How to Build the Leading Base Metal Mining Company in Canada
Osisko Metals (TSXV:OM) controls two of Canada's premier zinc mining camps, says executive VP Paul Dumas who spoke with Kitco Mining at the Metal Investors Forum in Toronto earlier this month.
With the ramp up of global infrastructure projects underway while the world's supply of zinc shrinks, Osisko Metals will be in an enviable position to meet future demand.
"Zinc is an under-valued commodity right now," says Dumas noting zinc mine depletions and closures.
"The underlying value of our assets should eventually be reflected in the price of our equity."
Osisko Metals' flagship Pine Point Mining Camp is located in the Northwest Territories and has an inferred mineral resource of 38.4 Mt grading 4.58% zinc and 1.85% lead. The property has tremendous upside potential as it has never been explored using modern-day technologies and has never seen any drilling deeper than approximately 100 metres. It is a brownfield site, once a large-scale mine operated by Cominco. The mine closed in 1987.
The project is located on the south shore of Great Slave Lake in the Northwest Territories, and is accessible directly and year-round by an all-weather highway from Hay River, the economic "Hub of the North".
The project is comprised of mineral claims and mineral leases covering an area of 22,213 hectares containing key stratigraphy that hosts zinc and lead mineralization. The center of the property is located 96 km east of Hay River that has rail transportation and loadout options as well as other available services. On-site infrastructure consists of approximately 100km of intact 25-metre wide haulage roads that link the mineralized zones and an active electrical substation located in the middle of the property that previously serviced mine and mill operations.
The second property is the Key Anacon project, located 20 km south of the town of Bathurst, New Brunswick. A maiden resource estimate released last month to convert historical resources to compliant NI43-101 found 249.1 mil (million) lbs zinc, 102.6 mil lbs lead, 9.3 mil lbs copper, and 4.3 mil oz of silver and Inferred: 453 mil lbs zinc, 126.4 mil lbs lead, 27.0 mil lbs copper, and 5.9 mil oz of silver. The camp has good infrastructure and is located beside major forestry roads. Like Pine Point, Key Anacon has not seen any use of modern-day exploration techniques and only very sporadic drilling , due to the fact that the project was privately owned for the last 60 years or so, prior to Osisko Metals acquiring it. In 2018, the Company began a drill program and was successful at extending the project's Main and Titan Zones at depth and along strike,and both remain open. Work will continue into 2019.
With Pine Point and Key Anacon, Osisko Metals is being propelled to become to the leading base metals mining company in Canada.