Osisko Metals Releases Updated Resource Estimates for Copper Mountain Deposit

Osisko Metals, listed on the TSXV as OM, has revealed a resource update for its Copper Mountain deposit located in Quebec. This update marks a significant increase of 30% in the copper-equivalent metal content compared to the previous estimate, positioning it as the largest undeveloped copper asset in eastern North America, according to the company.

The recent update delineates the deposit at 495 million indicated tonnes, boasting grades of 0.30% copper, 0.016% molybdenum, and 1.75 grams silver per tonne (0.37% copper equivalent), as disclosed in a news release issued by Osisko on Monday. Within this resource lies an estimated 3.2 billion pounds of copper, 180 million pounds of molybdenum, and 27.9 million ounces of silver. Additionally, there exists an inferred resource of 6.3 million tonnes at grades of 0.30% copper, 0.19% molybdenum, and 1.44 grams silver (0.37% copper equivalent).

Robert Wares, CEO and chair of Osisko Metals, expressed satisfaction with the outcomes of the updated mineral resource estimate for the Copper Mountain deposit, stating, “With the inclusion of the recently disclosed favorable metallurgical testing outcomes, the Gaspé copper project demonstrates significant potential to emerge as a major Canadian producer of copper-molybdenum, situated within one of the world's most secure mining jurisdictions.”

Metallurgical studies conducted on the deposit exhibited an average recovery rate of 91.9% from 19 bulk copper-molybdenum flotation tests and 94.2% from three locked-cycle copper-molybdenum separation tests.

Wares added, "This mineral resource estimate (MRE) will serve as the foundation for a preliminary economic assessment, set to be unveiled in the early first quarter of 2025, coinciding with what we anticipate as the beginning of a robust long-term copper market.” He also emphasized the potential of the asset to contribute to Quebec’s critical mineral development strategy, supporting global decarbonization initiatives.

Situated near Murdochville, Quebec, Copper Mountain forms a part of Osisko’s Gaspé copper project. The company acquired full ownership of the past-producing Gaspé mine in 2022, with the initial discovery of copper dating back to 1921 and production commencing in 1955. Operations ceased in 2002. Osisko intends to reopen the mine, starting with the extraction of remnant mineralization from the existing pit. Furthermore, the company holds the belief that there is unexploited potential in high-grade underground mineralization that went unnoticed by the Noranda subsidiary, Gaspé Copper.

Following the announcement, Osisko Metals observed a surge in its stock value, rising by 11.1% to C$0.20 on Monday, reflecting a market capitalization of C$51.3 million. Its shares have traded within a range of C$0.14 and C$0.28 over the past 52 weeks.