More speed: Abitibi Metals is now using a second drill rig at the B26 deposit

Abitibi Metals Corp. (CSE:AMQ; OTC:AMQFF; FSE:FW0) is stepping up the pace of exploration at its high-grade polymetallic B26 deposit in Quebec and is now deploying a second drill rig at the project. Abitibi plans to complete 16,500 metres of drilling by year end in order to advance its vision of a 30 to 50 million tonne resource. The program includes some important step-outs: The first drill is currently drilling a step-out hole of up to 400 meters (1274-24-342) to test the western plunge that would extend the known mineralization, including 5.08% Cu Eq. over 7.1 meters in 1274-16-236.

In addition, the first holes of the current phase of drilling have already encountered new significant mineralization. The initial holes from Phase II have returned strong chalcopyrite stringer mineralization over 81 metres, indicating significant potential for resource expansion.

Jonathon Deluce, CEO and President of Abitibi Metals, commented: “The additional drill rig underscores our commitment to accelerate the exploration process and build credibility for our 30-50 million tonne target size at B26. Having successfully expanded the mineralization near surface in Phase 1, this second round of drilling allows us to test additional high priority targets in the Mid-Level and Western Plunge targets. The first drill, 1274-24-342, is currently drilling an important step-out of up to 400 meters to test the western plunge. The first hole of Phase II (338) is the deepest intercept in the history of the project. Pending positive assay results, we look forward to further cost-effectively expanding the mineralized zones with additional multi-level directional drilling covering the western plunge target.”

Deluce dispelled concerns “While some shareholders may have concerns about the current depth of drilling, it is important to emphasize that this depth is still considered shallow given the size and scale of our potential underground mine target. When comparing the alteration signature to other major deposits in the Abitibi, the potential of B26 suggests a much deeper system, making this phase of drilling essential to fully understanding the deposit potential.”

Figure 1 – Overview of current Phase 2 drill targets. There are two priority targets in this phase – the Mid-Level Resource Growth Target and the Western Plunge Target – which have seen limited drilling to date. Development of these targets will be a focus.

Conclusion: Abitibi Metals is fully funded to earn-in to 80% of the polymetallic B26 deposit in Quebec and can therefore accelerate the drilling. Other explorers can only dream of this. It is likely that the seven-year period originally granted by the semi-governmental partner SOQUEM for the acquisition of the project shares will be shortened to two years. Abitibi plans to complete the minimum C$14.5 million in capital expenditures required for the earn-in as early as next year, after which it will submit a preliminary economic assessment. The new drilling will improve the quality of the resource and multiply the tonnage compared to the historical data. The rising copper price provides an additional tailwind. The historical resource was based on a copper price of USD 5,500 per ton. Currently, copper is trading at over 10,000 USD. The market is rewarding Abitibi’s determination and, with further good drilling results, should gradually price in the opportunity for a significantly larger deposit. As a possible proxy in the market, one should keep an eye on Foran Mining Corporation (TSX: FOM), which is also working in Quebec and is expected to go into production in 2026. Other major mining companies such as Agnico Eagle are already involved there, and the company’s market capitalization is C$1.6 billion. Abitibi is currently valued at C$42 million.