Osisko Metals outlines Pine Point’s 2022 development plans – QNT Press Release

MONTREAL, Jan. 13, 2022 (GLOBE NEWSWIRE) — Osisko Metals Incorporated (the “company” or”Osisko Metal”) (TSX:if, OTC:OMZNF, Frankfurt: 0B51)) is pleased to provide an overview of its 2022 development goals for the Pine Point project located near the Hai River in Canada’s Northwest Territories. A winter drilling program is underway at the site and assay results for 2021 are pending.

  • Complete the 3D hydrogeological model: Following the release of the preliminary results of the 3D hydrogeological model (see press release dated October 27)th), Osisko Metals will complete and publish the results of the new hydrogeological model in the first quarter of 2022. Work to date has identified substantial cost savings from lower dehydration estimates.
  • Update the Preliminary Economic Assessment: The 2020 PEA update is underway and will include higher long-term zinc and lead prices, expected cost savings from lower dewatering estimates based on new 3D hydrogeological models, and updated key assumptions to support the mine life plan, targeting Increase the gross tonnage mined. The updated PEA release date is planned for the end of the first quarter of 2022.
  • Fill drill activity: Drilling will continue through 2022, with the primary goal of converting the Life of Mine Plan (“LOM”) resources to the indicated category by the second quarter of 2023, which will serve as the basis for reserves calculations in the Feasibility Study.
  • Development of the Developer Assessment Report (“DAR”): A key milestone in maintaining the project timeline is the permitting timeline. Osisko Metals is working with the government and the local community to advance and submit the DAR in early 2023.
  • Feasibility study initiated: Osisko Metals also expects to initiate feasibility study work upon completion of the updated PEA. With major de-risking activities to be completed in 2021, the company plans to rapidly advance to the feasibility study stage, targeting completion in the fourth quarter of 2023.

Chairman and CEO Robert Wares commented: “Spot zinc prices are very encouraging and remain well ahead of market expectations, exceeding $1.60/lb from 2022. We believe this is the result of market supply and demand fundamentals and we remain very Bullish on zinc. The 2021 U.S. Geological Survey’s inclusion of zinc on the critical minerals list, along with the approval of large-scale infrastructure projects in the U.S. and Europe, suggest that market demand dynamics are very favorable. This growing demand, coupled with shrinking supply, is associated with mine closures The projects will continue to boost the zinc market for years to come, making Pine Point a globally significant development.”

Commodity metal prices remain strong

While strong copper and gold prices in 2021 have captured the market’s attention, zinc and lead have been outperforming in the second half of 2021 and start 2022 near 10-year highs. Strong price…

The full story is available on Benzinga.com

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