Announcement • Jun 20
Formation Metals Inc Extends A-Zone 200 Metres West of Historic Resource At N2 Gold Project
Formation Metals Inc. announced results from step-out drillholes N2-26-021 and N2-26-022 at its flagship N2 Gold Property have extended the strike of the A-Zone 200 metres to the west. Formation’s first step-out drilling beyond the established western boundary of the A-Zone returned the following key intercepts: N2-26-021: 1.05 g/t Au over 31 metres beginning at 243 metres downhole (203.8 metres vertical), including 1.89 g/t Au over 12 metres. The main interval correlates directly with the northern auriferous horizon in N2-25-004 (0.83 g/t Au over 40.4 metres), N2-25-009 (0.96 g/t Au over 21.7 metres) and N2-25-006 (0.67 g/t Au over 22.2 metres) confirming lateral continuity of the A-Zone, 200 metres to the west. N2-26-022: 1.34 g/t Au over 12.5 metres beginning at 177.2 metres downhole (131.7 metres vertical), including 2.29 g/t Au over 6.9 metres. The Company is undertaking a fully funded 75,000 metre drill program at its flagship N2 Gold Project in Quebec, host to a global historic resource of approximately 871,000 ounces comprised of 18 Mt grading 1.4 g/t Au (approximately 810,000 oz Au) across four zones (A, East, RJ-East, and Central) and 243 Kt grading 7.82 g/t Au (approximately 61,000 oz Au) across the RJ zone. Across the A-Zone, 84% of historical drillholes intercepted gold, reflecting a highly continuous, low-variability system that these step-outs are now extending 200 metres west. These holes sit in a near-surface corridor between the A-Zone and the high-grade RJ Zone (historical intercepts up to 51 g/t Au) that has seen almost no drilling. Formation plans to continue to step out aggressively to the west and test above and below N2-26-021 to N2-26-022 as part of its follow-up drilling with a focus of confirming continuity at shallower depths where the Company identified 0.91 g/t Au over 42.3 metres beginning at 9.9 metres vertical and 1.75 g/t Au over 30.4 metres beginning at 45.3 metres vertical. The Company has working capital of approximately CAD 30.5 million with zero debt. The intercepts in N2-26-021 and N2-26-022, located 200 metres beyond the established western boundary of the A-Zone, were drilled as part of the on-going fully funded 75,000 metre drill program. They exhibit the same mineralization style, alteration products, and structural controls as the core A-Zone domains. The main auriferous interval in N2-26-021 correlates with the same stratigraphic horizon that returned 0.83 g/t Au over 40.4 metres in N2-25-004. Continuous drilling between these two data points has the potential to materially add ounces to Formation’s upcoming maiden Mineral Resource Estimate, targeted for Third Quarter 2026. The results from these step-out drillholes, together with the geological interpretation, demonstrate that the main auriferous intervals project to vertical depths consistent with open-pit development parameters, directly supporting the expansion of the A-Zone to the west. Formation plans to step out more aggressively in this direction, targeting the largely untested corridor above the high-grade RJ Zone — a near-surface area between the A-Zone and the historic RJ underground resource that has seen minimal historical drilling. The Company’s drilling campaign has exceeded expectations, confirming geological continuity and delivering robust and continuous gold intercepts including: N2-25-004: 0.83 g/t Au over 40.4 metres beginning at 180.0 metres downhole, 147.4 metres vertical. Highlight interval includes 1.36 g/t Au over 9.0 metres with total metal index of 38.48. 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 with total metal index of 38.36. N2-25-006: 1.8 g/t Au over 21.9 metres beginning at 154.4 metres downhole, 133.7 metres vertical. Highlight interval includes 3.4 g/t Au over 4.8 metres with total metal index of 79.56. N2-25-007: 1.3 g/t Au over 22.2 metres beginning at 139.9 metres downhole, 121.2 metres vertical. Highlight interval includes 2.36 g/t Au over 10.5 metres with total metal index of 51.07. N2-25-008: 0.95 g/t Au over 61.1 metres beginning at 109 metres downhole, 94.4 metres vertical. Highlight interval includes 1.68 g/t Au over 26.5 metres with total metal index of 67.97. N2-25-009: 1.37 g/t Au over 24.0 metres beginning at 168.9 metres downhole, 146.3 metres vertical. Highlight interval includes 2.05 g/t Au over 13.3 metres with total metal index of 81.89. N2-25-010: 1.43 g/t Au over 19.4 metres beginning at 117.5 metres downhole, 101.8 metres vertical. Highlight interval includes 2.23 g/t Au over 7.0 metres with total metal index of 38.49. 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 with total metal index of 62.43. N2-26-021: 1.05 g/t Au over 31.0 metres beginning at 243.0 metres downhole, 203.8 metres vertical. Highlight interval includes 1.89 g/t Au over 12.0 metres with total metal index of 32.66. Based on these results, the Company believes the A-Zone hosts a robust mineralized veining system that fluctuates between 20 and 61 metres, is at least 100 metres wide, with a potential of up to 8 km in strike. The A-Zone remains open in multiple directions, specifically along strike (E-W) and down-plunge/depth (S). Situated within the “A” Zone, N2-26-021 and N2-26-022 represent Formation’s most aggressive western step-out to date. Both holes were drilled to test whether the system extends past the western boundary of the A-Zone's historical resource — and both returned gold. Based on interpreting the angle of intersection, the estimated true width of the mineralized lens generally corresponds to 87% of the intercepted core length. Note 2: Reported intervals are composited using a minimum cut-off grade of 0.2 g/t Au for higher-grade intervals.
