Osisko Development Corp. (“
Osisko Development” or
the “
Company”) (ODV TSX.V & NYSE) is pleased
to provide an update on the recently acquired Tintic Consolidated
Metals Ltd. (“
TCM”) and its 100% owned Trixie Mine
(“
Trixie”), as well as mineral claims covering
more than 17,000 acres (including over 14,200 acres of which are
patented) located in Central Utah’s historic Tintic Mining District
(together with Trixie, the “
Tintic Project”).
Summary
Trixie is one of several gold and base metal
targets within the larger Tintic Project. The discovery of the T2
and T4 structures at Trixie in late 2020 by TCM showed interesting
gold (“Au”) grades associated with high
sulphidation alteration hosted within quartzites that are capped by
impermeable shales and volcanics. Access to the underground
workings is available via an existing shaft, and underground
(“UG”) exploration was conducted on and around the
upper level which is located at 625 ft (190 m) below surface. High
grade mineralized material resulting from exploration mining is
extracted from the T2 and T4 structures and is processed via vat
leaching-on site. Table 1 summarizes the key operational details
that TCM accomplished at Trixie from late 2020 to the end of May
2022:
- Trixie officially re-opened in June
2020 following the re-furnishment of the main shaft and upper 625
level of the mine, and following initial exploration drilling and
underground development towards the identified historic resource
target, discovered the high-grade T2 structure in September
2020.
- 25,043 ounces of gold produced
since exploration and development operations commenced
- Significant improvements were made
to increase gold recoveries
- 750 ft. (229 m) of strike length was defined for the T2 vein
and adjacent T4 stockwork mineralization by UG development and
drilling
- True widths of the combined T2 and
T4 zones is defined between 10 ft. and 150 ft. (3 m and 46 m), with
corresponding heights between 60 ft. (18 m) and 150 ft. (46 m) ,
and is open at depth.
- 955 ft. (291 m) of UG development
has been completed on or near the 625 level of the Trixie Mine with
2,822 ft. (860 m) along strike in the T2 and T4 mineralized zones
including exploration crosscuts driven perpendicular to the east of
T2 and T4 zones, and 289 ft. (88 m) of raises excavated.
- A total of 8,593 ft. (2,619 m) of
UG diamond drilling in 47 drill holes from 23-Jun-2020 to
4-Jun-2022
- To-date, multi-ounce gold
mineralization remains open along strike and at depth
For further information on Tintic, including
additional production details please see 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), and filed at
www.sedar.com under the profile of the Company.
Table 1: Key Operation Details for Trixie:
TCM Key Operating Details |
|
2020 |
2021 |
Q1 2022 |
Mineralized Material Milled in tons (tonnes) |
2,862 (2,596) |
16,563 (15,026) |
3,933 (3,568) |
Mill Throughput in tpd (tonnes/day) |
71 (64.4) |
45 (40.8) |
44 (39.9) |
Blended T2 & T4 Diluted Head Grade in oz/t Au (g/t
Au) |
1.65 (56.6) |
1.65 (56.6) |
1.35 (46.3) |
Gold Recovery (%) |
Less than 25% |
68% |
74% |
Gold Produced and Sold (oz) |
397 |
14,608 |
7,163 |
In addition to the approximately 14,200 acres of
patented mineral claims and 2,800 acres of mineral leases, the
project is supported by significant on-site infrastructure along
with mining and exploration permits as summarized below:
- On-site vat leach facility and
tailings disposal/storage area presently treating about 35 tpd (32
tonnes/day) of mineralized material from UG exploration development
at Trixie
- Buildings and equipment allowing
for expansion of the current processing facilities
- Mine and exploration offices,
maintenance shops, assay laboratory, processing building and other
buildings for future use.
- More than 4 MW of grid energy
currently available.
- Adequate water rights procured for
current operations and planned exploration work.
- Paved and all weather road access
to all present operation and exploration sites.
- Trixie head frame and hoist with
150 tpd (136 tonnes/day) capacity.
- Headframes at Burgin and Apex that
require some upgrades.
- Underground mining on levels down
to approx. 1,000 ft. to 1,350 ft. depth (305 m to 411 m) at most
mines in the East Tintic district. Mining stopped at the water
table.
- 50 years of data generated
principally by Kennecott which operated mines in the East Tintic
district from 1965 to 1995. This data is being placed into a 3D
model on a priority basis.
- All required permits for planned
exploration for 2022 and 2023.
- All required mine and processing
permits for the Trixie Mine and Burgin processing facilities.
Infrastructure to develop a decline from surface
to the 625 level in the Trixie Mine was initiated in May 2022. This
will significantly improve access to the underground workings,
expand and increase UG exploration areas and activities, and will
be the principal access for future larger scale mining in the T2/T4
zone. UG development a decline is expected to commence in Q3 2022.
Development of this decline will continue in to the lower levels of
the Trixie mine which was historically mined to 1,350 ft. (412 m)
below surface with many stopes ending in mineralization.
Chris Lodder, President of Osisko Development
commented:“The Tintic Project acquisition is an exciting
acquisition for ODV shareholders allowing us short term production
from exploration and potential through disciplined exploration to
define a resource base and set the stage for future production with
a focus on pursing high grade and low capex opportunities. The
quality of exploration targets outside of Trixie is second to none
and as we develop our plans over the next few months we will
continue to share this information with our shareholders.”
Qualified Persons
Per National Instrument 43-101 Standards of
Disclosure for Mineral Projects, David Sabourin, P.E., Chief
Operating Officer of TCM, is a Qualified Person and has prepared,
validated, and approved the technical and scientific content of
this news release. All operational and information provided in this
update is documented and stored in the company database.
Quality Assurance (QA)/Quality Control
(QC)
All underground face samples are collected by
TCM Geologists from each of the active mining faces, with samples
transported by the Geologists from Trixie to the on-site TCM
laboratory located at the Burgin administrative complex.
Underground samples are dried, crushed to <10 mm and a 250 g
split is taken. The split is pulverized, and a 30 g Fire Assay with
gravimetric finish is completed to determine gold and silver
grades, reported in oz./ton and g/t.
The TCM Burgin laboratory is not a certified
analytical laboratory, but the facility is managed by a qualified
Laboratory Manager with annual auditing by technical staff.
Inter-laboratory check assays using ALS Laboratory as a third-party
independent analysis of samples is routinely carried out as part of
ongoing QA/QC work. Certified OREAS Quality Control
(“QC”) standards and blanks are inserted at
regular intervals in the sample stream to monitor laboratory
performance.
All drill core and exploration samples are
dispatched to ALS Laboratory for offsite sample preparation and
analysis. Samples are assigned a unique sample ID. All geological
and sampling information is entered into Datashed database. Core is
sawn in half and half are sampled. Certified standards and blanks
inserted into all sample dispatches. Samples are collected by Old
Dominion Transportation and dispatched to ALS Laboratory in Reno,
NV. Sample submission forms accompany the samples, and digital
copies emailed to ALS.
All sample preparation is completed by ALS,
including crushing and pulverizing (Prep31) of samples. Analytical
assay include gold and silver by fire assay of 50g sample with AAS
finish (Au-AA26), over limits by gravimetric analysis (Au-Grav22).
Multi element analysis is by four acid digest (ME-MS61). The pulps
are returned to TCM and coarse rejects are disposed after 90 days.
Assays are reported to TCM, and then loaded into Datashed, QA/QC
samples are checked, and assays merged with sample information for
future reporting.
Cautionary Statements
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. 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.
Update on Cariboo Project
The Company has now signed life of project
Impact Benefit Agreements with two First Nations, Lhtako Dene in
October 2020 and recently with Williams Lake First Nation. Work at
the BL 2 test mine project is temporarily suspended and on care and
maintenance due to supply chain issues and inflationary pressures.
The Company continues to focus on The Cariboo Feasibility Study is
slated to be completed in the fourth quarter 2022 with continuing
efforts on permitting and the required reclamation at historic
sites.
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, 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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