More gold for Osisko

With a feasibility study and a 6.3 million oz. reserve already done on its main orebody Osisko Mining (OSK-T) wants more.

The company has been drilling zones outside of the main zone at Canadian Malartic and is yielding some impressive results.

Its latest assays come from a definition drill program at the South Barnat zone — a separate gold zone that sits northeast of the Canadian Malartic deposit.

Intersects were highlighted by 2 grams gold per tonne over 182.4 metres in hole BA08-3233; 2.76 grams gold over 108.7 metres in hole BA08-3219; and 2.17 grams gold over 158.5 metres in hole BA08-3242.

Osisko also reported higher grade intersections including 4.13 grams gold over 37.5 metres in hole BA08-3221; and 3.87 grams gold over 51.3 metres in hole BA08-3243.

Osisko says hole BA08-3219 is of particular interest because it was drilled as the downward extension of a prior drill hole that returned 7.61 grams gold over 57 metres. The new hole tested down to a depth of 420 metres.

Both holes hit mineralization situated between old underground workings of the East Malartic mine.

Osisko says the drill program overall suggests a strike length of 850 metres for South Barnat with an average true width between 30 and 120 metres.

The zone is open along strike to the east, where it merges with the old East Malartic Mine, and currently extends to depths of 250 to 400 metres in the southeastern portion, where the system is still open at depth.

Osisko describes the deposit as being made up of disseminated gold mineralization comprised of multiple sub-vertical, tabular subzones hosted in silicified greywackes of the Pontiac Group south of the fault contact. North of the fault, mineralization is hosted in both porphyry dykes and schistose, carbonated and biotitic ultramafic rocks north. Porphyry dykes also host late quartz veins containing visible gold.

Eight drills are currently working on the property, with five dedicated to completing the 130,000 metre infill drilling at South Barnat. It expects to be finished there by mid-February.

In late November of last year Osisko released a feasibility study and a reserve estimate that put 183 million tonnes grading 1.07 grams gold for 6.3 million ounces of gold in the proven and probable reserve category at the Canadian Malartic deposit.

The estimate did not include the South Barnat zone or any other mineralized zone located outside the main deposit.

Osisko currently developing Canadian Malartic along with adjacent mineralized zones into a large-scale open pit, bulk-tonnage mining operation

In Toronto on January 19 the company’s shares were up 6% or 21¢ to $3.46 on 157,000 shares traded.