World News: 10:00 GMT Thursday 6th December 2018. [Osisko Metals Incorporated via Globe Newswire via SPi World News]
MONTREAL, Dec. 06, 2018 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the “” or “”) (TSX-V: OM; FRANKFURT: OB51) is pleased to announce an updated Inferred Mineral Resource Estimate (“MRE”) for its 100% owned Pine Point project, located near Hay River, in the Northwest Territories of Canada. The MRE was prepared by BBA Inc. and incorporates an open pit mining scenario with cut-off values based on estimated long-term metal prices, mining costs, metal recoveries, concentrate transport and smelter costs. A conference call webcast will be held by Osisko Metals management at 11:00 am Eastern time today (see conference call details below).
Jeff Hussey, President & CEO of Osisko Metals, commented: “This MRE is robust and confirms that Pine Point is one of the most significant undeveloped zinc-lead projects in the base metal sector with 5.5 billion pounds of combined in-pit zinc and lead resources. The shallow mineralization is unique among zinc projects globally and Pine Point still offers excellent exploration potential both at depth and along the project’s 65km strike length.”
“There is a depleted pipeline of zinc resources globally and we believe Pine Point will place Osisko Metals at the forefront of junior base metal exploration and development companies.”
Variation of cut-off grades does not significantly change the Inferred Mineral Resource with its robust grade and tonnage even at the lower cut-off grades.
The Inferred Mineral Resource Estimate is constrained with pit shells that were developed from a pit optimization analysis using the economic and operating parameters presented below:
Overall metallurgical recoveries of 83.1% for zinc and 87.8% for lead were estimated from recent preliminary bench scale flotation tests, including dry pre-concentration ore sorter test work (full program results to be disclosed in Q1 2019) aimed at reducing haulage and grinding costs.
The hydrogeological setting of the Pine Point area is very well established following a 24-year mining history that benefited from real time pumping data collected during Cominco’s historical operational period. Osisko Metals understands that the success of the Pine Point project will rely on developing a mining sequence that is coordinated with a dewatering and water management strategy over the life of mine. The Company does not consider water infiltration to be a material matter. Analyses of historical infiltration rates resulted in an estimated maximum cost of C$0.88 per tonne mined, that was included in the pit optimization cost base for all zones except N204 which does not incorporate dewatering cost due to the shallow nature of mineralization.
Additional in-fill drilling completed up to the date of this press release and not included in this Inferred MRE consists of 579 drill holes totalling 40,102 metres of drilling. The objective of this ongoing program is to upgrade the Inferred Mineral Resource to the Indicated category by decreasing drill spacing to 30 metres from the current average drill spacing of 40 to 60 metres. The Company expects to drill 900 additional holes totalling approximately 49,000 metres in the remainder of 2018 and in 2019 to meet this objective. The drill database will be further strengthened by incorporating the recent LIDAR topographic survey.
A separate brownfield exploration campaign will investigate high-potential target areas following the analysis of the planned airborne gravity survey that will complement site wide compilation of historical datasets and the recent LIDAR topographic survey.
The project is located on the south shore of Great Slave Lake in the Northwest Territories, and is accessible directly year-round by an all-weather highway from Hay River, the economic “Hub of the North”, that is located 96 km west of the electrical substation and past concentrator location. Hay River has rail transportation and loadout options as well as other available services. On-site infrastructure consists of approximately 100km of intact haulage roads that link the mineralized zones, as well as the electrical substation located in the middle of the property.
Those wishing to participate in the Q&A session are asked to dial the following toll-free North American number 1-866-688-0896 (International 1-409-217-8780). The MRE Presentation will be viewable by webcast at . The webcast replay will become available following the call.
BBA has been providing a wide range of consulting engineering services for almost 40 years. Today, engineering, project, geology, environmental and commissioning experts team up to quickly and accurately pinpoint the needs of industrial and institutional clients. The firm’s expertise is recognized in the fields of energy, mining and metals, biofuels and oil and gas and is supported by a team of seasoned experts who design reliable, sustainable and innovative solutions every day. Our services for the mining industry include front-end consulting, NI 43-101 technical reports, environmental studies, geology resource modelling, mine planning, metallurgical process development, tailings facility engineering and multidisciplinary infrastructure and process plant design.
A photo accompanying this announcement is available at
Globe Newswire: 10:00 GMT Thursday 6th December 2018
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