Osisko Development Corp. (“
Osisko Development” or
the “
Company”) (TSXV: ODV) is pleased to announce
the positive results of the recent test work aimed at confirming
the use ore sorting to improve the processed grade of mineral
resources at the Cariboo Gold Project in Wells, British Columbia.
Osisko Development Corp. commissioned TOMRA in
the last quarter of 2020 to complete ore sorting tests using a XRT
sensor (x-ray transmission) on a sample of approximately 2,200kg of
ore coming from the Cariboo Gold project. After screening to remove
the fine particles (size less than 10mm), approximately 1,800kg of
sample, corresponding to medium grade mineralized material
typically encountered around high grade veins and replacements, was
tested by the Tomra Sorter.
For the Cariboo Gold Project, grades higher than
4.0 g/t will go directly to flotation where metallurgical tests
yields gold recovery of 98.3%. Grades lower than 4.0 g/t are sent
to a pre-concentration ore sorting process.
Ore sorting by the numbers:
- 10 g/t Au is the approximate in situ grade of vein material
based on core logging data. Statistics show 100% or more increase
in grade by using a XRT sensor driven ore sorter to remove
unmineralized rock from sulphide rich vein material.
- 93.1% gold recovery with ore sorting, 98.3% gold recovery from
flotation concentrate and overall recovery of 91.3% (ore sorting +
flotation + leaching).
- 50% of waste rock can be removed after the initial crushing by
utilising the XRT sensor ore sorter for less than $2.00 per
ton.
- 50% less material goes to the grinding and
flotation circuit.
- 25% estimated savings in processing costs and 7% of overall
operating costs.
- 30% estimated savings in capital costs.
- 50% reduction in process water and power requirements for the
concentrator.
- Eliminates the requirements for a Tailings Storage Facility
(TSF) for the concentrator located in Wells.
- Only 13% of all
extracted ore will generate tailings that will be stored at
existing QR mill TSF as filtered tailings.
Table 1: Test results at TOMRA facilities
Particle Size (mm) |
Sample Mass (kg) |
Sample Grade (g/t Au) |
Concentrate Mass (kg) |
Concentrate Grade (g/t Au) |
Recovery Au (%) |
10 to 25 |
549 |
2.76 |
232 |
6.07 |
93.3 |
> 25 |
1253 |
2.30 |
445 |
6.24 |
96.4 |
Combining the two new tests done at the TOMRA
facility with the previous 21 tests done at the Steinert facility
in Kentucky, USA, more than 4,700kg of mineralization was tested
with commercially available ore sorting technology. The average
combined recovery of gold from all tests was approximately 93.1%
and a mass pull of 42.6%. Using the ore sorting as a primary
pre-concentration process reduces overall processing costs by
removing mechanically, unmineralized material (57.6% in tests
done). In the case of the Cariboo Gold project, this translates to
important cost savings on the capital expenditures and operation
expenditures for the mill facility by reducing the requirement to
process 50% to 60% of the extracted mineral resource tonnage from
the mine. This translates to approximately $5.00 $ / tonne of
operation expenditures savings and a concentrator feed grade
increase from 80 to 100 %.
Table 2: Steinert sorting test results and TOMRA
sorting test results comparison
Steinert Sorting Test Results |
|
Mass Pull (%) |
Au Recovery (%) |
|
Results |
Std. dev. |
Results |
Std. dev. |
Weighted Average |
45.6 |
17.7 |
91.7 |
3.2 |
Minimum |
16.2 |
|
86.6 |
|
Maximum |
79.2 |
|
97.5 |
|
Tomra Sorting Test Results |
|
Mass Pull (%) |
Au Recovery (%) |
|
Results |
Std. dev. |
Results |
Std. dev. |
Weighed Average |
37.6 |
4.9 |
95.5 |
2.2 |
Minimum |
35.5 |
|
93.3 |
|
Maximum |
42.4 |
|
96.4 |
|
The benefits of ore sorting technology are also
substantial from an environmental perspective by reducing the
energy required for the communition circuit, the amount of
processing reagents and water needed for processing and more
importantly, enabling the Cariboo Gold Project to have no tailings
storage facility near the community of Wells. Sorted material can
be transported and deposited within the existing waste pile
adjacent to the Bonanza Ledge Mine currently in operation.
Sean Roosen, Chair and CEO of Osisko, commented:
“The results from the TOMRA tests validate the favorable mineralogy
of the Cariboo Gold Project for ore sorting technology. These new
tests, completed on medium grade material, demonstrate the
potential to provide a higher grade, ore sorter concentrate, at a
low cost, to be further upgraded via a standard flotation process,
to the planned concentrator facility in Wells, BC. It will also
enable us to substantially reduce the amount of process water,
chemicals and energy required in comparison to conventional
processing. The Sensor Sorting Technology is used in many
industries including metals and plastics recycling as well as
vegetable and fruit sorting which are far more challenging. This is
another step to demonstrating our ongoing commitment to best
environmental practices.”
In the coming months, Osisko Development plans a
second ore sorting test at the TOMRA test facility in Wedel,
Germany to provide even further confidence for this design
improvement of the Wells concentrator.
The Company also expects to receive approval to
begin development of an underground access for a 10,000 tonne bulk
sample in the second quarter of 2021. The bulk sample permit
intends to replicate the Cariboo Gold Project’s mining conditions
by mining two stopes and processing the mineralized material
through an ore sorter on site. A new ore sorter was purchased in
the last quarter of 2020 and is expected to arrive in Wells during
the third quarter of 2021 with test work beginning before year
end.
This bulk sample will also allow Osisko
Development to continue to test our new, fully electric and
automated Sandvik MT720 continuous miner (“roadheader”). The
equipment was assembled in February and is presently being
commissioned in drift development at the Company’s Bonanza Ledge
Phase II Mine. The roadheader has cut over 100 meters of drift
(5.8m wide x 5.3m of height) with up to 7 meters of advancement
during a 12 hour shift including rock support, services
installation and mucking.
Mineralized quartz veins on Cariboo 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 last folding event’s folds and hosted within a brittle
meta-sandstone or calcareous meta-sandstone. Vein corridors are
modelled at a minimum thickness of 2 meters and average about 4.5
meters true width. Individual mineralized veins within these
corridors have widths varying from centimeters to several meters
and strike lengths from a few meters to over 50 meters. These
corridors have been defined from surface to a vertical depth
averaging 300 meters and remain open for expansion at depth and
along strike. Gold grades are intimately associated with quartz
vein-hosted pyrite as well as pyritic, intensely silicified wall
rock haloes in close proximity to the veins. The average grade of
the actual veins based on the 43-101 resource update dated October
5, 2020 averages approximately10 g/t Au
Qualified Persons
Per National Instrument 43-101 Standards of
Disclosure for Mineral Projects, Francois Vezina, P.Eng. Vice
President Technical Services Osisko Development and Maggie Layman,
P.Geo. Vice President Exploration of Osisko Development is a
Qualified Persons and has prepared, validated, and approved the
technical and scientific content of this news release.
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
(effective date of October 5th, 2020 and published on SEDAR). 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 Investor
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 metallurgical and processing
testing to improve gold recovery and optimize the overall
processing of minerals and additional exploration work to define
and expand mineral resources, expected conclusions of optimization
studies, that vein corridors continue to be defined as a
high-density network of mineralized quartz within the axis of the
last folding event’s folds 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 on SEDAR
(www.sedar.com) under Osisko Development's issuer profile. 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.
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