Osisko Metals releases Pine Point in-pit inferred resource: 38,400,000 tonnes grading 6.58% ZnEq

6 December 2018

Osisko Metals Incorporated is pleased to announce an updated Inferred Mineral Resource Estimate 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. 

Highlights:

• The Pine Point in-pit Inferred MRE stands at 38.4 Mt grading 4.58% zinc and 1.85% lead (6.58% ZnEq) containing approximately 3.9 billion pounds of zinc and 1.6 billion pounds of lead.
• The pit constrained resource is based on optimized pit shells using a zinc price of US$1.10/lb and a lead price of US$0.90/lb. The lower cut-off grade varies across the property and ranges between 1.70% ZnEq and 2.00% ZnEq.
• The in-pit Inferred MRE is divided into five geographic zones, each zone composed of individual deposits (see Pine Point Property Map and Table 1). The MRE incorporates 42 new pits and expansions of 2 historical pits.
• Pine Point’s main core (East Mill, Central and North Zones) contains approximately 23.4 Mt grading 6.30% ZnEq or 2.3 billion pounds of zinc and 0.9 billion pounds of lead.
• At the deposit scale the grade and tonnage show little variability at lower cut-off grades (see Table 2). The in-pit MRE is very robust and is relatively insensitive to metal prices.
• Osisko Metals will continue the infill campaign in early 2019 and begin a substantial exploration program in mid-2019 to test the excellent brownfield mineral potential along the entire 65km Pine Point trend. A new MRE is planned for H2 2019 with the aim of converting a significant proportion of current resources to the Indicated category.

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