Osisko Metals Incorporated (TSX-V: OM) (FRANKFURT: 0B5) is pleased to announce the maiden Mineral Resource Estimate for its 100% owned Eastern Bathurst Mining Camp Project incorporating both the Key Anacon Deposits and the Gilmour South Deposit, all located south of the city of Bathurst, New Brunswick (see Regional Map).
Highlights:
Jeff Hussey, President & Chief Executive Officer, commented: “We are very pleased to announce our maiden resource for the EBMC as it reaffirms our commitment to create value in this world-class historical zinc mining camp. We are particularly excited by the exploration targets outlined in the Titan Zone and adjacent Copper Zone. They have excellent upside potential and remain open at depth and along strike. We plan to embark on an aggressive drill campaign in 2019 to further upgrade and define extensions to these deposits. Furthermore, EBMC benefits from available infrastructure and proven conventional metallurgy. With new MREs at both Pine Point and Bathurst, Osisko Metals is well positioned to be at the forefront of base metal exploration and development in both of Canada’s premier historical zinc mining camps.”
Table 1: Mineral Resource Estimate as Reported by AGP Mining Consultants Inc. | |||||||||||
Mineralized Zones | Resource Category | Grades (@ 5.5 ZnEq cut-off) | In-situ Metal | ||||||||
Tonnes | Zn | Pb | Cu | Ag | ZnEq | Zn | Pb | Cu | Ag | ||
mil | % | % | % | g/t | % | mil | mil | mil | mil | ||
lbs. | lbs. | lbs. | oz | ||||||||
Key Anacon Main | Indicated | 1.67 | 6.02 | 2.52 | 0.14 | 74.20 | 9.31 | 221.0 | 92.5 | 5.1 | 4.0 |
Key Anacon Titan | 0.29 | 4.36 | 1.57 | 0.65 | 38.80 | 7.25 | 28.2 | 10.1 | 4.2 | 0.4 | |
Total Indicated @ 5.5 ZnEq cut-off | 1.96 | 5.77 | 2.38 | 0.22 | 68.90 | 9.00 | 249.1 | 102.6 | 9.3 | 4.3 | |
Key Anacon Main | Inferred | 0.61 | 5.83 | 1.98 | 0.05 | 68.20 | 8.49 | 77.7 | 26.5 | 0.6 | 1.3 |
Key Anacon Titan | 0.98 | 4.12 | 1.62 | 0.78 | 42.90 | 7.35 | 89.5 | 35.2 | 17 | 1.4 | |
Gilmour South | 2.26 | 5.74 | 1.30 | 0.19 | 44.30 | 8.08 | 286.8 | 64.8 | 9.4 | 3.2 | |
Total Inferred @ 5.5 ZnEq cut-off | 3.85 | 5.34 | 1.49 | 0.32 | 47.70 | 7.96 | 453.0 | 126.4 | 27.0 | 5.9 |
The MRE was prepared by AGP Mining Consultants Inc. and the technical report will be prepared and filed in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. The report will be available on SEDAR (www.sedar.com) under the Company’s profile within 45 days. The MRE incorporates cut-off grades based on estimated long-term metal prices, mining costs, metal recoveries, and standard payable rates from smelters.
Key Anacon’s Main and Titan Zone are located 1,500 metres apart. The area between the two deposits is poorly explored with limited drilling. Gilmour South is located approximately 27 kilometres southwest and connected to the Key Anacon site by major forestry roads. All deposits are hosted within the Brunswick Horizon that is the key stratigraphy that hosted the Brunswick No. 12 & No. 6 mines that were in production over a period of fifty years.
Table 2: Sensitivity to Zinc Equivalent Cut-Off Grade | ||||||||||||
Deposit Names | Resource Category | ZnEq Cut-off | Tonnes | Grades (@ 5.5 ZnEq cut-off) | In-situ Metal | |||||||
Zn | Pb | Cu | Ag | ZnEq | Zn | Pb | Cu | Ag | ||||
% | mil | % | % | % | g/t | % | mil lbs. | mil lbs. | mil lbs. | mil oz | ||
Key Anacon Main | Indicated | > 8.0 | 0.98 | 7.09 | 3.09 | 0.15 | 94.60 | 11.15 | 152.8 | 66.5 | 3.2 | 3.0 |
> 7.0 | 1.23 | 6.66 | 2.85 | 0.14 | 85.60 | 10.39 | 181.1 | 77.6 | 3.8 | 3.4 | ||
> 6.0 | 1.51 | 6.25 | 2.64 | 0.14 | 78.00 | 9.69 | 207.3 | 87.5 | 4.6 | 3.8 | ||
> 5.5 | 1.67 | 6.02 | 2.52 | 0.14 | 74.20 | 9.31 | 221.0 | 92.5 | 5.1 | 4.0 | ||
> 5.0 | 1.85 | 5.77 | 2.40 | 0.14 | 70.40 | 8.91 | 234.7 | 97.5 | 5.7 | 4.2 | ||
> 4.0 | 2.17 | 5.37 | 2.20 | 0.14 | 64.10 | 8.26 | 256.1 | 104.8 | 6.8 | 4.5 | ||
Key Anacon Titan | Indicated | > 8.0 | 0.08 | 5.85 | 2.30 | 0.59 | 54.30 | 9.40 | 9.9 | 3.9 | 1.0 | 0.1 |
> 7.0 | 0.13 | 5.31 | 2.03 | 0.61 | 48.90 | 8.63 | 14.9 | 5.7 | 1.7 | 0.2 | ||
> 6.0 | 0.23 | 4.67 | 1.71 | 0.64 | 41.90 | 7.69 | 23.4 | 8.6 | 3.2 | 0.3 | ||
> 5.5 | 0.29 | 4.36 | 1.57 | 0.65 | 38.80 | 7.25 | 28.2 | 10.1 | 4.2 | 0.4 | ||
> 5.0 | 0.35 | 4.11 | 1.47 | 0.67 | 36.60 | 6.93 | 31.7 | 11.3 | 5.2 | 0.4 | ||
> 4.0 | 0.56 | 3.47 | 1.23 | 0.67 | 31.20 | 6.01 | 42.5 | 15.1 | 8.2 | 0.6 | ||
Key Anacon Main | Inferred | > 8.0 | 0.25 | 7.72 | 2.73 | 0.05 | 99.30 | 11.46 | 42.7 | 15.1 | 0.3 | 0.8 |
> 7.0 | 0.33 | 7.08 | 2.47 | 0.05 | 90.20 | 10.47 | 52.1 | 18.2 | 0.3 | 1.0 | ||
> 6.0 | 0.45 | 6.42 | 2.20 | 0.05 | 78.70 | 9.42 | 64.1 | 22.0 | 0.5 | 1.1 | ||
> 5.5 | 0.61 | 5.83 | 1.98 | 0.05 | 68.20 | 8.49 | 77.7 | 26.5 | 0.6 | 1.3 | ||
> 5.0 | 0.81 | 5.30 | 1.78 | 0.04 | 59.80 | 7.67 | 94.5 | 31.6 | 0.8 | 1.6 | ||
> 4.0 | 1.51 | 4.29 | 1.45 | 0.03 | 46.80 | 6.19 | 142.6 | 48.3 | 1.2 | 2.3 | ||
Key Anacon Titan | Inferred | > 8.0 | 0.28 | 5.65 | 2.28 | 0.68 | 53.80 | 9.35 | 34.7 | 14.0 | 4.2 | 0.5 |
> 7.0 | 0.49 | 5.10 | 2.06 | 0.66 | 50.90 | 8.55 | 54.8 | 22.1 | 7.1 | 0.8 | ||
> 6.0 | 0.79 | 4.51 | 1.78 | 0.71 | 45.70 | 7.76 | 78.0 | 30.8 | 12.2 | 1.2 | ||
> 5.5 | 0.98 | 4.12 | 1.62 | 0.78 | 42.90 | 7.35 | 89.5 | 35.2 | 17.0 | 1.4 | ||
> 5.0 | 1.18 | 3.87 | 1.51 | 0.79 | 40.80 | 7.01 | 100.7 | 39.4 | 20.6 | 1.5 | ||
> 4.0 | 1.80 | 3.24 | 1.24 | 0.80 | 36.00 | 6.12 | 128.6 | 49.1 | 31.9 | 2.1 | ||
Gilmour South | Inferred | > 8.0 | 0.95 | 7.13 | 1.74 | 0.25 | 61.50 | 10.30 | 149.7 | 36.6 | 5.3 | 1.9 |
> 7.0 | 1.24 | 6.64 | 1.63 | 0.24 | 58.70 | 9.64 | 181.5 | 44.4 | 6.6 | 2.3 | ||
> 6.0 | 1.89 | 6.00 | 1.39 | 0.20 | 48.20 | 8.52 | 250.4 | 58.0 | 8.5 | 2.9 | ||
> 5.5 | 2.26 | 5.74 | 1.30 | 0.19 | 44.30 | 8.08 | 285.8 | 64.8 | 9.4 | 3.2 | ||
> 5.0 | 2.48 | 5.56 | 1.26 | 0.18 | 42.60 | 7.83 | 304.0 | 68.9 | 10.0 | 3.4 | ||
> 4.0 | 3.22 | 4.98 | 1.17 | 0.17 | 38.00 | 7.04 | 353.5 | 83.1 | 11.9 | 3.9 |
Exploration Target and Potential for Mineralization.
Both Key Anacon’s Main and Titan Zones remain open at depth and along strike, indicating significant areas for brownfield exploration upside. Furthermore, at this time, the historical drilling in the Copper Zone adjacent to the Titan Zone and below the Titan Zone MRE boundaries could not be incorporated into the MRE due to the drill spacing between intercepts being too sparse to interpolate (Table 3 and Titan Zone Longitudinal and Cross Section). This upside potential, combined of multiple exploration target areas, is supported by existing exploration drill holes which contain several lead and zinc as well as copper mineralized intercepts at the Titan Zone and are located outside the MRE boundaries.
The Company’s objective is to further define and explore for extensions of the current mineral resources through focused drill programs and to carry out regional brownfield exploration in the vicinity of both Key Anacon and Gilmour South (see Main Zone and Gilmour South Longitudinal Section).
Table 3: Key Anacon Titan Zone – Exploration Targets | ||||||||
Hole Name | From | To | Width | Zn | Pb | Cu | Ag | ZnEq |
(m) | (m) | (m) | % | % | % | g/t | % | |
Copper Mineralization | ||||||||
KA9333 | 596.50 | 627.00 | 30.60 | 0.29 | 0.12 | 0.76 | 7.6 | 1.84 |
KA9337 | 737.00 | 743.00 | 6.00 | 0.50 | 0.10 | 2.71 | 31.4 | 5.89 |
KA9338 | 646.00 | 650.00 | 4.00 | 0.01 | 0.01 | 0.99 | 9.1 | 1.92 |
including | 680.00 | 683.30 | 3.30 | 0.72 | 0.12 | 1.29 | 16.8 | 3.37 |
KA9361 | 920.00 | 926.10 | 6.10 | 0.28 | 0.13 | 3.60 | 23.0 | 7.09 |
KA-01-11 | 969.73 | 972.42 | 2.69 | 0.13 | 0.08 | 2.33 | 11.6 | 4.47 |
and | 1008.40 | 1010.42 | 2.02 | 0.46 | 0.12 | 1.37 | 9.3 | 3.11 |
Zinc-Lead mineralization | ||||||||
KA-01-12 | 825.36 | 845.51 | 24.15 | 4.27 | 1.15 | 0.33 | 38.5 | 6.32 |
including | 857.84 | 871.50 | 13.66 | 5.49 | 1.84 | 0.31 | 53.4 | 8.24 |
KA-01-15B* | 1247.20 | 1256.50 | 9.30 | 3.91 | 1.17 | 0.40 | 28.9 | 5.92 |
and | 1274.00 | 1287.00 | 13.00 | 6.87 | 2.38 | 0.38 | 49.8 | 10.03 |
and | 1301.20 | 1325.47 | 24.70 | 4.26 | 1.29 | 0.21 | 39.1 | 6.20 |
*See press release dated November 13, 2018 and see note 16 for ZnEq calculation
Notes Regarding Mineral Resource Estimate:
Table 4: Eastern BMC MRE – Total Drill Hole Statistics | ||||||
Deposit Name | In Database | Within Mineralized Wireframes | ||||
# of Holes | Length (m) | # of Assays | # of Holes | Length (m) | # of Assays | |
Key Anacon Main | 376 | 73,523 | 5,846 | 263 | 4,564 | 2,394 |
Key Anacon Titan | 92 | 32,602 | 2,404 | 38 | 1,217 | 1,238 |
Gilmour South | 110 | 50,328 | 2,215 | 39 | 958 | 871 |
Total | 578 | 156,453 | 10,465 | 340 | 6,739 | 4,503 |
Table 5: Eastern BMC – Osisko Metals Drill Hole Statistics | ||||||
Deposit Name | In Database | Within Mineralized Wireframes | ||||
# of Holes | Length (m) | # of Assays | # of Holes | Length (m) | # of Assays | |
Key Anacon Main | 35 | 13,522 | 2,115 | 26 | 580 | 608 |
Key Anacon Titan | 25 | 9,498 | 1,137 | 21 | 630 | 666 |
Gilmour South | 32 | 15,455 | 913 | 17 | 500 | 531 |
Total | 92 | 38,475 | 4,165 | 64 | 1,710 | 1,805 |
About the Eastern Bathurst Mining Camp
The EBMC comprises the Brunswick Horizon extending from the prolific Brunswick No.12 and No. 6 Mines to Gilmour South and extending for an additional 30 kilometres along the surface trace of the Portage River Anticline before reaching the Key Anacon Project. Osisko Metals has secured all of this favorable stratigraphy and looks forward to unlocking the potential in the poorly explored corridor beneath the Carboniferous cover from Gilmour South to Key Anacon.
About Key Anacon
The Key Anacon project is located approximately 20 km south of the town of Bathurst, New Brunswick and 16 km southeast of the former Brunswick No.12 mine. It is accessible by paved roads. The property contains two known Bathurst-type volcanogenic massive sulphide deposits containing zinc, lead, copper and silver. The Key Anacon Main Zone and Titan Zone deposits are situated at the same stratigraphic horizon that hosted the Brunswick No. 12 & No. 6 mines. The property covers approximately 12 kilometres of favorable Nepisiguit Falls stratigraphy that also extends onto the surrounding claims held 100% by Osisko Metals.
Except for sporadic exploration programs conducted in 1992-1993 and 2000, almost all of the drilling was completed in the 1950’s and 60’s, prior to currently required standards for quality assurance and quality control. The earlier drilling led to the establishment of a 460-metre-deep shaft, a ventilation raise, eight levels and three sub-levels at the Main Zone. The deposit is open at depth and along strike.
Exploration potential at Key Anacon and the Company’s adjacent properties is considered to be excellent on the basis of the presence of the Brunswick Horizon stratigraphy and the expansive zones of mineralization and alteration. The mineralized horizon at both the Titan Zone and Main Zone are open at depth and along strike. Exploration and development in the 1950’s and 1960’s were terminated due to the pullback of the zinc commodity price at that time. Since then, only two minor exploration programs were conducted by major mining companies.
About Gilmour South
The Gilmour South project is located 27 kilometres by road from Key Anacon and covers 1.4 kilometres of the “Brunswick Horizon”. It is located 20 km south of the former Brunswick No. 12 mine and 7 km south of the former Brunswick No. 6 Mine. Mineralization is characterized by zinc-lead-copper-silver-bearing sulphide mineralization, host-rock types and alteration similar to the Brunswick Mines stratiform zinc-lead sulphide mineralization otherwise known as the “Brunswick Horizon”. Mineralization has not been well-delineated and has been investigated by relatively sparse historical drilling at approximately 200 metre centres.
Qualified Person
Mr. Robin Adair is the Qualified Person and the Vice President Exploration for Osisko Metals Incorporated. He is responsible for the technical data reported in this news release and a Professional Geologist registered in New Brunswick.
Quality Assurance / Quality Control
Osisko Metals adheres to a strict Quality Assurance and Quality Control program with regard to core handling, sampling, transportation of samples and lab analyses. Drill core from Osisko Metals Bathurst Camp projects is securely transported to its core facility in Bathurst, NB where it is logged and sampled. Samples selected for assay were shipped via secure transportation to the Actlabs preparation facility in Fredericton, NB. Pulps were analyzed at Actlabs facility in Ancaster Ontario. Zinc, lead and copper were analyzed by assay grade peroxide fusion (total digestion) with ICP-AES finish. Silver was analyzed by gravimetric fire assay and gold by fire assay-atomic absorption.
About Osisko Metals
Osisko Metals is a Canadian exploration and development company creating value in the base metal space with a focus on zinc mineral assets. The Company controls Canada’s two premier zinc mining camps. The Company’s flagship, the Pine Point Mining Camp, located in the Northwest Territories, has an Inferred Mineral Resource of 38.4 Mt grading 4.58% zinc and 1.85% lead, making it the largest high grade, pit constrained zinc deposit in Canada (please refer to the Amended Technical Report for further information). Within the Bathurst Mining Camp, located in northern New Brunswick, the Company is focused on drilling and developing the Key Anacon Project, which previously had only sporadic exploration work since the 1960’s. In 2019, the Company will continue to diligently develop and explore in order to confirm and grow both projects. In Québec, the Company owns 42,000 hectares that cover 12 grass-root zinc targets that will be selectively advanced through exploration.
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