Abitibi Metals’ (CSE: AMQ; US-OTC: AMQFF) updated resource estimate for the B26 polymetallic deposit in Quebec, grows the deposit as it prepares for more drilling this year and next to feed into a preliminary economic assessment.
The resource is the first under Abitibi, which holds 9.9% of B26, and is working to earn 80% of the project over seven years from Soquem, a subsidiary of Investment Quebec. It includes 13,510 metres across 44 holes from this year’s drill program.
Indicated resources increased by 62% to 11.3 million tonnes grading 1.23% copper, 1.27% zinc, 0.46 grams gold per tonne and 31.9 grams silver or 2.13% copper equivalent. Contained metal totals 307.9 million lb. copper, 316.9 million lb. zinc, 168,200 gold and 11.6 million oz. silver, or 532.3 million lb. of copper equivalent.
Inferred resources increased by 63% to 7.2 million tonnes grading 1.56% copper, 0.17% zinc, 0.87 gram gold and 7.4 gram silver, or 2.21% copper equivalent. The contained inferred metal totals 246 million lb. copper, 27.3 million lb. zinc, 200,800 oz. gold and 1.7 million oz. silver, or 348.8 million lb. of copper equivalent.
Abitibi highlighted an 38% increase in contained copper, 15% increase in contained zinc, 29% increase in contained gold and 22% increase in contained silver relative to the previous 2018 resource estimate.
“This substantial increase in contained metal inventory underscores the exceptional potential of this asset and validates our team’s disciplined approach to unlocking value in one of the world’s premier mining jurisdictions,” Abitibi CEO Jonathon Deluce said in a news release.
The B26 polymetallic deposit remains open at depth and laterally. The ongoing 16,500 metre second-phase drill program has not been included in this resource update and initial results will be announced next week, it said.
The company said it is fully funded with $13 million to complete the remaining 2024 drill program and an additional 20,000 metres of diamond drilling in 2025, which will be incorporated into a preliminary economic assessment.
The company has raised $18.5 million from investors such as Frank Giustra.
The company in April identified a new copper target west of B26 that shows potential for expanding the project.
Deluce said that following an in-depth evaluation of both open-pit and underground scenarios for the B26 Deposit, the company currently sees greater value in pursuing an underground-only model.
“However, we continue to see strong merit in the open-pit potential, particularly given the promising lower-grade, near-surface halo. We plan to conduct further work to better understand and outline this zone, which could enhance the resource’s versatility and add significant optionality in the future. Our approach remains focused on maximizing the long-term value of the B26 deposit,” Deluce said.
On Wednesday, Abitibi closed the day up 2.5%. The company has a $44 million market capitalization.
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