Osisko Development Corp. ("
Osisko Development" or
the "
Company") (ODV TSX-V & NYSE) is pleased
to announce the filing of a technical report, prepared in
accordance with National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("
NI 43-101"), on
its recently acquired Tintic Project ("
Tintic"),
including the producing underground Trixie Mine
("
Trixie") located in the state of Utah, USA,
pursuant to its 100% acquisition of Tintic Consolidated Metals
Company ("
TCM") on May 27, 2022.
Introduction
The Tintic Project consists of various past
producing precious and base metal mines located in the East Tintic
Mining District, Utah, 95 km southwest of Salt Lake City. The
Tintic Project is comprised of approximately 17,000 acres
(6,880 ha), including 14,200 acres (5,746 ha) of patented
mining claims (Figure 1), and was acquired by Osisko Development on
May 27, 2022 (see news release on the Company's website). Trixie,
located within the Tintic Project, is an operating gold mine and
produces approximately 45 tons per day
("tpd").
The technical report on the Tintic Project,
entitled "Technical Report on the Tintic Project, East Tintic
Mining District, Utah County, Utah, USA", dated June 10, 2022
(effective date of June 7, 2022), prepared by Tom Henricksen (SME #
411 5974) (the "Tintic Technical Report") provides
a summary of the geology and mineralization (Figure 2), description
of land and ownership, property history, current development and
production at Trixie and recommendations on future work programs.
There is currently no mineral resource estimate on the Tintic
Project that complies with NI 43-101 and, as such, any decisions in
respect of the Tintic Project have been informed by data collected
and current best practices adopted by management. The current
production at Trixie is directed by underground exploration, face
sampling, and drilling.
Highlights
- Based on 1,996 underground
samples taken in the T2 and T4 mineralized zones along a
strike length of 630 ft, the uncapped and unweighted grade is
5.49 oz/t Au ("troy oz per ton")
(188.23 g/t Au) ("grams per
tonne") and 6.64 oz/t Ag (227.66 g/t Ag).
Mineralization is open in all directions (Figure 3).
- The discovery of the T2 and T4
structures in late 2020 by TCM showed Au grades associated with
high sulphidation alteration hosted within quartzites that are
capped by impermeable shales and volcanics.
- Trixie production is approximately
45 tpd
- A total of 27,400
tons of mineralized material was mined at Trixie from
September 2020 through to the end of December 2021 generating
15,752 oz of Au and 17,605 oz of silver (Ag) from
the 625 level predominantly from the T2.
- Total revenue for TCM from January
to end of December 2021 was approximately $26.1 million
USD.
- Access to the underground workings
is available via an existing operating shaft. Underground
exploration is being conducted on the upper level at the same time
as extraction of mineralized material for processing.
The Company intends to invest at Trixie over the
following months to advance exploration initiatives, including the
construction of an underground exploration ramp and continuing with
diamond drilling and sampling, to inform the preparation of a
technical report for an initial mineral resource estimate in
accordance with NI 43-101, which is anticipated for release by
the end of Q4, 2022.
Sean Roosen, CEO of Osisko Development,
commented, "The Tintic acquisition is an exciting acquisition for
our shareholders as it provides the Company with immediate
production and a clear opportunity for exploration. We believe that
we have the potential to define the resource estimate and provide a
basis for future production at a low capital cost. We are excited
about the quality of exploration targets at Trixie, and the areas
beyond Trixie within the large wholly owned district."
Figure 1: Project Location
Maphttps://www.globenewswire.com/NewsRoom/AttachmentNg/a279cfb6-d607-4b00-8927-d3e8f78de994
Figure 2: Mineralization Styles at
Tintichttps://www.globenewswire.com/NewsRoom/AttachmentNg/48d67e96-9034-4a1f-9a2a-06ea7c7bf180
Figure 3: Long Section of the Trixie
Minehttps://www.globenewswire.com/NewsRoom/AttachmentNg/da3053a6-6f58-475f-91a9-cdf33bd559c0
Qualified Persons / Technical
Information
Tom Henricksen, (SME # 411 5974), a "qualified
person" within the meaning of NI 43-101 and "independent" of Osisko
Development for purposes of Section 1.5 of NI 43-101, has reviewed
and approved the scientific and technical information in this news
release.
For further information on Trixie, please see
the Tintic Technical Report, a copy of which is available on SEDAR
(www.sedar.com) and on the U.S. Securities and Exchange
Commission's (“SEC”) EDGAR website (www.sec.gov),
in each case under Osisko Development's issuer profile, and on the
Company's corporate website.
The Company cautions that the decision to
commence production at Trixie in the form of small scale
underground mining and batch vat leaching without the benefit of a
feasibility study, or reported mineral resources or mineral
reserves, demonstrating economic and technical viability, and, as a
result there may be increased uncertainty of achieving any
particular level of recovery of material or the cost of such
recovery. The Company cautions that historically, such projects
have a much higher risk of economic and technical failure. There is
no guarantee that production will continue as anticipated or at all
or that anticipated production costs will be achieved. The failure
to continue production may have a material adverse impact on the
Company's ability to generate revenue and cash flow to fund
operations. Failure to achieve the anticipated production costs may
have a material adverse impact on the Company's cash flow and
potential profitability. The Company cautions that historically,
such projects have a much higher economic or technical risks. In
continuing current operations at Trixie after closing, the Company
will not be basing its decision to continue such operations on a
feasibility study, or reported mineral resources or mineral
reserves demonstrating economic and technical viability. The
Company cautions that mining at Trixie could be suspended at any
time.
The Company is subject to the reporting
requirements of the applicable Canadian securities laws, and as a
result reports information regarding mineral properties,
mineralization and estimates of mineral reserves and mineral
resources, including the information in the Tintic Technical Report
and this news release, in accordance with Canadian reporting
requirements, which are governed by NI 43-101. As such, such
information concerning mineral properties, mineralization and
estimates of mineral reserves and mineral resources, including the
information in the Tintic Technical Report and this news release,
is not comparable to similar information made public by U.S.
companies subject to the reporting and disclosure requirements of
the SEC.
About Osisko Development
Corp.
Osisko Development Corp. is uniquely positioned
as a premier gold development company in North America to advance
the Cariboo Gold Project and other Canadian, U.S.A. and Mexican
properties, with the objective of becoming the next mid-tier gold
producer. The Cariboo Gold Project, located in central British
Columbia, Canada, is Osisko Development's flagship asset. The
considerable exploration potential at depth and along strike
distinguishes the Cariboo Gold Project relative to other
development assets. Osisko Development's project pipeline is
complemented by its interest in the San Antonio gold project,
located in Sonora, Mexico and the Trixie gold test mine, located in
Utah, U.S.A.
For further information, please contact
Osisko Development Corp.: Jean Francois Lemonde VP,
Investor Relations jflemonde@osiskodev.com Tel: 514-299-4926
Forward-looking Statements
Certain statements contained in this news
release may be deemed "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and "forward-looking information" within the meaning of
applicable Canadian securities legislation. These forward‐looking
statements, by their nature, require Osisko Development to make
certain assumptions and necessarily involve known and unknown risks
and uncertainties that could cause actual results to differ
materially from those expressed or implied in these forward‐looking
statements. Forward‐looking statements are not guarantees of
performance. Words such as "may", "will", "would", "could",
"expect", "believe", "plan", "anticipate", "intend", "estimate",
"continue", or the negative or comparable terminology, as well as
terms usually used in the future and the conditional, are intended
to identify forward‐looking statements. Information contained in
forward‐looking statements is based upon certain material
assumptions that were applied in drawing a conclusion or making a
forecast or projection, including management's perceptions of
historical trends, current conditions and expected future
developments, results of further exploration work to define and
expand mineral resources, expected conclusions of optimization
studies, that vein corridors continue to be defined as a
high-density network of mineralized quartz within the axis of the
last folding event and hosted within the sandstones and that the
deposit remains open for expansion at depth and down plunge, as
well as other considerations that are believed to be appropriate in
the circumstances, and any other information herein that is not a
historical fact may be "forward looking information". Material
assumptions also include, management's perceptions of historical
trends, current conditions and expected future developments,
results of further exploration work to define or expand any mineral
resources, the ability to continue production at its Trixie mine,
as well as other considerations that are believed to be appropriate
in the circumstances. Osisko Development considers its assumptions
to be reasonable based on information currently available, but
cautions the reader that their assumptions regarding future events,
many of which are beyond the control of Osisko Development, may
ultimately prove to be incorrect since they are subject to risks
and uncertainties that affect Osisko Development and its business.
Such risks and uncertainties include, among others, risks relating
to capital market conditions, the ability to continue current
production, regulatory framework, the ability of exploration
activities (including drill results) to accurately predict
mineralization; errors in management's geological modelling; the
ability of to complete further exploration activities, including
drilling; property and stream interests in the Project; the ability
of the Company to obtain required approvals; the results of
exploration activities; risks relating to exploration, development
and mining activities; the global economic climate; metal prices;
dilution; environmental risks; and community and non-governmental
actions and the responses of relevant governments to the COVID-19
outbreak and the effectiveness of such responses. Readers are urged
to consult the disclosure provided under the heading "Risk Factors"
in the Company's annual information form for the year ended
December 31, 2021, as amended, which has been filed on SEDAR
(www.sedar.com) under Osisko Development's issuer profile and on
the SEC's EDGAR website (www.sec.gov), for further information
regarding the risks and other factors applicable to the exploration
results. Although the Company's believes the expectations conveyed
by the forward-looking statements are reasonable based on
information available at the date of preparation, no assurances can
be given as to future results, levels of activity and achievements.
The Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or results or otherwise, except as required by law. There can be no
assurance that these forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release. No stock exchange,
securities commission or other regulatory authority has approved or
disapproved the information contained herein.
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