O3 Mining Provides Update on Pre-Feasibility Study for Marban Engineering

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The Marban project is at the heart of the Malartic gold mining camp. It covers 7,525 hectares and is located 12 kilometers from the Canadian Malartic mine (owned equally by Agnico Eagle Mines Limited and Yamana Gold Inc.). Marban’s activity in 2022 focused on Marban Engineering and work towards the completion of EPS and future economic studies.

Highlights of PHC Progress

  • A trade-off study was completed on mine/mill throughput, indicating a 50% increase over the Preliminary Economic Assessment (“PEA”) estimate of 4 Mt per year to 6 Mt per year for factory
  • Geotechnical and geomechanical testing completed
  • Ore Processing and Metallurgical Testing Program Completed
  • Environmental baseline studies are underway and dialogue has been initiated with First Nations communities, host communities around the project and government officials from all levels of government

Mining

  • Improved mine sequencing to limit peak mining rate increase to 15% with mill feed rate increased by 50% and peak stockpiles reduced to below 2 Mt from 12 Mt at AEP
  • Productivity improvements with; increased truck size to 150 tonnes from 100 tonnes in PEA and increased bench size from 5 meters to 10 meters
  • The mineral resource estimate (“MRE”) dated March 1, 2022 (See press release March 1, 2022) will be used as a resource base for the PFS with the results of metallurgical testing completed and reported
  • Additional work to be completed includes:
    • Mine sequencing and stockpile design
    • Detailed capital cost of mine and cost of operation

Geotechnical, geomechanical and hydrogeological programs

  • Geotechnical and geomechanical testing was completed in Q2; interpretation in progress
  • Hydrogeological modeling is complete

Mineral processing
and tailings management

  • The metallurgical test program is completed
  • The recovery CAPEX trade-off study for the design of the grinding and leaching circuits has been completed. A reduction in the target grind size from 100 microns to 85 microns and an optimized leach-CIP circuit will be incorporated into the mill design. Combined with the improved test program results and the inclusion of solution losses, the recovery for PFS is: 94.9% for Marban and 91.9% for Norlartic.
  • The tailings management trade-off study has been completed and an improved conventional tailings management scenario has been selected. This scenario combines a smaller tailings management facility and an in-pit tailings deposition allowing for a reduced project footprint.

Table 1: Recoveries calculated by PFS (Gold)

Pits

Leach
Extraction

Soluble and
other losses

Net recovery

Marban and Kierens

95.4%

0.5%

94.9%

Norlartic

(12.084 * At
top note
(g/t) + 80.2)%

0.5%

Average of 91.9%
based on preliminaries
mine plan1


Note (1): Final recoveries will be confirmed once the final mine plan is completed

Basic Environmental Studies and Community Relations

O3 Mining has advanced baseline environmental studies as reported in the 2021 ESG Report (See press release April 4, 2022), as well as initiated a dialogue with the First Nations communities, the government representatives of the three levels: municipal, provincial and federal, the host communities around the project and the other stakeholders concerned. O3 remains committed to the responsible development of its projects by integrating a holistic approach to sustainability to generate value for all stakeholders and address environmental concerns.

Additionally, O3 Mining has taken additional steps towards the social acceptability of the project. The company intends to implement a participatory approach and has met with citizens located near the project to obtain their feedback in order to determine the most appropriate and effective mechanism for exchange through continued discussions (See press release May 25, 2022).

Marban Engineering 2022

The Company will continue to progress the Marban Engineering project to production by completing the PFS by Q3 2022 as planned. O3 Mining aims to become a leading gold producer and bring the Marban project into production by 2026. In 2022, 18,000 meters were drilled on Marban Engineering, with a complement 40,000 meters planned until the end of the year. Drilling will focus on infill and expansion drilling, as well as exploration drilling in the Marban Fold area.

Figure 1: Map of Marban properties

Qualified persons

The scientific and technical content of this press release has been reviewed, prepared and approved by Mr. Sébastien Vigneau, P. Geo (OGQ #993), Principal Geologist of the Company, Mr. Rob RaponiP.Eng, Process and Infrastructure of Ausenco, and Mr. Carl Michaud. Messrs. Raponi, Michaud and Vigneau are “qualified persons” as defined by Regulation 43-101 respecting disclosure of mining projects (“NI 43-101”).

About O3 Mining Inc.

O3 Mining Inc., an Osisko Group company, is a gold explorer and mining developer on track to produce from its high-potential gold camps in Quebec, Canada. O3 Mining benefits from the support, previous successes in mine construction and expertise of the Osisko team as it grows to become a gold producer with several multi-million ounce deposits in Quebec.

O3 Mining is well capitalized and holds a 100% interest in all of its properties (66,000 hectares) in Quebec. O3 Mining trades on the TSX Venture Exchange (TSXV: OIII) and OTC markets (OTCQX: OIIIF). The Company is committed to delivering superior returns to its shareholders and long-term benefits to its stakeholders. Further information can be found on our website at https://o3mining.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. No stock exchange, securities commission or other regulatory authority has approved or disapproved of the information contained herein.

SOURCE O3 Mining Inc.

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