Drilling Extends Alaska Gold System, Uncovering Bigger and Richer Zones Than Expected

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Tectonic Metals Inc. (TSXV: TECT; OTCQB: TETOF; FSE: T15B) announced a significant gold discovery at the Alpha Bowl target within its Flat Gold Project in Alaska. The latest drill results from the 2024 exploration program extend the confirmed mineralized strike length of the Chicken Mountain gold system from 2 kilometers to 3 kilometers, with all mineralization remaining open along strike and at depth.

Drill hole CMR24-026 returned 65.5 meters at 1.2 grams per tonne (g/t) gold (Au), including 6.1 meters at 6.0 g/t Au and 1.5 meters at 21.7 g/t Au. Notably, all 86 holes drilled at Chicken Mountain to date have intersected gold mineralization. Tectonic Metals has identified six intrusion-related gold targets at the project, with Chicken Mountain being the most advanced. The company describes Flat as having the potential to become Alaska's next tier-one gold asset, benefiting from its strategic location in a well-established mining jurisdiction 40 kilometers northeast of the 39-million-ounce Donlin Gold Project.

According to Tectonic's CEO, Tony Reda in the news release, "Alpha Bowl is an exciting new drilled gold discovery and a game-changer for our Flat Gold Project. Tectonic's maiden drilling confirms gold mineralization in every hole, with assays reaching up to 67 g/t Au, underscoring the exceptional tenor of this system."

Tectonic's Vice President of Exploration, Peter Kleespies, emphasized the scale of the mineralization, stating, "The 2024 exploration drill program results continue to demonstrate the scale of the Flat Gold system and potential for uncovering a significant gold resource at the property."

The latest drilling confirms the bedrock source of approximately 650,000 ounces of historical placer gold production at Flat Creek, one of the most prolific placer gold-producing creeks in Alaska. The findings suggest that further exploration could delineate a more extensive gold system.

Gold's Strength Amid Trade Tensions and Monetary Shifts

On February 24, US Global Investors discussed the possibility of the U.S. revaluing its gold reserves. The report stated that gold prices had surged to an all-time high of US$2,940 per ounce amid trade tensions between the U.S. and Europe. It also highlighted that central banks had been aggressively increasing gold holdings, with total purchases exceeding 1,000 tons for the third consecutive year in 2024. US Global Investors cited estimates that mine production had reached a record 3,661 tons but warned that supply growth could slow in the coming years due to fewer new discoveries and declining exploration budgets.

A February 25 article from 321Gold analyzed gold's performance in the context of global economic instability, stating that "stagflationary tariff taxes" could act as a catalyst for further gold price appreciation. The report suggested that tariffs, coupled with stock market volatility, were prompting investors to seek refuge in gold. It also noted that historical cycles indicated a potential pause in gold's rally before another upward movement, aligning with broader concerns about the long-term stability of financial markets.

Gold prices continued to climb in response to ongoing economic uncertainty, geopolitical tensions, and evolving monetary policies. According to a February 26 report from Kitco, gold futures remained resilient despite a recent sharp decline, stabilizing at US$2,933.80 per ounce. The report attributed much of gold's recent rally to concerns over impending U.S. trade tariffs. Expectations that President Trump would impose tariffs on Canadian and Mexican goods beginning in March fueled investor demand for safe-haven assets. Kitco noted that investors were increasingly shifting portfolios toward gold due to fears of rising inflation and potential market disruptions caused by trade policies.

On February 26, The Flying Frisby highlighted gold's sustained upward trend, emphasizing that each pullback in price had been met with renewed buying. The report suggested that central banks, particularly in Asia, had been accumulating gold as part of a broader strategy to de-dollarize and diversify reserves. It also pointed to expectations that a weaker U.S. dollar would further support gold prices. Additionally, the report noted that while gold miners had yet to fully benefit from the metal's rising price, a turnaround in the sector could significantly boost junior mining stocks.

In a report dated March 3, International Man looked at how significant gold shipments had been moving from London to the U.S. since late 2024. The report suggested that the accumulation of gold reserves could be linked to broader monetary policy shifts, including potential revaluation efforts. It described these developments as part of a strategic repositioning by the U.S. government in response to global economic uncertainty.

Flat Gold Project Gains Industry Backing as Experts Highlight Multi-Million-Ounce Potential

According to Jeff Clark, Senior Analyst at The Gold Advisor, Tectonic Metals' latest drill results at the Flat Gold Project signified a major expansion of the Chicken Mountain gold system, extending its strike length to three kilometers. He highlighted that the company's Alpha Bowl discovery demonstrated strong mineralization continuity, with notable drill intercepts such as 65.5 meters at 1.2 g/t gold, including 6.1 meters at 6.0 g/t gold and 1.5 meters at 21.7 g/t gold. Clark noted that the mineralization remained open in all directions, reinforcing the project's long-term potential.

Tectonic's President and CEO, Tony Reda, described Alpha Bowl as a "game-changer," emphasizing that every hole in the company's maiden drill program returned gold mineralization, with assays reaching up to 67 g/t gold. Clark pointed out that the company's ongoing exploration efforts align with a broader industry trend, as Donlin Gold — located 40 kilometers away — recently announced a US$43 million exploration budget for 2025. He also noted that the Flat Gold Project benefits from its location on 99,800 acres of Native-owned land, where Doyon Limited has invested over US$4 million to support the company's efforts.

Clark further underscored the significance of Tectonic's 100% drill success rate at Chicken Mountain, with all 86 drill holes intersecting gold mineralization. He highlighted that Tectonic's recent metallurgical tests returned up to 96% gold recovery using heap leaching, positioning the project as a strong candidate for a large-scale, bulk-tonnage, open-pit mining operation. Clark concluded that Tectonic's stock surged 20% on the news before pulling back due to broader market factors, but he emphasized that the company's consistent exploration success continued to build a compelling case for long-term growth.

Tectonic Metals Advances Flat Gold Project with High-Recovery Heap Leach Potential and Expanded Drilling Plans

Tectonic Metals' corporate presentation highlights the Flat Gold Project's potential to support a bulk-tonnage, open-pit mining operation. The company's metallurgical testing has demonstrated gold recoveries of up to 96% using heap leaching, a cost-effective extraction method. This aligns with other successful heap-leach operations in Alaska, such as Kinross Gold's Fort Knox Mine.

As outlined in its investor presentation, the company's next steps involve expanding drilling efforts at Alpha Bowl and other identified targets within the Flat Gold Project. With the mineralized system open in multiple directions, Tectonic plans to conduct deeper, more systematic diamond drilling to further delineate high-grade zones. Additionally, the validation of low magnetic susceptibility zones as exploration targets provides a roadmap for further discoveries at Flat.

Strategically located near the Donlin Gold Project, which recently announced a $43 million exploration budget for 2025, Flat benefits from being in an established mining jurisdiction. Tectonic's ongoing partnership with Doyon Limited, a major Alaska Native Regional Corporation, further strengthens the project's development prospects.

Ownership and Share Structure

As per Refinitiv, Institutions own 20.52% of Tectonic Metals. Of those, Crescat Capital LLC holds approximately 17%, Doyon Limited owns around 10%, and Tecotonic and other institutions hold 11%..

Management and Insiders own 1.58% and Strategic Entities hold 7.77%. The rest is retail.

The company has 380.58 million free float shares and market capitalization of CA$15.95 million. The 52 week range is CA$0.04–$0.11.