Canada

Pine Point Project

Click for more information

Categories

Overview

Mine TypeOpen Pit & Underground
StagePermitting
Commodities
  • Zinc
  • Lead
Mining Method
  • Truck & Shovel / Loader
  • Longhole stoping
  • Room-and-pillar
Backfill type ... Lock
Mine Life... Lock
SnapshotOsisko Metals was recently issued with a new Land Use Permit and new Water Licence for the Confirmation and Exploration Program at the Pine Point Project site. The new permits were granted in late July 2022 and replaced previous permits.

The proposed Pine Point Project would be comprised of 55 mining sites (47 open pits and 8 underground deposits) and one central concentrator plant site.

Owners

SourceSource
CompanyInterestOwnership
Appian Capital Advisory LLP 30.3 % Indirect
Osisko Metals Inc. 69.7 % Indirect
Pine Point Mining Ltd. (operator) 100 % Direct
On April 6, 2023, Osisko Metals Incorporated announced the successful closing of its previously-announced joint venture transaction with a subsidiary of Appian Natural Resources Fund III LP, which resulted in the formation of a joint venture for the advancement of Osisko Metals' Pine Point Project. Osisko Metals and Appian now hold approximately 74.7% and 25.3%, respectively, of the share capital of Pine Point Mining Limited (which holds a 100% interest in the Pine Point Project).

 

Appian will provide 100% of the equity funding required for the project until it has acquired an ownership interest of 60% in PPML or until a Final Investment Decision has been reached. The parties will fund any additional equity capital requirements for the project pro rata.

On February 22, 2024, Osisko Metals Incorporated sold an additional 5% ownership interest in Pine Point Mining Limited to a subsidiary of Appian Natural Resources Fund III LP, a fund advised by Appian Capital Advisory LLP.

Contractors

Lock

- subscription is required.

Deposit type

  • Sediment-hosted
  • Mississippi Valley Type
  • Carbonate hosted

Summary:

The Pine Point deposits are carbonate-hosted lead-zinc sulphide deposits with aspects of Mississippi Valley-Type (“MVT”). MVT deposits and a broader class of deposits called “sediment-hosted Pb-Zn” deposits (Leach et al., 2010).

Mineralization is hosted in three distinct deposit types:

1. Prismatic Deposits–Prismatic deposits demonstrate considerable vertical continuity but with limited lateral extent and are discordant. Mineralization is coarse to medium grained. These deposit types are further divided in to normal and abnormal prismatic deposits based on their relative stratigraphic position in the sequence. They contributed greatly to the Pine Point historical production as they contained very high-grade base metal grades and thicknesses.

2. Tabular Deposits–Laterally continuous, semi-concordant mineralized zones mostly restricted to a specific carbonate horizon.

3. N204 Deposit–N204 mineralization consists of fine crystalline mineralization deposited within the porosity ofstrati-bound layersbelow the mainsequence known as the B-spongy horizon where intense dissolution resulted in the development of a fine dolomite breccia. This type of deposit has to date only been identified at N204.

Prismatic Deposits
Prismatic deposits are generally high-grade and can contain up to 50% combined Pb-Zn, depending on the amount of sulphide mineralization present. These deposits are vertically continuous for up to 60m, and laterally restricted, generally 15-50m, but can be up to 140m wide. Metal zonation is present with a galena-rich core (Pb/Pb+Zn >0.3) enveloped by a more sphalerite-rich outer zone.

Prismatic deposits generally initiate at the Pine Point/Sulphur Point Formation facies transition and extend upwards through a dolomitized stratigraphic section, including upper sequences such as the Slave Point Formation. Abnormal prismatic deposits generally initiate within the lower stratigraphic sequences and extend upward.

These types of deposit generally contain blocks of overlying and adjacent stratigraphicmaterial. Such blocks can exhibit angular and dissolution textures. Cavities and vugs are common and abundant internal sediment accumulations are observed to fill earlier open spaces. These sediments are the residues of intense hydrothermal dissolution consisting of insoluble carbonaceous debris, argillite components, and sulphide material. It is believed that these sediments are remnants of the intense hydrothermal dissolution process associated with sulphide emplacement.

Tabular Deposits
Tabular deposits develop in distinct biomicrite facies carbonate sequencesin the lower Sulphur Point Formation.They are laterally continuous,following the general carbonate reef trend. They most likely followingthe increased porosity and permeability generated by hydrothermal fluid flow along distinct ‘channels’ or fluid pathways in suitable carbonate sequences. Other suitable host lithologies,e.g. the ‘B-Spongy’,are potential exploration targets.

Tabular deposits are vertically restricted relative to Prismatic Deposits and are generally zinc-rich (Pb/Pb+Zn) <0.2 with local lead-enrichment. They are lower-grade relative to prismatic deposits due to less massive and sporadic sulphide development. Zinc and lead grades decrease outwards from the core of hydrothermal fluid pathways (channels) and distally from interpreted local ‘feeder’ structures.

N204 Deposit
A related type of mineralization is found at N204 where tabular-like mineralization occurs in a lower part of the barrier reef stratigraphy in a horizon named the “B-spongy horizon” (Cominco Ltd. terminology). Here, precipitation of fine-crystalline dolomite resulted in the preferred dissolution of macro fossil components resulting in the development of a distinct moldic porosity. Mineralization at the N204 deposit is wholly confined to this dissolution horizon.

Mineralization
Mineralization at Pine Point is relatively simple, consisting of zinc, lead and iron sulphides occurring ina dolomitized, carbonate barrier reef complex. Sulphides consist of sphalerite and galena with subordinate marcasite and pyrite. Mineralization occurs as both openspace fillings and replacement of dolomite. The following types are documented:

1. Fine replacive sphalerite. This style of mineralization is common and present in tabular deposit typesand adjacent to more pervasive mineralization. It varies from massive to disseminated replacement sphalerite. The more massive replacement mineralization allows for the development of discrete banded colloform sphalerite masses.
2. Colloform sphalerite. Colloform mineralization develops with increased dissolution of the host carbonates with marginal replacement disseminations and fine filaments. The colloform mineralization is extensive at the core of tabular deposits. Well-developed colloform sphalerite decreases away from the core of the linear tabular depositsand is also present in the prismatic deposits.
3. Finely to coarsely-crystalline, replacive and openspace filling sphalerite mineralization. Sphalerite crystals up to 12mm are recorded in clean dolomitized biomicrites. There are limited and local amounts of associated marcasite.
4. Finely to coarsely-crystalline galena. Galena crystals typically define the last paragenetic stage of the depositional process and can be locally concentrated in galena-rich areas. Typically,however, galena is present in subordinate amounts compared to sphalerite.
5. Massive sulphides. Prismatic mineralization is generally massive, consisting of 100% carbonate-replacement sulphideswith a complete grain size spectrum from microscopic to mega crystalline sphalerite and galena mineralization. Multiple fluid phases allow for re-dissolution/precipitation and the generation of internal ‘openspace’ colloform mineralization, often spectacular and unique to the Pine Point District.Complex sulphide mineralization.
6. Complex sulphide mineralization in Prismatic Deposits also consists of massive sulphide replacing polymictic carbonates consisting of multiple ‘fallen’ or collapsed blocks from the overlying strata of the upper sequence carbonates, e.g.,large blocks consisting of Slave Point Formation and indeed the replacement of internal dissolution sediments developed during the dynamic formation of the chimney-like, vertically elongate massive sulphide deposits,which define typical Prismatic Deposits. There are local galena-rich zones, typically massive to coarsely-crystalline. 7. Heterogenous massive sulphides. Predominantly sphalerite-rich massive sulphides exhibiting characteristics of both replacive massive sphalerite but with a later more coarse-crystalline andslightly higher temperature sphalerite phase overgrowth. This appears to occur in several small prismatic deposits in the eastern portion of the Main Trend.
8. High temperature sulphides. Higher temperature, finely-crystalline, crypto-colloform ‘black’ sphalerite mineralization is typical of some North Zone prismatic deposits. This style is best developed in internal grey carbonate sediment with a ‘veines bleues’ dolomite association.N204 type mineralization.
9. The N204 mineralization is fine-grained, sphalerite dominated mineralization consisting of fine-replacive and minor fine to medium open space sphalerite crystals within moldic porosity.

Reserves

Lock

- subscription is required.

Mining Methods

Lock

- subscription is required.

Comminution

Crushers and Mills

Lock

- subscription is required.

Processing

Lock

- subscription is required.

Production

CommodityProductUnitsAvg. AnnualLOM
Zinc Concentrate kt 2,978
Zinc Payable metal M lbs 3,348
Zinc Metal in concentrate M lbs 3293,951
Lead Concentrate kt 1,175
Lead Payable metal M lbs 1,625
Lead Metal in concentrate M lbs 1411,687
Zinc Equivalent Metal in concentrate M lbs 5,366

Operational metrics

Metrics
Daily processing capacity  ....  Subscribe
Plant annual capacity  ....  Subscribe
Waste tonnes, LOM  ....  Subscribe
Ore tonnes mined, LOM  ....  Subscribe
Total tonnes mined, LOM  ....  Subscribe
Tonnes processed, LOM  ....  Subscribe
* According to 2022 study.

Production Costs

CommodityUnitsAverage
Site cash costs (produced) Zinc Equivalent USD  ....  Subscribe
Total cash costs Zinc Equivalent USD  ....  Subscribe
All-in sustaining costs (AISC) Zinc Equivalent USD  ....  Subscribe
All-in costs Zinc Equivalent USD  ....  Subscribe
Assumed price Lead USD  ....  Subscribe
Assumed price Zinc USD  ....  Subscribe
* According to 2022 study / presentation.

Operating Costs

Currency2022
OP mining costs ($/t mined) CAD 3.36 *  
UG mining costs ($/t milled) CAD  ....  Subscribe
OP mining costs ($/t milled) CAD  ....  Subscribe
Processing costs ($/t milled) CAD  ....  Subscribe
G&A ($/t milled) CAD  ....  Subscribe
Total operating costs ($/t milled) CAD  ....  Subscribe
* According to 2022 study.

Project Costs

MetricsUnitsLOM Total
Pre-Production capital costs $M CAD  ......  Subscribe
Sustaining CapEx $M CAD  ......  Subscribe
Closure costs $M CAD  ......  Subscribe
Total CapEx $M CAD  ......  Subscribe
OP OpEx $M CAD  ......  Subscribe
UG OpEx $M CAD  ......  Subscribe
Processing OpEx $M CAD 575.3
Backfill costs $M CAD  ......  Subscribe
Refining and treatment costs $M CAD  ......  Subscribe
G&A costs $M CAD 380.6
Total OpEx $M CAD  ......  Subscribe
Mining Taxes $M CAD  ......  Subscribe
Income Taxes $M CAD  ......  Subscribe
Total Taxes $M CAD  ......  Subscribe
Royalty payments $M CAD  ......  Subscribe
Gross revenue (LOM) $M CAD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M CAD  ......  Subscribe
After-tax Cash Flow (LOM) $M CAD  ......  Subscribe
Pre-tax NPV @ 8% $M CAD  ......  Subscribe
After-tax NPV @ 8% $M CAD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
Pre-tax payback period, years  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Heavy Mobile Equipment

Lock

- subscription is required.

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Sep 22, 2023
....................... Subscription required ....................... Subscription required Subscription required Jul 11, 2022
....................... Subscription required ....................... Subscription required Subscription required Jul 11, 2022

EmployeesContractorsTotal WorkforceYear
...... Subscription required ...... Subscription required ...... Subscription required 2022

Aerial view:

Lock

- subscription is required.