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Osisko Metals Releases Positive Update for Pine Point PEA
MONTREAL, July 13, 2022 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the "Company" or "Osisko Metals") (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) is pleased
About this update from Osisko Metals Incorporated
[{"type":"text","content":" MONTREAL, July 13, 2022 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the \"Company\" or \"Osisko Metals\") (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) is pleased to announce the results of the Updated Preliminary Economic Assessment (the “PEA Update”) for its wholly-owned Pine Point Project (the “Project”), located near the town of Hay River in the Northwest Territories, Canada. The PEA Update was prepared in collaboration with independent engineering firms BBA Inc., WSP Canada Inc., & Hydro-Resources Inc. (“HRI”). The objective of the 2022 PEA Update was to integrate updated long-term prices for zinc and lead, increased mined resources, cost escalations in CAPEX and OPEX as well as reduced life-of-mine water management costs that resulted from the recently completed hydrogeological model. The latter reduced the estimated dewatering volume by 30% compared to the 2020 PEA with potential for a further forecasted reduction of 15% as the project advances to feasibility. Table 1: Updated PEA Highlight Results (all figures in CAN$ unless otherwise noted)* After-Tax Internal Rate of Return (\"IRR\") 25% After-Tax Net Present Value (\"NPV\") (Discount Rate 8%) $602M After-Tax Payback Period (Years) 3.8 Pre-Production CAPEX (including $106.6M Contingency) $653M Average Annual LOM Production Zinc 329Mlb Average Annual LOM Production Lead 141Mlb Life of Mine (\"LOM\") 12 Years Total Mineral Resources Mined 46.9Mt Average ZnEq Diluted (12%) Grade of Mineral Resources Mined 6.1% Gross Revenue After Royalty (LOM) $5,625M After-tax Operating Cash Flow (LOM) $1,279M C1 Costs over LOM (ZnEq)** US$0.61/lb All-In Costs (including sustaining CAPEX, ZnEq)*** US$0.80/lb LOM Zinc Price US$1.37/lb LOM Lead Price US$0.96/lb FX Rate (CAD:USD) 1.27 * See Cautionary Statement below** C1 cost includes mine site cost plus smelting, transport and royalty*** All-in costs are C1 plus sustaining CAPEX - Robert Wares, Executive Chairman & CEO, commented: “In the current inflationary context I am very pleased that the PEA Update still shows a very robust zinc project with viable economic metrics including an after-tax IRR of 25% and after-tax NPV of C$602 M, as well as significantly increased resources. The new proposed mine plan, with 18% increased tonnage to the mill, could again make Pine Point a top-ten global zinc-lead producer with an annual avera...