213 koz of Gold grading 28.1 g/t and 385 koz of Silver grading 50.8 g/t in Measured and Indicated Resources1
243 koz of Gold grading 19.6 g/t and 530 koz of Silver grading 42.8 g/t in Inferred Resources1
TRIXIE MINERAL RESOURCE ESTIMATE
- The Trixie MRE comprises five mineralized zones within the greater Trixie deposit, including T1, T2, T3, T4 and 75-85 zones over a strike length of 610 meters ("m"), a maximum width of 105 m and to a maximum depth of 295 m.
- The Trixie MRE is based on 4,467 underground chip samples, 4,780.1 m of current and verified historic drilling in 50 holes, of which 3,228.9 m of drilling in 23 holes were drilled by the Company in 2022.
- Gold mineralization is associated with high sulphidation epithermal mineralization, structurally controlled, and hosted within the quartzites. Mineralization consists of native Au, and rare Au-Ag rich telluride minerals with quartz and quartz-barite-sulphosalt stockwork veining.
Table 1: 2023 Trixie Mineral Resource Estimate (all zones) –
Classification | Tonnes (000's) | (g/t) | Contained Gold (000's oz) | (g/t) | Contained Silver (000's oz) |
Measured | 11 | 190.61 | 67 | 195.53 | 69 |
Indicated | 225 | 20.17 | 146 | 43.73 | 316 |
Measured and Indicated | 236 | 28.08 | 213 | 50.77 | 385 |
Inferred | 385 | 19.64 | 243 | 42.82 | 530 |
Notes (applicable to Tables 1, 2, and 3)
- Troy ounces ("oz"), gold ("Au"), silver ("Ag"), tonnes ("t"), grams per tonne ("g/t").
- Effective date of the Trixie MRE is
January 10, 2023 . - The Company intends to file a technical report (the "Technical Report") in respect of the Trixie MRE in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov) under
Osisko Development's issuer profile within 45 days of the date of this news release. - Each of Mr.
William Lewis P.Geo , ofMicon International Limited and Alan S J San Martin, AusIMM(CP), ofMicon International Limited (i) has reviewed and validated the Trixie MRE, (ii) is considered to be independent of the Company for purposes of Section 1.5 of NI 43-101, and (iii) is a "qualified person" for purposes of NI 43-101. - The Trixie MRE is comprised of five zones within the greater Trixie area: T1, T2, T3, T4 and 75-85. No blocks in the T3 meet the cut-off grade used for the Trixie MRE.
- The Trixie MRE disclosed in this news release were estimated using the CIM standards on mineral resources and reserves definitions, and guidelines prepared by the CIM standing committee on reserve definitions and adopted by the CIM council.
- Mineral Resources are reported when they are within potentially mineable shapes derived from a stope optimizer algorithm, assuming an underground longhole stoping mining method with stopes of 6.1 m x 6.1 m x minimum 1.5 m dimensions.
- Mineral resources are not mineral reserves and do not have demonstrated economic viability.
- Geologic modelling was completed by
Osisko Development senior production geologistCourtney Kurtz ,P.G. of Utah, USA using Leapfrog Geo software. The Trixie MRE was completed byOsisko Development Chief Resource Geologist,Daniel Downton ,P.Geo . using Datamine Studio RM Pro 1.12 software under the supervision ofWilliam Lewis andAlan San Martin ofMicon International Ltd. - The estimate is reported for an underground mining scenario and with USD assumptions. The cut-off grade of 4.85 g/t Au was calculated using a gold price of
US$1,750 per ounce, a CAD:USD exchange rate of 1.30; total mining, processing and G&A costs ofUS$226.62 per imperial ton a combined royalty of 4.5% and an average metallurgical recovery of 95%. - Average bulk density values in the mineralized domains were assigned to the T1 (2.616 T/m3), T2 (2.955 T/m3), T3 (2.638 T/m3), T4 (2.621 T/m3), and 75-85 (2.617 T/m3) domains.
- Inverse Distance Squared interpolation method was used with a parent block size of 1.2 m x 1.2 m x 1.8 m.
- The results of the Trixie MRE are presented in-situ. Calculations used metric units (metres, tonnes, g/t). The number of tonnes is rounded to the nearest thousand. Any discrepancies in the totals are due to rounding effects.
- Neither the Company nor
Micon International Limited is aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the mineral resource estimate other than disclosed in this news release.
Table 2: 2023 Trixie MRE Separated by Domain –
Domain | Category | Tonnes | Grade (Au g/t) | Contained Gold (oz) | Grade (Ag g/t) | Contained Silver (oz) |
T1 | Measured | – | – | – | – | – |
Indicated | 34,470 | 16.39 | 18,159 | 30.55 | 33,856 | |
M+I | 34,470 | 16.39 | 18,159 | 30.55 | 33,856 | |
Inferred | 134,665 | 16.59 | 71,832 | 38.51 | 166,716 | |
T2 | Measured | 10,938 | 190.61 | 67,029 | 195.53 | 68,757 |
Indicated | 6,705 | 138.30 | 29,815 | 107.95 | 23,272 | |
M+I | 17,643 | 170.73 | 96,844 | 162.24 | 92,029 | |
Inferred | 25,181 | 101.37 | 82,070 | 146.32 | 118,457 | |
T4 | Measured | – | – | – | – | – |
Indicated | 178,825 | 16.64 | 95,667 | 43.65 | 250,941 | |
M+I | 178,825 | 16.64 | 95,667 | 43.65 | 250,941 | |
Inferred | 128,038 | 9.10 | 37,460 | 21.64 | 89,063 | |
75-85 | Measured | – | – | – | – | – |
Indicated | 4,870 | 14.10 | 2,207 | 51.77 | 8,106 | |
M+I | 4,870 | 14.10 | 2,207 | 51.77 | 8,106 | |
Inferred | 96,962 | 16.58 | 51,691 | 49.89 | 155,530 | |
Total | Measured | 10,938 | 190.61 | 67,029 | 195.53 | 68,757 |
Indicated | 224,870 | 20.17 | 145,849 | 43.73 | 316,175 | |
M+I | 235,808 | 28.08 | 212,878 | 50.77 | 384,932 | |
Inferred | 384,845 | 19.64 | 243,053 | 42.82 | 529,766 |
Refer to notes described under Table 1, which are also applicable to Table 2 in their entirety.
Table 3: Trixie MRE Cut-Off Grade ("COG") Sensitivity (Base Case in Bold) –
Classification | Tonnes | COG | Grade (Au g/t) | Contained Gold (oz) | Grade (Ag g/t) | Contained Silver (oz) |
Measured + Indicated | 334,672 | 2.50 | 20.83 | 224,173 | 42.82 | 460,779 |
307,608 | 3.00 | 22.42 | 221,774 | 44.89 | 443,994 | |
282,778 | 3.50 | 24.10 | 219,084 | 46.57 | 423,392 | |
262,447 | 4.00 | 25.68 | 216,661 | 48.36 | 408,078 | |
246,598 | 4.50 | 27.05 | 214,455 | 49.84 | 395,124 | |
235,808 | 4.85 | 28.08 | 212,878 | 50.77 | 384,932 | |
233,051 | 5.00 | 28.35 | 212,436 | 51.15 | 383,279 | |
219,345 | 5.50 | 29.79 | 210,054 | 52.66 | 371,399 | |
209,391 | 6.00 | 30.92 | 208,184 | 53.92 | 363,007 | |
198,274 | 6.50 | 32.30 | 205,914 | 55.54 | 354,071 | |
189,341 | 7.00 | 33.50 | 203,919 | 56.92 | 346,468 | |
181,989 | 7.50 | 34.55 | 202,159 | 57.85 | 338,499 | |
Inferred | 553,279 | 2.50 | 14.75 | 262,371 | 38.22 | 679,912 |
493,696 | 3.00 | 16.19 | 256,945 | 39.98 | 634,610 | |
450,545 | 3.50 | 17.42 | 252,276 | 41.35 | 598,941 | |
420,273 | 4.00 | 18.37 | 248,242 | 42.24 | 570,717 | |
397,456 | 4.50 | 19.18 | 245,047 | 42.52 | 543,387 | |
384,845 | 4.85 | 19.64 | 243,053 | 42.82 | 529,766 | |
379,046 | 5.00 | 19.87 | 242,188 | 43.02 | 524,210 | |
361,726 | 5.50 | 20.56 | 239,154 | 43.98 | 511,444 | |
347,256 | 6.00 | 21.18 | 236,435 | 44.95 | 501,843 | |
329,274 | 6.50 | 21.97 | 232,593 | 46.19 | 488,985 | |
313,378 | 7.00 | 22.74 | 229,161 | 47.45 | 478,092 | |
296,008 | 7.50 | 23.63 | 224,925 | 48.87 | 465,129 |
Note: Micon has reviewed the COG used in the sensitivity analysis relating to the Trixie MRE and is of the opinion that the individual cut-off grades used in the sensitivity analysis meet the test of reasonable prospects of economic extraction.
Table 4: Trixie MRE Cut-off Grade Calculation Breakdown
PARAMETERS | VALUES | |
G&A ($/ST) | ||
Haulage ($/ST) | ||
Milling ($/ST) | ||
Total Refining Cost | ||
Gold Price | ||
Royalty (Combination) | 4.50% | |
Mill Recovery | 95.0% | |
Cut-off Grade (COG) | 4.85 |
TRIXIE TEST MINE OPERATIONAL ACTIVITIES
- Approximately 50% of the 1,390 meter (4,550 ft.) Trixie portal underground decline ramp has been completed to date. On track to reach the 625 level by the second quarter of 2023.
- The decline will significantly improve access to the underground workings, expand potential underground exploration target areas and provide sufficient flexibility to complete additional programs targeting mineral resource growth potential beyond the 625 level.
- Excavation of deeper underground levels is anticipated to continue in the second half of 2023 and beyond, to facilitate deployment of mechanized mining equipment and to increase the overall potential mining rate capacity of the operation currently constrained by a single shaft.
- Target to ramp up processing capacity to 500 short tons per day by the end of 2023.
- To achieve higher operating rates, certain existing processing infrastructure at the Burgin mill will need to be upgraded and/or amended, including the construction of a new mill facility to support higher processing rates.
- During this time, it is anticipated that VAT leach processing and certain small scale underground test mining activities will be temporarily suspended while the Company focuses its efforts on fast tracking the mill expansion, accelerating decline development, and refurbishing existing surface and underground infrastructure in preparation for higher operating rates.
- Underground activities will continue to focus on exploration development along the 625 level to the Sioux-Ajax Fault, following identified mineralized zones, and on building a stockpile of mineralized material to provide operational flexibility during the commissioning phase of the upgraded mill facility.
- The Company expects to advance rehabilitation of the Trixie shaft and the 750 level to allow for further underground sampling and diamond drilling. There are currently two underground diamond drills operating on the 625 level.
Qualified Persons
The scientific and technical information contained in this news release has been reviewed and approved by
The independent QPs for the Trixie MRE, as defined by NI 43-101, are
Quality Assurance (QA) – Quality Control (QC)
True width determination is estimated to be approximately 0.3 m to 2.4 m (1 to 8 ft.) wide for the T2 structure and approximately 3 m to 25 m (10 to 80 ft.) for the T4 mineralized stockwork zone located in the hanging wall of the T2 structure. All underground face samples are collected by TCM geologists from each of the active mining faces, with samples transported by the geologists from Trixie to the on-site TCM laboratory located at the Burgin administrative complex. Underground samples are dried, crushed to <10 mm and a 250 g split is taken. The split is pulverized, and a 30 g Fire Assay with gravimetric finish is completed to determine gold and silver grades, reported in oz/short ton and g/t.
The TCM Burgin laboratory is not a certified analytical laboratory, however, the facility is managed by a qualified Laboratory Manager with annual auditing by technical staff. Inter-laboratory check assays using
All drill core and exploration samples are dispatched to
All sample preparation is completed by ALS, including crushing and pulverizing (Prep31) of samples. Analytical assays include gold and silver by fire assay of 50 g sample with AAS finish (Au-AA26), over limits by gravimetric analysis (Au-Grav22). Multi element analysis is by four acid digest (ME-MS61). The pulps are returned to
About Osisko Development Corp.
For further information, please contact
Chairman and CEO | Director, Investor Relations |
Email: sroosen@osiskodev.com | Email: prabenok@osiskodev.com |
Tel: +1 (514) 940-0685 | Tel: +1 (437) 423-3644 |
CAUTIONARY STATEMENTS
Cautionary Statement Regarding Estimates of Mineral Resources
This news release uses the terms measured, indicated and inferred mineral resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. The mineral resource estimate disclosed in this news release may be materially affected by geology, environmental, permitting, legal, title, socio-political, marketing or other relevant issues. The mineral resource estimate is classified in accordance with the
Cautionary Statement Regarding Test Mining Without Feasibility Study
The Company cautions that the decision to commence small-scale underground mining activities and batch vat leaching at the Trixie test mine has been made without the benefit of a feasibility study, or reported mineral resources or mineral reserves, demonstrating economic and technical viability, and, as a result there may be increased uncertainty of achieving any particular level of recovery of material or the cost of such recovery. The Company cautions that historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will continue as anticipated or at all or that anticipated production costs will be achieved. The failure to continue production may have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs may have a material adverse impact on the Company's cash flow and potential profitability. In continuing current operations at Trixie after closing, the Company will not be basing its decision to continue such operations on a feasibility study, or reported mineral resources or mineral reserves demonstrating economic and technical viability. The Company cautions that mining at Trixie could be suspended at any time.
Cautionary Statement to U.S. Investors
The Company is subject to the reporting requirements of the applicable Canadian securities laws, and as a result reports information regarding mineral properties, mineralization and estimates of mineral reserves and mineral resources, including the information in the Tintic Technical Report and this news release, in accordance with Canadian reporting requirements, which are governed by NI 43-101. As such, such information concerning mineral properties, mineralization and estimates of mineral reserves and mineral resources, including the information in the Tintic Technical Report and this news release, is not comparable to similar information made public by
FORWARD LOOKING STATEMENTS
Certain statements contained in this news release may be deemed "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. These forward‐looking statements, by their nature, require
Neither the
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1 Refer to Table 1 and 2 for a breakdown by resource category
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