Osisko Mining Corporation

Osisko Mining Corporation

September 28, 2009 08:00 ET

Osisko Signs Option Agreement With Claim Post Resources for the Mountjoy Gold Property

MONTREAL, QUEBEC--(Marketwire - Sept. 28, 2009) - Osisko Mining Corporation ("Osisko") (TSX:OSK)(FRANKFURT:EWX) is pleased to announce the signing of an option agreement with Claim Post Resources Inc. ("Claim Post") for the Mountjoy gold property, located two to eight kilometres west of the city of Timmins in the Abitibi region of Ontario. The property consists of 105 claims covering about 1500 hectares in Mountjoy township.

Osisko can acquire a 50 percent interest in the Mountjoy property during a four-year period in consideration of i) total cash payments of $250,000, including a payment of $50,000 on or before the first anniversary of the option agreement and ii) a total of $4,000,000 in exploration expenditures, including $500,000 on the first year ($150,000 minimum firm commitment).

Upon acquiring a 50 percent interest in the Mountjoy Property, Osisko will have the option to acquire another 10 percent (Second Option) by delivering a bankable feasibility study no later than 3 months following the sixth anniversary of the option agreement. Osisko can earn an additional 10 percent (Third Option) by securing project financing. Osisko will be the operator of the project during the option period.

Osisko Mining Corporation has also made a $200,000 private placement into Claim Post Resources by subscribing for 2 million common shares, equivalent to a 9.9% interest in the company.

The Mountjoy Property in located in the Timmins West district and offers a geological environment similar to that of Osisko's Canadian Malartic project. This grass-roots area has seen little modern exploration and offers excellent potential for the discovery of new gold mineralization.

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 a global measured and indicated resource of 3.65 million ounces and an inferred resource of 0.84 million ounces (including the adjacent South Barnat deposit).

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 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
    (514) 735-7131
    Osisko Mining Corporation
    Sylvie Prud'homme
    Investor Relations
    (514) 735-7131 or Toll Free: 1-888-674-7563
    Website: www.osisko.com