OSISKO METALS PROVIDES OUTLOOK FOR 2018

Transcription

1 OSISKO METALS PROVIDES OUTLOOK FOR 2018 (Mntreal February 12, 2018) Osisk Metals Incrprated (the Cmpany r Osisk Metals ) (TSX- V: OM; FRANKFURT: OB5) is pleased t present a summary f its 2017 crprate milestnes and its utlk fr Jeff Hussey, President and CEO, remarked: 2017 was a very successful year fr Osisk Metals and we lk frward t 2018 n many different frnts. Cnslidating ne f Canada s largest histrical zinc mining camps in Bathurst, New Brunswick, was a majr mve fr the Cmpany, as well was attracting a management team that is bth knwledgeable and experienced in explratin and develpment f base metals assets. We als successfully raised sufficient capital t finance ur prgrams and lastly, we initiated the acquisitin f Pine Pint, Canada s nce mst prfitable zinc mining camp in the suthern Nrthwest Territries. I wuld like t thank all f ur stakehlders fr their supprt during this exciting first year as Osisk Metals and lk frward t a new year f milestnes as we remain cmmitted t creating sharehlder value Highlights The Cmpany cnslidated ver 63,000 hectares within the Bathurst Mining Camp (BMC) in New Brunswick histrically Canada s largest and lngest perating zinc camps making Osisk Metals the largest landwner f this highly prspective regin. Amng these claims, the Cmpany acquired the majrity f the Brunswick Belt, which cvers significant prtins f the strike length that hsted bth the frmer Brunswick N.12 and N.6 mines, and ffers sme f the mst prlific gelgy in the Bathurst Camp. The Cmpany als successfully signed a number f key agreements t purchase grups f claims hsting significant histrical depsits, namely Key Anacn, Munt Frnsac, Flat Landing Brk, Gilmur Suth, Camel Back and Luvicurt. In September f 2017, Osisk Metals began an aggressive Phase 1 diamnd drill prgram fcused n resurce definitin and expansin f a number f these histrical depsits. The latest acquisitin in the BMC, Key Anacn and Key Anacn East, are exciting targets fr Osisk Metals. The prperty is hst t a high grade histrical depsit a ttal f 1.87 millin tnnes grading 6.93% Zn, 2.63% Pb, 0.16% Cu, and 84g/t Ag and has seen limited explratin wrk since its initial discvery in the 1950s. A 1993 press release by Ri Algm reprted a 19.9m interval in DDH grading 7.86% Zn, 3.58 % Pb, 0.33% Cu and 78 g/t Ag within mineralized interval grading 3.38% Zn, 1.35% Pb, 0.75% Cu an (d g/t Ag ver 82.3 metres at the East Zne. Drilling in the East Zne was never incrprated int the histrical resurce estimate and represents an excellent explratin target fr Osisk Metals..

2 Osisk Metals had a very successful year raising capital and negtiating a strategic ryalty deal with Osisk Gld Ryalties, adding a ttal f C$41.75 Millin t its treasury. The Cmpany als reinfrced its Bard f Directrs by adding Jhn Burzynski, President, CEO and Directr f Osisk Mining Inc., and ne f the riginal funders f the Osisk grup f cmpanies, as well as Amy Satv, CEO and C-Funder f Litrn Distributrs Ltd. Additinally, n the management side, the Cmpany appinted Mr. Rbin Adair, P. Ge, as Vice President Explratin and Mr. Gary Wds, P.Ge, as Senir Explratin Manager, Bathurst Prject. With the additin f these tw senir gelgists, Osisk Metals management team nw has ver 100 years f wrk experience in base metals explratin, mre particularly in the BMC regin. At the end f 2017, the Cmpany annunced the friendly acquisitin f Pine Pint Mining (TSX-V: ZINC), and cnsequently the Pine Pint Prject, lcated in the Nrthwest Territries, Canada. The transactin implies a ttal equity value f C$34 Millin and immediately adds a secnd crnerstne asset t the Osisk Metals prtfli. Cmbined with the Bathurst Mining Camp, Osisk Metals will cntrl tw wrld class past-prducing base metal camps. Pst-transactin, the Cmpany will cntinue t have a strng balance sheet, with apprximately C$38 millin f cash that is available t aggressively advance bth f its flagship assets. The principal characteristic f the Pine Pint Prject is that it is ready fr develpment and immediately ffers Osisk Metals significant re-rating ptential as the Cmpany wrks t cnvert the near-surface, histrical, unclassified resurces f 70.8 millin tnnes f 4.2% zinc and 1.6% lead, int NI Mineral Resurce Estimates. A psitive Preliminary Ecnmic Assessment study was filed in May 2017, which fcused n a restricted subset f pen-pit depsits, ttaling 25.8 millin tnnes f Indicated Resurces grading 2.9% zinc and 1.1% lead and 3.7 millin tnnes f Inferred Resurces grading 2.9% zinc and 0.8% lead, within a larger histrical resurce prtfli, which has nt been prepared in accrdance with Natinal Instrument Standards f Disclsure fr Mineral Prjects ("NI "). With multiple advanced explratin targets, Osisk Metals believes the Pine Pint Prject is ne f the mst prmising undevelped zinc assets in Canada Outlk: Explratin: BMC: Osisk Metals has budgeted C$10M in explratin wrk acrss the BMC. Explratin effrts incrprate a three-prnged apprach t maximize success including 45,000 metres f drilling at histrical depsits and 5,000 metres f drilling at untested earlier stage targets fr a ttal f 50,000 meters f drilling cmbined with detailed airbrne gravity surveys. Key Anacn The Cmpany expects a large prtin f its effrt will be centered n the Key Anacn prperty. In ttal, Osisk Metals will drill a minimum f 12,000 metres in additin t drilling the area surrunding the histrical resurce, explratin drilling will be cnducted thrughut the East Zne. 2

3 An airbrne gravity survey will als be cmpleted in rder t identify ther areas f ptential n the prperty, including areas lcated under a thin veneer f yunger flat lying rcks that verlie Bathurst Camp favrable stratigraphy. Munt Frnsac Nrth The Cmpany cnfirmed and expanded the knwn high-grade zne within a brad envelpe f disseminated sulphides and just recently encuntered drill hles with significant cpper intercepts t expand a Cu intercept in a histric drill hle. Cpper rich sulphides typically ccur in the high temperature central prtin f vlcangenic massive sulphide systems and at the time f the histric drilling, the land beynd the cpper bearing drill hle was cntrlled by ther wners. This is n lnger the case and drilling in this area is currently under way. Initial results f reprcessing / re-interpretatin f gephysical surveys in the Mt Frnsac Chief s Plateau area is already prducing interesting new targets fr fllw up. Gilmur Suth Drilling will fcus n cnnecting areas f knwn mineralizatin int a cntinuus package as well as testing the strike extensins. The histrical depsits remain pen alng dip and strike. New Grassrt Targets Osisk Metals will begin testing a number f untested cincident airbrne gravity and EM targets situated acrss the camp thrughut the summer f Airbrne gravity surveys are a relatively new technlgy and these targets were selected based n their similar respnses t knwn depsits in the BMC. Pine Pint: The Pine Pint transactin is expected t clse by the end f February. Osisk Metals is prviding assistance t Pine Pint Mining s technical team t ensure a smth and rapid transitin. The Cmpany plans t aggressively drill the histrical resurces in this camp in 2018, while pushing ahead with baseline envirnmental studies. A drill prgram and budget fr Pine Pint will be disclsed by the end f Q Quebec: Osisk Metals will fcus its grassrt explratin effrts n its tp pririty targets, including the Schefferville prperty. The Cmpany has budgeted C$1.2M in ttal expenditures and will cntinue t selectively advance its prtfli based n explratin success. Wrk is expected t begin in Summer Crprate Develpment: At the clse f the Pine Pint transactin, the Cmpany will hld dminant psitins in tw f Canada s premier zinc mining camps, ffering sharehlders expsure t an advanced explratin as well as a develpment phase zinc prject, bth with access t established infrastructure and in mining friendly jurisdictins. Nevertheless, the Cmpany retains as ne f its gals t becme a diversified base metals develpment cmpany, and in ding s, cntinues t mnitr base metals-riented peers fr prjects and grwth pprtunities, primarily in Nrth America. 3

4 Qualified Persn Mr. Rbin Adair is the Qualified Persn respnsible fr the technical data reprted in this news release. He is a Prfessinal Gelgist registered in New Brunswick and is Vice President Explratin f Osisk Metals Incrprated. Abut Osisk Metals Osisk Metals is a Canadian explratin and develpment cmpany creating value in the base metal space with an emphasis n zinc mineral assets. T date, the Cmpany has cnslidated ver 63,000 hectares in the histrical wrld-class Bathurst Mining Camp ( BMC ), lcated in nrthern New Brunswick, in which it is fcused n upgrading and expanding 6 histrical depsits. The Cmpany is als aiming t cmplete the acquisitin f Pine Pint Mining (previusly annunced) during the first quarter f 2018, which will give it a 100% interest in the histrical Pine Pint mining camp lcated in the Nrthwest Territries f Canada. The Cmpany s strategy in bth mining camps is t develp a multi-depsit asset base that culd feed a central cncentratr. In Québec, the Cmpany wns 42,000 hectares that cver 12 grass-rt zinc targets that will be selectively advanced thrugh explratin. In parallel, Osisk Metals is mnitring several base metal riented peers fr prjects and acquisitin pprtunities. Osisk Gld Ryalties Ltd. (TSX/NYSE: OR) and Osisk Mining Inc. (TSX: OSK) are significant sharehlders f the Cmpany. Fr further infrmatin n Osisk Metals, visit r cntact: Jeff Hussey President & CEO Osisk Metals Incrprated (514) inf@siskmetals.cm Christina Lalli Directr, Investr Relatins Osisk Metals Incrprated (514) inf@siskmetals.cm Neither TSX Venture Exchange nr its Regulatin Services Prvider (as that term is defined in the plicies f the TSX Venture Exchange) accepts respnsibility fr the adequacy r accuracy f this release. Cautinary Nte Regarding Frward-Lking Infrmatin This news release cntains "frward-lking infrmatin" within the meaning f applicable Canadian securities legislatin based n expectatins, estimates and prjectins as at the date f this news release. Frward-lking infrmatin invlves risks, uncertainties and ther factrs that culd cause actual events, results, perfrmance, prspects and pprtunities t differ materially frm thse expressed r implied by such frward-lking infrmatin. Frward-lking infrmatin in this news release includes, but is nt limited t, the use f prceeds f the Offering; the timing and ability f the Crpratin, if at all, t btain final apprval f the Offering frm the TSX Venture Exchange; an exemptin being available under MI and Plicy 5.9 f the TSX Venture Exchange frm the minrity sharehlder apprval and valuatin requirements fr each related party transactin; bjectives, gals r future plans; statements regarding explratin results and explratin plans. Factrs that culd cause actual results t differ materially frm such frward-lking infrmatin include, but are nt limited t, capital and perating csts varying significantly frm estimates; the preliminary nature f metallurgical test results; delays in btaining r failures t btain required gvernmental, envirnmental r ther prject apprvals; uncertainties relating t the availability and csts f financing needed in the future; changes in equity markets; inflatin; fluctuatins in cmmdity prices; delays in the develpment f prjects; the ther risks invlved in the mineral 4

5 explratin and develpment industry; and thse risks set ut in the Crpratin's public dcuments filed n SEDAR at Althugh the Crpratin believes that the assumptins and factrs used in preparing the frward-lking infrmatin in this news release are reasnable, undue reliance shuld nt be placed n such infrmatin, which nly applies as f the date f this news release, and n assurance can be given that such events will ccur in the disclsed time frames r at all. The Crpratin disclaims any intentin r bligatin t update r revise any frward-lking infrmatin, whether as a result f new infrmatin, future events r therwise, ther than as required by law. Neither the TSX Venture Exchange nr its Regulatin Services Prvider (as that term is defined in the plicies f the TSX Venture Exchange) accepts respnsibility fr the adequacy r accuracy f this news release. N stck exchange, securities cmmissin r ther regulatry authrity has apprved r disapprved the infrmatin cntained herein. 5