Osisko Metals shares rise on Gaspé copper resource boost

Osisko Metals' Gaspé copper project on the Gaspé peninsula in Quebec. Credit: Refined Substance

Osisko Metals (TSXV: OM) shares rose on Friday after the company posted an updated resource estimate for its Gaspé copper project, near Murdochville, Que., that increases contained copper-equivalent pounds by over 50%.

The updated estimate includes pit-constrained resources comprising 824 million tonnes grading 0.34% copper-equivalent in the indicated category and 670 million tonnes grading 0.38% copper-equivalent in the inferred category. 

This represents a 53% increase in copper-equivalent metal content over the previously reported indicated resource and a 100-fold increase in copper-equivalent metal content in inferred resources. Contained copper now totals 2.2 million tonnes, with 274 million lb. molybdenum and 46 million oz. silver.

Following the update, shares of Osisko Metals rose 8.7% by early afternoon in Toronto to 25¢ apiece. The miner has a market capitalization of $44.6 million and has traded in a 52-week range of 14¢-28¢.

In a release, the company noted the project is now the largest undeveloped copper-molybdenum deposit in Eastern North America, exclusive of inferred resources.

A minimum 70,000-metre drill program is now planned for 2025, with the objective of converting the bulk of the inferred resources to indicated.

As a result, the company said it would defer a preliminary economic assessment (PEA) originally slated for release in next year’s first quarter, to a later date when additional drilling is completed.

Osisko acquired a 100% interest in the former Gaspé Copper mine in July 2023 from Glencore (LSE: GLEN).

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