Osisko Metals to drill 30,000 metres at Gaspé, post initial resource by month’s end

Having recently optioned the former Gaspé copper mine from Glencore Canada, Osisko Metals (TSXV: OM; OTC: OMZNF) is ready to begin drilling on the property this week, focusing on the re-evaluation of copper mineralization near the past-producing Mount Copper open pit.

The drill campaign will be divided into two phases: Phase 1 (10,000 metres) is primarily designed to evaluate extent of near-surface oxide mineralization. Phase 2 (20,000 metres) is for infill drilling to update the currently modelled in-pit resource.

“Our initial drilling will be focused on completing our due diligence requirements, including further testing of the surface oxide zone. Should Osisko Metals acquire this asset from Glencore Canada, the objective this year will be to complete the 30,000-metre drill program and launch a preliminary economic assessment of the project,” Robert Wares, chairman and CEO of Osisko, commented.

The company anticipates issuing an initial NI 43-101-compliant in-pit mineral resource estimate (inferred) for the Mount Copper deposit before the end of April. This resource will be based on historical drilling results from Noranda (until 1998), and more recently from Xstrata and Glencore Canada (2011 to 2019).

Additional drilling is also anticipated later this year in order to upgrade the resource to the measured and indicated categories, so that the project can be moved towards feasibility stage, Wares added.

The historic Gaspé mine, located near Murdochville, Que., was initially discovered in 1921. Production began in 1955 and lasted until 1999. During that time, a total of 150 million tonnes of ore averaging 0.87% copper with minor gold and silver credits was extracted. In total, the project produced 2.8 million tonnes of copper anode.

Osisko has agreed to pay Glencore US$25 million upfront (via a convertible note) and US$20 million on the start of commercial production at the project. It also agreed to spend $5 million on drilling by the end of June 2022.