Osisko Metals Incorporated (the “
Company” or
“
Osisko Metals”) (TSX-V: OM; OTCQX: OMZNF;
FRANKFURT: 0B51) is pleased to announce that drilling at Gaspé
Copper will begin this week. The drill program will focus on
re-evaluation of copper mineralization near the past-producing
Mount Copper open pit, with Phase 1 (10,000 metres) primarily
designed to evaluate extent of near-surface oxide mineralization,
and a subsequent Phase 2 program (20,000 metres) for infill
drilling in order to update the currently modelled in-pit resource.
The company anticipates issuing the maiden,
NI43-101 compliant, in-pit Inferred Mineral Resource Estimate for
the Mount Copper deposit before the end of April, which will be
based on historical drilling results from Noranda (until 1998), and
more recently from Xstrata and Glencore Canada (2011 to 2019).
Robert Wares, Chairman & CEO, commented: “We
are excited to take this first step in re-evaluating the historic
Gaspé Copper mine located near the community of Murdochville. Our
initial drilling will be focused on completing our due diligence
requirements, including further testing of the surface oxide zone.
Should Osisko Metals acquire this asset from Glencore Canada, the
objective this year will be to complete the 30,000 metre drill
program and launch a Preliminary Economic Assessment of the
project. Additional drilling may be completed this year in order to
upgrade the forthcoming Inferred Mineral Resource Estimate to the
Measured and Indicated categories so that we can rapidly move
forward to a Feasibility Study.”
The expansion of the Mount Copper open pit was
evaluated by Noranda in the 1980’s but did not proceed due to the
presence of the copper smelter located on the pit perimeter. Mining
operations ceased in 1999 and the smelter closed in 2002. Since
then, the entire mine, mill and smelter complex was dismantled and
the site has been on care and maintenance. With the smelter gone,
potential expansion of the Mount Copper pit is now possible and
this will be the focus of the Company’s resource evaluation in the
context of rising copper prices.
Pine Point Update
The winter drill program at Pine Point is
finishing and drilling will be suspended during spring break-up.
Drilling will resume in June 2022 and remaining drilling, which
will extend into winter 2023, will allow conversion of the Inferred
Mineral Resources to the Measure and Indicated categories, which
will be included in the 2023 feasibility study.
The site-wide hydrogeological study is near
completion and results are being incorporated into the 2022 PEA
Update. The study will integrate significantly lower dewatering
costs and increased commodity prices.
The PEA Update is now scheduled for release in
mid-May. The delay in issuing the PEA from the end of the first
quarter was to fully calibrate the hydrogeological model and to
further optimize the Life-of-Mine Plan. Following this we will
continue with trade off studies in preparation of the 2023
feasibility study. The study will also include an estimate of the
further reduction in greenhouse gas emissions.
The 2020 PEA already included the reduction of
energy associated to material sorting reducing the throughput of
the concentrator by approximately forty percent. That combined with
the use of natural gas generators to generate power that was not
available on the Taltson grid. The 2022 PEA Update should have less
power needs due the reduced de-watering volume estimates.
Qualified Person
Mr. Jeff Hussey, P. Geo., is the Qualified
Person and President/COO for Osisko Metals Incorporated. He is
responsible for the technical data reported in this news release
and he is a Professional Geologist registered in Quebec.
About Osisko Metals
Osisko Metals Incorporated is a Canadian
exploration and development company creating value in the base
metal space. The Company controls one of Canada’s premier
past-producing zinc mining camps, the Pine Point Project, located
in the Northwest Territories for which the 2020 PEA has indicated
an after-tax NPV of $500M and an IRR of 29.6%. The Pine Point
Project PEA is based on current Mineral Resource Estimates that are
amenable to open pit and shallow underground mining and consist of
12.9Mt grading 6.29% ZnEq of Indicated Mineral Resources and 37.6Mt
grading 6.80% ZnEq of Inferred Mineral Resources. Please refer to
the technical report entitled “Preliminary Economic Assessment,
Pine Point Project, Hay River, Northwest Territories, Canada” dated
July 30 2020, which has been filed on SEDAR. The Pine Point Project
is located on the south shore of Great Slave Lake in the Northwest
Territories, near infrastructure, paved highway access, and has an
electrical substation as well as 100 kilometres of viable haulage
roads already in place.
The current Mineral Resources mentioned in this
press release conform to NI43-101 standards and were prepared by
independent qualified persons, as defined by NI43-101 guidelines.
The abovementioned Mineral Resources are not Mineral Reserves as
they do not have demonstrated economic viability. The quantity and
grade of the reported Inferred Mineral Resources are conceptual in
nature and are estimated based on limited geological evidence and
sampling. Geological evidence is sufficient to imply but not verify
geological grade and/or quality of continuity. Zinc equivalency
percentages are calculated using metal prices, forecasted metal
recoveries, concentrate grades, transport costs, smelter payable
metals and charges (see respective technical reports for
details).
For further information on this press
release, visit www.osiskometals.com
or contact:
Robert Wares, CEO, Osisko Metals, tel.
514-940-0670 ext. 111
Email: info@osiskometals.com
www.osiskometals.com
Cautionary Statement 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 potential
acquisition of Gaspé Copper; the timing and ability of the Company
to exercise the option to acquire Gaspé Copper(if at all); the
results of exploration and economic evaluation work completed by
Osisko Metals on Gaspé Copper ad Pine Point; the significance (if
any) of Gaspé Copper and Pine Point being past producers and the
results of such past production; the timing and ability of the
Company to obtain regulatory approvals, including the approval of
the TSX Venture Exchange, for any 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 Company,
at the time such assumptions and estimates were made, and involves
known and unknown risks, uncertainties or other factors which may
cause the actual results, performance or achievements of the
Company 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 ability of the Company and other parties to
negotiate and execute agreements; volatility in the trading price
of common shares of the Company; risks relating to the ability of
the Company to obtain regulatory and shareholder approvals, as
required; ability of Osisko Metals to complete further exploration
activities; property interests; the results of exploration
activities; risks relating to mining activities; the global
economic climate; long-term metal price assumptions; dilution;
environmental risks; changes in the tax and regulatory regime;
community and non-governmental actions; and those risks set out in
the Company's public documents filed on SEDAR (www.sedar.com) under
Osisko Metals' issuer profile. 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 Company cannot guarantee shareholders and
purchasers of securities of the Company 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 Company nor any other person
assumes responsibility for the accuracy and completeness of any
such forward looking information. The Company 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.
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