Abitibi Metals Corp

The investment case rests on a growing, high-grade copper-gold resource in an established Canadian mining district, valued at a low multiple of contained metal. The 2026 resource contains 775 million pounds of copper, 453,000 ounces of gold, 376 million pounds of zinc and 16.0 million ounces of silver, with gold and silver accounting for 29% of in-situ value at resource price assumptions of US$4.50 per pound copper and US$2,500 per ounce gold. The company estimates that resource tonnage has more than doubled since it optioned B26 in November 2023, at a blended discovery cost of CAD$0.037 per pound of contained CuEq added and all-in drilling costs of CAD$250 to CAD$400 per meter.

On the company's comparison using 6 October 2026 spot prices, Abitibi trades at approximately CAD$0.13 per pound of contained CuEq across all resource categories, compared with CAD$0.32 per pound for FireFly Metals and CAD$1.64 per pound for Foran Mining before its CAD$3.8 billion merger with Eldorado Gold. The resource is also sensitive to price: at a 20% lower cut-off, Indicated tonnage rises to 15.73 million tonnes at 1.88% CuEq and Inferred to 14.50 million tonnes at 2.01% CuEq, and spot copper of US$6.55 per pound on 6 October 2026 was 46% above the resource price assumption.

Initial metallurgical results support the quality of the deposit. On 19 August 2026, the company reported rougher flotation testwork by SLR Consulting in Cornwall, UK, on a larger, more representative copper-zone composite, recovering 98.2% of copper into a rougher concentrate grading 23.7% copper. The company describes the copper-zone flotation kinetics as rapid, implying a potentially simple circuit, and reports gold and silver recoveries consistent with earlier testwork. The deposit has an average width of approximately 8 m, a near-vertical dip of approximately 80 degrees and stacked lenses with a strike length of more than 1.5 km, with high-grade zones near surface.

Chief Executive Officer, President and Director Jonathon Deluce, CPA, CA, is a founder and shareholder with more than 10 years in mineral exploration and capital markets, and has led option and joint-venture negotiations including with Kirkland Lake Gold and Barrick. Chief Operating Officer Dave Bernier has more than 30 years of mine development and operating experience and was previously Chief Operating Officer of Foran Mining, advancing McIlvenna Bay to construction, and Canadian Country Manager for Pan American Silver. Chief Financial Officer Keith Gorman was previously Director of Financial Planning and Analysis at Foran Mining, with senior finance roles at Kirkland Lake Gold and Alamos Gold's Young-Davidson Mine.

Ben Pullinger, P.Geo., Senior Vice President Corporate Development and Growth, led ATEX Resources to a market capitalization of more than CAD$1.5 billion in under four years and held senior roles at Golden Star Resources, Excellon Resources and Roxgold. Louis Gariépy, P.Eng., Vice President Exploration, has more than 30 years of international exploration experience and was previously Vice President Exploration at O3 Mining through its acquisition by Agnico Eagle, with earlier roles at Anglo American, IAMGOLD and Milpo.

The board comprises Jonathon Deluce; Norman Farrell, a Montréal-based founder, officer and director of junior mining companies since 1987 with 30 years of capital markets experience in Québec; Charles Deluce, Chief Executive Officer of Delinks Holdings, with 25 years in exploration through a private prospect generator and junior mining board seats; and Jim Deluce, an industrial engineer with more than 40 years of leadership experience. An advisory committee, whose members are not directors or officers, includes Craig Parry, Eric Kallio, Victor Cantore, Chris Leavy and Shane Williams.

The company's strategy has three parts: grow and upgrade the B26 resource, test regional discovery potential, and consolidate an underexplored VMS district. A 40,000 m Phase 4 program is fully funded in 2026 as part of an 80,000 m two-year plan, with up to three drill rigs on site for the rest of 2026 after a wildfire suspension. On 17 September 2026, the company reported hole 1274-25-366-W1 on the eastern side of the deposit at 1.25% CuEq over 60.2 m from 548.8 m, including 3.72% CuEq over 9.2 m, and extensions of the Western Down-Plunge zone including 1.45% CuEq over 14.1 m from 985.3 m in hole 1274-26-378-W2. Results will feed into a future resource update, and the deposit remains open laterally and at depth.

The development path is targeting a Preliminary Economic Assessment (PEA) in 2027, following an internal scoping study initiated in the first quarter of 2026, with an environmental baseline program beginning in 2027. Further metallurgical work, including cleaner and locked-cycle flotation tests and zinc-zone flotation, is under way to feed the PEA. The company cites the brownfield setting as an advantage, with B26 on a previously permitted and mined property with existing road and 120 kV power infrastructure, year-round road access and access to rail.

Beyond B26, the first systematic regional program, reported on 29 July 2026, drilled 3,285 m in four holes and tested three of seven high-priority targets selected from historical drilling, induced polarization surveys and a 2025 airborne survey. Hole 1274-26-383, approximately 1.5 km west of B26, intersected 14.25 m of 1.13% zinc and 51.5 g/t silver from 455.75 m, at approximately 400 m vertical depth, in the same felsic volcanic package and alteration style as B26; the company interprets this as a possible peripheral expression of a new B26-like VMS system. Hole 1274-26-385, approximately 4.5 km northwest of B26, returned 1.0 m of 332 g/t silver and 0.83 g/t gold from 501 m. Historical drilling on the property was mostly limited to the upper 200 m, and outside B26 no earlier hole had reached 400 m depth. Downhole electromagnetic surveys are planned on all regional holes, a follow-up program is being designed for winter 2027, and the right of first refusal over SOQUEM's Wagosic and Carheil properties provides a route to consolidating a district the company says has seen no significant exploration since 1997.

Abitibi is an exploration-stage company with no revenue. Cash of approximately CAD$34 million and no warrants outstanding support the fully funded 40,000 m Phase 4 program, and the company states that it is funded through 2027, covering the period to its targeted PEA. The company has 251 million fully diluted shares, and insiders and its strategic partner holding approximately 30% of the company.

The company emphasizes low exploration costs. Its blended discovery cost of CAD$0.037 per pound of contained CuEq added since the 2023 option, and all-in drilling costs of CAD$250 to CAD$400 per meter, mean that resource growth has been achieved at low cost per unit of metal. Recent financings include Discovery Silver's 9.9% strategic investment and a May 2026 equity offering at CAD$0.58 per share.

On valuation, the market capitalization of approximately CAD$170 million equates to approximately CAD$0.13 per pound of contained CuEq at spot prices across Indicated and Inferred resources, compared with CAD$0.32 per pound for FireFly Metals. The share price rose from approximately CAD$0.27 on 20 November 2023 to approximately CAD$0.70 on 5 October 2026, an increase of approximately 159%, while the company's market capitalization rose from approximately CAD$17 million to approximately CAD$170 million over the same period.

• Commodity Price Volatility: B26's value depends on copper, gold, zinc and silver prices. The resource uses US$4.50 per pound copper and US$2,500 per ounce gold, compared with spot prices of US$6.55 per pound and US$4,140 per ounce on 6 October 2026. Gold and silver contribute 29% of in-situ value at resource price assumptions, according to the company.
• Regulatory & Permitting Risks: B26 has not yet entered permitting, and the environmental baseline program does not begin until 2027. The property has previously been permitted and mined, Québec is described by the company as a top-tier mining jurisdiction, and the company reports ongoing Indigenous and community engagement.
• Technical & Operational Risks: No economic study has been completed, mineral resources are not reserves, and 12.34 million tonnes of the resource are Inferred. Metallurgical results to date are from laboratory-scale rougher flotation, and zinc recoveries have not yet been reported. Simple copper mineralogy, a 98.2% rougher copper recovery and a near-vertical geometry suited to conventional underground methods support the development case.
• Environmental & Social Risks: Any future mine will require environmental approval and community support. Drilling was suspended in 2026 because of wildfires. The brownfield setting near the former Selbaie operation and early engagement with Indigenous and local communities reduce, but do not remove, these risks.
• Financing Risk: The company is funded through 2027 for exploration and studies, but development of B26 would require substantial additional capital. The company has no warrants outstanding and received a strategic investment from Discovery Silver, which it describes as a multi-mine producer.
• Execution Risk: The plan depends on continued resource growth, conversion of Inferred to Indicated resources, positive metallurgical and engineering outcomes and delivery of a PEA in 2027. Recent senior hires from Foran Mining and O3 Mining bring direct VMS development and exploration experience, but timelines remain subject to drilling results and weather.

Abitibi Metals offers exposure to a high-grade copper-gold VMS deposit in Québec that it now owns outright, with a resource of 12.96 million tonnes Indicated at 2.08% CuEq and 12.34 million tonnes Inferred at 2.20% CuEq, initial copper recoveries of 98.2% and a funded drill program of 40,000 m in 2026. The company trades at approximately CAD$0.13 per pound of contained CuEq, below the peers it cites, and holds a route to consolidating an underexplored district.

The main uncertainties are whether drilling continues to expand and upgrade the resource, whether metallurgical and engineering work supports robust economics, and how a future build would be financed. With the company funded through 2027, the next resource update, full Phase 2 metallurgical results, regional follow-up drilling and the PEA targeted for 2027 are the key milestones for investors to track.