Osisko budgets $10 million for drilling in Bathurst camp
Osisko Metals Inc. [OM-TSXV, BWMXF-OTC] said it has budgeted $10 million for exploration work across the Bathurst Mining Camp (BMC) in New Brunswick.
The BMC ranks historically as Canada’s largest and longest operating zinc mining camp. It has been a major producer of base metals ores for over 50 years. Total production reached approximately 136 million tonnes of 12% zinc plus lead before the closure of the Brunswick No. 12 in 2013.
Glencore Canada, a subsidiary of the Swiss metals trading giant Glencore AG, abandoned a significant number of claims in the camp last year, allowing Osisko to acquire key exploration ground.
Osisko is currently the largest landowner in the region, having consolidated over 63,000 hectares in the camp last year. Its land holdings cover significant portions of the strike length that covered both the former Brunswick No. 12 and No. 6 mines. It is ground that offers some of the most prolific geology in the Bathurst camp, the company said in a press release containing details of its 2017 milestones and outlook for 2018.
Osisko shares eased 5.41% or $0.04 to 70 cents on Tuesday. The 52-week range is $1.74 and $0.07.
In a February 12, 2018 news release, the company said it will take a three-pronged approach to maximize success, including 45,000 metres of drilling at historical deposits, and 5,000 metres of drilling at untested earlier targets for a total of 50,000 metres of drilling combined with detailed airborne gravity surveys.
Osisko said a large portion of its effort will be centred on the Key Anacon property, which Osisko acquired in December 2017. The property covers 981 hectares and is located 16 km southeast of the former Brunswick No. 12 Mine.
Key Anacon contains two significant Bathurst-type volcanogenic massive sulphide deposits. Both the Main and East deposits are hosted within the Brunswick Horizon stratigraphy that is similar to the former Brunswick No. 12 Mine host rocks.
The New Brunswick Ministry of Energy, Mines and Petroleum Mineral Occurrence Database reports that the Main deposit contains historical resources that total 1.87 million tonnes, grading 6.93% zinc, 2.63% lead, 0.16% copper and 86 g/t silver in multiple, folded lenses.
Although there was no known production at the site, pre-production development includes a 460-metre shaft, a vent raise, eight development levels and three sub-levels.
Exploration potential is considerable below the deposit at 400 metres, and along strike, the company said.
The Key Anacon East Deposit is located 1.5 kilometres along strike to the northeast from the Main Deposit and it has been intersected by several drill holes. Highlights include a 1993 drill hole by Rio Algom that returned 19.9 metres, grading 7.86% zinc, 3.58% lead, 0.33% copper, and 78 g/t silver within a mineralized interval grading 3.38% zinc, 1.35% lead, 0.75% copper and 40.94 g/t silver over 82.3 metres.
However, Key Anacon’s historical resources are not considered to be in compliance with NI 43-101 standards of disclosure. Drill data pre-dates current regulations and quality control standards.
In total, Osisko Metals will drill a minimum of 12,000 metres at Key Anacon, in addition to drilling the east area surrounding the historical resource. Exploration will be conducted throughout the East Zone.