Canadian Malartic results keep Osisko rising

Drill results from Osisko Explorations (OSK-V) flagship gold property, Canadian Malartic, had the company continuing to climb the TSX a day after intersects were released.

The companys shares have gained roughly 7% or 77 since announcing results on May 3. In Toronto on May 4 its shares were trading for $11.61 on a volume of 114,000.

Osisko is the 100% owner the property which is situated in the Abitibi region of Quebec. The latest results come from its ongoing Phase 8 western infill program.

Highlights include:

• Hole CM06-947 – 262.4 metres averaging 1.37 grams gold.
• Hole CM06-949 – 103.9 metres averaging 1.21 grams gold.
• Hole CM06-946 – 35.3 metres averaging 4.89 grams gold.

The higher grade intersection of hole CM06-946 is located along the southern side of the F zone, which is on the eastern portion of the property, south of the Cadillac fault zone.

Osisko is bullish on the fact that a number of holes hit upon mineralization outside of the known deposit.

While hole 946 returned the best grades from the area, three other holes also returned lower grades from the previously unknown mineralized zone.

The company says the results confirm its geological model and continuity of mineralization in the deposit.

Six other drill holes also intersected minor mineralization north and south of the known deposit.

With a 0.5 grams gold cut-off grade, the property currently has an inferred resource of roughly 177 million tonnes grading 1.15 grams gold for 6.5 million oz. Osisko plans to mine the deposit as a large-scale open pit operation.

The company is in the midst of a $22 million, 170,000 metre drill program. The current phase 8 part of the program will lead to an upgrade of the inferred resource by the end of the second quarter, the company says.