Osisko Metals Announces New Drill Results at Pine Point With up to 33.00 Metres Grading 11.26% Zinc and 2.71% Lead

Osisko Metals Announces New Drill Results at Pine Point With up to 33.00 Metres Grading 11.26% Zinc and 2.71% Lead

 

Osisko Metals Incorporated (the " Company " or " Osisko Metals ") ( TSX-V: OM ; OTCQX: OMZNF ; FRANKFURT: 0B51 ) is pleased to announce initial assay results from its 2023 drilling program at Pine Point Project, located in the Northwest Territories, Canada. The reported results are from the X25 deposit, a prismatic-style deposit with a tabular-style apron in the West Zone.

 

Drilling was conducted as part of the Pine Point Joint Venture's larger 2023 definition drilling program that is designed to achieve an average drill spacing of approximately 30 metres within the current modelled mineral resources reported in the 2022 PEA deposits. This spacing is intended to upgrade resources presently classified as Inferred to the Indicated category.

 

  Drill Hole Assay Composite Highlights:  

 
  • X25-23-PP-003: 14.00 metres, grading 8.21% Zn and 5.30% Pb (13.51% Zn+Pb)  
  •  
  • X25-23-PP-004: 33.00 metres, grading 11.26% Zn and 2.71% Pb (13.97% Zn+Pb)  
  •  
  • X25-23-PP-028: 10.96 metres, grading 5.84% Zn and 0.75% Pb (6.58% Zn+Pb)  
  •  
  • X25-23-PP-034: 6.98 metres, grading 21.09% Zn and 3.24% Pb (24.33 Zn+Pb)  
  •  
  • X25-23-PP-038: 8.98 metres, grading 11.42% Zn and 1.79% Pb (13.21% Zn+Pb)  
  •  
  • X25-23-PP-039: 7.98 metres, grading 24.84% Zn and 5.36% Pb (30.20% Zn+Pb)  
  •  

All mineralization occurs near surface between 67.95 and 195.00 metres vertical depth from surface and occurs as sphalerite and galena associated with intensely altered hydrothermal dolomite and limestone.

 

Robert Wares, CEO and Chairman of the Board, commented: "We are excited to announce these initial results from our 2023 Definition Drilling program. Integrating these drill results will allow for improvement of our mineral resource base that will be used in the upcoming Feasibility Study ("FS") being initiated in H2 2023. Currently several definition studies are underway to perform trade-offs in order to freeze the Project's design concept in preparation for the FS. We are also happy to report our progress towards permitting initiatives and potential construction of a mine at Pine Point with our JV partners Appian Capital Advisory LLP. Meetings with local communities and regulators are ongoing to keep everyone up to date regarding the permitting process as we advance the Pine Point Project."

 

  Table 1: Drill Hole Composites.

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
  Hole Name  

  Zone  

  Deposit  

  From    To    Drill Width    True Width    Zn    Pb    Zn+Pb  
  (m)    (m)    (m)    (m)    %    %    %  
X25-23-PP-001 W1 X25 161.00 174.00 13.00 12.99 2.62 0.30 2.92
and W1 X25 180.00 181.00 1.00 1.00 2.66 0.39 3.05
and W1 X25 186.00 187.50 1.50 1.50 9.17 1.91 11.08
X25-23-PP-002B W1 X25 161.00 174.00 13.00 12.98 8.41 4.00 12.40
  X25-23-PP-003    W1    X25    157.00    171.00    14.00    14.00    8.21    5.30    13.51  
and W1 X25 180.00 183.00 3.00 3.00 2.03 0.52 2.55
  X25-23-PP-004    W1    X25    162.00    195.00    33.00    33.00    11.26    2.71    13.97  
X25-23-PP-005 W1 X25 103.00 104.00 1.00 1.00 1.93 0.60 2.52
and W1 X25 134.00 135.00 1.00 1.00 1.71 0.58 2.29
and W1 X25 140.00 145.00 5.00 4.99 15.94 2.66 18.60
and W1 X25 147.00 156.00 9.00 8.99 9.28 6.53 15.80
and W1 X25 159.00 163.00 4.00 3.99 7.13 0.49 7.62
X25-23-PP-007 W1 X25 67.95 68.45 0.50 0.50 8.42 2.16 10.58
X25-23-PP-010 W1 X25 123.00 124.00 1.00 1.00 2.87 0.55 3.42
and W1 X25 134.00 139.00 5.00 4.99 3.90 0.22 4.12
X25-23-PP-011 W1 X25 132.00 135.00 3.00 3.00 2.55 1.02 3.58
and W1 X25 138.00 141.00 3.00 3.00 4.00 0.29 4.30
X25-23-PP-012 W1 X25 112.00 113.00 1.00 1.00 3.36 0.78 4.14
and W1 X25 132.00 135.00 3.00 3.00 2.62 0.65 3.27
and W1 X25 138.00 139.50 1.50 1.50 2.44 0.59 3.03
X25-23-PP-013 W1 X25 116.00 122.00 6.00 5.99 2.51 7.38 9.88
and W1 X25 125.00 126.00 1.00 1.00 7.52 0.74 8.26
and W1 X25 133.00 140.00 7.00 6.99 2.12 0.14 2.26
X25-23-PP-015 W1 X25 113.00 115.00 2.00 2.00 2.00 0.68 2.68
and W1 X25 121.00 122.00 1.00 1.00 3.02 2.43 5.45
and W1 X25 124.00 132.00 8.00 7.99 4.20 1.19 5.40
X25-23-PP-016 W1 X25 126.00 133.00 7.00 6.99 6.58 0.48 7.06
and W1 X25 138.00 140.00 2.00 2.00 4.09 0.01 4.10
X25-23-PP-018 W1 X25 131.00 133.00 2.00 1.99 9.04 1.47 10.51
X25-23-PP-019 W1 X25 55.00 59.00 4.00 4.00 1.83 0.79 2.62
and W1 X25 96.00 100.00 4.00 4.00 5.92 3.68 9.60
and W1 X25 104.00 105.00 1.00 1.00 7.47 0.82 8.29
and W1 X25 107.00 108.00 1.00 1.00 1.79 0.59 2.38
and W1 X25 117.00 118.00 1.00 1.00 3.11 0.24 3.35
and W1 X25 120.00 125.00 5.00 4.99 4.29 0.96 5.25
and W1 X25 127.00 128.00 1.00 1.00 2.03 0.60 2.63
X25-23-PP-020 W1 X25 104.00 105.00 1.00 1.00 5.36 2.07 7.43
X25-23-PP-021 W1 X25 133.00 137.00 4.00 3.99 3.61 1.65 5.26
X25-23-PP-022 W1 X25 124.00 125.00 1.00 1.00 1.97 0.73 2.69
and W1 X25 140.00 141.00 1.00 1.00 3.36 0.02 3.38
X25-23-PP-023 W1 X25 123.00 127.00 4.00 3.99 1.63 0.55 2.18
and W1 X25 129.00 130.00 1.00 1.00 1.59 0.57 2.17
and W1 X25 132.00 133.00 1.00 1.00 2.10 1.05 3.15
X25-23-PP-024 W1 X25 115.00 116.00 1.00 1.00 1.58 0.46 2.04
and W1 X25 135.00 138.00 3.00 2.99 16.40 1.04 17.44
X25-23-PP-025 W1 X25 115.00 116.00 1.00 1.00 6.72 0.82 7.54
and W1 X25 125.00 126.00 1.00 1.00 1.74 0.35 2.09
X25-23-PP-026 W1 X25 95.00 100.00 5.00 5.00 4.25 1.49 5.74
and W1 X25 119.00 126.00 7.00 7.00 6.17 0.89 7.06
  X25-23-PP-028    W1    X25    118.00    129.00    11.00    10.96    5.84    0.75    6.58  
and W1 X25 132.00 135.00 3.00 2.99 9.39 1.10 10.50
X25-23-PP-029 W1 X25 122.00 123.00 1.00 1.00 3.24 1.24 4.47
X25-23-PP-030 W1 X25 117.00 118.00 1.00 1.00 2.18 0.38 2.56
and W1 X25 120.00 122.00 2.00 2.00 3.81 0.47 4.28
and W1 X25 126.00 132.00 6.00 5.99 6.01 1.46 7.47
and W1 X25 138.00 141.00 3.00 3.00 4.77 0.28 5.06
X25-23-PP-031 W1 X25 110.00 118.50 8.50 8.48 2.90 0.18 3.08
and W1 X25 122.00 124.00 2.00 2.00 3.11 0.55 3.66
and W1 X25 132.00 133.50 1.50 1.50 1.73 0.29 2.02
and W1 X25 137.00 138.00 1.00 1.00 2.95 0.61 3.56
and W1 X25 142.50 146.00 3.50 3.49 11.02 0.22 11.25
X25-23-PP-032 W1 X25 107.00 108.00 1.00 1.00 0.00 2.23 2.23
and W1 X25 116.00 118.00 2.00 2.00 1.39 3.40 4.79
and W1 X25 120.00 132.00 12.00 11.99 3.23 1.92 5.15
X25-23-PP-033 W1 X25 126.00 129.00 3.00 2.99 2.27 7.78 10.05
and W1 X25 138.00 141.00 3.00 2.99 10.35 2.19 12.54
  X25-23-PP-034    W1    X25    137.00    144.00    7.00    6.98    21.09    3.24    24.33  
and W1 X25 148.00 149.00 1.00 1.00 3.04 0.19 3.23
X25-23-PP-037 W1 X25 132.00 133.00 1.00 1.00 25.90 5.15 31.05
and W1 X25 136.00 139.00 3.00 2.99 8.26 1.12 9.38
  X25-23-PP-038    W1    X25    135.00    144.00    9.00    8.98    11.42    1.79    13.21  
  X25-23-PP-039    W1    X25    133.00    141.00    8.00    7.98    24.84    5.36    30.20  
X25-23-PP-040 W1 X25 138.00 142.00 4.00 3.99 19.39 3.03 22.41
X25-23-PP-041 W1 X25 138.00 140.00 2.00 2.00 12.85 0.77 13.62
 

Drill holes not reported in this table with a collar location tabulated in Table 2 contained no significant assay results.

 

  Qualified Person  

 

Mr. Robin Adair is the Qualified Person and the Vice President of Exploration for Osisko Metals Incorporated. He is responsible for the technical data reported in this news release and is a Professional Geologist registered in the Northwest Territories.

 

  Quality Assurance / Quality Control  

 

 Osisko Metals adheres to a strict QA/QC program for core handling, sampling, sample transportation, and analyses. Drill core samples from the Pine Point project area are securely transported to its core facility on-site, where they are logged and sampled. Samples selected for assay are shipped to ALS Canada Ltd.'s preparation facility in Yellowknife. Pulps are analyzed at the ALS Canada Ltd. facility in North Vancouver, BC. All samples are analyzed by four acid digestion followed by both ICP-AES and ICP-MS for a multi-element suite with a 1% upper detection limit for base metals. Samples reporting over 1% for Zn and 1% for Pb are analyzed by assay grade, four acid digestion, and ICP-AES analysis with an upper detection limit of 30% and 20%, respectively. Samples with Zn >30% and or Pb >20% are analyzed by traditional titration.

 

  Table 2: Drill Hole Collar Locations (NAD83 (CSRS) Zone 11).

 
                                                                                                                                                                                                                                                                                                                                                                                                   
  Hole Name    Zone    Deposit    Easting    Northing    Elev. (m)    Azm.    Dip    Length (m)  
X25-23-PP-001 W1 X25 606181.5 6735791.1 181.8 0 -90 198.0
X25-23-PP-002 W1 X25 606188.8 6735823.7 182.3 0 -90 129.0
X25-23-PP-002B W1 X25 606188.8 6735823.7 182.3 0 -90 201.0
X25-23-PP-003 W1 X25 606196.9 6735806.8 182.1 0 -90 198.0
X25-23-PP-004 W1 X25 606219.1 6735811.9 182.1 0 -90 195.0
X25-23-PP-005 W1 X25 606255.6 6735834.8 182.3 0 -90 180.0
X25-23-PP-006 W1 X25 606291.5 6735819.5 182.6 0 -90 165.0
X25-23-PP-007 W1 X25 606317.4 6735797.6 182.6 0 -90 177.0
X25-23-PP-008 W1 X25 606325.7 6735767.9 182.3 0 -90 138.0
X25-23-PP-009 W1 X25 606344.3 6735740.0 182.2 0 -90 138.0
X25-23-PP-010 W1 X25 606367.4 6735727.8 182.4 0 -90 147.0
X25-23-PP-011 W1 X25 606369.9 6735751.3 182.4 0 -90 141.0
X25-23-PP-012 W1 X25 606390.8 6735742.6 182.5 0 -90 144.0
X25-23-PP-013 W1 X25 606407.9 6735753.2 182.4 0 -90 144.0
X25-23-PP-014 W1 X25 606436.1 6735767.2 182.5 0 -90 150.0
X25-23-PP-015 W1 X25 606392.6 6735773.0 182.5 0 -90 153.0
X25-23-PP-016 W1 X25 606413.1 6735780.2 182.5 0 -90 141.0
X25-23-PP-017 W1 X25 606439.3 6735790.6 182.6 0 -90 126.0
X25-23-PP-018 W1 X25 606403.3 6735812.1 182.6 0 -90 144.0
X25-23-PP-019 W1 X25 606391.0 6735840.2 182.9 0 -90 138.0
X25-23-PP-020 W1 X25 606338.8 6735843.2 182.6 0 -90 105.0
X25-23-PP-021 W1 X25 606306.4 6735870.8 182.7 0 -90 177.0
X25-23-PP-022 W1 X25 606312.0 6735895.4 182.7 0 -90 153.0
X25-23-PP-023 W1 X25 606331.8 6735879.1 182.7 0 -90 180.0
X25-23-PP-024 W1 X25 606351.5 6735865.8 182.8 0 -90 156.0
X25-23-PP-025 W1 X25 606372.9 6735865.8 183.0 0 -90 138.0
X25-23-PP-026 W1 X25 606414.8 6735854.1 183.0 0 -90 153.0
X25-23-PP-027 W1 X25 606457.4 6735861.3 183.2 0 -90 132.0
X25-23-PP-028 W1 X25 606439.9 6735868.3 183.2 0 -90 154.0
X25-23-PP-029 W1 X25 606398.5 6735882.4 183.2 0 -90 132.0
X25-23-PP-030 W1 X25 606356.2 6735893.8 183.2 0 -90 183.0
X25-23-PP-031 W1 X25 606336.8 6735921.5 182.9 0 -90 147.0
X25-23-PP-032 W1 X25 606383.6 6735909.4 183.3 0 -90 138.0
X25-23-PP-033 W1 X25 606442.0 6735961.8 183.9 0 -90 141.0
X25-23-PP-034 W1 X25 606480.2 6735924.6 183.6 0 -90 150.0
X25-23-PP-035 W1 X25 606497.4 6735893.2 184.0 0 -90 150.0
X25-23-PP-036 W1 X25 606518.5 6735878.2 183.6 0 -90 150.0
X25-23-PP-037 W1 X25 606524.4 6735906.1 183.8 0 -90 150.0
X25-23-PP-038 W1 X25 606565.0 6735907.1 183.9 0 -90 150.0
X25-23-PP-039 W1 X25 606546.0 6735920.6 183.9 0 -90 144.0
X25-23-PP-040 W1 X25 606554.5 6735945.5 184.2 0 -90 144.0
X25-23-PP-041 W1 X25 606524.7 6735963.0 184.0 0 -90 144.0
 

  
About Osisko Metals 
 

 

 Osisko Metals Incorporated is a Canadian exploration and development company creating value in the critical metals space, more specifically copper and zinc. The Company is a joint venture partner with Appian Capital Advisory LLP for the advancement of one of Canada's premier past-producing zinc mining camps, the Pine Point Project, located in the Northwest Territories, for which the 2022 PEA (as defined herein) has indicated an after-tax NPV of C$602 million and an IRR of 25%, based on long-term zinc price of US$1.37/lb and the current mineral resource estimates that are amenable to open pit and shallow underground mining. The current mineral resource estimate in the 2022 PEA consists of 15.7Mt grading 5.55% ZnEq of Indicated Mineral Resources and 47.2Mt grading 5.94% ZnEq of Inferred Mineral Resources . Please refer to the technical report entitled "Preliminary Economic Assessment, Pine Point Project, Hay River, Northwest Territories, Canada" dated August 26, 2022 (with an effective date of July 30, 2022), which has been prepared for Osisko Metals an PPML by representatives of BBA Engineering Inc., Hydro-Resources Inc., PLR Resources Inc. and WSP Canada Inc. (the " 2022 PEA "). Please refer to the full text of the 2022 PEA, a copy of which is available on SEDAR (   www.sedar.com   ) under the Osisko Metals' issuer profile, for the assumptions, methodologies, qualifications and limitations described therein. The Pine Point Project is located on the south shore of Great Slave Lake in the Northwest Territories, near infrastructure, paved highway access, an electrical substation, as well as 100 kilometres of viable haulage roads already in place.

 

The Company has also acquired, from Glencore Canada Corporation, a 100% interest in the past-producing Gaspé Copper Mine, located near Murdochville in the Gaspé peninsula of Québec. The Company is currently focused on resource evaluation of the Mount Copper Expansion Project that hosts an Inferred Mineral Resource (in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ) of 456Mt grading 0.31% Cu (see April 28, 2022 news release of Osisko Metals entitled "Osisko Metals Announces Maiden Resource at Gaspé Copper – Inferred Resource of 456Mt Grading 0.31% Copper" ). Gaspé Copper hosts the largest undeveloped copper resource in Eastern North America, strategically located near existing infrastructure in the mining-friendly province of Québec.

 

  About Appian  

 

Appian Capital Advisory LLP is a London-headquartered investment advisor to long-term value-focused private capital funds that invest solely in mining and mining-related companies.

 

Appian is a leading investment advisor in the metals and mining industry, with global experience across South America, North America, Europe, Australia and Africa and a successful track record of supporting companies to achieve their development targets, with a global operating portfolio overseeing nearly 6,300 employees. Appian has a global team of 65 experienced professionals with presences in London, Toronto, Vancouver, Montreal, New York, Lima, Belo Horizonte, Perth, Mexico City and Dubai. The Appian team, through its private capital funds, has a long history of successfully bringing mines through development and into production, having completed 9 mine builds in the last 6 years.

 

For more information, please visit   www.appiancapitaladvisory.com   , or find us on LinkedIn, Instagram and Twitter.

 

  For further information on this news release, visit    www.osiskometals.com    or contact:  

 

Robert Wares, Chairman & CEO of Osisko Metals Incorporated 

 

Email:   info@osiskometals.com     www.osiskometals.com   

 

  Cautionary Statement on Forward-Looking Information  

 

  This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance are not statements of historical fact and constitute forward-looking information. This news release may contain forward-looking information pertaining to the closing of the Gaspe Copper Project Definitive Agreement or the Pine Point Project. For Pine Point, statements including, among other things, the results of the 2022 PEA and the IRR, NPV and estimated costs, production, production rate and mine life; the expectation that the Project will be a robust operation and profitable at a variety of prices and assumptions; the ability to identify additional resources and reserves (if any) and exploit such resources and reserves on an economic basis; the expected high quality of the Pine Point concentrates; the potential impact of the Pine Point Project in the Northwest Territories, including but not limited to the potential generation of tax revenue and contribution of jobs; the Pine Point Project having the potential for mineral resource expansion and new discoveries; the timing and ability for the Pine Point Project to reach construction decision (if at all); the estimated costs to take the Pine Point Project to construction decision (if at all); the ability of the Company to realize the anticipated benefits of the Transaction; and the impact to the Company of the disposition of ownership interest and control in the Pine Point Project, which is a material property of the Company. There can be no certainty on the timing, costs and ability for the joint venture parties to take the Pine Point Project to reach construction decision or pursue planned exploration and development as presently contemplated.  

 

  Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management, in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including, without limitation, assumptions about: favourable equity and debt capital markets; the ability and timing for the parties to fund cash calls to advance the development of the Pine Point Project and pursue planned exploration and development; future prices of zinc and lead; the timing and results of exploration and drilling programs; the accuracy of mineral resource estimates; production costs; operating conditions being favourable; political and regulatory stability; the receipt of governmental and third party approvals; licenses and permits being received on favourable terms; sustained labour stability; stability in financial and capital markets; availability of equipment; the economic viability of the Pine Point Project; and positive relations with local groups. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information are set out in the Company's public disclosure record on SEDAR (www.sedar.com) under Osisko Metals' issuer profile. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.  

 

  Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accept responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.  

 

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  Exceptional Grades and Untapped Potential  

 

Discovered in 1875, the Silver King mine is one of Arizona's most important historic producers, yielding nearly 6 million ounces of silver at grades of up to 61 oz/t. Remarkably, selected samples from small-scale production in the late 1990s returned grades as high as 644 oz/t silver (18,250 g/t) and 0.53 oz/t gold (15 g/t), indicating that high-grade mineralization remains. Additionally, the presence of freibergite (AgCuSbS) suggests a potential for antimony, a critical mineral with growing strategic demand.

 

The Ripsey mine, located 20 km west of Hot Breccia, is also an historic gold-silver-copper producer with significant upside. Historic sampling has returned up to 15.85 g/t gold and 276 g/t silver, yet no modern exploration has been conducted.

 

  Strategic Location — World-Class Neighbors  

 

The Silver King mine sits only 3 km from the main shaft of the Resolution Copper project — a joint venture between Rio Tinto and BHP and one of the world's largest unmined copper deposits with an estimated copper resource of 1.787 billion metric tonnes at an average grade of 1.5% copper (1) . This unique land position is fully surrounded by Resolution Copper's claim block, offering strategic upside.

 

"The Silver King and Ripsey mine projects are exciting additions to our Arizona portfolio. We see an opportunity to create near term value through immediate exploration on a historic high-grade silver producer with antimony potential that has seen limited modern exploration by drilling both laterally and at depth into a prospective source formation, said Gordon Aldcorn, President of Prismo. "We look forward to getting our exploration team back in the field, advancing our exciting projects and revitalizing investor interest in the Company."

 

The Silver King mine was discovered in 1875 and produced ore with as much as 10,000 ounces per ton silver in near surface workings (2) . Underground production through 1889 is estimated at almost 6 million ounces of silver at grades of between 61 and 21 ounces per ton. During a second period of production from 1918 to 1928, 230,000 ounces were produced at a grade of 18.7 ounces per ton.  No significant production has occurred after 1928.

 

The orebody at Silver King is a steeply west-dipping pipelike stockwork and breccia zone that was mined on eight levels to about 300 meters depth below a glory hole at the surface. The pipe is described as a dense stockwork with local breccia zones and a quartz core (3) .  Records indicate that due to variations in mineralogy, much of the upper portion of the body was evidently not mined. The current owners (the " Optionor ") rehabilitated the main shaft in the late 1990s, opened the upper levels of the mine and produced a small tonnage. Assay certificates from this period show selected samples with 400 to 600 ounces per ton silver with 0.2-0.5 oz/t gold and some base metals. Virtually no modern exploration has been carried out at the mine providing significant exploration upside and multiple drill targets.

 

The Ripsey mine is a historic gold-silver-copper producer located about 20 km west of the Hot Breccia project. Historic mine workings consisting of tunnels and shafts on several levels were developed along a vein over about 400 meters of strike length and 160 meters vertically. A small tonnage of mineral was produced by the Optionor in the late 1990's. Sampling by Dr. Craig Gibson from the mine workings has yielded 15.9 g/t gold and 275 g/t silver over 0.75 meters and 8.7 g/t gold, 181 g/t silver, 3% copper and 9% zinc over 1 meter. No modern exploration has been carried out at the project, providing significant exploration upside and multiple drill targets.

 

The Company plans to conduct a detailed mapping and sampling program at both projects at surface exposures and in accessible workings.  A drill program is planned for Silver King, with about 1,000 meters initially. The Silver King drill program is designed to test the mineralized body at four elevations as well as lateral to the pipelike body. De-watering of the Silver King shaft to gain access to the upper levels may also be undertaken as submersible pumps are in place.

 

"This is a fabulous opportunity for the Company. Both projects are high-grade and are easily accessible and may be associated with porphyry copper mineralization. We also look forward to evaluating the potential for antimony at Silver King. We're excited to begin exploration immediately to test the Silver King's pipelike mineralized body at multiple depths and laterally," said Dr. Craig Gibson , Chief Exploration Officer. "This region is world-class for porphyry systems and base and precious metals, and we believe these mines have significant untapped potential."

 

    
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Location of the Company's projects withing the Arizona Copper Belt

 

    
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Land map of the Silver King mine.

 

    
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Drone view of the Silver King mine.

 

     

 

The Silver King mine in the late 1800's.

 

    
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Small scale mining in the upper levels of the Silver King mine in the late 1990's.

 

  Deal description  

 

Prismo has the option to acquire a 100% interest in both the Silver King and Ripsey mines. Prismo can earn a 100% interest in the Ripsey mine by issuing one million shares to the Optionor, paying the Optionor US $10,000 within six months of the signing of the option agreement (the " Effective Date "), US $10,000 on each anniversary of the Effective Date and US $1 million to the Optionor within five years of the Effective Date. Prismo does not have minimum work commitments as part of the Ripsey option agreement.

 

Regarding the Silver King mine, Prismo can acquire a 100% interest in three stages. Prismo must issue one million shares to the Optionor, pay the Optionor US $10,000 within six months of the Effective Date, and US $10,000 on each anniversary of the Effective Date. To earn a first 50% interest, Prismo must incur no less than US $500,000 in expenditures on or before the first anniversary of the Effective Date, incur no less than an additional US $2.5 million expenditures on or before the third anniversary of the Effective Date and issue to the Optionor two million shares. Prismo can acquire an additional 30% interest by incurring no less than an additional US $3 million in expenditures, paying the Optionor US $1 million and issuing to the Optionor two million shares before the fifth anniversary of the Effective Date. Prismo can elect to form a joint venture at anytime after earning it initial 50% interest. The option agreement and joint venture agreement terms and conditions contain standard buyout and dilution terms regarding the final 20% interest.

 

  Private Placement  

 

Prismo is also pleased to announce a non-brokered private placement (the " Private Placement ") of five million units of the Company (" Units ") at an issue price of $0.05 per Unit for minimum gross proceeds of $250,000. Each Unit will consist of one common share in the capital of the Company (a " Share ") and one-half of one common share purchase warrant of the Company (each whole warrant, a " Warrant "). Each Warrant will entitle the holder to purchase one Share for a period of twenty-four (24) months from the date of issue at an exercise price of $0.10.

 

The Private Placement will also be made available to existing shareholders of the Company who, as of the close of business on July 1st, 2025, held Shares (and who continue to hold such Shares as of the closing date of the Private Placement), pursuant to the existing securityholder exemption set out in BC Instrument 45-534 – Exemption From Prospectus Requirement for Certain Trades to Existing Security Holders (the " Existing Securityholder Exemption "). The Existing Securityholder Exemption limits a shareholder to a maximum investment of CAD$15,000 in a 12-month period unless the shareholder has obtained advice regarding the suitability of the investment and, if the shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction. If the Company receives subscriptions from investors relying on the Existing Securityholder Exemption exceeding the maximum amount of the Private Placement, the Company intends to adjust the subscriptions received on a pro-rata basis.

 

The Units issued pursuant to the Private Placement and the Existing Securityholder Exemption will be subject to a four-month hold period from the closing date of the Private Placement under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.  

 

  The Company intends to use the net proceeds of the Private Placement for general corporate purposes. The Company may pay finder's fees to eligible finders in connection with the Private   Placement, subject to compliance with applicable securities laws and Canadian Securities Exchange policies.  

 

  The securities being offered have not been and will not be registered under the U.S. Securities Act and may not be offered or sold in the United States, or to, or for the account or benefit of, U.S. persons or persons in the United States, absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.  

 

  Debt Settlements  

 

  Prismo also announces that it has entered into debt settlement agreements (the "   Settlement Agreements   ") with certain creditors of the Company (the "   Creditors   ") pursuant to which the Company agreed to issue to the Creditors, and the Creditors agreed to accept, an aggregate of 160,000  shares of the Company (each, a "   Share   ") in full and final settlement of accrued and outstanding indebtedness in the aggregate amount of $11,000 (the "   Debt Settlement   ").   All securities issued pursuant to the Debt Settlement will be subject to a statutory hold period of four months from the date of issuance, in accordance with applicable policies of the Canadian Securities Exchange.  

 

  Share and Warrants Issuance  

 

  A private company dealing at arms' length with Prismo, its officers and directors, had certain rights into the Silver King and Ripsey mines ("   PrivateCo   "). In consideration for PrivateCo relinquishing its rights in the Silver King and Ripsey mines in favor of the Company, Prismo has agreed, subject to regulatory approval, to issue PrivateCo five million units (the "   Units   "). Each Unit is comprised of one common share (a "   Share   ") and one share purchase warrant (a "   Warrant   "). The Shares will become free trading as to 25% every six months from the Effective Date. Two million of the Warrants will be exercisable at $0.10 ("   First Tranche   ") and three million Warrants will be exercisable at $0.15 ("   Second Tranche   "), all for a period of three years. The shares from the exercise of the Warrants will become free trading as to 25% every six months from the Effective Date. In addition, the exercise of the First Tranche is conditional on Prismo having raised $1.5 million from parties introduced to Prismo by the principals of PrivateCo and the exercise of the Second Tranche is conditional on Prismo having raised $3.0 million from parties introduced to Prismo by the principals of PrivateCo.  

 

  Qualified Person  

 

   Dr. Craig Gibson, PhD., CPG., a Qualified Person as defined by NI-43-01 regulations and Chief Exploration Officer and a director of the Company, has reviewed and approved the technical disclosures in this news release. Other than the sampling conducted by Dr. Craig Gibson as indicated herein, the data presented in this press release was obtained from public sources, should be considered incomplete and is not qualified under NI 43-101, but is believed to be accurate. The Company has not verified the historical data presented and it cannot be relied upon, and it is being used solely to aid in exploration plans.   

 

  1)     https://resolutioncopper.com/about-us/    

 

  2)   Galbraith, F, 1935, Geology of the Silver King area, Superior, Arizona, Univ. of Arizona thesis, 153p plus plates.  

 

  3)   Blake, W.P., 1883, Description of the Silver King Mine, Arizona, New Haven, 48p plus plates.  

 

  About Prismo Metals Inc.  

 

  Prismo (CSE: PRIZ) is a mining exploration company focused on advancing its Hot Breccia copper project in Arizona and its Palos Verdes silver project in Mexico.  

 

  Please follow @PrismoMetals on   ,   ,   ,    Instagram    , and  

 

  Prismo Metals Inc. ,   1100 - 1111 Melville St., Vancouver, British Columbia V6E 3V6  

 

  Contact:  

 

  Alain Lambert, Chief Executive Officer    alain.lambert@prismometals.com   

 

  Gordon Aldcorn, President    gordon.aldcorn@prismometals.com   

 

  Cautionary Note Regarding Forward-Looking Information  

 

  This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management's expectations and intentions with respect to, among other things: the timing, costs and results of drilling at Hot Breccia.  

 

  These forward‐looking statements involve numerous risks and uncertainties, and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things: delays in obtaining or failure to obtain appropriate funding to finance the exploration program at Silver King and Ripsey. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that: the ability to raise capital to fund exploration and the timing of such exploration.  

 

  Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-   looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.  

 

  NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
 

 

Copyright (c) 2025 TheNewswire - All rights reserved.

 

 

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