Osisko Metals Releases Pine Point In-Pit Inferred Resource: 38,400,000 Tonnes Grading 6.58% ZnEq

Company ” or “ Osisko Metals ”) (TSX-V: OM; FRANKFURT: OB51) is pleased to announce an updated Inferred Mineral Resource Estimate (“MRE”) for its 100% owned Pine Point project, located near Hay River, in the Northwest Territories of Canada. The MRE was prepared by BBA Inc. and incorporates an open...

MONTREAL, 06/12/2018 (informazione.it - comunicati stampa - industria)

Company ” or “ Osisko Metals ”) (TSX-V: OM; FRANKFURT: OB51) is pleased to announce an updated Inferred Mineral Resource Estimate (“MRE”) for its 100% owned Pine Point project, located near Hay River, in the Northwest Territories of Canada. The MRE was prepared by BBA Inc. and incorporates an open pit mining scenario with cut-off values based on estimated long-term metal prices, mining costs, metal recoveries, concentrate transport and smelter costs. A conference call webcast will be held by Osisko Metals management at 11:00 am Eastern time today (see conference call details below).

Highlights:

Jeff Hussey, President & CEO of Osisko Metals, commented: “This MRE is robust and confirms that Pine Point is one of the most significant undeveloped zinc-lead projects in the base metal sector with 5.5 billion pounds of combined in-pit zinc and lead resources. The shallow mineralization is unique among zinc projects globally and Pine Point still offers excellent exploration potential both at depth and along the project's 65km strike length.”

“There is a depleted pipeline of zinc resources globally and we believe Pine Point will place Osisko Metals at the forefront of junior base metal exploration and development companies.”

Table 1: Pit-constrained Inferred Mineral Resource Estimate as reported by BBA

Sensitivity to Cut-Off Grades

Variation of cut-off grades does not significantly change the Inferred Mineral Resource with its robust grade and tonnage even at the lower cut-off grades.

Table 2: Cut-Off Grade Sensitivity

The Inferred Mineral Resource Estimate is constrained with pit shells that were developed from a pit optimization analysis using the economic and operating parameters presented below:

Table 3: Pit Optimization Parameters

Metallurgy

Overall metallurgical recoveries of 83.1% for zinc and 87.8% for lead were estimated from recent preliminary bench scale flotation tests, including dry pre-concentration ore sorter test work (full program results to be disclosed in Q1 2019) aimed at reducing haulage and grinding costs.

Hydrogeology

The hydrogeological setting of the Pine Point area is very well established following a 24-year mining history that benefited from real time pumping data collected during Cominco's historical operational period. Osisko Metals understands that the success of the Pine Point project will rely on developing a mining sequence that is coordinated with a dewatering and water management strategy over the life of mine. The Company does not consider water infiltration to be a material matter. Analyses of historical infiltration rates resulted in an estimated maximum cost of C$0.88 per tonne mined, that was included in the pit optimization cost base for all zones except N204 which does not incorporate dewatering cost due to the shallow nature of mineralization.

Ongoing Drill Program

Additional in-fill drilling completed up to the date of this press release and not included in this Inferred MRE consists of 579 drill holes totalling 40,102 metres of drilling. The objective of this ongoing program is to upgrade the Inferred Mineral Resource to the Indicated category by decreasing drill spacing to 30 metres from the current average drill spacing of 40 to 60 metres. The Company expects to drill 900 additional holes totalling approximately 49,000 metres in the remainder of 2018 and in 2019 to meet this objective. The drill database will be further strengthened by incorporating the recent LIDAR topographic survey.

A separate brownfield exploration campaign will investigate high-potential target areas following the analysis of the planned airborne gravity survey that will complement site wide compilation of historical datasets and the recent LIDAR topographic survey.

Infrastructure

The project is located on the south shore of Great Slave Lake in the Northwest Territories, and is accessible directly year-round by an all-weather highway from Hay River, the economic “Hub of the North”, that is located 96 km west of the electrical substation and past concentrator location. Hay River has rail transportation and loadout options as well as other available services. On-site infrastructure consists of approximately 100km of intact haulage roads that link the mineralized zones, as well as the electrical substation located in the middle of the property.

Notes Regarding Mineral Resource Estimate

Conference Call Webcast Details

Those wishing to participate in the Q&A session are asked to dial the following toll-free North American number 1-866-688-0896 (International 1-409-217-8780). The MRE Presentation will be viewable by webcast at https://edge.media-server.com/m6/p/vroawi9c . The webcast replay will become available following the call.

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, namely the Pine Point Mining Camp (“PPMC”) located in the Northwest Territories, and the Bathurst Mining Camp (“BMC”), located in northern New Brunswick, where it is focused on drilling and developing the Key Anacon Project. The Company is currently completing 100,000 metres of drilling at both camps. In Québec, the Company owns 42,000 hectares that cover 12 grass-root zinc targets that will be selectively advanced through exploration.

About BBA

BBA has been providing a wide range of consulting engineering services for almost 40 years. Today, engineering, project, geology, environmental and commissioning experts team up to quickly and accurately pinpoint the needs of industrial and institutional clients. The firm's expertise is recognized in the fields of energy, mining and metals, biofuels and oil and gas and is supported by a team of seasoned experts who design reliable, sustainable and innovative solutions every day. Our services for the mining industry include front-end consulting, NI 43-101 technical reports, environmental studies, geology resource modelling, mine planning, metallurgical process development, tailings facility engineering and multidisciplinary infrastructure and process plant design.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. 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. Forward-looking information in this news release includes, but is not limited to, the use of proceeds of the Offering; the timing and ability of the Corporation, if at all, to obtain final approval of the Offering from the TSX Venture Exchange; an exemption being available under MI 61-101 and Policy 5.9 of the TSX Venture Exchange from the minority shareholder approval and valuation requirements for each related party transaction; objectives, goals or future plans; statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; fluctuations in commodity prices; delays in the development of projects; the other risks involved in the mineral exploration and development industry; and those risks set out in the Corporation's public documents filed on SEDAR at www.sedar.com . Although the Corporation believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/2deee868-f311-4a6e-8a5a-3c09ae833e00