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Alderan Resources Limited (ASX: AL8) (Alderan or the Company) is pleased to advise that its Stage 1 drilling programme at the New Years copper prospect in the Cactus copper-gold (Cu-Au) district in Utah, USA has intersected high grade copper mineralisation based on visual inspection and pXRF readings on the drill core. Spot pXRF readings reach grades of 45.5% copper between 14.0-14.2m down hole NY2024-DDH2 with the average of three separate readings over this interval being 23.2% copper (see Figure 2). This sits within a 30m interval from 10.8m downhole which contains high pXRF copper grades (see Appendix 3).
HIGHLIGHTS
- Two holes intersected high grade copper mineralisation in Alderan’s Stage 1 drilling programme at New Years copper prospect in the Cactus copper-gold district, Utah.
- Hole NY2024-DDH2 intersected copper mineralisation from 10-40m down hole with averaged pXRF drill core assay intervals up to 23.2% copper. A second 2m zone of mineralisation at 72m downhole has spot pXRF grades up to 28.0% copper.
- Hole NY2024-DDH3 has intersected visible oxide copper mineralisation from surface to a depth of 99m downhole – pXRF assaying in progress.
- Copper mineralisation occurs in tourmaline breccia, the same rock that hosts the neighbouring historical Cactus copper-gold deposit which mined 2.0% copper ore.
- The preliminary logging and pXRF readings suggest that the drill holes may have significantly extended the mineralised zones reported in historical holes NY-6 and NY-2 which intersected 13.7m @ 2.32% Cu within 19.8m @ 1.67% Cu from 22.9m downhole and 10.7m @ 1.52% Cu within 27.4m @ 0.85% Cu from surface respectively.
- Alderan is now completing permitting for a follow-up drilling programme at New Years.
Figure 1: High grade copper mineralisation in tourmaline breccia which contains pXRF grades up to 45.5% copper within the interval 14-16m down hole NY2024-DDH2
Cautionary Note: Visual estimates and pXRF readings described in this release and detailed in Appendix 3 should not be considered a proxy or substitute for laboratory analyses. Laboratory assays are required to determine representative grades and mineralisation intervals reported from geological logging and pXRF readings. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations. Drill core from this programme is being sampled for laboratory analysis at ALS laboratories and results will be reported as soon as they become available.
The Stage 1 drilling at New Years is a three hole (319m) programme aimed at verifying copper mineralisation intersected in historical holes drilled in 1964 and 2002 plus identifying geological controls on mineralisation.1 Stage 2 drilling, which will be dependent on the final Stage 1 results, will focus on extending the mineralisation intersected in Stage 1 and testing geophysical targets. Sampling for lab analysis and detailed geological logging of the holes is still in progress and final design of Stage 2 drill sites is underway. Archaeological inspections required for permitting the proposed Stage 2 drill sites is also underway.
Figure 2: NY2024-DDH2 drill core at 14.0-14.2m downhole. The pXRF copper grade over 3 readings averages 23.2%.
Managing Director of Alderan, Scott Caithness, commented:
“The visual estimates and pXRF spot readings on the core from the second and third holes drilled in the New Years programme are very exciting with both indicating that near surface potentially high grades of copper mineralisation have been intersected. There is also clear evidence that copper rich sulphide mineralisation occurs deeper in the breccia pipe.
“The 30m copper mineralised intersection in Alderan’s hole NY2024-DDH2 from 10m downhole appears to broadly correlate and extend the historical hole NY-6 intersection which was 13.7m @ 2.32% Cu within 19.8m @ 1.67% Cu from 22.9m downhole. Although pXRF assays are not yet available, based on visuals hole NY2024-DDH3 appears to have intersected copper mineralisation to a depth of around 99m from surface – much deeper than historical hole NY-2.
“The Stage 1 drilling programme has been completed with detailed geological logging of the core and sampling for lab analysis now underway. Work has also commenced on final design and permitting for follow-up drilling”
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Osisko Metals: Leading the Charge in Base Metal Investments
Investor Insight
Osisko Metals’ high-quality polymetallic assets present a compelling investment opportunity amid a rapidly expanding critical and base metals market, as North America continues to strengthen its domestic supply.
Overview
Osisko Metals (TSXV:OM) is an exploration and development company focusing on two base metal assets in Canada – Gaspé Copper and Pine Point – targeting copper and zinc, both critical minerals necessary for the global transition to clean energy. These assets are past-producing, brownfield projects of significant potential for future production.
The Gaspé Copper project in Québec has a rapid development plan to begin mining the indicated resource of 495 million tons (Mt) of ore grading 0.37 percent copper equivalent. As the gap between available copper supply and growing demand widens, Osisko Metals is well-positioned to help create and strengthen a domestic supply chain for the North American market.
The company’s Pine Point zinc-lead project in the Northwest Territories contains an indicated mineral resource estimate of 49.5 million tons at 4.2 percent zinc and 1.5 percent lead, in addition to significant inferred resources. Zinc is a necessary mineral for the clean energy transition and has important applications throughout the manufacturing industry. This widespread use of this mineral has analysts cautioning about a looming supply shortage.
A preliminary economic assessment (PEA) completed in 2022 indicates the Pine Point project has the potential to become a world-class, high-grade zinc asset, with an after-tax net present value (NPV) of C$602 million and internal rate of return (IRR) of 25 percent.
In February 2023, Osisko Metals announced a C$100-million investment agreement with Appian Natural Resources Fund III for a joint venture on the Pine Point project. The agreement includes C$75.3 million of funding for the project and up to C$24.7 million in cash payments to Osisko Metals.
Led by a management team with a wide range of expertise throughout the natural resources industry and experience in geology, exploration, corporate finance and corporate administration, Osisko Metals is well-poised to become a world-class supplier of base metals.
Company Highlights
- Osisko Metals (OM) is focused on becoming a significant base metals producer by bringing two past-producing Canadian brownfield assets back into production: the Gaspé Copper project and the Pine Point zinc and lead project.
- The company’s projects target critical minerals to aid in the global transition to clean energy and net-zero emissions.
- OM’s 100-percent-owned Gaspé Copper project in Québec has a rapid development plan to capitalize on its NI 43-101 indicated resource of 495 million tons of ore grading 0.37 percent copper equivalent to meet the needs of a growing supply gap.
- Copper Mountain hosts the largest undeveloped copper asset in Eastern North America with an in-pit indicated resource of 3.25 billion pounds (1.47 million tonnes) of contained copper, not including significant molybdenum (180 million pounds) and silver (28 million ounces) resources.
- The Pine Point project in the Northwest Territories has the potential to become a top-ten zinc producer with high-grade zinc concentrates.
- C$100 million investment agreement with Appian Natural Resources Fund III for a joint venture on the Pine Point project – including C$75.3 million funding for the project – under which Appian can earn an up to 65 percent ownership in Pine Point.
- A completed preliminary economic assessment for the Pine Point asset indicates an after-tax IRR of 25 percent and an NPV (8 percent) of C$602 million.
- The 2024 mineral resource estimate update for the Pine Point project includes indicated mineral resources of 49.5 Mt grading 4.22 percent zinc and 1.49 percent lead and inferred mineral resources of 8.3 Mt grading 4.18 percent zinc and 1.69 percent lead.
- C$100 million bought deal financing with Canaccord Genuity towards advancing its Gaspé copper project to a construction decision and for general corporate purposes.
- A management team with expertise throughout the mining industry leads the company toward achieving its goal of becoming the leading base metal developer in North America by supplying the base metals necessary for the clean energy transition.
Key Projects
Gaspé Copper Project
The Gaspé Copper project in Québec is among the most significant copper development projects in eastern North America. Osisko Metals completed the100-percent acquisition of Gaspé Copper in July 2023 and has since commenced drilling at the property. Québec has a well-known reputation as one of the most mining-friendly jurisdictions in North America, with a long history of copper production.
Project Highlights:
- Significant Mineral Resource Estimate: The current NI 43-101 resource estimate for the asset demonstrates 3.25 billion pounds of contained copper at a 0.15 percent sulfide copper cut-off. The resource also includes significant molybdenum at 180 million pounds and silver at 28 million ounces. Osisko Metals believes there is room to expand known deposits with its upcoming drill campaign.
- Promising Metallurgy: Preliminary testwork delivered average copper recoveries of 92 percent and average molybdenum recoveries of 65 percent, indicating that Gaspé Copper should produce copper and molybdenum concentrates with excellent metal grades and a payable silver credit added to the copper concentrate.
- Prolific Past Production: The former Gaspé mines were in production from 1955 to 1999 and produced more than 100 million tonnes from a combination of open-pit and high-grade underground mines. The growing demand for copper makes reviving the project economically compelling.
- Robust Infrastructure: The project has infrastructure to quicken development, including paved road access, hydroelectric power on-site, and port access via the Saint Lawrence River and the town of Gaspé.
- 2023 Drill Program: Osisko Metals’ 2023 drill program at Gaspé Copper spanned 8,000 to 10,000 meters focused on continued infill drilling of the inferred mineral resource of the Mount Copper open pit deposit.
- Copper Mountain Updated MRE: The updated mineral resource estimate at Copper Mountain, as part of the Gaspé copper project, comprises an open-pit indicated resource of 495 million tons grading 0.37 percent copper equivalent, representing a 30 percent increase in copper-equivalent metal content, as well as a greater than 99 percent conversion rate from inferred to indicated category.
- 2024 Drill Program: The 2024 drill program is underway at Needle and Copper mountains. Approximately 2,600 meters over 11 holes were drilled at Needle Mountain aimed at understanding the potential for identifying more mineral resources around the former Needle Mountain pit. Drilling is ongoing at the Copper Mountain pit, where a 4,500-metre program is aimed at better defining resources in the enriched core of the deposit.
- Water characterization: Surface water characterization of the mine site and surrounding area is continuing. Detailed sampling of the pit waters and experimental fishing downstream from the mine site are planned to better understand the health of fish populations and the potential impacts of pit dewatering.
- Preliminary economic assessment: Scheduled for early 2025.
Pine Point Zinc-Lead Project
The Pine Point asset in the Northwest Territories has the infrastructure in place to help the company move the project toward development. The project has an existing hydroelectric power substation on site, rail access within 60 kilometers, and paved access roads to the site.
Project Highlights:
- Joint Venture: Pine Point Mining Limited, which holds a 100 percent interest in the Pine Point project, is operated under a joint-venture between Osisko Metals and Appian Natural Resources Fund III. This C$100-million investment agreement was finalized in April 2023 and yielded C$75.3 million of funding for the project; in February 2024, Osisko Metals sold an additional 5 percent ownership interest in Pine Point Mining to a subsidiary of Appian Natural Resources Fund III LP for an expected payment of approximately C$8.33 million. In total, Appian has the right to earn up to 65 percent of Pine Point, with OM retaining 35 percent.
- High-grade Clean Concentrates: Pine Point has demonstrated the potential to produce one of the world’s cleanest concentrates for zinc and lead. A recent metallurgical assessment indicates high recoveries of 87 percent for zinc, and 93 percent for lead using XRT sorting and conventional grinding and flotation processes. Additionally, studies indicate low levels of deleterious elements in the concentrates, making them appealing to smelters around the world that seek to increase the overall purity levels of their concentrate inputs.
- Promising Preliminary Economic Assessment: The 2022 PEA indicates an average annual life-of-mine production of 329 million pounds of zinc and 141 million pounds of lead. Additionally, the 2022 PEA indicates reduced estimated dewatering volume by 30 percent compared to the 2020 PEA.
- 2024 Updated Mineral Resource Estimate: Updated MRE for the Pine Point project highlights the following:
- Indicated mineral resources of 49.5 Mt grading 4.22 percent zinc and 1.49 percent lead (5.52 percent zinc equivalent) containing approximately 4.6 billion pounds of zinc and 1.6 billion pounds of lead in situ (undiluted).
- Inferred mineral resources of 8.3 Mt grading 4.18 percent zinc and 1.69 percent lead (5.64 percent zinc equivalent containing approximately 0.7 billion pounds of zinc and 0.3 billion pounds of lead in situ (undiluted).
- Used variable cut-off grades between 1.41 percent and 1.51 percent zinc equivalent for open pit resources and between 4.10 percent and 4.40 percent zinc equivalent for underground resources.
- The project's East Mill, Central and North Zones now contain approximately 36.2 Mt of indicated resources grading 5.22 percent zinc equivalent, or 3.2 billion pounds of zinc and 1.1 billion pounds of lead in situ.
- Community Support: Osisko Metals has worked hard to earn community support in the nearby towns of Hay River, Fort Smith and Fort Resolution, and has also concluded two separate collaboration agreements with local Indigenous communities: Deninu K’ue First Nation and Northwest Territory Metis Nation. These agreements include education, training, employment, and business opportunities. Additionally, a 2017 exploration agreement was signed with K’atl’odeeche First Nation.
Management Team
Robert Wares - CEO
Robert Wares is a professional geologist with more than 35 years of experience in mineral exploration and development. He was responsible for discovering the Canadian Malartic bulk tonnage gold mine, which Osisko Mining subsequently developed into one of Canada’s largest gold producers. Among other awards, Wares was a co-winner of the Prospectors and Developers Association of Canada’s “Prospector of the Year Award” for 2007 and was named, together with John Burzynski and Sean Roosen, as “Mining Men of the Year” for 2009 by the Northern Miner. Wares sits on the board of directors of Brunswick Exploration. Wares has a Bachelor of Science and an honorary doctorate in earth sciences from McGill University.
John Burzynski - Executive Chairman
John Burzynski most recently served as the chairman, chief executive officer and a director of Osisko Mining where he led his team in the discovery, development and sale of the Windfall Gold project to Gold Fields Ltd. for C$2.2 billion. Burzynski has over 35 years' experience as a professional geologist on international mining and development projects. He was one of the three original founders of Osisko Mining which developed and sold the Canadian Malartic mine in 2014 to an Agnico Eagle Mines Limited and Yamana Gold Inc. partnership for C$3.9 billion , and created Osisko Gold Royalties (today a C$5 billion company). Burzynski was a co-winner together with Sean Roosen and Robert Wares of the Prospectors and Developers Association of Canada (PDAC)'s "Prospector of the Year Award" for 2007 and the Northern Miner's "Mining Man of the Year" for 2009; and the "Prospector of the Year Award" for 2024, among numerous other awards. Burzynski holds a Bachelor of Science (Honours) degree in geology from Mount Allison University , and a Master of Science in exploration and mineral economics (MINEX) degree from Queen's University. He is a registered P.Geo. in Québec, a Fellow of the Royal Canadian Geographical Society and an honorary colonel with the Royal Canadian Air Force. He currently serves as chairman and a director of O3 Mining.
Don Njegovan - President
Don Njegovan most recently served as chief operating officer at Osisko Mining prior to its sale to Gold Fields. He was previously a director of St. Andrew Goldfields until it was acquired by Kirkland Lake Gold in 2016 and is currently on the board of directors of Cornish Metals. He was formerly managing director of Global Mining at Scotiabank from August 2010 to June 2014. Njegovan was a Toll Cross Securities Inc. investment banker from June 2005 to July 2010. Njegovan has over 30 years of experience in the mining industry, starting in 1989 for Hudson Bay Mining & Smelting Co. He holds a Bachelor of Science in mining engineering from Michigan Technological University and a Bachelor of Arts from the University of Manitoba.
Blair Zaritsky - Chief Financial Officer
Blair Zaritsky most recently served as the chief financial officer of Osisko Mining. He is a chartered professional accountant and has over 20 years of Canadian public practice experience, with exposure to various types of engagements and clients, gained through managing audit engagements of publicly listed companies traded on the Toronto Stock Exchange, TSX Venture Exchange, and Canadian Securities Exchange. Zaritsky obtained his chartered professional accountant designation in 2003 and holds dual Bachelor of Arts degrees in accounting and economics from Brock University and Western University, respectively. Zaritsky currently serves as a director of STLLR Gold.
Amanda Johnston - Vice President Finance
Amanda Johnston most recently served as the vice-president of finance of Osisko Mining. She is a chartered professional accountant and has over 20 years of experience in the mining industry and audit and assurance groups. Johnston obtained her chartered professional accountant designation in 2013 and holds a Bachelor of Accounting (Honours) Co-Op degree from Brock University. Johnston currently serves as a director of Metalla Royalty & Streaming.
Alexandria Marcotte - Vice President Exploration
Alexandria Marcotte most recently served as vice-president of project coordination of Osisko Mining. She is a professional geologist registered in Ontario with over 15 years of progressive senior level experience working internationally for senior and junior companies. Marcotte holds an Honours Bachelor of Science degree from the University of Toronto and an MBA from the Schulich School of Business. She currently serves as a director of Angel Wing Metals.
Lili Mance - Vice President, Corporate Secretary
Lili Mance has served as the corporate secretary of Osisko Metals since 2018. She also served as vice-president and corporate Secretary of Osisko Mining. She has 30 years of experience in the financial, wealth management and resource industries serving in a legal, compliance and corporate secretarial capacity. Mance spent 18 years with the Dundee group of companies in various increasingly senior level legal and compliance roles and its various public and private subsidiaries. Mance is a member of the Institute of Corporate Directors and has been a member of the Governance Professionals of Canada since 2004.
Jeff Hussey - Director and CEO of Pine Point Mining Limited
Jeff Hussey has 32 years of professional experience in the mining industry. He has worked in both open-pit and underground mine operations at various stages of mine life, from start-up to mine closure, and more recently, working in mineral exploration and development projects. He spent 19 years with Noranda/Falconbridge. His mine operation experience includes work at the Brunswick No. 12 mine, Gaspé Copper mines, the Antamina mine start-up in Peru, as well as the Raglan mine in Northern Québec. As a senior scientist with the Mining Technology Group at the Noranda Technology Centre in 2002, he enhanced his network in the metallurgical research and mining innovation fields. As a consultant since 2007, Jeff Hussey and Associates has helped junior mine development companies by offering exploration, mining, and geo-metallurgical support services. These include Champion Iron Mines, Focus Graphite, Puma Exploration and Starcore International in Mexico. While at Champion Iron Mines, he participated in building significant high-quality iron ore resources, completing feasibility studies and participating in raising more than $70 million for corporate development. While working with Focus Graphite, development responsibilities included a feasibility study and associated work with community stakeholders and governments. Hussey has a Bachelor of Science in geology from the University of New Brunswick.
Anthony Glavac - Chief Financial Officer
Anthony Glavac has more than 17 years of experience in financial reporting, including over 12 years in the mining industry. Since August 2017, Glavac has served as vice-president, corporate controller for Falco Resources. He previously served as director of financial reporting and internal controls at Dynacor Gold Mines, and interim chief financial officer at Alderon Iron Ore. Before joining Alderon, Glavac spent 10 years at KPMG, working with both public and private companies, providing audit, taxation, strategic advisory and public offering services. Glavac is also involved with other public companies in the mining industry.
Ann Lamontagne - Vice-president, Environment and Sustainable Development
Ann Lamontagne is a civil engineer who obtained her doctoral degree in mining environment from Laval University in 2001. She has worked in the mining industry for over 25 years as a consultant for geotechnical, water management, hydrogeology, and environmental projects. She has been involved in the development of several mining projects where her expertise has been invaluable in minimizing environmental risks throughout the mine planning process, from initial design through to closure and reclamation. Lamontagne has also been involved in many R&D projects with mining companies, including Nouveau Monde Graphite, Troilus Gold, and Mason Graphite.
Killian Charles - Strategic Advisor
Killian Charles has been president and CEO of Brunswick Exploration since 2020. Prior to this, he was vice-president, corporate development for Osisko Metals, where he now remains as a special advisor. Charles was a mining analyst at Laurentian Bank Securities and at Industrial Alliance Securities (Broker) for six years. He also worked as a manager of corporate development at Integra Gold, until its acquisition by Eldorado Gold in 2017. Charles received an undergraduate degree in Earth and Planetary Sciences from McGill University.
