: FOMO; WKN: A3D492) is starting preparations for an initial resource estimate (according to Canadian standard NI43-101) for its N2 Gold Project and will combine new drilling data with approximately 55,517 meters of historical drilling for this purpose.
Formation is thus setting the course for an important milestone at the N2 gold project in Québec. This will be based on the results of the ongoing, fully funded drilling program and an extensive historical database. After completion of the current Phase 1, the data should total almost 70,000 meters drilled – and a large part of this is to be included in the resource estimate.
According to the company, the N2 project has a historical total resource of approximately 871,000 ounces of gold. This comprises approximately 18 million tons averaging 1.4 g/t gold (approximately 810,000 ounces) in four zones (A, East, RJ-East and Central) plus an additional 243,000 tons at 7.82 g/t gold (approximately 61,000 ounces) in the RJ zone. Formation now intends to convert the historical data into an up-to-date, compliant model and incorporate the new drilling results into it.
Formation Metals: Drilling program expanded on the N2 gold project
The company is conducting a fully funded drilling program on the N2 project, designed for 30,000 meters. The ongoing Phase 1 has been expanded to approximately 14,000 meters based on positive initial field observations. Up to the time of the announcement, 13 drill holes had been advanced. Formation Metals highlights three observations in particular: Firstly, considerable thicknesses of the targeted mineralization had been intersected in several holes, secondly, the mineralization often begins at shallow depths, and thirdly, there are indications of sections with higher grades, including visible gold in a previously reported drill hole.
Formation Metals cites drill holes N2-25-008 and N2-25-011 as examples. In N2-25-008, a total of 208.8 meters of “target mineralization” were intersected from a drill hole depth of 28.6 meters, including several broad sub-intervals of over 40 meters and a section of up to 70 meters. N2-25-011 yielded 166.8 meters of target mineralization from a drill hole depth of 60 meters, also with several sections of over 20 meters and sub-intervals of up to 70.6 meters. Formation Metals also reports that nine of the hole drilled to date have encountered mineralization within the first 25 meters of mineralization.
The drillin, Formation continues, is intended to test the continuity and extent of the known zones on the one hand, and new target areas along the mineralized trends on the other.
Initial resource estimate: Data integration from almost 70,000 meters of drilling
Formation Metals is combining several work steps with the planned NI 43-101-compliant resource estimate: In addition to merging the new drilling data with the historical results, an updated geological model is to be created. According to the announcement, the estimate will be prepared by an independent qualified person in accordance with NI 43-101 standards and will also take into account geostatistical evaluations and updated metallurgical data.
Formation Metals describes N2 as a project with largely near-surface mineralization and broad, recurring mineralized sections over longer distances. In the company’s presentation, this is used to derive a concept that, after completion of the drilling, aims at a conceptual open-pit resource. At the same time, Formation Metals refers to historical drill sections that are said to include 1.7 g/t gold over 35 meters in the A zone, among other things, as well as high-grade historical hits in the RJ zone (for example, several short intervals with significantly double-digit gold grades).
Formation Metals cites the third quarter of 2026 as the time horizon for reworking the historical resource into one that meets current standards.
Location advantages in Québec and focus for the next exploration season
The N2 gold project is located approximately 25 kilometers south of Matagami in Québec and comprises 87 claims covering approximately 4,400 hectares. Formation Metals emphasizes year-round accessibility via roads, proximity to labor and infrastructure, and its location in the gold-rich Abitibi Greenstone Belt along the Casa Berardi structure zone. For further exploration, the company points out that several zones are open along the strike and at depth and that historical drilling often only extends to a depth of approximately 350 meters.
For the 2026 drilling season, Formation announces that it will focus on the northern part of the project, continue expansion and discovery drilling there, and carry out IP work to model mineralized zones.
Financially, the company, led by CEO Deepak Varshney, is in an excellent position to achieve its goals. Formation has a working capital of approximately CAD 12.1 million and no liabilities. Including tax credits from Québec, the company puts its exploration budget for 2025/2026 at approximately CAD 8.1 million. Mr. Varshney emphasizes in today’s announcement that the ongoing results and the historical database support the start of the NI 43-101 resource estimate and create the basis for systematically developing the project further.
