Osisko Metals Incorporated (the "
Company" or
"
Osisko Metals") (TSX-V: OM;
OTCQX: OMZNF; FRANKFURT: 0B51) is pleased to announce an initial
Inferred Mineral Resource Estimate at Mount Copper as part of the
Gaspé Copper Project, located near Murdochville in the Gaspé
Peninsula of Quebec. This resource is pit-constrained to
mineralization surrounding the past-producing Mount Copper open pit
mine (“Mount Copper Expansion Project”) and uses a base case of
US$3.80/lb copper and a lower cut-off grade of 0.16% sulfide
copper. It was estimated using data from historical drilling
completed between the 1960’s and 2019.
Table 1: Mineral Resource Estimate Base
Case
Classification |
Tonnage |
Grade Copper |
Strip Ratio |
Contained Copper Metal* |
Total (%)* |
Sulfide (%) |
Pounds |
Metric Tonnes |
Inferred |
456 Mt |
0.351 |
0.310 |
1.98 |
3,113,000,000 |
1,412,000 |
- The Independent QP for this Mineral Resource Estimate statement
is Yann Camus, P.Eng., Geological Services of SGS Canada Inc.
- The effective date is April 12, 2022.
- CIM (2014) definitions were followed for Mineral Resource
Estimate.
- No economic evaluation of the Mineral Resource Estimate has
been produced.
- SGS is not aware of any known environmental, permitting, legal,
title-related, taxation, socio-political, marketing or other
relevant issues that could materially affect the Mineral Resource
Estimate.
- All reported figures are rounded to reflect the relative
accuracy of the estimate. Totals may not add up due to
rounding.
- *Total copper includes acid-soluble oxidized copper plus
sulfide copper. Contained copper includes sulfide copper only.
Highlights:
- At 1.41 million
tonnes (3.1 billion pounds) of contained copper, the Mount Copper
Expansion Project hosts the largest untapped copper resource in
Eastern North America, strategically located near existing
infrastructure in the mining-friendly province of Quebec.
- The
mineralization geometry surrounds the former open pit mine with a
strip ratio that is currently estimated at 1.98.
- The Whittle
pit-constrained Mineral Resource Estimate is limited to the sulfide
copper mineralization only that surrounds the Mount Copper
historical open pit. All oxide mineralization is being treated as
zero value waste at the present time.
- The current 30,000 metre drill
program may reduce strip ratio, reduce the oxide/sulfide ratio in
the resource model and hence improve the sulfide grade.
Additionally, potential for by-product silver and molybdenum exists
and will be defined with the current drill program.
Robert Wares, CEO & Chairman of the Board,
commented: “We are extremely pleased to announce a maiden Inferred
Mineral Resource Estimate for the Mount Copper Expansion Project.
This is the first step for our comprehensive strategy at Gaspé
Copper to fully evaluate all potential for economic copper deposits
remaining within this past-producing porphyry copper/skarn complex.
We strongly believe this large-scale asset could become a core
component of Quebec’s critical mineral development strategy that
aims to provide essential metals for global decarbonization
initiatives. Our 30,000-metre drill program has begun with the
objective of refining sulfide/oxide ratios in the deposit and
upgrading the Mineral Resource Estimate to the Measured &
Indicated categories by year end. Furthermore, we will immediately
launch a Preliminary Economic Assessment (PEA) on the Mount Copper
Expansion Project and look forward to rapidly developing this asset
in partnership with Glencore Canada.”
Mineral Resource
Sensitivity
The following table shows the resources reported
at various reasonable cut-off grades, the base case cut-off grade
is 0.16% copper and shown in bold:
Table 2: Mineral Resource Estimate at
Variable Cut-Off Grades
Classification |
SulfideCopper Cut-Off(%) |
Tonnage(Mt) |
Grade Copper |
Copper Tonnage |
Total (%) |
Sulfide (%) |
Pounds |
Tonnes |
Inferred |
0.12 |
533 |
0.326 |
0.285 |
3,353,000,000 |
1,521,000 |
0.14 |
498 |
0.337 |
0.296 |
3,253,000,000 |
1,475,000 |
0.16 |
456 |
0.351 |
0.310 |
3,113,000,000 |
1,412,000 |
0.18 |
414 |
0.366 |
0.324 |
2,957,000,000 |
1,341,000 |
0.20 |
374 |
0.381 |
0.338 |
2,788,000,000 |
1,265,000 |
0.30 |
193 |
0.473 |
0.422 |
1,799,000,000 |
816,000 |
0.40 |
90 |
0.572 |
0.514 |
1,016,000,000 |
461,000 |
0.50 |
43 |
0.656 |
0.590 |
555,000,000 |
252,000 |
Same footnotes as Table 1 apply to this
table.
Potential for Additional Mineral
Resources at Gaspé Copper
End-of-mine, existing historical mineral
resources at Gaspé Copper that are not NI43-101 compliant are
reported in Noranda/Falconbridge Annual Reports 1998-2000, Quebec
government mining assessment reports and in Hussey & Bernard
(SME Aug 1998, p. 36-44). Regulatory authorities require that
disclosure of historical resources by an issuer must be referenced,
along with other requirements, by publicly available technical
reports, and such reports on the historical estimates are not
available. The following disclosure therefore describes the
remaining mineral deposits and areas of mineralization at Gaspé
Copper and the Company believes that these offer excellent
potential for additional resources. Osisko Metals’ strategy at the
present time is to focus on the economic viability of the Mount
Copper sulfide resource only, and if this can be achieved,
evaluation of the potential resources offered below will follow
with additional drill programs.
Deep bulk-tonnage target at Porphyry
Mountain
The deep-seated Porphyry Mountain deposit was
discovered by Noranda Inc. in 1994. Porphyry-style stockwork Cu-Mo
mineralization forms a roughly vertical, cylindrical deposit
(approx. 800 m high, 400 m long and 350 m wide) that is located
deep under Porphyry Mountain (located 1250 metres NE of the center
of the Mount Copper open pit), at depths between 1200 and 2000
metres. The deposit remains open at depth. Approximately 24
subvertical holes were drilled into the deposit between 1994 and
2011, and significant intersections include:
Table 3: Significant historical drill
intersections, Porphyry Mountain
Vertical Drill Hole |
From- To (m) |
Length (m) |
Cu % |
Mo % |
30-891 |
1144.8--1737.4 |
592.6 |
0.71 |
0.036 |
30-899 |
1120.7--1834.9 |
714.2 |
0.61 |
0.034 |
30-900 |
1269.0--1728.8 |
459.8 |
0.66 |
0.026 |
30-901 |
1207.0--1534.7 |
327.7 |
0.90 |
0.053 |
30-903 |
1264.0--1581.6 |
317.6 |
0.89 |
0.047 |
30-907 |
1488.0--1590.4 |
102.4 |
0.68 |
0.042 |
30-912 |
1471.6--1833.4 |
361.8 |
0.35 |
0.016 |
30-915 |
1362.5--2096.0 |
733.5 |
0.76 |
0.029 |
30-916 |
1211.6--1710.5 |
498.9 |
0.78 |
0.035 |
30-920B |
1294.5--1817.2 |
522.7 |
0.67 |
0.071 |
30-923 |
1454.8--1757.5 |
302.7 |
0.58 |
0.033 |
30-927 |
1178.1--1563.6 |
385.5 |
0.84 |
0.053 |
30-928 |
1222.9--1719.7 |
496.8 |
0.69 |
0.073 |
30-943 |
1028.0--1850.0 |
822.0 |
0.94 |
0.071 |
Oxide stockpiles
Previous mining at the Mount Copper open pit
resulted in the stockpiling of oxidized copper mineralization
approximately 1100 metres to the NW of the center of the open pit.
The stockpiles cover an area measuring 470,000 square metres with
an average height of 25 metres. This material is potentially
amenable to heap leaching and SX-EW recovery techniques and could
eventually represent a low-cost opportunity for additional copper
production if a heap leach operation can be successfully
permitted.
High-grade Residual Mineralization Near
Past Underground Operations
Residual underground skarn mineralization still
remains in the form of pillars in the mined portion of the C Zone
(grades of 1.5% to 2% copper), as well as massive sulfide/skarn
mineralization in the deeper E Zone (grades of 3% to 4% copper)
with residual resources reported in the E-38 zone. Furthermore,
significant historical drill intersections scattered within the
1600-metre-wide E Zone skarn aureole received limited follow-up and
offer potential for further resource definition (reported
intersections reflect true thicknesses):
Table 4: Significant historical drill
intersections, E Zone, outside mined-out areas
Vertical Drill Hole |
From- To (m) |
Length (m) |
Cu % |
Vertical Drill Hole |
From- To (m) |
Length (m) |
Cu % |
30-787 |
836.7-839.7 |
3.0 |
2.08 |
30-892 |
855.8-859.6 |
3.8 |
3.87 |
30-832 |
1010.1-1031.7 |
21.6 |
2.04 |
30-901 |
1302.1-1313.7 |
11.6 |
3.13 |
30-844 |
1115.6-1126.3 |
10.7 |
4.01 |
30-922 |
1043.9-1053.8 |
9.9 |
4.96 |
30-886 |
1314.7-1329.6 |
14.9 |
3.08 |
30-927 |
1332.6-1350.3 |
17.7 |
1.24 |
Parameters and criteria used for the
Mineral Resource Estimate
-
General Whittle Pit Parameters Used for the Mineral Resource
Estimate include:
Parameter |
Value |
Unit |
Copper Price |
$3.80 |
US$ per pound |
Sell Cost |
$0.08 |
US$ per pound |
In-Pit Mining Cost |
$1.90 |
US$ per tonne mined |
Processing Cost + Smelter and Transport |
$7.10 |
US$ per tonne milled |
General and Administrative |
$1.00 |
US$ per tonne milled |
Overall Pit Slope - Rock |
50 |
Degrees |
Copper Recovery |
85 |
Percent (%) |
Mining loss / Dilution (open pit) |
5 / 3 |
Percent (%) / Percent (%) |
Waste Avg. Specific Gravity |
2.73 |
Tonnes/cubic metre |
Mineralization Specific Gravity (variable) |
Avg. 2.73 |
Tonnes/cubic metre |
Block Size |
20 x 20 x 15 |
Length, Width, Height (m) |
- The
database used in the estimate (in the vicinity of Mount Copper)
contains approximately 3,353 drill holes; 283 were deemed
unreliable and were rejected. A subset of 641 drill holes were used
for the Mineral Resource Estimate with associated composites
generated in them. Drill hole data included Noranda (1998 and
earlier), Xstrata (2011-2012) and Glencore Canada (2019).
Verification of the data has been possible mostly by verifying the
coherence of the information but not its correctness; original logs
and laboratory certificates were only available for 2011, 2012 and
2019 drill holes.
- Composites of
4 metres were created inside the mineralization volume. A total of
27,895 composites were generated with an average grade of 0.34 %Cu;
the composites were capped at 1.80 % total Cu (the copper contained
in both sulfides and oxides).
- Cut-off
grades are based on a long-term copper price of US$3.80 per pound
and a copper recovery of 85%.
- Pit
constrained Mineral Resources are reported at a cut-off grade of
0.16 %Cu in sulfide within a conceptual pit shell for the base
case.
- Specific
gravity values were estimated using data available in the
historical drill holes; the average value is 2.73 tonnes/cubic
metre.
- The deepest
in-pit Mineral Resources reported are at a depth of approximately
600 metres.
- Drilling
data was obtained from Osisko Metals and Glencore Canada
Corporation. SGS modelled the mineralization on benches and then
meshed it as a volume. The maximum distance between drillholes in
the pit volume is approximately 350 metres.
- A block
model was created with blocks of 20x20x15 m under the current
topographic surface and inside the modeled mineralization. Both
ordinary kriging (OK) and inverse square distance (ID2)
interpolation methods were tested, resulting in no material
difference in the Mineral Resource Estimates. Kriging was retained
for this estimation.
- The
whole database reports total copper, and soluble copper data that
are only available for 32 drill holes drilled between 2011 and
2019. It was estimated for the purposes of this report that only
the copper contained in sulfides could have economical potential.
Therefore, the soluble copper as oxides was removed and significant
oxidized zones are all located in the south-west portion of the
deposit. The proportion of the copper contained in oxides relative
to sulfides is highly correlated to the depth of the
mineralization. Therefore, depth from original topographic surface
was modeled and used to estimate the percentage of copper contained
in oxides for the whole resource estimation.
As recent (post-2011) drilling is almost
entirely located in one area of the pit-constrained resource, it is
SGS’ recommendation that additional infill drilling be completed
across the entire pit volume to 1) improve the oxide model and 2)
allow for conversion from the Inferred category to the Measured and
Indicated categories.
Cautionary Statement Regarding Mineral
Resources
The mineral resources disclosed in this press
release conform to NI43-101 standards and guidelines and were
prepared by independent qualified persons. The above-mentioned
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. An Inferred Mineral
Resource has a lower level of confidence relative to a Measured or
Indicated Mineral Resource and constitutes an insufficient level of
confidence to allow conversion to a Mineral Reserve. It is
reasonably expected, but not guaranteed, that the majority of
Inferred Mineral Resources could be upgraded to Measured or
Indicated Mineral Resources with additional drilling. The National
Instrument 43-101 Technical Report, including the mineral resources
for the Gaspé Copper Project contained in this news release, will
be delivered and filed on SEDAR by Osisko Metals within 45 days of
the date of this news release.
Qualified Person
The Mineral Resource Estimate and technical
information in this news release has been prepared and approved by
Yann Camus, P.Eng., Geological Services of SGS Canada, an
independent Qualified Person in accordance with National Instrument
43-101 standards. The Mineral Resource Estimate was reviewed
internally by Guy Desharnais, Ph.D., P. Geo., non-independent
Qualified Person in accordance with National Instrument 43-101
standards. Technical information relating to other copper deposits
at Gaspé Copper has been reviewed by Jeff Hussey, P. Geo. and
President of Osisko Metals, a non-independent Qualified Person in
accordance with National Instrument 43-101 standards.
About Osisko Metals
Osisko Metals Incorporated is a Canadian
exploration and development company creating value in the critical
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, 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.
Furthermore, the Company has an option to
purchase, from Glencore Canada, a 100% interest in the
past-producing Gaspé Copper property located near Murdochville in
the Gaspé peninsula of Quebec (see details in March 28, 2022 press
release 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 on 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 intended as
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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