Formation Metals Inc. announced results from drillholes N2-25-007, N2-25-008 and N2-25-010, completed as part of its on-going fully funded 30,000 metre drill program at its N2 Gold Property ("N2" or the "Property"). Located 25 km south of Mattagami, Quebec, N2 is host to a global historic resource of ~871,000 ounces comprised of 18 Mt grading 1.4 g/t Au (~810,000 oz Au) across four zones (A, East, RJ-East, and Central)2,3 and 243 Kt grading 7.82 g/t Au (~61,000 oz Au) across the RJ zone2,4. The Company has working capital of ~CAD 12.1 million with zero debt. The Company's ongoing drilling campaign has surpassed expectations, confirming continuity of mineralization while delivering robust high-grade gold intercepts in holes N2-25-007, N2-25-008, and N2-25-010.
These drillholes were designed to target mineralization in different horizons to the south and beneath N2-25-005 and N2-25-012, where the Company identified the following wide, continuous near-surface intercepts: N2-25-005: 0.91 g/t Au over 42.3 metres beginning at 14.0 metres downhole, 9.9 metres vertical. Highlight intervals include 2.04 g/t Au over 8.1 metres and 1.31 g/t Au over 11.4 metres. N2-25-012: 1.75 g/t Au over 30.4 metres beginning at 64.1 metres downhole, 45.3 metres vertical.
Highlight intervals include 3.51 g/t Au over 10.5 metres and 19.2 g/t Au over 0.51 metres. N2-25-007, N2-25-008, and N2-25-010 were spaced nearly fifty metres apart, and the results confirm the existence of a high-grade, bulk-tonnage system at depth, further validating the findings of the historical drilling, significantly enhancing confidence in the geological model and reducing technical risk for future development. Significantly, aside from demonstrating the continuity of the main target veins, these drillholes also identified secondary and tertiary vein sets that sit above and below the primary target where N2-25-007 intercepted 0.45 g/t Au over 12.6 metres and 0.67 g/t Au over 18.5 metres above, and N2-25-008 and N2-25-010 respectively intercepted 0.55 g/t Au over 8.4 metres and 0.78 g/t Au over 11.5 metres below.
The continuity of these sets, if demonstrated across the full 8 kilometres of strike, would have significant positive impacts on a future open pit, with a potential mining envelope being widened significantly up to approximately 80 metres in downhole mineralized accumulative thickness and about 85 metres width. To date, 33 drillholes have been completed for a total of 10,836 metres. Assays for 20 drillholes are currently pending, providing a steady stream of upcoming catalysts as the Phase 1 program continues.
Formation's Phase 1 drilling program, comprised of 14,000 metres, is designed to: · Resource confidence and conversion: Infill shallow gaps to improve confidence in near-surface mineralization. Resource growth: Test down-dip extensions and step-outs along strike to both east and west beyond the historic resource limits. Metallurgy: Gather representative drill core for confirming metallurgical response and validating recoveries.
Formation is accelerating its exploration strategy with a ~70,000-metre drill program focused on defining a potential open-pit, shallow mineral resource. Two rigs are currently active, systematically targeting the 'A' and 'RJ' Zones across an 8-kilometre corridor, with a maiden Mineral Resource Estimate (MRE) slated for Third Quarter following the completion of Phase 1. Over the coming months, the Company plans to outline a focused and exciting exploration program at N2, reflecting the broader depth of opportunities across the Project and supporting sustained, disciplined exploration activity beyond the current drilling phase. Comprising 87 claims totaling ~4,400 ha within the Abitibi sub province of Northwestern Quebec, Formation's N2 Gold Project is an advanced gold project with a global historic resource of ~871,000 ounces comprised of 18 Mt grading 1.4 g/t Au (~810,000 oz Au)2,3 and 243 Kt grading 7.82 g/t Au (~61,000 oz Au)2. There are six primary auriferous mineralized zones in total, each open for expansion along strike and at depth.
Compilation and geophysical work by Balmoral Resources Ltd. (now Wallbridge Mining) from 2010 to 2018 generated numerous targets that are being investigated for the first time by Formation with diamond drilling. Historical highlights from the top two priority zones include: · A Zone: a shallow, highly continuous, low-variability historic gold deposit with ~522,900 ounces identified at a grade of 1.52 g/t Au. ~15,000 metres have been drilled historically across 1.65 km of strike, with 84% of historical drillholes intercepted auriferous intervals including up to 1.7 g/t over 35 metres.
RJ Zone: a high-grade historic gold deposit with ~61,100 ounces identified at a grade of 7.82 g/t Au, with high-grade intercepts from historical drill holes as high as 51 g/t Au over 0.8 metres and 16.5 g/t Au over 3.5 metres2. This zone was the target of the most recently drilling at the Property by Agnico- Eagle Mines in 2008, when the price of gold was ~USD 800/oz. Only ~900 metres of strike has been drilled, with 4.75+ km of strike remaining to be tested.
The Company's internal view is that the N2 Project has the potential to host a potential open pit resource. This optimism is driven by several key factors: · Significant Undrilled Strike Length: The "A" Zone alone has >3.1 km of strike open (only ~35% drilled historically), while the RJ Zone has >4.75 km remaining untested -- offering substantial room for lateral expansion of known mineralization. Open at Depth and Along Strike: All zones remain open, with historical drilling limited to shallow depths (~350 m), leaving considerable vertical upside in a proven gold camp.
Wide, Continuous Near-Surface Intercepts: Recent drilling has confirmed thick zones (100-200+ m) of target mineralization starting near surface, ideal for bulk-tonnage open-pit scenarios with low strip ratios and high tonnage potential. Regional Analogy and Pedigree: Located in the Casa Berardi trend, which hosts multiple multi- million-ounce deposits (e.g., Casa Berardi >2 Moz produced and 14.3 Mt @ 2.75 g/t Au P&P in reserve, Douay >3 Moz in resources (10 Mt @ 1.59 g/t Au indicated, and 76.7 Mt @ 1.02 g/t Au inferred), N2 shares similar geology and structural controls. Nearby Vezza produced from higher-grade underground mining, but N2's shallower, wider zones suggest superior open-pit economics.
Untested Targets: Compilation work identified numerous geophysical anomalies (IP, EM, VTEM) that remain undrilled, providing discovery potential beyond known zones.
