Osisko Mining Corporation

Osisko Mining Corporation

May 08, 2007 08:00 ET

Osisko Cuts 6 Metres Averaging 22.4 g/t Au in Drill Hole Located 900 Metres Outside Canadian Malartic Deposit

MONTREAL, QUEBEC--(CCNMatthews - May 8, 2007) - Osisko Exploration Ltd. (TSX VENTURE:OSK) (FRANKFURT:EWX) is pleased to announce results from three exploration holes drilled on its 100%-owned Canadian Malartic gold property, all collared outside the main deposit within a distance of one kilometre. The holes tested the historically known Gouldie and Charlie prospects, as well as a geophysical target named the "Pumphouse" porphyry, which had not been previously drilled.

All three holes returned significant results above the 0.5 g/t Au cut-off grade used in the Company's December 2006 inferred resource calculation (see Osisko press release dated December 6, 2006). One hole drilled in the Charlie Zone (CM07-1015) returned an intersection of 41.8m averaging 4.39 g/t Au, containing a high-grade intercept of 22.4 g/t Au over 6.0m at shallow depths (16.0m - 22.0m). Assay results are outlined in the table below:

Hole No. Showing From (m) To (m) Length (m) Au g/t Distance from
main deposit
CM07-1010 Pumphouse 83.0 110.0 27.0 0.52 990 m ENE
and 134.0 180.0 46.0 0.58
CM06-1012 Gouldie 5.0 66.8 61.8 0.80 860 m SE
CM07-1015 Charlie 10.7 52.5 41.8 4.39 900 m ESE
including 16.0 22.0 6.0 22.4
and 62.0 85.9 23.9 0.66

Mr. Sean Roosen, President and CEO of Osisko, states: "We are very pleased with the results of these exploration holes, which show that there is tremendous upside to the property, up and above the area of the main Canadian Malartic deposit. The Pumphouse drill hole was a pure wildcat hole on a geophysically-interpreted, separate porphyry body within the Cadillac Break, and this constitutes a new discovery of low grade mineralization amenable to bulk tonnage mining. The other two holes have confirmed the presence of significant mineralization at Charlie and Gouldie, and we will now determine how these zones relate to the main deposit located 900 metres to the northwest. These results are highly encouraging for three exploration holes collared away from the main deposit, and we will now add emphasis to our exploration program on the project."

The Pumphouse porphyry is located within the Cadillac fault zone and measures approximately 350 x 250 metres, as delineated from the high resolution airborne magnetic survey completed in 2006. DDH CM07-1010 was an inclined hole collared near the center of the porphyry, at a distance of 990 metres east-northeast of the known eastern limit of the Canadian Malartic deposit (grid line 5000E). This hole returned two significant intersections averaging 0.52 and 0.58 g/t Au, characterized by fine disseminated pyrite (less than 1%) in slightly silicified porphyry. The Pumphouse porphyry intrusion is distinct from the porphyry dyke hosting the South Barnat gold zone, located 760 metres to the west.

The Gouldie Zone was originally discovered as a surface showing in 1928, and the Charlie Zone was discovered through surface drilling by Lac Minerals in the 1980's. Neither zone was previously evaluated in terms of near-surface, bulk tonnage mining potential. Drill holes CM06-1012 (Gouldie Zone) and CM07-1015 (Charlie Zone), both intersected significant mineralization, the latter returning a high grade zone of 6.0 metres averaging 22.4 g/t Au. This zone is characterized by sheared carbonated sediments that are invaded by quartz vein stockworks. The lower grade gold mineralization in both the Gouldie and Charlie zones is hosted by intercalated, altered porphyry dykes and sediments, similar to the rock types hosting the main Canadian Malartic deposit. The true width and orientation of these mineralized zones is presently unknown.

The Gouldie and Charlie zones are 350 metres apart and are located 860 metres and 900 metres, respectively, from the presently known southern limit of the main Canadian Malartic deposit. Both are located within the area that offers high potential for a southeastern extension to the main deposit, slated to be drill-tested in the current ongoing 2007 drilling campaign. Analytical results are pending from two additional holes (CM07-1013 and -1014) that were collared in the Charlie Zone, as well as for CM07-1011, collared on a fourth exploration target.

The Canadian Malartic gold deposit and adjacent areas are being evaluated for a large-scale open pit, bulk-tonnage mining operation. A preliminary NI 43-101 compliant, inferred gold resource estimate on the main deposit was released on December 6, 2006 and the full report has now been filed on SEDAR. Ongoing drilling will lead to an upgraded inferred resource calculation, which is slated to be released at the end of the second quarter of 2007.

All NQ core assays were conducted using 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 0.30 g/t Au over successive 20 metre intervals with no upper cut-off of individual assays and maximum dilution of 20 metres. 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
    416-742-5600 or Toll Free: 1-866-580-8891