Osisko Metals Provides Outlook for 2018

MONTREAL, QUEBEC–(Marketwired – Feb. 12, 2018) – Osisko Metals Incorporated (the “Company” or “Osisko Metals“) (TSX VENTURE:OM)(FRANKFURT:0B5) is pleased to present a summary of its 2017 corporate milestones and its outlook for 2018.

Jeff Hussey, President and CEO, remarked: “2017 was a very successful year for Osisko Metals and we look forward to 2018 on many different fronts. Consolidating one of Canada’s largest historical zinc mining camps in Bathurst, New Brunswick, was a major move for the Company, as well was attracting a management team that is both knowledgeable and experienced in exploration and development of base metals assets. We also successfully raised sufficient capital to finance our programs and lastly, we initiated the acquisition of Pine Point, Canada’s once most profitable zinc mining camp in the southern Northwest Territories. I would like to thank all of our stakeholders for their support during this exciting first year as Osisko Metals and look forward to a new year of milestones as we remain committed to creating shareholder value.”

2017 Highlights

  • The Company consolidated over 63,000 hectares within the Bathurst Mining Camp (BMC) in New Brunswick – historically Canada’s largest and longest operating zinc camps – making Osisko Metals the largest landowner of this highly prospective region. Among these claims, the Company acquired the majority of the Brunswick Belt, which covers significant portions of the strike length that hosted both the former Brunswick No.12 and No.6 mines, and offers some of the most prolific geology in the Bathurst Camp.

    The Company also successfully signed a number of key agreements to purchase groups of claims hosting significant historical deposits, namely Key Anacon, Mount Fronsac, Flat Landing Brook, Gilmour South, Camel Back and Louvicourt. In September of 2017, Osisko Metals began an aggressive Phase 1 diamond drill program focused on resource definition and expansion of a number of these historical deposits.

    The latest acquisition in the BMC, Key Anacon and Key Anacon East, are exciting targets for Osisko Metals. The property is host to a high grade historical deposit – a total of 1.87 million tonnes grading 6.93% Zn, 2.63% Pb, 0.16% Cu, and 84 g/t Ag – and has seen limited exploration work since its initial discovery in the 1950s. A 1993 press release by Rio Algom reported a 19.9 m interval in DDH 93-42 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 40.94 g/t Ag over 82.3 metres at the East Zone. Drilling in the East Zone was never incorporated into the historical resource estimate and represents an excellent exploration target for Osisko Metals.

  • Osisko Metals had a very successful year raising capital and negotiating a strategic royalty deal with Osisko Gold Royalties, adding a total of C.75 Million to its treasury. The Company also reinforced its Board of Directors by adding John Burzynski, President, CEO and Director of Osisko Mining Inc., and one of the original founders of the Osisko group of companies, as well as Amy Satov, CEO and Co-Founder of Litron Distributors Ltd. Additionally, on the management side, the Company appointed Mr. Robin Adair, P. Geo, as Vice President Exploration and Mr. Gary Woods, P.Geo, as Senior Exploration Manager, Bathurst Project. With the addition of these two senior geologists, Osisko Metals’ management team now has over 100 years of work experience in base metals exploration, more particularly in the BMC region.
  • At the end of 2017, the Company announced the friendly acquisition of Pine Point Mining (TSX VENTURE:ZINC), and consequently the Pine Point Project, located in the Northwest Territories, Canada. The transaction implies a total equity value of C Million and immediately adds a second cornerstone asset to the Osisko Metals portfolio. Combined with the Bathurst Mining Camp, Osisko Metals will control two world class past-producing base metal camps. Post-transaction, the Company will continue to have a strong balance sheet, with approximately C million of cash that is available to aggressively advance both of its flagship assets.

    The principal characteristic of the Pine Point Project is that it is ready for development and immediately offers Osisko Metals significant re-rating potential as the Company works to convert the near-surface, historical, unclassified resources of 70.8 million tonnes of 4.2% zinc and 1.6% lead, into NI43-101 Mineral Resource Estimates. A positive Preliminary Economic Assessment study was filed in May 2017, which focused on a restricted subset of open-pit deposits, totaling 25.8 million tonnes of Indicated Resources grading 2.9% zinc and 1.1% lead and 3.7 million tonnes of Inferred Resources grading 2.9% zinc and 0.8% lead, within a larger historical resource portfolio, which has not been prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). With multiple advanced exploration targets, Osisko Metals believes the Pine Point Project is one of the most promising undeveloped zinc assets in Canada.

2018 Outlook:

  • Exploration:
    • BMC: Osisko Metals has budgeted CM in exploration work across the BMC. Exploration efforts incorporate a three-pronged approach to maximize success including 45,000 metres of drilling at historical deposits and 5,000 metres of drilling at untested earlier stage targets for a total of 50,000 meters of drilling combined with detailed airborne gravity surveys.

      Key Anacon
      The Company expects a large portion of its effort will be centered on the Key Anacon property. In total, Osisko Metals will drill a minimum of 12,000 metres in addition to drilling the area surrounding the historical resource, exploration drilling will be conducted throughout the East Zone.

      An airborne gravity survey will also be completed in order to identify other areas of potential on the property, including areas located under a thin veneer of younger flat lying rocks that overlie Bathurst Camp favorable stratigraphy.

      Mount Fronsac North
      The Company confirmed and expanded the known high-grade zone within a broad envelope of disseminated sulphides and just recently encountered drill holes with significant copper intercepts to expand a Cu intercept in a historic drill hole. Copper rich sulphides typically occur in the high temperature central portion of volcanogenic massive sulphide systems and at the time of the historic drilling, the land beyond the copper bearing drill hole was controlled by other owners. This is no longer the case and drilling in this area is currently under way. Initial results of reprocessing / re-interpretation of geophysical surveys in the Mt Fronsac – Chief’s Plateau area is already producing interesting new targets for follow up.

      Gilmour South
      Drilling will focus on connecting areas of known mineralization into a continuous package as well as testing the strike extensions. The historical deposits remain open along dip and strike.

      New Grassroot Targets
      Osisko Metals will begin testing a number of untested coincident airborne gravity and EM targets situated across the camp throughout the summer of 2018. Airborne gravity surveys are a relatively new technology and these targets were selected based on their similar responses to known deposits in the BMC.

    • Pine Point: The Pine Point transaction is expected to close by the end of February. Osisko Metals is providing assistance to Pine Point Mining’s technical team to ensure a smooth and rapid transition. The Company plans to aggressively drill the historical resources in this camp in 2018, while pushing ahead with baseline environmental studies. A drill program and budget for Pine Point will be disclosed by the end of Q1 2018.
    • Quebec: Osisko Metals will focus its grassroot exploration efforts on its top priority targets, including the Schefferville property. The Company has budgeted C.2M in total expenditures and will continue to selectively advance its portfolio based on exploration success. Work is expected to begin in Summer 2018.
  • Corporate Development: At the close of the Pine Point transaction, the Company will hold dominant positions in two of Canada’s premier zinc mining camps, offering shareholders exposure to an advanced exploration as well as a development phase zinc project, both with access to established infrastructure and in mining friendly jurisdictions. Nevertheless, the Company retains as one of its goals to become a diversified base metals development company, and in doing so, continues to monitor base metals-oriented peers for projects and growth opportunities, primarily in North America.

Qualified Person

Mr. Robin Adair is the Qualified Person responsible for the technical data reported in this news release. He is a Professional Geologist registered in New Brunswick and is Vice President Exploration of Osisko Metals Incorporated.

About Osisko Metals

Osisko Metals is a Canadian exploration and development company creating value in the base metal space with an emphasis on zinc mineral assets. To date, the Company has consolidated over 63,000 hectares in the historical world-class Bathurst Mining Camp (“BMC”), located in northern New Brunswick, in which it is focused on upgrading and expanding 6 historical deposits. The Company is also aiming to complete the acquisition of Pine Point Mining (previously announced) during the first quarter of 2018, which will give it a 100% interest in the historical Pine Point mining camp located in the Northwest Territories of Canada. The Company’s strategy in both mining camps is to develop a multi-deposit asset base that could feed a central concentrator. In Québec, the Company owns 42,000 hectares that cover 12 grass-root zinc targets that will be selectively advanced through exploration. In parallel, Osisko Metals is monitoring several base metal oriented peers for projects and acquisition opportunities. Osisko Gold Royalties Ltd. (TSX:OR)(NYSE:OR) and Osisko Mining Inc. (TSX:OSK) are significant shareholders of the Company.

For further information on Osisko Metals, visit www.osiskometals.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the use of proceeds of the Offering; the timing and ability of the Corporation, if at all, to obtain final approval of the Offering from the TSX Venture Exchange; an exemption being available under MI 61-101 and Policy 5.9 of the TSX Venture Exchange from the minority shareholder approval and valuation requirements for each related party transaction; objectives, goals or future plans; statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; fluctuations in commodity prices; delays in the development of projects; the other risks involved in the mineral exploration and development industry; and those risks set out in the Corporation’s public documents filed on SEDAR at www.sedar.com.
Although the Corporation believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Jeff Hussey
President & CEO
Osisko Metals Incorporated
(514) 861-4441
info@osiskometals.com
www.osiskometals.com

Christina Lalli
Director, Investor Relations
Osisko Metals Incorporated
(514) 861-4441
info@osiskometals.com
www.osiskometals.com