Osisko Metals Announces Restart of Drilling at Pine Point
Osisko Metals Announces Restart of Drilling at Pine Point
MONTREAL, Aug. 27, 2020 -- Osisko Metals Incorporated (the " Company" or " Osisko Metals ") ( TSX-V: OM; OTCQX:
OMZNF; FRANKFURT: 0B51 ) is pleased to announce that drilling activities at Pine Point have restarted. Following
recommendations from the Northwest Territories Health and Social Services Authority, Osisko Metals reopened its camp to
support planned permitting and environmental initiatives in July and has now increased its scope to include drilling.
Jeff Hussey, President and COO, commented: “At this time, we have one drill operational at Pine Point. However, with the
multitude of targets and type of targets throughout the property, we will aim to increase our drill count in the fall while
maintaining health and safety standards to minimize COVID-19 risk in the NWT. This initial phase of drilling will look to expand
deposits modeled in the 2020 Mineral Resource Estimate (“ 2020 MRE”) released concurrent to our Preliminary Economic
Assessment on June 15 th, with focus on prismatic and high-grade tabular mineralization. Following the successful increase in
tonnage in the East Mill Zone in the 2020 MRE, we sought similar targets across Pine Point. Our initial work highlighted 11
open deposits within the East Mill, Central and North Zones with widely spaced and high-grade intercepts located outside of
deposit boundaries.”
Overview of Target Type at Pine Point
Osisko Metals has classified targets at Pine Point into three main categories. While all three are expected to be tested,
Osisko Metals will be initially prioritizing targets from the first two categories in its upcoming drill campaign.
1. Resource Expansion: targeting expansion of mineralization where boundaries are poorly defined in existing deposits
as described above.
2. Orphan Holes: targeting historical high-grade drill intercepts from the Cominco Ltd. era with little or no drill follow-up. A
review of the historical database by Osisko Metals geologists over the previous 24 months have identified a number of
drill intercepts where Cominco did not complete the testing of targets it successfully discovered.
3. Geophysical Anomalies: targeting gravity and IP anomalies identified following the 2019 airborne gravity gradiometry
survey. Work completed to date has allowed Osisko Metals to better refine its targeting approach and will look to follow
up anomalies in the coming months.
About Osisko Metals
Osisko Metals Incorporated is a Canadian exploration and development company creating value in the base metal space with
a focus on zinc mineral assets. The Company controls two of Canada’s premier past-producing zinc mining camps: 1) the
Pine Point Project is located in the Northwest Territories, for which the recently filed PEA has indicated an after-tax NPV of
$500M and IRR of 29.6%. Under the PEA, the Pine Point Project is host to current mineral resources amenable to open pit
and shallow underground development consisting of Indicated Mineral Resources of 12.9Mt grading 6.29% ZnEq and 37.6Mt of
Inferred Mineral Resources grading 6.80% ZnEq. Please refer to the technical report entitled “Preliminary Economic
Assessment, Pine Point Project, Hay River, North West Territories, Canada” dated July 30, 2020 (with an effective date of
June 11, 2020) which has been filed on SEDAR. The Pine Point Project is located on the south shore of Great Slave Lake in
the Northwest Territories, near infrastructure and paved highway access and with 100 kilometres of viable haulage roads
already in place; 2) The Bathurst Mining Camp properties, located in northern New Brunswick, are comprised of 23 claims
covering approximately 59,738 hectares (2734 units) has Indicated Mineral Resources of 1.96 Mt grading 5.77% zinc, 2.38%
lead, 0.22% copper and 68.9g/t silver (9.00% ZnEq) and Inferred Mineral Resources of 3.85 Mt grading 5.34% zinc, 1.49%
lead, 0.32% copper and 47.7 g/t silver (7.96% ZnEq) in the Key Anacon and Gilmour South deposits. Please refer to the
technical report entitled “NI 43-101 Maiden Resource Estimate for the Bathurst Mining Camp, New Brunswick, Canada” dated
April 4, 2019 (with an effective date of February 20, 2019) which has been filed on SEDAR.
The current mineral resources mentioned in this press release conform to NI43-101 standards and were prepared by
independent qualified persons, as defined by NI43-101 guidelines. The abovementioned 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
evidence is sufficient to imply but not verify geological grade and/or quality of continuity. Zinc equivalency percentages are
calculated using metal prices, forecasted metal recoveries, concentrate grades, transport costs, smelter payable metals and
charges (see respective technical reports for details).
For further information on this press release, visit www.osiskometals.com or contact:
Killian Charles
VP Corporate Development
Osisko Metals Incorporated
(514) 861-4441
Email: [email protected]
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
(often, but not always, using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s
view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “potential”, “feasibility”,
“believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or
“could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-
looking information and are intended to identify forward-looking information. This news release contains forward-looking
information pertaining to, among other things: the Pine Point Project having world-class potential, including the potential to be
one of the top ten zinc mines; the results of the PEA, including, but not limited to, the IRR, NPV and estimated costs,
production, production rate and mine life; the expectation that the Pine Point Project will be an robust operation and profitable
at a variety of prices and assumptions; the expected high quality of the Pine Point concentrates; the potential impact of the
Pine Point Project in the Northwest Territories, including but not limited to the potential generation of tax revenue and
contribution of jobs; and the Pine Point Project having the potential for mineral resource expansion and new discoveries.
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 to raise any necessary
additional capital on reasonable terms to advance the development of its projects and pursue planned exploration; future
prices of zinc and lead; the timing and results of exploration and drilling programs; the accuracy of mineral resource
estimates; production costs; operating conditions being favourable; political and regulatory stability; the receipt of
governmental and third party approvals; licences and permits being received on favourable terms; sustained labour stability;
stability in financial and capital markets; availability of equipment; 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 include, but are not limited to, risks relating to
the ability of exploration activities (including drill results) to accurately predict mineralization; errors in management’s
geological modelling; capital and operating costs varying significantly from estimates; the preliminary nature of metallurgical
test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; Osisko
Metals’ history of losses and negative cash flow; uncertainties relating to the availability and costs of financing needed in the
future; changes in equity markets; inflation; the global economic climate; fluctuations in commodity prices; the ability of
Osisko Metals to complete further exploration activities, including drilling; delays in the development of projects; environmental
risks; community and non-governmental actions; other risks involved in the mineral exploration and development industry; the
ability of Osisko Metals to retain its key management employees and skilled and experienced personnel; and those risks set
out in the Company’s public documents filed on SEDAR at www.sedar.com. 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) accepts responsibility for the adequacy or accuracy of this news release.