Today, Abitibi Metals (AMQ.c AMQFF) announced the upsizing of its $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.
The High-Grade B26 Polymetallic Deposit
The high-grade polymetallic copper B26 Deposit is located in the mineral-rich Abitibi Greenstone Belt and has an indicated resource of 6.9MT @ 2.94% Cu Eq and an inferred resource of 4.41MT @ 2.97% Cu Eq.
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.
Yesterday, 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;
AMQ has added three holes to follow up on 294, testing the expansion potential down-dip and along strike, as the results from 294 and 293 support the occurrence of lower grades outside of the high-grade core of the deposit, adding to the surface open-pit potential of the B26 Deposit.
Having identified low-grade near-surface targets starting at or close to bedrock in each of the 4 reported holes, these results are in line with AMQ's objective of testing the north bedrock interface to assess the potential updated pit-shell model.
With this, the maiden program has been expanded to drill a minimum of 12,000m with 8,839m completed across 29 holes to date.
Jonathon Deluce, CEO of Abitibi Metals, commented, "We are pleased to announce these results from the first four holes of our maiden drill program at the B26 Polymetallic Deposit. The results from the non-rushed portions of #293 and #294 represent a low-grade halo around the high-grade core of the deposit and support having bulk tonnage potential. The B26 Deposit is a highly mineralized system, and this low-grade material also provides leverage in a higher copper price environment. In response to the high-grade core of #294, 3 holes have been added to test the expansion potential down-dip and along strike."
Aggressively Advancing Exploration with Third Drill Rig On-Site
This news comes on the heels of AMQ securing the third drill for its on-going drill program at the B26 Deposit as AMQ targets completing over 10,000m across three priority targets by the end of March for its fully-funded 30,000m 2024 field season.
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.
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.