Discovery Silver-backed Abitibi Metals drills 3.6% copper at B26 in Quebec

Abitibi Metals (CSE: AMQ; US-OTC: AMQFF) has returned one of its strongest copper-gold intercepts yet at the B26 polymetallic project in western Quebec, as drilling continues to define higher-grade zones at depth and along plunge.

Highlight hole 1274-25-378W1 cut 46.7 metres grading 1.33% copper per tonne, 0.13 gram gold and 3.39 grams silver from 946 metres depth, including 14 metres at 3.63% copper, 0.37 gram gold and 7.67 grams silver, the company said on Wednesday. The intercept sits within the main B26 horizon, about 90 km west of Matagami, supporting resource growth and reinforcing confidence in grade continuity across the deposit.

“It confirms a 50-metre eastern extension of the high-grade western down-plunge, one of the most significant discoveries from last year’s program,” CEO Jonathon Deluce said in a release. “This hole also contributes to the delineation of the indicated resource drill grid and delivered both greater width and higher grade than the current block model in this area.”

Shares in Abitibi Metals gained 3% to 68¢ apiece on Wednesday morning in Toronto, valuing the company at about $165 million. They’ve traded in a 52-week range of 21¢ to 98¢.

Discovery Silver

The latest results add to a string of high-grade hits from the ongoing expansion and definition program intended to deliver improved economics as drilling targets thicker and higher-grade zones. The B26 project is just 7 km southeast of the formerly producing Selbaie mine, providing access to key infrastructure for development. Last month, Discovery Silver (TSX: DSV; US-OTC: DSVSF) bought a 9.9% stake in Abitibi Metals.

 

Haywood Securities called the purchase “a positive endorsement from an established industry player, providing Abitibi with valuable experience and a stronger balance sheet for exploration and acquisitions.”

Discovery has a market capitalization of $6.6 billion and is guiding for 2026 gold production of 260,000 to 300,000 oz. from its Porcupine operations in Ontario. It produced 60,269 oz. in the first quarter.

The investment was part of a $31-million capital raising where Abitibi kept Discovery’s ownership below 10% to maintain competitive tension with other potential corporate investors or buyers, Hawyood said in a note at the time. The other participants in the private placement included the Deluce family, advisors and Beattie Capital.

Following the financing, Abitibi has about $43 million cash on hand including about $25 million in hard cash, Haywood said. It’s enough to see the project through a preliminary economic assessment and a prefeasibility study, it said.

“This financing will enable drilling at B26 to continue beyond the 40,000 metres planned in 2026, make acquisitions close to B26 which will provide a significant district footprint and the opportunity to add tonnes beyond the existing resource, surveys and drilling of regional targets, Haywood said.

Second hole

The other hole from the release, 1274-25-378, returned 46.9 metres grading 0.43% copper, 0.1 gram gold and 1.69 grams silver from 877.35 metres, including 8.3 metres at 1.62% copper, 0.23 gram gold and 3.39 grams silver.

The company is still working to convert these deeper intercepts into updated resource categories, and the continuity of high-grade zones across wider step-outs remains a key focus for upcoming drilling.

B26 hosts 11.3 million indicated tonnes grading 1.23% copper, 1.27% zinc, 0.46 gram gold and 31.9 grams silver, for 307.9 million lb. of contained copper, 316.9 million lb. zinc, 168,200 gold and 11.6 million oz. silver, according to a resource from 2024.

Inferred tonnage totals 7.2 million tonnes at 1.56% copper, 0.17% zinc, 0.87 gram gold and 7.4 grams silver, for 246 million lb. of contained copper, 27.3 million lb. zinc, 200,800 oz. gold and 1.7 million oz. silver.

Abitibi holds 80% of the project, a joint venture with the Quebec’s government’s SOQUEM, a mineral exploration company and subsidiary of Investissement Quebec.