• Abitibi Metals (CSE:AMQ) secured the B26 deposit in Quebec through an option agreement with the Quebec government, representing the first time this 20-year privately developed asset has entered the public markets with an updated resource of 18.5 million tons at 2.18% copper equivalent.
• The company is well-capitalized with $18.4 million in cash, funding operations through Q1 2027, and has completed over $10 million of the $14.5 million work commitment required to earn 80% ownership of the B26 deposit ahead of schedule.
• CEO Jon Deluce, a chartered accountant with a decade of mining consulting experience including work with Kirkland Lake Gold, has assembled a strengthened operational team including former executives from O3 Mining and Agnico Eagle to reduce reliance on third-party contractors.
• The B26 deposit features strong metallurgical recoveries (98% copper, 90% gold, 96% zinc) and ranks in the top 10% of VMS opportunities worldwide, with significant 0.87 g/t gold in inferred resources and untested exploration potential at depth.
• The company plans to commence a two-drill program scaling to three drills, targeting 400-1,000 meter vertical depths using directional drilling to test the 1.6-kilometer continuous strike length and evaluate economic potential.

As global copper demand accelerates driven by electrification and renewable energy infrastructure, investors are increasingly focused on jurisdictionally secure, high-grade deposits in stable mining regions. Abitibi Metals Corp (CSE:AMQ) presents a compelling opportunity in this landscape, having secured exclusive development rights to Quebec's B26 deposit—a substantial copper-gold-zinc resource that spent two decades in government hands before entering the public markets for the first time.

The company's recent corporate developments, combined with copper's strengthening fundamentals and Quebec's mining-friendly regulatory environment, position Abitibi Metals as a noteworthy consideration for investors seeking exposure to North American copper development stories with significant scale potential.

The B26 Asset

The centerpiece of Abitibi's portfolio is the B26 deposit, acquired through a comprehensive option agreement with SOQUEM (Investment Quebec's mining arm) in November 2023. This asset represents a rare opportunity in the Canadian mining sector—a substantial resource developed over 20 years by a government entity that is now available to public market participants for the first time.

Scale and Quality in a Tier-One Jurisdiction

The deposit's technical specifications underscore its potential significance. With an updated resource estimate of 18.5 million tons grading 2.18% copper equivalent, B26 ranks among the larger undeveloped VMS (volcanogenic massive sulfide) deposits in Canada. The resource combines indicated and inferred categories, providing a substantial foundation for future development planning.

Metallurgical characteristics further enhance the deposit's attractiveness. Preliminary testing indicates strong recovery rates across all commodities: 98% for copper, 90% for gold, 96% for zinc, and 70% for silver. These recovery rates compare favourably with operating mines in similar geological settings and suggest robust economics potential pending detailed engineering studies.

The gold component deserves particular attention from investors. B26 carries significant gold credits, averaging 0.87 grams per ton in inferred resources and 0.45 grams per ton in indicated resources. This gold content positions the deposit favorably for potential interest from gold-focused producers increasingly seeking copper exposure, while the gold credits substantially improve overall project economics.

Interview with Founder & CEO Jon Deluce

Management Development

CEO Jon Deluce brings relevant industry experience to Abitibi's development efforts. His background includes seven years in mining consulting with Ernst & Young, including two years with Kirkland Lake Gold at their Detour and Macassa operations in Australia. This operational exposure, combined with his chartered accountant credentials, provides both technical and financial expertise relevant to advancing B26 toward development decisions.

The company has made strategic hires to strengthen its operational capabilities. Recent additions include Louis Gariépy, former VP of Exploration at O3 Mining (recently acquired by Agnico Eagle), and Laurent Eustache who holds exploration successes with Aurizon Mines and Agnico-Eagle Mines. These appointments address a critical consideration for potential strategic investors or acquirers: the availability of experienced personnel capable of managing significant capital deployment and development execution.

Deluce explained, highlighting the importance of operational credibility in attracting institutional capital.

"One of the questions that we've been asked is if we get an investment from one of the producers which we've had numerous [discussions with] is who's your team that we can entrust with the capital to look at the end goal of development and work backwards,"

Financial Position and Deal Structure

Abitibi's financial position provides significant optionality and patience in current market conditions. The company maintains $18.4 million in cash, sufficient to fund operations through Q1 2027 according to management projections. This runway removes near-term financing pressure and allows management to focus on operational execution rather than capital raising in potentially unfavourable market conditions.

The B26 option structure aligns with Quebec's economic development objectives while providing clear value creation potential for Abitibi shareholders. The agreement requires $14.5 million in work commitments over time to earn 80% ownership, with the company having already completed over $10 million of this obligation. Additional components include:

• $400,000 in cash payments (completed)
• 9.9% equity issuance to SOQUEM (completed)
• Delivery of a Preliminary Economic Assessment

^{The structure includes built-in mechanisms that could result in Abitibi acquiring 100% ownership over time. SOQUEM's 20% carried interest converts to a 2% net smelter return if they choose not to fund their proportional share of future development capital, with Abitibi retaining a 1% buyback option.}

Exploration Strategy and Technical Program

Abitibi's immediate technical program reflects a strategic approach to resource expansion and economic optimization. The company plans to deploy two drill rigs initially, scaling to three, targeting depths from 400 to 1,000 meters vertical. The program utilizes directional drilling techniques and leverages existing drill holes through branching strategies to optimize cost efficiency.

The exploration strategy addresses both near-term economic potential and longer-term scale expansion. Priority targets include higher metal factor zones on the eastern portion of the deposit, guided by gravity anomaly data, while also testing western plunge extensions. The deposit remains open along its 1.6-kilometer strike length in both directions, suggesting significant expansion potential.

Management's approach reflects awareness of market conditions and capital efficiency requirements. Rather than attempting to drill the entire deposit simultaneously, the company is prioritizing areas most likely to contribute to economic tonnage while maintaining systematic evaluation of the broader target area.

Strategic Optionality and Development Pathways

Abitibi's management has identified two primary value creation pathways that provide strategic flexibility depending on market conditions and stakeholder preferences:

• First, focusing on demonstrating near-term economic viability through engineering studies and resource optimization, targeting production profiles of approximately 100,000 gold-equivalent ounces annually over a 10-year mine life.
• Second, a pathway emphasizing the deposit's expansion potential and district-scale opportunity. Given the asset's development by a government entity rather than a resource-focused junior company, systematic exploration of extensions and depth potential has been limited creating opportunity for significant resource growth that could position B26 as a much larger, longer-life operation comparable to major VMS deposits in the region.

Deluce noted, emphasizing the unusual opportunity for resource expansion that typically wouldn't exist in assets developed by resource-focused companies,

"This deposit is truly open and only open because this was developed by a government entity versus a major junior that would have drilled this off before it was ever sold to us."

Capital Markets Strategy

Quebec's regulatory and infrastructure environment provides additional competitive advantages. The province maintains established mining regulations, existing infrastructure networks, and supportive government policies toward resource development. These factors reduce development risk and timeline uncertainty compared to more remote or jurisdictionally challenging locations.

Management's capital markets approach reflects awareness of current sector challenges while positioning for improved market conditions. The company has secured institutional support including a bought deal arrangement with Bank of Montreal, unusual for a company of Abitibi's current size but reflecting the institution's assessment of the asset quality and team capabilities.

Near-term objectives include expanding institutional awareness, securing a strategic investment of 5-9.9% from an industry participant, and improving market liquidity through increased retail participation. The company's current valuation suggests significant disconnect between asset value and market recognition.

The strategic investment component could provide both capital and operational expertise while validating the asset's quality for broader market participants. Discussions with multiple producers are ongoing, according to management, suggesting growing industry interest in the opportunity.

The Investment Thesis for Abitibi Metals

• Secure a rare, large-scale copper asset in a tier-one jurisdiction - B26 represents one of the few substantial undeveloped copper deposits available in the Canadian public markets, with 18.5 million tons of resource in Quebec's stable regulatory environment.
• Benefit from patient capital and operational flexibility - With $18.4 million cash funding operations through Q1 2027, investors avoid near-term dilution risk while management executes systematic resource expansion and economic studies.
• Capitalize on gold-copper convergence trends - The deposit's significant gold credits (0.87 g/t inferred) position it favourably for interest from gold producers seeking copper exposure, potentially expanding the acquirer universe beyond traditional copper companies.
• Access institutional-quality management with operational experience - Recent hires from O3 Mining and Agnico Eagle provide credible operational expertise that reduces execution risk and enhances attractiveness to strategic investors.
• Position for multiple value realization pathways - The asset supports both near-term economic development scenarios and longer-term district-scale expansion, providing strategic optionality as market conditions evolve.
• Leverage undervaluation relative to cash and asset quality - Trading at a significant discount to asset value and cash suggests significant revaluation potential as market recognition improves.
• Participate in Quebec's mining sector advantages - Strong infrastructure, established regulatory framework, and government support through SOQUEM partnership provide development advantages unavailable in many jurisdictions.

Conclusion

Abitibi Metals represents a differentiated opportunity in the Canadian copper development sector, combining substantial resource scale with jurisdictional security and patient capital positioning. The company's acquisition of the B26 deposit provides public market access to an asset developed over two decades in government hands, creating unusual exploration upside potential that typically doesn't exist in junior-developed properties.

The strengthened management team, substantial cash position, and strategic partnership with Quebec's investment arm provide multiple catalysts for value realization over the coming 12-24 months. While execution risk remains inherent in any development-stage mining investment, Abitibi's combination of asset quality, financial resources, and strategic positioning suggests favourable risk-adjusted return potential for investors seeking copper exposure in stable jurisdictions.

The company's current valuation disconnect relative to both cash holdings and asset quality indicates significant revaluation potential as operational catalysts unfold and market recognition improves through 2025.

Copper Macro Thematic Analysis

The global copper market faces unprecedented supply-demand dynamics driven by electrification trends, renewable energy infrastructure deployment, and strategic mineral security concerns. Demand growth projections consistently exceed identified supply additions, creating a structural deficit that supports higher long-term pricing and increased premiums for politically stable jurisdictions.

China's dominance in copper processing and strategic mineral export restrictions have highlighted supply chain vulnerabilities for Western economies. This dynamic creates enhanced value for deposits in allied jurisdictions, particularly Canada, where regulatory certainty and infrastructure access reduce development risk. Quebec specifically benefits from established mining regulations, existing infrastructure networks, and supportive government policies.

Supply constraints from traditional copper-producing regions, combined with extended development timelines for new projects, create scarcity value for advanced-stage deposits in stable jurisdictions.

"50% of copper supplies from areas of countries of political instability [means] there's going to be a much bigger premium on tier one jurisdictions going forward," as CEO Deluce observed.

The convergence of copper and gold in poly-metallic deposits like Abitibi's B26 addresses evolving preferences among major producers. Traditional gold companies increasingly seek copper exposure for portfolio diversification, while copper producers value gold credits for enhanced project economics. This trend expands the potential acquirer universe for assets like B26 that offer significant exposure to both commodities.