Abitibi Metals posts 2.3% copper at B26 in Quebec

Abitibi Metals (CSE: AMQ; US-OTC: AMQFF) reported more strong copper mineralization on Thursday at its B26 deposit in western Quebec after results earlier in the week and in March.

Drill hole 1274-24-339 cut 44.5 metres grading 2.3% copper, 0.84 gram gold per tonne, 4.53 grams silver and 0.05% zinc from 146 metres depth, Abitibi said in a news release. The hole, designed to test the lateral extension of the lens identified in holes 1274-24-293 and 294, also returned 3.3 metres at 5.4% copper, 0.62 gram gold, 16.8 grams silver and 0.168% zinc from 83.7 metres down hole.

Drill hole 1274-24-340 cut 20.8 metres grading 2.79% copper, 0.97 gram gold, 5.1 grams silver and 0.02% zinc from 126.3 metres depth. And hole 1274-24-341 returned 9.9 metres at 2.97% copper, 0.44 gram gold, 5.4 grams silver and 0.09% zinc from 156 metres down hole.

“The drilling at B26 continues to deliver exceptional results,” Abitibi CEO Jonathon Deluce said in Thursday’s release. “We will utilize the successful drilling at 293 – 294 and 339 – 341 to further target this and other high-grade lenses within and outside the main deposit.”

The company plans to drill 16,500 more metres this year, then 20,000 metres in 2025. It’s planning a preliminary economic assessment on B26 that could envision an open-pit mine.

Selbaie mine

The results are from 13,500 metres drilled this year at the 33-sq.-km site located 7 km south of the former Selbaie mine, where BHP (NYSE: BHP; LSE: BHP; ASX: BHP) produced copper, zinc, gold and silver from 1958 until 1993. Abitibi, which holds 9.9% of B26, is working to earn 80% of the project over seven years from Soquem, a subsidiary of Investment Quebec. The company has raised $18.5 million from investors such as Frank Giustra.

On Monday, the company reported drill hole 274-24-336 at a target 500 metres west of the main deposit cut 19.7 metres grading 1.07% copper, 0.4 gram gold and 4.5 grams silver from 216.2 metres depth. Drill hole 274-24-337 returned 26.9 metres at 0.06% copper, 0.01 gram gold and 48.5 grams silver from 44.5 metres down hole.

For results reported in March, holes 1274-24-293 and 294 showed, respectively, 2.6% copper-equivalent over 37 metres including 6.3% copper-equivalent over 10.6 metres; and 2.5% copper-equivalent over 61.3 metres including 11.4% copper-equivalent over 10.6 metres.

Power line

B26 is 90 km west of the town of Matagami, which has a skilled mining workforce for Glencore’s (LSE: GLEN) complex there. Near the project there’s a working power line that served the Selbaie mine.

B26 holds 7 million indicated tonnes grading 2.9% copper-equivalent (1.3% copper, 1.8% zinc, 0.6 gram gold and 43 grams silver); and 4.4 million inferred tonnes at 3% copper-equivalent (2% copper, 0.2% zinc, 1.1 grams gold and 9 grams silver), according to a 2018 resource estimate by Soquem.

Shares in Abitibi Metals, which was known until last year as Goldseek (CSE: GSK), closed at 48¢ apiece on Wednesday in Toronto, valuing the company at $52.2 million. They’ve traded in a 52-week range of 8¢ to 76¢.