Formation Metals Inc. Reports Record‑Setting Mineralisation at N2 Gold Project
Formation Metals Inc. (CSE: FOMO; FSE: VF1) announced that its first drilling campaign at the N2 gold project in Quebec’s Abitibi region has produced unprecedentedly thick and high‑grade intercepts. Two surface‑proximate holes—N2‑25‑003 and N2‑25‑008—delivered 152.9 m and 208.8 m of target mineralisation, respectively. The intervals, starting at 23.1 m and 28.6 m down‑hole, feature multiple zones exceeding 30 m in width, with the widest interval reaching 70.0 m.
These results confirm the robustness of the conceptual open‑pit model that underpins the project’s economic case. They also represent the largest continuous intercepts ever recorded on a modern Canadian gold exploration campaign, reinforcing the company’s position as a leading non‑metallic mineral exploration operator. The N2 project, located roughly 25 km south of Matagami, is the flagship asset for Formation Metals and has not seen a drill campaign since 2008, when Agnico‑Eagle completed historic work in the RJ zone.
Technical Highlights
| Hole | Start Depth | Total Intercept | Longest Interval | Width (m) | Key Mineralisation |
|---|---|---|---|---|---|
| N2‑25‑003 | 23.1 m | 152.9 m | 37.9 m | >30 m | Quartz‑carbonate veining, silicification, pyrite/arsenopyrite |
| N2‑25‑008 | 28.6 m | 208.8 m | 70.0 m | >40 m | Similar lithology, higher sulphide content |
The drilling program targeted the “A” and “RJ” zones, historically known for high‑grade gold (up to 51 g/t over 0.8 m) during Agnico‑Eagle’s earlier work. The new data not only corroborates those earlier findings but extends them to much longer, continuous intervals, enhancing the project’s scalability.
Market Context
The announcement comes as Formation Metals trades at a modest valuation—CAD 0.30 per share with a market capitalisation of approximately CAD 27.3 million. The company’s price‑earnings ratio remains negative at –2.79, reflecting its current status as an exploration‑stage asset with no revenue yet. Nevertheless, the recent drill results have attracted significant attention from the gold‑sector community and are expected to drive a substantial uptick in share price as investors reassess the project’s upside potential.
Forward‑Looking Perspective
With the new intercepts, the open‑pit model gains greater confidence in both depth and grade, allowing for more accurate resource estimation and mine planning. The company is now positioned to advance to a Preliminary Economic Assessment (PEA) and, subsequently, a Feasibility Study, contingent on further drilling and metallurgical testing. The N2 project’s location within the prolific Abitibi greenstone belt—one of Canada’s most prolific gold‑mining districts—provides an additional layer of geographic advantage.
If the forthcoming exploration phases continue to validate the initial findings, Formation Metals could transition from an exploration‑only entity to a producer, unlocking significant value for shareholders. The current market price, combined with the scale of the discovered mineralisation, suggests that the stock is trading well below intrinsic value, offering a compelling entry point for disciplined investors.
