Osisko Metals confirms expansion potential with Pine Point drilling

Osisko Metals (TSXV: OM; US-OTC: OMZNF) has provided further results from definition drilling at its Pine Point base metals project in the Northwest Territories. The program required to upgrade deposits currently classified as the inferred mineral resource category to the indicated category, so that they can be included in an upcoming feasibility study.

The latest results are based on drilling in late 2021 within the Central zone and the East Mill zone, highlighted by 9 metres grading 11.92% zinc and 25.49% lead, 6 metres grading 14.96% zinc and 5.02% lead, 8 metres grading 8.2% zinc and 0.37% lead, and 3.7 metres grading 14.04% zinc and 3.63% lead.

Drill core displaying colloform lead-zinc mineralization from Pine Point. Credit: Osisko Metals.

“We are still impressed with the continuity of mineralization as the definition drilling confirms extent and grade distribution. Results to date also indicate significant potential to expand mineralization beyond current mineral resources through additional drilling,” Jeff Hussey, president and COO of Osisko Metals, said.

To date, Osisko has completed approximately 60% of the required infill drilling to convert the resources to the indicated category, and is drawing close to completing an updated preliminary economic assessment (PEA) on the project.

The 2020 PEA estimated the Pine Point project’s after-tax net present value (NPV) at $500 million (at a discount rate of 8%) and its internal rate of return (IRR) at 29.6%. This was based on an initial capital cost of $555.7 million and current resource estimates of 12.9 million tonnes grading 6.29% zinc-equivalent in the indicated category and 37.6 million tonnes grading 6.8% zinc-equivalent in inferred.