Osisko Mining Corporation

Osisko Mining Corporation

August 21, 2006 08:48 ET

Osisko Intersects 118 m Averaging 1.38 g/t Au at Canadian Malartic

MONTREAL, QUEBEC--(CCNMatthews - Aug. 21, 2006) - Osisko Exploration Ltd. (TSX VENTURE:OSK)(DEUTSCHE BOERSE:EWX) is pleased to announce the latest results from Phase Five definition drilling on its 100%-owned Canadian Malartic gold property. The latest drilling results continue to return significant mineralized intercepts, including 118.5 m averaging 1.38 g/t Au (CM06-761) and 105.4 m averaging 1.55 g/t Au (CM06-764). Local higher grade intercepts include 3.78 g/t Au over 13.5 m (CM06-767) and 3.31 g/t Au over 18.3 m (CM06-774). Results from thirteen new drill holes are tabled below:

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

CM06-760 3790E 11.0 61.0 50.0 1.45
CM06-761 3790E 165.0 283.5 118.5 1.38
including 172.6 193.5 20.9 3.41
CM06-763 4060E 262.7 327.2 64.5 0.99
CM06-764 3850E 109.5 214.9 105.4 1.55
and 238.9 280.9 42.0 0.65
CM06-765 3850E 55.0 108.5 53.5 1.17
CM06-766 3790E 212.6 263.5 50.9 1.92
CM06-767 4155E 232.8 288.3 55.5 1.49
including 264.3 277.8 13.5 3.78
CM06-769 4155E 206.00 249.5 43.5 0.55
and 299.0 327.5 28.5 1.91
CM06-770 3910E 21.4 40.9 19.5 2.24
CM06-771 3910E 98.0 135.0 37.0 2.32
CM06-772 3975E 16.5 59.5 43.0 0.62
and 139.8 173.5 33.7 1.30
CM06-773 4060E 129.3 192.8 63.5 1.19
CM06-774 4060E 106.7 124.2 18.3 3.31
and 136.0 162.2 26.2 1.13

Drill holes CM06-759 (section 3790E, 27.1 metres at 0.96 g/t Au from 117.5 to 144.6 m) and CM06-768 (section 4060E, 10.3 metres at 1.34 g/t Au from 243.0 to 253.3 m) encountered underground mine workings and failed to intersect the full width of projected mineralized zones. Drill holes CM06-762 (section 4155E) also terminated in mine workings and did not intersect significant mineralization.

The latest results are all in line with expectations from the working geological model. Most holes were collared in the central part of the deposit where the mineralized zone is thinner but of higher average grade.

Sean Roosen, President of Osisko states: "The first pass definition drilling program on 1.3 km of the Canadian Malartic deposit is nearing completion. To date we have reported results from 127 core holes for a total of approximately 33,500 metres drilled. All but four of the holes have returned significant mineralization, a drilling success rate of over 96%. We are extremely pleased with results up to now, and it's evident that the drill program has confirmed and exceeded the projected size of the deposit based on our original geological model. The system is still open to the south, east and at depth, and we anticipate that the Phase Six drill program on the Sladen Extension will add at least another 400 metres to the length of the mineralized zone. Canadian Malartic is looking like a company-making gold deposit with remarkable added exploration potential".

The Phase Four drill program is focused on systematically drilling the eastern end of the main deposit between lines 4215E and 4520E, whereas Phase Five is focused on the north and central part of the deposit, mainly between lines 3730E and 4155E. These programs are nearing completion and Phase Six drilling has commenced. The Phase Six 12,000 metre program will cover the Sladen (eastern) extension of the deposit to line 5000E.

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.
    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)