Osisko Metals (TSXV: OM;OTCQX: OMZNF) has commenced its feasibility study for its Pine Point project. It expects the study to be completed in the second quarter of 2025.
Osisko is in a joint venture, called Pine Point Mining (PPML), with Appian Capital Advisory for the advancement of the Pine Point project. The project is located near Hay River, Northwest Territories, which is in the south shore of the Great Slave Lake. The site is known historically for significant zinc and lead concentrates.
The indicated resource is 49.5 million tonnes grading 4.22% zinc and 1.49% lead (5.5% zinc equivalent). The inferred resource is 8.3 million tonnes grading 4.22% and 1.69% lead (5.64% zinc equivalent).
PPML has stated the project has the potential to become one of the world’s leading producers of zinc concentrate, a key critical mineral identified in Canada. The company stated the brownfield site has the following infrastructure advantages: power from the Taltson Hydroelectric dam and the on-site electrical substation, paved highway access, and 100 km of viable 25-metre-wide haulage roads.
In early 2023, PPML engaged with key technical and strategic advisors to work on the 2022 preliminary economic assessment update. The objective was to complete definition studies to compare key concepts, otherwise known as trade-off studies, typically performed during the pre-feasibility study stage.
Since November 2023, PPML and this assembled team have conducted and analyzed technical trade-off studies to better define the feasibility study final design concept. PPML’s board of directors – in the third quarter of 2024 – approved company’s final design concepts that were to be used in the feasibility study. The feasibility study will use the mineral resource estimate announced on June 25, 2024.
These more detailed design concepts will bridge the project from a PEA level into the feasibility study stage and support concurrent environmental assessment and permitting activities. A significant change is that the preconcentration methods proposed in the 2020 and 2022 PEA studies (i.e., XRF ore sorting, dense media separation) will not be incorporated in the concentrator design in favour of conventional milling. PPML stated this will lead to an overall better recovery of zinc and lead and will reduce operational risk with the simpler flow sheet.
The PPML team relies on the experience of qualified persons working for engineering firms –such as Synectiq, BBA, GMining, Newfields, Terrane Geoscience, and WSP – to develop the feasibility study and do advance permitting. WSP has local offices in the Northwest Territories and is familiar with permitting in the North.
This past summer, PPML had two weeks of site visits where the project was presented to government representatives, community leaders, as well as environmental regulators.
Cominco operated Pine Point as an open pit mining operation between 1965 and 1988. They produced over 10 million tonnes of lead and zinc concentrates from high-grade ores.
More information is posted on www.osiskometals.com
