Abitibi Metals (CSE: AMQ) (OTCQB: AMQFF) announced Wednesday the results of an updated resource estimate for the B26 polymetallic deposit and maiden resource which includes 13,510 meters drilled across 44 holes from the 2024 Phase 1 drill program.  

Indicated resources increased by 62% to 11.3 million tonnes (Mt) from 6.9 Mt. Indicated resources now grade 1.23% copper (Cu), 1.27% zinc (Zn), 0.46 g/t gold (Au) and 31.9 g/t silver (Ag) or 2.13% copper equivalent (CuEq). Indicated resources contain 307.9 million pounds (Mlbs) Cu, 316.9 Mlbs Zn, 168.2 thousand ounces (koz) Au and 11.6 million ounces (Moz) Ag or 532.3 Mlbs of CuEq. 

Inferred resources increased by 63% to 7.2 Mt from 4.4 Mt. Inferred resources now grade 1.56% Cu, 0.17% Zn, 0.87 g/t Au and 7.4 g/t Ag or 2.21% CuEq. Inferred resources contain 246.0 Mlbs Cu, 27.3 Mlbs Zn, 200.8 koz Au and 1.7 Moz Ag or 348.8 Mlbs of CuEq. 

Abitibi highlighted an 38% increase in contained Cu, 15% increase in contained Zn, 29% increase in contained Au and 22% increase in contained Ag relative to the 2018 resource estimate.  

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 C$18.5 million from investors such as Frank Giustra, who helped start Wheaton Precious Metals (TSX: WPM, NYSE: WPM; LSE: WPM) and Endeavour Mining (TSX: EDV; LSE: EDV).  

The company in April identified a new copper target west of B26 that shows potential for expanding the project. 

The B26 polymetallic deposit remains open at depth and laterally. The ongoing 16,500 metre Phase 2 drill program has not been included in this resource update and initial results will be announced next week, it said.  

“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. 

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.  

The company said it is fully funded with $13.0 million to complete the remaining 2024 Phase 2 work program and an additional 20,000 metres of diamond drilling in 2025, which will be incorporated into a preliminary economic assessment.  

Abitibi’s stock was halted in Toronto Wednesday as it delivered the news to the market, but closed the day up 2.5% on the CSE. The company has a C$44 million market capitalization.

Source: MINING.COM – Read More