Osisko Mining Corporation

Osisko Mining Corporation

August 11, 2008 09:01 ET

Osisko Intersects 93 Metres Averaging 2.03 g/t Gold at Barnat

MONTREAL, QUEBEC--(Marketwire - Aug. 11, 2008) - Osisko Mining Corp. (TSX:OSK)(FRANKFURT:EWX) is pleased to announce new results from the definition drill program currently under way at South Barnat, a separate gold mineralized zone located approximately 1200 metres northeast of the center of the Canadian Malartic deposit. Significant new results include 2.03 g/t Au over 93.6 metres (BA08-3033) and 1.87 g/t Au over 140.5 metres (BA08-3040). Higher grade intercepts included 13.2 g/t Au over 13.0 metres in hole BA08-3032 and 5.54 g/t Au over 20.7 metres in hole BA08-3042. Results from eight new holes are tabled below:

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

BA08-3029 400E 12.0 36.0 24.0 1.16
And 94.5 110.0 15.5 1.64
BA08-3032 650E 11.0 24.0 13.0 13.2
including 17.0 18.5 1.5 80.00
BA08-3033 600E 39.0 59.9 20.9 3.53
including 55.5 57.0 1.5 36.6
And 83.0 176.6 93.6 2.03
BA08-3034B 600E 25.0 70.5 45.5 1.99
And 141.9 196.5 54.6 2.50
BA08-3037 600E 23.5 37.4 13.9 3.08
BA08-3038A 600E 11.4 52.8 41.4 1.82
BA08-3040 550E 27.0 56.5 29.5 2.76
And 131.0 204.0 73.0 1.32
And 246.0 386.5 140.5 1.87
including 333.0 339.5 6.5 10.81
BA08-3042 200E 67.0 87.7 20.7 5.54
including 67.0 68.5 1.5 37.3

The definition drill program is focused on an 850 metre-long grid oriented northwest-southeast with drill sections spaced 50 metres apart. All holes on this grid are inclined 40 to 75 degrees to the northeast or southwest. True widths of the mineralized intersections reported above are 40 to 70 percent of the drilled intersections. Drill holes BA08-3034B, BA08-3037, BA08-3038A and BA08-30342 intersected underground mine workings that truncated mineralized intercepts. Assay results from holes BA08-3035, -3036, -3039, -3041 and further holes at South Barnat are pending.

The new drill intersections and compilation of previous work suggest that the minimum strike length of the South Barnat Zone is 775 metres with a true width between 20 and 100 metres. The mineralized zone is open to the northwest and southeast, and extends to a minimum depth of 250 metres. Mineralization in the South Barnat Zone is located to the north and south of the old Barnat and East Malartic mine workings, largely along the southern edge of the Cadillac fault.

The gold mineralization comprises multiple subzones hosted both in silicified greywackes of the Pontiac Group south of the fault contact and in schistose, carbonatized and biotitic ultramafic rocks north of the fault contact. Porphyry dykes on both sides of the fault contain disseminated mineralization as well as late quartz veins containing visible gold. Gold mineralization in the South Barnat Zone likely extends to the east along the north and south walls of the past-producing East Malartic mine.

All NQ 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 Corp. is currently evaluating the Canadian Malartic gold deposit and adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Company is well-funded with approximately $155 million on hand and is carrying out an aggressive definition drilling and exploration campaign.

An updated NI 43-101 compliant, measured and indicated resource estimate on the main Canadian Malartic gold deposit is scheduled for release in Q3 2008. This updated resource estimate will not include the South Barnat Zone nor any other mineralized zone located outside the main deposit that is currently being evaluated by Osisko.

Mr. Robert Wares, P. Geo. and Executive Vice-President of Osisko, is the Qualified Person responsible for the technical information reported in this news release.

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
    Daniel Boase
    Investor Relations
    Toll Free: 1-866-580-8891