An iA Securities report notes the early results
from this Canadian mine indicate gold grades could increase.
In a Dec. 19 research note, analyst George Topping reported that
preliminary bulk sampling results from Osisko Mining
Inc. (OSK:TSX) Windfall project demonstrate a "39% positive
reconciliation in grade." Findings are from 2,078 tons of ore obtained
from block 114 in zone 27 at the Quebec property.
Topping highlighted results revealing an estimated average head grade of
9.7 grams per ton gold (9.7 g/t Au), 39% higher than the 7 g/t grade
predicted by the resource block model for that specific area. "This is
interesting," Topping commented, "as the test area was tightly
drilled at 12.5-meter centers and suggests the high variability in grades
combined with capping could be materially underestimating the true grade."
Topping pointed out that as drilling tightened at the Lynx property,
adjacent to Windfall, the grade increased. Most recently, as of the November
2018 resource estimate, it stands at 8.1 g/t Au. Lynx is now in the
feasibility study stage.
Osisko will report results from the remainder of the first batch of bulk
samples from Windfall, 2,922 tons' worth, in 2019. It plans to extract two
additional, 5,000-ton bulk samples at this project as well.
Osisko Mining, in general, Topping highlighted, is progressing toward
production in 2020-2021. "New discoveries at Deep Underdog (Triple 8)
and Deep Lynx plus the recent funding by Kirkland Lake Gold Ltd. have added
excitement back into the stock," he wrote. IA Securities maintains its
Buy recommendation and CA$4.50 per share target price on Osisko Mining, whose
current share price is about CA$2.72.
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Disclosures from iA Securities, Osisko Mining Inc., Research
Update, December 19, 2018
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