Osisko Metals Announces 50,000 Metre Drill Program at Pine Point and Outlines Exploration and Development Program
MONTREAL, QUEBEC–(Marketwired – Feb. 26, 2018) - Osisko Metals Incorporated (the “Company” or “Osisko Metals“) (TSX VENTURE:OM)(FRANKFURT:0B5) is pleased to announce that a 50,000-metre drill program has started at Pine Point, which the Company will fund from its cash balance.
Jeff Hussey, President and CEO, commented: “The Pine Point transaction has closed and it represents an important step for Osisko Metals as we initiate rapid development plans in one of Canada’s once most profitable former producing zinc mining camps. We are planning an aggressive exploration program to confirm, upgrade and expand the portfolio of over 40 historical deposits. Shallow mineralization will allow us to rapidly convert the historical resources into NI43-101 compliant Mineral Resource Estimates and incorporate them into economic studies. Drilling has commenced at Pine Point with detailed planning of an estimated 50,000 metre program in 2018 that is focused on the above-stated objectives. The ongoing 50,000 metre drill program in the Bathurst Mining Camp will continue concurrently and the combined programs are expected to total 100,000 metres of drilling in two premiere zinc mining camps. Our national drilling campaign is one of the largest base metal exploration programs in our junior mining peer group”.
In early February, three drill rigs were mobilized to the Pine Point project and began drilling high priority targets that have poor summer access. The winter drilling will continue over approximately the next five weeks before temporarily stopping for spring break-up. Drilling is expected to resume by May 2018.
The exploration program at Pine Point will also include an airborne geophysical survey planned for Q2/18 including detailed gravity gradiometry and total field magnetics. The favourable carbonate horizon is approximately 200 to 300 metres thick where the majority of the historic drilling targeted zinc-lead mineralization in the upper third of this favorable stratigraphy. Mineralization at Pine Point was characteristically unresponsive to historical geophysical surveys limiting previous exploration programs. Gravity gradiometry, unavailable during the time of these historical surveys, is the only type of geophysical tool that will identify potential targets below or adjacent to the historical deposits. The detailed airborne magnetic survey will be used to map regional faults which are commonly associated to mineralizing conduits. Coincident gravity anomalies located along faults or especially at fault intersections would be high priority drill targets.
Drilling will confirm and delineate existing historical resources as well as investigate new exploration target areas. Confirmation drilling will focus initially on deposits located near the electrical substation, former concentrator site, and Pine Point town site. These deposits, known as Cluster Deposits 1 (MAP+TABLE), were not included in the JDS May 2017 PEA. Exploration drilling will target forthcoming airborne anomalies following a thorough compilation of historical data. See Pine Point Property map for details.
Metallurgical testing, advanced baseline environmental studies and engineering trade-off studies will be performed as part of an aggressive development program concurrent to the large exploration program.
Mr. Robin Adair is the Qualified Person responsible for the technical data reported in this news release. He is a Professional Geologist registered in New Brunswick and is Vice President Exploration of Osisko Metals Incorporated.
About Osisko Metals
Osisko Metals is a Canadian exploration and development company creating value in the base metal space with an emphasis on zinc mineral assets in Canada. The Company has consolidated over 63,000 hectares in the historical world-class Bathurst Mining Camp, located in northern New Brunswick, in which it is focused on upgrading and expanding 6 historical deposits. Osisko Metals also owns a 100% interest in the Pine Point mining camp located in the Northwest Territories, in which there is over 50 Million tonnes of open-pit historical resources with a strong exploration upside. Osisko Metals’ strategy in both mining camps is to develop a multi-deposit asset base that could feed a central concentrator. In Québec, Osisko Metals owns 42,000 hectares that cover 12 grass-root zinc targets that will be selectively advanced through exploration. In parallel, Osisko Metals is monitoring several base metal-oriented peers for projects and acquisition opportunities. Osisko Gold Royalties Ltd (TSX:OR)(NYSE:OR) and Osisko Mining Inc. (TSX:OSK) are significant shareholders of Osisko Metals.
For further information on Osisko Metals, visit www.osiskometals.com
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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. 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. Forward-looking information in this news release includes, but is not limited to, the use of proceeds of the Offering; the timing and ability of the Corporation, if at all, to obtain final approval of the Offering from the TSX Venture Exchange; an exemption being available under MI 61-101 and Policy 5.9 of the TSX Venture Exchange from the minority shareholder approval and valuation requirements for each related party transaction; objectives, goals or future plans; statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; fluctuations in commodity prices; delays in the development of projects; the other risks involved in the mineral exploration and development industry; and those risks set out in the Corporation’s public documents filed on SEDAR at www.sedar.com. Although the Corporation 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 Corporation 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.
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President & CEO
Osisko Metals Incorporated
Director, Investor Relations
Osisko Metals Incorporated