Once the groundwork is established, Formation Metals aims to advance the known gold zones through drill programmes. Credit: MIKE MANIATIS/Shutterstock.

Formation Metals, a North American mineral acquisition and exploration company, has announced the execution of an option agreement to purchase a 100% interest in the N2 property in Quebec’s Casa Berardi Gold Trend from Wallbridge Mining Company.

Under the option agreement, Formation Metals may acquire full ownership of the N2 property by paying $550,000 (C$792,637) in cash, issuing four million common shares and completing $5m of work expenditures.

Formation Metals CEO Deepak Varshney said: “We are thrilled to announce the acquisition of the N2 property in the jurisdiction of Quebec. With a proven gold system and numerous areas with a high exploration upside, the N2 Property is in the perfect position to support immediate and sustained increases in value.

“Formation intends to implement a diverse work programme that will confirm the historic gold resource and intercepts, whilst simultaneously advancing the numerous, less well understood gold zones on the property to ensure our shareholders see the growth benefits of this property in both the short and long-term.”

Located 25km south of Matagami, Quebec, the N2 property is accessible year-round via provincial highways and logging roads.

The property consists of 87 claims covering approximately 4,400ha in the Abitibi sub-province of north-western Quebec.

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It hosts two historical non-compliant resources of 18.2 million tonnes grading 1.48 grams per tonnes (g/t), or approximately 810,000oz of gold (Au), across four zones and 243,000 tonnes grading 7.82g/t Au (approximately 65,000oz Au) in the RJ zone.

Formation Metals plans to advance the property by conducting surveys to assess exploration potential and further define the gold resources identified in historic work.

An orientation IP (induced polarisation) survey by Balmoral Resources indicated reliable responses from the gold horizons on the N2 property.

Building on this success, Formation Metals intends to implement property-wide or partial infill grids to identify chargeability and resistivity anomalies in the bedrock. These anomalies will be followed up with diamond drilling to explore further.

Once the groundwork is established, Formation Metals aims to advance the known gold zones through drill programmes designed to test extensions along strike and depth of the historical resources at the property.

The transaction is subject to approval from the Canadian Securities Exchange.