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Formation Metals Secures Option on High-Potential N2 Property in Quebec

Jan 16, 2025


Formation Metals has executed an option agreement to acquire a 100% interest in the N2 Property, spanning 4,400 hectares along the prolific Casa Berardi trend, 25 km south of Matagami, Quebec. The acquisition strengthens Formation’s position in one of Canada’s premier mining jurisdictions.

“We are thrilled to add the N2 Property to our portfolio,” said Deepak Varshney, CEO of Formation Metals. “This proven gold system with high exploration upside is poised to deliver immediate and long-term value. Our diverse work program will focus on validating the historic resource while advancing underexplored zones to unlock the property’s full potential.”

Property Highlights

The N2 Property includes 87 claims underlain by geology associated with multiple multi-million-ounce gold deposits along the Casa Berardi mine trend. Notable neighboring assets include:

• The former Vezza gold mine, 1.5 km west.

• Maple Gold Mines’ Douay gold project, 30 km east.

• Hecla Mining’s Casa Berardi gold mine, 120 km east.

The property contains six known zones of gold mineralization. Historical estimates, non-compliant with NI 43-101 standards, outline:

• 18.2 Mt grading 1.48 g/t Au (~810,000 oz) across four zones.

• 243,000 t grading 7.82 g/t Au (~67,000 oz) in the RJ zone.

Exploration work between 2010 and 2018 by Balmoral Resources (now Wallbridge Mining) identified numerous untested targets using modern geophysical techniques, including VTEM, IP, and chargeability surveys.

Advancing Exploration

Formation Metals plans a comprehensive exploration program to confirm the historical estimates and assess underexplored zones. Work will include:

• Expanding known mineralization at depth and along strike.

• Following up on high-priority geophysical anomalies.

• Conducting additional metallurgical testing to validate recovery potential.

A History of Gold Discovery

The N2 Property has seen intermittent exploration since the 1980s, with most drilling concentrated on the northern portion of the claims. The A Zone, the largest identified zone, has been traced over 1 km and remains open at depth and along strike.

In 2007, drilling uncovered a new zone of mineralization in the hanging wall of the RJ Zone, showing similarities to the nearby Vezza deposit. Geophysical surveys further defined anomalies that remain untested.

Strategic Positioning

Situated near infrastructure with year-round access, the N2 Property is positioned to benefit from reduced exploration costs and streamlined development. Formation Metals aims to leverage this advantage to establish itself as a key player in the Abitibi region, while driving value creation for shareholders through exploration success.

This transaction is subject to approval by the Canadian Securities Exchange.



Tags: Quebec / Deals & Financial / Gold / All Articles