Osisko says new assays extend Gaspé deposit’s depths

Canadian mine developer Osisko Metals (TSX: OM; US-OTC: OMZNF) said new drilling at its Gaspé copper project in Quebec extended the deposit’s vertical depths to almost 1,000 metres. The stock rose.

Hole 30-1155 cut 738 metres of 0.31% copper and 1.25 grams silver per tonne from 18 metres downhole, Osisko said Thursday in a statement. Hole 30-1151, meanwhile, cut about 192 metres averaging 0.27% copper and 1.92 grams silver from 3 metres depth.

Results released Thursday “demonstrate the scale and vertical continuity of the deposit, with some holes extending mineralization to depths of over 950 metres,” Scotia Capital mining analyst Eric Winmill said in a note. “Additionally, the program identified high-grade zones of molybdenum and silver, further reinforcing the byproduct contribution as the company advances toward its next resource update.”

Toronto-based Osisko is working to expand the Gaspé copper system’s resource with a view to potentially reopening the former Noranda mine in Murdochville, about 825 km northeast of Montreal. It’s targeting permits and construction by the early 2030s, with initial capital spending estimated at about $1.8 billion.

Osisko shares rose about 3% to 87¢ Thursday morning in Toronto, giving the company a market value of about $598 million (US$433 million). The stock has traded between 30¢ and 95.5¢ in the past year.

Final touches

Thursday’s release provided information on 29 mineralized intercepts from 10 new drill holes.

The new results are “the final touches” on an updated resource that the company should release in the coming weeks, National Bank Financial mining analyst Rami Nizabi said in a separate note. A preliminary economic assessment study will probably follow later in the first half of the year.

Other highlights included hole 30-1148, which cut 169 metres of 0.17% copper and 1.52 grams silver from about 73 metres depth. It also intersected about 614 metres of 0.22% copper, 1.48 grams silver and 0.027% molybdenum from 345 metres downhole.

Another hole, 30-1156, cut 761 metres of 0.26% copper and 1.83 grams silver from about 149 metres depth.

Copper at the Gaspé project occurs in two common geological settings: porphyry and skarn. It consists mainly of vein-hosted chalcopyrite with pyrite or pyrrhotite, and smaller amounts of bornite and molybdenite.

Eastern giant

Osisko bills Gaspé as the largest undeveloped copper-molybdenum deposit in eastern North America. 

A November 2024 resource estimated the project holds 824 million indicated tonnes grading 0.27% copper, 0.015% molybdenum and 1.74 grams silver for contained metal of 2.25 million tonnes of copper, 124,000 tonnes of molybdenum and about 46 million oz. of silver.

It also holds 670 million inferred tonnes grading 0.3% copper, 0.02% molybdenum and 1.37 grams silver for 1.99 million tonnes of contained copper, 133 tonnes of molybdenum and 29.5 million oz. of silver.

The resource update is “only a few weeks away and we expect it to be a significant growth and de-risking event” that will buoy investor confidence, Nizabi said.

Much of the deposit’s resource could be reclassified as measured and indicated, which “should be well received by investors and position Gaspé for more robust economic assumptions and valuation updates,” he wrote.