Osisko Metals Announces Final 2022 Drill Results With Up to 10.0 Metres Grading 13.5% Zinc and 4.1% Lead

12 January 2023

MONTREAL, Jan. 12, 2023 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the "Company" or "Osisko Metals") (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) is pleased to announce all remaining results from the 2022 definition drilling program at its Pine Point Project, located in the Northwest Territories, Canada. This ongoing drill program is designed to achieve an average drill spacing of approximately 30 metres within the modelled mineral resources. This spacing is intended to upgrade resources presently classified as Inferred to the Indicated category in order to be used in the Feasibility Study (“FS”) to be initiated in H2 2023.

The Company intends to complete the remainder of the infill drill program by the end of H1 2023. Six diamond drills are currently active at Pine Point and the Company plans to drill approximately 29,000 metres before spring. This program is primarily designed to convert the majority of deposits to the Indicated Mineral Resource category and will also explore zones between deposits where previous widely-spaced drilling suggests the potential for continuous mineralization.

Drill Hole Assay Composite Highlights:

  • K51-22-PP-002: 10.00 metres, grading 13.46% Zn and 4.14% Pb (17.60% Zn+Pb)
  • N204-22-PP-007: 10.00 metres, grading 7.63% Zn and 2.49% Pb (10.12% Zn+Pb)
  • N204-22-PP-013: 11.00 metres, grading 8.92% Zn and 2.15% Pb (11.07% Zn+Pb)

Robert Wares, CEO and Chairman of the board, commented: “These positive definition drilling results continue to meet or exceed our expectations. The final 29,000 metre winter definition drill program has started and will supply required infill results to allow for a new mineral resource estimate that will be integrated into the feasibility study that will commence in H2 2023. This is at a time when the zinc price is rising significantly due to historically low inventory levels on Metal Exchanges, currently less than ten percent of what is considered critical levels of inventory. Pine Point would produce exceptionally clean and high-grade zinc concentrate that would be sought after by any number of smelters and traders globally.”

All intercepts reported below were within, or immediately adjacent to, the currently modelled and proposed open pit shells designed for the PEA. The results reported in Tables 1 & 2 below are within expectations for the infill program needed to convert the North, C2, EM, and N204 Zone deposits (K51, L27, M40, N204, N32, N33, O26, O27, Y56, and Y58) to the Indicated Mineral Resource category (See Map).

All reported results are from Tabular-style deposits characterized by continuous, flat-lying mineralization. More vertically continuous Prismatic-style mineralization was locally encountered within the Tabular-style mineralization.

Hydrogeological Program Update

Hydrogeological measurements over the past two years have consisted of: 1) Profile Tracer Tests that measure groundwater flow and conductivity of the bedrock stratigraphy within the drill hole, 2) Injection Tests to model aquifer characteristics, and 3) Physio-chemical measurements of the water within the drill holes to characterize the groundwater in and around the deposits.

This data was used to corroborate the results of the hydrogeological model used in the 2022 Preliminary Economic Assessment. In Q1 2023 the Company will evaluate various life-of-mine “Cluster” strategies in preparation for the FS. The Cluster strategy uses an area of approximately three kilometres by one kilometre in the North-South direction. The concept is that dewatering a mine site will impact and lower the amount of water to be pumped from nearby mine sites.

The hydrogeological model is continuously evolving as new field data is incorporated. The updated hydrogeological model will be used to continuously improve forecasts for dewatering volume estimates for the upcoming Pine Point FS. Additional hydrogeological monitoring wells will continue to be added as the 2023 infill drilling is completed this winter.

See full release for Drill Hole Composites.