GSKKF - Abitibi Metals Secures the High-Grade B26 Polymetallic Copper Deposit (Ind: 7.0MT @ 2.94% Cu Eq & Inf: 4.4MT @ 2.97% Cu Eq)
(TheNewswire)
Highlights:
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Abitibi Metals becomes the firstpublic company with the option to earn into the B26 PolymetallicCopper Deposit (Cu-Zn-Au-Ag), one of Quebec’s most promising mineraldiscoveries, with a current strike of 1 km and depth extent of 0.8 km,open for expansion.
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The Project’s 2018 resourceincluded 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)
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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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)
3.05% Cu Eq over 48.1 metres(1274-16-224)
8.95% Cu Eq over 11.5 metres(1274-14-152)
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Within 7 km of the historical SelbaieMine, a similar Polymetallic Copper Deposit that had a historicalresource of 56.9 Mt @ 0.87% Cu, 1.85% Zn, 0.55 g/t Au, 39 g/t Ag(CONSOREM 2012).
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Jonathon Deluce, CEO of Abitibi,stated, “This remarkable asset has the potential to deliver an economic PEA witha minimum defined 20-to-30-million-ton high-grade copperresource. ”
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The addition of B26 greatlystrengthens Abitibi’sportfolio which includes the Beschefer Gold Project located 7 km tothe east, headlined by 55.63 g/t Au over 5.57 metres.
November 16, 2023 – TheNewswire - London, Ontario – Abitibi Metals Corp. (CSE:AMQ) (OTC:GSKKF) (FSE:4KG)(“Abitibi” or the “Company”), is pleased to announce that ithas signed a Definitive Agreement to acquire up to 80% of the B26Deposit (“B26” or the “Project”) from SOQUEM Inc.(“SOQUEM”), a subsidiary of Investissement Québec, and an entityat arms’ length to the Company. Abitibi is the first public companywith an option to earn into the B26 Polymetallic Copper Deposit(Cu-Zn-Au-Ag), one of Quebec’s most promising mineral discoveries,with a current strike of 1 km and depth extent of 0.8 km, open forexpansion. The project is located 90 km west of Matagami and 100 kmnorth of La Sarre, near the former Selbaie Mine.
The Project represents a substantial opportunity todevelop a copper, zinc, gold, and silver Polymetallic Deposit withinthe Abitibi Greenstone Belt, a belt known globally for its extensivemineral richness and size.
Jonathon Deluce, CEO of Abitibi Metals, stated, "We are very excited to announce thistransformational option agreement for Abitibi Metals, whichdramatically accelerates our vision of establishing a diversifiedmetals company in Quebec. We appreciate the trust and confidence ofour partners at SOQUEM, allowing us the opportunity to develop acompany-making asset in the best mining province in Canada. Throughtheir rigorous systematic exploration approach, we are starting with asignificant resource that includes, across all categories, 400 millionpounds of copper, 286,000 ounces of gold, and significant zinc andsilver exposure.
One of the key characteristics for us was to find anasset with the potential to deliver an economic PEA with a minimumdefined 20-to-30-million-ton high-grade copper resource, and I firmlybelieve that we have achieved that with B26. We have an aggressiveexploration plan designed for this deposit with 12,500 metres targetedin 2023-2024 with an initial 2,750 metre program to commence shortly.Our initial drill strategy aims to delineate B26’s open-pitpotential in addition to continuing to develop and grow the existingunderground resource. We believe there is significant upside indeveloping an open-pit resource and look forward to including this aspart of a robust maiden Preliminary Economic Assessment with strongnumbers.”
Figure 1 - B26 Deposit Resource Summary
Benefits to Abitibi MetalsShareholders:
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Establishes a District-ScaleOpportunity: Optioning two advanced-stage assetsalong the Selbaie trend with the B26 Deposit and BescheferProject.
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Transformational Option Agreement: Has the ability to transform the company into ametals developer, underpinned by a significant resource base rich incopper, zinc, gold and silver.
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Strong Growth Potential: With the B26 deposit open for expansion at depth and onstrike, there is significant growth potential in the resource and thepotential to make a new discovery on trend.
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Experienced Partner: SOQUEM, a subsidiary of Investissement Québec, is dedicatedto promoting the exploration, discovery and development of miningproperties in Quebec. SOQUEM also contributes tomaintaining strong local economies. Proud partner and ambassador forthe development of Quebec’s mineral wealth, SOQUEM relies oninnovation, research and strategic minerals to be well-positioned forthe future.
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First Mover Advantage: The option agreement will allow Abitibi Metals to be thefirst junior mining company to develop the B26 Deposit since itsdiscovery in the 1990s.
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Quality Jurisdiction: Quebec is a top mining jurisdiction with significant accessto capital for exploration and development, particularly for Projectssuch as B26 which are eligible for Critical Mineral Exploration TaxCredits and Quebec Super Flow-through Exploration TaxCredits.
Figure 2 –Project outline and area map. The B26 deposit is located approximately7 km from past-producing Selbaie Mine which was in production for over20 years and 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).
The B26 Deposit has significant polymetallic growthpotential with geological similarities to the historical Selbaie Mine,which is located 7 kilometers to the Northwest. The Selbaie Mine had ahistorical resource of 56.9 Mt @ 0.87% Cu, 1.85% Zn, 0.55 g/t Au, 39g/t Ag (CONSOREM 2012) and was in production for over 20 years.Reference to this nearby property is for information only and thereare no assurances that the Company will achieve the same results atthe B26 Deposit.
The B26 mineralization is composed of a stacking ofmassive polymetallic and semi-massive polymetallic sulfide lensesextending over a kilometric strike length within a strongly dippingbasin filled by felsic volcanism products. Sulfide-rich mineralizationis mostly hosted in rhyolite and associated tuffs. Two main types ofmineralization characterize the B26 Deposit. The northern part of themineralized system is characterized by chalcopyrite veins and veinletshosted in sericitized and chloritized rhyolite. The southern portionof the system contains mostly disseminated to massive sphalerite,pyrite and galena mineralization, hosted in a dome of massiverhyolite. The zones are stacked in a sub-parallel pattern, orientedgenerally east-west, and dip 87° to the south. Prior drilling hasestablished the continuity down to a vertical depth of 800 meters.
Project Summary:
Location: TheProject comprises 66 claims covering 3,328 hectares in the EeyouIstchee Baie-James territory, Nord du Québec region. There isyear-round road access with a power line running through the Project.
History : In1997, SOQUEM drilled discovery hole B26-03, which intercepted 1.87 g/tAu and 2.89% Cu over 11.3 metres. Since that time, the project hasbeen systematically explored by SOQUEM by drilling 254 holes over115,311 meters, which was included in their 2018 resource update.
B26 was the object of detailed academic studies thatdefined the geological model. Work was carried out by a consortium ofUQAC (Université du Québec à Chicoutimi), the Geological Survey ofCanada and SOQUEM 1 .
Resource: OnMarch 4, 2018 2 , SOQUEM announced its’ updated resource on the B26 depositprepared by SGS Canada Inc. (N.I. 43-101 Compliant), which consistedof indicated resources totaling 6.97 Mt grading 1.32 % Cu, 1.80 % Zn,0.60 g/t Au and 43 g/t Ag and inferred resources totaling 4.41 Mtgrading 2.03 % Cu, 0.22 % Zn, 1.07 g/t Au and 9 g/t Ag. Bothcategories are broken down by zone and classification in Table 1below:
| Table 1 – Estimated Resources in the B26 Deposit |
| Zone |
| Tonnage (t) |
| Classification |
| Cu (%) |
| Zn (%) |
| Au (g/t) |
| Ag (g/t) |
| CuEq (%) |
| ZnEq (%) |
| Feeder Cu |
| 651,000 |
| Indicated |
| In-pit |
| 1.82 |
| 0.04 |
| 1.10 |
| 5 |
| 2.66 |
| NC |
| 14,000 |
| Inferred |
| In-pit |
| 1.33 |
| 0.01 |
| 0.19 |
| 2 |
| 1.49 |
| NC |
| 3,713,000 |
| Indicated |
| Underground |
| 2.01 |
| 0.10 |
| 0.87 |
| 7 |
| 2.74 |
| NC |
| 4,232,000 |
| Inferred |
| Underground |
| 2.10 |
| 0.04 |
| 1.03 |
| 7 |
| 2.91 |
| NC |
| Horizon Zn |
| 160,000 |
| Indicated |
| In-pit |
| 0.06 |
| 2.04 |
| 0.03 |
| 120 |
| 2.10* |
| 4.78 |
| 2,244,000 |
| Indicated |
| Underground |
| 0.24 |
| 4.98 |
| 0.09 |
| 99 |
| 3.42* |
| 7.78 |
| 120,000 |
| Inferred |
| Underground |
| 0.14 |
| 4.80 |
| 2.93 |
| 66 |
| 4.93* |
| 11.20 |
| Remob Ag-Zn |
| 203,000 |
| Indicated |
| Underground |
| 0.01 |
| 3.02 |
| 0.07 |
| 138 |
| 2.68* |
| 6.09 |
| 40,000 |
| Inferred |
| Underground |
| 0.01 |
| 4.85 |
| 0.10 |
| 137 |
| 3.49* |
| 7.94 |
| TOTAL |
| 811,000 |
| Indicated |
| In-pit |
| 1.48 |
| 0.43 |
| 0.89 |
| 28 |
| 2.55 |
| NC |
| 14,000 |
| Inferred |
| In-pit |
| 1.33 |
| 0.01 |
| 0.19 |
| 2 |
| 1.49 |
| NC |
| 6,160,000 |
| Indicated |
| Underground |
| 1.30 |
| 1.98 |
| 0.56 |
| 45 |
| 2.99 |
| NC |
| 4,392,000 |
| Inferred |
| Underground |
| 2.03 |
| 0.22 |
| 1.08 |
| 9 |
| 2.97 |
| NC |
| 6,972,000 |
| Indicated |
| Total |
| 1.32 |
| 1.80 |
| 0.60 |
| 43 |
| 2.94 |
| NC |
| 4,406,000 |
| Inferred |
| Total |
| 2.03 |
| 0.22 |
| 1.07 |
| 9 |
| 2.97 |
| NC |
| Notes: *: The copper equivalent values are presented for comparison purposes.These zones are rich in Zn and Ag but are generally poor in Cu. 1. The cut-off grade used in the pit is an in-situ value of 36.70 $/t(equivalent to 0.67 % Cu or 1.52 % Zn). 2. The cut-off grade used underground is an in-situ value of 100 $/t(equivalent to 1.82 % Cu or 4.13 % Zn). 3. The mineral resources were estimated in compliance with CanadianInstitute of Mining, Metallurgy and Petroleum standards. These mineralresources were reported in accordance with the NI 43-101 standards. 4. Mineral resources do not constitute mineral reserves because theyhave not demonstrated economic viability. 5. Inferred resources are exclusive of indicated resources. 6. The effective date of these mineral resources is January 31, 2018. 7. The resources are estimated with a cut-off on the combined value ofa tonne of resource. 8. The in-situ value of the resources as well as the Cu and Znequivalents are calculated with 100 % recovery and prices of Cu: 5,500$/t, Zn: 2,420 $/t, Au: 1,200 $/oz and Ag: 16 $/oz. 9. All resources are presented in-situ and undiluted. 10. NC signifies "not calculated". 11. A link to the full resource announcement can befound here . |
Drill Results:
A summary of selected historical drill results isreported in Table 2:
| Table 2 – Summary of Selected Historical Drill Results |
| Drill Hole |
| From (m) |
| To (m) |
| Length (m) |
| Cu Eq |
| Cu (%) |
| Gold (g/t) |
| Zn (%) |
| Ag (g/t) |
| 1274-13-117 |
| 269.5 |
| 359 |
| 89.5 |
| 2.32 |
| 1.95 |
| 0.46 |
| 0.08 |
| 5.47 |
| 1274-16-224 |
| 113.4 |
| 161.5 |
| 48.1 |
| 3.05 |
| 2.66 |
| 0.52 |
| 0.03 |
| 5.75 |
| 1274-16-238 |
| 583.8 |
| 628 |
| 44.2 |
| 2.55 |
| 0.07 |
| 0.05 |
| 3.45 |
| 158.33 |
| 1274-14-152 |
| 71.8 |
| 83.3 |
| 11.5 |
| 8.95 |
| 3.8 |
| 7.72 |
| 0.03 |
| 10.18 |
| 1274-14-174 |
| 482.5 |
| 532 |
| 49.5 |
| 1.90 |
| 1.63 |
| 0.25 |
| 0.14 |
| 6.94 |
| 1274-14-208 |
| 218 |
| 230 |
| 12 |
| 7.2 |
| 5.40 |
| 2.62 |
| 0.03 |
| 8.86 |
| Notes: 1. The intercepts above are not necessarily representative of the truewidth of mineralization. 2. Copper Equivalent values calculated using metal prices of $4.00/lbCu, $1.50/lb Zn, $20.00/ounce Ag and $1,800/ounce Au. Metal recoveriesof 100% are applied in the copper equivalent calculation. |
Expansion Potential: The B26 Deposit has a continuous strike length of 1 km withadditional mineralization drilled up to a strike length of 1.6 km andto a depth of 0.8 km. The deposit shows expansion potential laterallywithin the down dip inside the felsic unit hosting the deposit ashighlighted in geoscientific works produced by SOQUEM and researchpartners; UQAC (University of Québec at Chicoutimi) and GSC(Geological Survey of Canada).
Given the nature of the VMS systems typically observedin the Abitibi, which are both deep-seated and occur in clusters andthe proximal location of Selbaie, the Company, therefore, believesthat the growth potential is significant and will provide furtherdetails in upcoming releases to highlight its exploration plan and theexpansion opportunities laterally and at depth.
The following plan view and central section provide anoverview of the current mineralization and expansion potential:
Figure 3 - PlanView showing lateral expansion targets laterally and alongstrike 3 .
Figure 4 -Central Section showing expansion targets at depth 3 .
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 all in accordance with the anniversary dates in Table 3below:
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.
All share issuances under the Definitive Agreement aresubject to the Company’s filing requirements with the CanadianSecurities Exchange.
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.
Qualified Person
This press release was reviewed and approved by Martin Demers, P.Geo.,OGQ No. 770, who is a qualified person as defined under NationalInstrument 43-101, and responsible for the technical informationprovided in this news release.
About Abitibi Metals Corp.:
Abitibi Metals Corp. is a Quebec-focused mineralacquisition and exploration company focused on the development ofquality base and precious metal properties that are drill-ready withhigh-upside and expansion potential. Abitibi’s portfolio ofstrategic properties provides target-rich diversification and includesthe high?grade B26 Polymetallic Copper Deposit (Ind: 7.0MT @ 2.94%Cu Eq & Inf: 4.4MT @ 2.97% Cu Eq) and the Beschefer Gold Project,where historical drilling has identified 4 historical intercepts witha metal factor of over 100 g/t gold highlighted by 55.63 g/t gold over5.57 metres and 13.07 g/t gold over 8.75 metres amongst four modelledzones. With approximately 52% insider ownership and a market cap under$7M, the Company is tightly structured for potential positivedevelopments.
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 onvarious social media platforms to keep stakeholders and the generalpublic informed and encourages shareholders and interested parties tofollow and engage with the Company through the following channels tostay updated with the latest news, industry insights, and corporateannouncements:
Twitter:
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.
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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