- One of the largest potential gold resources in North America that is 100% held by a junior mining company
- A near-surface gold deposit amenable to open pit mining with a potential of 3 to 4 million ounces.[1]
- Two drills currently executing a two-phase 27,000-metre drill program.
- Cash position of $6.1M as of January 2006.
- A rare investment opportunity in an extremely undervalued stock relative to its peer group
- Recent trading range $1.10 - $1.20
Osisko’s talented and innovative team has discovered what is turning out to be a new geological model with impressive gold potential on its 100% owned Canadian Malartic property, located in the Abitibi Gold Belt, Quebec, Canada. The process began after acquisition in late 2004 with an analysis of historical exploration data from Lac Minerals Ltd. and the past producing Canadian Malartic underground mine. The work took into account the historical database of over 5,000 surface and underground drill holes. Osisko began its own drilling in early 2005, completing a 32-hole program (7,400 metres) by November 2005.
Using this mix of historical data and information generated by the new work, Osisko’s team modeled the gold deposit within the framework of an open pit, bulk-tonnage operation and believes that there is strong potential for 3.2 to 4.3 million ounces of gold at the Canadian Malartic site[1].
Geological modeling of the deposit (along vertical sections spaced 60 metres apart) indicates that the mineralized system is at least 1,200 metres long by 350 metres wide, and a potential tonnage of approximately 100 million metric tonnes[1] has been estimated¹. All 32 holes drilled by Osisko have so far shown a weighted average grade of 1.32 g/t Au across the deposit.
Of significance is that the new drilling by Osisko is also showing that the mineralized system remains open to the west, east and to the south, as well as at depth. Surface reconnaissance programs in 2005 have also turned up two new zones of gold mineralization located near the main deposit.
The location of the project in Malartic, Quebec, has unique advantages to mining, including:
- One of the best overall natural resource jurisdictions in the world;
- One of the lowest mining taxation rates in the world;
- Location near an existing town with a long and strongly supportive history of mining;
- Excellent access: the deposit is situated immediately south of Highway 117 that links Val d’Or to Rouyn-Noranda;
- An existing mill 2 Km from the site;
- An established power grid and substation servicing nearby mill;
- Quebec provides one of lowest cost hydroelectric rates in the world.
Two private placements completed in December 2005 raised approximately $4.6 million. The proceeds will finance the Phase Three and Four definition drill programs (a total of 27,000 meters) in an effort to provide, by spring 2006, a calculated inferred resource under standards of National Instrument 43-101.
A 40,000-metre drill program is expected to be completed by the end of 2006 that will provide data for a NI43-101 indicated resource by early 2007.
From its initial examination, the crucible-like shape of the disseminated gold deposit appears to be very amenable to open-pit mining. Scoping studies and pre-feasibility work are scheduled to start in parallel with the ongoing drilling programs and initial inferred resource work planned for 2006.
Other Osisko properties are: Launay, Quebec (another porphyry-gold target near Canadian Malartic), Payne Bay (Nickel – Copper), Quebec and Castelo dos Sonhos (Gold), Brazil.
For more information please contact:
Daniel Boase, Investor Relations
Tel. (416) 742-5600
Toll Free: 1-866-580-8891
info@firstcanadiancapital.com
Robert Wares, President (QP)
Sean Roosen, Chief Operating Officer
John Burzynski, Vice-President, Exploration (QP)
Tel. (514) 735-7131
Fax (514) 735-9224
Email: info@osisko.com
Web: www.osisko.com
[1] The above-quoted figures are reported as an exploration target, based on reasonable assumptions made from compiled data. These figures should not be construed to reflect a calculated resource (inferred, indicated or measured) under standards of National Instrument 43-101 The potential quantities and grades reported above are conceptual in nature and there has been insufficient work to date to define
a NI 43-101 compliant resource. Furthermore, it is uncertain if additional exploration will result in discovery of an economic mineral resource on the property.