Osisko Me­tals re­leases NI 43-101 Pine Point es­ti­mate

Stockwatch Daily - - MINES & METALS - Mr. Jeff Hussey re­ports

OSISKO ME­TALS Inc. has re­leased an up­dated in­ferred min­eral re­source es­ti­mate (MRE) for its 100-per­cent-owned Pine Point project, lo­cated near Hay River, in the North­west Ter­ri­to­ries of Canada. The MRE was pre­pared by BBA Inc. and in­cor­po­rates an open-pit min­ing sce­nario with cut-off val­ues based on es­ti­mated long-term me­tal prices, min­ing costs, me­tal re­cov­er­ies, con­cen­trate trans­port and smelter costs.


• The Pine Point in-pit in­ferred MRE stands at 38.4 mil­lion tonnes grad­ing 4.58 per cent zinc and 1.85 per cent lead (6.58 per cent zinc equiv­a­lent) con­tain­ing ap­prox­i­mately 3.9 bil­lion pounds of zinc and 1.6 bil­lion pounds of lead.

• The pit-con­strained re­source is based on op­ti­mized pit shells us­ing a zinc price of $1.10 (U.S.)/pound and a lead price of 90 U.S. cents per pound. The lower cut-off grade varies across t he prop­erty and ranges be­tween 1.70 per cent ZnEq and 2.00 per cent ZnEq.

• The in-pit in­ferred MRE is di­vided into five ge­o­graphic zones, each zone com­posed of in­di­vid­ual de­posits. The MRE in­cor­po­rates 42 new pits and ex­pan­sions of two his­tor­i­cal pits.

• Pine Point’s main core (East Mill, Cen­tral and North zones) con­tains ap­prox­i­mately 23.4 mil­lion tonnes grad­ing 6.30 per cent ZnEq or 2.3 bil­lion pounds of zinc and 900 mil­lion pounds of lead.

• At the de­posit scale the grade and ton­nage show lit­tle vari­abil­ity at lower cut-off grades. The in-pit MRE is very ro­bust and is rel­a­tively in­sen­si­tive to me­tal prices.

• Osisko Me­tals will con­tinue the in­fill cam­paign in early 2019 and be­gin a sub­stan­tial ex­plo­ration pro­gram in mid-2019 to test the ex­cel­lent brown­field min­eral po­ten­tial along the en­tire 65-kilo­me­tre Pine Point trend. A new MRE is planned for the sec­ond half of 2019 with the aim of con­vert­ing a sig­nif­i­cant pro­por­tion of cur­rent re­sources to the in­di­cated cat­e­gory.

Jeff Hussey, pres­i­dent and chief ex­ec­u­tive of­fi­cer of Osisko Me­tals, com­mented: “This MRE is ro­bust and con­firms that Pine Point is one of the most sig­nif­i­cant un­de­vel­oped zinc-lead pro­jects in the base me­tal sec­tor with 5.5 bil­lion pounds of com­bined in-pit zinc and lead re­sources. The shal­low min­er­al­iza­tion is

unique among zinc pro­jects glob­ally and Pine Point still of­fers ex­cel­lent ex­plo­ration po­ten­tial both at depth and along the project’s 65 km strike length.

“There is a de­pleted pipe­line of zinc re­sources glob­ally and we be­lieve Pine Point will place Osisko Me­tals at the fore­front of ju­nior base me­tal ex­plo­ration and devel­op­ment com­pa­nies.”

(See OM Ta­ble 1 on page 22)

The in­ferred min­eral re­source es­ti­mate is con­strained with pit shells that were de­vel­oped from a pit op­ti­miza­tion anal­y­sis us­ing the eco­nomic and op­er­at­ing pa­ram­e­ters pre­sented in the as­so­ci­ated ta­ble.

(See OM Ta­ble 2 on page 22)


Over­all me­tal­lur­gi­cal re­cov­er­ies of 83.1 per cent for zinc and 87.8 per cent for lead were es­ti­mated from re­cent pre­lim­i­nary bench-scale flota­tion tests, in­clud­ing dry pre­con­cen­tra­tion ore sorter test­work (full pro­gram re­sults to be dis­closed in the first quar­ter of 2019) aimed at re­duc­ing haulage and grind­ing costs.

Ad­di­tional in­fill drilling com­pleted up to the date of this press re­lease and not in­cluded in this in­ferred MRE con­sists of 579 drill holes to­talling 40,102 me­tres of drilling. The ob­jec­tive of this con­tin­u­ing pro­gram is to up­grade the in­ferred min­eral re­source to the in­di­cated cat­e­gory by de­creas­ing drill spac­ing to 30 me­tres from the cur­rent av­er­age drill spac­ing of 40 to 60 me­tres. The com­pany ex­pects to drill 900 ad­di­tional holes to­talling ap­prox­i­mately 49,000 me­tres in the re­main­der of 2018 and in 2019 to meet this ob­jec­tive. The drill

data­base will be fur­ther strength­ened by in­cor­po­rat­ing the re­cent li­dar to­po­graphic sur­vey.

A sep­a­rate brown­field ex­plo­ration cam­paign will in­ves­ti­gate high-po­ten­tial tar­get ar­eas fol­low­ing the anal­y­sis of the planned air­borne grav­ity sur­vey that will com­ple­ment site-wide com­pi­la­tion of his­tor­i­cal data sets and the re­cent li­dar to­po­graphic sur­vey.

We seek Safe Har­bor.

Mike Caswell con­densed this news re­lease ([email protected]­watch.com).

John Fe­liks Burzyn­ski, Claude R Char­ron, Paul An­drew Du­mas, Joseph Jef­frey Hussey, Luc Les­sard, Amy Joy Sa­tov, Robert Per­ci­val Wares

(OM) Shares: 126,312,828

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