Osisko Mining Corporation

Osisko Mining Corporation

September 12, 2007 10:02 ET

Osisko Acquires East Malartic Mill Complex

MONTREAL, QUEBEC--(Marketwire - Sept. 12, 2007) - Osisko Exploration Ltd. (TSX VENTURE:OSK)(FRANKFURT:EWX) is pleased to announce that it has completed the acquisition of the East Malartic Mill Complex located in Malartic, Quebec.

The East Malartic Mill, last operated by Barrick Gold Corporation in 2002, has been on "care and maintenance" since the termination of processing of ore from the former Bousquet Mine in the same year. At that time the complex had a milling capacity of up to 3,000 tonnes per day. The mill equipment was professionally placed in a stand-by state at the time of closure so that the mill could be restarted with minimal rehabilitation work. Osisko acquired the mill complex from the Government of Quebec and the town of Malartic under a private sale agreement and is now 100% owner of the mill complex and all ancillary buildings on the site. The company is currently using the former East Malartic administrative offices as its Canadian Malartic project headquarters.

Osisko has no current plans to rehabilitate and restart the current mill. The company, however, will review all possible options regarding its integration and potential uses for the currently developing Canadian Malartic project. In late 2006 Osisko signed a purchase agreement for the procurement of a new 38 foot SAG mill and two 24 foot ball mills with rated daily capacity of between 25,000 to 40,000 tonnes per day. This new equipment is scheduled for delivery to the Canadian Malartic site in early 2009.

Sean Roosen, President and CEO of Osisko stated: "The completion of the acquisition of the East Malartic Mill Complex is another significant step for Osisko, as it allows us to move forward with full use of the former mine site. The facility was left in excellent shape and we have already been able to put the administrative buildings to very good use for the rapidly expanding team at Malartic. Our new Vice President of Mining and Construction, Luc Lessard, and his team will be evaluating the potential uses of the milling equipment as we feel that this acquisition may have significant additional benefits for the company."

Osisko Exploration Ltd. 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 $80 million on hand and is carrying out an aggressive definition drilling and exploration campaign on the Canadian Malartic deposit and surrounding property. An updated NI 43-101 complaint, inferred gold resource estimate on the main deposit was released on July 5, 2007 and the full report is available on SEDAR.

Contact Information

  • Osisko Exploration Ltd.
    John Burzynski
    Vice-President Corporate Development
    Daniel Boase
    Investor Relations
    Toll Free: 1-866-580-8891