Osisko Metals Inc. [OM-TSXV, OMZNF-OTC] has released a mineral resource estimate for the Pine Point project in the Northwest Territories, which is expected to be a producer of ultra-clean zinc concentrate.
The company said the estimate will form the resource base for a feasibility study that is expected to start in the third quarter of 2024.
According to the latest estimate, the project contains 49.5 million tonnes of grade 4.22% zinc and 1.49% lead (5.52% zinc equivalent ZnEq) or 4.6 billion pounds of zinc and 1.6 billion pounds of lead.
On top of that is an inferred resource of 8.3 million tonnes, grading 4.18% zinc and 1.69% lead (5.64% ZnEq), containing approximately 0.7 billion pounds of zinc and 0.3 billion pounds of lead.
Compared to a previous estimate, the conversion of inferred resources increased the tonnage of the current indicated resource by 214% with an associated decrease in the quantity of inferred resources.
Osisko went on to say in a press release that the project’s East Mill, Central and North Zones now contain approximately 36.2 million tonnes of indicated resources, grading 5.22% ZnEq or 3.2 billion pounds of zinc and 1.1 billion pounds of lead in situ.
Osisko Metals shares were unchanged Tuesday at 22 cents and trade in a 52-week range of 28 cents and 14.5 cents.
The Pine Point project is located on the south shore of Great Slave Lake, N.W.T. It has significant supporting infrastructure, including access by paved roads, a railhead at Hay River, and an on-site hydroelectric substation. Additionally, the project benefits from 100 kilometres of pre-existing mine haul roads from the original mining operation. These provide access to most of the deposits in the 2024 mineral resource estimate.
Back in July, 2023, the company released the results of an updated preliminary economic assessment (PEA) for its Pine Point project.
According to the PEA, Pine Point could emerge as a top ten global zinc-lead producer with an annual average production of 329 million pounds of zinc, and 141 million pounds of lead over a 12-year min- life.
In a press release Tuesday, Osisko said a brownfield exploration campaign is underway. The focus is on discovering high-grade prismatic-style deposits. One drill was active in March and tested three high potential target areas. Results are pending. The company said additional targets are ready for drilling, and new targets are continually being developed. The plan is to test these targets this summer.
Osisko Metals, which is affiliated with Osisko Gold Royalties Ltd. (OR-TSX, OR-NYSE), is a Canadian exploration and development company with a focus on zinc.
Outside of the Pine Point joint venture, the company acquired in July, 2023, from Glencore Canada Corp., a 100% interest in the past-producing Gaspe Copper Mine, located near Murdochville in the Gaspe peninsula of Quebec. The company is focused on a resource evaluation of the indicated resource of 495 million tonnes of 0.37% copper equivalent (CuEq) and an inferred resource of 6.3 million tonnes of grade 0.37% CuEq.
