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Osprey Gold Development Ltd
Symbol C : OS
Shares Issued 47,190,832
Close 2019-05-21 C$ 0.06
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Osprey Gold plans drilling at Goldenville, Caribou

2019-05-21 10:54 ET - News Release

Mr. Cooper Quinn reports


Osprey Gold Development Ltd. has provided an update on continuing exploration at its five historically producing gold projects in Nova Scotia, Canada.

The company holds the right to acquire a 100-per-cent interest in all of its projects and is focused on exploring for disseminated mineralization within the host sediments, around historically mined high-grade veins, similar to the style of mineralization found at the deposits making up Atlantic Gold's Moose River consolidated project.

Based on Osprey's recent and previous work, three key target areas have emerged as priorities for immediate follow-up drill testing. Each of these past-producing projects holds the potential to host significant mineralization and is integral to the consolidated district opportunity.

Drilling is currently planned for:

  • The Goldenville zone (Goldenville project) is Osprey's most advanced project and Nova Scotia's largest historic gold producer, with a current National Instrument 43-101 inferred resource of 2.8 million tonnes at 3.2 grams per tonne gold for 288,000 ounces of gold (2.8 million tonnes at 4.96 grams per tonne gold for 447,000 ounces of gold uncapped). The deposit is open to the east and northwest, and significant infill opportunities exist on the south limb.
  • The Mitchell Lake zone (Goldenville project) is located approximately 3.5 kilometres west of the Goldenville resource area, where significant mineralization was encountered in Osprey's previous drill program. Highlighted results include hole MIT97-01, which intersected a broad zone of gold mineralization: 30.50 metres of 0.7 gram per tonne gold, including 8.10 m of 1.10 grams per tonne gold as well as 9.4 m of 1.02 grams per tonne gold. MIT97-02 intersected 20.2 metres of 1.33 grams per tonne.
  • The Elk zone (Caribou project) is located eight kilometres north of Atlantic Gold's Touquoy mine and the Moose River consolidated mill site. The Elk zone is completely surrounded by Atlantic Gold claimholdings;

All three of these target areas are easily accessible via existing roads and drill contract discussions are under way.

"We're pleased to see the hard work of our neighbours, Atlantic Gold, validated and congratulate their management team on the recent $802-million takeover offer by St. Barbara," commented president Cooper Quinn. "Importantly, the recently announced proposed transaction presents a 'proof of concept' for open-pit gold mining in Nova Scotia and the style of mineralization being explored and expanded within Osprey's current portfolio of projects. Looking at historic mining districts in favourable jurisdictions with extensive mineralization endowments, coupled with modern exploration tools, has proven time and again to be a potential path to successful mining operations. Moose River consolidated is showing that this thesis can be successful in Nova Scotia, and Osprey is committed to advancing multiple similar assets in the region."

Upon inception in 2017, Osprey utilized local expertise to select a highly prospective portfolio of property assets that combine: high-grade gold vein systems; historic production; and exploration potential for multiple styles of near-surface mineralization around existing infrastructure. Several of these projects are situated within the same geological environment as Atlantic Gold's Moose River consolidated project. These projects have been advanced by Osprey through a series of work programs comprising surface sampling and mapping, geophysical surveying and diamond drilling. Evaluation and interpretation of all available datasets are being used to define a drill plan for the next phase of drilling to test the host sediments surrounding high-grade veins on several priority targets within the company's portfolio.

The Goldenville property

Osprey's most advanced project, Goldenville, was Nova Scotia's largest historic gold producer and is located approximately three km by paved highway from the town of Sherbrooke, N.S.

Goldenville hosts a current NI 43-101 inferred resource of 2.8 million tonnes at 3.20 grams per tonne gold for 288,000 ounces of gold (2.8 million tonnes at 4.96 grams per tonne gold for 447,000 ounces of gold uncapped). Since this resource was completed by Osprey, the company has drilled an additional 3,044 metres on the project, including three holes approximately 3.5 km to the west of the resource at the property's Mitchell Lake zone, where significant mineralization was discovered, including hole MIT17-01, which intersected a broad zone of gold mineralization: 30.5 m of 0.7 gram per tonne gold, including eight m of 1.1 grams per tonne gold and 9.40 m of 1.02 grams per tonne gold. The Mitchell Lake area is identified by the company as a priority exploration area for additional work and follow-up drilling in 2019 because of the broader gold intercepts and lack of historic drilling that left large sections of untested potential.

The Caribou property

Caribou is strategically located eight km north of Atlantic Gold's Touquoy mine and the Moose River consolidated mill site, and completely surrounded by Atlantic Gold claimholdings.

Historic reports indicate approximately 108,250 ounces of gold production occurred on the property at an average mined grade of approximately 13 grams per tonne, with local areas of 68 grams per tonne, according to records.

Osprey has identified several targets at Caribou, including surface mineralization at the Elk zone similar in grade to Atlantic Gold drill intercepts and mill head grade. Other priority targets for the company are the distinctive zones of stockwork veining hosted within the anticline, such as the B/C zone. These contain high-grade gold in zones broader than the stratabound veins normally seen in the terrane, and historic drill results include 11.2 metres grading 10.86 grams per tonne gold in hole CM-98-01 as well as 9.8 m grading 12.2 grams per tonne gold in hole SB-88-11. While the scale of the stockwork zones is currently unknown, the grade/thickness combination could allow for more cost-efficient underground mining. Visit the Caribou project page at the company's website for a location map and full project details.

A historical technical report prepared for Scorpio Gold Corp. by Guy Mac Gillivray, PGeo, of W.G. Shaw and Associates Ltd. and dated Oct. 8, 2008, provides an inferred historic resource of 94,763 ounces of gold in 350,305 tonnes grading 8.81 grams per tonne gold (uncut). Using a grade cap for gold of 47.0 grams per tonne, the historical estimate for the Caribou gold property is 350,305 tonnes grading 5.83 grams per tonne gold, or 67,425 ounces of gold. The reader is cautioned that a qualified person has not done sufficient work to classify this historical estimate as current resources and Osprey is not treating this historical estimate as a current mineral resource. While this estimate was prepared in accordance with NI 43-101 and the "Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves Definition Guidelines," in effect at the time, there is no guarantee that it would be consistent with current standards and it should not be regarded as consistent with current standards. The historical estimate is relevant to obtain a reference to mineral potential present on the property. The company has not undertaken any verification of the historical data upon which the historical estimates are based on.

About Osprey Gold Development Ltd.

Osprey is focused on exploring five historically producing gold properties in Nova Scotia, Canada. Osprey has the option to earn 100 per cent (subject to certain royalties) in all five properties, including the Goldenville gold project, Nova Scotia's largest historic gold producer. All five properties in Osprey's current portfolio have a history of high-grade gold production. A copy of the company's technical report titled, "Technical Report on the Goldenville Property, Guysborough County, Nova Scotia Canada," and prepared by David G. Thomas, MSc, PGeo, and Neil Pettigrew, MSc, PGeo, is available under the company's profile on SEDAR.

Perry MacKinnon, PGeo, vice-president of exploration of Osprey, is a qualified person under NI 43-101. Mr. MacKinnon has reviewed and approved the technical content of this release.

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