Osiko Metals - ZINC

Key Anacon - Gilmour South (Brunswick Belt)

The Key Anacon and Gilmour South properties are located in the eastern portion of the Bathurst Mining Camp (the “BMC”), south of the city of Bathurst, New Brunswick, Canada.

The area is host to zinc-lead-copper-silver-bearing sulphide mineralization, host-rock types and alteration similar to the Brunswick No. 12 and Brunswick No.6 stratiform zinc-lead sulphide mineralization otherwise known as the “Brunswick Belt”. The Key Anacon – Gilmour South area contains the Brunswick Horizon extending from the prolific Brunswick No.12 and No. 6 Mines to Gilmour South and extending for an additional 37 kilometres before reaching the Key Anacon Main Deposit. Gilmour South is located approximately 27 kilometres southwest of, and connected to, the Key Anacon site by major forestry roads. In total, Osisko Metals has secured 72 kilometres of favorable Brunswick Belt and Brunswick Horizon stratigraphy and looks forward to unlocking the potential in the poorly-explored corridor of Brunswick Horizon beneath the Carboniferous cover, South of the Key Anacon deposits.

Table 1: Current mineral resource as reported by AGP Mining Consultants Inc.

Mineralized Zones

Resource Category

 

Grades (@ 5.5 ZnEq cut-off)

In-situ Metal

Tonnes

Zn

Pb

Cu

Ag

ZnEq

Zn

Pb

Cu

Ag

mil

%

%

%

g/t

%

mil

mil

mil

mil

lbs.

lbs.

lbs.

 oz

Key Anacon Main

Indicated

1.67

6.02

2.52

0.14

74.20

9.31

221.0

92.5

5.1

4.0

Key Anacon Titan

0.29

4.36

1.57

0.65

38.80

7.25

28.2

10.1

4.2

0.4

Total Indicated @ 5.5 ZnEq cut-off

1.96

5.77

2.38

0.22

68.90

9.00

249.1

102.6

9.3

4.3

Key Anacon Main

Inferred

0.61

5.83

1.98

0.05

68.20

8.49

77.7

26.5

0.6

1.3

Key Anacon Titan

0.98

4.12

1.62

0.78

42.90

7.35

89.5

35.2

17

1.4

Gilmour South

2.26

5.74

1.30

0.19

44.30

8.08

286.8

64.8

9.4

3.2

Total Inferred @ 5.5 ZnEq cut-off

3.85

5.34

1.49

0.32

47.70

7.96

453.0

126.4

27.0

5.9


Mineral resources are estimated in conformance with the CIM Mineral Resource definitions referred to in NI 43-101 Standards of Disclosure for Mineral Projects.The independent technical report supporting disclosure of the Inferred and Indicated Mineral Resource for the Key Anacon Main Deposit, Key Anacon Titan Deposit and Gilmour South Deposit entitled “NI 43-101 Maiden Resource Estimate for the Bathurst Mining Camp Project ” is dated April 4, 2019 with an effective date of February 20, 2019. This report was prepared by Pierre Desautels, P.Geo., of AGP Mining Consultants Inc. The full report and supporting QP documents are posted to www.sedar.com.

Key Anacon

The Key Anacon project is located approximately 20 km south of the town of Bathurst, New Brunswick and 16 km southeast of the former Brunswick No.12 mine (Figure 1). It is accessible by paved roads. The property contains two known Bathurst-type volcanogenic massive sulphide deposits containing zinc, lead, copper and silver (Figure 3). The Key Anacon Main Deposit and Key Anacon Titan Deposit are situated 1. 5 kilometres apart, at the same stratigraphic horizon that hosted the Brunswick No. 12 & No. 6 mines. The property covers approximately 12 kilometres of favorable Brunswick Belt stratigraphy that also extends onto the surrounding claims held 100% by Osisko Metals.

Except for sporadic exploration programs conducted in 1992-1993 and 2000, almost all of the drilling was completed in the 1950’s and 60’s. The earlier drilling led to the construction of a 460-metre-deep shaft, a ventilation raise, eight levels and three sub-levels at the Main Zone; however, no production was realized at the time. Exploration and development in the 1950’s and 1960’s were terminated due to the pullback of the zinc commodity price at that time. Since then, only two minor exploration programs were conducted by major mining companies. The deposits are open at depth and along strike.  

Gilmour South

The Gilmour South project is located 27 kilometres by road from Key Anacon and covers 1.4 kilometres of the “Brunswick Horizon” (Figure 1). It is located 20km south of the former Brunswick No. 12 mine and 7 km south of the former Brunswick No. 6 Mine. Mineralization is characterized by zinc-lead-copper-silver-bearing sulphide mineralization, host-rock types and alteration similar to the Brunswick Mines stratiform zinc-lead sulphide mineralization otherwise known as the Brunswick “Horizon”. The Gilmour South Deposit is hosted within this mineralized sequence. Its continuation, including other mineralized intercepts, has not been well-delineated and has been investigated by relatively sparse historical drilling at approximately 200 metre centers.

Exploration

The Brunswick Belt (Figure 3) warrants exploration on the basis of new ideas and concepts developed by the Osisko Metals’ team as a number of significant historical deposits have not been assessed in the context of current zinc markets nor their exploration potential. Osisko Metals has completed an innovative geological analysis of the Key Anacon Main and Titan deposits and the Brunswick Belt within the area yielding ten (10) new greenfield exploration targets (Figure 3). Following recent staking in the vicinity of the Key Anacon and Gilmour South properties as well as the former producing Brunswick No. 6 and No. 12 mines, the company now owns 100% of the Brunswick Horizon, over a strike length of 72 kilometres (Figure 3). All targets are between surface and 200 metres vertical depth and will be drill-tested in 2019.

Notes:

Note 1: The above-noted mineral resources are not mineral reserves as they do not have demonstrated economic viability. The quantity and grade of the reported Inferred Mineral Resources in this estimation are conceptual in nature and are estimated based on limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. For these reasons, an Inferred Mineral Resources has a lower level of confidence than an Indicated Mineral Resources and it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

Note 2: Map Reference: Brunswick 6 and 12 Mines past production statistics. Source: The Government of New Brunswick, Department of Energy and Resource Development, Energy and Mines Division Mineral Occurrence Database. Reference to historical production in the vicinity of Osisko Metals properties in this press release does not imply that any future mineral resources or discoveries will be of economic viability, nor does it imply that additional discoveries will be made.


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  • Location of Key Anacon and Gilmour South
  • Geology of the eastern Portion of the Bathurst Mining Camp