Osisko Metals Releases 2024 Pine Point Mineral Resource Estimate: 49.5Mt of Indicated Mineral Resources Grading 5.52% ZnEq and 8.3Mt of Inferred Mineral Resources Grading 5.64% ZnEq

25 June 2024

MONTREAL, June 25, 2024 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the “Company” or “Osisko Metals”) (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) is pleased to announce the 2024 Mineral Resource Estimate Update (“2024 MRE”) for the Pine Point Project (“Pine Point” or “the Project”), located near Hay River, in the Northwest Territories of Canada. The 2024 MRE was prepared by BBA Inc. (“BBA”) and PLR Resources Inc. and will form the resource base for a Feasibility Study (“FS”) that is planned to officially start in Q3 2024. Cut-off grades are based on estimated long-term metal prices, mining costs, metal recoveries, concentrate transport, and smelter costs. The definition drill program supporting the 2024 MRE was executed between 2018 and 2024.

Highlights:

  • Indicated Mineral Resources of 49.5Mt grading 4.22% zinc and 1.49% lead (5.52% Zinc Equivalent (“ZnEq”)) containing approximately 4.6 billion pounds of zinc and 1.6 billion pounds of lead in situ (undiluted).
  • Inferred Mineral Resources of 8.3Mt grading 4.18% zinc and 1.69% lead (5.64% Zinc Equivalent (“ZnEq”)) containing approximately 0.7 billion pounds of zinc and 0.3 billion pounds of lead in situ (undiluted).
  • Compared to the previous MRE, the conversion of Inferred Mineral Resources (see press release dated July 13, 2022) increased the tonnage of the current Indicated Mineral Resources by 214% with an associated decrease in the quantity of Inferred Mineral Resources.
  • Mineral Resources reported for the 2024 MRE used variable cut-off grades between 1.41% and 1.51% ZnEq for open pit resources and between 4.10% and 4.40% ZnEq for underground resources.
  • The project's East Mill, Central, and North Zones now contain approximately 36.2Mt of Indicated Mineral Resources grading 5.22% ZnEq, or 3.2 billion pounds of zinc and 1.1 billion pounds of lead in situ.
  • New metallurgical test work is in progress. Previous metallurgical test work described in the 2022 PEA (see press release August 29, 2022) highlighted Pine Point as a potential producer of among the cleanest, high-grade zinc and lead concentrates globally. This adds value to the project as any and probably most smelter clients would want some Pine Point concentrate for blending purposes.

A Technical Report supporting this 2024 MRE will be filed within 45 days.

Robert Wares, CEO and Chairman of the Board, commented, “We are very happy to have met a critical milestone with this MRE that successfully converted the majority of the mineral resources to the Indicated category. With our partner Appian Capital Advisory LLP, we can now rapidly advance Pine Point to the Feasibility Stage following finalization of trade-off studies.”

Jeff Hussey, CEO of Pine Point Mining Limited, stated, “This represents the culmination of a multi-year definition drill program that raised the confidence level in the mineral resource base for the Feasibility Study. We will also continue exploring for new deposits and should significant discoveries be made this summer; they will be rapidly incorporated into the final inventory.”

The project has significant supporting infrastructure, including access by paved roads, a railhead in Hay River, and an on-site hydroelectric substation. Additionally, the project benefits from one hundred kilometres of pre-existing mine haul roads from the original mining operations. These provide access to most of the deposits in the 2024 MRE. The future concentrator and camp location will be adjacent to the original concentrator area.

The 2024 MRE is divided into five geographic zones, each composed of one or more individual deposits (see Map 1 and Table 1).

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