Osisko Metals Launches New Company to Explore Critical Minerals in Northern New Brunswick

Osisko Metals Inc. is set to launch a new exploration company focused on critical minerals, marking a significant step in the company’s strategic expansion. The new entity, Osisko Critical Minerals Corporation (OCMC), will take over a portfolio of mineral exploration properties located in northern New Brunswick, Canada.

According to John Burzynski, who will serve as the CEO of OCMC, the company aims to unlock the potential of these properties, which include a defined target area with an alteration footprint larger than the Gaspé Copper Project. Burzynski expressed enthusiasm about the opportunity to explore for copper and critical minerals in a region that has historically been underexplored for these resources.

The properties, comprising 2,972 mineral claim units and claims Osisko Metals has an option to acquire, cover an area of approximately 645 square kilometers. These claims are situated in the Popelogan, Victoria Arc, immediately south of the Gaspé Belt, a region known for its geological similarities to the Gaspé Copper Project. The area is characterized by Devonian porphyritic intrusions and sedimentary, felsic volcanic, and mafic volcanic host rocks, creating an environment conducive to the formation of porphyry-skarn deposits.

Historical exploration in the area has been limited, with most efforts focused on identifying high-grade skarn-style mineralization. However, the properties host multiple large-scale mineral exploration targets, including 21 porphyry intrusions that have never been evaluated for their bulk-tonnage copper potential. The NB Copper Project, one of the key assets, presents a compelling new copper exploration opportunity in a proven mining jurisdiction, accessible via paved highways and gravel roads.

The properties are part of a larger portfolio that Osisko Metals plans to retain a minority interest in following the transaction. The company’s focus will shift to advancing its flagship project, the past-producing Gaspé Copper mine located near Murdochville in Québec’s Gaspé Peninsula. The Gaspé Copper Project currently hosts current pit-constrained Measured and Indicated Mineral Resources of 1.83 billion tonnes averaging 0.32% copper equivalent (CuEq) and Inferred Mineral Resources of 239 million tonnes averaging 0.46% CuEq.

The creation of OCMC is subject to several conditions, including legal and tax structuring analyses, financial analysis, and regulatory approvals. The transaction is expected to provide shareholders of Osisko Metals with an indirect interest in OCMC, allowing the capital markets to ascribe value to the properties independently of Osisko Metals’ core assets.

While there is no certainty that the transaction will be completed, Osisko Metals remains optimistic about the potential for significant discoveries in northern New Brunswick. The company believes that the aggressive exploration program planned for OCMC could lead to the discovery of new copper deposits in the region, similar to the Gaspé Copper Project.

The NB Copper Project, with its large land package and geological setting analogous to the Gaspé Copper Project, presents a significant opportunity for bulk-tonnage copper exploration. Historical drilling has intersected multiple copper-bearing zones and skarn mineralization, but much of the potential remains untested. The project area, interpreted to be 5 kilometers by 2 kilometers, is similar in scale to the Copper Brook alteration aureole that characterizes the Gaspé Copper deposit.

In addition to the NB Copper Project, OCMC will also take over the Bathurst Mining Camp holdings, which include the Key Anacon and Gilmour South mineral resources and the Mount Fronsac deposit. These assets, while not as immediately promising as the copper targets, still hold potential for zinc and silver exploration.

The transaction, if completed, will enable Osisko Metals to focus on advancing its core assets while providing a new avenue for exploration and discovery in a region that has historically been underexplored for critical minerals. The company’s commitment to the exploration and development of critical minerals in Canada underscores its strategic vision for the future.