Drilling at Osisko Metals’ (TSX: OM) flagship Gaspé project in eastern Quebec returned results as high as 25.6 metres grading 2.19% copper, the company said.
That result, in hole 30-1070 from 415.5 metres downhole, also included 16.9 grams per tonne silver, Osisko said Thursday in a statement. Crews intersected 160.5 metres of 0.16% copper and 1.92 grams silver at the same hole from 45 metres depth.
“Mineralization appears to extend at depth and results enhance the understanding of the Gaspé copper deposit,” Scotia Capital mining analyst Eric Winmill said in a note. He rates the company’s stock “sector outperform.”
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.
Other highlights from the current drilling program included hole 30-1075, which returned 258 metres of 0.33% copper and 2.95 grams silver from 15 metres depth, and hole 30-1076, which hit 208.4 metres of 0.4% copper and 2.61 grams silver from 12 metres downhole.
Resource update
Osisko is targeting a mineral resource estimate update for Gaspé by the first quarter of 2026. An advanced preliminary economic assessment should follow in next year’s third quarter, and a definitive feasibility study by the end of 2027, according to Haywood Securities mining analyst Pierre Vaillancourt.
In the meantime, Osisko plans to continue testing for deeper extensions of the mineralized system and to explore laterally towards the Needle East and Needle Mountain targets to the south and southwest. The current drilling program covers 115 km.
Osisko Metals fell 1.1% to 43.5¢ in early afternoon trading in Toronto Friday amid a drop in the benchmark S&P/TSX Composite Index, giving the company a market capitalization of about $265 million. The stock has traded between 16¢ and 55¢ in the past year.
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