Osisko adds resources at Malartic (July 23, 2007)

An updated resource calculation for the Canadian Malartic gold deposit south of Malartic, Que., has increased the inferred resource there by about 30%.

Consulting firm RSG Global, engaged by Osisko Exploration (OSK-V, OSXLF-O), puts the size of the inferred resource at 286 million tonnes grading 0.92 gram gold per tonne, using a cutoff grade of 0.4 gram gold per tonne. The tonnage estimate, which is geostatistical using ordinary Kriging, varies from 270 million to 288 million tonnes using other geostatistical methods and inverse-distance estimation.

The 0.4-gram cutoff grade, which Osisko regards as being justified by early results coming from a preliminary economic analysis of the project, is 0.1 gram per tonne lower than a previous estimate used. RSG Global’s December 2006 resource calculation, with a cutoff of 0.5 gram per tonne, estimated the inferred resource at 177 million tonnes grading 1.15 grams gold per tonne.

The new estimate is based on 331,000 metres of drilling, compared with 244,000 metres in the previous estimate, and takes in a number of extensions to the deposit that had not been included in earlier calculations.

At a 0.7-gram cutoff grade, the tonnage falls to 136 million tonnes and the grade rises to 1.35 grams per tonne.

Osisko also recently closed its purchase of the East Amphi property, just west of Malartic, from Richmont Mines (ric-t, ric-x). Richmont gets $2.45 million, plus 1.1 million shares, and keeps a 2% net smelter return.