Abitibi Metals (CSE:AMQ) - Unlocking an 18.5Mt Copper-Gold Asset Hidden for 20 Years

Jun 4, 2025

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Interview with Jon Deluce, Founder & CEO of Abitibi Metals Corp.

Recording date: 3rd June 2025

Abitibi Metals Corp (CSE:AMQ) presents a compelling copper development opportunity through its control of Quebec's B26 deposit, a substantial resource that recently entered public markets for the first time after two decades of government development. The company's combination of asset scale, jurisdictional advantages, and patient capital positioning addresses key investor priorities in the current copper market environment.

*Asset Quality and Scale*
The B26 deposit represents one of Canada's larger undeveloped copper resources, with 18.5 million tons grading 2.18% copper equivalent. Located in Quebec's established mining region, the asset benefits from strong metallurgical characteristics including 98% copper recovery and 90% gold recovery rates. Significant gold credits in inferred resources enhance overall project economics while expanding potential acquirer interest beyond traditional copper companies.

The deposit's technical profile ranks in the top 10% of VMS opportunities globally according to management, with a 1.6-kilometer continuous strike length open in both directions. This expansion potential distinguishes B26 from typical junior-developed assets, as systematic exploration has been limited during its government development phase.

*Financial Strength and Deal Structure*
Abitibi maintains exceptional financial positioning with $18.4 million cash funding operations through Q1 2027, eliminating near-term dilution pressure. Abitibi Metals completed and confirmed in collaboration with its partner SOQUEM that all requirements to earn a 50% interest in the B26 Polymetallic deposit have been successfully fulfilled. The company has completed over $10 million of its $14.5 million work commitment to progress 80% ownership of B26 ahead of schedule.

This partnership structure provides both government backing and clear pathways to 100% ownership while aligning with Quebec's economic development objectives. The province's mining-friendly regulatory environment and established infrastructure reduce development risk compared to more remote or jurisdictionally challenging locations.

*Operational Development and Strategy*
CEO Jon Deluce brings relevant industry experience including operational exposure with Kirkland Lake Gold and Barrick, while recent executive additions from O3 Mining and Agnico Eagle strengthen the team's development credentials. The company has transitioned from contractor reliance to full-time operational capabilities, addressing previous execution challenges that impacted market performance.

Abitibi's immediate drilling program targets 400-1,000 meter depths using directional techniques to optimize cost efficiency while testing both near-term economic zones and longer-term expansion potential.

Investors Outlook
The company's current valuation at approximately half its cash position suggests significant disconnect between asset quality and market recognition. Management is pursuing multiple value catalysts including engineering studies to demonstrate economic viability, aggressive resource and expansion drilling.

Quebec's advantages as a tier-one jurisdiction become increasingly valuable as supply chain security concerns drive premiums for politically stable copper sources. With limited comparable opportunities in the Canadian market and growing institutional interest in copper-gold assets, Abitibi's combination of resource scale, financial strength, and jurisdictional security positions the company favorably for revaluation as operational catalysts unfold through 2025.

View Abitibi Metals' company profile: https://www.cruxinvestor.com/companies/abitibi-metals