Abitibi Metals Corp C.AMQ

Ramifications of FQM's Panama Mine Shutdown

[MarketMakerss]

The forced shutdown of a $10 billion mine threatens the energy transition alongside provides a signal to companies regarding which countries to invest in.

 

First Quantum Minerals, the 6th largest copper producer in the world learnt this the hard way with its Cobre Panam mine being cancelled after several years in operation.

 

The mine previously produced 350,000 tonnes of copper in 2022, accounting for 1.5% of global copper supply and 5% of Panama's GDP.

 

The shutdown was ordered to by the Panamanian Government after a new mining contract with FQM, which would have yielded substantially more taxes for Panama and a minimum fiscal payment of $375 million by FQM, something not seen anywhere in the world was declared unconstitutional despite having undergone a process involving government and international legal experts.

 

This has important ramifications for the mining industry as a whole, especially for companies looking at South American mining to support worldwide electrification as Latin America has almost 40% of the world's global copper reserves.

 

As copper is a vital metal for the green transition, this leaves miners with only one strategy, "to invest in politically stable countries whose politicians have a record of keeping their word". (Source: https://financialpost.com/opinion/closure-first-quantum-panama-copper-mine-threatens-e-transition)

 

Abitibi Metals

With this news, Abitibi Metals' (AMQ.c AMQFF) is strongly positioned for growth in the mineral-rich Abitibi Greenstone Belt in Quebec, focus on the B26 Project, an advanced-stage, the high-grade Polymetallic Copper Deposit with an indicated resource of 7.0MT @ 2.94% Cu Eq and an inferred resource of 4.4MT @ 2.97% Cu Eq.

 

Throughout 2023, AMQ successfully executed a number of milestones, including bringing on strategic investors in Frank Giustra and Greg Chamandy as well as numerous other high value partners and shareholders, thus reaching its financing goals and raising over $14M.

 

Plus, with inside ownership at 20% and the Deluce Family holding an aditional 13%,AMQ's primary stakeholders hold a total of 33% of the company and demonstrate a strong alignment with shareholders.

 

MAIN 2023 MILESTONE: Securing the High-Grade B26 Polymetallic Copper Deposit

• First public company with the option to earn into the B26 Deposit, one of Quebec's most promising mineral discoveries
• Current strike of 1km and depth extent of 0.8km, open for expansion
• Located only 7km from AMQ's second advanced-stage asset along the Selbaie trend, the Beschefer Project
• 2018 indicated resource advanced the asset to a significant resource that includes 400 million pounds of copper, 286,000 ounces of gold, and significant zinc silver exposure
• Open at depth and laterally
• Strong historical intercepts including: 2.32% CuEq over 89.5 metres (1274-13-117), 3.05% CuEq over 48.1 metres (1274-16-224), 8.95% CuEq over 11.5 metres (1274-14-152)
• Significant growth potential in resource & potential to make new discovery on trend

 

2024 EXPLORATION OUTLOOK

$10M exploration budget with four main objectives:

• ~30,000m of drilling at B26 which is currently underway with four holes and 1,135m completed of the 10,000m planned for Q1
• Complete review of historical geophysics evaluating the signature of the deposit and best approaches to extend the mineralized zones
• Continue to develop 3D model & updated internal resource to support strong exploration approach
• Earn 100% of the Beschefer Gold Project and complete ~3,000m of drilling at in Q1'

 

Demonstrating the immense potential for growth in this story, AMQ experienced a significant surge in value on substantial trading volume following securing option for B26 deposit. This saw an impressive day-one re-rating of 88%, indicating the substantial impact from this strategic move.

 

Full 2023 Highlights & 2024 Outlook: https://abitibimetals.com/abitibi-metals-highlights-major-2023-corporate-milestones-and-provides-outlook-for-2024/

 

AMQ Deep Dive: https://braydensutton.substack.com/p/a-canadian-mining-story-unfolding

 

Posted on Behalf of Abitibi Metals Corp.