Osisko Metals Announces Significant Increase in Mineral Resources at Gaspé Copper
Osisko Metals Announces Significant Increase in Mineral Resources at Gaspé
Copper
MONTREAL, Nov. 14, 2024 -- 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”) for the Gaspé Copper Project,
located near Murdochville in the Gaspé Peninsula of Quebec.
The updated MRE (Table 1) includes pit-constrained resources comprising 824 million tonnes grading 0.34% CuEq of
Indicated category and 670 million tonnes grading 0.38% CuEq of Inferred category. This MRE represents a 53% increase
in copper-equivalent metal content over the previously reported Indicated Resource and a 100-fold increase in copper-equivalent
metal content in Inferred Resources (see May 6, 2024 news release and entitled “2024 Copper Mountain Mineral Resource
Estimate”).
At 4.91 billion pounds (2.23 million tonnes) of contained copper (Table 1) , as well as significant molybdenum (274 million
pounds) and silver (46.0 million ounces), the latest Gaspé Copper in-pit Indicated Resource hosts by far the largest
undeveloped copper-molybdenum deposit in Eastern North America, exclusive of Inferred resources.
Robert Wares, CEO & Chairman, commented: “We are very proud to announce this updated resource estimate for Gaspé
Copper. The overall resource has increased dramatically since last spring’s MRE as a result of new geological modelling and
extending the modelled Whittle pit boundaries towards Needle Mountain to the south. A minimum 70,000 metre drill program
is now planned for 2025, with the objective of converting the bulk of the current Inferred resource to Indicated category. There is
also excellent potential for converting currently categorized in-pit waste rock to mineralized material with this drill program,
which would further grow the in-pit resource while reducing the strip ratio. This MRE represents a much larger resource than
was estimated previously, presenting the potential for a bulk tonnage mining operation with significantly higher throughput.
Given this new resource milestone, management has elected to defer the PEA, originally slated for release in Q1 2025, to a
later date until additional new drilling is completed. Ongoing studies will focus on a larger-scale mine plan and relocation of the
mill complex away from the current site.”
Mr. Wares continued: “We are proud to be leading the Gaspé Copper project, which is shaping up to be a major Canadian
copper-molybdenum development project located in one of the world’s safest mining jurisdictions. This important asset has the
potential to become a core component of Québec’s critical mineral development strategy that aims to provide essential metals
for global decarbonization initiatives.”
Table 1: Mineral Resource Estimate (MRE) Base Case at 0.12% Copper Cut-off
Class Tonnes Cu Eq Cu Mo Ag Cu Cu Mo Mo Ag
Mt % % % g/t M lbs kt M lbs kt (koz)
Indicated 824 0.34 0.27 0.015 1.74 4,907 2,225 274 124 46,027
Inferred 670 0.38 0.30 0.020 1.37 4,389 1,990 294 133 29,493
1. 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 François Le Moal, P.Eng., of G-Mining for cut-off
grade and Pit shell optimization, and Christian Laroche, P.Eng., from Synectic, for metallurgical parameters. The
effective date of the MRE is November 4, 2024.
2. 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 additional drilling.
3. The Qualified Persons are not aware of any known environmental, permitting, legal, title-related, taxation, socio-
political, financial or other relevant issues that could materially affect the MRE.
4. 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.
5. CIM definitions and guidelines for Mineral Resource Estimates have been followed. See Cautionary Note below for
copper equivalency (CuEq) values.
This significantly larger resource estimate is the result of:
1. Geological re-interpretation of the mineralized system, whereby most of the mineralized stratigraphic units above the
base of the C-Zone skarn, including up-dip extensions toward Needle Mountain, were included in the resource model;
2. Extension of the Whittle pit model to the south towards Needle Mountain, eliminating the possibility of a potential mill
complex on the site of the original Gaspé Copper mill. Two other sites for the potential mill are now under consideration,
and
3. Lowering of cut-off grade from 0.15% Cu to 0.12% Cu on the basis of potentially larger mine throughput and
replacement of SAG mill by HPGR in the grinding circuit.
Potential for resource expansion
Building upon the information released in this updated MRE, a minimum 70,000 metre drill program is planned to commence in
May 2025 that will aim to 1) convert Inferred resources to Indicated category by reducing drill spacing to 100 metres or less
within the pit volume, 2) better define higher-grade (0.5 to 1.5% % Cu) mineralization within pit boundaries in the B-Zone and C
-Zone skarn horizons, 3) extend up-dip, shallower B-Zone and C-Zone skarn mineralization (near Needle Mountain) beyond
current pit boundaries and 4) test shallower (above 600 m depth) portions of the high grade (2%-3% Cu) E-Zone skarn for
inclusion into the pit volume.
Implications of larger open pit resource at Gaspé Copper
The current modelled Whittle pit shell extends from the current flooded Copper Mountain pit towards the base of Needle
Mountain to the south. Further drilling, geological modelling and pit optimization will be required to refine pit boundaries. The
Company will evaluate future pit limits and 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.
General parameters of the updated Mineral Resource Estimate
This MRE is pit-constrained and includes stockwork mineralization surrounding the past-producing Copper Mountain open pit
mine as well as disseminated, stratiform mineralization in both skarn and potassic-altered hornfels (porcellanite) that extends
up-dip from Copper Mountain towards Needle Mountain to the south.
The MRE uses, amongst other parameters, a long-term price of US$4.00/lb copper, a lower cut-off of 0.12% Cu for pit shell
modelling and a lower cut-off grade of 0.12% copper for base case in-pit resource estimation. The resource was estimated
using data from historical drilling completed between the 1950s and 2019 and 42,100 metres of drilling completed by the
Company between 2022 and 2024 (see Appendix for detailed parameters).
Mineral Resource Sensitivity
Table 2 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 0.12% copper and is highlighted in bold text:
Table 2: 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 0.12 824 1.53 0.27 0.015 4,907 2,225
Inferred 0.12 670 1.53 0.30 0.020 4,389 1,990
Indicated 0.15 696 1.93 0.29 0.016 4,528 2,053
Inferred 0.15 593 1.93 0.32 0.021 4,159 1,886
Indicated 0.20 510 2.84 0.34 0.019 3,811 1,728
Inferred 0.20 474 2.84 0.35 0.022 3,699 1,678
Indicated 0.25 363 4.18 0.39 0.021 3,086 1,400
Inferred 0.25 367 4.18 0.39 0.024 3,175 1,440
Indicated 0.30 245 6.26 0.44 0.022 2,376 1,078
Inferred 0.30 275 6.26 0.43 0.025 2,617 1,187
Indicated 0.40 120 14.31 0.54 0.025 1,428 648
Inferred 0.40 127 14.31 0.53 0.025 1,488 675
Same footnotes as Table 1 apply to this table.
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
Molybdenum Price $20.00 US$ per pound
Silver Price $24.00 US$ per ounce
CAD:USD exchange rate 1.33
Discount Rate 8.0 Percent
Royalty Rate 1.0 Percent
Cu concentrate transport + loading costs $25.00 US$ per wmt
Cu concentrate shipping cost $66.25 US$ per wmt
Cu concentrate insurance and other costs $9.00 US$ per wmt
Cu concentrate smelter treatment cost $82.50 US$ per wmt
Cu concentrate smelter refining cost $0.08 US$ per pound
Cu concentrate grade 25.0 Percent
Mo concentrate grade 58.0 Percent
Payable Cu 96.5 Percent
Payable Mo 98.0 Percent
Payable Ag 75.0 Percent
In-Pit Mining Cost $2.23 US$ per tonne mined
Mill Processing Cost $4.25 US$ per tonne milled
General and Administrative Costs $1.00 US$ per tonne milled
Overall Pit Slope - Rock 48 Degrees
Copper Recovery 92 Percent
Molybdenum Recovery 70 Percent
Mining loss / Dilution (open pit) 0 / 0 Percent / Percent
Waste Avg. Specific Gravity 2.67 Tonnes/cubic metre
Mineralization Specific Gravity (variable) Avg. 2.77 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.2024.1.1 and is based on 1946 drill holes and 58,842
samples. The drill hole database includes recent drilling totalling 67,742 metres in 125 drill holes (Xstrata 2011-2012,
Glencore Canada 2019 and Osisko Metals 2022-2024) and also incorporates historical drill holes totalling 519,435
metres in 1,863 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, 2023 and 2024 drill holes. The cut-off date for the drill hole database was November 4, 2024.
• Composites of 5 to 10 metre lengths were created inside the mineralization volumes. A total of 26,499 composites were
generated. High-grade capping was done on the composited assay data; composites were capped from 0.80% to
2.40% for Cu, from 0.10 to 0.20% for Mo, and from 3 to 10g/t for Ag in the stockwork zones, at 1.10% for Cu, 0.12% for
Mo, and 5g/t for Ag in the Porphyry, and from 1.00% to 6.00% for Cu, from 0.01 to 0.50% for Mo, and from 5 to 20g/t for
Ag in the skarn zones. A restricted search capping approach was also applied to the main skarn zone for Molybdenum
and Silver.
• Pit-constrained Mineral Resources for the base case are reported at a lower cut-off grade of 0.12 % 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 most
of the mineralized solids and a fixed value was used where the scarcity of the data did not allow for interpolation; the
average value is 2.77 tonnes/cubic metre. Surrounding barren lithologies were assigned the average specific gravity
value from all measured samples.
• The modelled base case pit shell measures 700 X 2,000 metres and reaches a maximum depth of approximately 800
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 10m x 10 m x 10 m in size and sub-blocks down to 1.25 m x 1.25 m x
1.25 m. Blocks were then regularized to 20 m x 20 m x 10 m.
• The Indicated and Inferred Mineral Resource categories are constrained to areas where drill spacing is less than 100
metres 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, $20.00/lb molybdenum and US$24/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 news release conform to standards and guidelines in National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”) and were prepared by independent qualified persons for purposes of
NI 43-101. 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 technical report prepared in accordance with NI 43-101, including the mineral
resources for the Gaspé Copper Project contained in this news release, will be delivered and filed on SEDAR+
(www.sedarplus.ca) under Osisko Metals’ issuer profile within 45 days of the date of this news release.
Qualified Persons
The Mineral Resource Estimate and other scientific and technical information in this news release has been prepared and
approved by independent qualified persons for purposes of NI 43-101: Pierre-Luc Richard, P.Geo., of PLR Resources Inc. with
contributions from François Le Moal, P.Eng., of G-Mining for cut-off grade and Pit Shell optimization and Christian Laroche,
P.Eng., from Synectiq, for metallurgical parameters.
About Osisko Metals
Osisko Metals Incorporated is a Canadian exploration and development company creating value in the critical metals sector,
with a focus on copper and zinc. The Company is in joint venture with Appian Capital Advisory LLP to advance one of Canada’s
largest 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 owned by the joint venture Pine Point Mining
Limited. The current mineral resource estimate consists of 49.5 Mt at 5.52% ZnEq of Indicated Mineral Resources and 8.3
Mt at 5.64% ZnEq of Inferred Mineral Resources (in accordance with National Instrument 43-101 - Standards of Disclosure
for Mineral Projects; see Osisko Metals ’ June 25, 2024, news release entitled “Osisko Metals releases Pine Point mineral
resource estimate: 49.5 million tonnes of indicated resources at 5.52% ZnEq” ). The Pine Point project is located on the south
shore of Great Slave Lake, Northwest Territories, close to infrastructure, with paved road access, an electrical substation and
100 kilometers of viable haul roads.
In addition, and aside from the Pine Point joint venture, the Company acquired in July 2023, from Glencore Canada
Corporation, a 100% interest in the former Gaspé Copper mine, located near Murdochville in Québec ’s Gaspé Peninsula. The
company is currently focused on resource expansion of the Gaspé Copper system, which includes this updated mineral
resource as well as the previously released resource comprising Indicated Mineral Resources of 495 Mt grading 0.37%
CuEq and Inferred Mineral Resources of 6.3 Mt grading 0.37% CuEq (in compliance with National Instrument 43-101 -
Standards of Disclosure for Mineral Projects); see May 6, 2024 news release entitled “ Osisko Metals Announces Updated
Mineral Resource Estimate at Mines Gaspé - Indicated Resources of 495 Mt at 0.37% CuEq ”). Gaspé Copper hosts the
largest undeveloped copper resource in eastern North America, strategically located near existing infrastructure in the mining-
friendly province of Quebec.
For further information on this news release, visit www.osiskometals.com or contact:
Robert Wares, Chairman & CEO of Osisko Metals Incorporated
Email: [email protected]
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 significance of the
results described in this news release (which have not yet been included in a technical report prepared in accordance with NI
43-101); the parameters used in the MRE presented in this news release; the planned drill program; the ability of the Company
(if at all) to upgrade the current inferred mineral resources; the potential for bulk tonnage mining operations (if at all); the
timing for publishing a PEA; the ability of the Company to realize a larger-scale mine plan and relocate the mill complex;
global decarbonization initiatives; the extension of the Whittle pit model; the potential for resource expansion (if at all); the
implications of a larger open pit resource; the general parameters of the updated MRE being variables that are subject to a
number of assumptions and variables beyond the Company’s control; 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;; Gaspé Copper hosting the largest undeveloped copper resource in Eastern North America
and Glencore being 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: the ability of exploration results, including drilling, to accurately predict
mineralization; errors in geological modelling; insufficient data; equity and debt capital markets; 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.sedarplus.ca) 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.