MONTREAL, June 28, 2018 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the “Company” or “Osisko Metals”) (TSX-V:OM) (FRANKFURT:OB5) is pleased to announce results from the Titan Zone (formerly the East Zone) at its Key Anacon project located 20 km south of Bathurst, New Brunswick. Drill hole KA-18-01 intersected 6.07% Zn, 2.19% Pb, 0.92% Cu, 48.8 g/t Ag, and 0.04 g/t Au over 22.2 metres. In addition to the predominantly Zinc - Lead (“Zn-Pb”) rich intersections, a significant Copper (Cu), Cobalt (Co), Gold (Au) zone was also encountered adjacent to the Zn-Pb interval and returned 2.17% Cu, 0.064% Co and 2.97 g/t Au over 7.45m within the broader massive sulphide zone. These are the first gold and cobalt assays conducted on the project, as these elements were not ever analysed for in past exploration programs at the Key Anacon property. A sample from this zone has been sent for mineralogical examination to determine the potential recoverability of these elements.
This drill hole crosscut several massive sulphide zones within the Titan Zone that is located 1.5 km northeast of Key Anacon’s Main Zone. The sulphides are interpreted to be located in the nose of a steeply plunging anticlinal fold that hosts mineralization to over a kilometer in depth (See Key Anacon Titan Zone Long Section B1). The Company will continue testing the extents of these deposits within the current 12,000 metre drill program.
KA-18-01 intersected the reported sulphide zones approximately 50m up-plunge from mineralized intercepts in a historical drillhole drilled by Rio Algom in 1993, that intersected 19.9 metres grading 7.86% Zn, 3.58 % Pb, 0.33% Cu and 78 g/t Ag within a mineralized interval of 3.38% Zn, 1.35% Pb, 0.75% Cu and 40.94 g/t Ag over 82.27 metres. The deepest hole encountered a 75m thick interval of massive sulphides containing 5.1% Zn+Pb over 9.3m, 9.25% Zn+Pb over 13.0m and 5.55% Zn+Pb over 24.3m at over a kilometer depth.
Exploration potential at the Key Anacon property is considered to be excellent on the basis of the presence of the Brunswick Horizon stratigraphy and the expansive zones of mineralization and alteration. Both the Titan Zone and Main Zone are open at depth and along strike. Exploration and development programs in the 1950’s and 1960’s were terminated due to the pullback of the zinc commodity price at that time. Since then, only two minor exploration programs were conducted by major mining companies.
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Jeff Hussey, President and CEO of Osisko Metals, commented: “The Titan Zone also hosts significant Cu stringer mineralization to the north of the current Zn-Pb mineralization with drill intercept values up to 2.71% Cu over 6.0m and 3.6% Cu over 6.1m over a 1km strike length. Historically, gold (Au) was never assayed for in previous drilling on the Titan Zone. We are very optimistic about the potential exploration upside of the Key Anacon project.”
Table 1: Drill hole information and location in New Brunswick Double Stereographic Projection (NBS)
About Key Anacon
The Key Anacon project is located approximately 20 km south of the town of Bathurst, New Brunswick and 16 km southeast of the former Brunswick No.12 mine. It is accessible by paved roads. The property contains two known Bathurst-type volcanogenic massive sulphides deposits containing zinc, lead, copper and silver. The Key Anacon Main Zone and Titan Zone deposits are situated at the same stratigraphic horizon that hosts the Brunswick No. 12 & No. 6 deposits. The property covers approximately 12 kilometres of favourable Nepisiguit Falls stratigraphy that also extends onto the surrounding claims held 100% by Osisko Metals.
No resources/reserves estimates have been calculated under NI 43-101 guidelines. Except for exploration programs conducted in 1992-1993 and 2000, almost all of the drilling took place in the 1950’s and 60’s, prior to currently required standards for quality assurance and quality control. The earlier drilling lead to the establishment of a 460 metre shaft, a vent raise, eight levels and three sub-levels at the Main Zone. The Government of New Brunswick, Department of Energy and Resource Development, Energy and Mines Division reports the deposit as having a historical resource (Non-NI 43-101 compliant) of 1.87 million tonnes grading 6.93% Zn, 2.63% Pb, 0.16% Cu, and 84 g/t Ag in multiple folded lenses. The deposit is open at depth and along strike.
Note regarding historical resource and Qualified Person
The above-mentioned historical resources do not conform to National Instrument 43-101 standards. The Company is reporting the historical estimates for reference purposes only. Neither Osisko Metals nor its consultants have completed sufficient work to verify the historical estimates and these should not be relied upon for investment purposes. A Qualified Person has not done sufficient work to classify the historical estimates as NI43-101 compliant mineral resources and there is no guarantee that such work will allow conversion of such historical resources.
Mr. Gary Woods is the Qualified Person responsible for the technical data reported in this news release. He is a Professional Geologist registered in New Brunswick and is the Senior Exploration Manager of Osisko Metals Incorporated.
Quality Assurance / Quality Control
Osisko Metals adheres to a strict Quality Assurance and Quality Control program with regard to core handling, sampling, transportation of samples and lab analyses. Drill core from Osisko Metals Bathurst Camp projects is securely transported to its core facility in Bathurst, NB where it is logged and sampled. Samples selected for assay were shipped via secure transportation to the Actlabs preparation facility in Fredericton, NB. Pulps were analyzed at Actlabs facility in Ancaster Ontario. Zinc, lead and copper were analyzed by assay grade peroxide fusion (total digestion) with ICP-AES finish. Silver was analyzed by gravimetric fire assay and gold by fire assay-atomic absorption.
About Osisko Metals
Osisko Metals is a Canadian exploration and development company creating value in the base metal space with a focus on zinc mineral assets. The Company controls Canada’s two premier zinc mining camps in Canada, namely the Pine Point Camp (“PPMC”) located in the Northwest Territories (22,000 ha) and the Bathurst Mining Camp (“BMC”), located in northern New Brunswick (63,000 ha). The Company is currently drilling in both mining camps for a combined 100,000 metre program. The focus of these programs is to upgrade historical resources to comply with NI43-101 regulations and also on exploration around historical deposits. Brownfield exploration includes new innovative 3D compilation techniques, updated geological interpretation, and modern geophysics. In Québec, the Company owns 42,000 hectares that cover 12 grass-root zinc targets that will be selectively advanced through exploration. In parallel, Osisko Metals is monitoring several base metal-oriented peers for opportunities.
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President & CEO
Osisko Metals Incorporated
Director, Investor Relations
Osisko Metals Incorporated
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This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the use of proceeds of the Offering; the timing and ability of the Corporation, if at all, to obtain final approval of the Offering from the TSX Venture Exchange; an exemption being available under MI 61-101 and Policy 5.9 of the TSX Venture Exchange from the minority shareholder approval and valuation requirements for each related party transaction; objectives, goals or future plans; statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; fluctuations in commodity prices; delays in the development of projects; the other risks involved in the mineral exploration and development industry; and those risks set out in the Corporation's public documents filed on SEDAR at www.sedar.com. Although the Corporation believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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