Osisko Metals Incorporated (OMI) is pleased to announce the first drilling results from the Fall 2019 drill program at Pine Point.
OMI is a Canadian exploration and development company creating value in the base metal space with a focus on zinc mineral assets.
The Company’s flagship property is the Pine Point Mining Camp (PPMC), located in the Northwest Territories, which has an Inferred Mineral Resource of 38.4 Mt grading 4.58 per cent zinc and 1.85 per cent lead (6.58 per cent ZnEq), making it the largest pit-constrained zinc deposit in Canada.
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 haulage roads already in place.
Twenty-six exploration drill holes were completed in the L-37 and N-38 areas within the East Mill Zone. Highlights include drill hole L37-19-PP-001 that intersected 8.68 per cent zinc and 2.45 per cent lead over 6.40 metres and drill hole L37-19-PP-011 intersected 6.43 per cent zinc and 0.87 per cent lead over 14 metres.
All intersections are within flat-lying tabular-style deposits and are located between 7 to 36 metres vertical depth, adding more near-surface, high-grade mineralization in proximity to the Company’s current Inferred Mineral Resource Estimate (MRE).
The focus in this area of the East Mill Zone is to connect the mineralization between two existing tabular deposits.
“These early results from the start of our current exploration program are very encouraging,” Jeff Hussey, President & CEO of Osisko Metals said. “Unlike our previous infill drilling campaign, we are now focused on expanding mineralization and identifying new deposits, with a focus on vertical prismatic deposits.”
Hussey says the program will be further adapted once processing and interpretation have been completed on the eagerly anticipated airborne gravity gradiometry data.
In 2019-2020, the company will explore additional mineral resources and continue advancing the overall project.
On October 15, OMI announced that it has entered into a binding term sheet with Karst Investments LLC (KARST) and its owners to acquire a 100 per cent interest in KARST, which holds a 3 per cent net smelter returns royalty on the mineral leases comprising the Pine Point Project. Osisko Metals will acquire KARST in exchange for an aggregate consideration of $8.5 million US in cash and 2 million common shares of the Corporation.
Following the closing of the Karst Purchase, the Pine Point Project will not be subject to any other royalties, back-in rights, payments, or other agreements or encumbrances other than the territorial royalty (calculated as a tax but called a royalty by the NWT government).
“We are very pleased to have acquired the outstanding 3 per cent NSR on Pine Point at an early development stage,” Paul Dumas, Executive VP of Finance said. “This allows us to unencumber the asset as we continue to grow the mineral resource base.”
Dumas says this acquisition is strategic as it will provide Osisko Metals financial flexibility in the future as they continue to advance at Pine Point.
Completion of the Karst Purchase is subject to the satisfaction of certain closing conditions Dumas says including, but not limited to, entering into a definitive purchase agreement with Karst and its owners and the receipt of all necessary approvals, including the conditional approval of the TSX Venture Exchange.