Abitibi Metals (CSE: AMQ) announced Wednesday the results of an updated resource estimate for the B26 polymetallic deposit, incorporating 44 holes (13,510 metres) from the 2024 Phase 1 drill program.
Resources in the indicated category increased 62% to 11.3 million tonnes. It now grades 1.23% copper, 1.27% zinc, 0.46 g/t gold and 31.9 g/t silver, or 2.13% copper equivalent (CuEq). The contained metals total 307.9 million lb. copper, 316.9 million lb. zinc, 168,200 oz. gold and 11.6 million oz. silver, or 532.3 million lb. CuEq.
Resources in the inferred category increased 63% to 7.2 million tonnes, at grades of 1.56% copper, 0.17% zinc, 0.87 g/t gold and 7.4 g/t silver, or 2.21% CuEq. The contained metal count is 246 million lb. copper, 27.3 million lb. zinc, 200,800 oz. gold and 1.7 million oz. silver, or 348.8 million lb. CuEq.
The resource update highlights a 38% increase in contained copper, 15% increase in contained zinc, 29% increase in contained gold and 22% increase in contained silver relative to the last resource estimate in 2018.
Abitibi, which holds 9.9% of B26, is working to earn 80% of the project over seven years from Soquem, a subsidiary of Investissement Québec. The company has raised C$18.5 million from investors such as Frank Giustra, who helped start Wheaton Precious Metals (TSX: WPM, NYSE: WPM; LSE: WPM) and Endeavour Mining (TSX: EDV; LSE: EDV).
The company in April identified a new copper target west of B26 that shows potential for expanding the project.
The B26 polymetallic deposit remains open at depth and laterally. The ongoing 16,500-metre Phase 2 drill program has not been included in this resource update and initial results will be announced next week, it said.
“This substantial increase in contained metal inventory underscores the exceptional potential of this asset and validates our team’s disciplined approach to unlocking value in one of the world’s premier mining jurisdictions,” Abitibi CEO Jonathon Deluce said in a news release.
Deluce said that following an in-depth evaluation of both open-pit and underground scenarios for the B26 deposit, the company currently sees greater value in pursuing an underground-only model.
“However, we continue to see strong merit in the open-pit potential, particularly given the promising lower-grade, near-surface halo. We plan to conduct further work to better understand and outline this zone, which could enhance the resource’s versatility and add significant optionality in the future. Our approach remains focused on maximizing the long-term value of the B26 deposit,” Deluce said.
The company said it is fully funded with C$13 million to complete the remaining 2024 Phase 2 work program and an additional 20,000 metres of diamond drilling in 2025, which will be incorporated into a preliminary economic assessment.
Abitibi’s stock was halted on Wednesday as it delivered the news to the market, but closed the day up 2.5% on the CSE. The company has a C$44 million market capitalization.
