Osisko Metals Incorporated announced that drilling at Gaspé Copper will begin this week. The drill program will focus on re-evaluation of copper mineralization near the past-producing Mount Copper open pit, with Phase 1 (10,000 metres) primarily designed to evaluate extent of near-surface oxide mineralization, and a subsequent Phase 2 program (20,000 metres) for infill drilling in order to update the currently modelled in-pit resource. The company anticipates issuing the maiden, NI43-101 compliant, in-pit Inferred Mineral Resource Estimate for the Mount Copper deposit before the end of April, which will be based on historical drilling results from Noranda (until 1998), and more recently from Xstrata and Glencore Canada (2011 to 2019).

The expansion of the Mount Copper open pit was evaluated by Noranda in the 1980's but did not proceed due to the presence of the copper smelter located on the pit perimeter. Mining operations ceased in 1999 and the smelter closed in 2002. Since then, the entire mine, mill and smelter complex was dismantled and the site has been on care and maintenance.

With the smelter gone, potential expansion of the Mount Copper pit is now possible and this will be the focus of the Company's resource evaluation in the context of rising copper prices. The winter drill program at Pine Point is finishing and drilling will be suspended during spring break-up. Drilling will resume in June 2022 and remaining drilling, which will extend into winter 2023, will allow conversion of the Inferred Mineral Resources to the Measure and Indicated categories, which will be included in the 2023 feasibility study.

The site-wide hydrogeological study is near completion and results are being incorporated into the 2022 PEA Update. The study will integrate significantly lower dewatering costs and increased commodity prices. The PEA Update is now scheduled for release in mid-May.

The delay in issuing the PEA from the end of the first quarter was to fully calibrate the hydrogeological model and to further optimize the Life-of-Mine Plan. Following this will continue with trade off studies in preparation of the 2023 feasibility study. The study will also include an estimate of the further reduction in greenhouse gas emissions.

The 2020 PEA already included the reduction of energy associated to material sorting reducing the throughput of the concentrator by approximately forty percent. That combined with the use of natural gas generators to generate power that was not available on the Taltson grid. The 2022 PEA Update should have less power needs due the reduced de-watering volume estimates.