Focused on the Abitibi Greenstone Belt in Quebec, AMQ is operating in what it considers Canada's best mining jurisdiction, significantly enhancing the value and prospects for its asset on the verge of a commodity cycle.
The High-Grade B26 Polymetallic Deposit
AMQ holds the option to earn 80% of the high-grade polymetallic copper B26 Deposit which has an indicated resource of 6.9MT @ 2.94% Cu Eq and an inferred resource of 4.41MT @ 2.97% Cu Eq.
Starting with a significant and polymetallic resource is rare, especially with gold in the system, which presents a strong starting resource with room for expansion.
In the process of completing its winter drill program, the first phase of a fully funded 30,000m field season planned for 2024 is underway with 8,839m completed across 29 holes to date.
Earlier this week, AMQ announced the drilling of 61.3M at 2.5% CuEq near surface at the deposit, with the intersection of:
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1.1% CuEq over 9.5 metres beginning at 63 metres depth;
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2.6% CuEq over 37.0 metres beginning at 106 metres depth, including 6.3% CuEq over 10.6 metres;
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1.5% CuEq over 11.9 metres beginning at 70.4 metres depth;
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2.5% CuEq over 61.3 metres beginning at 128.6 metres depth, including 11.4% CuEq over 10.6 metres;
Aggressively Advancing Exploration with Third Drill Rig On-Site
With the number one priority to test the open pit, AMQ's key targets additionally include testing the extension and expansion potential alongside testing the system at depth.
Having recently secured a third drill for its on-going drill program, AMQ is targeting the completion of over 12,000m across three priority targets by the end of March for the first phase.
This third rig will focus on advancing drilling at AMQ's priority target, the "Eastern Extension", targeting an expansion of the main deposit where 2.32% Cu Eq over 89.5 metres*, including 3.98% CuEq over 22.5 metres (1274-13-117) was intercepted in historical drilling.
With the first phase of drilling demonstrating the robust nature of the B26 Deposit, AMQ has established a solid foundation and technical vision for resource expansion and the de-risking of the project.
Executing Strategic Objectives & Accelerating Earn in Plan with Financings
Notably, just yesterday, AMQ announced the upsizing of its current $3M private placement to $5M at $0.86/share, led by the Deluce family.
Jonathon Deluce, CEO of Abitibi Metals, stated,
"With the success of our ongoing maiden drill program, this financing will position Abitibi to execute a series of strategic objectives and accelerate the Company’s plan to earn up to 80% of the B26 Deposit. Upon closing, we will have an exploration budget of $15.0M over 2024-2025, fulfilling our 7-year work commitments in 2 years. This financing will allow Abitibi to drill approximately 50,000 metres at the B26 Deposit. We greatly appreciate the opportunity to showcase all the great exploration work done by SOQUEM Inc and the opportunity to advance this deposit aggressively.”
The proceeds will be allocated toward incurring "Canadian Exploration Expenses which are "flow-through mining expenditures" that will position AMQ to execute a series of strategic objectives and accelerate its B26 Deposit plan.
Upon closing, AMQ will have a budget of $15M over 2024 and 2024, fulfilling 7 years worth of work commitments over two years and enabling the drilling of ~50,000m.
Boasting a tightly held, warrant-free structure with significant insider ownership and a share count below 100M, AMQ's narrative is clear amid growing momentum and a catalyst filled 2024. With results and assays still pending from this drill program, AMQ plans to regularly communicate with investors, anticipating providing multiple updates over the next three months.
Posted on Behalf of Abitibi Metals Corp.