Formation Metals (CSE:FOMO) has announced the expansion of its maiden drill program at the N2 Gold Property in Quebec. The company has increased the scope of its Phase 1 drilling campaign to a fully funded 7,500 metres, marking a significant step forward in the exploration of this advanced-stage gold project located approximately 25 kilometers south of Matagami, Quebec.

Deepak Varshney, Chief Executive Officer of Formation, commented in a press release: “We are very excited to commence our maiden drill program at N2. Filing the Annual Exploration Work Notice marked the final regulatory step as we prepare to commence field activities upon receipt of the ATI. Based on our on-going review and planning for Phase 1, we feel comfortable in expanding our maiden drill program to a fully funded 7,500 metres. We anticipate receiving the ATI permit shortly, allowing us to proceed with our exploration activities as scheduled. The summer is going to be a very exciting time as we embark on our fully funded maiden 7,500 metre drill program at N2. 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 7,500-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 almost $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 quarter.”

Drill Program Expansion and Regulatory Filings

The company confirmed that the expanded program is scheduled to begin in July 2025. As part of regulatory compliance for mineral exploration in Quebec, Formation Metals officially filed its Planification Annuelle Des Travaux d’Exploration—the Annual Exploration Work Notice—on June 17, 2025. The filing, which must be submitted at least 30 days prior to fieldwork, was made with the relevant municipal authorities and outlines the company’s exploration plans for the upcoming season. It also reflects compliance with Quebec’s regulatory requirements and the company’s stated commitment to responsible exploration and community engagement.

The expanded 7,500-metre Phase 1 drill program represents an early stage of a larger, multi-phase initiative that will total approximately 20,000 metres of drilling at N2. The program aims to conduct both discovery and infill drilling focused on key zones within the property.

Geological Targets and Historic Resource Estimates

The N2 Gold Property is classified as an advanced-stage project and consists of 87 mineral claims covering roughly 4,400 hectares within the Abitibi subprovince in northwestern Quebec.

The expanded drill program will primarily target the A, RJ, and Central zones, with efforts concentrated in the northern sector of the property. Objectives include the discovery of new auriferous (gold-bearing) trends along mineralized strike zones, as well as the infill and extension of existing known gold zones to improve geological understanding and potentially update resource estimates.

Formation Metals has retained Strategy Exploration Advisors (Stratexplo), an independent exploration consultancy based in Rouyn-Noranda, Quebec, to manage field operations for the drill program. Stratexplo will handle surface exploration activities such as geological mapping, sample collection and dispatch, logistical coordination, and interpretation in accordance with National Instrument 43-101 guidelines.

Stratexplo also continues to act as the company’s permitting agent. The firm facilitated the submission of Formation’s application for Autorisation de Travaux d’exploration à Impacts (ATI) to the Ministère des Ressources naturelles et des Forêts (MERN), a permit required for exploration activities expected to impact the environment. The ATI application followed consultations with relevant stakeholders, and the company anticipates permit approval in the coming weeks.

Base Metal Potential and Geological Context

Beyond gold, the N2 Gold Property also exhibits base metal potential. A recent revaluation of historic drill core revealed previously overlooked copper and zinc mineralization. Historic assay results range from 200 to 4,750 parts per million (ppm) for copper and 203 to 6,700 ppm for zinc, particularly in the A and RJ zones. These findings suggest the potential for elevated concentrations of copper and zinc across parts of the property.

The geological setting of N2 includes volcanic and sedimentary rock formations situated in regional anticlinal and synclinal structures. Three principal deformation zones run through the property in a northwest-southeast to west-northwest–east-southeast orientation, structural features commonly associated with volcanogenic massive sulphide (VMS) deposits in the Matagami region. The 2025 exploration campaign will utilize induced polarization (IP) surveys and follow-up drilling to further delineate these features and assess both gold and base metal mineralization.

The company may pay eligible finders a cash fee of up to 7% of the gross proceeds raised from subscribers they introduce. In addition, up to 7% of the units sold may result in the issuance of finder warrants, exercisable under the same terms as the investor warrants.

Use of Proceeds and Next Steps

The net proceeds from the LIFE Offering and CFT 4MH Unit Offering are earmarked for fieldwork and exploration expenses associated with the N2 project and other exploration assets under Formation’s portfolio. The company has stated that exploration in 2025 will remain focused on resource expansion and validation activities at N2, with a particular interest in updating historic resource estimates into National Instrument 43-101 compliant figures.

Drilling is expected to begin shortly after the ATI permit is granted. Field operations, including geological interpretation and exploration modeling, will be conducted by Stratexplo in accordance with regulatory standards.

Highlights from the recent results are as follows: 

• Formation has planned a 20,000 metre multi-phase drill program at its flagship N2 Gold Project in 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 has been expanded to a fully funded 7,500 metre program targeting expansion 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 anticipates commencing its drill program in July. The Company filed its 30-day notice with the responsible municipal authorities for its upcoming 2025 exploration activities on June 17, 2025.

• Formation will also focus on N2’s significant base metal potential, where it recently completed a revaluation process which revealed significant copper and zinc intercepts within historic drillholes with significant gold grades (>1 g/t Au).

• The Company has working capital of ~C$2.6M, putting it in a very strong financial position to execute its exploration programs.