Osisko Metals presents its 2022 development program for pine

MONTREAL, Jan. 13, 2022 (GLOBE NEWSWIRE) – Osisko Metals Incorporated (the “Society” Where “Osisko Metals“) (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) is pleased to provide an overview of its 2022 development goals for the Pine Point project located near Hay River in the Northwest Territories, Canada. The winter drilling program is underway at the site and assay results for 2021 are pending.

  • Complete the 3D hydrogeological model: Following the dissemination of the preliminary results of the 3D hydrogeological model (see press release of October 27e), Osisko Metals will complete and publish the results of the new hydrogeological model in the first quarter of 2022. Work to date has identified substantial cost savings through lower dewatering estimates.
  • Update of Preliminary Economic Assessment: The 2020 EEP update is underway, which will incorporate higher long-term zinc and lead prices, anticipated cost savings from lower dewatering estimates based on the new 3D hydrogeological model, and updated key assumptions underlying the mine life plan with the goal of increasing total tonnage mined. The release date of the updated PEA is scheduled for the end of the first quarter of 2022.
  • Infill drilling campaign: Drilling will continue throughout 2022, with the primary objective of converting the mine life plan (“LOM”) resource to the indicated category by the second quarter of 2023, this will serve as the basis for the calculations of reservations in the feasibility study.
  • Progress of the Developer Assessment Report (“DAR”): A critical step in maintaining the project schedule is the authorization schedule. Osisko Metals is working with government and local communities to advance and bring the DAR forward in early 2023.
  • Launch of the feasibility study: Osisko Metals also plans to undertake work on the feasibility study after the completion of the updated PEA. With significant risk reduction activities completed in 2021, the Company plans to move rapidly towards the feasibility study phase with completion expected in the fourth quarter of 2023.

Robert Wares, Chief Executive Officer, commented: “The spot zinc price is very encouraging and remains well above market expectations, starting in 2022 above US $ 1.60 / lb. We believe this is the result of market supply / demand fundamentals and remain very bullish on zinc. The addition of zinc to the list of critical minerals by the US Geological Survey in 2021, along with the approval of massive infrastructure programs in the US and Europe, indicate very favorable market demand dynamics. This growing demand, coupled with the decrease in supply associated with mine closures, will continue to foster strong markets for zinc over the next several years, making Pine Point a key global development project.

Commodity metal prices remain very strong

While the high prices of copper and gold in 2021 attract a lot of market attention, zinc and lead both performed very well throughout the second half of 2021 and started 2022 near 10 highs. year. The strong price performance can be attributed to strong demand both in China and in Western economies. As mentioned earlier, with the big infrastructure pushes associated with decarbonization programs globally, demand is not expected to show any signs of slowing down. Importantly, the big waves of zinc supplies have been slow to materialize, if at all. Many low-cost, large-scale mines have been slowly replaced by smaller operations over the past two decades and the trend continues. The combination of the large size of the Pine Point project and the potential for high-quality concentrate production, combined with relatively easy access to supporting infrastructure, strengthens Pine Point’s position as the world’s premier zinc development project. .

Overview of the 2021 dewatering milestone

The press release regarding the completion of a 3D hydrogeological model for the “C1 cluster” of mineral deposits in 2021 was a significant risk reduction event for Pine Point. Data confirms that groundwater flow at Pine Point is preferentially controlled by subvertical structural discontinuities such as fracture zones or low displacement faults, with little evidence of significant groundwater flow from aquifers of training in Sulfur Point or Pine Point formations. This means that there will be significant reductions in operating and sustaining capital expenditures associated with the dewatering estimates on the LOM compared to the costs included in the PEA 2020 business model for the Pine Point project. The 3D hydrogeological model is expected to be completed and published in the first quarter of 2022.

Qualified person

Mr. Robin Adair is the Qualified Person and Vice President of Exploration for Osisko Metals Incorporated. He is responsible for the technical data relating to drilling in this press release and is a registered professional geologist in the Northwest Territories.

Mr. Michael Verreault P.Eng. MSc, will act as a qualified person for Osisko Metals with regard to hydrogeological work. He is a professional geological engineer with a master’s degree in hydrogeology and is responsible for the technical hydrogeological data reported in this press release.

About Osisko Metals

Osisko Metals Incorporated is a Canadian value-creating exploration and development company in base metals. The Company controls one of the major zinc mining camps in Canada, the Pine Point Project, located in the Northwest Territories for which the 2020 PEA reported an after-tax NPV of $ 500 million and an IRR of 29 , 6%. The 2020 PEA is based on current mineral resource estimates suitable for surface and shallow underground mining and consists of 12.9 Mt grading 6.29% ZnEq of indicated mineral resources and 37, 6 Mt grading 6.80% ZnEq of inferred mineral resources. Please refer to the technical report entitled “Preliminary Economic Assessment, Pine Point Project, Hay River, Northwest Territories, Canada” dated July 30.e, which was filed on SEDAR. Pine Point is located on the south shore of Great Slave Lake in the Northwest Territories, close to infrastructure, paved road access and has an electrical substation as well as 100 kilometers of viable haul roads already in place.

The current mineral resources mentioned in this press release comply with NI43-101 standards and have been prepared by independent qualified persons as defined by NI43-101 guidelines. The above mentioned mineral resources are not mineral reserves because they have not demonstrated their economic viability. The quantity and grade of declared Inferred Mineral Resources are conceptual in nature and are estimated based on limited geological and sampling evidence. The geological evidence is sufficient to imply but not to verify the geological quality and / or the quality of the continuity. Zinc equivalency percentages are calculated using metal prices, expected metal recoveries, concentrate grades, transportation costs, metals payable to the smelter and charges (see respective technical reports for More details).

For more information on this press release, visit www.osiskometals.com or contact:

Robert Wares, CEO
Osisko Metals Incorporated
Email: [email protected]
www.osiskometals.com

Caution regarding forward-looking information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws based on expectations, estimates and projections as of the date of this press release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance are not statements of historical fact and constitute forward-looking information. This press release may contain forward-looking information regarding the Pine Point Project, including, but not limited to, EEP and IRR results, NPV and estimated costs, production, production rate and life. of the mine ; the expectation that the Pine Point project will be a robust and profitable operation at various prices and assumptions; the high quality expected of Pine Point concentrates; the potential impact of the Pine Point Project in the Northwest Territories, including, but not limited to, potential tax revenue generation and job creation; and the Pine Point project with the potential for mineral resource expansion and new discoveries. Forward-looking information is not a guarantee of future performance and is based on a number of management’s estimates and assumptions, in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including, without limitation, assumptions regarding: favorable equity and debt markets; the ability to raise additional capital on reasonable terms to advance the development of its projects and pursue planned exploration; future prices of zinc and lead; the timing and results of exploration and drilling programs; the accuracy of mineral resource estimates; production costs; the operating conditions being favorable; political and regulatory stability; receiving government and third party approvals; licenses and permits are received on favorable terms; lasting stability of the workforce; stability of financial and capital markets; availability of equipment; and positive relationships with local groups. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from this forward-looking information are set out in the Company’s public documents filed at www.sedar.com. Although the Company believes that the assumptions and factors used in the preparation of forward-looking information in this press release are reasonable, one should not place undue reliance on such information, which only applies as of the date of this press release. press release, and no assurance can be given as such events will occur within the timeframe disclosed or will not occur at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

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