Osisko Mining Corporation

Osisko Mining Corporation

November 01, 2006 09:37 ET

Osisko Signs Letter of Intent with Metso Minerals for Canadian Malartic Mill

MONTREAL, QUEBEC--(CCNMatthews - Nov. 1, 2006) - Osisko Exploration Ltd. (TSX VENTURE:OSK)(FRANKFURT:EWX)) is pleased to announce that it has taken the first step in its intended path in building a production mine facility at its 100%-owned Canadian Malartic gold property.

Current industry conditions dictate the need to place long lead-time equipment on order to satisfy the intended plant start-up date. In this regard, Osisko has signed a Letter of Intent, awarding Metso Minerals a contract for the timely supply of one 38' diameter x 23' long semi-autogenous mill and two 26' diameter x 38' long ball mills including the immediate release for manufacture of the critical lead time components. Once installed, these machines will be the largest operating mill units in North America, capable of processing between 28,000 and 40,000 tonnes per day, depending on final design criteria.

Metso Minerals is well recognized as a leading global provider of process equipment for the mining industry, and is considered as a supplier of strategic importance to Osisko's plans to build a state-of the art gold production facility at the Canadian Malartic site.

Sean Roosen, President and Chief Executive Officer of Osisko states: "Our Letter of Intent with Metso Minerals for the full construction of these critical grinding mills is a major milestone in our project. As our drilling has progressed over the last year we have seen a constant flow of positive results from the deposit. We are very confident that we will soon see, with the pending release of our NI 43-101 inferred resource calculation, that we have reached the critical mass necessary to move to measured/indicated resources and full feasibility on the deposit. Our agreement with Metso Minerals underscores that we are now capable and fully committed to proceed to production in the shortest timeframe possible, and that we are very confident of achieving this."

Metso is a global engineering and technology corporation with 2005 net sales of approximately EUR 4.2 billion. Its 22,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. www.metso.com

Contact Information

  • Osisko Exploration Ltd.
    John Burzynski
    Vice-President Corporate Development
    Osisko Exploration Ltd.
    Daniel Boase
    Investor Relations
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