Osisko reports definition drilling success

Hopes to upgrade more resource to indicated for feasibility North of 60 Mining News – November 11, 2022Osisko Metals Inc. Nov. 9 announced the results of its 2022 definition drilling program at its Pine Point project in Canada’s Northwest Territories, a program that aims to upgrade its resource to the indicated category for an upcoming feasibility study.After filing a preliminary economic assessment this year, which included the higher commodity prices and reduced dewatering costs, all intercepts reported fall within, or adjacent to, the currently modeled open pit shells included in the PEA.The PEA outlined a zinc mining operation for Pine Point that generates an after-tax net present value (8% discount) of C$602 million and an internal rate of return of 25%.You can read the full breakdown of the PEA at Updated PEA for Pine Point zinc project in the July 15, 2022 edition of North of 60 Mining News.Given the positive results from the updated PEA, Osisko is carrying out resource upgrade drilling ahead of feasibility-level studies in the second half of 2023.”We are pleased to report more positive definition drilling results as we prepare for the winter drilling campaign, expected to start in January 2023,” said Osisko Metals President and COO Jeff Hussey.The PEA was based on 15.8 million metric tons of indicated resource averaging 4.17% zinc and 1.53% lead; and 47.2 million metric tons of inferred resource averaging 4.43% zinc and 1.68% lead.The future feasibility study will include drilling from 2019 until the first half of the 2023 drill campaign.As for the most recent definition drilling, highlights include:• 13 meters averaging 6.8% zinc and 2.58% lead in hole X71-22-PP-036.• 12 meters averaging 25.8% zinc and 6.84% lead in X71-22-PP-040.• Six meters averaging 12.87% zinc and 1.32% lead in Y65-22-PP-009.• Six meters averaging 9.94% zinc and 13.66% lead in Y68-22-PP-019.A complete breakdown of the drill results is available here.Shallow zinc and lead sulfides were intersected between 18 and 95 meters vertical depth and occurred as continuous, flat-lying, and relatively thin Tabular-style mineralization. Prismatic-style mineralization, with more vertical continuity, was locally encountered within the Tabular-style mineralization.”Following the 2020 and 2022 PEA studies and further drilling, we will initiate the feasibility phase of the project in H2 2023,” added Hussey. “In parallel, we are continuing to advance the environmental assessment process which will continue into 2023.”The remaining assays are pending.

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