Formation hires Forage DCB Drilling for N2 drilling

Executive Summary

• Formation Metals Inc. has finalized its team and engaged Forage DCB Drilling to commence a fully funded 10,000-metre maiden drill program at its N2 gold project in Quebec, with mobilization anticipated in early September.
• The company simultaneously closed the final tranche of a non-brokered private placement, raising gross proceeds of $15,050 to fund exploration activities and meet earn-in commitments ahead of schedule.
• The N2 project hosts a global historic resource of approximately 870,000 ounces of gold across six zones, with the initial 10,000-metre phase focusing on the A and RJ zones to expand known deposits and test new high-potential targets.

Key Details

• Drilling Program Scope:
  • Total planned program: 20,000 metres (multiphase).
  • Phase 1 (Maiden): 10,000 metres, fully funded.
  • Contractor: Forage DCB Drilling (Rouyn-Noranda).
  • Start Date: Early September (mobilization imminent).
  • Objectives: Discovery drilling at new targets in A, RJ, and Central zones; infilling and expansion of known zones; IP surveys to model mineralized zones.
• Project Geology & Historic Resource:
  • Location: N2 gold project, 25 km south of Matagami, Quebec (4,400 hectares, 88 claims).
  • Global Historic Resource: ~870,000 ounces Au (18 million tonnes @ 1.4 g/t Au) across four zones (A, East, RJ-East, Central) plus 243,000 tonnes @ 7.82 g/t Au (~61,000 oz) in the RJ zone.
  • A Zone: ~522,900 ounces (10.7M tonnes @ 1.52 g/t Au). Only ~35% of strike drilled (>3.1 km open). Best historical intercept: 1.7 g/t over 35m.
  • RJ Zone: ~61,100 ounces (243,000 tonnes @ 7.82 g/t Au). Last drilled by Agnico Eagle in 2008. Best historical intercepts: 48 g/t over 0.5m and 16.5 g/t over 3.6m. ~900m of strike drilled, >4.75 km open.
  • Base Metals: Recent revaluation of historic core revealed significant Cu and Zn potential (Cu: 200–4,750 ppm; Zn: 203–6,700 ppm) in zones with >1 g/t Au.
• Financing Details:
  • Transaction: Closed final tranche of non-brokered private placement.
  • Gross Proceeds: $15,050.
  • Units Issued: 43,000 flow-through units at $0.35 per unit.
  • Warrant Terms: Each unit includes one warrant exercisable at $0.60/share for two years.
  • Finders' Fees: $1,053.50 cash + 3,010 non-transferable warrants (exercisable at $0.60 for two years).
  • Use of Proceeds: Fieldwork at exploration projects.
  • Hold Period: 4 months statutory hold.
• Financial Position & Strategy:
  • Working Capital: ~$5.3 million with zero debt.
  • 2025-2026 Exploration Budget: ~$5.7 million (inclusive of Quebec provincial tax credits).
  • Earn-in Status: Financed to complete the $5 million work commitment to earn 100% of the N2 project within two years (4 years ahead of schedule).

Notable Quotes

• Deepak Varshney, CEO: "We are thrilled to partner with DCB and bring a top-notch team together for the maiden drill program at the advanced N2 gold project... Our pursuit of an accurate mineral resource estimate requires expertise and precision and DCB's commitment to excellence is second to none..."
• Deepak Varshney, CEO: "With over five 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 $3,400, 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."