Formation Metals adds second drill rig to N2

Executive Summary

• Formation Metals mobilized a second drill rig to accelerate its fully‑financed Phase 1 (14,000 m) drilling program at the N2 gold project.
• The company now has $12.1 M of working capital and zero debt; 2025/26 exploration budget is ~$8.1 M (including Quebec tax credits).
• To date 16 holes (4,743 m) have been completed, with notable shallow, wide mineralization intercepts (e.g., 208.8 m from 28.6 m depth at N2‑25‑008).

Key Details

• Second rig deployment: Enables systematic testing of priority targets across the A and RJ zones over >8 km of strike, speeding delivery of a maiden resource estimate expected in Q3 after ~70,000 m total drilling.
• Working capital & financing: $12.1 M cash on hand; exploration budget for 2025/26 set at ~$8.1 M (incl. provincial tax credits). No debt.
• Historic resource context: Global historic resource ≈871,000 oz Au (18 Mt @ 1.4 g/t) plus a high‑grade component of ~61,000 oz Au (243 kt @ 7.82 g/t) in the RJ zone.
• Phase 1 objectives:
• Infill shallow gaps to boost near‑surface confidence.
• Test downdip extensions and strike step‑outs beyond historic limits.
• Collect core for metallurgical testing.
• Drilling results to date (16 holes, 4,743 m):
• N2‑25‑008 – 208.8 m of target mineralization starting at 28.6 m depth; multiple >40 m intervals, up to 70 m continuous.
• N2‑25‑011 – 166.8 m of target mineralization beginning at 60 m depth; several >20 m intervals, up to 70.6 m continuous.
• 9/13 holes intersected target mineralization within the first 25 m; 10 holes each had ≥80 m cumulative intercepts.
• Historical analogues (high‑grade examples):
• A zone – 1.48 g/t Au over 13.7 m, 2.02 g/t Au over 15 m.
• RJ zone – 48.4 g/t Au over 0.5 m, 24.5 g/t Au over 0.9 m, 16.5 g/t Au over 3.6 m, etc.
• Project scale: 87 claims covering ~4,400 ha in the Abitibi greenstone belt; six primary zones all open at depth and along strike.
• Exploration upside: >3.1 km of untested strike in A zone; >4.75 km in RJ zone; historic drilling limited to shallow depths (~350 m).
• Base‑metal potential: Recent revaluation shows Cu 200–4,750 ppm and Zn 203–6,700 ppm in historic gold‑bearing holes, indicating possible copper‑zinc by‑product.
• Infrastructure: Located ~25 km south of Matagami, QC; year‑round road access; proximity to processing facilities (Casa Berardi mill, other Abitibi mills).

Notable Quotes

“Momentum continues to build at N2… accelerating phase 1 with a second rig was an easy decision… we look forward to sharing updates as we progress with our winter campaign.” – Deepak Varshney, CEO, Formation Metals Inc.