Osisko Mining Corporation

Osisko Mining Corporation

September 23, 2009 08:00 ET

Osisko Intersects 2.16 g/t Au Over 129.5 Metres at South Barnat

MONTREAL, QUEBEC--(Marketwire - Sept. 23, 2009) - Osisko Mining Corporation ("Osisko") (TSX:OSK)(FRANKFURT:EWX) is pleased to announce partial drilling results from the Q2-Q3 2009 drill program within the model pit on the South Barnat deposit. Following the release of the South Barnat Measured and Indicated resource estimate (June 2, 2009 press release), the Company proceeded with a phase three definition drill program on deeper portions of known mineralized zones within and below the Whittle-optimized pit shell. This was accompanied by a condemnation drill program designed to test presumed barren, outer portions of the model pit for additional mineralization. Unanticipated gold mineralization was encountered in a number of locations, pointing to the potential for expansion of the in-pit resource at Barnat. All results reported below were not included in the June 2, 2009 resource estimate.

Significant new drill intersections include 2.16 g/t Au over 129.5 metres (BA08-3611), 1.23 g/t Au over 88.0 metres (BA08-3554E) and 1.11 g/t Au over 176.2 metres (BA08-3663). Highlights from new infill holes on known mineralized zones are tabled below:

Hole No. Section From (m) To (m) Length (m) Au g/t

BA09-3554E BA550E 8.8 28.0 19.2 0.79
and 161.5 249.5 88.0 1.23
and 332.0 383.5 51.5 1.64
including 368.0 369.5 1.5 13.30

BA09-3571 BA775E 290.0 320.0 30.0 1.20
and 378.5 405.6 27.1 1.18

BA09-3590 BA500E 254.5 288.0 33.5 0.84

BA09-3603 BA550E 307.5 354.0 46.5 1.87

BA09-3607 BA050E 23.0 112.3 89.3 0.90

BA09-3611 BA600E 272.5 402.0 129.5 2.16
including 334.0 340.0 6.0 7.92

BA09-3625 BA425E 7.1 122.5 115.4 0.88
and 149.5 159.9 10.4 16.5

BA09-3626 BA425E 57.2 99.0 41.8 1.47
and 136.9 145.1 8.2 3.52
and 167.5 198.3 30.8 2.42
including 195.8 196.8 1.0 12.15

BA09-3636 BA650E 269.0 321.5 52.5 1.19
and 390.5 420.5 30.0 1.16

BA09-3663 BA525E 21.0 37.0 16.0 1.30
and 103.0 279.2 176.2 1.11

Significant drill intersections from new mineralized zones located on the outer margins of the model pit include 2.72 g/t Au over 25.4 metres (BA08-3577), 0.60 g/t Au over 107.5 metres (BA08-3632) and 0.83 g/t Au over 91.5 metres (BA08-3638). Highlights from the intersections in new mineralized zones are tabled below:

Hole No. Section From (m) To (m) Length (m) Au g/t

BA09-3561 CM5800E 272.0 284.4 12.4 4.57

BA09-3565 BA325E 51.0 93.5 42.5 0.77

BA09-3577 BA550E 70.9 96.3 25.4 2.72
including 70.9 72.5 1.6 19.05

BA09-3600 BA625E 41.1 68.4 27.3 1.38

BA09-3630 BA625E 55.5 105.0 49.5 0.73

BA09-3632 BA150E 112.5 220.0 107.5 0.60
and 246.0 259.5 13.5 0.71

BA09-3633 BA775E 244.0 291.5 47.5 1.49
including 245.5 247.0 1.5 13.50

BA09-3637 BA650E 16.0 108.0 92.0 0.75

BA09-3638 BA650E 22.0 113.5 91.5 0.83

BA09-3639 BA575E 30.5 52.0 21.5 1.16

BA09-3641 BA600E 36.0 55.5 19.5 0.99

The mineralized intersections in drill holes BA09-3561 and BA09-3633 and the second intersection in drill hole BA09-3632 are below current pit model limits.

Results from this drill program on South Barnat are being integrated into a new data base along with new drill results from the Southeastern Extension of the Canadian Malartic deposit. The new data base will be used to calculate an updated global resource, from which a new reserve estimate in a merged engineered pit will be calculated for the combined Canadian Malartic and South Barnat deposits. This new reserve estimate is scheduled to be released by year end.

All NQ or HQ core assays reported above were obtained by standard 50 g fire assaying-AA finish or gravimetric finish at ALS Chemex laboratories in Val d'Or, Quebec. Reported weighted averages were calculated using a minimum of 0.50 g/t Au over successive maximum intervals of 20 metres with no upper cut-off of individual assays. Intersected drifts or lost core within mineralized intersections were incorporated as blank intervals.

Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Canadian Malartic deposit currently represents one the biggest gold reserves in Canada for a single deposit, and is still growing through ongoing drilling on new mineralized zones. Current reserves for the Canadian Malartic property are 6.28 million ounces, plus (including the Barnat deposit) a measured and indicated resource of 3.65 million ounces and an inferred resource of 0.84 million ounces. Mr. Robert Wares, P. Geo. and Executive Vice-President of Osisko, is the Qualified Person who has reviewed this news release and is responsible for the technical information reported herein, including verification of the data disclosed including the sampling, analytical and test data underlying the technical information.

Cautionary Notes Concerning Estimates of Mineral Resources

This news release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that that further work on the stated resources will lead to mineral reserves that can be mined economically.

Forward Looking Statements

Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all technical, economical and financial conditions will be met in order to put the Canadian Malartic Project into commercial production, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, access to skilled consultants, mining development and mill production personnel, results of exploration and development activities, the Corporation's limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in greater detail in the Corporation's most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. The Corporation cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Corporation's forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

Contact Information

  • Osisko Mining Corporation
    John Burzynski
    Vice-President Corporate Development
    Osisko Mining Corporation
    Sylvie Prud'homme
    Investor Relations
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