EXPLORATION AND DEVELOPMENT COMPANY WITH DOMINANT POSITIONS IN CANADA’S TWO PREMIER PAST-PRODUCING ZINC CAMPS
Osisko Metals Incorporated
Osisko Metals (TSXV: OM) (the “Company”) is a Canadian exploration and development company creating value in the base metal space with an emphasis on zinc mineral assets. The Company controls Canada’s two premier zinc mining camps, namely the development-stage Pine Point Camp (“PPC”) located in the Northwest Territories and the advanced-exploration Bathurst Mining Camp (“BMC”), located in northern New Brunswick. The Company is currently drilling in both camps with the goal of completing 100,000 metres of drilling in 2018 (~50% PPC and 50% BMC). The focus of this program is upgrading and expanding historical deposits (high-priority) into NI 43-101 compliance and testing metals brownfields targets. In Québec, the Company owns 42,000 hectares that cover 12 grass-root zinc targets that will be selectively advanced through exploration. In parallel, Osisko Metals is monitoring several base metal-oriented peers for projects and acquisition opportunities. Osisko Gold Royalties Ltd. (TSX/NYSE: OR) and Osisko Mining Inc. (TSX: OSK) are significant shareholders of the Company.
- Consolidated two of Canada’s premier past-producing zinc camps: the development-stage Pine Point Camp (PPC) and the advanced-exploration Bathurst Mining Camp.
- The 100,000 metre drill program in the BMC and PPC is one of the largest base metal exploration programs in the junior mining sector.
- The Pine Point Camp was Canada’s most profitable open pit zinc-lead mines and has 46 undeveloped historical deposits across the property containing 70Mt grading 4.2% Zn & 1.6% Pb (historical estimate and non NI43-101 compliant).
- The Bathurst Mining camp hosted Brunswick No.12, the largest Canadian zinc mine (past production of 137Mt grading 8.74% Zn, 3.44% Pb, 0.37% Cu, and 102 g/t Ag), where Osisko Metals has consolidated over 63,000 hectares including the Brunswick Belt stratigraphy.
- Ability to rapidly advance projects thanks to the synergy with the Osisko Group of companies; sharing experience, technical expertise and access to capital.
- $35M in cash to support exploration and development efforts in both camps.
Share Price Performance
Robert Wares – Chairman
Jeff Hussey – Chief Executive Officer & President, Director
Paul Dumas – Chief Financial Officer & Executive VP, Director
John Burzynski – Director
Luc Lessard – Director
Amy Satov – Director
Claude Charron -Director
Osisko Gold Royalties and Osisko Mining – 11.50%
Renvest Mercantile Bancorp – 6.20%
M&G Investment Management – 5.80%
JP Morgan Asset Management (UK) – 4.80%
Blackrock Investment Management (UK) – 4.40%
Zebra Holdings and Investments S.a.r.l – 3.90%
Caisse de depot et placement du Quebec – 1.70%
Management & Insiders – 8.20%
Total – 46.50%
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Pine Point Camp Overview
Excellent High-grade Concentrates
- Carbonate-hosted mineralization, pre-concentration & conventional flotation.
- While in operation, Pine Point’s concentrate was a premier blending product due to negligible deleterious elemental content.
- Zinc concentrate content was between 58-60% while lead was typically above 65%.
- The zinc concentrate is characterized by low iron, low silica and manganese with mercury, arsenic and antimony below detectable limit.
- Strong interest in both zinc and lead concentrates from potential off-take partners and traders.
- Within 42km of Hay River, known as the “Hub of the North” with CN rail terminal and airport.
- Paved road access from Edmonton and along southern edge of property.
- Low-cost hydro-electric power (5-12c/kWh) available on site from Taltson Dam.
- 100 kilometres of 25-metre-wide haul roads across property requiring minimal upgrade.
2017 JDS Positive Preliminary Economic Analysis (PEA)
Readers are cautioned that the PEA is preliminary in nature and includes the use of inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the inferred resources will be converted to the indicated or measured categories, or that the potential measured or indicated resources would be converted to the proven or probable mineral reserve categories. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimates of mineral resources in the PEA and the mineral resource statement may be materially affected by environmental, permitting, legal, title taxation, socio-political, marketing or other relevant issues. Refer to the technical report titled: “NI 43-101 Preliminary Economic Assessment Technical Report on the Pine Point Zinc Project, Northwest Territories, Canada” dated June 1, 2017, prepared by Garett Macdonald, P.Eng, Kelly McLeod, P.Eng, Dino Pilotto, P.Eng, Ken Embree, P.Eng, Albert Daniel Siega, P.Eng and Paul Gann, P. Geo. and filed on SEDAR by Pine Point Mining Limited (formerly, Darley Bay Resources Limited)
- Mine plan incorporates 10 open pit deposits that can be processed through conventional methods to achieve high recoveries (85+% for both zinc and lead).Covers 11,784 hectares.
- Deposits in mine plan are from a restricted subset of the 46 historical deposits. Multiple opportunities for upside from 2017 JDS PEA; higher recoveries, higher grade historical deposits.
- Exploration upside is significant.
- Osisko Metals will revise the project scope, economics and optimize the life of Mine plan while executing an aggressive exploration campaign, focused on Clusters 1 & 2.
Pine Point, 2018 Objectives
- 50,000-metre drill program with the objective of confirming, upgrading and expanding the portfolio of over 40 historical deposits.
- Conduct airborne geophysical surveys including gravity gradiometry, not previously available to past operators, and detailed magnetics to identify new targets below or adjacent to historical deposits.
- Metallurgical testing, advanced baseline environmental studies and engineering trade-off studies will be performed as part of an aggressive development program concurrent to the large brownfield exploration program.
Bathurst Mining Camp Overview – Dominant Position In The BMC
- Largest land holding in the Bathurst Mining Camp with over 63,000 hectares along key stratigraphy contemporaneous with the Brunswick Horizon.
- Multiple high priority, under-explored historical resources now being drilled as part of the 50,000-metre program.
- Exploration focus is on the Key Anacon and Key Anacon East as well as the Mt Fronsac North and Gilmour South historical deposits.
Focus on Key Anacon and Key Anacon East
- Key Anacon is hosted within the favorable Brunswick Horizon with strong alteration and folding typically associated to major deposits in the BMC.
- Key Anacon contains 1.87Mt grading 6.93% Zn, 2.63% Pb, 0.16% Cu and 84g/t Ag and remains open along strike and below 400 metres depth.
- Key Anacon East (“KA East”) is located 1.5km to the northeast. Drilling at KA East was never incorporated into the historical Key Anacon resource estimate.
- Best intercept reported by previous operators at KA East was 19.9 metres grading 7.68% Zn, 3.58% Pb, 0.33% Cu and 78 Ag/t. It remains open along strike and dip.
- Drilling at Key Anacon East was never incorporates into historical Key Anacon resource estimates.
Drilling Underway At Mt Fronsac North
- MF00-31-Wedge intersected 12.4 metres of 9.29% Zn and 2.84% Pb, and 45.1 grams per tonne Ag confirming the high-grade nature of this mineralization.
- High grade copper lens (1+%) identified is similar to other large BMC deposits.
- Unclassified historical resource (non NI43-101 compliant –see “Note re Historical Estimates” below) totals 1.26Mt grading 7.65% Zn, 2.18% Pb and 40.3g/t Ag and remains open along strike and dip.
Bathurst Mining Camp 2018 Objectives
- 50,000-metre exploration program converting historical deposits to N143-101 compliance and testing coincident gravity-EM anomalies and greenfield exploration targets.
- A minimum of 12,000 metres will be drilled at Key Anacon and Key Anacon East with the objective of converting and expanding the historical resources.
- At Mt Fronsac, drilling will focus on testing large geophysical anomalies that are on strike from the known mineralization.
- Osisko Metals will begin drilling a number of untested coincident airborne gravity and EM targets located throughout the BMC during the summer of 2018
Note re Historical Estimates: This presentation contains disclosure of historical estimates which were obtained from the Cominco, the previous operator of the former Pine Point Mine (with respect to PPC), and the New Brunswick Government Mineral Deposits database (with respect to BMC). Readers are cautioned that Osisko Metals has not completed the work required to independently analyze and verify the results of previous operators nor has a qualified person done sufficient work to classify the historical estimates as current mineral resources or mineral reserves. Osisko Metals is not treating the historical estimate as current mineral resources, and it believes these historical estimates provide an indication of the potential of the property and are reported because they are deemed relevant to the description of the properties.