Osisko Metals Incorporated (the "Company" or "Osisko Metals") is pleased to announce that it has signed a Definitive Purchase Agreement to acquire a 100% undivided interest in the Key Anacon claims and surrounding area ("Key Anacon") from Hunter Brook Holdings Limited (the "Vendor").
Key Anacon is located within the Bathurst Mining Camp ("BMC") and is roughly 19 km due south of the town of Bathurst, New Brunswick and 16 km southeast of the former Brunswick #12 Mine. Key Anacon is comprised of 45 claim units with a total surface area of 981 hectares and hosts approximately 12 kilometres of the Brunswick Horizon, which extends onto adjacent and surrounding claims held by Osisko Metals.
Key Anacon contains two (2) significant Bathurst-type volcanogenic massive sulphide deposits. Both the Main and East Deposits are hosted within the Brunswick Horizon stratigraphy that is similar to the former Brunswick No. 12 Mine host rocks. Key Anacon's historical resources are not NI43-101 compliant, no known current mineral resource estimate has been conducted and the drill data available pre-dates current regulations and quality control standards.
The New Brunswick Ministry of Energy, Mines and Petroleum Mineral Occurrence Database reports that the Main deposit contains historical resources that total 1.87 million tonnes grading 6.93% Zn, 2.63% Pb, 0.16% Cu, and 84g/t Ag in multiple, folded lenses (Source: 2003, Economic Geology, Monograph 11). Key Anacon has been drilled from both surface and underground. Although no production is known, historical pre-production development includes a 460-metre shaft, a vent raise, eight development levels and three sub-levels. Exploration potential is considerable below the deposit at 400 metres, and along strike.
The Key Anacon East Deposit is located 1.5 km along strike to the northeast from the Main Deposit and it has been intersected by several holes. The best intersection was reported in a press release dated August 16, 1993 by Rio Algom on drill hole DDH 93-42 that intersected 19.9 metres grading 7.86% Zn, 3.58 % Pb, 0.33% Cu and 78 g/t Ag within a mineralized interval grading 3.38% Zn, 1.35% Pb, 0.75% Cu and 40.94 g/t Ag over 82.3 metres.
Key Anacon was last explored in 2001. The potential on the property as well as on the adjacent Osisko Metals claims is considered to be excellent based on the presence of these significant deposits hosted within the considerable strike length of the favorable Brunswick Horizon, with alteration and folding typically associated to BMC deposits.
Figure 1: Key Anacon claims as well as other deposits in the BMC list unclassified historical resources that are not NI43-101 compliant. The Company is not treating these historical estimates as current mineral resources and they are shown for reference purposes only.
THE KEY ANACON TRANSACTION
Pursuant to Purchase Agreement between the Vendor and Osisko Metals, the Company will acquire a 100% undivided interest in the Key Anacon Claims and will have the exclusive rights to explore and develop the Project in consideration of:
- $1 million ($750,000 payable in cash and $250,000 payable in the equivalent of Osisko Metals common shares valued at the 5-day VWAP preceding the day of the close of the transaction);
- Additional $500,000 (payable in the equivalent of Osisko Metals common shares valued at the 20-day VWAP, 24 months following the signature of a definitive agreement);
- Additional $500,000 in cash on commencement of commercial production.
The Transaction is subject to the TSX Venture Exchange approval.
Jeff Hussey, President and CEO of Osisko Metals, commented: "We are very happy to announce the purchase of the historical Key Anacon deposits as they will contribute significant resources and could become the cornerstone of Osisko Metals central concentrator multi-deposit concept in the Eastern portion of the BMC. Drilling is being planned and will consist of approximately 12,000 metres to explore the area in an attempt to increase the global historical resources and upgrade them to NI43-101 standards."
Robin Adair is a Professional Geologist registered in New Brunswick and Vice President Exploration for Osisko Metals, he is the Qualified Person responsible for the technical data reported in this news release.