Osisko Metals Incorporated (the “
Company” or
“
Osisko Metals”) (TSX-V: OM; OTCQX: OMZNF;
FRANKFURT: 0B51) is pleased to announce that the 2023 drilling
program at the Gaspé Copper Project is underway. The 8,000 to
10,000-metre program will focus on continued infill drilling of the
Inferred Mineral Resource of the Mount Copper open pit deposit (see
details below under “About Osisko Metals”), and will also begin
evaluation of remaining higher-grade (2% to 4% Cu) skarn
mineralization of the underground E Zone (details to be provided in
September).
The company anticipates issuing an updated,
NI43-101 compliant, pit-constrained Mineral Resource Estimate for
the Mount Copper deposit in Q4 2023, which will be based on
historical drilling data from Noranda (until 1998), and more
recently from Xstrata and Glencore Canada (2011 to 2019), as well
as Osisko Metals’ 2022 and 2023 drill results.
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 possible and this
will be the focus of the Company’s resource evaluation in the
context of rising copper prices.
The Company also wishes to announce that a
metallurgical testing program has been launched for the Mount
Copper deposit, which will include approximately 200 batch tests
and 18 lock-cycle tests from eighteen 30-kilogram samples taken
from drill core sample rejects from the 2022 drill program, in
order to establish copper, silver and molybdenum recoveries. In
addition, 16 grinding tests will be performed from corresponding NQ
half core samples.
Finally, the Company also wishes to announce the
start of field work this month for Phase 1 Environmental Assessment
of the Gaspé Copper Project. Field work will focus on the
evaluation of the drainage system at the eastern portion of the
mine site in view of obtaining permits next year to begin
dewatering of the Mount Copper open pit, to allow for in-pit
geotechnical drilling as soon as possible.
Qualified Person
Mr. Jeff Hussey, P. Geo., is the Qualified
Person on the Gaspé Copper Project for Osisko Metals. 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 critical
metals space, specifically copper and zinc. The Company is a joint
venture partner with Appian Natural Resources Fund III LP for the
advancement of one of Canada's premier past-producing zinc mining
camps, the Pine Point project (the "Pine Point Project"), located
in the Northwest Territories, for which the 2022 PEA (as defined
herein) has indicated an after-tax NPV of C$602 million and an IRR
of 25%, based on long-term zinc price of US$1.37/lb and the current
mineral resource estimates that are amenable to open pit and
shallow underground mining. The current mineral resource estimate
in the 2022 PEA consists of 15.7Mt grading 5.55% ZnEq of
indicated mineral resources and 47.2Mt grading 5.94% ZnEq
of inferred mineral resources. Please refer to the technical report
entitled "Preliminary Economic Assessment, Pine Point Project, Hay
River, Northwest Territories, Canada" dated August 26, 2022, a copy
of which is available on SEDAR (www.sedar.com) under Osisko Metals'
issuer profile. 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.
As announced July 17, 2023, the Company
acquired, from Glencore Canada, a 100% interest in the
past-producing Gaspé Copper Mine, located near Murdochville in the
Gaspé peninsula of Québec. The Company is currently focused on
resource evaluation of the Mount Copper deposit that hosts an open
pit-constrained Inferred Mineral Resource (in accordance with
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects) of 456 Mt grading 0.31% Cu (see April
28, 2022 news release). Current infill drilling at Gaspé Copper
aims to expand and convert the Inferred Resource to Measured and
Indicated categories. Gaspé Copper hosts the largest undeveloped
copper resource in Eastern North America, strategically located
near existing infrastructure in the mining-friendly province of
Québec.
For further information on this news
release, visit www.osiskometals.com or contact:
Robert Wares, Chairman & CEO of Osisko
Metals Incorporated
Email:
info@osiskometals.com
www.osiskometals.com
Cautionary Statement on Forward-Looking
Information
This news release contains "forward-looking
information" within the meaning of applicable Canadian securities
legislation based on expectations, estimates and projections as at
the date of this news release. Any statement that involves
predictions, expectations, interpretations, beliefs, plans,
projections, objectives, assumptions, future events or performance
are not statements of historical fact and constitute
forward-looking information. This news release may contain
forward-looking information pertaining to the Pine Point Project
and Gaspé Copper, including, among other things, the results of the
2022 PEA and the IRR, NPV and estimated costs, production,
production rate and mine life; the ability to identify additional
resources and reserves (if any) and exploit such resources and
reserves on an economic basis; Gaspé Copper hosting the largest
undeveloped copper resource in Eastern North America; Glencore
becoming a Control Person of the Company; the high value potential
of Gaspé Copper; and the ability of Osisko Metals to become a
premier base metal development company in Canada.
Forward-looking information is not a guarantee
of future performance and is based upon a number of estimates and
assumptions of management, in light of management's experience and
perception of trends, current conditions and expected developments,
as well as other factors that management believes to be relevant
and reasonable in the circumstances, including, without limitation,
assumptions about: favourable equity and debt capital markets; the
ability and timing for the parties to fund cash calls to advance
the development of the Pine Point Project and pursue planned
exploration and development; future prices of zinc and lead; the
timing and results of exploration and drilling programs at Gaspé
Copper and the Pine Point Project; the accuracy of mineral resource
estimates; production costs; operating conditions being favourable;
political and regulatory stability; the receipt of governmental and
third party approvals; licenses and permits being received on
favourable terms; sustained labour stability; stability in
financial and capital markets; availability of equipment; the
economic viability of the Pine Point Project; and positive
relations with local groups. Forward-looking information involves
risks, uncertainties and other factors that could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Factors that could cause actual results to differ
materially from such forward-looking information are set out in the
Company's public disclosure record on SEDAR (www.sedar.com) under
Osisko Metals' issuer profile. Although the Company believes that
the assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that
such events will occur in the disclosed time frames or at all. The
Company disclaims any intention or obligation to update or revise
any forward- looking information, whether as a result of new
information, future events or otherwise, other than as 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) accept 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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