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 Provides Corporate Update
Osisko Metals Incorporated (the "Company or "Osisko Metals") (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) today announces a change to management and the grant of options as outlined below:
On April 6, 2023, the successful closing of the joint venture transaction between the Company and a subsidiary of Appian Natural Resources Fund III LP (“Appian”) resulted in the formation of a joint venture for the advancement of Osisko Metals’ Pine Point Project (the “Transaction”), called Pine Point Mining Limited (PPML). The Company confirms that as of September 30, 2023, Mr. Jeff Hussey will step down as President and Chief Operating Officer of Osisko Metals and transition full-time to PPML (holder of the Pine Point Project) as Chief Executive Officer. Mr. Hussey remains a member of Osisko Metals’ Board of Directors. The Company would like to thank Mr. Hussey for his contributions over the years and looks forward to continuing to benefit from his expertise in his new role at PPML, of which the Company currently retains a 67% interest.
“It has been a unique pleasure to be part of the Osisko Metals team from its inception and have had the opportunity to interact with the larger group of Osisko companies,” said Mr. Hussey. “The Company’s joint venture with Appian will enable us to advance the Pine Point Project to ‘shovel ready’ status. The Pine Point JV Team and our collaborators are outlining options for the final conceptual design, working towards initiating the feasibility study. Work has also begun on the regulatory process to obtain the permits necessary to construct and operate the mine. We are engaging and working with local communities to realize benefits for them from the future mine, and we sincerely appreciate their support in helping us reach this development milestone for the project. Going forward you can reach me through our Pine Point website, www.pinepointmining.com, or by email at: info@pinepointmining.com.”
Grant of Options
Osisko Metals wishes to announce that the Company’s Board of Directors have approved the grant of incentive stock options to certain directors to purchase up to an aggregate of 400,000 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 $0.19 per share.
About Osisko Metals
Osisko Metals Incorporated is a Canadian exploration and development company creating value in the critical metals space, specifically copper and zinc. The Company is a joint venture partner with Appian Natural Resources Fund III LP for the advancement of one of Canada’s premier past-producing zinc mining camps, the Pine Point project (the “Pine Point Project”), located in the Northwest Territories, for which the 2022 PEA (as defined herein) has indicated an after-tax NPV of C$602 million and an IRR of 25%, based on long-term zinc price of US$1.37/lb and the current mineral resource estimates that are amenable to open pit and shallow underground mining. The current mineral resource estimate in the 2022 PEA consists of 15.7Mt grading 5.55% ZnEq of indicated mineral resources and 47.2Mt grading 5.94% ZnEq of inferred mineral resources. Please refer to the technical report entitled “Preliminary Economic Assessment, Pine Point Project, Hay River, Northwest Territories, Canada” dated August 26, 2022 (with an effective date of July 30, 2022), which has been prepared for Osisko Metals and PPML by representatives of BBA Engineering Inc., Hydro-Resources Inc., PLR Resources Inc. and WSP Canada Inc. (the “2022 PEA”). Please refer to the full text of the 2022 PEA, a copy of which is available on SEDAR (www.sedar.com) under Osisko Metals’ issuer profile, for the assumptions, methodologies, qualifications and limitations described therein. The Pine Point Project is located on the south shore of Great Slave Lake in the Northwest Territories, near infrastructure, paved highway access, and has an electrical substation as well as 100 kilometres of viable haulage roads already in place.
In addition, the Company has acquired a 100% interest in the past-producing Gaspé Copper Mine, located near Murdochville in the Gaspé peninsula of Québec. The Company is currently focused on resource evaluation of the Mount Copper Expansion Project that hosts an inferred mineral resource (in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects) of 456Mt grading 0.31% Cu (see April 28, 2022 news release of Osisko Metals entitled “Osisko Metals Announces Maiden Resource at Gaspé Copper – Inferred Resource of 456Mt Grading 0.31% Copper”). Gaspé Copper hosts the largest undeveloped copper resource in Eastern North America, strategically located near existing infrastructure in the mining-friendly province of Québec.
For further information on this news release, visit www.osiskometals.com or contact:
Robert Wares, Chairman & CEO of Osisko Metals Incorporated
Email: info@osiskometals.com
www.osiskometals.com
Cautionary Statement on Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance are not statements of historical fact and constitute forward-looking information. This news release may contain forward-looking information pertaining to the Pine Point Project and Gaspé Copper, including, among other things, the results of the 2022 PEA 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; and the ability of Osisko Metals to become a premier base metal development company in Canada.
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management, in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including, without limitation, assumptions about: favourable equity and debt capital markets; the ability and timing for the parties to fund cash calls to advance the development of the Pine Point Project and pursue planned exploration and development; future prices of zinc and lead; the timing and results of exploration and drilling programs at Gaspé Copper and the Pine Point Project; the accuracy of mineral resource estimates; production costs; operating conditions being favourable; political and regulatory stability; the receipt of governmental and third party approvals; licenses and permits being received on favourable terms; sustained labour stability; stability in financial and capital markets; availability of equipment; the economic viability of the Pine Point Project; and positive relations with local groups. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information are set out in the Company’s public disclosure record on SEDAR (www.sedar.com) under Osisko Metals’ issuer profile. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the 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.
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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 |
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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
Potential Extension to 8 Mile Dam Gold Deposit Outlined by IP Survey at Gidji JV
Miramar Resources Limited (ASX:M2R, “Miramar” or “the Company”) is pleased to advise that Induced Polarisation (IP) surveys have upgraded the high-priority “8-Mile” Target within the Company’s 80%-owned Gidji JV Project and adjacent to Northern Star Resources Limited’s 313koz “8 Mile Dam” gold deposit.
- IP survey outlines potential extensions to 313koz 8 Mile Dam gold deposit
- Significant aircore EOH gold results above IP anomalies offset by faulting
- Drill testing at 8-Mile planned after maiden Bangemall Ni-Cu-Co-PGE drilling campaign
Miramar’s Executive Chairman, Mr Allan Kelly, said the new IP anomaly was shallower than expected.
“It appears the 8 Mile Dam deposit could continue for some distance to the north but has been offset by faulting, including at the tenement boundary,” he said.
“The fact that we have multiple aircore holes ending in elevated gold over the IP anomalies strengthens this theory,” he said.
“It’s also pleasing to see that the northern part of the IP anomaly is shallower than expected,” he added. “We look forward to drill testing this high priority target later in the year,” he said.
Figure 1. Collecting IP data at Miramar’s 8-Mile target.
Figure 2. IP anomalies and aircore EOH gold results in relation to the 8 Mile Dam gold deposit.
Background
According to publicly available data, the 8 Mile Dam gold deposit (7Mt @ 1.4g/t Au for 313,977oz1) comprises shallow supergene and deeper primary gold mineralisation hosted in:
- Quartz-carbonate-sulphide veins within hanging wall sediments; and
- A hydrothermally altered mafic unit cut by quartz veins with sphalerite, chalcopyrite and visible gold
Figure 3 shows a cross section through the deposit, approximately 60m south of the tenement boundary.
Click here for the full ASX Release
This article includes content from Miramar Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Top 5 ASX Copper Stocks of 2024
Copper has hit record highs in recent years, and after setbacks at the start of 2024 its fortune has begun to turn.
Prices rebounded to an all-time high on the COMEX of US$5.20 per pound, or US$11,464 per metric ton, on May 20 on tightening supply and increasing demand from the transition to renewable energy.
In the longer term, many market watchers see tight supply and higher consumption from sectors like the electric vehicle industry creating a robust outlook for copper.
Against that backdrop, the top ASX copper stocks have put on impressive year-to-date share price performances. The list below outlines the best performing copper stocks on the ASX, and was generated on June 26, 2024, using TradingView’s stock screener; all copper shares listed had market caps above AU$50 million at that time. Read on to learn more about them.
1. Encounter Resources (ASX:ENR)
Year-to-date gain: 93.1 percent; market cap: AU$252.01 million; share price: AU$0.56
Exploration-stage Encounter Resources controls a portfolio of wholly owned copper and niobium/rare earth projects in Australia's Northern Territory and Western Australia. The company is also advancing large-scale copper projects via partnership and farm-in agreements with South32 (ASX:S32,OTC Pink:SHTLF) and IGO (ASX:IGO).
The company's partners have released multiple news items this year. In March, IGO announced a significant copper anomaly discovery at the Yeneena project in Western Australia, for which IGO has a farm-in agreement.
The following month brought news out of the Jessica copper project in the Northern Territory, where a South32 subsidiary completed assays on drill core confirming "the presence of copper sulphide bearing veins and alteration signatures associated with iron oxide copper gold (IOCG) style mineralisation."
As for Encounter's wholly owned projects, the company reported significant copper mineralisation discovered during drilling at its Sandover copper project in the Northern Territory in mid-May.
Encounter's share price climbed to a year-to-date high of AU$0.62 on June 24.
2. Aeris Resources (ASX:AIS)
Year-to-date gain: 62.07 percent; market cap: AU$237.04 million; share price: AU$0.235
Aeris Resources has three primary copper assets in Australia, with two currently in production: the Tritton operations, and the North Queensland operations. The company recently placed its Jaguar zinc-copper operation on care and maintenance. Its portfolio also contains the producing Cracow gold mine in Queensland.
In its first quarter 2024 activities report, Aeris reported copper production of 5,900 tonnes. The company’s 2024 copper production guidance stands at 28,000 to 35,000 tonnes.
Aeris' pipeline includes the Stockman copper-zinc-gold-silver project in Victoria, and its Canbelego copper joint venture project in New South Wales. The company expects to complete a feasibility study at Stockman in the second half of 2024.
At Canbelego, Aeris’ JV partner Helix Resources’ (ASX:HLX) drill program testing an induced polarisation geophysics anomaly recently intersected a large new structural zone with associated copper mineralisation.
Aeris’ share price traded with the rising copper price to hit a year-to-date high of AU$0.34 on May 20.
3. Cyprium Metals (ASX:CYM)
Year-to-date gain: 43.33 percent; market cap: AU$64.04 million; share price: AU$0.043
Near-term copper producer Cyprium Metals is focused on developing multiple copper projects throughout Western Australia. Its most advanced is the Nifty copper mine project located in Western Australia's Pilbara region, which operated until 2019, when it was put on care and maintenance because of low copper prices.
In late May, Cyprium announced the completion of a positive scoping study on the restart of the Nifty copper mine, the results of which prompted a board decision to move the project to the pre-feasibility stage.
"A moderate investment in the brownfield processing plant capacity can nearly double the potential throughput of the plant, enabling the surface mine to produce around 36,000 tonnes of copper metal per year by matching strong mine design, right equipment selection and expanded processing capacity," Cyprium Executive Chair Matt Fifield commented.
Shares in Cyprium reach a year-to-date of high of AU$0.05 on June 7.
4. Bougainville Copper (ASX:BOC)
Year-to-date gain: 40 percent; market cap: AU$198.53 million; share price: AU$0.49
Bougainville Copper is working to reopen the past-producing Panguna copper complex, which ceased operations in 1989.
Panguna is considered one of the largest copper deposits in the world, and according to the company, its successful restart is viewed as a critical component of future economic independence for Bougainville, which is an autonomous region in Papua New Guinea. The country's government holds a 36.5 percent share in the company.
In early February, after much deliberation, Bougainville Copper was granted a five year extension to its Panguna mining licence, which the company hoped would open the door for advanced-stage prefeasibility and feasibility exploration activities.
The news sent shares of the company spiking to their best year-to-date close of 2024 — AU$0.80 on February 2 — more than double Bougainville Copper's close of AU$0.35 the previous day.
However, the company announced in late May it was served with notice of a class action lawsuit on behalf of Bougainville residents seeking compensation for claimed environmental and social harm due to the Panguna mine's previous operations.
"The company will fully consider the matters raised in the claim and intends to vigorously defend its position," Bougainville Copper stated in the press release.
5. AIC Mines (ASX:A1M)
Year-to-date gain: 21.74 percent; market cap: AU$239.77 million; share price: AU$0.42
AIC Mines owns the high-grade Eloise copper mine in North Queensland, as well as a portfolio of exploration-stage copper-gold projects in Australia. Eloise started production in 1996, and the company is looking to expand the life of the operation by the nearby Jericho deposit.
In late March, the company posted a new ore reserve estimate for Jericho, followed shortly by an announcement that drilling has begun at the recently discovered Swagman prospect, located between Eloise and Jericho. Later in May, AIC announced it will start development work at Jericho via an underground link drive directly from the Eloise decline following mining studies that compared the method with another option.
In its report for the quarter ended March 31, 2024, AIC Mines reported production of 3,066 tonnes of copper and 1,532 ounces of gold in concentrate. The company said it's on track to meet its 2024 production guidance of 12,000 tonnes of copper and 5,000 ounces of gold.
Record copper prices lifted AIC Mines’ share price to a year-to-date high of AU$0.60 on May 20.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Melissa Pistilli, currently hold no direct investment interest in any company mentioned in this article.
Lundin Mining Completes the Transaction to Increase Ownership in Caserones to 70%
TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") is pleased to announce the closing of the option to acquire an additional 19% interest in the issued and outstanding equity of SCM Minera Lumina Copper Chile ("Lumina Copper"), which owns the Caserones copper-molybdenum mine ("Caserones'") located in Chile from JX Advanced Metals Corporation 1 ("JX"), as previously announced on June 26, 2024 (the "Call Option Exercise").
The consideration for the Call Option Exercise was paid for in cash and consisted of a payment of $350 million for an additional 19% interest in Caserones, bringing the Company's ownership to 70%. Upon closing of the call option, Lumina Copper declared a cash dividend of $150 million of which 70% will be distributed to Lundin Mining and 30% to JX.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations and projects in Argentina , Brazil , Chile , Portugal , Sweden and the United States of America , primarily producing copper, zinc, gold and nickel.
The information in this release is subject to the disclosure requirements of Lundin Mining under the Swedish Financial Instruments Trading Act. The information was submitted for publication, through the agency of the contact persons set out below on July 2, 2024 at 14:30 Pacific Time .
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects and business strategies. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking statements.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management's experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: global financial conditions, market volatility and inflation, including pricing and availability of key supplies and services; risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; volatility and fluctuations in metal and commodity demand and prices; significant reliance on assets in Chile ; reputation risks related to negative publicity with respect to the Company or the mining industry in general; delays or the inability to obtain, retain or comply with permits; risks relating to the development of the Josemaria Project; health and safety laws and regulations; risks associated with climate change; risks relating to indebtedness; economic, political and social instability and mining regime changes in the Company's operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; inability to attract and retain highly skilled employees; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; project financing risks, liquidity risks and limited financial resources; health and safety risks; compliance with environmental, unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; changing taxation regimes; the inability to effectively compete in the industry; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; risks related to mine closure activities, reclamation obligations, environmental liabilities and closed and historical sites; reliance on key personnel and reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; information technology and cybersecurity risks; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; ore processing efficiency; community and stakeholder opposition; regulatory investigations, enforcement, sanctions and/or related or other litigation; financial projections, including estimates of future expenditures and cash costs, and estimates of future production may not be reliable; enforcing legal rights in foreign jurisdictions; risks associated with the use of derivatives; risks relating to joint ventures and operations; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities; exchange rate fluctuations; compliance with foreign laws; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; risks relating to dilution; risks relating to payment of dividends; counterparty and customer concentration risks; activist shareholders and proxy solicitation matters; estimation of asset carrying values; relationships with employees and contractors, and the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; conflicts of interest; existence of significant shareholders; challenges or defects in title; internal controls; risks relating to minor elements contained in concentrate products; the threat associated with outbreaks of viruses and infectious diseases; and other risks and uncertainties, including but not limited to those described in the "Managing Risks" section of the Company's MD&A and the "Risks and Uncertainties" section of the Company's Annual Information Form for the year ended December 31, 2023 , which are available on SEDAR+ at www.sedarplus.com under the Company's profile.
All of the forward-looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward‐looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.
_____________________________________ |
1 Previously named JX Metals Corporation. |
SOURCE Lundin Mining Corporation
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True North Copper Commences Mining at Wallace North, QLD
True North Copper Limited (ASX: TNC) (TNC or the Company) is pleased to announce mining operations at its Wallace North deposit in northern Queensland have commenced, with clearing activities and blast hole drilling underway.
HIGHLIGHTS
- Mining activities at True North Copper’s Wallace North deposit, part of its Cloncurry Copper Project (CCP) in Queensland, have commenced with clearing and blast hole drilling underway
- TNC is on track to become Australia’s next copper producer and critical metals supplier via its restart of CCP
- CCP is estimated to generate free cash flow of ~$200 million at current copper spot prices over its initial 4.6-year mine life1
- TNC has binding offtake and toll milling agreements with Glencore International AG (Glencore)2 for 100% of copper concentrate from CCP and for toll milling of up to 1Mt of ore per year
- Recent executive appointments have bolstered TNC’s executive team ahead of operations restart.
Wallace North is part of True North Copper’s Cloncurry Copper Project (CCP) and one of four open-pit deposits making up CCP. Wallace North has an Ore Reserve totalling 0.7Mt (Probable) grading 1.01% Cu and 0.46g/t Au for 6.8kt Cu and 10.0koz Au3.
TNC will operate dry hire equipment at Wallace North, which its own personnel will operate, with most mining equipment already on site. Dewatering of the pit area is well advanced, with all blast hole drilling expected to be in dry holes.
A recruitment process for the operations team is close to finalisation, and a supportive technical team is in place ready for mining to start.
True North Copper’s newly appointed Managing Director Bevan Jones said: “We have commenced mining operations at Wallace North, which will allow our CCP to restart copper production. This has been our major goal since listing on the ASX. I thank our team for their efforts in moving towards this goal to allow TNC to become Australia’s next copper and critical metals producer.
“CCP is estimated to deliver free cash flow of about $200 million at current prices over its 4.6-year initial mine life, based on existing JORC Reserves. Cash flow from mining will be used to explore further opportunities to build this inventory.”
Mining ramp-up will initially build ore stockpiles, with road haulage expected to start within a few weeks of startup. Oxide ore will be transported by road train to TNC’s Cloncurry Operations Hub's (COH) heap leach. Sulphide ore will be transported to a nearby concentrator for toll treatment under TNC's toll-milling agreement with Glencore International AG.
The COH is 2km from the town of Cloncurry in northern Queensland and will service all four of TNC’s deposits with essential infrastructure, technical systems and support. An active oxide heap leach and solvent extraction (SX) processing plant, mine buildings, site administration facilities, workshops, open pit mine facilities, onsite explosive magazines, site storage, water management systems and existing site power supply are located at the COH.
Click here for the full ASX Release
This article includes content from True North Copper, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Lundin Mining Announces Updated Share Capital and Voting Rights
TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") reports the following updated share capital and voting rights, in accordance with the Swedish Financial Instruments Trading Act:
The number of issued and outstanding shares of the Company has increased by 83,063 to 776,725,529 common shares with voting rights as of June 28, 2024. The increase in the number of issued and outstanding shares from June 1, 2024 to date is a result of the exercise of employee stock options or the vesting of employee share units.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations and projects in Argentina , Brazil , Chile , Portugal , Sweden and the United States of America , primarily producing copper, zinc, gold and nickel.
The information in this release is subject to the disclosure requirements of Lundin Mining under the Swedish Financial Instruments Trading Act. The information was submitted for publication, through the agency of the contact persons set out below on June 28, 2024 at 14:30 Pacific Time .
SOURCE Lundin Mining Corporation
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Forum Announces Closing of Private Placement, Stock Option Grant and Liquidity Services Agreement
Forum Energy Metals Corp. (TSXV: FMC) (OTCQB: FDCFF) ("Forum" or the "Company") is pleased to announce that, further to its news releases of June 3 and June 24, 2024, it has closed its non-brokered private placement and has issued 7,084,020 units (the "Units") at a price of $0.135 per Unit for gross proceeds of $956,343 (the "Offering"). Each Unit consists of one common share and one-half of one share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one common share (each a "Warrant Share") at a price of $0.20 per Warrant Share for a period of 24 months expiring June 26, 2026.
In connection with the Offering, the Company paid cash commissions totalling $51,141 equal to 6% of certain of the gross proceeds raised under the Offering. The Company also issued 378,819 finder warrants of the Company. Each finder warrant shall entitle the holder thereof to purchase one common share of the Company at a price of $0.20 expiring June 26, 2026.
All securities issued are subject to a four month hold period expiring October 27, 2024. The net proceeds of the Offering will be used for general working capital.
Insiders of the Company participated in the Offering for 780,000 Units or $105,300, and such Units issued to insiders are subject to a four month hold period pursuant to applicable policies of the TSX Venture Exchange. The issuance of Units to insiders is considered a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to section 5.7(1)(a) in respect of such insider participation as the fair market value of the transaction, insofar as it involves interested parties, does not exceed 25% of the Company's market capitalization.
The securities referred to in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements. "United States" and "U.S. person" have the respective meanings assigned in Regulation S under the U.S Securities Act.
Stock Option Grant
The Company also announces that in accordance with the Company's stock option plan, it has granted to certain of its directors, officers, employees and consultants incentive stock options to purchase up to an aggregate of 3,200,000 common shares exercisable on or before June 28, 2029 at a price of $0.135 per share.
Marketing Agreement
The Company has entered into an advisory agreement (the "Agreement") with DS Market Solutions Inc. ("DS Market Solutions"), an equity trading advisory and liquidity provider located in Mississauga, Ontario, whereby DS Market Solutions has agreed to provide the Company with liquidity services with the object of enhancing market depth and increasing liquidity of the Company's common shares, as further described in the Agreement, for a month-to-month term in exchange for remuneration of $5,000 per month, plus applicable taxes.
About Forum Energy Metals
Forum Energy Metals Corp. (TSXV: FMC) (OTCQB: FDCFF) is focused on the discovery of high-grade unconformity-related uranium deposits in the Athabasca Basin, Saskatchewan and the Thelon Basin, Nunavut. For further information: https://www.forumenergymetals.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Richard J. Mazur, P.Geo.
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Rick Mazur, P.Geo., President & CEO
mazur@forumenergymetals.com
Tel: 604-630-1585
Not for distribution to United States Newswire Services or for dissemination in the United States
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/214909
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