MONTREAL, June 25, 2024 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the "Company" or "Osisko Metals") (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) is pleased to announce the 2024 Mineral Resource Estimate Update ("2024 MRE") for the Pine Point Project ("Pine Point" or "the Project"), located near Hay River, in the Northwest Territories of Canada. The 2024 MRE was prepared by BBA Inc. ("BBA") and PLR Resources Inc. and will form the resource base for a Feasibility Study ("FS") that is planned to officially start in Q3 2024. Cut-off grades are based on estimated long-term metal prices, mining costs, metal recoveries, concentrate transport, and smelter costs. The definition drill program supporting the 2024 MRE was executed between 2018 and 2024.
Highlights:
A Technical Report supporting this 2024 MRE will be filed within 45 days.
Robert Wares, CEO and Chairman of the Board, commented, "We are very happy to have met a critical milestone with this MRE that successfully converted the majority of the mineral resources to the Indicated category. With our partner Appian Capital Advisory LLP, we can now rapidly advance Pine Point to the Feasibility Stage following finalization of trade-off studies."
Jeff Hussey, CEO of Pine Point Mining Limited, stated, "This represents the culmination of a multi-year definition drill program that raised the confidence level in the mineral resource base for the Feasibility Study. We will also continue exploring for new deposits and should significant discoveries be made this summer; they will be rapidly incorporated into the final inventory."
The project has significant supporting infrastructure, including access by paved roads, a railhead in Hay River, and an on-site hydroelectric substation. Additionally, the project benefits from one hundred kilometres of pre-existing mine haul roads from the original mining operations. These provide access to most of the deposits in the 2024 MRE. The future concentrator and camp location will be adjacent to the original concentrator area.
The 2024 MRE is divided into five geographic zones, each composed of one or more individual deposits (see Map 1 and Table 1).
Table 1: 2024 Mineral Resource Estimate for Pine Point
Indicated | Inferred | |||||||||||||
Method | Zone | Cut-off Grade | Tonnage | ZnEq | Pb | Zn | Tonnage | ZnEq | Pb | Zn | ||||
(ZnEq %) | (kt) | (%) | (%) | (%) | (kt) | (%) | (%) | (%) | ||||||
Pit Constrained Mineral Resources | Central | 1.41 | 7,400 | 6.21 | 1.50 | 4.91 | 498 | 4.50 | 0.75 | 3.84 | ||||
East Mill | 1.41 | 10,047 | 4.69 | 1.11 | 3.72 | 1,051 | 3.54 | 0.73 | 2.90 | |||||
North | 1.41 - 1.44 | 18,763 | 5.10 | 1.47 | 3.82 | 680 | 4.08 | 0.65 | 3.52 | |||||
N204 | 1.51 | 8,923 | 4.05 | 0.90 | 3.27 | 3,027 | 4.20 | 0.92 | 3.40 | |||||
Underground Mineral Resources | Central | 4.40 | 121 | 6.66 | 0.81 | 5.95 | 63 | 5.62 | 1.44 | 4.37 | ||||
West | 4.10 - 4.40 | 4,215 | 11.21 | 3.69 | 8.00 | 2,934 | 8.44 | 3.55 | 5.35 | |||||
Total Pit Constrained | 1.41 - 1.51 | 45,133 | 4.99 | 1.28 | 3.87 | 5,256 | 4.08 | 0.65 | 3.52 | |||||
Total Underground | 4.10 - 4.40 | 4,336 | 11.08 | 3.61 | 7.94 | 2,997 | 8.38 | 3.51 | 5.33 | |||||
Total Combined | 49,469 | 5.52 | 1.49 | 4.22 | 8,253 | 5.64 | 1.69 | 4.18 |
Notes: | ||
1) | All tonnages are rounded to the nearest thousand tonnes. | |
2) | ZnEq percentages are calculated using metal prices, forecasted metal recoveries, concentrate grades, transport costs, smelter payable metals and charges. | |
3) | Pit-constrained cut-off grades vary primarily due to variable transportation distances to the presumed concentrator location. | |
The weighted average strip ratio for all modelled pit-constrained mineralization is 5.8:1. | ||
Compared to the 2022 Mineral Resource Estimate, there is a decrease in overall tonnage, however grades remain similar. The key factors include:
The in-pit MRE is constrained within pit shells that were developed from a pit optimization analysis that was done with Geovia Whittle 2022 software using the economic and operating parameters presented below:
Table 2: Pit Optimization Parameters
Parameter | Unit | Input | |
Mine Site Costs | |||
Mining Cost ? Overburden1 | C$/t mined | 2.63 | |
Mining Cost - Mineralized Material1 | C$/t mined | 3.85 | |
Mining Cost ? Waste1 | C$/t mined | 3.85 | |
Transport Mineralized Material to Mill | C$/t mined | 0.13 | |
Processing Cost | C$/t milled | 11.00 | |
Power Cost2 | C$/t milled | 5.00 | |
Waste and Water Management Cost | C$/t milled | 2.00 | |
G&A Cost | C$/t mined | 8.50 | |
Recoveries | |||
Average Zinc | % | 87 | % |
Average Lead | % | 93 | % |
Zinc Concentrate Grade | % | 60 | % |
Lead Concentrate Grade | % | 65 | % |
Zinc Concentrate Costs | |||
Transport from mine to Smelter | C$/wmt | 215.80 | |
Smelter Cost | C$/dmt | 266.50 | |
Lead Concentrate Costs | |||
Transport from mine to Smelter | C$/wmt | 261.30 | |
Smelter Cost | C$/dmt | 152.10 | |
Metal Prices | |||
Zinc | US$/lb | 1.30 | |
Lead | US$/lb | 1.00 | |
Exchange Rate | 1.30 |
1 ? Includes dewatering costs
2 - Process plant power cost is included in Power Cost
Table 3: Underground Parameters
Parameter | Unit | Input | |
Mine Site Costs | |||
Mining Cost ? LHS1 | C$/t mined | 54.22 | |
Mining Cost - R&P1 | C$/t mined | 59.99 | |
Processing Cost | C$/t milled | 11.00 | |
Power Cost2 | C$/t milled | 5.00 | |
Waste and Water Management Cost | C$/t milled | 2.00 | |
G&A Cost | C$/t mined | 8.50 | |
Recoveries | |||
Average Zinc | % | 87 | % |
Average Lead | % | 93 | % |
Zinc Concentrate Grade | % | 60 | % |
Lead Concentrate Grade | % | 65 | % |
Zinc Concentrate Costs | |||
Transport from mine to Smelter | C$/wmt | 215.80 | |
Smelter Cost | C$/dmt | 266.50 | |
Lead Concentrate Costs | |||
Transport from mine to Smelter | C$/wmt | 261.30 | |
Smelter Cost | C$/dmt | 152.10 | |
Metal Prices | |||
Zinc | US$/lb | 1.30 | |
Lead | US$/lb | 1.00 | |
Exchange Rate | 1.30 |
1 ? Includes dewatering costs.
2 - Process plant power cost is included in Power Cost
Open Pit and Underground Mineralization
Prismatic-style deposits are defined by greater than 10 metres of greater than 10% zinc + lead, with a distinct vertical aspect of the deposit outline that crosscuts stratigraphy. Vertical thicknesses of mineralization can exceed 70 metres, and they have horizontal cross-sections of less than 200 by 200 metres.
Tabular-style deposits comprise sub-horizontal, stratabound mineralization extending over a significant strike length at varying lateral widths from 50 to 200 metres wide. The strike extent can be in the order of kilometres. Mineralization thickness averages about 3 metres and can range from 1 metre to, very locally, greater than 10 metres.
The open pit portion of the 2024 MRE includes mostly shallow tabular-style deposits, with the remainder being shallow prismatic-style deposits. The underground portion of the 2024 MRE includes deeper prismatic-style mineralization and easily accessible tabular-style mineralization found adjacent to the pit wall boundaries of certain deposits.
Metallurgy
Metallurgical test work is in progress and will provide data to support the flow-sheet design for the process plant, including comminution tests, pre-concentration tests (Ore Sorting and Dense Media Separation (DMS)), flotation tests and dewatering tests. The Company is also investigating concentrations of the critical metals Indium (In), Germanium (Ge), and Gallium (Ga) in the Zinc concentrate produced from flotation tests and in sphalerite mineralization within the various Zones.
2024 Drill Program
A brownfield exploration campaign is underway. The program is focused on discovering high-grade prismatic-style deposits. One drill was active in March and tested three high-potential target areas. Results are pending. Additional targets are ready for drilling, and new targets are continually being developed. The plan is to diligently test these exploration targets this summer.
Induced polarization and magnetic surveys are best suited for geophysical targeting of these types of deposits. Surveys over in situ prismatic-style deposits were used for calibration purposes for these geophysical methods. Targets are generated by using a combination of airborne gravity gradiometry data, LiDAR, AeroTEM survey, structural lineament interpretation, and trend analysis. The search has been expanded to adjacent carbonate formations that the Company believes are fertile for discovery.
Notes Regarding This Mineral Resource Estimate
Mineral Resource Estimate
Other Inputs to the 2024 MRE
About Osisko Metals
Osisko Metals Incorporated is a Canadian exploration and development company creating value in the critical metals space, more specifically copper and zinc. The Company is in a joint venture with Appian Capital Advisory LLP for the advancement of one of Canada's premier past-producing zinc mining camps, the Pine Point Project, located in the Northwest Territories, for which current mineral resources have been calculated for the 2024 MRE (as defined herein). The Project is held under the joint venture company Pine Point Mining Limited. The current mineral resource estimate consists of 49.5Mt grading 5.52% ZnEq of Indicated Mineral Resources and 8.3Mt grading 5.64% ZnEq of Inferred Mineral Resources (in accordance with National Instrument 43-101 ? Standards of Disclosure for Mineral Projects). A technical report will follow this press release within 45 days. The Pine Point Project is located on the south shore of Great Slave Lake in the Northwest Territories, near infrastructure, with paved highway access, an electrical substation, and 100 kilometres of viable haulage roads.
In addition, and outside of the Pine Point JV, the Company acquired in July 2023, from Glencore Canada Corporation, 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 Copper Mountain Expansion Project that hosts a current mineral resource consisting of an Indicated Mineral Resource of 495Mt grading 0.37% CuEq and an Inferred Mineral Resource of 6.3Mt grading 0.37% CuEq (in accordance with National Instrument 43-101 ? Standards of Disclosure for Mineral Projects); see May 6, 2024 news release of Osisko Metals entitled "Osisko Metals announces updated mineral resource estimate at Gaspé Copper ? indicated resource of 495 mt grading 0.37% copper equivalent". Gaspé Copper hosts the largest undeveloped copper resource in Eastern North America, strategically located near existing infrastructure in the mining-friendly province of Québec.
About Appian Capital Advisory
Appian Capital Advisory LLP is a London-headquartered investment advisor to long-term value-focused private capital funds that invest solely in mining and mining-related companies.
Appian is a leading investment advisor in the metals and mining industry, with global experience across South America, North America, Europe, Australia and Africa and a successful track record of supporting companies to achieve their development targets, with a global operating portfolio overseeing nearly 6,300 employees. Appian has a global team of 65 experienced professionals with presences in London, Toronto, Vancouver, Montreal, New York, Lima, Belo Horizonte, Perth, Mexico City and Dubai. The Appian team, through its private capital funds, has a long history of successfully bringing mines through development and into production, having completed 9 mine builds in the last 6 years.
For more information, please visit www.appiancapitaladvisory.com.
For further information on this news release, visit www.osiskometals.com or contact:
Robert Wares, Chairman & CEO of Osisko Metals Incorporated
Email: [email protected]
Phone: 514-861-4441
Cautionary Note Regarding 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 and Gaspé Copper Projects, including, among other things, the results of the 2022 PEA on Pine Point 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; the expected high quality of the metal concentrates; the potential economic impact of the projects on local communities, including but not limited to the potential generation of tax revenues and contribution of jobs; the timing and ability for Projects to reach construction decision (if at all); the estimated costs to take the Projects to construction decision (if at all) and the impact to the Company of the disposition of ownership interest and control in the Pine Point Project, which is a material property of the Company; Gaspé Copper hosting the largest undeveloped copper resource in Eastern North America and Glencore becoming a Control Person of the Company.
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 Pine Point joint-venture parties to fund cash calls to advance the development of the Pine Point Project and pursue planned exploration and development; future spot prices of copper, zinc, lead and molybdenum; the timing and results of exploration and drilling programs; the accuracy of mineral resource estimates; production costs; 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 mining equipment and positive relations with local communities and 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 Exchange nor its Regulation Services Provider (as that term is defined in the policies of the 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.
Map 1: Pine Point Project
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5baec6c5-cf0b-4929-ae56-d25c5b53c0cd
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