Formation Metals receives drill permits for N2

Executive Summary

• Formation Metals has received final permits and mobilized to its N2 gold project in Quebec to begin a fully financed 10,000-metre drill program, aiming to expand historic resources and discover new zones.
• The company announced a non-brokered private placement of up to 1,891,892 flow-through units at 37 cents per unit, raising up to $700,000 in gross proceeds to fund fieldwork.
• The N2 project holds a global historic resource of approximately 877,000 ounces of gold across six zones, with significant potential for base metal (copper and zinc) discoveries alongside gold.

Key Details

• Drilling Program:
  • Total planned program: 10,000 metres (Phase 1) of a larger 20,000-metre goal.
  • Location: N2 gold project, Abitibi subprovince, northwestern Quebec.
  • Focus: Discovery drilling at new high-potential targets along mineralization strikes at the A, RJ, and Central zones; infilling and expansion of known zones.
  • Historical Context: 15,000 metres drilled historically across 1.65 km of strike at the A zone (84% of holes intercepted auriferous intervals); only ~900 metres drilled at the RJ zone.
• Historic Resource Data:
  • Global Historic Resource: ~877,000 ounces gold.
  • Zones A, East, RJ-East, and Central: 18.2 million tonnes grading 1.48 g/t Au (~809,000 oz).
  • Zone RJ: 243,000 tonnes grading 7.82 g/t Au (~61,000 oz).
  • High-Grade Historical Intercepts: Up to 51 g/t Au over 0.8 m and 16.5 g/t Au over 3.5 m in the RJ zone.
• Financial Position & Financing:
  • Working Capital: ~$4.9 million with zero debt.
  • Exploration Budget (2025-2026): ~$5.7 million (inclusive of Quebec provincial tax credits).
  • Private Placement: Up to 1,891,892 flow-through units at $0.37/unit.
  • Gross Proceeds: Up to $700,000.
  • Use of Proceeds: Fieldwork at exploration projects.
  • Warrant Terms: Each unit includes one transferable common share purchase warrant; exercise price of $0.60/share; exercisable for two years from closing.
  • Regulatory: Subject to CSE approval; statutory hold periods of 4 months and 1 day.
• Base Metal Potential:
  • Recent revaluation revealed significant copper (200–4,750 ppm) and zinc (203–6,700 ppm) intercepts within historic gold-bearing drill holes.
  • Geology features volcanic and sedimentary rocks with VMS-style deformation structures, suggesting potential for elevated base metal concentrations.
• Project Status:
  • Fully permitted (ATI and forestry intervention permits received).
  • Fully financed to complete the $5-million work commitment to earn 100% of the N2 project within two years (four years ahead of schedule).
  • 87 claims totaling ~4,400 hectares.

Notable Quotes

• "Being fully permitted for our planned 20,000-metre drill program is an incredible milestone for Formation Metals. With nearly [$5-million] in working capital, Formation is positioned to commence on the most aggressive drill program our company has embarked on, with 10,000 metres fully funded for 2025." — Deepak Varshney, CEO
• "Given the scale of the property, the compelling geological data and the Abitibi greenstone belt's established history as a hot bed for gold mining, we are hopeful that the program will deliver our goal of delivering a near-surface, multimillion-ounce deposit at N2." — Deepak Varshney, CEO
• "With gold at over $3,700, over four times the price in 2008 when Agnico last drilled the project, we believe that the timing is perfect for N2 and look forward to a very busy upcoming field season." — Deepak Varshney, CEO