Osisko Metals files positive Pine Point PEA

30 July 2020

News Release: MONTREAL, July 30, 2020 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the "Company" or "Osisko Metals") (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) announces that further to its news release dated June 15th “Osisko Metals Files Pine Point PEA”, it has today filed the associated National Instrument 43-101 (“NI 43-101”) technical report for its wholly-owned Pine Point Project (the “Pine Point Project” or the “Project”), located near the town of Hay River in the Northwest Territories, Canada. The report, entitled “Pine Point Lead-Zinc Project Preliminary Economic Assessment” (the “Report”) is dated effective June 11, 2020. The PEA was prepared in collaboration with independent engineering firms BBA Inc., WSP Canada Inc., and Tetra Tech. A summary of key highlights are listed in Table 1.

A copy of the Report can be found at www.sedar.com

Table 1: PEA Highlight Results (all figures in CAN$ unless otherwise noted)

After-Tax Internal Rate of Return ("IRR")


After-Tax Net Present Value ("NPV") (Discount Rate 8%)


After-Tax Payback Period (Years)


Pre-Production CAPEX (including $71.2M Contingency)


Average Annual LOM Production Zinc


Average Annual LOM Production Lead


Life of Mine ("LOM")

10 Years

Total Mineral Resources Mined


Average ZnEq Diluted (12%) Grade of Mineral Resources Mined


Gross Revenue After Royalty (LOM)


After-tax Operating Cash Flow (LOM)


C1 Costs over LOM (ZnEq)*


Estimated All-In Costs (Total CAPEX plus OPEX, ZnEq)**


LOM Zinc Price


LOM Lead Price





*C1 cost is mine site cost plus smelting, transport and royalty
**All-in costs are C1 plus sustaining CAPEX

Cautionary Statement: The reader is advised that the PEA summarized in this press release is preliminary in nature and is intended to provide an initial, high-level review of the project’s economic potential and design options. The PEA mine plan and economic model includes numerous assumptions and the use of Inferred Resources. Inferred Resources are considered to be too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.

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 key properties are: 1) the Pine Point Mining Camp (“PPMC”), located in the Northwest Territories, for which the current PEA has indicated an after-tax NPV of $500M and IRR of 29.6%. The proposed mine, if it entered into production, would be the 4th largest in the Americas and the 9th in the world producing clean, high grade zinc and lead concentrates. The Project is host to a Mineral Resource of 12.9Mt of Indicated Mineral Resources grading 6.29% ZnEq and 37.6Mt of Inferred Mineral Resources grading 6.80% ZnEq. The PPMC is located on the south shore of Great Slave Lake in the Northwest Territories, near infrastructure and paved highway access and with 100 kilometres of viable haulage roads already in place. 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 Anacon and Gilmour South deposits. Please refer to the technical report entitled “NI 43-101 Maiden Resource Estimate for the Bathurst Mining Camp, New Brunswick, Canada” dated April 4, 2019 (with an effective date of February 20, 2019) which has been filed on SEDAR.