Osisko Metals launches deep porphyry drilling at Gaspe, Quebec
Osisko Metals Inc. [OM-TSX, OMZNF-OTC] has announced initial results from the start of the re-evaluation of the Gaspe Copper Project’s Porphyry Mountain deposit, which was discovered in 1994 by mine site exploration work conducted by Noranda Inc.
Osisko’s Deep Porphyry Exploration Project (DPEX), planned for 2026, will include a new deep drill program, re-analysis of historic drill core, and remodelling of historic information designed to outline and NI 43-101 inferred mineral resource estimate at Porphyry Mountain by year end.
The DPEX program will be conducted separately from the current resource evaluation work at Gaspe Copper in eastern Quebec to provide preliminary information as to the potential of this deposit.
The announcement comes after Osisko closed a $15 million bought deal flow-through share financing consisting of 118 million common shares that will qualify as flow-through shares within the meaning of the Income Tax Act (Canada) priced at $1.27 per flow-through share.
The company said it understands that Agnico-Eagle Mines Ltd. (AEM-TSX, AEM-NYSE) and HudBay Minerals Inc. [HBM-TSX, NYSE], two of its existing strategic investors, along with Toronto-based fund Rosseau Asset Management Ltd., have purchased, as part of a follow-on transaction to the issuance of the flow-through shares, all of the common shares issued under the offering at a price of 85 cents per share for an aggregate purchase price of $10 million.
On Thursday, Osisko shares eased down 5.5% $0.06 to 91 $1.02. The shares trade in a 52-week range of $1.15 and 30.5 cents.
The company is currently focused on its 100%-owned past-producing Gaspe Copper mine, which it acquired from Glencore Canada Corp in Jul, 2023. The project is located in Murdochville in Quebec’s Gaspe Peninsula. Osisko is focused on resource expansion of the Gaspe Copper system, with current indicated mineral resources of 824 million tonnes of grade 0.34% copper equivalent (CuEq) and an inferred resource of 670 million tonnes of 0.38% CuEq.
Thursday’s news release includes re-assaying of core from one historical drill hole (DDH 30-0943) drilled in 2011 by Xstrata in the Porphyry Mountain deposit which is located at depth from the Gaspe Copper mineral resource estimate, approximately 1,100 metres laterally northeast from the centre of the Copper Mountain pit.
Re-assayed historical core from DDH 30-0943 returned 852 metres averaging 0.70% copper, 2.92 gt silver and 0.062% molybdenum (0.95% CuEq) from 998.0 to 1,850 metres, which confirms previously obtained historical results
“Many of the historical holes drilled by previous operators that reached the lower portion of the Porphyry Mountain deposit were stopped in mineralization, demonstrating that the deposit remains open at depth,’’ the company said in a press release.
“We anticipate that the updated GCP Copper Mountain open pit will reach significant depths near the end of its mine life, and this would potentially allow for future ramp access to the deeper, higher-grade DPEX Porphyry Mountain deposit,’’ said Osisko Metals CEO Robert Wares.
The upper limit of the Porphyry Mountain deposit occurs at depths of 1,000 to 1,200 metres.
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