Osisko Metals Incorporated · TSX:OM
Osisko Metals — Investor Presentation (August 2019)
32 slides from Osisko Metals's investor presentation, August 2019
Slide 1: Corporate Presentation August 2019
Corporate Presentation August 2019 TSX-V: OM OTCQX: OMZNF FRANKFURT: 0B51
Slide 2: Forward-Looking Statements & Cautionary Notes Regarding Technical Information
Forward-Looking Statements & Cautionary Notes Regarding TechnicalInformation This presentation (the "Presentation") contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable securities legislation. All statem
Slide 3: Why Osisko Metals?
Why Osisko Metals? • Produced Two NI 43-101 Mineral Resource Estimates (“MRE”) Across Two Projects Since Inception 18 Months Ago. • Enormous Brownfield Exploration Potential Using Innovative Approaches to Explore in Canada’s Two Premier Historical Zinc Mining Camps. • Targeting Significant Resource
Slide 4: Supply Crunch Already Impacting Global Zinc Metal Inventories
Supply Crunch Already Impacting Global Zinc Metal Inventories Zinc Price vs Refined Zinc Metal Inventory (2004-current) 300,000 tonnes 10 day supply Source: Paradigm Capital Inc., February 4, 2019. Refined zinc metal inventory at multi-decade low. Zinc price has increased since 2016 lows and is expe
Slide 5: Share Capital Structure
Share Capital Structure As of July 31, 2019 Shares Outstanding 149,880,899 Closing price . . . . . . . . . . . . . . . $0.55 52 week high . . . . . . . . ... . . . ..$0.72 Options Market Cap . . . . . . . . . . . . . ..$82.4M 8,892,366 Approximate cash position . . $16.8M Warrants 1,180,747 Analyst
Slide 6: Executive Team & BOD with A Proven Track Record
Executive Team & BOD with A Proven Track Record Management Board of Directors Jeff Hussey P.Geo, President & CEO Independents: Paul A. Dumas, Executive VP Finance John Burzynski, P. Geo, Director Anthony Glavac CPA CA, CFO Luc Lessard, P. Eng, Director* Killian Charles, VP Corporate Development Don
Slide 7: The Pine Point Mining Camp
The Pine Point Mining Camp OSISKO METALS Pine Point @ Edmonton ie} Vancouver Calgary ° Quebec: GenEx: U) Montréal ° @ OMProject @ Corporate office Toronto oO a1 r
Slide 8: Pine Point: Open Pit Zinc Exploration & Development Project
Pine Point : Open Pit Zinc Exploration & Development Project • Pit-Constrained, Inferred Mineral Resource Estimate: o 38.4Mt grading 4.58% Zn and 1.85% Pb (6.58% ZnEq) • Infrastructure In Place: o Hydroelectric Power Available on Site o Rail Access Within 60km o Paved Roads to Site and ~100km of 25m
Slide 9: Near-Surface Mineralization
Near-Surface Mineralization 9 Please refer to page 2, Forward Looking Statements, for Pine Point Inferred Mineral Resource Estimate disclosures
Slide 10: High Grade Definition Drilling not Included in Current Resource
High Grade Definition Drilling not Included in Current Resource From To True Width Zn % Pb Zinc + Lead Drill Hole Name Zone Area Grade*Meters metres metres metres % % % Outside of Resource Blocks EM-18-PP-182 East Mill K-32 20.90 25.25 4.35 11.78 6.01 17.79 77.39 M40-18-PP-023 East Mill M-40 38.20 5
Slide 11: Strong Exploration Upside with District Wide Potential
Strong Exploration Upside with District Wide Potential 500km2 of new discovery potential for Pine Point style deposits. 11
Slide 12: Largest Pit-Constrained Resource Held by a Junior
Largest Pit-Constrained Resource Held by a Junior Pine Point Inferred MRE (38.4Mt at 6.58% ZnEq)1 is a High Grade Project. The Company estimates that the ZnEq grade of 6.58% is equivalent (on an NSR basis) to an open pit grading2: • ~2.50% Cu • ~3.15g/t Au Pine Point is the only large tonnage, high
Slide 13: Flagship Contained ZnEq (B lbs)
Largest Open Pitable Resource Held by a Junior 30,000 Flagship Contained ZnEq (B lbs) 25,000 20,000 15,000 10,000 5,000 0 Company 13
Slide 14: Pine Point Well Positioned to Enter Exclusive Group
Pine Point Well Positioned to Enter Exclusive Group 160 140 Pine Point NSR Value per Tonne (Calculated at the Average Grade of the MRE): Range: $100 - $125 USD/t1 120 100 MINE COUNT 80 60 Pine Point 40 Higher Grade 20 n=416 0 0-25 26-50 51-75 76-100 101-125 126-150 151-175 176-200 201-225 226-250 25
Slide 15: Pine Point: Premium Concentrates
Pine Point: Premium Concentrates 18.00% 6,000 Minor Element Penalties (ppm) P: Above Penalty Level P: Above Penalty Level 16.00% Major Element Penalties 5,000 P 14.00% P Mn SiO2 P Hg 12.00% Fe 4,000 P P 10.00% Cd Pb 3,000 As 8.00% P Cu 6.00% 2,000 P P 4.00% P 1,000 2.00% P P P P 0.00% 0 Historical P
Slide 16: Excellent Regional Infrastructure In Place
Excellent Regional Infrastructure In Place • Within 42 km of Hay River, • Paved Highway Access. • Known as the “Hub of the North”. • Low-Cost Hydro-Electric Power Available 16 • CN Rail Head From Edmonton & Airport. On Site From Taltson Dam.
Slide 17: On-site Infrastructure Already Benefiting Exploration Campaign
On-site Infrastructure Already Benefiting Exploration Campaign 17
Slide 18: Access to International Concentrate Markets
Access to International Concentrate Markets • Concentrates can be shipped to ports in Vancouver or Prince Rupert to access Asian markets or across Canada for European markets. • Edmonton is 969km by rail to Hay River. Edmonton to Prince Rupert is approximately 1,300km while Edmonton to Vancouver is
Slide 19: The Bathurst Mining Camp
The Bathurst Mining Camp OSISKO METALS Pine Point @ Edmonton ie} Vancouver Calgary ° Quebec GenE U) Montréal ° @ OMProject @ Corporate office Toronto oO a1 r
Slide 20: Bathurst Mining Camp Long Term Exploration and Development Pipeline
Bathurst Mining Camp Long Term Exploration and Development Pipeline Please refer to page 2, Forward Looking Statements regarding mineral resources 20
Slide 21: Bathurst Mining Camp: Focus on Key Anacon
Bathurst Mining Camp: Focus on Key Anacon Several New Targets 21
Slide 22: Maiden MRE in BMC; Room to Grow
Maiden MRE in BMC; Room to Grow • MRE is based on an underground mining scenario using: US$1.10/lb Zinc, US$0.90/lb Lead, US$2.72/lb Copper and US$15.9/oz Silver. • Does not include Copper Zone nor deep drilling at Titan due to sparse drilling. • Key Anacon Main and Titan Zones are located 1,500 met
Slide 23: Titan Copper Zone Significant Exploration Upside
Titan Copper Zone Significant Exploration Upside 0m -200 Copper Zone -400 -600 -800 From To Width Zn Pb Cu Ag ZnEq Hole Name (m) (m) (m) % % % g/t % Zinc + Lead Copper Mineralization Titan Zone @ KA9333 KA9337 596.5 737 627 743 30.6 6 0.29 0.5 0.12 0.1 0.76 2.71 7.6 31.4 1.84 5.89 -1000 Depth KA9338
Slide 24: Titan Zone Brownfield Potential
Titan Zone Brownfield Potential Significant Lead-Zinc Mineralization Located Below Titan Zone 0m • KA-01-15B: 75 metres of semi-massive to -200 massive sulphides at Vertical depth of 1,100 metres • Deepest intercept 500 metres below Titan MRE -400 boundaries. Drilling in 2019 will focus on definitio
Slide 25: Milestones to shareholder value – 6 to 12 months
Milestones to shareholder value – 6 to 12 months • Pine Point Mining Camp: • Brownfield Exploration Campaign Underway. • Airborne Gravity Gradiometry in Q3 2019. • Updated MRE; Targeting Major Resource Expansion H2 2019 targeting ≥50 Million tonnes. • PEA Planned for Q1 2020. • Bathurst Mining Camp,
Slide 26: Appendices
Appendices 26
Slide 27: Quebec Genex: Grassroot Exploration
Quebec Genex: Grassroot Exploration Osisko Metals – Osisko Mining JV – Quevillon • Geological Model: Archean VMS • 15 holes completed for a total of 3,500m; 400m to be drilled over coming months • Awaiting results Grenville Project (high-grade paragneiss terrains) • Geological Model: Broken Hill typ
Slide 28: Pine Point Longitudinal Sections
Pine Point Longitudinal Sections East Mill Zone (Tabular Type Mineralization) Zinc+Lead%/drilled width(m) W-85 Deposit (Prismatic Type Mineralization) 28 Zinc+Lead%/drilled width(m)
Slide 29: Pine Point: Robust and Conservative Parameters Create Strong MRE Base
Pine Point: Robust and Conservative Parameters Create Strong MRE Base Parameter Unit Input • Costs estimates were benchmarked with Mine Site Costs northern Canadian mining operations Mining Cost – Ore C$/t mined 4.00 Mining Cost – Waste C$/t mined 4.00 (Stornoway, etc...). Mine Dewatering Cost1 C$/t
Slide 30: Pine Point: A Closer Look at Mine Site Costs
Pine Point: A Closer Look at Mine Site Costs Pre-concentration: • Preliminary results from X-ray Transmission (“XRT”) sorting indicate that the Pine Point mineralized material is amenable to pre-concentration. • XRT uses the density contrast between mineralization and waste rock and is a completely
Slide 31: Pine Point: Focus on Dewatering
Pine Point: Focus on Dewatering • Dewatering requirements are intimately tied to the Presqu’ile formation. Deposits that do not intersect this formation should have reduced pumping costs. Osisko Metals does not believe that Pine Point’s dewatering requirements are material. Cominco Ltd. successfully
Slide 32: Contacts
Contacts 1100, av. des Canadiens-de-Montréal Investors and General Inquiries: Suite 300 info@osiskometals.com Montreal, Qc, H3B 2S2 Tel: 514-940-0670 Fax: 514-861-1333 32