TSXV:OIII | OTCQX:OIIIF - O3 Mining
TORONTO, March 1, 2022 /CNW/ - O3 Mining Inc.
(TSXV: OIII) (OTCQX: OIIIF) ("O3 Mining" or the
"Corporation") is pleased to provide an updated Mineral Resource
Estimate ("MRE") for its 100 percent ("%") owned Marban Project
located in Val-d'Or, Québec,
Canada. This MRE includes the
results of 39,208 metres of infill and expansion drilling in and
around the 2020 Marban Preliminary Economic Assessment ("PEA")
pits.
Highlights
- Total Measured & Indicated ("M&I)" Open-Pit Mineral
Resource of 2.3 million ounces of gold at an average grade of 1.07
g/t Au
- Increase in Open-Pit resources of 520,000 ounces (+29%) in
the Indicated category, with an average gold grade increased by
2%.
- Conversion rate from Inferred to Indicated category is
greater than 100%
- Kierens-Norlartic Open Pit M&I resources more than
doubled from 2020 MRE
- Total M&I represents 91% of Total MRE
- 20,000 metres planned for Brownfield exploration to increase
near surface resources at Marban Engineering
The updated mineral resource is estimated from 507,238 metres of
drilling in 2,205 holes including 39,208 metres in 209 holes
drilled by O3 Mining from March to December 2021. Most of the
drilling was dedicated to infill drilling to convert inferred
resources from the PEA to indicated resources, which will be used
as a resource base for the upcoming Pre-Feasibility Study ("PFS")
together with recently completed and reported metallurgical
testwork results. The completed drilling succeeded to convert
Inferred resources from the PEA to Indicated resources.
O3 Mining's President and Chief Executive Officer, Mr.
Jose Vizquerra commented, "We are
very pleased with the Marban resource update which successfully
converted our inferred resources into indicated, with a conversion
rate greater than 100%, which positions us well for the PFS to be
completed later this year. Together with the recent metallurgical
test work results and higher indicated resources, we are expecting
to see robust economics in the Marban PFS and to move quickly
towards initiating a Feasibility study. In parallel, initiating our
20,000 metres brownfield exploration program to increase
near-surface resources and ounces at Marban Engineering."
The current drilling campaign on Marban Engineering will aim to
expand the mineralization along strike to potentially generate
future resources. The lateral extension of pits of the current
resource estimates will be targeted, in particular, the two new
pits generated north of the Marban main pit. Other zones not
included in the current estimate will also be targeted such as
Orion, Malartic Hygrade and Malartic
H prospects.
Table 1: Marban Mineral Resource Estimate by Deposit
DEPOSIT
|
INDICATED
|
INFERRED
|
Tonnes
(kt)
|
Gold(g/t)
|
Ounces
(koz)
|
Tonnes
(kt)
|
Gold
(g/t)
|
Ounces
(koz)
|
Marban –
Open-Pit
|
52,437
|
1.03
|
1,736
|
1,038
|
0.97
|
32
|
Kierens-Norlartic –
Open-Pit
|
14,795
|
1.22
|
582
|
1,068
|
1.42
|
49
|
Total
Open-Pit
|
67,232
|
1.07
|
2,318
|
2,106
|
1.20
|
81
|
Marban -
UG
|
162
|
4.47
|
23
|
860
|
4.43
|
123
|
Kierens-Norlartic -
UG
|
297
|
3.36
|
32
|
182
|
3.36
|
20
|
Total -
UG
|
460
|
3.75
|
55
|
1,043
|
4.25
|
142
|
Total – Open-Pit
and UG
|
67,692
|
1.09
|
2,374
|
3,149
|
2.21
|
223
|
Notes: See
Marban Mineral Resources Estimate Notes further below.
|
Table 2: Combined Marban and Kierens-Norlartic Open-Pit MRE
Sensitivity Table
CUT-OFF
(g/t Au)
|
INDICATED
|
INFERRED
|
Tonnes
(kt)
|
Gold
(g/t)
|
Ounces Au
(oz)
|
Tonnes
(kt)
|
Gold
(g/t)
|
Ounces Au
(oz)
|
0.25 g/t
|
71,111
|
1.03
|
2,353
|
2,308
|
1.12
|
83
|
0.30
g/t
|
67,232
|
1.07
|
2,318
|
2,106
|
1.2
|
81
|
0.40 g/t
|
59,327
|
1.17
|
2,229
|
1,879
|
1.3
|
78
|
0.50 g/t
|
51,805
|
1.27
|
2,121
|
1,641
|
1.42
|
75
|
Notes: The
above tonnages and grades are shown for comparison purposes only,
and the reader should refer to Table 1 for the official resource
tabulation.
|
Table 3: Marban Open-Pit MRE Comparison – September 2020 vs February
2022
Resource
Date
|
Gold Price
(US$/oz Au)
|
Cut-off
(g/t Au)
|
MEASURED &
INDICATED
|
INFERRED
|
|
Tonnes
(Mt)
|
Grade
(g/t)
|
Ounces
(Moz)
|
Tonnes
(Mt)
|
Grade
(g/t)
|
Ounces
(Moz)
|
|
|
Sep -
2020
|
1,800
|
0.3
|
53.4
|
1.05
|
1.8
|
12.8
|
1.25
|
0.51
|
|
Feb -
2022
|
1,900
|
0.3
|
67.2
|
1.07
|
2.32
|
2.1
|
1.2
|
0.08
|
|
Difference
|
13.8
|
0.02
|
0.52
|
-10.7
|
-0.05
|
-0.43
|
|
Percentage
|
26%
|
2%
|
29%
|
-84%
|
-4%
|
-84%
|
|
The vast majority of this mineral resource estimate is covered
by drill holes spaced 25 to 40 metres apart. The Marban MRE is
based on 717 drill holes totalling 228,936 metres, of which 193,126
metres were assayed. The Kierens-Norlartic MRE is based on 1488
drill holes totalling 278,302 metres, of which 139,106 metres were
assayed. Mineralized wireframes were constructed with the
collaboration of the geological teams of O3 Mining and G-Mining
Services to reflect the folded nature of the mineralization at
Marban, and in accordance with the shape of the historical mining
stopes and the historical underground mapping. Most of the
mineralization consists of quartz – calcite – chlorite veinlets
associated with disseminated pyrite, pyrrhotite and locally visible
gold. Within the Marban pit and at the North zone, the
mineralization is hosted within or near iron-rich basalts.
Mineralization along the Kierens-Norlartic zones is hosted within
or near an albitized and chlotitized intermediate dyke swarm. The
North-North zone mineralization consists of quartz – tourmaline
veinlets within a felsic albitized dyke.
The MRE is based on 29 domains in the Marban sector and 18
domains in the Kierens-Norlartic sectors. Interpolation algorithms
are a mix of ordinary kriging ("OK"), Inverse Distance Squared
("ID2") and Inverse Distance Cubed ("ID3") depending on the grade
continuity and available data in each domain. Outlier high-grade
assays have been capped before compositing at 1.5 metres
intervals, and capping grade has been defined by domain based on
decile analysis and probability plots. Mineral Resource
Classifications have been applied based on distance to drilling and
estimation pass. In-Pit resources represent blocks above a shell
defined by Whittle using a cut-off grade of 0.3 g/t using cost
estimation similar to the PEA (Table 4).
Table 4: Parameters used to estimate cut-off grade – Marban
and Kierens-Norlartic
OPTIMIZATION
PARAMETERS
|
|
UNIT
|
VALUE
|
Economic
Parameters
|
|
|
|
|
Discount
rate
|
|
|
%
|
5.00%
|
Gold price
|
|
|
US$/oz
|
1,900
|
Transport &
refining cost
|
|
US$/oz
|
4.3
|
Royalty
rate
|
|
|
%
|
1.50%
|
Royalty cost -
Gold
|
|
|
US$/oz
|
28.42
|
Net gold
value
|
|
|
US$/oz
|
1,867
|
Recovery &
Dilution Factors
|
|
|
|
Average gold
recovery
|
|
%
|
93.70%
|
Mining dilution (in
block model)
|
|
%
|
5.00%
|
Mining loss (in block
model)
|
|
%
|
0.00%
|
Other Ore Based
Costs
|
|
|
|
Total Processing Cost
incl. Power
|
|
C$/t
milled
|
14.5
|
General &
administration costs
|
|
C$/t
milled
|
3.7
|
Total Ore Based Cost
& Cut-Off Grade
|
|
|
Total Ore Based
Cost
|
|
|
C$/t
milled
|
18.2
|
Gold Cut-Off
Grade
|
|
|
g/t
Au
|
0.3
|
Mining
|
|
|
|
|
Total Mining
Reference Cost
|
|
C$/t
mined
|
2.4
|
Incremental bench
cost
|
|
C$/5m
bench
|
0.003
|
The MRE (with an effective date of February 27, 2022) was prepared by G-Mining
Services Inc. The full technical report, which is being prepared in
accordance with National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI-43-101"), will be available on
SEDAR (www.sedar.com) under the Corporation's issuer profile within
45 days.
Marban Mineral Resource Estimate Notes
- The Mineral Resources described above have been prepared in
accordance with the CIM Standards (Canadian Institute of Mining,
Metallurgy and Petroleum, 2014) and follow Best Practices outlined
by the CIM (2019).
- The Qualified Person (QP) for this Mineral Resource Estimate is
James Purchase, P. Geo of G Mining
Services Inc. Mr. Purchase is a member of L'Ordre des
Géologues du Québec (#2082).
- The effective date of the Mineral Resource Estimate is
February 27th, 2022.
- The lower cut-off used to report Open-Pit Mineral Resources is
0.30 g/t Au. Underground Mineral Resources have been reported using
a 3.0 g/t lower cut-off at Marban, and a 2.5 g/t lower cut-off
at Kierens-Norlartic.
- The Marban and Kierens-Norlartic Deposits have been classified
as Indicated and Inferred Mineral Resources according to drilling
spacing and estimation pass. No Measured Resource has been
estimated. Underground Mineral Resources have been categorized
manually to remove isolated areas and have been reported using 3
metres minimum thickness.
- Known underground workings have been incorporated into the
block model, and zero density has been assigned to the blocks
located within the voids.
- The density has been applied based on measurements taken on
drill core and assigned in the block model by lithology.
- A minimum thickness of 3 metres was used when interpreting the
mineralized bodies.
- The MRE is based on subblock models with a main block size of
5 m x 5
m x 5 m, with subblocks of
2.5 m x 2.5
m x 2.5 m, and has been
reported inside claim boundaries held by O3 Mining
- Tonnage has been expressed in the metric system, and gold metal
content has been expressed in troy ounces.
- The tonnages have been rounded to the nearest 1000 tons and the
metal content has been rounded to the nearest 1000 ounces. Totals
may not add up due to rounding errors.
- These mineral resources are not mineral reserves as they have
not demonstrated economic viability. The quantity and grade of
reported Inferred mineral resources in this news release are
uncertain in nature and there has been insufficient exploration to
define these resources as indicated or measured; however, it is
reasonably expected that the majority of inferred mineral resources
could be upgraded to indicated mineral resources with continued
exploration.
Figure 1: Marban Project Map
Qualified Person
The information pertaining to the MRE in this news release has
been reviewed and approved by Mr. James
Purchase, P. Geo. (OGQ #2082), Vice-President, Geology and
Resources of G-Mining Services Inc. All other scientific and
technical content of this news release has been reviewed, prepared,
and approved by Mr. Sébastien Vigneau, P. Geo (OGQ #993), Principal
Geologist of the Corporation. Messrs. Purchase and Vigneau are
"Qualified Persons" as defined by National Instrument 43-101 –
Standards of Disclosure for Mineral Projects ("NI 43-101").
About O3 Mining Inc.
O3 Mining Inc., an Osisko Group company, is a gold explorer and
mine developer on the road to produce from its highly prospective
gold camps in Québec, Canada. O3
Mining benefits from the support, previous mine-building success,
and expertise of the Osisko team as it grows towards being a gold
producer with several multi-million-ounce deposits in Québec.
O3 Mining is well-capitalized and owns a 100% interest in all
its properties (137,000 hectares) in Québec. O3 Mining trades on
the TSX Venture Exchange (TSXV: OIII) and OTC Markets (OTCQX:
OIIIF). The Corporation is focused on delivering superior returns
to its shareholders and long-term benefits to its stakeholders.
Further information can be found on our website at
https://o3mining.com
About G-Mining Services
G-Mining Services Inc. is a specialized mining consultancy firm
based in Canada. We are an
entrepreneurial minded and multidisciplinary company that offers a
wide range of services to both underground and open pit mining
projects from greenfield to operating mines. Our firm possesses the
rare capabilities to develop a resource from the exploration phase,
to development, into construction, commissioning and then
operations.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within
the meaning of the applicable Canadian securities legislation that
is based on expectations, estimates, projections, and
interpretations as at the date of this news release. The
information in this news release about the transaction; and any
other information herein that is not a historical fact may be
"forward-looking information". Any statement that involves
discussions with respect to predictions, expectations,
interpretations, beliefs, plans, projections, objectives,
assumptions, future events or performance (often but not always
using phrases such as "expects", or "does not expect", "is
expected", "interpreted", "management's view", "anticipates" or
"does not anticipate", "plans", "budget", "scheduled", "forecasts",
"estimates", "believes" or "intends" or variations of such words
and phrases or stating that certain actions, events or results
"may" or "could", "would", "might" or "will" be taken to occur or
be achieved) are not statements of historical fact and may be
forward-looking information and are intended to identify
forward-looking information. This forward-looking information is
based on reasonable assumptions and estimates of management of the
Corporation, at the time it was made, involves known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the companies to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
information. Such factors include, among others, risks relating to
the restart of operations; further steps that might be taken to
mitigate the spread of COVID-19; the impact of COVID-19 related
disruptions in relation to the Corporation's business operations
including upon its employees, suppliers, facilities and other
stakeholders; uncertainties and risk that have arisen and may arise
in relation to travel, and other financial market and social
impacts from COVID-19 and responses to COVID 19. Although the
forward-looking information contained in this news release is based
upon what management believes, or believed at the time, to be
reasonable assumptions, the parties cannot assure shareholders and
prospective purchasers of securities that actual results will be
consistent with such forward-looking information, as there may be
other factors that cause results not to be as anticipated,
estimated or intended, and neither the Corporation nor any other
person assumes responsibility for the accuracy and completeness of
any such forward-looking information. The Corporation does not
undertake, and assumes no obligation, to update or revise any such
forward-looking statements or forward-looking information contained
herein to reflect new events or circumstances, except as may be
required by law.
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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SOURCE O3 Mining Inc.