Abitibi Metals' B26 Deposit: How Three-Zone Geology Supports Grade, Scale & Underground Economics

• Abitibi Metals' B26 deposit is a volcanogenic massive sulfide (VMS) system overprinted by an orogenic gold system, structured across three geologically distinct zones: Feeder Cu, Horizon Zn, and Remob Ag-Zn,  each contributing a different metal profile to the overall 13.0 million tonnes indicated and 12.3 million tonnes inferred resource.
• The Feeder Cu zone dominates the deposit by tonnage, hosting approximately 72% of indicated and 96% of inferred resources, with high-grade copper-gold mineralisation and milling recoveries of 98.3% for copper and 90% for gold.
• The Horizon Zn zone adds meaningful zinc-silver optionality at 4.02% zincZn and 92.5 grams per tonne of silver in 3.27 million tonnes of indicated resources, acting as a natural revenue hedge and offering lateral expansion potential confirmed by drilling 500 to 600 metres west of known zones.
• An underground mining scenario embedded in the resource estimate applies costs of US$60.50 per tonne for ore mining and US$24 per tonne for processing, supporting a US$100 per tonne in-situ cut-off value, with sensitivity analysis confirming grade holds well across a range of cut-off assumptions.
• A current rock density factor of 2.8 tonnes per cubic metre applied to the Feeder Cu zone is considered conservative for massive sulphide systems, and an upward revision in a future estimate could increase reported tonnage without additional drilling.

Three Zones, One System

When investors assess B26, most focus on the headline resource: 25.3 million tonnes combined at 2.1% copper equivalent. While significant, viewing the deposit as a single homogeneous block understates how the system actually works and why it differs from a conventional single-metal system.

Abitibi Metals' B26 deposit combines copper-gold dominant feeder mineralisation with zinc-silver exhalative horizons across three distinct geological zones: Feeder Cu, Horizon Zn, and Remob Ag-Zn, creating a polymetallic resource base of 13.0 million tonnes indicated and 12.3 million tonnes inferred. This zoned structure matters economically, as the Feeder Cu zone drives the project's core value, while the zinc and silver horizons provide additional revenue streams and potential exploration upside.

The Feeder Cu Zone: The Economic Core

The Feeder Cu Zone represents the core of the deposit, containing 9.29 million tonnes of indicated resources and 11.82 million tonnes of inferred resources. The zone is copper-gold dominant and consistent with stringer-style volcanogenic massive sulphide (VMS) mineralisation formed within the sub-volcanic feeder system beneath a seafloor exhalative event.

Indicated grades average 1.60% copper and 0.58 grams per tonne of gold for a combined 2.10% copper equivalent, while inferred grades are comparable at 1.67% copper and 0.70 grams per tonne of gold. Zinc content remains minimal, reflecting the copper-dominant nature of the Feeder Cu zone. Metallurgical assumptions apply milling recoveries of 98.3% for copper and 90% for gold, indicating sulphide mineralogy compatible with conventional flotation processing and supporting favourable processing economics.

Drilling continues to confirm strong grade continuity and depth potential. At depths beyond 800 metres, recent drilling returned 17.91% copper equivalent over 6.3 metres, including 13.48% copper and 5.15 grams per tonne of gold, the highest-grade intercept reported to date. The zone extends over approximately 1,850 metres of strike and more than 1,000 metres vertically, remains open in all directions, and is the primary focus of ongoing Phase 4 expansion drilling.

The Horizon Zn Zone: Polymetallic Optionality

The Horizon Zn Zone provides base-metal diversification within the deposit, hosting 3.27 million tonnes of indicated resources and 0.34 million tonnes inferred resources with a markedly different metal profile from the copper-gold feeder system. Indicated grades average 4.02% zinc and 92.5 grams per tonne of silver, while inferred resources grade 3.24% zinc and 43.1 grams per tonne of silver, consistent with the exhalative horizon typical of volcanogenic massive sulphide (VMS) systems where zinc and silver accumulate away from the copper feeder.

Metallurgical recoveries of 96.1% for zinc and 72.1% for silver translate to approximately 131,700 tonnes of contained zinc and 9.7 million ounces of contained silver in the indicated category, providing a secondary revenue stream that can help offset operating costs. The zone is currently concentrated in the eastern portion of the deposit, although recent drilling has identified zinc-silver mineralisation 500 to600 metres west of known zones at depth, suggesting the horizon may extend as a parallel lens and offering potential to expand zinc-silver credits through Phase 4 step-out drilling.

President and Chief Executive Officer of Abitibi Metals, Jon Deluce,  commented on this dynamic: 

"This is why the producers are looking for copper and gold, especially VMS. You have the hedge of being able to produce multiple commodities, that sometimes some of them will end up being free at the end of the day."

The Remob Ag-Zn Zone: High-Grade Silver in a Compact Footprint

The Remob Ag-Zn zone is the smallest of the three at 0.40 million tonnes of indicated and 0.18 million tonnes of inferred resources, but it carries the deposit's highest silver grades at 101.5 grams per tonne of silver in the indicated category and 153.1 grams per tonne of silver in the inferred, alongside 2.55% and 2.14% zinc respectively.

This zone represents remobilised silver-zinc mineralisation. The 72.1% silver recovery applied reflects the partially refractory nature of remobilised silver, a known characteristic in this geological setting. Additional metallurgical testing planned for the second to third quarter of 2026 could refine these recoveries.

The Remob Ag-Zn zone's footprint is modest relative to the Feeder Cu zone, but still contributes meaningfully, containing 882,000 ounces (koz) of inferred silver and 1,312 koz of indicated silver. At spot silver of approximately US$88 per ounce as of late January 2026, versus the resource's base-case assumption of US$30 per ounces, the in-situ silver contribution carries materially higher implied value at current pricing.

Reading the Underground Economics

The B26 resource estimate is based on an underground mining scenario using a cut-off grade equivalent to an in-situ value of $100 per tonne. This threshold reflects estimated operating costs of $60.50 per tonne for underground mining, $24 per tonne for processing, and $1.50 per tonne for site administration, and incorporates standard underground mining assumptions, including recovery and dilution.

At the current indicated resource grade of 2.1% copper equivalent, the estimated metal value per tonne comfortably exceeds this economic threshold under the base-case commodity price assumptions used in the study. At spot metal prices as of late January 2026, the copper equivalent grade increases to approximately 2.59%, widening the margin between operating costs and contained metal value.

The resource scenarios in the estimate illustrate the B26 deposit’s resilience. Reducing the cut-off by 20% to US$80 per tonne expands the combined resource to 30.3 million tonnes, while increasing it by 20% to US$120 per tonne reduces indicated tonnage to 10.80 million tonnes, but raises the copper equivalent grade to 2.27%. 

Across this range of assumptions, the deposit maintains its economic viability.

Deluce addressed how internal scoping work has informed the company's drilling priorities:

“We're looking blue sky and looking at the full picture as a whole so that it helps influence how we improve the pathway to delivering a robust PEA”

The preliminary economic assessment (PEA) is scheduled for the first quarter of 2027, following completion of additional metallurgical testing in the third quarter of 2026 and the internal scoping study milestone in the first quarter of 2026.

The Density Factor: Organic Upside Without the Drill Bit

A technical detail with direct resource implications sits in the footnotes of the estimate, with the density factor applied is 2.8 tonnes per cubic metre for the Feeder Cu and Remob Ag-Zn zones, and 2.95 tonnes per cubic metre for the Horizon Zn zone. These values are carried from SOQUEM's original 2013-2017 density measurements.

Deluce further noted:

"The deposit as of today is stated at a 2.8 density factor. When we look at stringer systems, massive sulfides, this is understated. We didn't have the density data to support an adjustment for this resource, but we anticipate that coming into the next resource."

Massive sulphide systems typically carry bulk densities of 3.0 to 3.5 tonnes per cubic metre. A revision of even 0.2 tonnes per cubic meter across the Feeder Cu zone's 9.29 million tonnes of indicated material would mechanically increase reported tonnage without additional drilling expenditure. This distinguishes the next estimate update from a purely drill-driven resource event.

What Remains to Be Proven Before B26 Reaches Economic Definition

B26 has not yet undergone a formal PEA, so current underground cost assumptions remain indicative. Key aspects such as mine design, stope geometry, dilution management, and capital intensity will be stress-tested as the project advances toward that milestone. Metallurgical recoveries, while strong at a system-wide level, have not yet been confirmed on a zone-by-zone basis through locked-cycle testing, with additional second quarter to third quarter of 2026 testing planned to refine results, particularly for the Remob Ag-Zn zone’s 72.1% silver recovery.

Ownership and governance considerations also remain important. Abitibi currently holds 50% of B26 and retains the option to earn an additional 30% from SOQUEM. Commodity price sensitivity is another factor: while base-case assumptions of US$2,500 per ounce of gold and US$4.50 per pound of copper are conservative relative to current spot prices, sustained price reversals could compress the margin above the economic cut-off. The polymetallic nature of the deposit offers partial hedging but does not eliminate commodity risk.

The Investment Thesis for Abitibi Metals

• B26 combines copper-gold dominant Feeder Cu, zinc-silver Horizon Zn, and high-grade silver Remob Ag-Zn zones, reducing reliance on a single commodity and providing diversified revenue streams.
• Milling recoveries of 98.3% for copper and 90% for gold, alongside 96.1% zinc and 72.1% silver, reduce technical and processing risk ahead of the preliminary economic assessment.
• A US$100 per tonne in-situ cut-off supports the indicated resource’s value across a 20% upward and downward range of cut-off assumptions.
• Current density factor of 2.8 tonnes per cubic metre may understate tonnage; a future update could increase reported tonnage without additional drilling.
• Step-out drilling 500 to 600 metres west of the Horizon Zn zone could expand the silver-zinc contribution without adding Feeder Cu tonnage.
• A preliminary economic assessment targeted for the first quarter of 2027, supported by metallurgical testing in the second and third quarters of 2026 and an internal scoping study in the first quarter of 2026, positions B26 for progression toward developer-stage technical and valuation milestones.

B26 has progressed from geological proof-of-concept to a stage where the three-zone architecture, underground cost parameters, and metallurgical performance are sufficiently defined to support formal economic studies. Key indicators for investors over the next 12 months include Phase 4 drill results targeting depth extensions of the Feeder Cu zone, the outcome of additional metallurgical testing scheduled for 2026, and updated density measurements that could influence the next resource estimate.

TL;DR

B26 is not a single-commodity deposit. Its Feeder Cu, Horizon Zn, and Remob Ag-Zn zones each carry distinct grade profiles and metallurgical characteristics that together support copper-gold economics with meaningful zinc and silver optionality. The underground cost parameters embedded in the resource confirm viable economics at conservative pricing, while a pending density factor revision and Horizon Zn western extension offer potential tonnage upside without additional drilling. With a preliminary economic assessment targeted for Q1 2027, the deposit is advancing from geological proof-of-concept toward economic definition.

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