VANCOUVER, BC — January 15, 2026 — Leads & Copy — Formation Metals Inc. (CSE:FOMO)(FSE:VF1)(OTCQB:FOMTF) has provided an update on its fully funded 30,000-meter drill campaign at its flagship N2 Gold Property in Quebec, where the company is targeting a multi-million ounce conceptual open-pit resource.
The company has completed drilling the first 13 holes of its Phase 1 drill program and has decided to expand Phase 1 to 14,000 meters based on findings to date.
The program is focused on assessing the first 300 meters vertical, with 3,879 meters of drilling completed on near-surface targets at the "A" and "RJ" zones. The company’s exploration budget for 2025-2026 is set at approximately C$8.1 million, inclusive of provincial tax credits from the Quebec government. The company has working capital of approximately C$12.3 million with zero debt.
Significant intervals identified include:
- N2-25-003: 152.9 meters of target mineralization, starting at 23.1 meters downhole.
- N2-25-006: 102.6 meters of target mineralization, starting at 15.3 meters downhole.
- N2-25-008: 208.8 meters of target mineralization, starting at 28.6 meters downhole.
- N2-25-009: 135.7 meters of target mineralization, starting at 23.3 meters downhole.
- N2-25-011: 166.8 meters of target mineralization, starting at 60.0 meters downhole.
- N2-25-013: 121.7 meters of target mineralization, starting at 51.6 meters downhole.
Mineralization was observed starting within the first 10 meters in four drillholes and within the first 25 meters in six drillholes. Long mineralized intervals were observed in each of the other drillholes, with a further three drillholes returning over 100 cumulative meters of target mineralization, and four greater than 80 meters.
The drilling in the "A" zone was particularly successful, with a significant correlation identified in terms of lithological intervals and sequences, alteration products, and mineralization forms and variety between the geological features along these holes and those of surrounding historic drill holes.
The company is finalizing its data compilation and interpretation and will shortly release assays. The expanded drill program will focus on testing further along strike and within large gaps of the historical block model within the "A" zone.
The company also announced it has issued 1,000,000 common shares at a deemed price of $0.33 per share to Wallbridge Mining Company Limited, pursuant to its property option agreement entered with Wallbridge Mining on January 15, 2025, respecting N2.
The N2 Gold Project comprises 87 claims totaling approximately 4,400 hectares. It hosts a global historic resource of approximately 871,000 ounces comprised of 18 Mt grading 1.4 g/t Au (~810,000 oz Au) across four zones and 243 Kt grading 7.82 g/t Au (~61,000 oz Au) across the RJ zone.
Deepak Varshney, CEO of Formation Metals, said the consistency of the deposit observed within this drill campaign has been spectacular.
Varshney continued: The thick continuous zones of mineralization observed significantly expand the potential for a large-scale, low-strip multi-million ounces open pit development.
The company 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. The company 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.
The technical content of this news release has been reviewed and approved by Mr. Babak V. Azar, P.Geo.
Deepak Varshney, CEO and Director can be reached at 778-899-1780 or dvarshney@formationmetalsinc.com.
Source: Formation Metals Inc.
