Osisko Metals

Overview

Osisko Metals (TSX: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 Quebec has a rapid development plan to begin mining the inferred 456 million tonnes of ore at 0.31 percent sulfide copper. 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 a mineral resource estimate of 15.8 million tonnes 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.

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, the company is well-poised to become a world-class supplier of base metals.

Company Highlights

• Osisko Metals is an exploration and development company focusing on two base metal assets in Canada containing copper and zinc, both past-producing brownfield projects with potential to become significant base metal producers.
• The company’s projects target critical minerlas to aid in the global transition to clean energy and net-zero emissions.
• Osisko’s 100-percent-owned Gaspé Copper project in Quebec has a rapid development plan to begin capitalizing on its 456 million tonnes of ore at 0.31 percent sulfide copper to meet the needs of a growing supply gap.
• 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 of funding for the project.
• Osisko Metals and Appian hold approximately 74.7 percent and 25.3 percent, respectively, of the share capital of Pine Point Mining, which holds a 100 percent interest in the Pine Point project.
• A completed preliminary economic assessment for the Pine Point asset indicates an after-tax IRR of 25 percent and an NPV of C$605 million.
• Defined drilling programs of 29,000 meters at Pine Point and 10,000 meters at the Gaspé copper project
• A management team with expertise throughout the mining industry leads the company toward achieving its goals of supplying the base metals necessary for the clean energy transition.

Key Projects

Gaspé Copper Project

The Gaspé Copper project in Quebec is among the most significant copper development projects in eastern North America. Osisko Metals completed the 100-percent acquisition of the Gaspé Copper Project in July 2023 and has since commenced drilling at the property. Quebec 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 3.1 billion pounds of contained copper at a 0.16 percent sulfide copper cut-off. Osisko Metals believes there is room to expand known deposits with its upcoming drill campaign. Drilling will also ascertain the potential for molybdenum and silver deposits for additional revenue.
• Prolific Past Production: The former Gaspé mines were in production from 1950 to 2002 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 in place to quicken development, including paved road access, hydroelectric power on site and port access via the Saint Lawrence River and Gaspé.
• 2023 Drill Program: Osisko Metals has begun its 2023 drilling program at the Gaspe project spanning 8,000 to 10,000 meters focused on continued infill drilling of the inferred mineral resource of the Mount Copper open pit deposit. The company expects to issue an updated NI43-101 compliant, pit-constrained mineral resource estimate for the Mount Copper deposit in Q4 2023.

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: 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 of funding for the project. Osisko Metals and Appian hold 74.7 percent and 25.3 percent, respectively, of the share capital of Pine Point Mining, which holds a 100 percent interest in the Pine Point project after the successful completion of the joint venture agreement in April 2023.
• 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 metallurgy 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 deleterious elemental content.
• Promising Preliminary Economic Assessment: The 2022 PEA indicates an average annual life-of-mine production of 329 million pounds of zinc and 241 million pounds of lead. Additionally, the 2022 PEA indicates reduced estimated dewatering volume by 30 percent compared to the 2020 PEA.
• Community Support: Osisko Metals has worked hard to earn community support, recently announcing 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 the discovery of the Canadian Malartic bulk tonnage gold mine, which was subsequently developed by Osisko Mining Inc. 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 Inc. Wares has a Bachelor of Science and an honorary doctorate in earth sciences from McGill University.

Jeff Hussey - President and COO

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 Quebec. As a senior scientist with the Mining Technology Group at the Noranda Technology Center 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 and previously served as director of financial reporting and internal controls at Dynacor Gold Mines, and interim chief financial officer at Alderon Iron Ore. Prior to 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.

Robin Adair - Vice-president Exploration

Robin Adair is a professional geologist with over thirty-three years of experience in base metals exploration and development including project acquisition, exploration and discoveries, development and production. Adair spent the majority of his career working for Noranda/Falconbridge, holding several senior positions including senior manager, zinc exploration. During this time, he spent 11 years in the Bathurst camp where he is credited with a number of significant discoveries leading to production. In later years, Adair worked in base metal exploration throughout Quebec and Canada as well as internationally. He was also a key member of the team that discovered and developed the Bracemac-McLead mine in the Matagami camp in Quebec. His technical experience encompasses resource estimation, predictive metallurgical studies, environmental impact assessments, NI 43-101 reporting, negotiation of joint-venture agreements, corporate development and community relations. Adair received his B.Sc. and M.Sc. in geology from the University of Alberta and is a registered professional geologist and qualified person. He is currently an honorary research associate at the University of New Brunswick and works with the mineral deposits group.

Killian Charles - Strategic Advisor

Killian Charles was previously manager of corporate development at Integra Gold, an advanced-stage gold development company, up until its acquisition by Eldorado Gold in July 2017.

Prior to that, he worked as a mining analyst at Industrial Alliance Securities and Laurentian Bank Securities, covering small and mid-cap exploration and production companies. Charles holds a Bachelor of Science, with a major in earth and planetary sciences from McGill University.