Osisko Metals (OM.V) has started a 13,000 meter drill program on its Pine Point zinc project in Canada’s Northwest Territories. The majority of the holes will be part of an infill drill program which is aimed at upgrading the inferred resource into the indicated resource category. As a reminder: the PEA was based on the total resource tonnage of about 50 million tonnes, but only 13 million tonnes were classified as an indicated resource so the infill drill program is definitely needed to further increase the confidence in the Pine Point resource and the economic viability of the project as a whole.
Some of the planned holes will serve a dual purpose as Osisko continues to work on the very important hydrogeological situation. It recently published a positive update on the water flows which could have a positive impact on the economics of Pine Point. The Summer/Fall 2021 drill holes will further characterize the underground water flow on the eastern side of Pine Point.
The assay results of the drill program and the findings of the hydrogeological survey will be used in an updated PEA which should be published in the first quarter of 2022. Let’s hope the market will start caring about this project as the Osisko Metals share price has been moving sideways for over a year now as it remained stuck within a trading range of C$0.40-0.50 despite the strong zinc price.
Disclosure: The author has a long position in Osisko Metals. Please read our disclaimer.
