Finalizes Team for Fully Funded 10,000 Metre Drill Program at the Advanced N2 Gold Project, Prepares to Commence Drilling
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Formation Metals Finalizes Team for Fully Funded 10,000 Metre Drill Program at the
Advanced N2 Gold Project, Prepares to Commence Drilling
Highlights:
• Formation has planned a 20,000 metre multi -phase drill program at its flagship N2 Gold
Project near Matagami, Quebec, host to a global historic resource of ~870,000 ounces
comprised of 18 Mt grading 1.4 g/t Au (~809,000 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.
• Phase 1 is a fully funded 10,000 metre program focusing on targets in the “A” zone, a
shallow, highly continuous, low-variability historic gold deposit with ~522,900 ounces of
which only ~35% of strike has been drilled (>3.1 km open), and the “RJ” zone, host to
high-grade intercepts from historical drill holes as high as 51 g/t Au over 0.8 metres2, which
was expanded by Agnico Eagle Mines in 2008 in the most recent drilling at the Property.
• Formation has selected Forage DCB Drilling of Rouyn -Noranda to complete the drilling
and anticipates commencing its drill program in early September. Its technical team has
mobilized to N2 to verify access roads and drill pad areas for accessibility prior to the
commencement of drilling.
• The Company has working capital of ~C$5.3M with zero debt, putting it in a very strong
financial position to execute its exploration programs. Inclusive of provincial tax credits
from the Quebec government, Formation’s exploration budget for 2025 -2026 is set at
~$5.7M.
• Formation is now funded to complete the $5M work commitment required to earn -in to
100% of the N2 Gold Project within two years, four years ahead of schedule.
Vancouver, British Columbia / September 2, 2025 – Formation Metals Inc. (“Formation” or
the “Company”) (CSE:FOMO) (FSE:VF1) (OTC QB:FOMTF), a North American mineral
acquisition and exploration company, is pleased to announce that it has engaged the services of
Forage DCB Drilling of Rouyn-Noranda (“DCB”) to complete the near-term drill program for its
N2 Gold Property (“N2” or the “Property”), located 25 km south of Matagami, Quebec, ahead of
its fully funded maiden 10,000 metre drill program.
The Company anticipates commencing on the program shortly, with an initial 10,000 metres
planned comprising Phase 1 as part of its planned 20,000 metre multi-phase drill program at N2,
an advanced gold project with a global historic resource of ~870,000 ounces comprised of 18 Mt
grading 1.4 g/t Au (~809,000 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.
Deepak Varshney, CEO of Formation Metals, stated, “ We are thrilled to partner with DCB and
bring a top-notch team together for the maiden drill program at the advanced N2 gold project. As
we launch the first phase of a fully funded 10,000 metre drill program, the selection of the right
drilling contractor is critical. Our pursuit of an accurate mineral resource estimate requires
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expertise and precision and DCB’s commitment to excellence is second to none as a firm that
operates at the highest standards. We look forward to mobilizing in the coming days and
commencing the advanced exploration drill program shortly after mobilization.”
Mr. Varshney continued: “With over five million in working capital, Formation is positioned to
commence on the most aggressive drill program our company has embarked on, with 10,000
metres fully funded for 2025.
Given the scale of the property, the compelling geological data, and the Abitibi Greenstone Belt's
established history as a hotbed for gold mining, we are hopeful that the program will deliver our
goal of delivering a near-surface multi-million-ounce deposit at N2.
We see the potential for a significant gold deposit at N2, and our maiden 10,000-metre drilling
program will mark the beginning of Formation's pursuit of that goal. Our maiden program will
focus on building on the successes of our predecessors. The drilling discoveries made by Agnico-
Eagle and Cypress show the potential at N2. With gold at over $3,400, over 4 times the price in
2008 when Agnico last drilled the project, we believe that the timing is perfect for N2 and look
forward to a very busy upcoming field season.”
Comprising 87 claims totaling ~4,400 ha within the Abitibi sub province of Northwestern Quebec,
Formation’s flagship N2 Gold Project is an advanced gold project with a global historic resource
of 877,000 ounces: 18.2 Mt grading 1.48 g/t Au (~8 09,000 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.
There are six primary auriferous mineralized zones in total, each open for expansion along strike
and at depth. Compilation and geop hysical work by Balmoral Resources Ltd. (now Wallbridge
Mining) from 2010 to 2018 generated numerous targets that have not yet been investigated with
diamond drilling.
The drill program is designed to focus on discovery drilling at new high-potential targets along the
mineralization strikes at the “A”, “RJ” and “Central” zones in the northern part of the Property in
order to discover new auriferous trends and unlock new zones of gold mineralization. The program
will also focus on high -priority infilling and expansion targets in these z ones to significantly
enhance the auriferous zones identified to-date (Figure 1).
Historical highlights from the top two priority zones include:
• A Zone: With a historical resource of ~522,900 gold ounces (10.7 Mt @ 1.52 g/t Au), the
“A” Zone is a shallow, highly continuous, low -variability historic gold deposit with
~15,000 metres of drilling across 55 drillholes, 84% of which intercepted gold
mineralization. The best historical intercept includes up to 1.7 g/t over 35 metres. ~1.65
km of strike has been drilled, with 3.1+ km of strike to be tested as part of the 20,000 metre
program.
• RJ Zone: With a historical resource of ~ 61,100 gold ounces (243 Kt @ 7.82 g /t Au), the
“RJ” Zone is a high-grade target that was expanded upon in the last drill program in 2008
by Agnico-Eagle when gold was approximately ~$800/oz. Historically, 20,875 metres has
been drilled over 82 drillholes, with best intercepts of 48 g/t over 0.5 m etres and 16.5 g/t
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over 3.6 metres. ~900 metres of strike has been drilled, with 4.75+ km of strike to be tested
as part of the 20,000 metre program.
Figure 1 - PDDH design for 20,000 metre Drill Program
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Figure 2 - Property overview summarizing historical work completed at each of the six mineralized zones and their respective
historical resource.
The Company also believes that N2 has significant base metal potential, where it recently
completed a revaluation process which revealed significant copper and zinc intercepts within
historic drillholes known to have significant gold grades (>1 g/t Au). Assay results range from 200
to 4,750 ppm and 203 ppm to 6,700 ppm, for copper and zinc, respectively, indicating strong
potential for elevated base metal (Cu-Zn) concentrations across the property, specifically at the A
and RJ zones. Property wide geology a t N2 features volcanic and sedimentary rocks formed in
regional anticlinal and synclinal flexures. Three principal deformation structures (Figure 1),
oriented along the known NW-SE to WNW-ESE structural trends typical of VMS deposits in the
Matagami region, function as critical geologic controls for mineralization on the property.
For the 2025 exploration season, Formation plans to concentrate its efforts on the northern part of
N2, targeting gold deposit expansion and discovery along identified zones and fault systems
associated with the main deformation features (specifically WNW-ESE trend), with IP surveys and
drilling planned to model mineralized zones that will hopefully contribute to an updated NI-43 101
compliant resource. Formation will also look to further review historic base metal assays from
older drill core and undertake additional work in 2025 to assess the property’s copper and zinc
potential.
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The Company is pleased to announce that it has closed its final tranche of its non-brokered private
placement raising gross proceeds of $15,050 through the issuance of 43,000 flow -through units
(the “FT Unit”) at $0.35 per FT Unit (the “FT Unit Offering”). Each FT Unit consists of one Share
(a “FT Share”) and one common share purchase warrant (a “FT Warrant”), with each FT Warrant
exercisable to acquire one additional Share at an exercise price of $0.60 for a period of two (2)
years from the closing date of the FT Unit Offering. Each FT Share qualifies as a “flow -through
share” within the meaning of subsection 66(15) of the Income Tax Act (Canada). The Company
paid finder’s fees of $1,053.50 cash and 3,010 finder’s warrants (the “Finder’s Warrants”) to an
arm’s length party in connection with the FT Unit Offering. The Finder’s Warrants are non -
transferable and exercisable at $0.60 per Finder’s Warrant for a period of two years from the
closing date. All securities issued are subject to a statutory hold peri od of four months following
the date of issuance in accordance with applicable Canadian securities laws. The Company intends
to use the net proceeds of the FT Unit Offering for fieldwork at the Company’s exploration
projects.
Qualified person
The technical content of this news release has been reviewed and approved by Mr. Babak Vakili
Azar, P.Geo., an independent contractor and a qualified person as defined by National Instrument
43-101. Historical reports provided by the optionor were reviewed by the qualified person. The
information provided has not been verified and is being treated as historic.
About Formation Metals Inc.
Formation Metals Inc. is a North American mineral acquisition and exploration company focused
on the development of quality properties that are drill -ready with high -upside and expansion
potential. Formation’s flagship asset is the N2 Gold Project, an advanced gold project with a global
historic resource of ~870,000 ounces (18 Mt grading 1.4 g/t Au (~8 09,000 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 zone 2,4) and six mineralized zones, each open for expansion along strike and at depth
including the “A” zone, of which only ~35% of strike has been drilled (>3.1 km open), and the
“RJ” zone, host to historical high-grade intercepts as high as 51 g/t Au over 0.8 metres.
FORMATION METALS INC.
Deepak Varshney, CEO and Director
For more information, please call 778 -899-1780, email [email protected] or visit
www.formationmetalsinc.com.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts
responsibility for the adequacy or accuracy of this release.
Notes and References:
1. Readers are cautioned that the geology of nearby properties is not necessarily indicative of the geology of
the Property.
2. The above referenced resource estimates do not have a category, are considered historical in nature, and are
based on prior data prepared by a previous property owner, and do not conform to current CIM categories.
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
While the Company considers the estimates to be reliable, a qualified person has not done sufficient work to
classify the historical estimates as current resources in accordance with current CIM categories and the
Company is not treating the historical est imates as a current resource. A 0.5 g/t Au cut -off was used in the
preparation of the historical estimates with a minimum 2.5 metre mining width.
Significant data compilation, re -drilling, re-sampling and data verification may be required by a qualified
person before the historical estimates can be classified as current resources. There can be no assurance that
any of the historical mineral resources, in whole or in part, will ever become economically viable. In addition,
mineral resources are not mineral reserves and do not have demonstrated economic viability. The Company
is not aware of any more recent estimates prepared for the N2 Property.
3. Needham, B. (1994), 1993 Diamond Drill Report, Northway Joint Venture, Northway Property; Cypress
Canada Inc.; 492 pages.
4. Guy K. (1991), Exploration Summary May 1, 1990 to May 1, 1991 Vezza Joint Venture Northway Property;
Total Energold; 227 pages.
Forward-looking statements:
This news release includes "forward -looking statements" under applicable Canadian securities
legislation, including statements respecting: the Company’ s plans for the Property and the
expected timing and scope of the 2025 drilling program at the Property; the Company’ s goal of
delivering a near-surface multi -million-ounce deposit the Property; the Company’ s anticipated
timeline with respect to the Application for Autorisation de Travaux d’exploration à Impacts (ATI)
to the Ministère des Ressources naturelle s et des Forets (MERN); the Company’ s view that the
Property has the potential for over three million ounces of gold; the 10,000-metre drilling program
marking the beginning of the Company’ s pursuit of that goal ; and statements respecting the
Offerings and the expected use of proceeds therefrom. Such forward-looking information reflects
management's current beliefs and is based on a number of estimates and/or assumptions made by
and information currently available to the Company that, while considered reasonable, are subject
to known and unknown risks, uncertainties, and other factors that may cause the actual results and
future e vents to differ materially from those expressed or implied by such forward -looking
statements. Readers are cautioned that such forward-looking statements are neither promises nor
guarantees and are subject to known and unknown risks and uncertainties inclu ding, but not
limited to, general business, economic, competitive, political and social uncertainties, uncertain
and volatile equity and capital markets, lack of available capital, actual results of exploration
activities, environmental risks, future prices of base and other metals, operating risks, accidents,
labour issues, delays in obtaining governmental approvals and permits, and other risks in the
mining industry.
The Company is presently an exploration stage company. Exploration is highly speculative in
nature, involves many risks, requires substantial expenditures, and may not result in the discovery
of mineral deposits that can be mined profitably. Furthermore, t he Company currently has no
reserves on any of its properties. As a result, there can be no assurance that such forward-looking
statements will prove to be accurate, and actual results and future events could differ materially
from those anticipated in such statements.
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indirectly, within the United States or to, or for the account or benefit of, U.S. persons, as such term is
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sold within the United States or to U.S. persons unless registered under the U. S. Securities Act and
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