Osisko Metals

Financials:

Primary ticker: TSXV:OM
Stage of development: Exploration, Development
Primary minerals: Zinc, Lead
Project to promote: Pine Point
Project location: Canada, NWT
Website: www.osiskometals.com

Osisko Metals Incorporated is a Canadian exploration and development company creating value in the base metal space. The Company controls one of Canada’s premier past-producing zinc mining camps, the Pine Point Project, located in the Northwest Territories for which the 2020 PEA has indicated an after-tax NPV of $500M and an IRR of 29.6%. The Pine Point Project PEA is based on current Mineral Resource Estimates that are amenable to open pit and shallow underground mining and consist of 12.9Mt grading 6.29% ZnEq of Indicated Mineral Resources and 37.6Mt grading 6.80% ZnEq of Inferred Mineral Resources. The Pine Point Project is located on the south shore of Great Slave Lake in the Northwest Territories, near infrastructure, paved highway access, and has an electrical substation as well as 100 kilometres of viable haulage roads already in place.
 

CASH: CAD$7M (3 Jan 2022)
DEBT: Nil

 

Major shareholders:
Osisko Group – 20.3%
CDPQ – 3.4%
Management & Insiders – 19.2%

Management Profile

Robert Wares – Chairman of the Board and CEO
Mr. Wares is a professional geologist with over 35 years of experience in mineral exploration and development. He was responsible for the discovery of the Canadian Malartic bulk tonnage gold mine, which was subsequently developed by Osisko Mining Inc. into one of Canada’s largest gold producers. Among other awards, Mr. Wares was a co-winner of the Prospectors and Developers Association of Canada’s “Prospector of the Year Award” for 2007, and was named, together with John Burzynski and Sean Roosen as “Mining Men of the Year” for 2009 by the Northern Miner. Mr. Wares sits on the Board of Directors of Brunswick Exploration Inc. Mr. Wares has a Bachelor of Science and an Honorary Doctorate in Earth Sciences from McGill University.
 

Killian Charles – Vice President, Corporate Development

Mr. Charles was previously Manager of Corporate Development at Integra Gold Corp, an advanced stage gold development company, up until its acquisition by Eldorado Gold in July of 2017.

Prior to that, he worked as a mining analyst at Industrial Alliance Securities and Laurentian Bank Securities, covering small and mid-cap exploration and production companies. Mr. Charles holds a Bachelor of Science, with a Major in Earth and Planetary Sciences from McGill University.

What is your rationale for taking part 121 Mining Investment?

Meeting new investors and existing shareholders

What recent news would you like to highlight to investors attending?

April 28, 2022 – Osisko Metals announced an initial Inferred Mineral Resource Estimate of 456Mt at 0.31% copper, at Mount Copper as part of the Gaspé Copper Project, located near Murdochville in the Gaspé Peninsula of Quebec. This resource is pit-constrained to mineralization surrounding the past-producing Mount Copper open pit mine and uses a base case of US$3.80/lb copper and a lower cut-off grade of 0.16% sulfide copper. It was estimated using data from historical drilling completed between the 1960’s and 2019.

 

28 March 2022 – Osisko Metals has signed a binding term sheet with Glencore Canada to acquire a 100% interest in the past-producing Gaspé Copper Mine, located near Murdochville, Québec, for an up-front payment of US$25 million, to be paid by Osisko Metals by way of a convertible note issued to Glencore upon the successful closing of the transaction, and a cash payment of US$20 million, payable upon start of commercial production. The Company must also incur drilling costs of C$5 million before June 30, 2022, to test oxidation levels within the mineralization that surrounds the historical Mount Copper open pit deposit.

 

25 January 2022 – Osisko Metals announces further results from the ongoing in-fill drill program at its Pine Point Project and intersects 4.80m grading 19.60% Zinc + Lead. 

What are your key goals for the next 3, 6 and 12 months?

3 Months:
Advance exploration drilling across key targets

6 Months:
Advance development and permitting timeline

12 Months: 
Update MRE and PEA

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Main challenge includes advancing permitting timeline. We strongly believe in the zinc market and we envision Pine Point as a clean producer of ultra high quality zinc and lead concentrates. As such, accelerating the permitting timeline from 3 years to shorter is a key challenge for us. With mining being a core focus of the NWT and Pine Point being a past producer, we are well positioned to shorten the process as much as possible.

What do you think makes your company such a compelling investment?

Unique large scale, open pit, high grade zinc-lead project with all supportive infrastructure in place (road, rail and power)