Osisko Metals set for PEA update in Manitoba

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Osisko Metals Inc. [OM-TSXV, BWMXF-OTC] has released initial results from an in-fill and hydrogeological drill program at its Pine Point project in the Northwest Territories which is expected to be a producer of ultra-clean zinc concentrate.

Results released after the close of trading on September 24, 2021, are from the Z60 deposit in the North Trend. When drilling resumed in July, 2021, the company said it was planning to complete a 13,000-metre summer-fall program designed to support the conversion of current inferred mineral resources into the indicated category. An updated preliminary economic assessment is due in the first quarter of 2022.

Mineralization surpassed expectations with development of local prismatic-style mineralization in drill hole Z60-21-PP-001 which intersected 4.5 metres grading 17.95% zinc, 2.25% lead (20.20% zinc plus lead) in prismatic-style mineralization, and drill hole Z60-21-PP-006 which intersected 10.70 metres grading 10.50% zinc and 0.25% lead (10.75% zinc plus lead) in a prismatic build-up of mineralization.

The higher-grade prismatic-style intercepts and neighboring tabular mineralization are associated with a fault trending south-west to north-east. Other holes returned grades consistent with previous historical intercepts.

The company said these results provide infill spacing required for the Z60 deposit to meet the indicated resource category threshold as defined in the 2020 PEA and confirmed historical data.

Osisko shares were unchanged at 38.5 cents and trade in 52-week range of 52 cents and 35 cents.

Osisko Metals, which is affiliated with Osisko Gold Royalties Ltd. (OR-TSX, OR-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 preliminary economic assessment (PEA) the Pine Point project 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. On top of that is an inferred resource of 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 has focused on expanding high-grade mineralization in areas of both prismatic and tabular deposit potential in the Central and East Mill zones.

“The presence of locally occurring shallow-prismatic-style mineralization adds more upside to our definition drilling program and I look forward to regular results now that drilling has resumed,’’ said Osisko President and Chief Operating Officer Jeff Hussey.

Regarding ongoing hydrogeological studies, we will be releasing our initial findings in October,” he said. “We anticipate significantly reduced operating and sustaining capital expenditures for water management, relative to the base case study concept in the 2020 PEA.’’


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