Osisko Mining Corporation

Osisko Mining Corporation

February 03, 2006 08:00 ET

Osisko Options Malartic CHL Prospect

MONTREAL, QUEBEC--(CCNMatthews - Feb. 3, 2006) - Osisko Exploration Ltd. (TSX VENTURE:OSK)(Deutsche Boerse:EWX) is pleased to announce that it has signed a letter of intent (LOI) with Golden Valley Mines Ltd. (TSX VENTURE:GZZ) giving Osisko the exclusive right to acquire a 70% interest in 10 claims covering the north block of the Malartic CHL Prospect, located 2 kilometres east of the Canadian Malartic property.

The LOI also gives Osisko the right to purchase a 100% interest in one additional claim located adjacent to Osisko's Canadian Malartic property for $100,000, subject to a 2% NSR royalty in favor of Golden Valley. The LOI provides for a due diligence period terminating February 15, 2006, during which time Osisko will review available exploration data on the claims, draft a formal agreement ("Agreement") and obtain Board approval.

Osisko has the right to acquire a 70% interest in the north block of the Malartic CHL Prospect in consideration for (i) paying $150,000 cash over a four year period ($35,000 is payable on signing of the Agreement); (ii) completing a minimum of $2,000,000 in exploration work over a four year period from signing of the Agreement (minimum $200,000 in the first year). Upon earning its 70% interest in the north block, Golden Valley will maintain a free-carried interest of 30% to production.

Osisko's 100%-owned Canadian Malartic property hosts potential for a significant gold resource (see the Company's September 8, 2005 press release) and is located near extensive existing infrastructure. Osisko is currently conducting a 27,000 metre drill definition program on the deposit aimed at evaluating 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 2006.

Contact Information

  • Osisko Exploration Ltd.
    Mr. Robert Wares
    (514) 735-7131 / 1-866-580-8891
    Osisko Exploration Ltd.
    Daniel Boase
    Investor Relations
    (416) 742-5600