Abitibi Metals Targets 30-50 Million Ton Deposit Expansion to Attract Major Mining Acquisition

• Abitibi Metals (CSE:AMQ) acquired option on B26 deposit from Quebec government subsidiary SOQUEM, inheriting $25 million in prior investment and a 18.5 million ton resource at 2.18% copper equivalent
• Fully funded through Q1 2027 with $17 million treasury supporting 17,000 meters of current drilling and 25,000 meters planned for next year using three active rigs
• High-grade polymetallic deposit featuring copper-gold-zinc-silver mineralization with exceptional 98% copper recovery rates and strong gold credits potentially increasing grade to 2.5% copper equivalent
• Strategic Quebec location near historic Selbaie mine (7km away) with existing power infrastructure, road access, and government partnership through Investment Quebec providing development pathway
• Management targets major acquisition by demonstrating scale potential from current 18.5 million tons to 30-50 million ton deposit, positioning for strategic investment or takeover by major mining companies

Abitibi Metals Corp. represents a rising development story in Quebec's prolific mining region, having secured an option on the B26 polymetallic deposit from a Quebec government subsidiary. With copper demand driven by energy transition requirements and limited high-grade polymetallic deposits available in stable jurisdictions, the company's strategic positioning offers significant value creation potential for investors seeking exposure to critical metals development.

Strategic Asset Acquisition & Government Partnership

In late 2023, Abitibi Metals optioned the B26 deposit from SOQUEM, a subsidiary of Investment Quebec, inheriting a substantial foundation of prior investment. 

"Up until us optioning it, it was developed by an exploration arm of the Quebec government leading to them putting $25 million of investment into the asset having an initial resource that we've leveraged to grow into our maiden published resource of about 18.5 million tons combined." 

The partnership structure provides strategic advantages beyond capital efficiency. The Quebec government's involvement signals strong provincial support for mining development, particularly given the economic significance of nearby operations. The historic Seibaie mine, located just 7 kilometers from B26, operated for 20 years until the early 2000s and produced 53 million tons of similar polymetallic material with comparable mineralization characteristics and recovery profiles.

Abitibi Metals maintains a robust financial position with $17 million in treasury, providing full funding through Q1 2027. This capital supports the current 17,000-meter drilling program through year-end, followed by an additional 25,000 meters planned for 2026. The company has accelerated its earn-in timeline significantly, completing exploration commitments five years ahead of schedule and requiring only $3.5 million in remaining work commitments to secure 80% ownership.

"We are over five years ahead of schedule. So really our major remaining commitment is the delivery of a PEA, because we are funded to complete our work commitments." 

Deluce noted, highlighting the company's operational efficiency and financial discipline. The preliminary economic assessment delivery represents the final milestone for option exercise, targeted for completion in 2026.

Resource Expansion Strategy

The B26 deposit demonstrates exceptional metallurgical characteristics with copper recoveries of 98%, gold at 90%, zinc at 96%, and silver at 70% - metrics that align with the historic Salay mine performance. These recovery rates significantly exceed typical massive sulfide deposits, reflecting the hybrid stringer-hosted system's advantages. 

Current drilling efforts prioritize 80% step-out drilling with distances up to 500 meters from known mineralization, designed to test deposit continuity and scale potential. 

"Can we move this from 18.5 million to something that is 30 to 50 million tons? That's what we're trying to swing for, with this drill program. We are trying to showcase a path where there's a lot more growth at B26." 

Interview with Jon Deluce, CEO of Abitibi Metals Corp.

Enhanced Gold Credits and Commodity Leverage

A distinguishing feature of B26 involves its significant gold content, providing substantial leverage to gold price movements. 

"We have one of the highest gold credits associated with the primary copper deposit in North America. This is a gold rich VMS deposit that offers a lot of upside and if we use today's gold prices that moves to over 2.5% copper equivalent."

The gold component becomes increasingly important at depth, mirroring patterns observed at successful regional operations. Historical drilling has intersected zones containing over 25 grams per ton gold within massive chalcopyrite units, suggesting potential for higher-grade gold zones that could enhance overall project economics and attractiveness to major mining companies seeking polymetallic exposure.

Development Pathway

B26 benefits from exceptional infrastructure positioning within Quebec's mining-friendly jurisdiction. A power line traverses the property with an existing substation, while year-round road access enables continuous drilling operations - a significant advantage over many exploration projects in northern regions. The proximity to the former Selbaie mine site, which hosted a 5,000 ton per day mill, provides additional optionality for future processing infrastructure.

"We have a power line that runs through the project, a substation. So, a lot of that expensive infrastructure is in place that we can leverage. So, certainly a lower capex build compared to other areas of the Abitibi." 

The company envisions potential for a central mill complex serving multiple deposits within the broader district.

Valuation Perspective

Despite significant resource growth and operational progress, Abitibi trades at a substantial discount to comparable companies. With a market capitalization under $40 million against $17 million cash, the enterprise value appears disconnected from the deposit's inherent value and development potential. Management attributes this valuation gap to limited market awareness and previous operational delays that have since been addressed through team strengthening and process improvements.

"We need to get our story out there. We're still quite unknown to the market. We have very strong institutional and banking contacts. Our last deal was a bought deal by BMO, a very small company to be involved with. But we need to get it out to a retail audience." 

Strategic Exit Strategy

Abitibi's ultimate objective centers on attracting strategic investment from major mining companies, leveraging the scarcity of high-grade polymetallic deposits in stable jurisdictions. The company's approach balances resource expansion with economic demonstration to appeal to potential acquirers. 

"At the end of the day, our goal is to produce an economic deposit that we can sell to a major. There's very few of these high-grade poly metallic deposits available in the market."

The strategy acknowledges major mining companies' preference for scale and their ability to conduct internal economic assessments. By demonstrating significant tonnage potential while maintaining high grades, Abitibi positions B26 as an attractive acquisition target for companies seeking to replace depleting reserves with long-life, high-quality assets in favorable jurisdictions.

The Investment Thesis for Abitibi Metals

• Proven Resource Base: 18.5 million ton resource at 2.18% copper equivalent with potential expansion to 30-50 million tons based on open-ended mineralization and successful step-out drilling results
• Exceptional Metallurgy: Industry-leading recovery rates of 98% copper, 90% gold, 96% zinc, and 70% silver, supported by clean concentrate production with minimal deleterious materials
• Strategic Location: Quebec jurisdiction with existing power infrastructure, year-round road access, and proximity to proven mining district with 20-year production history at nearby Selbaie mine
• Government Partnership: Strong provincial support through Investment Quebec involvement, providing validation, potential future financing access, and alignment with regional economic development objectives
• Financial Strength: Fully funded through Q1 2027 with $17 million treasury supporting aggressive 42,000-meter drilling program over next 18 months without dilutive financing requirements
• Acquisition Target Profile: Scarcity of high-grade polymetallic deposits in stable jurisdictions creates compelling value proposition for major mining companies seeking reserve replacement and growth opportunities

The global energy transition continues driving unprecedented demand for copper, with electrification requirements creating structural supply deficits projected through the decade. Quebec represents one of the world's premier mining jurisdictions, offering political stability, established infrastructure, and government support for resource development. The province's commitment to clean energy and critical minerals development aligns with broader North American supply chain security initiatives.

High-grade polymetallic deposits have become increasingly scarce as major mining companies face depleting reserves and declining ore grades across existing operations. The combination of copper, gold, zinc, and silver within a single deposit provides operational efficiency and cash flow diversification that appeals to large-scale producers. Quebec's mining-friendly regulatory environment, established permitting processes, and existing workforce create favorable conditions for project advancement.

Government partnerships through entities like Investment Quebec provide validation and potential co-investment opportunities that reduce development risk while maintaining upside participation. The strategic proximity to existing infrastructure and proven mining districts significantly reduces capital requirements compared to greenfield developments in remote locations.

"There's very few of these high-grade poly metallic deposits available in the market. So, we're trying to balance both of those buckets and we can do that because there's still, in our opinion, a lot of upside still in the deposit."