Osisko says new Gaspé drill results expand deposit

Osisko Metals (TSX-V: OM; US-OTC: OMZNF) said recent drilling at its Gaspé copper project in eastern Quebec expands the deposit at depth as the company works to update the resource by early next year. The stock rose.

Hole 30-1096 cut 731 metres averaging 0.29% copper and 1.6% silver from about 332 metres depth, Osisko said Wednesday in a statement. Another hole, 30-1098, intersected 115 metres grading 0.29% copper and 2.18 grams silver per tonne from 330 metres downhole.

“The program continues to show mineralization stepping outside of the 2024 mineral resource estimate pit shell and adds confidence for an expanded [resource] in the first quarter of 2026 to set the foundation for a preliminary economic assessment in the second half of 2026,” National Bank Financial mining analyst Rabi Nizami said in a note. He gives the stock an “outperform” rating.

The results – from seven new drill holes – are part of a fully funded 110,000-metre drill program that Osisko is carrying out at Gaspé, the largest undeveloped copper resource in eastern North America. The company is working to expand the resource with a view to potentially reopening the former Noranda open-pit 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 gained 2.3% to 45¢ in Toronto Stock Exchange trading Wednesday morning, giving the company a market capitalization of about $274 million. The stock has ranged between 18¢ and 55¢ in the past year.

Other results released Wednesday include hole 30-0872, which cut 92 metres at 0.24% copper and 3.05 grams silver from about 168 metres downhole. It also intersected 47 metres at 1.14% copper and 11.84 grams silver from 342 metres depth.

Hole 30-1095, meanwhile, cut 28 metres at 0.22% copper and 1.75 grams silver from 15 metres depth and about 310 metres grading 0.26% copper and 2.11 grams silver from 57 metres downhole.

“Drill results at Gaspé Copper continue to exceed expectations,” Osisko CEO Robert Wares said. “Additional holes are planned in this resource expansion target area in the coming months over a surface of 450 metres by 550 metres, which we believe will add significant new tonnage to the mineral resource estimate update, planned for the first quarter of 2026.”

Gaspé hosts 824 million indicated tonnes grading 0.27% copper, 0.015% molybdenum and 1.74 grams silver for contained metal of 2.23 million tonnes of copper, 124,000 tonnes of molybdenum and 46 million oz. of silver, according to an estimate released in November.

The inferred resource is estimated at 670 million tonnes grading 0.3% copper, 0.02% molybdenum and 1.37 grams silver for contained metal of 1.99 million tonnes of copper, 133,000 tonnes of molybdenum and 29.5 million oz. of silver.