Osisko Mining Corporation

Osisko Mining Corporation

October 31, 2006 09:07 ET

Osisko Intersects 131 Metres Averaging 1.34 g/t Au in Sladen Extension

MONTREAL, QUEBEC--(CCNMatthews - Oct. 31, 2006) - Osisko Exploration Ltd. .(TSX VENTURE:OSK)(FRANKFURT:EWX) is pleased to announce initial results from the Phase Six definition drilling program at its 100%-owned Canadian Malartic gold property, focused on the Sladen (eastern) extension of the deposit. Results from six new holes have produced significant mineralized intercepts, including 131.0m averaging 1.34 g/t Au (CM06-819) and 112.5m averaging 1.25 g/t Au (CM06-816). Results from the holes are tabled below:

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

CM06-807 4580E 7.6 21.0 13.4 1.17
and 162.0 283.5 121.5 0.64
CM06-810 4580E 171.5 353.0 181.5 0.78
CM06-812 4640E 308.1 389.1 81.0 1.70
CM06-816 4580E 49.6 162.1 112.5 1.25
CM06-818 4640E 226.0 378.5 152.5 0.66
CM06-819 4640E 61.6 192.6 131.0 1.34
including 67.6 84.1 16.5 3.38

The new drilling confirms the extension of the deposit over an additional length of 120 metres (to section 4640E) and a true width of 300 to 350 metres. True thickness of this portion of the deposit is estimated to vary between 80 and 140 metres.

Additional results from four infill holes (Phase Four and Five programs) are also reported below:

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

CM06-811 4400E 117.7 137.1 19.4 3.47
CM06-814 4338E 10.0 51.0 41.0 0.71
and 105.0 125.0 20.0 1.38
CM06-815 3910E 192.0 225.0 33.0 1.09
CM06-817 4460E 13.6 46.0 32.4 1.79
including 18.3 21.4 3.1 13.1

Drill holes CM06-811, CM06-814 and CM06-817 tested the northern extension of deposit and intersected new mineralization.

Drill hole CM06-813 was drilled for ground control purposes and CM06-820 intersected underground mine workings; neither hole intersected significant mineralization. Drill hole CM06-815 (located on section 3910E) intersected anticipated mineralization.

The Phase Four and Five drill programs have recently been completed. The 12,000-metre Phase Six program on the Sladen Extension, Phase Seven drilling (southern extension) and the Phase Eight program (western infill) are all progressing as planned. These programs should all be completed before the end of the year.

Sean Roosen, President of Osisko, states: "These first assay results from the Sladen Extension are very exciting, showing that the deposit is maintaining its integrity as we move east. Drill holes CM06-807 and CM06-818 are particularly encouraging as they show that the system is open to the south on the first two sections of the extension. We are certainly looking forward to more positive results from the Phase Six program."

Osisko has completed over 50,000 metres of drilling on the Canadian Malartic property, part of a larger 75,000 metre definition drilling program slated to be completed by year end. The objective is to evaluate the potential for a large-scale open pit, bulk-tonnage mining operation. The current resource definition program will include the calculation of an NI 43-101 compliant, inferred gold resource scheduled to be released in Q4 2006. Metallurgical test work is also in progress (Osisko press release August 30, 2006) with results expected to be available before the end of the year.

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 0.40 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
    Osisko Exploration Ltd.
    Daniel Boase
    Investor Relations