Osisko Metals (TSXV: OM; US-OTC: OMZNF) has tabled a resource update for its wholly owned Pine Point lead-zinc project on the south shore of Great Slave Lake in the Northwest Territories.
Inferred resources for the project stand at 52.4 million tonnes grading 4.64% zinc and 1.83% lead, or a zinc-equivalvent grade of 6.47%, for 5.3 billion lb. contained zinc and 2.1 billion lb. lead.
The new estimate represents a 36% increase in tonnage and a 0.11% drop in the zinc-equivalent grade from the project’s maiden resource released in December 2018.
The tonnage increase is attributed to the 2018-2019 drilling program, historical resources on newly acquired claims, and the inclusion of newly modelled underground resources.
Underground resources of 4.5 million tonnes grading 5.76% zinc and 2.43% lead were incorporated into the resource update.
The resource estimate is based on five geographic zones, with each zone being an individual deposit.
Although the drill density in certain areas of the project would have permitted resource classification in the indicated category, the company said it decided to classify the resource as inferred until the entire historical database can be validated, including an ongoing resampling of the historical drill core from Cominco, which commenced large-scale mine production in 1964.
“Global zinc and lead projects with all supportive infrastructure and more than 50 million tonnes in near-surface resources are extremely rare, and we are delighted that Pine Point now enters this select group,” Jeff Hussey, the company’s president and CEO, states in a news release. “We now believe that the project could develop into a mine large enough to enter the top 10 global zinc mines on an annual zinc-in-concentrate basis.”
Osisko Metals acquired the Pine Point project in February 2018. The area was first discovered by prospectors heading to the Klondike gold rush in 1898.
The company plans to update the resource when it completes a preliminary economic assessment in the second quarter of next year.
At press time, Osisko’s shares were trading at 48¢ with a 52-week range of 46¢ to 72¢. The company has 150 million shares outstanding for a $72-million market capitalization.