Osisko extends Canadian Malartic deposit

Exploration drilling by Osisko Exploration (OSK-V) has extended the Canadian Malartic deposit, 25 km west of Val d’Or, Que., by some 150 metres.

Hole 1002 returned two mineralized intervals, with a 10.5-metre stretch (beginning 39.5 metres downhole) running 0.66 gram gold per tonne. The hole also contains a 54-metre interval (from 81 m) of 1.33 grams gold. Another 118 metres to the west, hole 1003 cut 17.7 metres of 0.92 gram gold.

The main Canadian Malartic deposit now stretches some 1.38 km of strike and remains open to the south and west.

“This latest batch of results has exceeded our expectations, with a strong infill hole running 1.88 g/t gold over 80 metres as well as confirmation that mineralization extends 150 metres west of the known deposit.

“We’re confident that Canadian Malartic is only beginning to show us its potential.” The Canadian Malartic property hosts potential for a significant gold resource and is located near extensive existing infrastructure,” said Osisko chief operating officer Sean Roosen.

Meanwhile, infill drilling on the western end of the main deposit are highlighted by:

• Hole 686 80 metres (from 108 m) of 1.88 grams gold;
• Hole 689 79 metres (from 2.6 m) grading 1.15 grams gold, and 98 metres (from 170 m) of 0.93 gram; and
• Hole 690 40.3 metres (from 7.4 m) running 1.06 grams gold, 96 metres (from 112.4 m) of 066 gram, and 60 metres (from 283.4 m) at 0.65 gram.

The latest holes are part of a 14,000-metre program focused systematically testing the western end of the main deposit. Another 13,000 metres of drilling is planned for the eastern end of the deposit. The drilling is designed to test for a bulk-tonnage open-pittable deposit.

Osisko figures the property could contain up to 100 million tonnes running between 1-1.35 grams gold, for 3.2 to 4.3 million contained ounces. The company believes the project offers potential for a near-surface gold deposit located near existing infrastructure, which could ultimately be evaluated as an open-pit, bulk-tonnage operation.

The 15-sq.-km property is home to the Canadian Malartic mine, which produced more than 1 million oz. gold from 9 million tonnes grading 3.37 grams gold between 1935 and 1965. Barrick Gold (ABX-T, ABX-N) retains a 2-3% sliding-scale net smelter return royalty. Osisko can halve the royalty by paying $1.5 million.

Late last year, reconnaissance work turned up two new surface gold zones at Canadian Malartic. Grab sampling ran as high as 4.84 grams gold at the Alpha zone. The Bravo zone yielded up to 1.46 grams gold. The zones are 1 km to the southwest and 5 km to the southeast of the main deposit. Drilling is planned on both zones.

Osisko plans to release a National Instrument 43-101-compliant inferred resource estimate this spring. An indicated resource would conceivably follow by early 2007.