- Osisko Metals Inc (TSXV:OM) is continuing to develop the Pine Point Project in the Northern Territories, despite challenges caused by the COVID-19 pandemic
- The company’s team is currently processing the proposed lead and zinc mine’s Preliminary Economic Assessment from home, due to self-isolation guidelines
- Due to provincial pandemic mitigation measures, the site was placed on care and maintenance after the company finished its winter drill program
- Despite zinc prices hitting a four-year low, the company remains committed to progressing the project once the restrictions are lifted
- Osisko Metals Inc (OM) is up 1.82 per cent, with shares trading at C$2.79 and a market cap of $809.2 million
Osisko Metals Inc (TSXV:OM) is continuing to develop the Pine Point Project in the Northern Territories, despite challenges presented by the COVID-19 pandemic.
The proposed lead-zinc mine is still in its developmental phase. The company assured shareholders that the site’s Preliminary Economic Assessment remains in progress.
Osisko completed its winter drill program at Pine Point before the spring breakup. As a result, the company’s team has been able to process the results and progress the assessment from self-isolation.
However, Osisko did state that pandemic-related lockdown measures require the site to be on care and maintenance for the foreseeable future.
Furthermore, the feasibility of the site has been impacted in the short-term by a recent slump in zinc prices, which is currently at a four-year low.
Base metals in general have been performing poorly over the past few months, as global industries dip, due to the ongoing pandemic. This has stripped demand back for a number of resources, zinc in particular.
Robert Wares, Executive Chairman and CEO of Osisko Metals, believes that despite the ongoing industry strife, now is the right time for the project.
“Current market conditions have temporarily reduced demand for base metals, but weak spot markets will result in further deterioration of the zinc supply chain in the longer term through new mine closures and suspended development projects.
“We believe that Osisko Metals and the Pine Point project are best positioned to leverage this future opportunity in the zinc markets,” he said.
Toward this end, Robert went on to say that his team is still planning to develop the site in 2020, once the current operational restrictions are lifted.
Osisko Metals Inc (OM) is up 1.82 per cent, with shares trading for C$2.79 at 9:40am EST.