Osisko Mining Corporation

Osisko Mining Corporation

May 16, 2006 08:45 ET

Osisko Releases Final Phase Three Results at Canadian Malartic

MONTREAL, QUEBEC--(CCNMatthews - May 16, 2006) - Osisko Exploration Ltd. (TSX VENTURE:OSK)(Deutsche Boerse:EWX) is pleased to announce final results from Phase Three drilling on its 100%-owned Canadian Malartic gold property, as well as initial results from the Phase Four program. The Phase Three drill program was focused on systematically drilling the western end of the main deposit between lines 3444E and 3850E. This phase was completed with hole CM06-728 (53 holes totaling 14,700 metres). The Phase Four program, well under way, is designed to grid drill the eastern portion of the deposit between lines 4155E and 4520E

The latest results have again produced significant mineralized intercepts, including 40.5m averaging 2.51 g/t Au (CM06-721) and 90.0m averaging 1.47 g/t Au (CM06-728), with local higher grade intercepts including 13.7 g/t Au over 3.0m (CM06-734). Results from ten new drill holes are tabled below (drill holes CM06-722 and -723 were previously reported and were included for continuity; CM06-723 has been restated as a result of processing of additional assays):

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

CM06-721 3790 E 135.0 162.0 27.0 0.56
and 194.4 215.6 21.2 0.60
and 237.5 310.5 74.5 1.66
including 243.0 283.5 40.5 2.51
CM06-722 3730 E 223.5 360.0 136.5 1.45
CM06-723 3790 E 235.5 281.9 46.4 1.44
CM06-725 3730 E 187.8 228.3 40.5 1.44
and 253.8 267.3 13.5 0.77
and 297.3 304.8 7.5 3.11
CM05-728 3850E 109.8 141.3 31.5 1.39
and 178.8 268.8 90.0 1.47
CM06-729 3910 E 69.3 125.9 56.6 1.05
CM06-730 4460 E 35.5 101.7 66.2 1.49
CM06-731 4520 E 92.0 257.0 165.0 1.20
CM06-732 4520 E 141.5 253.0 111.5 0.70
CM06-733 4520 E 7.1 35.3 28.2 0.90
and 97.8 133.8 36.0 0.96
and 180.3 285.3 105.0 0.78
CM06-734 4460 E 16.8 115.8 99.0 0.93
including 69.3 72.3 3.0 13.7
and 204.3 268.8 64.5 0.81
CM06-735 4400 E 12.0 23.3 11.3 1.01
and 118.0 185.0 67.0 0.77
and 227.0 313.5 86.5 0.98

Drill holes CM06-724, -726 and -727 all intersected underground mine workings and failed to reach the targeted mineralized zones.

Results from drill holes CM06-721, CM06-732 through to CM06-735 are particularly significant since they all extended mineralization to the south of know gold zones, up to 60 m south in the case of hole CM06-734 on section 4460E.

The Phase Five program (10,000 metres planned) will begin next week. The latter will focus on the central part of the deposit between sections 3850E and 4155E, occurring under the southern portion of the town of Malartic. Four drill rigs will be operating on the program until the end of 2006, and drills operating in town will be work on 12 hour daily shifts rather than 24 hour shifts.

Sean Roosen, President of Osisko states: "The Phase Three program was a great success and results surpassed our expectations. We are well on our way to creating a company-making gold resource at Canadian Malartic. The latest drill results have once again shown that we have not yet defined the southern limits of this system, not to mention that the recently announced Sladen extension has added at least 420 metres of strike length to this deposit. As the grid drilling program progresses, the expanding nature of the deposit comes as great news that continues to add ounces to our future inventory."

The Canadian Malartic property hosts potential for a significant gold resource (see the Company's September 8, 2005 press release) and is located near extensive existing infrastructure. Osisko is evaluating the property for a possible large-scale open pit, bulk-tonnage gold mining operation. The current resource definition program will include the calculation of an NI 43-101 compliant, inferred gold resource scheduled to be released in 2006.

All core assays were done by standard 50 g fire assaying-AA finish at ALS Chemex laboratories in Val d'Or, Quebec. Reported weighted averages were calculated using a minimum of 0.40 g/t Au over successive 20 metre intervals with no upper cut-off of individual assays. 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.

Contact Information

  • Osisko Exploration Ltd.
    Mr. John Burzynski
    Vice-President Corporate Development
    (514) 735-7131
    Osisko Exploration Ltd.
    Daniel Boase
    Investor Relations
    (416) 742-5600
    1 (866) 580-8891 (toll free)