Osisko Metals’ (TSXV: OM; US-OTC: OMZNF) latest resource estimate for its Pine Point zinc project increases indicated tonnage by 214% over a 2022 estimate, and shrinks inferred resources by about the same amount. The resource will be used for the feasibility study planned to begin in the third quarter this year.
Pine Point, located near Hay River, N.W.T., holds 49.5 million indicated tonnes grading 4.22% zinc and 1.49% lead (5.52% zinc equivalent) in combined open pit and underground resources. Inferred resources total 8.3 million tonnes grading 4.22% zinc and 1.69% lead (5.64% zinc equivalent).
The underground resource includes 4.3 million indicated tonnes grading 11.08% zinc equivalent and 3 million inferred tonnes at 5.64% zinc equivalent.
A 2022 preliminary economic study forecast it would cost $653 million to build a 12-year open pit and underground operation at Pine Point. The mine would produce an annual average of 329 million lb. zinc and 141 million lb. lead, according to the study. Its net present value was pegged at $602 million (using an 8%) discount, and its internal rate of return at 25%.
Pine Point includes historic open pits that were operated by Cominco from 1965 to 1988. They produced 10.8 million tonnes of lead and zinc concentrates.
Osisko Metals stock closed the day down 6.8% at 20¢ per share, giving it a market cap of $52.6 million.
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