Osisko confident in Quebec copper project

Osisko Metals Inc. Oct. 27 said the latest results from drilling at Mount Copper continues to increase the area of known copper mineralization at this project on Quebec's Gaspé Peninsula.

Aside from advancing its flagship Pine Point zinc project in Northwest Territories, in July, Osisko exercised the option to acquire the Gaspé Copper Mine from Glencore Canada Corporation.

Located near Murdochville, Québec, Glencore provided a binding term sheet for Osisko to acquire a 100% interest in the past-producing Gaspé Copper Mine for an up-front payment of US$25 million, to be paid by Osisko Metals by way of a convertible note issued to Glencore upon successful closing of the transaction, and a cash payment of US$20 million, payable upon start of commercial production.

Additionally, Osisko had to have incurred drilling costs of C$5 million before June 30, 2022.

Osisko announced a maiden resource estimate for Gaspé in April that outlined a whopping 456 metric tons of inferred resource averaging 0.35% (3.1 billion lb) copper.

Falling just shy of its planned 30,000-meter infill drill program, Osisko completed a total of 25,665 meters at the Mount Copper deposit at the end of September.

The latest batch of assay results is from 10 holes drilled at Mount Copper, including four holes that tested the grade and the oxide content in a poorly drilled area, with the balance being drilled along the margins of the historical open pit.

Six of the 10 holes extended the mineralization beyond the 2022 mineral resource estimate block model, while none intersected significant oxide mineralization.

Highlights include:

• 102 meters averaging 0.57% copper and 2.2 grams per metric ton silver in hole 30-1004, which was located on Mount Copper and collared within the modeled pit shell. These results represent a better grade than that modeled within the current 2022 MRE block model.

• 334.7 meters averaging 0.21% copper and 1.32 g/t silver in hole 30-0999, which was drilled east of the historical Mount Copper open pit, extended mineralization significantly outside the MRE model.

• 272 meters averaging 0.39% copper and 2.69 g/t silver in hole 30-1008.

"This first infill drill program at Mount Copper continues to increase the known mineralization envelope and will allow better quantification of the oxidation levels within the modelled pit shell," said Osisko Metals CEO Robert Wares. "So far results are very satisfactory around Mount Copper itself where the previous drilling was relatively sparse. Sulphide mineralization increases towards the center of the deposit, below the historical pit, and we now look forward to results from directional drilling holes that were oriented to provide infill drilling below the bottom of the historical open pit mine, into the heart of the deposit."

The objective of this definition drilling program is to provide data to upgrade the inferred resources in the 2022 estimate to the measured and indicated categories in preparation for an eventual feasibility study, as well as to test Mount Copper's oxidation levels to determine if the mineralization can all be processed using conventional flotation.

So far, the results fall within and even above expectations; however, oxidation levels have been found to be significantly less than what was initially modeled. Metallurgical tests are underway to determine recoveries and concentrate quality of non-oxidized material within the 2022 MRE model.

Two long 1,200-meter direction drill holes were successfully completed, designed to test, at very low angles, higher-grade mineralization below the historical open pit.

Assays are pending.