Osisko Mining Corporation

Osisko Mining Corporation

October 20, 2009 08:00 ET

Osisko Intersects New Gold Mineralization on the Malartic CHL Property

MONTREAL, QUEBEC--(Marketwire - Oct. 20, 2009) - Osisko Mining Corporation ("Osisko")(TSX:OSK)(FRANKFURT:EWX) is pleased to announce additional results from the 2008 drill program targeting the CHL Porphyry and the Shaft Zone on the Malartic CHL Property, located immediately east of the Canadian Malartic property.

Highlights from 32 drill holes totaling 7,175 metres include 15 metres averaging 8.60 g/t Au (CHL08-2061), 29.5 metres averaging 3.39g/t Au (CHL08-2101), 52.5 metres averaging 0.89g/t Au (CHL08-2128) and 18.0 metres averaging 1.55g/t Au (CHL08-2131).

Drilling intersected a series of near surface and deeper gold mineralized zones across the CHL Porphyry intrusion and the Shaft Zone. Assay results are summarized in the table below:

CHL Porphyry

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

CHL08-2054 6797E 142.0 146.0 4.0 0.91

CHL08-2057 6859E 90.3 95.6 5.3 1.96

CHL08-2060 6915E 135.6 141.4 5.8 0.94
And 195.5 233.0 37.5 0.60

CHL08-2061 6915E 115.0 130.0 15.0 8.60
Including 118.0 122.3 4.3 16.1
Including 125.5 130.0 4.5 12.0

CHL08-2128 6985E 154.5 169.5 15.0 0.71
And 208.5 216.0 7.5 0.57
And 271.5 324.0 52.5 0.89

CHL08-2131 7070E 253.0 272.5 19.5 0.58
And 284.5 302.5 18.0 1.55
Including 289.0 290.5 1.5 7.50
And 334.0 340.0 6.0 0.85

Shaft Zone

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

CHL08-2095 6650E 129.0 130.0 1.0 5.20
And 135.3 139.4 4.1 3.80
Including 135.3 136.5 1.2 9.23

CHL08-2098 6700E 14.0 18.5 4.5 1.24
And 174.0 201.0 27.0 1.24
Including 174.0 175.5 1.5 8.04

CHL08-2100 6750E 148.0 154.0 6.0 3.11

CHL08-2101 6750E 107.5 123.0 15.5 0.94
Including 122.0 123.0 1.0 5.29
And 154.5 184.0 29.5 3.39
Including 159.0 166.5 7.5 9.52

CHL08-2102 6750E 147.0 160.5 13.5 0.88
Including 148.0 149.0 1.0 4.52

CHL08-2103 6750E 28.5 42.0 13.5 0.72

CHL08-2105 6785E 58.0 64.0 6.0 0.58

CHL08-2106 6800E 201.5 206.0 4.5 1.13

CHL08-2107 6850E 178.0 185.5 7.5 0.56
And 245.5 249.5 4.0 1.10

CHL08-2108 6850E 201.0 208.5 7.5 0.75
And 228.0 240.0 12.0 0.41
And 243.0 259.5 16.5 1.40

Holes CHL08-2054 to CHL08-2061 represent a 120 metre west-east section across the southwestern margin of the CHL Porphyry, and holes CHL08-2128 and CHl08-2131 were located near the eastern margin of the CHL Porphyry. Both areas are located between the Jeffrey Zone to the southeast and the Shaft Zone to the northwest. Drilling generally comprised 3 holes per setup along the western margin of the CHL Porphyry and single or 2-hole set-ups within the central core and eastern margins of the CHL Porphyry. The higher grade zone in drill hole CHL08-2061 was closed at depth and near surface with holes CHL08-2060 and -2062, but remains open along strike near the contact of the CHL Porphyry and ultramafic schists. Mineralized intersections from the holes targeting the Shaft Zone are all from the deeper portion of the Shaft Zone or from zones of lower grade disseminated mineralization located in the CHL Porphyry immediately south of the Shaft Zone. These results, along with previously reported intersections from the Shaft Zone, suggest a minimum 150 metre strike length of unknown true width.

Mineralization in the CHL Porphyry consists of disseminated pyrite-gold in strongly potassic altered quartz-feldspar porphyry in contact with deformed ultramafic volcanic rocks, and in subordinate gabbro and sedimentary units. Narrower, higher-grade mineralization is hosted in quartz veins, brecciated and silicified porphyry and/or talc/chlorite altered and sheared ultramafic rocks. Current structural interpretation by Osisko indicates that the Jeffrey and Shaft zones are located at the southeastern and northwestern extremities, respectively, of the CHL Porphyry, which has been deformed into a Z-shaped body by sinistral strike-slip motion along the Cadillac-Larder Lake Fault Zone. The geological model suggests potential for additional mineralization along dilation zones at the contact between the porphyry and the ultramafic schists.

In conjunction with the results released on September 10th, 2009 and April 17th, 2009, the total strike length tested to date on the Malartic CHL property is approximately 1.4 kilometres. Additional results from a group of forty-one (41) drill holes totaling about 7,100 metres are anticipated to be released over the next 6 weeks with respect to the CHL Porphyry and the Shaft Zone.

All NQ or HQ core assays reported above were obtained by standard 50 g fire assaying-AA finish or gravimetric finish at ALS Chemex laboratories in Val d'Or, Quebec. Reported weighted averages were calculated using a minimum of 0.50 g/t Au over successive maximum intervals of 20 metres with no upper cut-off of individual assays. Intersected drifts or lost core within mineralized intersections were incorporated as blank intervals.

Osisko has the right to acquire a 70% interest in the Malartic CHL Property from Golden Valley Mines Ltd. in consideration for $150,000 in cash payments over a four year period (total amount paid to date) and by completing a minimum $2,000,000 in exploration work over a four year period. Upon earning its 70% interest, Golden Valley will maintain a free-carried interest of 30% to production. Presently, option/joint venture operator Osisko has completed 19,746 metres (101 drill holes) on the property in 2008 and 15 holes totaling 6,544 metres in 2007.

Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Canadian Malartic deposit currently represents one of the biggest gold reserves in Canada for a single deposit, and is still growing through ongoing drilling on new mineralized zones. Current reserves for the Canadian Malartic property are 6.28 million ounces, plus (including the Barnat deposit) a measured and indicated resource of 3.65 million ounces and an inferred resource of 0.84 million ounces. Mr. Robert Wares, P. Geo. and Executive Vice-President of Osisko, is the Qualified Person who has reviewed this news release and is responsible for the technical information reported herein, including verification of the data disclosed including the sampling, analytical and test data underlying the technical information.

Cautionary Notes Concerning Estimates of Mineral Resources

This news release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that that further work on the stated resources will lead to mineral reserves that can be mined economically.

Forward Looking Statements

Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all technical, economical and financial conditions will be met in order to put the Canadian Malartic Project into commercial production, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, access to skilled consultants, mining development and mill production personnel, results of exploration and development activities, the Corporation's limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in greater detail in the Corporation's most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. The Corporation cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Corporation's forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

Contact Information

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    John Burzynski
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    Osisko Mining Corporation
    Sylvie Prud'homme
    Investor Relations
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