Abitibi Metals Targets 25–30Mt B26 Resource in 2026 on Back of 18% Cu‑Eq Drill Hits in Quebec

• Abitibi Metals is advancing the B26 copper-gold deposit in Quebec with over 25,000 meters drilled in 2025, targeting a 25-30 million ton resource update in 2026 from the current 2+ million ounce gold equivalent (950 million pounds copper)
• World-class drill results include 18% copper equivalent over 6.3m and 4.5% copper equivalent over 21m, demonstrating high-grade polymetallic mineralization comparable to historic Selbaie mine that produced 53 million tons over 20 years
• Strategic capital raise at 65% premium (35 cents) via BMO bought deal with no warrants attracted institutional investors, building treasury to $23-24 million for 45,000 meters of drilling into 2027 while maintaining clean cap structure
• Advisory board expansion with Victor Cantore, Craig Parry, and Shane Williams positions company for M&A environment; management pursuing 5% strategic partnership with Quebec producer rather than dilutive 20% project-level investment
• 2026 catalyst strategy balances resource expansion through 150-600 meter step-outs, property-wide exploration for new VMS discoveries, and demonstrating economic viability to secure government grants while maintaining funding flexibility for potential $8 copper environment

Abitibi Metals Corp. (CSE:AMQ) is emerging as a significant player in Quebec's copper-gold space, with founder and CEO Jon Deluce outlining an ambitious yet disciplined strategy to advance the company's flagship B26 deposit. In a detailed discussion from London, Deluce articulated how the company is positioning itself within an active M&A environment while maintaining capital discipline and focusing on resource expansion that could transform the project into a tier-one asset.

Timing the Market: Capital Strategy in a Premium Environment

The company recently completed a bought deal financing through BMO at 35 cents per share - representing a 65% premium to the then-current market price of 23 cents in September. This strategic timing reflects Deluce's careful approach to capital markets. 

"We've had some very supportive institutions that have supported the stock and have acquired large open market positions since September."

The financing structure deliberately excluded warrants, a decision that signals confidence in the company's trajectory and attracts longer-term institutional capital rather than short-term hedge fund money. With approximately $23-24 million in treasury against a $65 million market cap (enterprise value of $40 million), Abitibi now has funding for 45,000 meters of drilling extending well into 2027. Notably, the company has raised the majority of its capital at 57 cents per share, demonstrating effective capital management over time.

Technical Team Investment Drives Drilling Success

A significant inflection point came when Abitibi strengthened its technical team earlier in 2025. The company drilled 2,500 meters in the first six months, then accelerated to 22,000 meters in the second half. 

The drilling strategy has been methodical rather than opportunistic. Following an internal scoping study, the team identified gaps in the drill grid of 250-300 meters and focused on converting resources to higher grades while expanding tonnage. This disciplined approach has generated world-class results, including 4.5% copper equivalent over 21 meters (within 1.8% over 70 meters) at the western boundary of the deposit, and more recently, 18% copper equivalent over 6.3 meters with 6 grams per ton gold within 7% over 21 meters.

"Just to note, if we were to do that copper equivalent at spot, all metals, the 6.3 would be 25% and the 21 meters would be 9.5% given the high gold credit. These are world-class results."

Resource Expansion

The B26 deposit currently hosts over 2 million ounces gold equivalent or 950 million pounds of copper. For 2026, Abitibi is targeting a resource update between 25-30 million tons. The company's technical team believes the 1.6-kilometer continuous copper-gold structure may have a more massive mineralization source at depth, and recent high-grade intersections could represent the beginning of discovering something substantially larger.

The exploration strategy balances near-term resource expansion with longer-range discovery potential. While infill drilling occurs at 150-meter step-outs, the company is simultaneously testing 600-meter step-outs before year-end. "We are taking big swings because we think that this could be a Selbaie size target," Deluce stated, referencing the historic mine 7 kilometers away that produced 53 million tons over 20 years from a 60-million-ton resource.

Interview with Jon Deluce, CEO of Abitibi Metals Corp.

Advisory Board: Building for Scale

Abitibi has assembled an advisory team that includes Victor Cantore (Amex Exploration), Craig Parry (British Columbia experience), Shane Williams (development expertise), Eric Kallio (geology and engineering), and Chris Leavy (capital markets). This roster covers multiple jurisdictions and skill sets, from technical execution to capital raising across different markets.

"We see this as building one of the leading Quebec junior mining companies in the business, just like Victor has done very well at Amex. We really took the approach that we see this as a much larger company than we are today, so we need to take the large company mindset and build backwards if that's our objective."

This approach addresses a common pitfall in junior mining where companies focus on growing market capitalization through continuous dilution without corresponding share price appreciation. By structuring financings carefully and surrounding the management team with experienced advisors who have built significant value in comparable situations, Abitibi aims to avoid the flat share price trajectory that characterises many junior developers.

Navigating the M&A Landscape: Selectivity Over Speed

Quebec has experienced significant consolidation recently, with takeovers of Probe Gold and Northern Superior Resources occurring within the past month. However, premiums in these transactions have ranged from 20-30%, which Deluce views as relatively modest given the stage of the commodity cycle.

"I think the premiums will increase. There's not a lot of serious development companies and juniors with resources that were 10 or 20 years ago. A lot of them have already been taken over early in this bull cycle."

Abitibi's strategy is to remain well-funded as a defensive posture, allowing management to be selective about partnerships. The company has received interest for 20% positions from producers but has declined. "We have a 20% position from a producer, competitive tension is cut and our valuation doesn't make sense to do that right now," Deluce stated. Instead, the target is a 5% strategic investment from a Quebec producer that provides validation and credibility without eliminating competitive tension or capping upside.

Similarly, project-level investments have been rebuffed because they would limit shareholder upside. 

"We've presented to probably the majority of the producers in the industry, because there are so few high-grade copper golds available in the market." 

Market Positioning for the Copper Cycle

Deluce views 2025 as primarily a gold-driven market, with copper potentially taking center stage in 2025-2026. 

"There's been a lot of money made in gold and there's a lot of people taking profits saying what's next. What is the next sector to move? I think that's going to be copper, especially with a gold kicker, and I think that's where we really have a competitive edge."

With copper creeping toward $8 per pound in management's view and gold remaining strong, the B26 deposit's polymetallic nature becomes increasingly valuable. The company believes the project is already economic at current metal prices, but stronger pricing would substantially enhance valuations.

"At some point we're going to hit an $8 copper market. In that environment, this is an asset that's very, very valuable."

The Investment Thesis for Abitibi Metals

• High-grade polymetallic deposit with world-class intercepts (18% Cu-eq over 6.3m, 4.5% Cu-eq over 21m) in prolific Quebec mining camp comparable to 53-million-ton Selbaie mine
• Clean capital structure with institutional backing, no warrants, and treasury of $23-24 million funding 45,000 meters of drilling through 2027
• Near-term catalysts including 25-30 million ton resource update in 2026, 600-meter step-out results, and winter property-wide discovery drilling across four high-priority targets
• Strategic M&A positioning with well-funded balance sheet enabling selectivity on partnerships; seeking 5% strategic investment from Quebec producer to validate asset without capping competitive tension
• Experienced advisory board including Victor Cantore, Craig Parry, and Shane Williams providing expertise across geology, engineering, development, and capital markets
• Undervalued relative to peers at $65 million market cap ($40 million EV) for 2+ million oz AuEq resource with expansion potential to tier-one scale
• Copper-gold leverage in emerging bull market for base metals with high gold credits (6 g/t in recent intercepts) providing price protection and upside optionality
• Management alignment with significant insider ownership and disciplined capital allocation focused on per-share value creation rather than market cap growth
• Discovery potential across 1.6km mineralised trend with technical team believing massive source mineralization exists at depth; property-wide VMS targets offer blue-sky upside

The convergence of energy transition demand for copper, structural gold strength, and limited new high-grade discoveries is creating exceptional conditions for polymetallic projects in stable jurisdictions. Quebec's mining-friendly environment, combined with recent M&A activity, validates the strategic value of development-stage assets. 

With global copper supply constrained and few tier-one discoveries in recent decades, projects demonstrating scale potential and high grades command increasing premiums. As copper approaches $8 per pound and producers seek to replenish reserves, assets like B26 with proven mineralization, expansion potential, and proximity to infrastructure represent scarce opportunities in the market.

TL;DR: Executive Summary

Abitibi Metals is advancing the high-grade B26 copper-gold deposit in Quebec toward a 25-30 million ton resource update in 2026, backed by world-class drill results (18% Cu-eq over 6.3m) and $23-24 million treasury funding 45,000 meters through 2027. Management's disciplined capital strategy - no warrants, institutional backing at premiums, strategic advisory board - positions the company for M&A optionality while maintaining discovery upside across four property-wide targets. With few high-grade polymetallic projects available in stable jurisdictions and copper entering a potential bull market, Abitibi offers leveraged exposure to base metal prices at a $40 million enterprise value.

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