In a recent episode of the TokStocks Small Cap Podcast, host Kier Reynolds interviewed Jon Deluce, CEO of Abitibi Metals Corp. (Ticker: AMQ.c or AMQFF for US investors), to discuss the company's ambitious exploration projects in Quebec. Deluce shared insights into their strategic approach, substantial drill results, and potential for significant resource expansion.
High-Grade Copper Projects in Quebec
Abitibi Metals is focused on two primary assets: the B26 Deposit and Beschefer project.
The B26 Deposit is highlighted as a standout, featuring a historical resource of 6.97 Mt at 2.94% Cu Eq (Indicated) and 4.41 Mt at 2.97% Cu Eq (Inferred). This deposit contains significant copper, zinc, gold, and silver, with potential for further expansion both at depth and laterally. The company's goal is to achieve a 20-to-30-million-ton high-grade copper equivalent resource, supported by favorable option terms allowing Abitibi to earn up to 80% ownership of the B26 Deposit ahead of schedule.
The Beschefer project, located 7 kilometers from B26, adds a complementary asset to Abitibi's portfolio. Though not the primary focus, the project has shown promising gold results and potential for future exploration. Abitibi Metals is committed to operating in Quebec, leveraging the province's supportive mining environment, favorable tax incentives, and strong government partnerships.
Strategic Backing and Financial Strength
Abitibi Metals is well-supported financially, with significant investments from the Deluce family office and strategic investors like Frank Giustra and Greg Chamandy. The advisory team includes mining experts such as Eric Kallio and Victor Cantore. This strong backing has positioned Abitibi Metals with approximately $3 million invested and a clear path to growth.
Drilling and Exploration Strategy
The company has completed a 13,500-meter drill program on the B26 Deposit, identifying both open-pit and underground potential. The drilling has expanded the deposit to the west and north, and the company plans to continue with ~20,000 meters of drilling by year-end. The goal is to further define the deposit and potentially update the resource estimate by September or October 2024.
Financial Overview and Market Position
Abitibi Metals has a market cap of approximately $35 million CAD, with 110 million shares outstanding and a strategic insider ownership of 30%. The company is fully funded through early 2026, ensuring continuous exploration and development without the need for immediate additional financing.
Abitibi Metals is well-positioned to capitalize on the rising demand for copper and gold, driven by global infrastructure needs and the shift towards renewable energy. With a strong management team, significant financial backing, and promising assets in Quebec, Abitibi Metals presents a compelling investment opportunity in the high-grade copper exploration space.
Full interview here:
Posted on behalf of Abitibi Metals Corp.