Osisko Development Corp. (
“Osisko” or the
“Company”) (TSX.V-ODV) is pleased to announce new
drilling results from the exploration program on the Proserpine
greenfield target on the Cariboo Gold Project
(“
Cariboo”) in central British Columbia.
Detailed geologic mapping and sampling programs
carried out in 2019 identified several prospective drill targets
and further defined the lithologic controls on gold mineralization
of the Company’s greenfield targets (Figure 1). The initial program
was successful in discovery of high-grade, mineralized axial planar
veins analogous to those on Cow, Island and Barkerville Mountains
with assay highlights of 17.78 g/t Au over 5.60
meters including a sample of 112 g/t Au over 0.60
meter and 30.70 g/t Au over 1.00 meter in
hole PSP-19-002 (See Osisko Gold Royalties Ltd news release dated
October 5th, 2020). The Proserpine area is located six kilometers
along trend from the Cariboo Deposits and minimal drill testing has
occurred along the trend to date (Figure 2).
An additional 2,917 meters were drilled in six
holes to expand the initial discovery. The program was successful
in outlining a 1.5-kilometer trend of anomalous
mineralization at Proserpine (Figure 3). The geologic
model was refined to target the mineralization to the south of 2018
Grouse drilling in the more prospective siliceous sandstone unit
south of the calcareous sandstone and results included 7.96
g/t Au over 9.0 meters and included samples of
13.25 g/t Au, 14.05 g/t Au, 16.25 g/t Au and 19.15 g/t
Au. The system is open in all directions.
Sean Roosen, Chair and CEO of Osisko, commented:
“The success of these initial drill holes located six kilometers
south east of the Company’s Mineral Resource, continue to increase
the confidence we have in the potential scale of the mineralized
trend on the Cariboo mining camp.”
Further highlights from drilling at Proserpine
are presented below.
Select Proserpine Assays
- PSP-20-001: 6.81 g/t Au over 2.30 meters
- PSP-20-002: 8.06 g/t Au over 1.70 meters
- PSP-20-002: 14.20 g/t Au over 0.50 meter
- PSP-20-003: 16.40 g/t Au over 0.50 meter
- PSP-20-003: 25.30 g/t Au over 0.65 meter
- PSP-20-004: 10.90 g/t Au over 0.50 meter
- PSP-20-005: 7.96 g/t Au over 9.00 meters including 19.15 g/t Au
over 0.60 meter
Mineralized quartz veins on the Cariboo Gold
Project are overall sub-vertical dip and northeast strike.
Vein corridors are defined as a high-density network of
mineralized quartz veins within the axis of the F3 fold and hosted
within the sandstones. Vein corridors are modelled at a minimum
thickness of 2 meters and individual veins within each corridor
range in width from millimeter to several meters. The
modelled vein corridors for the resource update includes the
internal dilution of the subeconomic sandstone within these vein
corridors. These corridors have been defined from surface to a
vertical depth averaging 300 meters and remain open for expansion
at depth and down plunge. Gold grades are intimately associated
with vein-hosted pyrite as well as pyritic, intensely silicified
wall rock haloes in close proximity to the veins.
True widths are estimated to be 60 to 75% of
reported core length intervals. Intervals not recovered by drilling
were assigned zero grade. Top cuts have not been applied to high
grade assays. Complete assay highlights are presented in Table 1,
drill hole locations are listed in Table 2.
Figure 1: Cariboo Geology
Maphttps://www.globenewswire.com/NewsRoom/AttachmentNg/eeadf2f3-bcb6-4f0e-b1e5-961fc821d15e
Figure 2: Cariboo Deposits and
Drillhole
Locationshttps://www.globenewswire.com/NewsRoom/AttachmentNg/f0060309-13bc-4473-a48e-d3f715b555f5
Figure 3: Proserpine plan map
of drill hole locations and select assay
highlightshttps://www.globenewswire.com/NewsRoom/AttachmentNg/261e8313-03f9-403f-b78b-29f9ceefed9f
Figure 4: Proserpine vein
corridor intercept assaying 7.96 g/t Au over 9.00 meters from
398.25 m to 407.25 m. The vein corridor is hosted within an
interbedded carbonaceous siltstone and fine to medium grained sand
and is comprised of 85% vein material hosting 20% pyrite with zones
of semi massive pyrite. Fractured and brecciated vein material is
also present within the zone along a mapped fault
structure.https://www.globenewswire.com/NewsRoom/AttachmentNg/cb52200d-425a-436d-a57c-4ce5ee18d31d
Qualified Persons
Per National Instrument 43-101 Standards of
Disclosure for Mineral Projects, Maggie Layman, P.Geo. Vice
President Exploration of Osisko, is a Qualified Person and has
prepared, validated, and approved the technical and scientific
content of this news release.
Quality Assurance – Quality
Control
Once received from the drill and processed, all
drill core samples are sawn in half, labelled and bagged. The
remaining drill core is subsequently stored on site at a secured
facility in Wells, BC. Numbered security tags are applied to lab
shipments for chain of custody requirements. Quality control (QC)
samples are inserted at regular intervals in the sample stream,
including blanks and reference materials with all sample shipments
to monitor laboratory performance. The QAQC program was designed
and approved by Lynda Bloom, P.Geo. of Analytical Solutions
Ltd.
Drill core samples are submitted to ALS
Geochemistry’s analytical facility in North Vancouver, British
Columbia for preparation and analysis. The ALS facility is
accredited to the ISO/IEC 17025 standard for gold assays and all
analytical methods include quality control materials at set
frequencies with established data acceptance criteria. The entire
sample is crushed, and 250 grams is pulverized. Analysis for gold
is by 50g fire assay fusion with atomic absorption (AAS) finish
with a lower limit of 0.01 ppm and upper limit of 100 ppm. Samples
with gold assays greater than 100 ppm are re-analyzed using a
1,000g screen metallic fire assay. A selected number of samples are
also analyzed using a 48 multi-elemental geochemical package by a
4-acid digestion, followed by Inductively Coupled Plasma Atomic
Emission Spectroscopy (ICP-AES) and Inductively Coupled Plasma Mass
Spectroscopy (ICP-MS).Corporate Update
Osisko is pleased to announce that the board of
directors has appointed Mr. Alexander Dann as Chief Financial
Officer and Vice President, Finance. The appointment of
Mr. Dann will be effective on or about February 26, 2021,
following the release of the Company’s annual consolidated
financial statements.
Mr. Sean Roosen, Chair of the Board and CEO
stated: “I’m thrilled to welcome Alex to the management team.
We worked very hard to launch and finance the Company over the last
few months and to position it for its transition to production in
the short term. Alex joins us at the right time given his
knowledge of the mining industry and his experience with
exploration and producing mining companies. Alex has the
right skill set to contribute to the next phase of development of
the Company”.
Alex is a bilingual chartered professional
accountant with over 25 years of experience leading financial
operations and strategic planning for multinational public
companies, primarily in the mining and manufacturing sectors. Most
recently, Alex served as Chief Financial Officer of The Flowr
Corporation, where he successfully guided them from a small private
company to a TSXV publicly traded corporation. Prior to that, Alex
was CFO of Avion Gold Corp. and Era Resources Inc., until their
acquisitions by Endeavour Mining Corporation and The Sentient
Group, respectively. Alex also held senior finance roles with
Falconbridge Ltd. (now part of Glencore), Rio Algom Limited (now
part of BHP Billiton) and Litens Automotive Partnership (a group
within Magna International Inc.).
Alex obtained his Chartered Accountant
designation in 1995 and holds a Bachelor degree in Business
Administration from L’Université Laval in Québec City.
As part of his hiring, Mr. Dann received an
initial one-time grant of incentive stock options to purchase
31,600 common shares at a price of $8.10 per share for five years
and the vesting terms are one third (1/3) two (2) years after the
date of grant, one third (1/3) three (3) years after the date of
grant and one third (1/3) four (4) years after the date of grant.
These options have been granted in accordance with the Company’s
Stock Option Plan. The Company also reports the grant a
one-time initial award totaling 170,620 deferred shares units to
its non-executive directors on December 22, 2020. The
deferred shares units will vest on the day prior to the annual
meeting of shareholders to be held in 2022.
About Osisko Development
Corp.
Osisko Development Corp. is well-capitalized and
uniquely positioned as a premier gold development company in North
America to advance the Cariboo Gold Project and other Canadian and
Mexican properties, with the objective of becoming the next
mid-tier gold producer. The Cariboo Gold Project, located in
central British Columbia, is Osisko Development's flagship asset
with measured and indicated resource of 21.44 Mt at 4.6 Au g/t for
a total of 3.2 million ounces of gold and inferred resource of
21.69 Mt at 3.9 Au g/t for a total of 2.7 million ounces of gold.
The considerable exploration potential at depth and along strike
distinguishes the Cariboo Gold Project relative to other
development assets as does the historically low, all-in discovery
costs of US $19 per ounce. The Cariboo Gold Project is advancing
through permitting as a 4,750 tonnes per day underground operation
with a feasibility study on track for completion in the second half
of 2021. Osisko Development's project pipeline is complemented by
potential near-term production targeted from the San Antonio gold
project, located in Sonora Mexico and early exploration stage
properties including the Coulon Project and James Bay Properties
located in Québec as well as the Guerrero Properties located in
Mexico. Osisko Development began trading on the TSX Venture
Exchange under the symbol "ODV" on December 2, 2020.
For further information,
please contact Osisko Development Corp.: |
Jean Francois LemondeVP Investors
Relations(514)299-4926jflemonde@osiskodev.com |
Forward-looking Statements
Certain statements contained in this press
release may be deemed “forward‐looking statements” within the
meaning of applicable Canadian and U.S. securities laws. These
forward‐looking statements, by their nature, require Osisko to make
certain assumptions and necessarily involve known and unknown risks
and uncertainties that could cause actual results to differ
materially from those expressed or implied in these forward‐looking
statements. Forward‐looking statements are not guarantees of
performance. Words such as “may”, “will”, “would”, “could”,
“expect”, “believe”, “plan”, “anticipate”, “intend”, “estimate”,
“continue”, or the negative or comparable terminology, as well as
terms usually used in the future and the conditional, are intended
to identify forward‐looking statements. Information contained in
forward‐looking statements is based upon certain material
assumptions that were applied in drawing a conclusion or making a
forecast or projection, including management’s perceptions of
historical trends, current conditions and expected future
developments, results of further exploration work to define and
expand mineral resources, that vein corridors continue to be
defined as a high-density network of mineralized quartz within the
axis of the F3 fold and hosted within the sandstones and that the
deposit remains open for expansion at depth and down plunge, as
well as other considerations that are believed to be appropriate in
the circumstances. Osisko considers its assumptions to be
reasonable based on information currently available, but cautions
the reader that their assumptions regarding future events, many of
which are beyond the control of Osisko, may ultimately prove to be
incorrect since they are subject to risks and uncertainties that
affect Osisko and its business. Such risks and uncertainties
include, among others, risks relating to the ability of exploration
activities (including drill results) to accurately predict
mineralization; errors in management’s geological modelling; the
ability of to complete further exploration activities, including
drilling; property and royalty interests in the Cariboo gold
deposit; the ability of the Corporation to obtain required
approvals; the results of exploration activities; risks relating to
mining activities; the global economic climate; metal prices;
dilution; environmental risks; and community and non-governmental
actions and the responses of relevant governments to the COVID-19
outbreak and the effectiveness of such responses.
For additional information with respect to these
and other factors and assumptions underlying the forward‐looking
statements made in this news release concerning Osisko Development,
see the Filing Statement available electronically under Osisko
Development's issuer profile on SEDAR (www.sedar.com). The
forward‐looking statements set forth herein concerning Osisko
Development reflect management's expectations as at the date of
this news release and are subject to change after such date. Osisko
Development disclaims any intention or obligation to update or
revise any forward-looking statements, 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.
Table 1: Proserpine
Length Weighted Drill Hole Gold Composites
HOLE ID |
FROM (M) |
TO (M) |
LENGTH (M) |
AU (G/T) |
PSP-20-001 |
|
182.00 |
184.30 |
2.30 |
6.81 |
|
INCLUDING |
182.50 |
183.45 |
0.95 |
12.85 |
PSP-20-002 |
|
7.10 |
7.75 |
0.65 |
1.27 |
|
|
19.30 |
21.00 |
1.70 |
8.06 |
|
INCLUDING |
19.30 |
20.50 |
1.20 |
11.20 |
|
|
127.05 |
129.10 |
2.05 |
5.84 |
|
INCLUDING |
128.60 |
129.10 |
0.50 |
14.20 |
|
|
201.40 |
202.00 |
0.60 |
1.06 |
|
|
222.50 |
225.60 |
3.10 |
1.95 |
|
INCLUDING |
222.50 |
223.00 |
0.50 |
3.54 |
|
AND |
223.50 |
224.20 |
0.70 |
3.88 |
|
|
263.00 |
263.70 |
0.70 |
2.20 |
|
|
317.75 |
318.40 |
0.65 |
2.24 |
|
|
388.00 |
388.90 |
0.90 |
2.50 |
|
|
537.40 |
537.90 |
0.50 |
5.20 |
|
|
553.75 |
554.30 |
0.55 |
2.39 |
PSP-20-003 |
|
188.65 |
190.25 |
1.60 |
5.52 |
|
INCLUDING |
189.75 |
190.25 |
0.50 |
16.40 |
|
|
257.50 |
258.00 |
0.50 |
7.50 |
|
|
275.60 |
277.10 |
1.50 |
4.38 |
|
|
515.15 |
515.80 |
0.65 |
25.30 |
|
|
584.70 |
586.15 |
1.45 |
1.82 |
|
|
587.50 |
589.00 |
1.50 |
1.01 |
PSP-20-004 |
|
297.15 |
297.80 |
0.65 |
2.41 |
|
|
304.10 |
304.60 |
0.50 |
1.86 |
|
|
397.15 |
397.65 |
0.50 |
10.90 |
|
|
400.10 |
400.60 |
0.50 |
1.73 |
|
|
425.40 |
426.10 |
0.70 |
9.79 |
|
|
438.35 |
439.40 |
1.05 |
2.49 |
|
|
443.70 |
444.20 |
0.50 |
2.48 |
|
|
449.20 |
449.70 |
0.50 |
2.09 |
PSP-20-005 |
|
383.10 |
383.60 |
0.50 |
4.98 |
|
|
392.15 |
393.00 |
0.85 |
1.07 |
|
|
398.25 |
407.25 |
9.00 |
7.96 |
|
INCLUDING |
398.25 |
399.15 |
0.90 |
13.25 |
|
AND |
399.15 |
400.15 |
1.00 |
6.74 |
|
AND |
400.15 |
400.90 |
0.75 |
14.05 |
|
AND |
401.90 |
403.40 |
1.50 |
6.26 |
|
AND |
404.50 |
405.35 |
0.85 |
16.25 |
|
AND |
406.65 |
407.25 |
0.60 |
19.15 |
Table 2: Drill Hole Locations and
Orientations
HOLE ID |
EASTING |
NORTHING |
ELEV |
DIP |
AZI |
DEPTH (M) |
PSP-20-001 |
601706 |
5876632 |
1742 |
-45 |
211 |
666 |
PSP-20-002 |
601642 |
5876795 |
1729 |
-44 |
120 |
579 |
PSP-20-003 |
601698 |
5876895 |
1737 |
-45 |
120 |
598 |
PSP-20-004 |
601847 |
5876754 |
1746 |
-45 |
123 |
540 |
PSP-20-005 |
602178 |
5876062 |
1709 |
-46 |
121 |
534 |
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