Osisko Metals (OM.V) continues to advance its Pine Point zinc-lead project in the Northwestern Territories. After releasing positive news on the management of the water flows in and around the pits, the company is now releasing the assay results from the infill drill program.
At the end of last month, the company released assay results for a bunch of holes, including 6 meters of 8.84% ZnPb and 6 meters containing 20.78% ZnPb on the L65 deposit. This deposit is part of a cluster of 1.17 million tonnes containing 7.8% ZnPb in an inferred resource. The recent drill results were encountered in areas outside the underground stope areas modelled in the 2020 PEA. The C1 cluster remains open to the west where it may link up to the M67 deposit about 300 meters away. The M67 deposit currently contains almost 700,000 tonnes of 5.86% ZnPb in an open pit inferred resource estimate and it would be interesting if both deposits would actually link up.
This all bodes well for the updated PEA which will be released in the firs quarter of 2022. We expect to see the impact of the improved water management requirements and the positive drill results since the cutoff date of the previous PEA to have a positive impact on the economics at Pine Point. And of course, with the zinc price currently trading at $1.50 per pound, the economics at spot prices should look really good.
The company is currently raising C$5M in a flow-through financing priced at C$0.48 per flow-through share.
Disclosure: The author has a long position in Osisko Metals. Please read our disclaimer.
