Abitibi Metals (CSE:AMQ) - Doubles Resource on High Grade Copper-Gold VMS

Abbott to Be Metals (AMQ) – B26 Deposit Update & Strategy Summary

Key Concepts:

• B-26 Deposit: A copper-gold-zinc-silver Volcanogenic Massive Sulfide (VMS) deposit located in Quebec, Canada, being developed by Abbott to Be Metals.
• VMS (Volcanogenic Massive Sulfide): A type of ore deposit formed from hydrothermal vents on the seafloor, typically rich in copper, zinc, gold, and silver.
• Copper Equivalent (CuEq): A standardized measure used to express the value of different metals in a deposit as if they were all copper, based on their market prices.
• Indicated & Inferred Resources: Categories of mineral resources defined by geological confidence. Indicated resources have a higher level of confidence than inferred.
• NSR (Net Smelter Return): A calculation representing the percentage of the revenue from the sale of metal concentrates that a mining company receives after deducting smelting and refining costs.
• PA (Preliminary Assessment): An early-stage economic study of a mining project, used to assess its potential viability.
• SOCM: Société du développement de la Capitale nationale, a Quebec government subsidiary.

1. Company Overview & Strategic Goals

John Deloo, CEO and Founder of Abbott to Be Metals (AMQ), outlines the company’s strategy to become a leading junior mining company in Quebec. This strategy began with optioning the B-26 deposit from SOCM in 2023. The company aims to attract world-class talent, de-risk the project, and ultimately build a deposit attractive to major producers. Deloo emphasizes that a good asset is worthless without the right team, and highlights the recruitment of experienced professionals like Louis Gary (VP of Exploration), Lauron Estach, and David Bernier (COO). The goal is to drive exploration, development, and early-stage permitting to maximize value. He notes the favorable market conditions for copper and gold, with increasing takeover activity in the sector.

2. B-26 Deposit Resource Update & Growth

The company recently released an updated resource estimate for the B-26 deposit, demonstrating significant growth. The current resource stands at:

• Indicated: 13 million tonnes at 2.1% copper equivalent (CuEq)
• Inferred: 12.3 million tonnes at 2.2% CuEq

This represents over a 125% increase in tonnage since optioning the project. The company believes the deposit has the potential to reach 30-50 million tonnes. The resource update used conservative commodity price assumptions: $2,500/oz gold, $30/oz silver, $450/lb copper, and $135/lb zinc. However, at current spot prices, the copper equivalent grade would be closer to 2.55%. A $20/tonne NSR cut-off increases the resource to over 30 million tonnes.

3. Exploration & Drilling Strategy

Abbott to Be Metals is undertaking a 40,000-meter drill program focused on:

• Resource Expansion: Extending the known mineralization, particularly to the west.
• Model Tightening: Improving the geological model and converting inferred resources to indicated.
• Resource Improvement Drilling: Targeting areas where grade and tonnage are believed to be underestimated.
• Regional Exploration: Testing targets between B-26 and the historical Salai mine, with a 5,000-meter program and downhole geophysics.

The company has consistently achieved growth since acquiring the deposit at a low discovery cost of 2.5 cents per pound of copper equivalent. Downhole geophysics supports further expansion, and the alteration zone consistently appears in drilling to the west, indicating the continuation of the system.

4. Geological Model & Potential for Discovery

The company is actively working to refine its geological model, recognizing the potential for higher-grade zones at depth. Initial density data suggests the current density factor of 2.8 is understated for massive sulfide systems, and an adjustment is anticipated in the next resource update. The reappearance of the zinc-silver lens in deeper drilling suggests the potential for new parallel lenses. The team is drawing parallels to the nearby Cell Bay mine (60 million tonnes at 2% CuEq), which exhibited increasing grades in its later stages of production.

5. Mining & Economic Considerations

David Bernier, the COO, is focusing on mine planning and optimization. The company is evaluating different mining scenarios (e.g., high-grade focus vs. bulk tonnage) to maximize economic returns. The deposit contains significant byproduct credits (zinc and silver), which can offset operating costs. The company is not relying on excessively high commodity prices for project success. A recent internal scoping study is informing drill strategy and resource conversion efforts.

6. Market Context & Future Deliverables (2026)

Deloo notes the recent volatility in metal prices but emphasizes that the B-26 project is robust even at conservative price assumptions. The Foran Mining takeover ($4 billion) demonstrates the value of similar VMS deposits in the region. Key deliverables for 2026 include:

• Continued resource growth and conversion.
• Successful regional exploration program.
• Advancement of early-stage permitting and baseline studies.
• Exercise of the option agreement for 100% ownership of B-26.
• Potential acquisition of additional nearby projects to expand scale.

7. Capital Allocation & Risk Management

The company is prioritizing exploration and expansion over immediate resource conversion, believing that growth will drive market capitalization. However, they are balancing this with the need to develop indicated resources for future PA studies. They are carefully managing capital and monitoring market expectations. The company is also focused on building strong relationships with local communities and securing the necessary permits for development.

Notable Quotes:

• “The right asset in the wrong hands is worthless.” – John Deloo, emphasizing the importance of a strong team.
• “We’re getting into an $8 copper environment.” – John Deloo, expressing optimism about future copper prices.
• “We don’t just want to see us drilling, expanding, but there’s a whole other bucket that comes along with how a project what needs to be there for a project to be successful.” – John Deloo, highlighting the importance of permitting and social license.

8. Data & Statistics:

• Resource Growth: >125% increase in tonnage since project acquisition.
• Current Resource: 13Mt @ 2.1% CuEq (Indicated) + 12.3Mt @ 2.2% CuEq (Inferred).
• Metal Content: 775 million lbs of copper, 451,000 oz of gold, 60 million oz of silver, 376 million lbs of zinc.
• Discovery Cost: 2.5 cents per pound of copper equivalent.
• Foran Mining Takeover: $4 billion (for a 44Mt @ 2% CuEq deposit).

Conclusion:

Abbott to Be Metals is making significant progress in developing the B-26 deposit, demonstrating strong resource growth and a clear strategic vision. The company’s focus on exploration, a strong team, and a conservative approach to economic modeling position it well for future success. The 2026 timeframe will be critical, with key deliverables focused on continued resource expansion, regional exploration, and advancement towards permitting and development. The potential for discovery and the favorable market conditions for copper and gold suggest a promising outlook for the project and the company.