Base Metals
August 7, 2023

Osisko Metals Inc: Pioneering the Drive for Accelerated Energy Decarbonization

Copper is a versatile and essential metal that has a wide range of applications across various industries. It's role in global economic growth is significant. It's vtal for construction, electronics, transportation, renewable energy, andmore. Copper demand rises with urbanization, infrastructure development, consumer spending, and industrial expansion. Its price fluctuations oftenreflect economic health, making it a key economic indicator. To stay updated oncopper's impact on the global economy, refer to current economic reports andmarket analyses.

Highdemand for energy transition metals is driving significant growth in theexploration and market size of copper.

OsiskoMetals Inc. (TSXV: OM;OTCQX: OMZNF) is a Canadian explorationand development company with a market capitalisation of approximately 60M, creatingvalue in the base metal space with a focus on copper and zinc mineral assets. OsiskoMetals (OM) is developing two of Canada’s premier past-producing brownfieldassets – the Gaspé Copper Mine in Murdochville, Quebec, and the Pine PointMining Camp, located in the Northwest Territories.

OM'sassessment places its corporate Net Asset Value (NAV) at $203 million. Thisvaluation encompasses a 40% interest in Pine Point, valued at an after-tax NAVof $132 million discounted to 2024. Additionally, it incorporates a $62 millionvaluation for the Gaspé Copper resource, calculated based on billions of poundsin situ, valued at US$0.015 per pound.

Exceptional location for mining development inNorth America:

  • Highwayaccess from GaspéCopper to deep-sea ports and airports
  • Neighboringcommunity of Murdochville

·       Greenhydroelectric available on site

·       60MW of green wind power generation surrounding the mine site

·       HighNeutralization potential by calcareous host rocks –calcite neutralizes acideffluents

·       PavedRoad Access to the site; Hydroelectric Substationlocated on site

·       PortAccess in Saint-Laurent & Gaspé &Rail Access in southern Gaspésie



Key Highlights of the OM’s Drill program and Projects:

1. Completion of the Gaspé Copper acquisition:OM has successfully acquired 100% ownership of the Gaspé Copper Projectfollowing a recent agreement with Glencore. This project stands as one of thelargest copper development assets in Eastern North America, boasting anInferred resource of 456 million metric tons at a grade of 0.351% total copper(0.31% sulfide). There is potential for expansion beyond the historical openpit mine.

2. Advancements in the Gaspé Copper Project:OM has initiated a drilling program in 2023,spanning up to 10,000 meters, aimedat delivering an updated resource assessment by year-end and a PreliminaryEconomic Assessment (PEA) in the second quarter of 2024. Management's target isto achieve a resource estimate of at least 460 million metric tons grading at0.33% total copper or higher, with a reduction in oxide material. Ongoingdiscussions are being held to attract investors for the project. Notably, theresource contains nearly 25 million ounces of recoverable silver, offering anopportunity to realize nearly $500 million of in situ value.

Composite Highlights of Intersected Mineralization of2022 drilling program:

2022 Inferred Mineral Resource EstimateRoom for Growth:

3. Pine Point Project Progress:The 2023 drill program for Pine Point, encompassing 29,000 meters, has beensuccessfully concluded. While the drilling did not yield additional high-gradeprismatic resources, it is anticipated that a significant portion of the 2022Inferred Mineral Resource will be upgraded to the Measured and Indicatedcategories. This effort is a prelude to the feasibility study set to commencelater in this quarter.

To conclude, GaspéCopper was a significant copper producer in Eastern Canada for over forty yearsand closed more than two decades ago. Today, the need for copper as a criticalmineral for the green energy revolution is more significant than ever, andadvancements in mining technology make the potential of re-opening the mine acompelling possibility.

OsiskoMetals has developed an internal model that suggests there is a strong economiccase for re-opening Gaspé Copper. It will test its assumptions by focusinginitially on the remnant mineralization in the existing pit. By drilling andre-evaluating the remaining resources, it intends to validate the model andclose the transaction with Glencore.

TheCompany also believes that there is strong exploration potential aroundhigh-grade underground mineralization at the site that has never been mined byGaspé Copper’s former operators. This belief is supported by the discovery of amajor bulk tonnage historical resource at depth in the late 1990s.

Disclaimer:Please be aware that this is not financial advice and that you should conductdue diligence before investing. The article was issued on behalf of OsiskoMetals Inc( “Osisiko”) by Machai Capital (

Company Featured:
Osisko Metals (TSX.V: OM)