Osisko Metals releases NI 43-101 Pine Point estimate
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
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