Osisko Metals Incorporated (the " Company " or " Osisko Metals ") ( TSX-V: OM ; OTCQX: OMZNF ; FRANKFURT: 0B51 ) is pleased to announce the 2024 Mineral Resource Estimate Update (" 2024 MRE ") for the Pine Point Project ("Pine Point" or "the Project"), located near Hay River, in the Northwest Territories of Canada. The 2024 MRE was prepared by BBA Inc. ("BBA") and PLR Resources Inc. and will form the resource base for a Feasibility Study ("FS") that is planned to officially start in Q3 2024. Cut-off grades are based on estimated long-term metal prices, mining costs, metal recoveries, concentrate transport, and smelter costs. The definition drill program supporting the 2024 MRE was executed between 2018 and 2024.
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Osisko Metals: Developing High-grade Base Metal Assets in Canada to Meet Future Demand
Osisko Metals (TSXV:OM)) focuses on two base metal assets in Canada as the demand for base metals is expected to continue to increase. The company's Gaspé Copper and Pine Point projects target copper and zinc, both critical minerals necessary for the global transition to clean energy. Both company assets are past-producing, brownfield assets that provide 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 Pine Point Zinc-Lead project in the Northwest Territories, on the other hand, 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.
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Osisko Metals
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.
Demand for base metals is expected to continue to increase as the global transition towards a green economy and post-COVID activities in the construction and other industries ramp up, creating ideal economic conditions for Osisko Metals’ projects.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 a mineral resource estimate of 15.8 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$605 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 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 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.
- 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.
- OM 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 10,000 meters at the Gaspé copper project and 29,000 meters at Pine Point.
- 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 the 100-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% and average molybdenum recoveries of 65%, 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 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’ 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.
- In-pit Resource Evaluation: A consultation and technical committee was created in February 2024 to help develop a plan to dewater the Mount Copper open pit.
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. In 2024, Osisko 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.
- 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.
- Feasibility Study Underway: Results of the 2023 drill program will be incorporated into a new mineral resource estimate (expected in 2024) that will be integrated into a feasibility study.
- 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 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.
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 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. 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.
Robin Adair – Vice-president Exploration
Robin Adair is a professional geologist with over 33 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 Québec 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 Québec. 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.
Ann Lamontagne – Vice-president, Environment and Sustainable Development
Ann Lamontagne, ing., PhD., 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 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.
Before 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.
Osisko Metals Releases 2024 Pine Point Mineral Resource Estimate: 49.5Mt of Indicated Mineral Resources Grading 5.52% ZnEq and 8.3Mt of Inferred Mineral Resources Grading 5.64% ZnEq
Highlights:
- Indicated Mineral Resources of 49.5Mt grading 4.22% zinc and 1.49% lead (5.52% Zinc Equivalent ("ZnEq")) containing approximately 4.6 billion pounds of zinc and 1.6 billion pounds of lead in situ (undiluted).
- Inferred Mineral Resources of 8.3Mt grading 4.18% zinc and 1.69% lead (5.64% Zinc Equivalent ("ZnEq")) containing approximately 0.7 billion pounds of zinc and 0.3 billion pounds of lead in situ (undiluted).
- Compared to the previous MRE, the conversion of Inferred Mineral Resources (see press release dated July 13, 2022 ) increased the tonnage of the current Indicated Mineral Resources by 214% with an associated decrease in the quantity of Inferred Mineral Resources.
- Mineral Resources reported for the 2024 MRE used variable cut-off grades between 1.41% and 1.51% ZnEq for open pit resources and between 4.10% and 4.40% ZnEq for underground resources.
- The project's East Mill, Central, and North Zones now contain approximately 36.2Mt of Indicated Mineral Resources grading 5.22% ZnEq, or 3.2 billion pounds of zinc and 1.1 billion pounds of lead in situ.
- New metallurgical test work is in progress. Previous metallurgical test work described in the 2022 PEA (see press release August 29, 2022 ) highlighted Pine Point as a potential producer of among the cleanest, high-grade zinc and lead concentrates globally. This adds value to the project as any and probably most smelter clients would want some Pine Point concentrate for blending purposes.
A Technical Report supporting this 2024 MRE will be filed within 45 days.
Robert Wares, CEO and Chairman of the Board, commented, " We are very happy to have met a critical milestone with this MRE that successfully converted the majority of the mineral resources to the Indicated category. With our partner Appian Capital Advisory LLP, we can now rapidly advance Pine Point to the Feasibility Stage following finalization of trade-off studies."
Jeff Hussey, CEO of Pine Point Mining Limited, stated, " This represents the culmination of a multi-year definition drill program that raised the confidence level in the mineral resource base for the Feasibility Study. We will also continue exploring for new deposits and should significant discoveries be made this summer; they will be rapidly incorporated into the final inventory."
The project has significant supporting infrastructure, including access by paved roads, a railhead in Hay River, and an on-site hydroelectric substation. Additionally, the project benefits from one hundred kilometres of pre-existing mine haul roads from the original mining operations. These provide access to most of the deposits in the 2024 MRE. The future concentrator and camp location will be adjacent to the original concentrator area.
The 2024 MRE is divided into five geographic zones, each composed of one or more individual deposits (see Map 1 and Table 1).
Table 1: 2024 Mineral Resource Estimate for Pine Point
Indicated | Inferred | |||||||||||||
Method | Zone | Cut-off Grade | Tonnage | ZnEq | Pb | Zn | Tonnage | ZnEq | Pb | Zn | ||||
(ZnEq %) | (kt) | (%) | (%) | (%) | (kt) | (%) | (%) | (%) | ||||||
Pit Constrained Mineral Resources | Central | 1.41 | 7,400 | 6.21 | 1.50 | 4.91 | 498 | 4.50 | 0.75 | 3.84 | ||||
East Mill | 1.41 | 10,047 | 4.69 | 1.11 | 3.72 | 1,051 | 3.54 | 0.73 | 2.90 | |||||
North | 1.41 - 1.44 | 18,763 | 5.10 | 1.47 | 3.82 | 680 | 4.08 | 0.65 | 3.52 | |||||
N204 | 1.51 | 8,923 | 4.05 | 0.90 | 3.27 | 3,027 | 4.20 | 0.92 | 3.40 | |||||
Underground Mineral Resources | Central | 4.40 | 121 | 6.66 | 0.81 | 5.95 | 63 | 5.62 | 1.44 | 4.37 | ||||
West | 4.10 - 4.40 | 4,215 | 11.21 | 3.69 | 8.00 | 2,934 | 8.44 | 3.55 | 5.35 | |||||
Total Pit Constrained | 1.41 - 1.51 | 45,133 | 4.99 | 1.28 | 3.87 | 5,256 | 4.08 | 0.65 | 3.52 | |||||
Total Underground | 4.10 - 4.40 | 4,336 | 11.08 | 3.61 | 7.94 | 2,997 | 8.38 | 3.51 | 5.33 | |||||
Total Combined | 49,469 | 5.52 | 1.49 | 4.22 | 8,253 | 5.64 | 1.69 | 4.18 |
Notes: | ||
1) | All tonnages are rounded to the nearest thousand tonnes. | |
2) | ZnEq percentages are calculated using metal prices, forecasted metal recoveries, concentrate grades, transport costs, smelter payable metals and charges. | |
3) | Pit-constrained cut-off grades vary primarily due to variable transportation distances to the presumed concentrator location. | |
The weighted average strip ratio for all modelled pit-constrained mineralization is 5.8:1. | ||
Compared to the 2022 Mineral Resource Estimate, there is a decrease in overall tonnage, however grades remain similar. The key factors include:
- Tighter parameters guiding reasonable prospects for eventual economic extraction driven by increased knowledge on project OPEX and mining parameters.
- Open Pit: Whittle optimization parameters as well as the increased cutoff grade (+13%) and an increase in tonnage [+0.4%], due to the conversion of the Underground Central zone that is now being declared as Open Pit resources.
- Underground (West): Tighter stope optimization parameters; decrease in tonnage [-29%]
- Underground (Central): Tighter stope optimization parameters and most of the 2022 underground material that is now tonnage declared inside pit shells [-93%]
The in-pit MRE is constrained within pit shells that were developed from a pit optimization analysis that was done with Geovia Whittle 2022 software using the economic and operating parameters presented below:
Table 2: Pit Optimization Parameters
Parameter | Unit | Input | |
Mine Site Costs | |||
Mining Cost – Overburden 1 | C$/t mined | 2.63 | |
Mining Cost - Mineralized Material 1 | C$/t mined | 3.85 | |
Mining Cost – Waste 1 | C$/t mined | 3.85 | |
Transport Mineralized Material to Mill | C$/t mined | 0.13 | |
Processing Cost | C$/t milled | 11.00 | |
Power Cost 2 | C$/t milled | 5.00 | |
Waste and Water Management Cost | C$/t milled | 2.00 | |
G&A Cost | C$/t mined | 8.50 | |
Recoveries | |||
Average Zinc | % | 87 | % |
Average Lead | % | 93 | % |
Zinc Concentrate Grade | % | 60 | % |
Lead Concentrate Grade | % | 65 | % |
Zinc Concentrate Costs | |||
Transport from mine to Smelter | C$/wmt | 215.80 | |
Smelter Cost | C$/dmt | 266.50 | |
Lead Concentrate Costs | |||
Transport from mine to Smelter | C$/wmt | 261.30 | |
Smelter Cost | C$/dmt | 152.10 | |
Metal Prices | |||
Zinc | US$/lb | 1.30 | |
Lead | US$/lb | 1.00 | |
Exchange Rate | 1.30 |
1 – Includes dewatering costs
2 - Process plant power cost is included in Power Cost
Table 3: Underground Parameters
Parameter | Unit | Input | |
Mine Site Costs | |||
Mining Cost – LHS 1 | C$/t mined | 54.22 | |
Mining Cost - R&P 1 | C$/t mined | 59.99 | |
Processing Cost | C$/t milled | 11.00 | |
Power Cost 2 | C$/t milled | 5.00 | |
Waste and Water Management Cost | C$/t milled | 2.00 | |
G&A Cost | C$/t mined | 8.50 | |
Recoveries | |||
Average Zinc | % | 87 | % |
Average Lead | % | 93 | % |
Zinc Concentrate Grade | % | 60 | % |
Lead Concentrate Grade | % | 65 | % |
Zinc Concentrate Costs | |||
Transport from mine to Smelter | C$/wmt | 215.80 | |
Smelter Cost | C$/dmt | 266.50 | |
Lead Concentrate Costs | |||
Transport from mine to Smelter | C$/wmt | 261.30 | |
Smelter Cost | C$/dmt | 152.10 | |
Metal Prices | |||
Zinc | US$/lb | 1.30 | |
Lead | US$/lb | 1.00 | |
Exchange Rate | 1.30 |
1 – Includes dewatering costs.
2 - Process plant power cost is included in Power Cost
Open Pit and Underground Mineralization
Prismatic-style deposits are defined by greater than 10 metres of greater than 10% zinc + lead, with a distinct vertical aspect of the deposit outline that crosscuts stratigraphy. Vertical thicknesses of mineralization can exceed 70 metres, and they have horizontal cross-sections of less than 200 by 200 metres.
Tabular-style deposits comprise sub-horizontal, stratabound mineralization extending over a significant strike length at varying lateral widths from 50 to 200 metres wide. The strike extent can be in the order of kilometres. Mineralization thickness averages about 3 metres and can range from 1 metre to, very locally, greater than 10 metres.
The open pit portion of the 2024 MRE includes mostly shallow tabular-style deposits, with the remainder being shallow prismatic-style deposits. The underground portion of the 2024 MRE includes deeper prismatic-style mineralization and easily accessible tabular-style mineralization found adjacent to the pit wall boundaries of certain deposits.
Metallurgy
Metallurgical test work is in progress and will provide data to support the flow-sheet design for the process plant, including comminution tests, pre-concentration tests (Ore Sorting and Dense Media Separation (DMS)), flotation tests and dewatering tests. The Company is also investigating concentrations of the critical metals Indium (In), Germanium (Ge), and Gallium (Ga) in the Zinc concentrate produced from flotation tests and in sphalerite mineralization within the various Zones.
2024 Drill Program
A brownfield exploration campaign is underway. The program is focused on discovering high-grade prismatic-style deposits. One drill was active in March and tested three high-potential target areas. Results are pending. Additional targets are ready for drilling, and new targets are continually being developed. The plan is to diligently test these exploration targets this summer.
Induced polarization and magnetic surveys are best suited for geophysical targeting of these types of deposits. Surveys over in situ prismatic-style deposits were used for calibration purposes for these geophysical methods. Targets are generated by using a combination of airborne gravity gradiometry data, LiDAR, AeroTEM survey, structural lineament interpretation, and trend analysis. The search has been expanded to adjacent carbonate formations that the Company believes are fertile for discovery.
Notes Regarding This Mineral Resource Estimate
Mineral Resource Estimate
- The independent qualified person for the 2024 MRE, as defined by National Instrument ("NI") 43-101 guidelines, is Pierre-Luc Richard, P.Geo., of PLR Resources Inc and subcontracted by BBA Inc. The effective date of the 2024 MRE is May 31, 2024. Mr. Richard has also approved the technical contents of this press release.
- These mineral resources are not mineral reserves as they have not demonstrated economic viability. The quantity and grade of reported Inferred Resources in this MRE are uncertain in nature, and there has been insufficient exploration to define these Inferred Resources as Indicated or Measured. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
- Resources are presented as undiluted and in situ for an open-pit and underground scenario and are considered to have reasonable prospects for economic extraction.
- The 2024 MRE was prepared using Leapfrog Edge v.2023.2.1 and is based on 20,682 surface drill holes and 181,313 samples, of which 17,428 drill holes and a total of 92,652 assays were included in the modelled mineralization. The drill hole database includes recent drilling of 148,026 metres in 2,258 drill holes since 2017 and also incorporates Cominco Ltd.'s historical drill holes, the use of which was partially validated by a drill hole collar survey, twinning programs and a partial core resampling program. The cut-off date for the drill hole database was April 30, 2024.
- The 2024 MRE encompasses 103 zinc-lead-bearing zones, each defined by a series of individual wireframes with a minimum true thickness of 2.5 metres.
- High-grade capping was done on the composited assay data and established on a per-zone basis for zinc and lead. Capping grades vary from 15% to 45% Zn and 5% to 40% Pb.
- Density values were calculated based on the formula established and used by Cominco Ltd. during their operational period between 1964 and 1987. Density values were calculated from the density of dolomite, adjusted by the amount of sphalerite, galena, and marcasite/pyrite as determined by metal assays. A porosity of 5% was assumed. Waste material was assigned the density of porous dolomite.
- Grade model resource estimation was calculated from drill hole data using an Ordinary Kriging interpolation method in a sub-blocked block model using blocks measuring 5 m x 5 m x 2.5 m in size and sub-blocks down to 1.25 metres x 1.25 metres x 0.625 metres.
- Zinc equivalency percentages are calculated using long-term metal prices indicated below in (10), forecasted metal recoveries, concentrate grades, transport costs, smelter payable metals and charges.
- The estimate is reported using a ZnEq cut-off varying from 1.41% to 1.51% for open-pit resources and 4.10% to 4.40% for underground resources. Variations consider trucking distances from the pit-constrained mineralization to the mill and metallurgical parameters for each area. The cut-off grade was calculated using the following parameters (amongst others): zinc price = USD1.30/lb; lead price = USD1.00/lb; CAD:USD exchange rate = 1.30. The cut-off grade will be re-evaluated considering future prevailing market conditions and costs.
- The Inferred Mineral Resource category is constrained to areas where drill spacing is less than 100 metres, and where reasonable geological and grade continuity is shown. The Indicated Mineral Resource category is constrained to areas where modern drilling has been completed, where drill spacing is less than 30 metres, and where reasonable geological and grade continuity is shown. When needed, a series of clipping boundaries were created manually in plan views to either upgrade or downgrade classification. The maximum drill spacing judged acceptable when creating these clipping boundaries was 50m for the indicated category.
- The pit optimization used to develop the Mineral Resource-constraining pit shells was done using Geovia Whittle 2022. The constraining pit shells were developed using overall pit slopes per area and by individual pits based on a preliminary geotechnical report. The rock slopes range from 38° to 52° with an average of 49°, and the overburden slopes range from 33° to 45° with an average of 38°.
- Calculations used metric units (metre, tonne). Metal contents are presented in percentages or pounds. Metric tonnages were rounded, and any discrepancies in total amounts are due to rounding errors.
- CIM definitions and guidelines for Mineral Resource Estimates have been followed.
- The QP is unaware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues or any other relevant issues that could materially affect this MRE.
Other Inputs to the 2024 MRE
- The independent qualified person providing the pit shells, and cut-off grades for the 2024 MRE is Alexandre Dorval, ing., of G Mining Services. Mr. Dorval has approved the technical contents of this press release.
- The independent qualified person providing the underground mining shapes and cut-off grades for the 2024 MRE is Carl Michaud, ing., of G Mining Services. Mr. Michaud has approved the technical contents of this press release.
- The independent qualified person providing the metallurgical components relating to the 2024 MRE is Colin Hardie, P. Eng., of BBA Inc. Mr. Hardie has approved the technical contents of this press release.
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 in a joint venture 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 current mineral resources have been calculated for the 2024 MRE (as defined herein). The Project is held under the joint venture company Pine Point Mining Limited. The current mineral resource estimate consists of 49.5Mt grading 5.52% ZnEq of Indicated Mineral Resources and 8.3Mt grading 5.64% ZnEq of Inferred Mineral Resources (in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects) . A technical report will follow this press release within 45 days. The Pine Point Project is located on the south shore of Great Slave Lake in the Northwest Territories, near infrastructure, with paved highway access, an electrical substation, and 100 kilometres of viable haulage roads.
In addition, and outside of the Pine Point JV, the Company acquired in July 2023, 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 Copper Mountain Expansion Project that hosts a current mineral resource consisting of an Indicated Mineral Resource of 495Mt grading 0.37% CuEq and an Inferred Mineral Resource of 6.3Mt grading 0.37% CuEq (in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ); see May 6, 2024 news release of Osisko Metals entitled " Osisko Metals announces updated mineral resource estimate at Gaspé Copper – indicated resource of 495 mt grading 0.37% copper equivalen t" . 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 Capital Advisory
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 .
For further information on this news release, visit www.osiskometals.com or contact:
Robert Wares, Chairman & CEO of Osisko Metals Incorporated
Email: IR@osiskometals.com
Phone: 514-861-4441
Cautionary Note Regarding 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 Pine Point and Gaspé Copper Projects, including, among other things, the results of the 2022 PEA on Pine Point and the IRR, NPV and estimated costs, production, production rate and mine life; 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 metal concentrates; the potential economic impact of the projects on local communities, including but not limited to the potential generation of tax revenues and contribution of jobs; the timing and ability for Projects to reach construction decision (if at all); the estimated costs to take the Projects to construction decision (if at all) 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; Gaspé Copper hosting the largest undeveloped copper resource in Eastern North America and Glencore becoming a Control Person of the Company.
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 Pine Point joint-venture parties to fund cash calls to advance the development of the Pine Point Project and pursue planned exploration and development; future spot prices of copper, zinc, lead and molybdenum; the timing and results of exploration and drilling programs; the accuracy of mineral resource estimates; production costs; 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 mining equipment and positive relations with local communities and 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) accepts 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.
Map 1: Pine Point Project
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5baec6c5-cf0b-4929-ae56-d25c5b53c0cd
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Osisko Metals to Participate in THE Mining Investment Event of the North, Canada's Only Tier I Global Mining Investment Conference
Osisko Metals (TSXV: OM) (OTCQX: OMZNF) is pleased to announce that it will be participating in THE Mining Investment Event of the North, ("THE Event") taking place June 4-6, 2024 in Quebec City at the Centre des congrès de Québec.
Robert Wares will be presenting at 2:15 pm ET on June 5th. Management from Osisko Metals will also be holding one-on-one investor meetings throughout the three-day conference.
Investors are invited to contact Jennifer Choi at jchoi@irinc.ca to inquire about registering to attend.
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 15.7 Mt grading 5.55% ZnEq of Indicated Mineral Resources and 47.2 Mt 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 was prepared for Osisko Metals and PPML by representatives of BBA Engineering Inc., HydroRessources 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, with paved highway access, an electrical substation, as well as 100 kilometres of viable haulage roads. In addition, the Company acquired in July 2023, from Glencore Canada Corporation, a 100% interest in the past-producing Gaspé Copper Project, located near Murdochville in the Gaspé peninsula of Québec. The Company is currently focused on resource evaluation of the Copper Mountain Deposit that hosts the updated Mineral Resource Estimate described herein. Gaspé Copper hosts the largest undeveloped copper resource in Eastern North America, strategically located near existing infrastructure in the mining-friendly province of Québec. 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
Kimberly Darlington
Investor Relations
514 771-3398
kimberly@refinedsubstance.com
THE Event is invitation only - Interested investors & issuers please go here: https://www.themininginvestmentevent.com/register or contact Jennifer Choi, jchoi@irinc.ca
The latest Agenda, Brochure, participating companies, speakers & panelists may be found here: https://themininginvestmentevent.com.
About THE Mining Investment Event of the North - Canada's Only Tier I Global Mining Investment Conference© is held annually in Québec City, Canada. THE Event is independently sponsored and designed to facilitate privately arranged meetings between mining companies, international investors, and various mining government authorities and provides a platform to hear from some of most influential thought leaders in the sector. THE Event is committed to promoting diversity, equality issues and sustainability in the mining industry via education and innovation through its unique Student Sponsorship and SHE-Co Initiatives.
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Osisko Metals Announces Updated Mineral Resource Estimate at Gaspé Copper - Indicated Resource of 495 Mt Grading 0.37% Copper Equivalent
Osisko Metals Incorporated (the " Company " or " Osisko Metals ") ( TSX-V: OM ; OTCQX: OMZNF ; FRANKFURT: 0B51 ) is pleased to announce an updated Mineral Resource Estimate ("MRE") at Copper Mountain as part of the Gaspé Copper Project, located near Murdochville in the Gaspé Peninsula of Quebec.
The updated MRE (see Table 1 below) comprises an open-pit Indicated Resource of 495 million tonnes grading 0.37% CuEq , representing a 30% increase in copper-equivalent metal content over the previously reported copper-only Inferred Resource (see April 28, 2022 press release), as well as greater than 99% conversion rate from Inferred to Indicated category.
At 3.25 billion pounds (1.47 million tonnes) of contained copper, not including significant molybdenum (180 million pounds) and silver (28 million ounces) resources (see Table 1 below), the Copper Mountain in-pit Indicated Resource hosts the largest undeveloped copper asset in Eastern North America.
Other improvements in the updated MRE include a 38% reduction of the strip ratio (now estimated at 1.23) from the estimate in the previously reported Inferred Resource, based on the mineralization geometry that surrounds the former open pit mine.
Robert Wares, CEO & Chairman of the Board, commented: "We are extremely pleased with the results of the updated Mineral Resource Estimate for the Copper Mountain Deposit. The overall copper resource has increased since we announced the maiden resource estimate in 2022 with significant molybdenum and silver credits now included in the estimate. Integrating the recently-announced positive metallurgical testing results, the Gaspé Copper Project is showing excellent potential towards becoming a key Canadian copper-molybdenum producer, located in one of the world's safest mining jurisdictions."
Mr. Wares continued: "This MRE will provide the basis for a Preliminary Economic Assessment, scheduled to be released in early Q1 2025 in the context of what we believe is the start of a strong long-term copper market. Furthermore, we strongly believe that this important asset could become a core component of Quebec's critical mineral development strategy that aims to provide essential metals for global decarbonization initiatives."
Table 1: Mineral Resource Estimate (MRE) Base Case
Class | Tonnes | Cu Eq | Cu | Mo | Ag | Cu | Cu | Mo | Mo | Ag |
Mt | % | % | % | g/t | M lbs | kt | M lbs | kt | (koz) | |
Indicated | 495 | 0.37 | 0.30 | 0.016 | 1.75 | 3,248 | 1,473 | 180 | 82 | 27,911 |
Inferred | 6.3 | 0.37 | 0.28 | 0.019 | 1.44 | 39 | 18 | 3 | 1 | 291 |
- The independent qualified persons for the MRE, as defined by National Instrument ("NI") 43-101 guidelines, is Pierre-Luc Richard, P.Geo., of PLR Resources Inc. with contributions from Carl Michaud, P.Eng., of G-Mining for cut-off grade and Pit shell optimization, and Colin Hardie, P.Eng., from BBA, for metallurgical parameters. The effective date of the MRE is April 22, 2024.
- These Mineral Resources are not mineral reserves as they have no demonstrated economic viability. No economic evaluation of these Mineral Resources has been produced. The quantity and grade of reported Inferred Resources in this MRE are uncertain in nature and there has been insufficient drilling to define these Inferred Resources as Indicated. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated category with continued drilling.
- The Qualified Persons are not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issues that could materially affect the MRE.
- Calculations used metric units (metres, tonnes). Metal contents in the above table are presented in percent, pounds or tonnes. Metric tonnages and pounds were rounded, and any discrepancies in total amounts are due to rounding errors.
- CIM definitions and guidelines for Mineral Resource Estimates have been followed. See Cautionary Note below for copper equivalency (CuEq) values.
Building upon the information released in this updated MRE, an 8,000 to 10,000 metre drill program is planned to commence in May that aims to 1) partially define Measured Resources and improve grades in the higher-grade core of the Copper Mountain deposit, which could provide approximately 60 Mt of higher grade "starter-pit" material estimated from a 0.40% Cu lower cut-off grade; and 2) test the potential for near-surface mineralization around the historical Needle Mountain mine that was the starter operation for Gaspé Copper in the 1950's (A and B Zones).
General parameters of the updated Mineral Resource Estimate
This resource is pit-constrained to mineralization surrounding the past-producing Copper Mountain open pit mine and uses, amongst other parameters, a long-term price of US$4.00/lb copper (cutoff of 0.12% Cu) for pit shell modelling, pre-set eastern and southeastern geographical constraints on pit limits to minimize impacts on the town of Murdochville from future potential mining operations, and a lower cut-off grade of 0.15% copper for base case in-pit resource estimation. The resource was estimated using data from historical drilling completed between the 1950's and 2019 and 37,390 metres of drilling completed by the Company in 2022 and 2023. See the Appendix at the end of this news release for detailed parameters.
Mineral Resource Sensitivity
The following table shows the resources reported at various in-pit cut-off grades within a pit shell modelled at a lower cut off of 0.12% Cu; the base case resource cut-off grade reported herein is 0.15% copper and is highlighted in bold text:
Table 2: Indicated Mineral Resource Estimates at Variable Cut-Off Grades
Class | Copper Cut-off (%) | Tonnage (Mt) | Strip Ratio | Grade | Copper Metal Resource | ||
Cu % | Mo % | M lbs | kt | ||||
Indicated | 0.12 | 572 | 0.93 | 0.28 | 0.015 | 3,476 | 1,576 |
0.15 | 495 | 1.23 | 0.30 | 0.016 | 3,248 | 1,473 | |
0.20 | 376 | 1.94 | 0.34 | 0.018 | 2,791 | 1,266 | |
0.25 | 273 | 3.05 | 0.38 | 0.020 | 2,279 | 1,034 | |
0.30 | 186 | 4.93 | 0.43 | 0.022 | 1,758 | 797 | |
0.40 | 86 | 11.9 | 0.53 | 0.025 | 1,000 | 454 |
Same footnotes as Table 1 apply to this table.
Potential for Additional Mineral Resources at Gaspé Copper
End-of-mine historical mineral resources at Gaspé Copper that are not NI 43-101 compliant are reported in the Noranda/Falconbridge Annual Reports 1998-2000, Quebec government mining assessment reports and in Hussey & Bernard (SME Aug 1998, p. 36-44). The following disclosure describes areas of remaining mineralization at Gaspé Copper that the Company believes offer excellent potential for additional mineral resources. Osisko Metals' strategy at the present time is to focus on the economic viability of the currently defined Copper Mountain resource, and if this can be achieved, evaluation of mineralized zones described below will follow with additional drill programs.
Larger open pit resource potential at Copper Mountain
The current modelled Whittle pit shell includes pre-set eastern and southeastern geographical constraints on pit limits designed to minimize impacts on the town of Murdochville from potential future mining operations (Figure 1), namely leaving the southern portion of Copper Mountain intact. Geological modelling of stockwork mineralization and residual disseminated skarn mineralization occurring between the Copper Mountain and Needle Mountain historical open pits, the latter located 1.6 kilometers south of Copper Mountain, indicates potential for a significantly larger open pit resource at Gaspé Copper. Further geological and pit modelling is required to evaluate such potential and this work is ongoing. In the event that a larger viable pit-constrained resource can be defined, the Company will evaluate the possibility of reconfiguring the current layout of the site to minimize disturbance and ensure the protection and safety of the residents of Murdochville and the surrounding environment.
Figure 1. Plan view of the footprint of the currently modelled Whittle pit encompassing the base case mineral resource.
Open pit resource potential at Needle Mountain
Modelling of the residual copper mineralization along the perimeter and below the open pit A Zone and the underground B Zone at Needle Mountain, including residual pillars in the B Zone, indicates potential for a higher-grade, secondary open-pit resource that would be distinct from the Copper Mountain resource. The modelling is based entirely on 1950's and 1960's historical drill holes, which were only partially assayed for copper and not for molybdenum nor silver. This area will be tested with a Phase I, 4,000-metre drill program starting at the end of May and if successful, will be followed by a Phase II program later in the season.
High-grade residual mineralization near past underground operations
Residual underground skarn mineralization still remains in the form of pillars in the mined portion of the C Zone (grades of 1% to 2% copper), as well as massive sulfide/skarn mineralization in the deeper E Zone (grades of 3% to 4% copper) within the E-38 deposit and up to 800 metres north of this deposit. The E Zone skarn aureole received little follow-up drilling north of the E-38 deposit and offers excellent potential for further resource definition at significantly higher copper and molybdenum grades. Drilling of the E Zone skarn is planned for 2025.
Appendix - parameters and criteria used for the Mineral Resource Estimate (MRE)
- General Whittle pit parameters used for the Mineral Resource Estimate include:
Parameter | Value | Unit |
Copper Price | $4.00 | US$ per pound |
CAD:USD exchange rate | 1.33 | |
Discount Rate | 8.0 | Percent |
Royalty Rate | 1.0 | Percent |
Cu concentrate transport + loading costs | $10.40 | US$ per wmt |
Cu concentrate shipping cost | $66.25 | US$ per wmt |
Cu concentrate insurance and other costs | $23.35 | US$ per wmt |
Cu concentrate smelter treatment cost | $80.00 | US$ per wmt |
Cu concentrate smelter refining cost | $0.08 | US$ per pound |
Cu concentrate grade | 25.0 | Percent |
Payable Cu | 96.5 | Percent |
In-Pit Mining Cost | $2.85 | US$ per tonne mined |
Mill Processing Cost | $3.76 | US$ per tonne milled |
General and Administrative Costs | $1.57 | US$ per tonne milled |
Overall Pit Slope - Rock | 48 | Degrees |
Copper Recovery | 92 | Percent (%) |
Mining loss / Dilution (open pit) | 0 / 0 | Percent / Percent |
Waste Avg. Specific Gravity | 2.67 | Tonnes/cubic metre |
Mineralization Specific Gravity (variable) | Avg. 2.73 | Tonnes/cubic metre |
- Resources are presented as undiluted and in situ for an open-pit scenario and are considered to have reasonable prospects for economic extraction. The constraining pit shell was developed using overall pit slopes of 48 degrees in bedrock and 20 degrees in overburden. The pit optimization to develop the resource-constraining pit shells was performed using Geovia Whittle 2022 software.
- The MRE wireframe was prepared using Leapfrog Edge v.2023.2.1 and is based on 570 drill holes and 41,198 samples. The drill hole database includes recent drilling totalling 44,407 metres in 83 drill holes (Xstrata 2011-2012, Glencore Canada 2019 and Osisko Metals 2022-2023) and also incorporates historical drill holes totalling 126,515 metres in 487 drill holes (Noranda 1998 and earlier). Drill hole data verification was performed by verifying the coherence of the information but not its correctness; original logs and laboratory certificates were only available for 2011, 2012, 2019, 2022 and 2023 drill holes. The cut-off date for the drill hole database was February 12, 2024.
- Composites of 10-metre lengths were created inside the mineralization volume. A total of 12,760 composites were generated with an average grade of 0.27 %Cu. High-grade capping was done on the composited assay data; composites were capped at 1.50% for Cu, 0.16% for Mo, and 7.5g/t for Ag.
- Pit constrained Mineral Resources for the base case are reported at a cut-off grade of 0.15 % Cu in sulfide within a conceptual pit shell based on a 0.12% Cu lower cut-off. The cut-off grades will be re-evaluated on an ongoing basis in light of future prevailing market conditions and costs.
- Contained copper in the resource includes sulfide copper only and soluble copper was ignored. It was assumed for this MRE that only the copper contained in sulfides could have economical potential. Therefore, the soluble copper that is present as oxides and carbonates was removed and significant oxidized zones are all located in the south-west portion of the deposit. The proportion of the copper contained as soluble copper relative to sulfides is correlated to the depth of the mineralization. Therefore, depth from the original topographic surface was modeled and used to estimate the percentage of copper that would be contained as soluble copper within the MRE.
- Specific gravity values were estimated using data available in the historical drill holes. Values were interpolated for the mineralized solid - the average value is 2.73 tonnes/cubic metre. Surrounding barren lithologies were assigned the average specific gravity value from all measured samples.
- Modelled base case pit shell measures 2,100 X 1,500 metres and reaches a maximum depth of approximately 700 metres.
- Grade model resource estimation was calculated from drill hole data using an ordinary kriging (OK) interpolation method in a sub-blocked model using blocks measuring 10 m x 10 m x 10 m in size and sub-blocks down to 1.25 m x 1.25m x 1.25 m. Both ordinary kriging and inverse square distance (ID2) interpolation methods were tested, resulting in no material difference in the Mineral Resource Estimates.
- The Indicated and Inferred Mineral Resource categories are constrained to areas where drill spacing is less than 150m and 300 metres, respectively, and show reasonable geological and grade continuity.
Cautionary Statement Regarding Copper Equivalent Grades
Copper Equivalent grades are expressed for purposes of simplicity and are calculated taking into account 1) metal grades; 2) estimated long-term prices of metals: US$4.00/lb copper, $19.00/lb molybdenum and US$22/oz silver; 3) estimated recoveries of 92%, 70% and 70% for Cu, Mo and Ag respectively and 4) net smelter return value of metals as percentage of the price, estimated at 86.5%, 90.7% and 75.0% for Cu, Mo and Ag respectively.
Cautionary Statement Regarding Mineral Resources
The mineral resources disclosed in this press release conform to NI43-101 standards and guidelines and were prepared by independent qualified persons. The above-mentioned mineral resources are not mineral reserves as they do not have demonstrated economic viability. The quantity and grade of the reported Inferred Mineral Resources are conceptual in nature and are estimated based on limited geological evidence and sampling. Geological data is sufficient to imply but not verify geological grade and/or quality of continuity. An Inferred Mineral Resource has a lower level of confidence relative to a Measured or Indicated Mineral Resource and constitutes an insufficient level of confidence to allow conversion to a Mineral Reserve. It is reasonably expected, but not guaranteed, that the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated Mineral Resources with additional drilling. The National Instrument 43-101 Technical Report, including the mineral resources for the Gaspé Copper Project contained in this news release, will be delivered and filed on SEDAR by Osisko Metals within 45 days of the date of this news release.
Qualified Persons
The Mineral Resource Estimate and technical information in this news release has been prepared and approved by independent qualified persons, as defined by National Instrument ("NI") 43-101 guidelines: Pierre-Luc Richard, P.Geo., of PLR Resources Inc. with contributions from Carl Michaud, P.Eng., of G-Mining for cut-off grade and Pit Shell optimization, and Colin Hardie, P.Eng., from BBA, for metallurgical parameters. Technical information relating to historical copper deposits at Gaspé Copper has been reviewed by Jeff Hussey, P. Geo., a non-independent Qualified Person in accordance with National Instrument 43-101 standards.
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 15.7 Mt grading 5.55% ZnEq of Indicated Mineral Resources and 47.2 Mt 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 was prepared for Osisko Metals and PPML by representatives of BBA Engineering Inc., HydroRessources 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, with paved highway access, an electrical substation, as well as 100 kilometres of viable haulage roads.
In addition, the Company acquired in July 2023, from Glencore Canada Corporation, a 100% interest in the past-producing Gaspé Copper Project, located near Murdochville in the Gaspé peninsula of Québec. The Company is currently focused on resource evaluation of the Copper Mountain Deposit that hosts the updated Mineral Resource Estimate described herein. Gaspé Copper hosts the largest undeveloped copper resource in Eastern North America, strategically located near existing infrastructure in the mining-friendly province of Québec.
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 |
Follow Osisko Metals on Facebook at https://www.facebook.com/osiskometals/ ,
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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 Pine Point and Gaspé Copper Projects, including, among other things, the results of the 2022 PEA on Pine Point and the IRR, NPV and estimated costs, production, production rate and mine life; 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 metal concentrates; the potential economic impact of the projects on local communities, including but not limited to the potential generation of tax revenues and contribution of jobs; the timing and ability for Projects to reach construction decision (if at all); the estimated costs to take the Projects to construction decision (if at all) 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; Gaspé Copper hosting the largest undeveloped copper resource in Eastern North America and Glencore becoming a Control Person of the Company.
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 Pine Point joint-venture parties to fund cash calls to advance the development of the Pine Point Project and pursue planned exploration and development; future spot prices of copper, zinc, lead and molybdenum; the timing and results of exploration and drilling programs; the accuracy of mineral resource estimates; production costs; 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 mining equipment and positive relations with local communities and 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 TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture 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.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/81834f9f-fc34-4cab-a569-166f8f53236c
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Osisko Metals Reports Preliminary Metallurgical Testwork Results From Gaspé Copper
Osisko Metals Incorporated (the " Company " or " Osisko Metals ") ( TSX-V: OM ; OTCQX: OMZNF ; FRANKFURT: 0B51 ) is pleased to announce preliminary metallurgical and grindability testwork results from the Gaspé Copper Project located near Murdochville in the Gaspé peninsula in Québec. Testwork was performed on eighteen composite samples of mineralized drill core from selected intersections of the 2023 drill program at Copper Mountain, and employed a conventional copper-molybdenum flotation flowsheet and reagents.
Highlights
- Copper recoveries averaged 91.9% from nineteen bulk Cu-Mo locked-cycle flotation tests (including one composite sample) and averaged 94.2% from three locked-cycle Cu-Mo separation tests.
- Copper concentrate grades averaged 24.1% Cu from nineteen bulk Cu-Mo locked-cycle flotation tests and averaged 28.0% Cu from three locked-cycle Cu-Mo separation tests.
- Molybdenum recoveries averaged 84.3% and concentrate grades averaged of 1.18% Mo from nineteen locked-cycle Cu-Mo bulk tests. Molybdenum recoveries averaged 72.3% and concentrate grades averaged of 0.85% Mo from three bulk Cu-Mo locked-cycle Cu-Mo separation test. Molybdenum stage recoveries average 87.2% and concentrate grade averaged 58.8% Mo. The overall combined molybdenum recoveries averaged 65.2%.
- Silver recoveries averaged 71.1% from nineteen bulk Cu-Mo locked-cycle flotation tests and averaged 71.8% from the three locked-cycle Cu-Mo separation tests, with concentrate grades averaging 120 g/t Ag for all locked-cycle tests.
- Eighteen grindability tests produced an average Bond Rod Mill Work index (RWi) of 13.8 kWh/t and an average Bond Ball Mill Work Index (BWi) of 10.5 kWh/t, indicating average hardness of mineralized material.
Robert Wares, CEO and Chairman of the Board, commented: "Preliminary testwork on Copper Mountain material has produced excellent numbers. At approximately 92% average copper recoveries and 65% molybdenum recoveries, these results indicate that Gaspé Copper should produce both copper and molybdenum concentrates with excellent metal grades and a payable silver credit added to the copper concentrate. These results have surpassed expectations relative to historical numbers from past production at Copper Mountain and will provide positive input into ongoing PEA work. Pending multi-element analyses of final concentrates will provide trace element data that will establish if any smelter penalty thresholds are reached, and this additional information will be disclosed as soon as possible. Work on the updated Mineral Resource Estimate (MRE) for Copper Mountain is also progressing well and we expect to release the new MRE in the coming weeks."
Metallurgical Testwork
A bench-scale metallurgical test work program was undertaken at Base Metallurgical Laboratories located in Kamloops British Columbia. The testwork program included:
1) Sample Characterization;
2) Grindability;
3) Conventional flotation flowsheet and reagent schemes;
4) Batch and locked-cycle Cu-Mo bulk flotation tests to produce copper (Cu) and molybdenum (Mo) concentrates;
5) Composite Cu-Mo bulk flotation followed by Cu-Mo separation tests;
6) Head grades tested ranged from 0.21% to 0.90% copper, 44 to 1347 g/t molybdenum and 0.9 to 5.0 g/t silver;
Sample Selection
Eighteen composite samples, totaling of 1100 kg, produced from drill core providing a suitable range of copper grades were selected for metallurgical testing. Head assays for the eighteen composite samples ranged from 0.21% to 0.90% copper, 44 to 1347 g/t molybdenum, 0.9 to 5.0 g/t silver and 0.01 to 0.07 g/t gold. Table 1 provides drill hole intervals and composite head grades for the metallurgical samples:
Table 1 – Details of Metallurgical Sample Selection
Metallurgical Sample # | Hole ID | Interval From (m) -To (m) | Cu % | Mo (g/t) | Ag (g/t) |
MGMET23-01 | 30-1005 | 225.0 - 244.5 | 0.43 | 49 | 2.5 |
MGMET23-02 | 30-1005 | 868.5 - 891.0 | 0.90 | 721 | 4.6 |
MGMET23-03 | 30-1003 | 388.5 - 405.0 | 0.38 | 21 | 4.0 |
MGMET23-04 | 30-1003 | 717.0 - 744.0 | 0.52 | 1347 | 3.5 |
MGMET23-05 | 30-1003 | 1171.5 - 1191.0 | 0.26 | 122 | 1.1 |
MGMET23-06 | 30-1012 | 513.0 - 531.0 | 0.47 | 152 | 2.2 |
MGMET23-07 | 30-1006 | 547.5 - 565.5 | 0.32 | 197 | 1.2 |
MGMET23-08 | 30-1008 | 546.0 - 564.0 | 0.47 | 486 | 3.2 |
MGMET23-09 | 30-1011 | 424.5 - 442.5 | 0.47 | 247 | 1.3 |
MGMET23-10 | 30-1024 | 702.0 - 717.0 | 0.29 | 272 | 0.9 |
MGMET23-11 | 30-1021A | 388.5 - 408.0 | 0.33 | 312 | 1.4 |
MGMET23-12 | 30-1019 | 412.5 - 429.0 | 0.23 | 163 | 1.4 |
MGMET23-13 | 30-995 | 351.0 - 369.0 | 0.22 | 66 | 2.1 |
MGMET23-14 | 30-999 | 741.0 - 765.0 | 0.31 | 300 | 1.6 |
MGMET23-15 | 30-984 | 273.0 - 291.0 | 0.21 | 63 | 1.2 |
MGMET23-16 | 30-988 | 235.5 - 253.3 | 0.30 | 111 | 1.9 |
MGMET23-17 | 30-979 | 216.5 - 236.0 | 0.39 | 125 | 5.0 |
MGMET23-18 | 30-993 | 199.5 - 217.5 | 0.22 | 44 | 1.5 |
Testing Procedures
Composites were created based on the selected drill core intervals (Table 2). Once created each composite was stage crushed to nominal 1.5 inch (3.8 cm), representative mass was split out for SMC testing at the -31.5 mm and +26.5 mm range. Once SMC testing was completed the products were returned and the composites were again stage crushed to -½ inch (-1.3 cm) where 15 kg was removed for Rod Mill Work Index testing. The remaining mass was stage-crushed to -6 mesh. The crushed material was blended and split into 24 kg sub-lots, each sub-lot was rotary split into 2 kg charges. A single test charge was riffle split to remove 250 g for head assay. The head cuts were pulverized to 80% passing 75 µm.
Metallurgical samples comprising drill core were crushed, split and sub-sampled for comminution testwork and head assays. Samples were wet-grinded in a closed batch mill at 65% solids targeting the required grind size. Ground samples were discharged into a flotation cell and pulp-level adjusted to the appropriate volume and density for flotation testing. The pulp was conditioned with reagents before beginning flotation. A series of open-circuit batch rougher and cleaner flotation tests were undertaken to optimize flotation conditions prior to operating locked-cycle flotation tests. The combined rougher concentrate was dewatered ahead of regrinding while retaining the process water for the cleaner stage. The rougher concentrate was reground to a target size with the regrind discharge size confirmed by laser particle sizing. The reground product was cleaned in successive dilution stages. The final concentrate and intermediate tails were filtered and dried separately in a low temperature oven before assaying.
The general approach to locked cycle testing was conducted as per the batch tests. Each cycle test was completed with 5 cycles, the rougher and 1 st cleaner were completed open circuit, the intermediate cleaner tailings were recirculated to the feed of each subsequent stage for the following cycle; that is the 3 rd cleaner tailing of cycle A was recirculated to the 2 nd cleaner Feed of cycle B, the 2 nd cleaner tail A was recirculated to the feed of the 1 st cleaner Feed B. This process continued for cycles C, D and E. All final products and final intermediate streams were filtered, dried, and assayed for metallurgical balancing. Locked cycle testing provides a methodology to best estimate steady-state metallurgical projections for a full-scale operation.
Reagents used for bulk Cu-Mo flotation included lime, potassium amyl xanthate (PAX), 3418A, and methyl isobutyl carbinol (MIBC). Nitrogen sparging, fuel oil, sodium hydrosulfide (NaHS) and MIBC were used for Cu-Mo separation.
Analysis was completed on pulverized sample splits using wet digestion methods for copper, molybdenum and silver. In each case, the samples were digested by a strong oxidization using a combination of Aqua-Regia, potassium chlorate and bromine. Copper was analyzed using atomic adsorption (AA) spectroscopy, and molybdenum and silver by inductively coupled plasma – optical emission spectroscopy (ICP-OES).
Metallurgical tests assay quality is evaluated by producing material balances of all products reconciled head which is compared to the direct head for all elements in consideration.
Grindability
Grindability tests were performed on each of the metallurgical samples. The average SMC Axb value was 46.6, average Bond Ball Mill Work index (BWi) was 10.49 kWh/t, average Rod Mill Work Index (RWi) was 13.89 kWh/t and average Abrasion index (Ai) was 0.384.
Batch Flotation Tests
A composite sample was initially tested with average copper grade to determine the optimal grind size for further flotation tests. Four (4) grind sizes ranging from 80% passing (P 80 ) of 66 microns to 125 microns were tested. P 80 of 75 microns was selected as the primary grind size for further testing.
Bulk Cu-Mo Locked-Cycle Flotation
Cu-Mo locked cycle tests (LCT) were performed at a grind size of 75 microns for the rougher stage with regrind to a target of 30 microns for the cleaner stages. Table 2 shows the bulk Cu-Mo concentrate grades and recovery results. Copper concentrate grades ranged from 17.1% to 30.9% with recoveries ranging from 86.1% to 95.7%. Molybdenum grades ranged from 0.08% to 2.74% with recoveries ranging from 75.7% to 92.3%.
Table 2. Bulk Cu-Mo LCT Results
Test ID | Sample ID | Concentrate grade | Recovery (%) | ||||
Cu % | Mo % | Ag (g/t) | Cu | Mo | Ag | ||
LCT25 | LOM Comp | 20.6 | 0.74 | 98 | 94.5 | 83.6 | 75.6 |
LCT66 | MGMET23-01 | 30.4 | 0.35 | 182 | 94.5 | 88.2 | 85.3 |
LCT49 | MGMET23-02 | 22.9 | 1.81 | 80 | 94.8 | 85.8 | 78.1 |
LCT59 | MGMET23-03 | 24.0 | 0.08 | 193 | 93.3 | 76.3 | 84.4 |
LCT67 | MGMET23-04 | 17.1 | 1.25 | 96 | 96.5 | 93.1 | 78.2 |
LCT60 | MGMET23-05 | 25.5 | 1.06 | 64 | 95.1 | 85.0 | 66.5 |
LCT50 | MGMET23-06 | 23.1 | 0.63 | 48 | 87.2 | 82.3 | 42.6 |
LCT61 | MGMET23-07 | 24.8 | 1.57 | 47 | 94.6 | 89.8 | 60.4 |
LCT62 | MGMET23-08 | 24.5 | 2.74 | 115 | 93.8 | 92.8 | 71.1 |
LCT51 | MGMET23-09 | 24.8 | 1.17 | 40 | 92.0 | 86.5 | 47.8 |
LCT52 | MGMET23-10 | 23.0 | 2.53 | 71 | 86.1 | 88.0 | 62.7 |
LCT65 | MGMET23-11 | 17.1 | 1.12 | 67 | 87.1 | 75.7 | 74.0 |
LCT53 | MGMET23-12 | 19.9 | 1.42 | 99 | 87.4 | 84.8 | 67.1 |
LCT56 | MGMET23-13 | 25.3 | 0.61 | 165 | 90.1 | 79.6 | 70.2 |
LCT64 | MGMET23-14 | 24.5 | 1.68 | 102 | 95.7 | 81.3 | 72.2 |
LCT57 | MGMET23-15 | 29.3 | 1.10 | 139 | 90.4 | 84.3 | 76.2 |
LCT68 | MGMET23-16 | 21.7 | 0.84 | 120 | 91.3 | 80.5 | 76.2 |
LCT54 | MGMET23-17 | 28.0 | 0.75 | 334 | 94.7 | 75.4 | 86.8 |
LCT55 | MGMET23-18 | 30.9 | 1.05 | 205 | 87.8 | 89.2 | 77.2 |
Average: | 24.1 | 1.18 | 119 | 91.9 | 84.3 | 71.1 |
Cu-Mo Separation
To produce molybdenum concentrates, due to the low feed concentrations, metallurgical samples were combined to produce three larger composite samples (low-, medium- and high-grade copper samples) for batch bulk flotation tests and subsequent Cu-Mo separation testing. Table 3 shows the composite sample head grades. Copper head grades ranged from 0.26% to 0.55%, molybdenum grades ranged from 135 to 234 g/t and silver head were consistently 2.2 g/t.
Table 3. Composite Sample Assays for Cu-Mo Separation Tests
Composite Sample | Metallurgical Samples | Head Grades | ||
Cu % | Mo (g/t) | Ag (g/t) | ||
MGMET23-02, MGMET23-06, | ||||
1 | MGMET23-09 | 0.55 1 | 198 1 | 2.2 1 |
MGMET23-03, MGMET23-05, | ||||
MGMET23-07, MGMET23-08, | ||||
2 | MGMET23-11, MGMET23-14, | 0.32 | 234 | 2.2 |
MGMET23-16 | ||||
MGMET23-10, MGMET23-12, | ||||
3 | MGMET23-13, MGMET23-15, | 0.26 | 135 | 2.2 |
MGMET23-17, MGMET23-18 |
1 Calculated head grade
Multiple large batch flotation tests were performed for each composite sample to produce bulk Cu-Mo concentrates followed by Cu-Mo separation tests. Three Cu-Mo separation locked-cycle tests were performed at a grind size of 30 microns for the rougher stage with regrind to a target of 15 microns for the cleaner stages. Table 4 shows final copper concentrate grades and recoveries for the locked-cycle tests. Copper grade ranged from 22.2% to 30.9% with recoveries ranging from 92.3% to 96.6%.
Table 4. Copper Concentrate Assays and Recoveries
Composite Sample | Assay | Recoveries % | ||||
Cu % | Mo % | Ag (g/t) | Cu | Mo | Ag | |
1 2 3 | 30.9 22.2 28.6 | 0.1 0.1 0.1 | 92 76 162 | 96.6 92.3 92.7 | 8.1 9.1 9.5 | 70.1 58.2 75.5 |
Table 5 shows final molybdenum concentrate grades and recoveries for the locked-cycle tests. Molybdenum grade ranged from 55.7% to 60.7% with recoveries ranging from 57.7% to 70.7%.
Table 5. Molybdenum Concentrate Assays and Recoveries
Composite Sample | Assay | Recoveries % | ||||
Cu, % | Mo, % | Ag (g/t) | Cu | Mo | Ag | |
1 2 3 | 0.35 1.03 0.55 | 60.0 55.7 60.7 | 29 33 48 | 0.01 0.08 0.02 | 57.7 67.3 70.7 | 0.3 0.5 0.3 |
Full multi-element analyses of final concentrates are pending and further testing is planned during 2024 to further optimize metallurgical performance.
Qualified Person
Christian Laroche is a consultant for Synectiq Inc. and the independent Qualified Person ("QP") responsible for the technical data related to all testing reported in this press release. Mr. Laroche is a registered member of the Ordre des Ingénieurs du Québec.
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 15.7 Mt grading 5.55% ZnEq of Indicated Mineral Resources and 47.2 Mt 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 was prepared for Osisko Metals and PPML by representatives of BBA Engineering Inc., HydroRessources 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, with paved highway access, an electrical substation, as well as 100 kilometres of viable haulage roads.
In addition, the Company also acquired in July 2023, 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 Deposit that hosts (in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects) an Inferred Mineral Resource 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 456 Mt 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.
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
Follow Osisko Metals on Facebook at https://www.facebook.com/osiskometals/ , on LinkedIn at https://www.linkedin.com/company/osiskometals/ , and on X at https://twitter.com/osiskometals .
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 Pine Point and Gaspé Copper Projects, including, among other things, the results of the 2022 PEA on Pine Point and the IRR, NPV and estimated costs, production, production rate and mine life; 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 metal concentrates; the potential economic impact of the projects on local communities, including but not limited to the potential generation of tax revenues and contribution of jobs; the timing and ability for Projects to reach construction decision (if at all); the estimated costs to take the Projects to construction decision (if at all) 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; Gaspé Copper hosting the largest undeveloped copper resource in Eastern North America and Glencore becoming a Control Person of the Company.
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 Pine Point joint-venture parties to fund cash calls to advance the development of the Pine Point Project and pursue planned exploration and development; future spot prices of copper, zinc, lead and molybdenum; the timing and results of exploration and drilling programs; the accuracy of mineral resource estimates; production costs; 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 mining equipment and positive relations with local communities and 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 TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture 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.
News Provided by GlobeNewswire via QuoteMedia
Osisko Metals Grants Stock Options
Osisko Metals Incorporated (the " Company " or " Osisko Metals ") ( TSX-V: OM ; OTCQX: OMZNF ; FRANKFURT: 0B51 ) wishes to announce that the Company's Board of Directors have approved the grant of incentive stock options to directors, officers, employees and consultants to purchase up to an aggregate of 1,935,000 common shares in the capital stock of the Company. Grants are subject to a three-year vesting period and a five-year term at an exercise price of $0.155 per share.
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 on the south shore of Great Slave Lake, near infrastructure, with paved highway access, an electrical substation, as well as 100 kilometres of viable haulage roads.
In addition, the Company also acquired in July 2023, from Glencore Canada Corporation, a 100% interest in the past-producing Gaspé Copper Mine, located near Murdochville in the Gaspé peninsula of Québec. Gaspé Copper hosts the largest undeveloped copper resource in Eastern North America, strategically located near existing infrastructure in the mining-friendly province of Québec.
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
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture 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.
News Provided by GlobeNewswire via QuoteMedia
Ero Copper and Vale Base Metals Execute Definitive Earn-In Agreement on the Furnas Copper Project
Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero" or the "Company") is pleased to announce that it has signed a definitive earn-in agreement ("Agreement") with Salobo Metais S.A, a subsidiary of Vale Base Metals Limited ("VBM"), to earn a 60% interest in the Furnas Copper Project ("Furnas" or the "Project") located in the Carajás Mineral Province in Pará State, Brazil.
The terms of the Agreement align with the previously signed binding term sheet outlined in the Company's press release dated October 30, 2023. For additional detail on the Project, including location maps, geologic cross sections, historical drill intercepts and a description of the Company's work programs, please refer to the Company's press release dated October 30, 2023.
ABOUT ERO COPPER CORP
Ero is a high-margin, high-growth, low carbon-intensity copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C. The Company's primary asset is a 99.6% interest in the Brazilian copper mining company, Mineração Caraíba S.A. ("MCSA"), 100% owner of the Company's Caraíba Operations (formerly known as the MCSA Mining Complex), which are located in the Curaçá Valley, Bahia State, Brazil and include the Pilar and Vermelhos underground mines and the Surubim open pit mine, and the Tucumã Project (formerly known as Boa Esperança), an IOCG-type copper project located in Pará, Brazil. The Company also owns 97.6% of NX Gold S.A. ("NX Gold") which owns the Xavantina Operations (formerly known as the NX Gold Mine), comprised of an operating gold and silver mine located in Mato Grosso, Brazil. Additional information on the Company and its operations, including technical reports on the Caraíba Operations, Xavantina Operations and Tucumã Project, can be found on SEDAR+ at www.sedarplus.ca/landingpage/ and on EDGAR ( www.sec.gov). The Company's shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol "ERO".
FOR MORE INFORMATION, PLEASE CONTACT
Courtney Lynn, SVP, Corporate Development, Investor Relations & Sustainability
(604) 335-7504
info@erocopper.com
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Seismic Disruptions Could Cost Copper and Rhenium Industries Billions, USGS Study Shows
Astudy published by the US Geological Survey shows that earthquakes can have a "substantial" impact on mining, smelting and refining operations, creating lasting impacts for the global economy and supply chains.
Focusing on copper and rhenium, a silver-gray transition metal, the study aims to quantify the risks that earthquakes pose to supply — a variable that has not previously been systematically categorized.
Copper production and risks
According to the study, many of the world's largest copper and rhenium production facilities are located in regions prone to high seismic activity, such as South America, East Asia and the Pacific.
Chile and Peru are particularly significant for copper, taking the first and second spots for global output.
The US Geological Survey notes that 76 out of 101 combined copper-producing facilities in both countries are located in areas with a high probability of experiencing significant seismic activity within the next 50 years.
The analysis estimates the expected annual disruption (EAD) of global copper production due to earthquakes, noting that it ranges from 0.3 to 1.1 percent of worldwide production. Smelters fall between the 1.8 and 4 percent bracket, while refineries are within the 1.5 to 3.3 percent range.
The potential financial impact of these disruptions is substantial. The study estimates revenue loss from earthquake-induced disruptions to range from US$315 million to US$1.29 billion for copper mining, US$1.92 billion to US$4.33 billion for copper smelting and US$2.06 billion to US$4.52 billion for copper refining.
Rhenium production and risks
Rhenium, a by-product of copper and molybdenum mining, is crucial for making superalloys used in jet engines.
The US Geological Survey study identifies 12 major rhenium production facilities globally, with significant capacities located in the US, Chile and South Korea. Like copper facilities, many rhenium production sites are in high-risk seismic zones, such as parts of East Asia, posing a similar threat to their production stability.
In terms of impact, rhenium has an EAD of 0.32 to 1.32 percent. The study tallies estimated revenue loss in disrupted rhenium production to range from US$337,000 to US$1.4 million.
Implications for global supply chain and economy
The study further underscores the tangible effects of disrupted supply chains to the global economy, such as higher prices for commodities, production delays and economic losses across sectors dependent on these minerals.
While the ability of unaffected facilities to ramp up production and compensate for losses is a mitigating factor, the overall economic impact would still be significant, especially for countries heavily reliant on copper and rhenium.
Dr. Kishor Jaiswal, a US Geological Survey research structural engineer and lead author of the study, believes that the framework produced by the study can help national governments and key producers make crucial decisions, and can serve as a template for similar studies on other mineral commodities.
“While our study assessed the potential for the disruption to the supplies of copper and rhenium due to earthquake hazards, this published framework will serve as a template for other mineral commodities of interest around the world,” he explained in a Thursday (July 18) press release.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Top 5 Copper Stocks on the TSX in 2024
Copper prices saw some gains during the first quarter of the year, but supply concerns and rising demand caused the copper price to surge in Q2 to a record high on the COMEX of US$5.20 per pound, or US$11,464 per metric ton, on May 20.
Although strong demand from the energy transition has been expected to impact supply chains for some time, lower treatment charges from Chinese refiners during the first quarter introduced added pressure into the market. The low charges caused cuts to output, ultimately bottlenecking the supply of refined copper to end users.
How have TSX-listed copper companies performed since the start of 2024? Learn about the top 5 best performing copper stocks in 2024 below.
1. Taseko Mines (TSX:TKO)
Year-to-date gain: 75 percent; market cap: C$941.54 million; share price: C$3.22
Taseko Mines is a copper producer and development company and holds a portfolio of assets in British Columbia, Canada and Arizona, US.
Its primary asset is the Gibraltar mine located in Central BC. The mine is Canada’s second largest open-pit copper mine after Teck Resources' (TSX:TECK.A,TECK.B,NYSE:TECK) Highland Valley mine. Gibraltar boasts an 85,000 MT per day processing capacity and in 2023 produced 123 million pounds of copper.
On March 25, Taseko acquired 100 percent ownership of the Gibraltar mine after it entered into an agreement with Dowa Metals and Mining (TSE:5714) and Furukawa (TSE:5715) to purchase the remaining 12.5 percent interest in the property. The company said the agreement was made as both Dowa and Furukawa are divesting themselves of their copper-mining investments.
On June 1, Taseko announced that operations at Gibraltar had been suspended due to strike action being carried out by mine workers. The strike lasted approximately two weeks, with the company and union coming to terms on a new agreement.
The company announced on June 19 that the union ratified the agreement and that operations restarted at concentrator 2. It added that concentrator 1 would continue to remain offline while the crusher relocation project and general maintenance are completed.
Shares in Taseko reached a year-to-date high of C$4.05 on May 27.
2. Alta Copper (TSX:ATCU)
Year-to-date gain: 72.22 percent; market cap: C$52.2 million; share price: C$0.62
Alta Copper is a copper exploration company that is working to advance its flagship Cañariaco project in Northern Peru. The project includes the Cañariaco Norte and Cañariaco Sur deposits and the Quebrada Verde prospect.
On May 15, the company released figures from an optimized preliminary economic assessment. In the report, the company indicated a base case pre-tax net present value of US$4.1 billion with an internal rate of return of 32.4 percent based on copper prices of US$4 per pound along with all-in sustaining costs of US$1.96 per pound of copper.
On the production side, Alta reported the projected life of the mine was 27 years, with an average annual metal production in the first 10 years of 347 million pounds of copper, 70,000 ounces of gold and 1.5 million ounces of silver.
In a follow-up technical report released on June 11, Alta shared updated resources for its project at cutoff grades of 0.1 percent copper. According to the report, Cañariaco Norte hosts measured and indicated resources of 9.33 billion pounds copper, 2.16 million ounces of gold and 60.37 million ounces of silver from 1.13 billion metric tons (MT) of ore, as well as additional inferred resources of 2.41 billion pounds of copper, 520,000 ounces gold and 16.9 million ounces of silver from 416 million MT of ore.
The company also reported inferred resources for the Cañariaco Sur deposit, with 2.52 billion pounds of copper, 1.34 million ounces gold, 17.61 million ounces of silver and 24.04 million pounds of molybdenum.
Shares in Alta reached their year-to-date high of C$0.79 on May 20.
3. Hudbay Minerals (TSX:HBM)
Year-to-date gain: 67.61 percent; market cap: C$4.94 billion; share price: C$12.18
Hudbay Minerals is a copper production and development company with producing mines in Peru and Canada, as well as projects in Peru and the US states of Arizona and Nevada.
According to Hudbay’s Q1 results, the Constancia mine and neighboring Pampacancha satellite pit in Peru produced a combined 24,576 MT of copper in the first three months of 2024. Copper Mountain in BC produced 7,024 MT of copper and Snow Lake in Manitoba produced an additional 3,149 MT of copper.
In addition to its mining assets, the company is also working to advance its Copper World project in Arizona. In the Q1 report the company indicated it is continuing to work on receiving the final state permits for the site and expects to receive them sometime in 2024. The company is also in the process of completing a three prerequisites plan that is required for sanctioning which it expects in 2025.
When complete, the mine is expected to have a 20 year life span, and according to a mineral resource estimate included in a March 28 annual reserve and resource update, Hudbay reported proven and probable average grades of 0.54 percent copper from 385 million MT.
The company is also working on its greenfield Mason project in Nevada. Hudbay says it is developing the project as a long-term future asset and expects it to have a 27 year lifespan.
Resource estimates from the site show measured and indicated average grading of 0.29 percent from 2.22 billion MT of ore, with additional inferred grading of 0.24 percent from 237 million MT.
On May 24, the company announced it had completed an upsized bought deal offering, generating proceeds of US$402.5 million for the sale of 42.37 million common shares at US$9.50 per share. The company said it intends to use funds for near-term growth initiatives and accelerate development at its Copper Mountain asset.
Shares in Hudbay reached a year-to-date high of C$14.15 on May 20.
4. First Quantum Minerals (TSX:FM)
Year-to-date gain: 64.23 percent; market cap: C$15.32 billion; share price: C$17.77
First Quantum Minerals is a copper mining and development company with a global portfolio of assets.
Its primary asset has been the Cobre Panama mine located west of Panama City, Panama. The mine boasts 3 billion MT of proven and probable reserves and represents 1 percent of the World’s copper supply. The mine was ordered to close down in November 2023 after the Panamanian Supreme Court invalidated an extension to the mine's license.
In a December 2023 release, the company said it was working on developing a closure plan for the mine that it expects to present in June 2024, but also noted it is pursuing all appropriate legal avenues to protect its investment and rights.
In the company’s Q1 2024 financial update, released on April 24, First Quantum said it was continuing to work on a preservation and safe management plan for Cobre Panama, and was also working to deliver the 121,000 MT of concentrates that remain on site.
Due to the ongoing situation in Panama, the company noted that it has undergone a refinancing program to improve its balance sheet and improve liquidity. This program has included working out a prepayment agreement with Jiangxi Copper for US$500 million, the completion of a US$1.6 billion senior secured second-lien at 9.38 percent due in 2029, and the issuance of 139.93 million common shares to raise proceeds of US$1.15 billion.
In addition to the updates on its mine in Panama, First Quantum reported the production of 100,605 MT of copper through Q1, down 59,595 MT compared to Q4 2023. The production drop was largely attributed to the closure of Cobre Panama.
The company is also operating several mines in Zambia, including its Kansanshi copper-gold mine, Sentinel copper mine and Enterprise nickel mine. First Quantum noted that production may be impacted in 2024 due to severe drought conditions in Zambia caused by El Nino, which reduced water levels in the Kafue and Zambezi rivers. This led the government to declare a national emergency in March, and power generation throughout the country has been impacted.
First Quantum has been working to mitigate these challenges and entered into offtake agreements with third-party traders for power sourced from the Southern African Power Pool for a total of 80 megawatts. The agreements are expected to cost US$25 million.
Shares of First Quantum reached a year-to-date high of C$20.00 on May 20.
5. Capstone Copper (TSX:CS)
Year-to-date gain: 53.3 percent; market cap: C$7.81 billion; share price: C$9.74
Capstone Copper is a mining company with a portfolio of assets in the US, Mexico and Chile.
Capstone's 100 percent owned Pinto Valley copper mine in Arizona, US, is fully permitted until 2039 and is expected to produce 58,000 to 64,000 MT of copper in 2024. Capstone acquired Pinto Valley from BHP in 2013, and the mine has produced more than 4 billion pounds of copper since it began operating in 1972.
It also is the sole owner of the Cozamin copper and silver mine in Zecatacas, Mexico, which boasts a 1,000 MT per day throughput and is projected to generate 22,000 to 24,000 MT of copper in 2024, as well as the Mantos Blancos copper mine in Antofagasta, Chile, which underwent an expansion in 2021 to extend its mine life significantly.
The company also owns a 70 percent stake in the Mantoverde mine in the Atacama region of Chile, with the remaining 30 percent owned by Mitsubishi Materials (OTC Pink:MIMTF,TSE:5711). The mine is currently in the process of ramping up to commercial production, and Capstone announced on June 25 that it produced its first saleable copper concentrate. Capstone expects to achieve nameplate operating rates during Q3 of 2024.
Shares in Capstone reached a year-to-date high of C$11.20 on May 16.
FAQs for investing in copper
Is copper a good investment in 2024?
Many experts have a positive long-term outlook for the red metal based on supply concerns and its growing role in the energy transition. Copper's price has climbed to new all time highs in 2024, bringing many stocks with it.
Investors who are interested in copper should make sure to perform their due diligence, as the volatility and unpredictability of markets and economies at the moment means that nothing is guaranteed.
What is copper used for?
Copper is used in many industries, from construction to electronics to medical equipment. In fact, in 2020, 32 percent of copper globally was used in equipment manufacturing and 28 percent in building construction.
Two other growing sectors for copper are the burgeoning electric vehicle and green energy industries. Electric vehicles require a significant amount of the red metal per vehicle.
How to invest in copper?
Investors can get exposure to copper in a variety of ways. Holding physical copper is possible, but plenty of storage would be required to hold any significant value of the metal.
For investors looking to invest in the metal without physically holding it, there are a few options. Copper stocks such as those on the TSX, TSXV and ASX are worth looking at. Additionally, there are copper exchange-traded funds and the copper options and futures markets on the London Metal Exchange.
How to invest in a copper ETF?
Copper exchange-traded funds (ETFs) can be a good way to diversify an investment portfolio, and they can be a more stable option compared to individual copper miners or explorers. There are multiple options available on the market, and they can usually be purchased in the same way one could purchase stocks through a broker or trading platform.
In May 2022, Horizons launched Canada’s first copper equities ETF, the Horizons Copper Producers Index ETF (TSX:COPP), which is focused solely on pure-play and diversified copper-mining companies.
There are two ETFs available on the US ARCA exchange as well. The Global X Copper Miners ETF (ARCA:COPX) tracks the Solactive Global Copper Miners Index, which includes copper miners, as well as copper explorers and developers. The other option is the United States Copper Index Fund (ARCA:CPER), which gives investors exposure to copper futures contracts by tracking the SummerHaven Copper Index Total Return (INDEXNYSEGIS:SCITR).
How is copper priced?
The copper price is tracked in two ways: COMEX copper and London Metal Exchange (LME) copper. The COMEX and LME are both options and futures metal exchanges, with the former being headquartered in New York and the latter in London. COMEX copper is priced by the pound, while LME copper is priced per metric ton.
How is copper processed?
Once copper is mined, the ore goes through multiple steps to reach a market-ready state. First, the ore is ground to roughly separate the rock from the copper, as copper typically only makes up 1 percent of the mined rock.
The resultant copper is then slurried with water and chemical reagents, after which air is used to float the copper to the top of the mixture. After the copper is removed from this, it is typically at 24 to 40 percent purity.
Lastly, the copper is refined at a refining plant or smelter using one of two methods, pyrometallurgy and hydrometallurgy. Pyrometallurgy is employed for copper ore that is sulfide rich, while hydrometallurgy is used when the ore is oxide rich. The Investing News Network's guide on copper refining goes into further detail about how those processes work. Once these processes are complete, the copper is concentrated to up to 99.99 percent purity.
Where is copper mined?
Copper is mined throughout the world, with significant production found on every continent besides Antarctica. Chile was the top producer in 2022, putting out 5 million metric tons of the metal. Rounding out the top five are Peru with 2.6 million MT, the Democratic Republic of Congo with 2.5 million MT, China with 1.7 million MT and the United States with 1.1 million MT.
Article by Dean Belder; FAQs by Lauren Kelly.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
Top 5 Junior Copper Stocks on the TSXV in 2024
Many Canadian junior copper stocks are up significantly in 2024 thanks to a strong copper price.
The second quarter of 2024 saw carried-over momentum from March. Easing inflation and speculation of a manufacturing rebound fueled broad gains in commodity markets, helping to push COMEX copper prices to a record high of US$5.20 per pound, or US$11,464 per metric ton, on May 20.
Prices have found support over demand growth from energy sectors as wind and solar projects see greater uptake, particularly in China and India.
Even though there has been some slow down in the pace of electric vehicle growth, automakers have begun increasing their production of hybrids, which also require more copper than vehicles with internal combustion engines.
With the demand for copper set to soar within the next several years, has this elevated pricing helped small-cap copper explorers on the TSXV?
These are the five best-performing junior copper stocks since the start of 2024. Data for this article was gathered on April 24, using TradingView's stock screener, and all companies had market caps of over C$10 million at that time. Read on to see what's been moving their share prices.
1. Sandfire Resources America (TSXV:SFR)
Year-to-date gain: 283.33 percent; market cap: C$353.06 million; share price: C$0.345
Sandfire Resources America is a copper development company focused on its Black Butte copper project located east of Helena, Montana, in the US. In 2021, a state district court revoked the company's mine operating permit for Black Butte, halting construction activities of the underground mine.
Sandfire describes the project as one of the highest grade undeveloped copper deposits in the world; a resource estimate for the project's Johnny Lee deposit completed in 2020 reported measured and indicated resources of 10.9 million metric tons (MT) grading 2.9 percent copper for a total of 311,000 MT contained copper.
Shares of Sandfire soared following a February 26 decision by the Montana Supreme Court to reinstate the company's mine operating permit. The win is a crucial step for Sandfire to continue the construction of its mine.
Sandfire is working to improve Black Butte's economics as it works towards a final investment decision. The most recent update from the project came on April 30, when the company released an exploration update that highlighted high-grade copper intercepts of 7.4 percent copper over 9.54 meters, including an intersection of 10.7 percent over 6.26 meters.
Shares of Sandfire Resources America reached a year-to-date high of C$0.395 on May 13.
2. Koryx Copper (TSXV:KRY)
Year-to-date gain: 268.89 percent; market cap: C$38.47 million; share price: C$0.83
Formerly Deep-South Resources, the company announced in November 2023 that it would be changing its name to Koryx Copper to better represent its core values. The company is focused on the advancement of copper exploration projects in Namibia and Zambia.
Its flagship asset is the Haib copper project located in Southern Namibia near the border with South Africa. In an amended preliminary economic assessment released on January 8, the company indicated 20 million MT per year of ore processing with 85 percent copper recovery for a yearly production of 38,337 MT of copper and an additional 51,081 MT of copper sulfate.
Since the start of 2024, Koryx has published several assay results from exploration at Haib, with the most recent coming on May 15. In the announcement, the company highlighted grades of 0.51 percent copper over 137.6 meters, including an intersection of 0.68 percent copper over 72 meters.
According to Koryx President and CEO Pierre Léveillé, the results indicate the deposit's average grade may exceed the one reported in its existing mineral resource estimate. Assay results for the remaining eight drill holes from the program have yet to be released.
Shares of Koryx reached a year-to-date high of C$1.13 on June 10.
3. T2 Metals (TSXV:TWO)
Year-to-date gain: 230.43 percent; market cap: C$10.98 million; share price: C$0.38
T2 Metals is a copper exploration company that has spent 2024 focusing on advancing its Sherridon copper, gold and zinc project near Flin Flon, Manitoba, Canada.
T2 holds an option agreement with Halo Resources to earn a 90 percent interest in the property, which consists of 28 mining claims and one mineral lease over 4,968 hectares. The site was home to the Sherridon/Sherritt Gordon mine and hosts multiple volcanogenic massive sulfide-style ore deposits.
Today, Sherridon hosts several inferred resources with near-surface targets discovered having been identified with limited drilling activity. T2 has been working to advance exploration activities in early 2024, with the latest update coming on March 1, when it reported assays of 1.18 percent copper or 7.4 percent copper equivalent over 23.5 meters, including an intersection of 2.48 percent copper or 25 percent copper equivalent over 8.67 meters.
Shares in T2 surged toward the end of the second quarter when the company released news on June 7 that it had received a C$300,000 development grant from Manitoba’s Mineral Development Fund to advance exploration at Sherridon. The company said planning and permitting were underway for both follow-up drilling and testing additional targets on the site.
T2's share price reached a year-to-date high of C$0.41 on July 7.
4. Freeport Resources (TSXV:FRI)
Year-to-date gain: 200 percent; market cap: C$18.45 million; share price: C$0.075
Freeport Resources is focused on the advancement of its Yandera copper, gold and molybdenum project located in Madan, Papua New Guinea. Yandera covers an area of 245.5 square kilometers and has been explored since the 1960s. Freeport acquired the project in August 2021, when it bought out Carpo Resources and its subsidiary Era Resources.
A 2017 prefeasibility study commissioned by Era projects a net present value of US$1.04 billion with an internal rate of return of 23.5 percent and a payback period of five years and eight months. It also shows measured and indicated resources of 2.81 million MT of contained copper equivalent and a projected mine life of 20 years.
This past February, Freeport announced that it had been granted a two year extension for its exploration license from the government of Papua New Guinea.
The most recent news came on July 2, when the company announced that it had closed an oversubscribed private placement and for proceeds of C$5.2 million. Freeport said the funds would be used to complete an internal optimization of the Yandera copper project and to advance a definitive feasibility study.
Shares in Freeport reached a year-to-date high of C$0.09 on July 3.
5. American Eagle Gold (TSXV:AE)
Year-to-date gain: 179.25 percent; market cap: C$75.59 million; share price: C$0.74
American Eagle Gold is a copper and precious metals exploration company working to advance its NAK property in Central BC, Canada.
Hosted within the Babine copper-gold district, the NAK property has seen historical exploration dating back to the 1960s. American Eagle completed the acquisition of the site in December 2021.
On January 8, the company announced results from the final hole of its 2023 program, which returned the highest grading seen in the program. It reported a large 302 meter intersection containing 0.53 grams per metric ton (g/t) gold, 0.4 percent copper, 1.27 g/t silver and 431.4 parts per million molybdenum.
On May 27, the company announced it had commenced its phase 3 drill program at NAK. The company said the 15,000 meter drill program would be focusing on testing areas surrounding existing mineralization and connecting zones drilled in 2022 and 2023 programs.
In an update from the project on July 2, American Eagle said that it had discovered a copper-bearing outcrop in a previously untested zone in the southeastern region of the project area.
Shares of American Eagle reached a year-to-date peak of C$0.81 on May 9.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Chinese Copper Smelters to Trim Output in Response to Falling Margins
Two Chinese copper smelters have announced plans to reduce production next year due to diminishing profit margins caused by an ongoing shortage of ore concentrate, Bloomberg reported on Tuesday (July 16).
These decisions were revealed during a quarterly meeting of Chinese smelters held in Shanghai last week.
Daye Nonferrous Metals, a major smelter based in the country's Hubei province, plans to cut its smelting output by 20 percent in 2025. The company has already implemented smaller reductions, resulting in a decline in its total refined copper production capacity, which now stands at 930,000 metric tons on an annual basis.
Baotou Huading Copper Industry Development, a smaller firm with an annual capacity of 200,000 metric tons of blister and 30,000 metric tons of refined copper, plans to cut its smelting output by 40 percent next year. According to Bloomberg, the company already reduced its output by 20 percent last month due to a concentrate shortage.
The imbalance between mine supply and smelting capacity has been squeezing the profit margins of smelters. This situation has been exacerbated by the continuous expansion of smelting facilities across Asia.
Processing fees, known as treatment charges, have collapsed to near zero in the spot market. Most smelters are able to get the majority of their supply at better annual terms, but these terms may also be set to drop sharply.
These factors have contributed to bullish market sentiment, driving copper to record highs earlier this year. The red metal hit its highest recorded price of US$5.20 per pound, or US$11,464 per metric ton, on May 20 of this year. This move is part of a long-term upward trend, with prices having increased over 500 percent since January 2000.
In addition to production challenges, the global copper market is experiencing shifts in demand patterns.
The State Grid Corporation of China, the world's largest buyer of copper, has slowed its purchases of copper wire this year and increased its purchases of aluminum wire, a cheaper substitute.
However, some traders and industry executives believe the substitution of copper with aluminum is a temporary response to high prices rather than a permanent shift.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Hudbay to Host Conference Call for Second Quarter 2024 Results
Hudbay Minerals Inc. ("Hudbay" or the "company") ( TSX, NYSE: HBM) senior management will host a conference call on Tuesday, August 13, 2024 at 11:00 a.m. ET to discuss the company's second quarter 2024 results.
Second Quarter 2024 Results Conference Call and Webcast | |
Date: | Tuesday, August 13, 2024 |
Time: | 11:00 a.m. ET |
Webcast: | www.hudbay.com |
Dial in: | 1-844-763-8274 or 647-484-8814 |
Hudbay plans to issue a news release containing the second quarter 2024 results before market open on Tuesday, August 13, 2024 and post it on the company's website. An archived audio webcast will be available on Hudbay's website following the call.
About Hudbay
Hudbay (TSX, NYSE: HBM) is a copper-focused mining company with three long-life operations and a world-class pipeline of copper growth projects in tier-one mining-friendly jurisdictions of Canada, Peru and the United States.
Hudbay's operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and the Copper Mountain mine in British Columbia (Canada). Copper is the primary metal produced by the company, which is complemented by meaningful gold production. Hudbay's growth pipeline includes the Copper World project in Arizona (United States), the Mason project in Nevada (United States), the Llaguen project in La Libertad (Peru) and several expansion and exploration opportunities near its existing operations.
The value Hudbay creates and the impact it has is embodied in its purpose statement: "We care about our people, our communities and our planet. Hudbay provides the metals the world needs. We work sustainably, transform lives and create better futures for communities." Hudbay's mission is to create sustainable value and strong returns by leveraging its core strengths in community relations, focused exploration, mine development and efficient operations.
For further information, please contact:
Candace Brûlé
Vice President, Investor Relations
(416) 814-4387
investor.relations@hudbay.com
News Provided by GlobeNewswire via QuoteMedia
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