Quebec Government Authorizes Construction of Osisko's Canadian Malartic Gold Mine
(MALARTIC, QUEBEC -- Aug. 20, 2009 - Osisko Mining Corporation ("Osisko") (TSX: OSK)( FRANKFURT: EWX) has the pleasure of announcing that the Conseil des ministres du Quebec has approved the order in council authorizing the completion of its Canadian Malartic gold mine project in Malartic, Quebec.
Construction work on the mine and the mill will begin shortly, immediately upon issuance of the required formal authorization certificates. The construction work is scheduled to be completed over a period of 18 months, and the mine and mill are planned to be fully operational by Q2 2011.
With overall investment of nearly CAD $1 billion, the Canadian Malartic project will create approximately 800 direct jobs during the construction phase and 465 permanent direct jobs during the ten year (currently planned) operation life of the mine. A large majority of the new jobs created will employ residents drawn directly from Malartic and the Abitibi-Temiscamingue region.
The government authorization anticipates certain conditions in addition to the commitments already provided in Osisko's Environmental Impact Study, relating among others to water, dust and noise management. The order in council also confirms that Osisko will have to implement stringent follow up and monitoring programs during the construction and operating phases.
Osisko president and CEO Sean Roosen commented: "On behalf of the board of directors, management and our employees, I would like to extend Osisko's sincerest thanks and gratitude to the Quebec government for their decision to ratify our mining project. We are very proud of this milestone achievement, and are dedicated to returning the government's trust and faith through becoming a leading corporate citizen and a productive partner in the future of Quebec's economy. We are eager to commence work on the project, and we will adhere to the conditions outlined in the order in council very carefully. These conditions will only improve the general quality of the project and will increase the level of harmony already established with the town of Malartic and its citizens. As a corporation we are focused on creating value not only for our investors, but also for the economy, businesses, workers, the community of Malartic, Abitibi-Temiscamingue, and Quebec as a whole. From the beginning of our project, we have followed a policy directed towards optimizing the impact of the entire life cycle of the project for all stakeholders, and to minimize any negative impact on the physical and human environment. We will continue in good faith to do everything that we can to ensure a smooth introduction of Quebec's newest mine into the local, regional and national community."
"We are impressed by the thoroughness, discipline and diligence of the entire examination and approval process, and are attentive to the comments and recommendations from all parties." Roosen continued. "After the many Osisko-initiated consultations conducted, the subsequent efforts of the BAPE have helped us learn even more about the concerns of the Malartic and Abitibi-Temiscamingue communities. We will take all this into sincere consideration as we now proceed with the final steps of the project and transition to become the country's newest intermediate producing gold mining company."
Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Canadian Malartic deposit currently represents one the biggest gold reserves in Canada for a single deposit, and is still growing through ongoing drilling on new mineralized zones. Current reserves for the Canadian Malartic property are 6.28 million ounces, plus (including the Barnat deposit) a measured and indicated resource of 3.65 million ounces and an inferred resource of 0.84 million ounces. Osisko is well-funded with approximately $400 million on hand.
Cautionary Notes Concerning Estimates of Mineral Resources
This news release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that further work on the stated resources will lead to mineral reserves that can be mined economically.
Forward Looking Statements
Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all technical, economical and financial conditions will be met in order to put the Canadian Malartic Project into commercial production, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, access to skilled consultants, mining development and mill production personnel, results of exploration and development activities, the Corporation's limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions.
These factors are discussed in greater detail in the Corporation's most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. The Corporation cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Corporation's forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.
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