GSKKF - Abitibi Metals Finalizes Team for Near-Term Maiden Drill Program at the B26 Deposit (Ind: 7.0MT @ 2.94% Cu Eq & Inf: 4.4MT @ 2.97% Cu Eq)
(TheNewswire)
January 11, 2024 – TheNewswire - London, Ontario – Abitibi Metals Corp. (CSE:AMQ) (OTC:AMQFF) (FSE:4KG)(“Abitibi” or the “Company”) is pleasedto announce that it has engaged the services of Forage DCB Drilling ofRouyn-Noranda (“DCB”) to complete the near-term drill program forthe high-grade B26 Polymetallic Copper Deposit (“B26” or the“Project”).
Jonathan Deluce, CEO of AbitibiMetals stated: “We are thrilled to partner with DCB and bring atop-notch team together for the maiden drill program at the high-gradeB26 Polymetallic Copper Deposit. As we launch the first phase of afully funded 30,000 metre drill program, the selection of the rightdrilling contractor is critical. Our pursuit of an accurate mineralresource estimate requires expertise and precision and DCB’scommitment to excellence is second to none as a firm that operates atthe highest standards. We look forward to mobilizing in the comingdays and commencing the advanced exploration drill program shortlyafter mobilization."
The Company is also pleased to announce that theexploration program will be led by Mr. Martin Demers, P.Geo. Mr.Demers is a professional geologist, P. Geo., with over two decades ofexperience, with much of it focused on the Abitibi Region of Quebec,Canada.
Mr. Deluce continued: “Abitibi hasbrought together a top-notch team to develop the high-grade B26Polymetallic Copper Deposit. We are very excited to work with MartinDemers, Eric Kallio and Shane Williams, three exceptional names in themining industry who have been instrumental in the advancement anddevelopment of significant Canadian projects. We are very excitedabout the upcoming drilling season at the high-grade B26 deposit andare thrilled to collaborate with industry leaders with the planning ofthis program.”
B26 Polymetallic Copper DepositSummary
Located within the prolific Abitibi Greenstone Belt,B26 comprises 66 claims covering 3,328 hectaresin the Eeyou Istchee Baie-James territory andrepresents a significant opportunity to develop a copper, zinc, gold,and silver Polymetallic Deposit in a region with a rich history ofbase and precious metal production, which includes the Detour and CasaBerardi Mines. There is year-round road accesswith a power line running through the Project.
Abitibi is the first public company with the option toearn into the B26 Deposit. With a strike length of 1 km and depthextent of 0.8 km, both of which are open for expansion, Abitibi willfocus on delivering shareholder value with an aggressive explorationapproach which includes a fully financed approximately 30,000 metresof drilling in 2024 that will focus on advancing and expanding theexisting underground resource (Ind: 7.0MT @ 2.94% Cu Eq & Inf:4.4MT @ 2.97% Cu Eq) while delineating its open-pit potential.
Property highlights include:
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2018 resource thatincludes 254 holes over 115,311 meters, advancing the asset to asignificant resource that includes, across all categories, 400 millionpounds of copper, 286,000 ounces of gold, and significant zinc silverexposure.
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B26 Resource Summary (2018)
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Indicated: 6.97 Mt at 2.94% Cu Eq (1.32% Cu, 1.80% Zn,0.60 g/t Au and 43 g/t Ag)
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Inferred: 4.41 Mt at 2.97% Cu Eq (2.03% Cu, 0.22% Zn,1.07 g/t Au and 9 g/t Ag)
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Drilling has established the continuity down to avertical depth of 800 meters and the deposit remains open at depth andlaterally with strong historical intercepts* including:
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2.32% Cu Eq over 89.5 metres (1274-13-117)
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3.05% Cu Eq over 48.1 metres (1274-16-224)
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8.95% Cu Eq over 11.5 metres (1274-14-152)
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Within 7 km of the historical Selbaie Mine, a similarPolymetallic Copper Deposit with a variety of mineralization stylesand element combination, that had a historical resource of 56.9 Mt @0.87% Cu, 1.85% Zn, 0.55 g/t Au, 39 g/t Ag (CONSOREM 2012). Referenceto this nearby property is for information only, and there are noassurances that the Company will achieve the same results at the B26Deposit.
The Company will advance B26 through a first-yearexploration plan focused on 3 milestones:
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30,000 Metres of Drilling. The Company anticipatesthe completion of at least 30,000 metres in the first year. Phase 1will concentrate on high-priority infill drilling in areas with highermetal factors within the resource, roughly from surface down to 300metres and exploring mineralized lenses continuity and geometry, andexpansion possibilities.
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Updated Internal Resource 3D Model. Through the review of the 2018 resource, theCompany has identified opportunities for improvement, which willstrengthen our drill plan and a potential increase of current tonnagewithout further drilling. These areas include a) geological modellingto better identify high?grade lenses to generate strong resourcegrowth-focused drilling; b) reviewing and analyzing additional samplesto determine the correct density factor to include in the updatedinternal resource / 3D model as the Company believes the densityfactor could be currently understated, which could result in the correct factor contributing additionaltonnage above the 2018 resource numbers; c) reviewing and analyzingmetal grade variability for resource estimation update for gold andsilver grades; and d) completing a robust 3D and internal resourcemodel which will provide a strong basis for evaluating economicpotential.
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Gravity Survey. The Company is planning a Gravity Survey grid to coverextensions of the VMS contact to help model the geology, primarily themafic-felsic contacts and sulphide-rich environment, in order totarget new mineralized extensions close to the surface and at amoderate depth (300-600 metres). This is aligned with our first-yearobjective of improving our understanding and model of the open-pitpotential of the Project.
Figure 1 – Project outline and area map.
The following plan view and central section provide anoverview of the current mineralization and expansion potential:
Figure 2 - Plan View showing lateral expansion targetslaterally and along strike 3 .
Figure 3 - Central Section showing expansion targets atdepth 3 . (Section 652950 – 900m width)
Terms of the DefinitiveAgreement:
Under the terms of the Definitive Agreement, Abitibihas the right to earn an 80% interest in the Project through atwo?phase option, subject to a net smelter return royalty of 2%granted to SOQUEM. Abitibi will have the right to buyback 1% of thenet smelter return royalty for two million dollars (CAD).
Phase 1: Inorder to earn an undivided 50% interest in the Property, Abitibi shallhave made total cash payments of $400,000, issued 9.9% worth of commonshares in the capital of Abitibi to SOQUEM and incurred Work Expenditures of $7,500,000 intotal over 4 years.
Phase 2: Inorder to exercise the Second Option to acquire an additional 30%interest for a total undivided 80% interest in the Property, Abitibishall finance and deliver a PEA, as defined under National Instrument43-101 – Standards of Disclosure for Mineral Projects (Canada),issue shares to top up SOQUEM’s total Abitibi equity ownership to9.9% of common shares, make a cash payment of $1,000,000 less thereduction calculated below and incur further Work Expenditures of$7,000,000 on the Property within 3 years of Abitibi exercising the50% Option. Abitibi will determine the value of shares issued totop-up SOQUEM based on a 10-day weighted average preceding the date ofissuance, which will be deducted from the $1 million cash requirementto exercise the 80% option.
Upon 80% Option Exercise: The project shall convert into a joint venture with Abitibitaking 80% of the future development expenditures and SOQUEM taking20% of the future development expenditures.
Investment Relations Agreement
The Company is pleased to announce the engagement ofTriomphe Holdings Ltd. (dba Capital Analytica) (“CapitalAnalytica”) for investor relations and communication services (the“Consulting Agreement”) as the first consultant retained as partof its market awareness strategy. Capital Analytica is a Nanaimo basedcompany owned and operated by Jeff French who is arms length to theCompany
Jonathan Deluce, CEO of AbitibiMetals stated: “As the first public company to have the opportunityto option B26, we fully intend on pairing our aggressive explorationprogram with a strong marketing and awareness strategy in order to deliver B26 theattention it deserves. With the closing of our recent financings, weare set to increase our marketing and awareness initiatives, in tandemwith achieving a complete OTCQB listing, and look forward to providingfurther updates as we advance the high-grade B26 Polymetallic CopperDeposit.”
The Consulting Agreement has an initial term of sixmonths, under which the Company will pay to Capital Analytica anaggregate of $120,000, and has an option to renew the ConsultingAgreement for an additional 6 months at a rate of $10,000 per month,unless terminated earlier in accordance with the ConsultingAgreement.
Pursuant to the terms of the Consulting Agreement,Capital Analytica will provide ongoing capital markets consultation,ongoing social media consultation regarding engagement andenhancement, social sentiment reporting, social engagement reporting,discussion forum monitoring and reporting, corporate videodissemination, and other related investor relations services.
Change in Directors
The Company announces the resignation of Wesley Hansonand Joseph Luongo from Abitibi’s Board of Directors. The Board wouldlike to sincerely thank Mr. Hanson and Mr. Luongo for their serviceand contribution to the Company and wishes them well in their futureendeavours.
About Abitibi Metals Corp.:
Abitibi Metals Corp. is a Quebec-focused mineral acquisition andexploration company focused on the development of quality base andprecious metal properties that are drill-ready with high-upside andexpansion potential. Abitibi’s portfolio of strategic propertiesprovides target-rich diversification and includes the option to earn80% of the high-grade B26 Polymetallic Copper Deposit (Ind: 7.0MT @2.94% Cu Eq & Inf: 4.4MT @ 2.97% Cu Eq) and the Beschefer GoldProject, where historical drilling has identified 4 historicalintercepts with a metal factor of over 100 g/t gold highlighted by55.63 g/t gold over 5.57 metres and 13.07 g/t gold over 8.75 metresamongst four modelled zones.
About SOQUEM:
SOQUEM, a subsidiary of Investissement Québec, isdedicated to promoting the exploration, discovery and development ofmining properties in Quebec. SOQUEM also contributes to maintainingstrong local economies. Proud partner and ambassador for thedevelopment of Quebec’s mineral wealth, SOQUEM relies on innovation,research and strategic minerals to be well-positioned for thefuture.
ON BEHALF OF THE BOARD
Jonathon Deluce, Chief Executive Officer
For more information, please call 226-271-5170, email info@abitibimetals.com , or visit https://www.abitibimetals.com .
The Company also maintains an active presence on various social mediaplatforms to keep stakeholders and the general public informed andencourages shareholders and interested parties to follow and engagewith the Company through the following channels to stay updated withthe latest news, industry insights, and corporate announcements:
Twitter: https://twitter.com/AbitibiMetals
LinkedIn:
Neither the Canadian SecuritiesExchange nor its Regulation Services Provider accepts responsibilityfor the adequacy or accuracy of this release.
Source 1: Fayard, Q, Mercier-Langevin, P., Wodicka, N.,Daigneault, R., & Perreault, S. (2020). The B26 Cu-Zn-Ag-AuProject, Brouillan Volcanic Complex, Abitibi Greenstone Belt, Part 1:Geological Setting and Geochronology.
Source 2: Rapport Technique NI 43-101 Estimation desRessources Projet B26, Québec, For SOQUEM Inc., By SGS Canada Inc.,Yann Camus, ing., Olivier Vadnais-Leblanc, géo., SGS Canada –Geostat., Effective Date: April 18, 2018, Date of Report : May 11, 2018
Source 3: Fayard, Q. (2020). CONTRÔLES VOLCANIQUES,HYDROTHERMAUX ET STRUCTURAUX SUR LA NATURE ET LA DISTRIBUTION DESMÉTAUX USUELS ET PRÉCIEUX DANS LES ZONES MINÉRALISÉES DU PROJETB26, COMPLEXE VOLCANIQUE DE BROUILLAN, ABITIBI, QUÉBEC.
* Not necessarily representative ofthe of the true width of mineralization
Copper Equivalent values calculated using metal pricesof $4.00/lb Cu, $1.50/lb Zn, $20.00/ounce Ag and $1,800/ounce Au.Metal recoveries of 100% are applied in the copper equivalentcalculation.
Forward-looking statement:
This news release contains certainstatements, which may constitute “forward-looking information”within the meaning of applicable securities laws. Forward-lookinginformation involves statements that are not based on historicalinformation but rather relate to future operations, strategies,financial results or other developments on the B26 Project orotherwise. Forward-looking information is necessarily based uponestimates and assumptions, which are inherently subject to significantbusiness, economic and competitive uncertainties and contingencies,many of which are beyond the Company’s control and many of which,regarding future business decisions, are subject to change. Theseuncertainties and contingencies can affect actual results and couldcause actual results to differ materially from those expressed in anyforward-looking statements made by or on the Company’s behalf.Although Abitibi has attempted to identify important factors thatcould cause actual actions, events or results to differ materiallyfrom those described in forward-looking information, there may beother factors that cause actions, events or results to differ fromthose anticipated, estimated or intended. All factors should beconsidered carefully, and readers should not place undue reliance onAbitibi’s forward-looking information. Generally, forward-lookinginformation can be identified by the use of forward-lookingterminology such as “expects,” “estimates,” “anticipates,”or variations of such words and phrases (including negative andgrammatical variations) or statements that certain actions, events orresults “may,” “could,” “might” or “occur. Mineralexploration and development are highly speculative and arecharacterized by a number of significant inherent risks, which mayresult in the inability of the Company to successfully develop currentor proposed projects for commercial, technical, political, regulatoryor financial reasons, or if successfully developed, may not remaineconomically viable for their mine life owing to any of the foregoingreasons, among others. There is no assurance that the Company will besuccessful in achieving commercial mineral production and thelikelihood of success must be considered in light of the stage ofoperations.
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