Osisko Metals Provides Update on Quebec Greenfield Exploration
Osisko Metals Provides Update on Quebec Greenfield Exploration
MONTREAL, Sept. 16, 2019 -- Osisko Metals Incorporated (the “ Company” or “Osisko Metals ”) (TSX-V: OM; OTCQX:
OMZNF; FRANKFURT: 0B51) is pleased to announce an update on its Quebec greenfield base metals exploration program,
which includes the launching of an 8,000 metre drill program on the 100%-owned Ascension project, the signing of an option
agreement with O3 Mining Inc. (TSX-V: OIII) to earn a 50% interest in the Ashuanipi Project, and the continuation of its
exploration program on the previously announced Quévillon base metals earn-in with Osisko Mining Inc (see map of Quebec).
Robert Wares, P. Geo, Osisko Metals Executive Chairman, commented: “Our Quebec Genex program has identified several
promising targets that will be drilled this fall, including potential Broken Hill style mineralization in the Grenville and VMS-type
targets in the Abitibi and Ashuanipi geological provinces. Our fall program also includes the launching of a new copper-nickel-
PGE project in the Quévillon area. Adding to this the recently announced Pine Point and Bathurst drill programs in NWT and
New Brunswick respectively, we are looking forward to a full house of exploration activity over the next six months.”
ASCENSION PROJECT
The Ascension project is one of three 100%-owned grass roots projects (Ascension, Kempt and Wallace) located in Quebec’s
Grenville geological Province that are targeting previously unexplored areas for Broken Hill-type metamorphosed Zn-Pb-Ag
deposits. The latter is a giant, world-class Australian deposit that has been mined continuously for over 130 years (total
production of over 280 million tonnes of 18% Zn+Pb), and the geological setting of portions of Quebec’s Grenville Province is
similar to that of the Curnamona Province hosting the Broken Hill mine. Osisko Metals used the Broken Hill geological model
to target specific areas and completed till surveys for indicator minerals, as well as airborne magnetic, electromagnetic and
gravity surveys over the property package in spring and summer 2019. The Company’s team has now processed and identified
approximately twenty geophysical drill targets on its Ascension property, which is located 150 kilometers northeast of
Montreal. Road access to the property is through bush roads north of the Laurentian village of l’Ascension. The 8,000 metre
drill program will begin in September and extend to the beginning of December.
ASHUANIPI OPTION
The project covers 9,370 hectares and is located 560 kilometres north of the town of Chibougamau, Québec. The property is
located within the Raynouard greenstone belt within the Archean Ashuanipi geological Province. The claims include twelve drill
-ready VMS-type base metal targets generated from airborne electromagnetic anomalies within altered bi-modal volcanic
rocks. In addition, the Ashuanipi property contains several till anomalies containing gahnite (Zn-rich spinel associated with
metamorphosed massive sulphide deposits) as well as unsourced boulders that have returned values up to 14.1% Cu, 4.16%
Zn, 4.14% Pb, 761 g/t Ag and 2.25 g/t Au, for which glacial ice flow directions point towards the identified electromagnetic
conductors to be tested by drilling. All previously reported work on this property was carried out by Virginia Mines between
2007 and 2014.
The transaction
Pursuant to the Ashuanipi option agreement with O3 Mining, the Company may earn a 50% interest in the project by funding
an aggregate of $3,500,000 in exploration expenditures over four (4) years as outlined below:
(i) $1,500,000, on or before the 1st year anniversary of the Effective Date (the “Initial Option Expenditure Payment”);
(ii) $2,000,000, on or before the 2nd year anniversary of the Effective Date.
In addition, the Company can earn an additional 25% interest in the Property by funding an aggregate of $5,000,000 in
exploration expenditures over (2) years following the initial earn-in period. O3 Mining will be project operator during the earn-in
period.
QUÉVILLON BASE METALS OPTION
Osisko Metals is also pursuing its exploration program within the Quévillon base metals earn-in with Osisko Mining Inc. by
targeting potential Cu-Ni-PGE deposits within two linear ultramafic complexes that extend for over 20 km around the Wedding
granite pluton, all located between the Osborne-Bell gold deposit and the town of Lebel-sur-Quévillon. Historical exploration
work in the area located five mineralized, unsourced Ni-Cu-PGE boulders collected down-ice of the eastern portion of the
ultramafic complex, which returned values up to 1.90% Ni, 2.01% Cu, and 4.2 g/t PGE (Pt+Pd+Au) (Quebec assessment
report GM 65735, Maudore Minerals Ltd). Work will begin this fall with an airborne magnetic-electromagnetic survey covering
the entire 20 km strike length of the potentially fertile ultramafic complex.
Qualified Persons
The scientific and technical content of this press release for the Ascension and Ashuanipi projects has been reviewed and
approved by Mr. Pascal Simard, Eng, B.Sc. Exploration Manager, Northern Quebec for O3 Mining Inc, who is a “Qualified
Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The scientific and technical
content of this news release for the Quévillon base metals project has been reviewed, prepared and approved by Mr. Mathieu
Savard, P.Geo. (OGQ 510), Vice-President of Exploration for Osisko Mining Inc., who is a "qualified person" as defined by
National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").
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 Canada’s two premier zinc mining camps. The Company’s flagship
properties are : 1) the Pine Point Mining Camp (“PPMC”), located in the Northwest Territories, has an Inferred Mineral
Resource of 38.4 Mt grading 4.58% zinc and 1.85% lead (6.58% ZnEq) , making it the largest pit-constrained zinc camp in
Canada (please refer to the Amended Technical Report filed on SEDAR for further information); 2) The Bathurst Mining Camp
(“BMC”), located in northern New Brunswick, 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 Ancon and Gilmour South deposits. In 2019, the Company
will continue to diligently develop and explore in order to confirm and grow both projects. In Québec, the Company owns
42,000 hectares that cover greenfield zinc targets that will be selectively advanced through exploration. The Inferred Mineral
Resources mentioned in this press release conform to National Instrument 43-101 standards. These mineral resources were
reported by the Company on December 6, 2018 and January 20, 2019 and were prepared by independent qualified persons, as
defined by NI43 101 guidelines. 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 evidence is sufficient to imply but not verify
geological, grade and/or quality 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 Osisko Metals, visit www.osiskometals.com or contact:
Jeff Hussey
President & CEO
Osisko Metals Incorporated
(514) 861-4441
Email: [email protected]
www.osiskometals.com
Christina Lalli
Director, Investor Relations
Osisko Metals Incorporated
(514) 861-4441
Email: [email protected]
www.osiskometals.com
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. 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. Forward-looking information in this news
release includes, but is not limited to, the use of proceeds of the Offering; the timing and ability of the Corporation, if at all, to
obtain final approval of the Offering from the TSX Venture Exchange; an exemption being available under MI 61-101 and
Policy 5.9 of the TSX Venture Exchange from the minority shareholder approval and valuation requirements for each related
party transaction; objectives, goals or future plans; statements regarding exploration results and exploration plans. Factors
that could cause actual results to differ materially from such forward-looking information include, but are not limited to, 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; uncertainties relating to the
availability and costs of financing needed in the future; changes in equity markets; inflation; fluctuations in commodity prices;
delays in the development of projects; the other risks involved in the mineral exploration and development industry; and those
risks set out in the Corporation's public documents filed on SEDAR at www.sedar.com. Although the Corporation 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 Corporation 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. No stock exchange, securities
commission or other regulatory authority has approved or disapproved the information contained herein.