Osisko Metals Reports Positive Drilling Results at Gaspé Copper Project
Osisko Metals (TSX: OM) has announced that initial drilling results from its Gaspé copper project in eastern Quebec have exceeded expectations, leading to a notable increase in share price.
According to CEO Robert Wares, all five drilling holes from the past three months encountered significant disseminated mineralization within the defined area of the company’s 2024 resource estimate. Furthermore, the new mineralization detected occurs at depths below the existing 2024 estimate.
Osisko’s strategy involves expanding the resource at the Gaspé copper system while exploring the potential to reopen the former Noranda mine located in Murdochville, approximately 825 km northeast of Montreal. The company is targeting permits and construction to begin by the early 2030s, with initial capital expenditures estimated at about C$1.8 billion.
National Bank Financial mining analyst Rabi Nizami commented on the developments, stating that today’s results support two objectives for the 2025 drill campaign: converting the large-scale resource from inferred to measured and indicated categories, and expanding resources at depth and southward. He noted an average grade of 0.4% copper-equivalent over 109 meters based on all mineralized intercepts released on Monday.
Nizami remarked that the project is positioned as “a re-emerging Canadian copper asset with scale, infrastructure, and a clear path to redevelopment.” Following this news, Osisko’s share price rose 6.6% to C$0.41, resulting in a market capitalization of approximately C$247 million.
2024 Resource Model
Osisko reported that four out of the five holes were drilled within the limits of the 2024 resource model. This estimate, publicly released in November, detailed indicated pit-constrained resources of 824 million tonnes grading 0.27% copper, 0.015% molybdenum, and 1.74 grams per tonne silver, alongside inferred resources of 670 million tonnes grading 0.3% copper, 0.02% molybdenum, and 1.37 grams silver.
Drill hole 30-1059 showed 300 meters grading 0.39% copper and 3.17 grams silver from just 8 meters downhole, situated within the 2024 resource model where limited historical data had been available. Additionally, hole 30-1060 encountered 220.5 meters grading 0.29% copper and 2.09 grams silver, along with 211 meters grading 0.42% copper and 2.27 grams silver at depths below the 2024 model, extending mineralization down to 598 meters.
Another hole, 30-0947, which was previously un-assayed, reported five notable intersections, including 82 meters grading 0.31% copper and 2.55 grams silver from a depth of 229 meters. This discovery suggests that the deposit is open to further exploration to the south.
All drilling was conducted sub-vertically through the Gaspé copper altered calcareous stratigraphy, which dips 20 to 25 degrees to the north.
Fully Funded Drilling Campaign
Osisko’s drilling campaign, which commenced in February, is fully funded. CEO Wares expressed optimism about the 2025 drill program, anticipating a steady stream of results from their 110,000-meter drilling initiative as they confirm and aim to expand the existing copper resource.
In July 2023, Osisko attained full interest in the Gaspé project from Glencore (LSE: GLEN). Nizami noted that results from within the pit shell are expected to improve drill spacing and assist in reducing strip ratios while also upgrading resources ahead of economic evaluations. He emphasized that the potential for resource extension below and to the south indicates significant opportunities for expansion through the ongoing large-scale drilling efforts.
