Osisko Mining Corporation

Osisko Mining Corporation

March 26, 2008 10:41 ET

Osisko Confirms New Bulk Tonnage Gold Target in Western Porphyry Zone

Drill results include 166.5 metres averaging 1.01 g/t Au

MONTREAL, QUEBEC--(Marketwire - March 26, 2008) - Osisko Exploration Ltd. (TSX:OSK)(FRANKFURT:EWX) is pleased to announce results from an initial ten hole, 3600 metre drill program on the Amphi property, located immediately northwest of and contiguous to Osisko's 100%-owned Canadian Malartic gold property. Drilling was focused on the Western Porphyry Zone, located approximately 2 km northwest of the center of the Canadian Malartic deposit. The program tested a porphyry intrusion along 1200 metres of strike length on sections spaced 200 metres apart. Significant results included 1.01g/t Au over 166.5m (from 32.5m - 199.0m) in hole EA08-2011, which also included a higher grade intercept of 6.12 g/t Au over 7.5m. All reported holes are oriented southwest or northeast, perpendicular to regional fabric and are inclined 50 degrees. Significant results are summarized in the table below:

Hole No. Dip Easting From To Length Au g/t
(m) (m) (m)
EA08-2010 50NE WP 200E 13.9 54.3 40.4 0.55
And 188.5 241.0 52.5 1.16
including 238.0 239.5 1.5 14.6
EA08-2011 50NE WP 400E 32.5 199.0 166.5 1.01
including 32.5 40.0 7.5 6.12
And 256.0 277.0 21.0 0.51
EA07-2012 50SW WP 400E 15.6 18.5 2.90 10.4
And 85.0 185.0 100.0 0.61
EA07-2013 50NE WP 600E NIL
EA07-2014 50SW WP 600E 175.5 205.0 29.5 0.46
And 273.4 296.3 22.0 0.50

Mineralization consists of fine disseminated/stockwork pyrite and gold in potassic and/or carbonate-altered porphyry and mafic/ultramafic volcanics. The porphyry mineralization is similar to that of the F Zone of the Canadian Malartic deposit. Occasional higher grade intersections (greater than 4 g/t Au) are related to classic Abitibi vein-type mineralization cutting the host lithologies.

This initial program suggests the Western Porphyry Zone is constrained to a block 400 to 500 m long, 200 to 250 metres wide and 100 to 150 metres deep. The encouraging initial results indicate this block hosts potential for additional near-surface low-grade gold resources amenable to open-pit mining. Further drilling will be conducted on a 100 metre grid spacing between sections WP 100E and WP 600E.

Drill hole EA07-2009 (which tested section WP 00E) and drill holes EA07-2015 to EA07-2018 (which tested sections WP 800E and WP 1000E) did not return significant intersections. Previously reported drill hole CM07-1011 intersected 238.3m averaging 0.64g/t Au on section WP 1200E (see press release dated August 27, 2007). This hole is currently interpreted to represent the western limit of a separate mineralized zone (distinct from the Western Porphyry Zone) identified by historic drilling under the town of Malartic.

Sean Roosen, President and CEO of Osisko, commented: "Osisko has spent the last twelve months focusing on the infill drilling to upgrade our resource on the Canadian Malartic deposit to the measured and indicated category, which we expect to see by mid-summer. As Osisko nears completion of the infill program, the drilling at Malartic is now shifting to exploration. The positive early results from Western Porphyry, in addition to what we have already reported from South Barnat, suggest there is excellent potential to add new ounces. We're just getting started in 2008, and it's already looking like we'll have an exciting year on the exploration front."

All NQ core assays reported above were obtained 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 0.4 g/t Au over successive maximum intervals of 20 metres with no upper cut-off of individual assays.

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 $180 million on hand and is carrying out an aggressive definition drilling and exploration campaign. An updated NI 43-101 compliant inferred gold resource estimate on the main Canadian Malartic deposit was released on July 5, 2007 and the full report is available on SEDAR.

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.
    John Burzynski
    Vice-President Corporate Development
    Osisko Exploration Ltd.
    Daniel Boase
    Investor Relations
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