Osisko Metals Inc. [OM-TSXV, BWMXF-OTC] on Monday October 5 released impressive drilling results from its 100%-owned Pine Point zinc-lead project in the Northwest Territories. The company said assay results have been received from four holes in the area of the O53 deposit (Central Zone) that were drilled to better define the vertical extent of prismatic mineralization in the core of the deposit.
Highlights include 17.50 metres grading 11.53% zinc, and 2.52% lead in drill hole 053-20-PP-001 and 28.80 metres grading 23.90% zinc and 6.24% lead in drill hole 053-20-PP-012.
Investors reacted by sending Osisko shares up 8.1% or $0.03 to 40 cents on volume of 272,500. The shares are currently trading in a 52-week range of 57 cents and 24 cents.
Osisko Metals, which is affiliated with Osisko Gold Royalties Ltd. [OR-TSX, NYSE], is a Canadian exploration and development company with a focus on zinc. Its asset portfolio includes Pine Point and the Bathurst Mining Camp properties in northern New Brunswick.
According to a PEA, Pine Point contains resources that are amenable to open pit and shallow underground development, consisting of an indicated resource of 12.9 million tonnes, grading 6.29% zinc equivalent. Inferred resources are 37.6 million tonnes grading 6.80% zinc equivalent.
That material could support 327 million pounds of average annual zinc and 143 million pounds of lead production over a 10-year mine life. The PEA envisages pre-production capital spending of $555 million, including a $71.2 million contingency.
The PEA is based on a life-of-mine plan consisting of simultaneous exploitation of open pit deposits in the East Mill, Central, North and N204 zones, concurrent with underground operations in the West and Central Zones.
Drilling that began August 30 focused on expanding high-grade mineralization in areas of both prismatic and tabular deposit potential in the Central and East Mill zones.
On Monday, Osisko said assay results from hole 053-20-PP-102 extended the high-grade prismatic mineralization approximately 10 metres below the currently modelled pit boundary in the immediate area of the hole. The 053 deposit has a strike length of 313 metres, an average width of 50 metres and a maximum depth of 63 metres
“We await further assays from other holes around 052,” said Osisko Metals President and COO Jeff Hussey. “Visual estimates in the holes with pending assays confirm that mineralization remains open in the area,” he said. “There is ample potential for new discoveries and continued expansion of resources across the entire Pine Point Project.”