Abitibi takes pivotal step in B26 polymetallic exploration plan
Abitibi Metals Corp. [AMQ-CSE, AMQFF-OTC, 4KG-FSE) has outlined its expansion strategy for the B26 Polymetallic Copper Deposit in southwestern Quebec.
Back in November, 2023, Abitibi secured the option to earn an 80% interest in the B26 Deposit from SOQUEM Inc., a subsidiary of Investissement Quebec. Abitibi described the project as one of the most promising mineral discoveries in Quebec, with a current strike length of 1.0 kilometre and depth extent of 0.8 kilometres, open for expansion.
The B26 project covers 3,327 hectares and is located 5.0 kilometres south of the Selbaie mine and about 90 kilometres due west of Matagami.
The project contains an indicated resource of 6.97 million tonnes of 2.94% copper equivalent (CuEQ) (1.32% copper, 1.80% zinc, 0.60 g/t gold, and 43 g/t silver). On top of that is an inferred resource of 4.41 million tonnes of 2.97% CuEq (2.03% copper, 0.22% zinc, 1.07 g/t gold and 9.0 g/t silver).
The B26 mineralization is composed of a stacking of massive polymetallic and semi-massive polymetallic sulfide lenses extending over a kilometric strike length within a strongly dipping basin filled by felsic volcanism products.
The nearest infrastructure is Hecla Mining’s [HL-NYSE] Casa Berardi mine, about 60 kilometres away.
In its latest update, Abitibi said a Phase 11 drill program is underway with one rig currently on site for a planned program that includes 16,500 metres of drilling. The program is supported by a successful Phase 1, which indicated considerable expansion potential with targets organized in three exploration environments. They include the western plunge (down-dip) extension, mid-level target, and open-pit model optimization.
“The on-going Phase 11 drill program at the B26 Deposit marks a pivotal step in our exploration strategy,’’ said Abitibi CEO Jonathan Deluce. “We are particularly excited about the potential of the western plunge, where deeper drilling could significantly increase the contained metal inventory,’’ he said. “Abitibi’s review of historical data and Phase 1 drilling results suggests significant expansion opportunities following lateral trends, and at depth where previous drilling encountered copper-gold mineralization with widely spaced holes.’’
Meanwhile, the company remains well funded, with approximately $15.5 million to complete the remaining 16,500 metres planned for the 2024 work program as well as an additional 25,000 metres in 2025, which will form the foundation of an updated resource estimate and preliminary economic assessment to complete the B26 option.’’
Abitibi can earn an 80% interest in the project via a two-stage option, subject to a 2.0% net smelter return royalty granted to SOQUEM. Abitibi can buy back 1.0% of the NSR royalty for $2.0 million.
Abitibi Metals shares were unchanged Tuesday at 29.9 cents. The shares trade in a 52-week range of 68.8 cents and 11 cents.