Osisko Mining Corporation

Osisko Mining Corporation

May 09, 2008 08:00 ET

Osisko Releases First Quarter Financial Results

(MONTREAL, QUEBEC--(Marketwire - May 9, 2008) - Osisko Exploration Ltd. (TSX:OSK) (FRANKFURT:EWX) is pleased to report its financial results for the period ended March 31, 2008.

The Company generated a profit of $4.7 million ($0.03 per share) in the first quarter of 2008 compared to a loss of $0.7 million ($0.01 per share) in the corresponding period of 2007. The net profit is mainly attributable to the recognition of a future tax recovery of $4.5 million resulting from the renunciation to the subscribers of the $25 million flow-through financing completed in July 2007, of the tax benefits for the exploration outlays. In addition, the Company generated higher interest income on cash resources following major equity financings in 2007.

During the quarter, the Company continued to pursue the development of its Canadian Malartic Project. Major achievements include:

- Completion of the 30 meter infill drilling program on the Canadian Malartic deposit (entire 1.86 km length), which will provide the foundation for a measured and indicated resource estimate, slated to be released in July 2008;

- Significant progress on the relocation program with major emphasis on the design of the five institutional buildings, and the completion of the infrastructure for the demonstration street in the new town site. Over 120 residents of the southern sector of Malartic have accepted lot assignments in the new development area currently under construction. This will provide the basis for the Company to enter into final lot exchange and home relocation agreements with residents in the second half of 2008. In addition, 62 homes have been purchased by the Company;

- Securing a mining fleet with initial deliveries to be made in the third quarter of 2008;

- Issuing the Preliminary Assessment Study ("Study") on the Canadian Malartic Project. The Study outlines an investment plan totalling US$760 million for a 14-year mine life operation, which will produce an average 458,000 ounces of gold per annum (average of 572,000 ounces during the first three years) at a cash cost before royalties of US$369 (US$301 in years 1 to 3). The Study is available on SEDAR and on the Company's website;

- Entering into two new financing agreements for approximately $103 million to fund equipment purchases. These agreements are expected to close in the second quarter.

During the period, the Company invested $18.8 million on the Canadian Malartic Project. The Company is well funded to complete the feasibility stage of the Project.

Key financial highlights are as follows:
March 31, 2008 December 31, 2007
Cash Position $163,148,000 $182,078,000
Working Capital $167,408,000 $183,476,000
Total Assets $267,703,000 $264,394,000
Shareholders' Equity $253,964,000 $252,538,000

Commenting on the progress to date in 2008, Mr. Sean Roosen, President and CEO, stated: "We are aggressively pursuing the development of the Canadian Malartic Project, one of the premier gold development projects in the world. We are fortunate that this project is well located in Quebec which is recognized for its support to the mining industry. Our team is delivering on its commitments and we look forward to tabling M&I resource estimate this summer, the feasibility study in Q4 and subsequently securing mine financing".

The 2008 first quarter financial statements and Management Discussion and Analysis (MD&A) have been filed on SEDAR.

Osisko Exploration Ltd. is currently evaluating the Canadian Malartic gold deposit and adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Company is well-funded with approximately $160 million on hand and is carrying out an aggressive definition drilling and exploration campaign on the Canadian Malartic deposit and surrounding properties.

Contact Information

  • Osisko Exploration Ltd.
    John Burzynski
    Vice-President Corporate Development
    Osisko Exploration Ltd.
    Daniel Boase
    Investor Relations
    Toll Free: 1-866-580-8891