OSISKO RELEASES NEW RESOURCE ESTIMATE FOR
CANADIAN MALARTIC PROJECT
Global M&I resource increased by
1.28 million ounces gold
Montreal,
Quebec, December 14, 2009 - Osisko
Mining Corporation (OSK: TSX, EWX: Deutsche Boerse)
is pleased to provide an updated resource estimate for its 100%-owned
Canadian Malartic project. This new estimate
includes the combined, previously-reported resources of the Canadian Malartic deposit and the South Barnat
deposit, as well as additional resources defined from ongoing drilling
within the previously estimated pit shells and immediately southeast of
the pit shells.
Key points:
� Global Measured and Indicated (�M&I�) resource is now 11.20
million ounces gold, up 1.28 million ounces from the total of previously
released resources. Additional 470,000 ounces remains in the inferred
category.
� Tot al in-pit M&I resource is now 9.17 million ounces at a
grade of 1.20 grams per tonne gold, based on a Whittle-optimized pit
shell using a gold price of US$825 per ounce and a corresponding lower
cut-off grade of 0.34 grams per tonne gold. This represents an increase
of 770,000 ounces gold over the total of previous in-pit M&I resource
estimates released by Osisko.
� At a US$1100 per ounce gold price, the in-pit M&I resource
increases to 10.37 million ounces at an average grade of 1.05 grams per
tonne gold, adding more than one million ounces compared to the US$825
pit shell.
� At a conservative lower cut-off of 1 gram per tonne, the in-pit
M&I resource is a robust 6.72 million ounces at a grade of 1.85 grams
per tonne gold.
� The infill drilling between the Canadian Malartic
and South Barnat deposits has been successful
in joining the two deposits, allowing for a single pit design to evaluate
both deposits. The mineralized system is still open at depth.
� Economic valuation within an optimized engineered pit design will
be provided in an updated reserve statement for the entire project by the
end of January 2010, which will include revised mining scheduling and
stockpiling aimed at maximizing head grade in the early years of
production.
� The current mine schedule, as indicated in the previously released
Feasibility Study, only includes 6.28 million ounces of reserves at a
grade of 1.07 grams per tonne gold.
Belzile
Solutions Inc. of Rouyn-Noranda, Qu�bec
("BSI") are the independent resource
estimate consultants for Osisko, and have
authorized the release of the following estimates. The global Measured
and Indicated (�M&I�) resource is 11.20 million ounces of gold at an
average undiluted grade of 1.10 g/t Au, with an additional 0.47 million
ounces gold at an average grade of 0.73 g/t Au in the Inferred category,
based on a lower cut-off grade of 0.34 g/t Au. The tables below summarize
the BSI estimates using variable lower cut-off grades:
Canadian
Malartic Project global resource estimates
|
Measured
|
Indicated
|
|
Total� M&I
|
|
Grade�� (g/t)
|
Tonnes�� (M)
|
Oz�
(M)
|
Grade�� (g/t)
|
Tonnes�� (M)
|
Oz�
(M)
|
Cut-off�� (g/t)
|
Grade�� (g/t)
|
Tonnes�� (M)
|
Oz�
(M)
|
|
0.93
|
33.5
|
1.00
|
1.12
|
282.7
|
10.20
|
0.34
|
1.10
|
316.2
|
11.20
|
|
1.09
|
25.5
|
0.89
|
1.33
|
219.2
|
9.35
|
0.50
|
1.30
|
244.7
|
10.25
|
|
1.21
|
21.0
|
0.81
|
1.45
|
189.4
|
8.83
|
0.60
|
1.43
|
210.4
|
9.64
|
|
1.33
|
17.1
|
0.73
|
1.56
|
166.3
|
8.35
|
0.70
|
1.54
|
183.4
|
9.08
|
|
1.46
|
14.1
|
0.66
|
1.66
|
148.5
|
7.92
|
0.80
|
1.64
|
162.6
|
8.58
|
|
1.58
|
11.8
|
0.60
|
1.75
|
133.4
|
7.50
|
0.90
|
1.74
|
145.1
|
8.10
|
|
1.70
|
9.9
|
0.54
|
1.84
|
120.5
|
7.11
|
1.00
|
1.83
|
130.3
|
7.65
|
|
Inferred
|
|
|
Grade�� (g/t)
|
Tonnes�� (M)
|
Oz� (M)
|
Cut-off�� (g/t)
|
|
0.73
|
20.0
|
0.47
|
0.34
|
|
0.97
|
11.5
|
0.36
|
0.50
|
|
1.12
|
8.5
|
0.31
|
0.60
|
|
1.30
|
6.2
|
0.26
|
0.70
|
|
1.46
|
4.8
|
0.22
|
0.80
|
|
1.63
|
3.8
|
0.20
|
0.90
|
|
1.79
|
3.1
|
0.18
|
1.00
|
BSI, in collaboration with G Mining Services Inc. of Montreal, also
estimated an in-pit M&I resource within a single Whittle-optimized
pit shell using a base case gold price of US$825 per ounce. The combined
in-pit M&I resource for the Canadian Malartic and South Barnat
deposits is 9.17 million ounces of gold at an average undiluted grade of
1.20 g/t Au, with an additional 0.11 million ounces gold at an average
grade of 0.90 g/t Au in the inferred category, based on a derived lower
cut-off grade of 0.34 g/t Au. The tables below summarize the in-pit
estimates using variable lower cut-off grades:
Canadian
Malartic Project resource estimates within US$825 Whittle pit shell
|
Measured
|
Indicated
|
|
Total� M&I
|
|
Grade�� (g/t)
|
Tonnes�� (M)
|
Oz�
(M)
|
Grade�� (g/t)
|
Tonnes�� (M)
|
Oz�
(M)
|
Cut-off�� (g/t)
|
Grade�� (g/t)
|
Tonnes�� (M)
|
Oz�
(M)
|
|
0.97
|
27.5
|
0.86
|
1.23
|
210.6
|
8.31
|
0.34
|
1.20
|
238.1
|
9.17
|
|
1.13
|
21.4
|
0.78
|
1.40
|
174.2
|
7.82
|
0.50
|
1.37
|
195.6
|
8.60
|
|
1.25
|
17.6
|
0.71
|
1.51
|
154.3
|
7.47
|
0.60
|
1.48
|
172.0
|
8.18
|
|
1.38
|
14.5
|
0.65
|
1.61
|
138.0
|
7.13
|
0.70
|
1.59
|
152.6
|
7.78
|
|
1.50
|
12.2
|
0.59
|
1.70
|
125.3
|
6.83
|
0.80
|
1.68
|
137.5
|
7.42
|
|
1.62
|
10.3
|
0.54
|
1.78
|
114.1
|
6.52
|
0.90
|
1.77
|
124.5
|
7.06
|
|
1.75
|
8.7
|
0.49
|
1.86
|
104.4
|
6.23
|
1.00
|
1.85
|
113.1
|
6.72
|
|
Inferred
|
|
|
Grade�� (g/t)
|
Tonnes�� (M)
|
Oz� (M)
|
Cut-off�� (g/t)
|
|
0.90
|
3.8
|
0.11
|
0.34
|
|
1.05
|
2.9
|
0.10
|
0.50
|
|
1.18
|
2.3
|
0.09
|
0.60
|
|
1.31
|
1.8
|
0.08
|
0.70
|
|
1.42
|
1.6
|
0.07
|
0.80
|
|
1.55
|
1.3
|
0.06
|
0.90
|
|
1.67
|
1.1
|
0.06
|
1.00
|
Sensitivity of the in-pit M&I resource to gold price is as follows
(inferred excluded):
|
Gold
Price (US$)
|
Grade (g/t)
|
Tonnes (M)
|
Oz� (M)
|
Strip Ratio
(Waste/Ore)
|
|
$700
|
1.31
|
195.8
|
8.25
|
2.01
|
|
$825
|
1.20
|
238.1
|
9.17
|
1.91
|
|
$900
|
1.15
|
255.8
|
9.48
|
1.84
|
|
$1000
|
1.09
|
287.8
|
10.07
|
1.81
|
|
$1100
|
1.05
|
308.0
|
10.37
|
1.76
|
Using an ore-based cost of
US$6.38 per tonne (as estimated from costs in the Canadian Malartic
Feasibility Study), the corresponding in-pit cut-off grade for the base
case US$825/oz Whittle shell is 0.34 g/t gold, giving the resource
distribution shown in the following table:
Distribution
of Canadian Malartic Project resource estimates using base case
US$825 Whittle pit shell with a
0.34 g/t Au lower cut-off grade
|
|
Total� M&I
|
Inferred
|
|
|
Grade (g/t)
|
Tonnes (M)
|
Oz� (M)
|
Grade (g/t)
|
Tonnes (M)
|
Oz� (M)
|
|
Global
|
1.10
|
316.2
|
11.20
|
0.73
|
20.0
|
0.47
|
|
(In-Pit CM)
|
1.08
|
198.9
|
6.88
|
0.77
|
2.9
|
0.07
|
|
(In-Pit Barnat)
|
1.82
|
39.3
|
2.30
|
1.36
|
0.9
|
0.04
|
|
In-Pit Total
|
1.20
|
238.1
|
9.17
|
0.90
|
3.8
|
0.11
|
|
Out-of-Pit
|
0.81
|
78.1
|
2.03
|
0.69
|
16.2
|
0.36
|
Sean Roosen, President and
CEO of Osisko, commented: �We are
very pleased with the new pit-constrained M&I resource estimate for
the Canadian Malartic Project, which has achieved an increase of 770,000
ounces of gold with respect to the total of previous estimates, while
maintaining a relatively low strip ratio of 1.91. The new in-pit M&I
resource estimate of 9.17 million ounces is very reliable since it is
based on processing and mining costs that were used in the Feasibility
Study.�
�We anticipate that over 95% of this
resource is going to be converted into reserves for the entire project,
once a new reserve estimate is calculated in January 2010. We anticipate
that the new engineered pit will provide a significant increase in mine
life and allow for mining sequencing and stockpiling aimed at increasing
head grade and overall gold production in the early years in order to
accelerate pay back of capital.
Finally, it is worth noting that even
at a cut-off of 1 g/t Au, we are now looking at a total in-pit M&I
resource of 6.72 million ounces gold at an average grade of 1.85 g/t Au,
which makes this resource very robust at significantly lower gold prices.
This means that 73 percent of the overall 9.17 million ounce in-pit
resource should have an average grade 1.85 g/t Au. In the business of
open pit gold mining, this is a relatively high grade disseminated
deposit with a surrounding low grade halo. It lowers commodity-driven
business risk significantly by allowing for mining flexibility.�
Details on the parameters of the resource estimates are as follows:
� The database comprised a total of 228,500 metres of drilling
obtained from historical drilling (Canadian Malartic Mines and Lac
Minerals) and from approximately 561,200 metres of drilling completed and
assayed by Osisko as of the end of September 2009 on a maximum 30 m x 30
metre grid. (All NQ or HQ core assays reported by Osisko were obtained by
standard 50 g fire assaying-AA finish or gravimetric finish at ALS Chemex
laboratories in Val d'Or, Quebec.)
� The database also comprised a total of 525,105 assays with an
average of 1.38 metre per sample for a total of 726,500 assayed metres.
� The estimates were done using Ordinary Kriging (OK) as the
geostatistical interpolation method based on 5.0 metre analytical
composites. Resources were also estimated using Inverse Distance Squared
(ID2) interpolation, which produced similar results, i.e. less than 2
percent difference in total ounces at all cut-offs.
� Calculations are based on original samples cut to a maximum of 10
g/t to 70 g/t Au depending on the domain. This resulted in an approximate
1.7 percent reduction in the overall gold content. All 5m composites are
calculated based on cut original data.
� Testing and validation of cut historical Canadian Malartic (CM)
drill data using modern (Osisko) drill data revealed negligible bias in
the higher grade domains but significant bias (minimum 25%) in the lower
grade domains. CM historical data in lower grade domains were therefore
discarded for resource estimate and resource classification purposes. CM
historical data were used for resource estimate purposes in the higher
grade domains but not retained for measured resource classification. Lac
Minerals drill core was mostly re-assayed and these data were retained
for resource estimate and resource classification purposes.
� All estimates are based on a Parent Cell dimension of 20 metres E,
10 metres N and 10 metres height with estimation parameters determined by
variography.
� Geological interpretation identified fourteen high grade domains
(higher than 1.0 g/t Au) , six low grade domains (between 0.4 and 1.0 g/t
Au) and a broad lower grade envelope (greater than 0.2 g/t Au).
� Underground voids were modeled from historical mine plans and adjusted
according to positions of drill intersections in stopes and drifts. Void
volumes of stopes were increased by one metre along all edges to
compensate for uncertainties. The void models were then used to deplete
the resource estimate. All samples located within the voids were then
removed from the estimate.
� Tonnage estimates are based on rock densities of 2.69 tonnes/cubic
metre for the porphyry, 2.75 for altered sediments and 2.90 for altered
ultramafic rocks.
� The resource estimates using the lower cut-off of 0.34 g/t Au is
emphasized for reporting purposes as this is the in-pit cut-off estimated
for the US$825 Whittle shell.
� The US$825 Whittle shell has approximate maximum dimensions of
2,980 metres in length, 1,180 metres in width and a v ertical depth of
380 metres.
� The average gold recovery in this pit shell is 86.2%. Overall
slope angles based on feasibility level geotechnical studies (including
provisions for ramps) are between 43 and 55 degrees. Strip ratio is 1.91
for the in-pit resource corresponding to a lower cut-off of 0.34 g/t Au.
Economic valuation within an optimized engineered pit design will be
provided in an updated reserve statement for the entire project by the
end of January 2010, which will optimize the combined Canadian Malartic
and South Barnat pits. Should Osisko successfully prove up economic
reserves at South Barnat, additional steps will be taken to obtain the
necessary authorizations to mine the South Barnat deposit and integrate
it to the Canadian Malartic project. Additional studies are currently
under way to evaluate the deviation of highway 117 that will be required
for potential mining of the South Barnat deposit. This study will be
carried out in cooperati on with the Qu�bec Ministry of Transport and the
town of Malartic. The goal of the study will be to minimize the portion
of the highway to be relocated as well as the social impact to the
community.
The project out-of-pit M&I resource is currently estimated at 2.03
million ounces gold, and further pit optimizations using modified
variables, such as increased pit slopes or gold price, may allow for
eventual inclusion of some of this resource within the pit. Additional
drilling is required to upgrade the remaining inferred resources.
Osisko
Mining Corporation is currently developing the
Canadian Malartic gold project into a large-scale open pit, bulk-tonnage
mining operation. The Company is well-funded with $825 million in cash
resources and is carrying out an aggressive mine development, reserve
definition and exploration campaign. 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.
A NI 43-101 compliant, 7.7 million ounce gold M&I global resource
estimate (6.4 million ounce gold M&I in-pit resource) on the main
Canadian Malartic gold deposit was released on September 8, 2008 and has
been filed on SEDAR. A NI 43-101 compliant, 6.3 million ounce gold
Reserve estimate and Feasibility Study on the main Canadian Malartic gold
deposit was released on November 25, 2008 and has been filed on SEDAR. A
NI 43-101 compliant, 2.2 million ounce gold M&I global resource
estimate (2.0 million ounces gold M&I in-pit resource) on the South
Barnat gold deposit was released on June 2, 2009 and has been filed on
SEDAR.
Mr. Elz�ar Belzile, P. Eng. of BSI, Mr. Louis-Pierre Gignac, P. Eng. of G
Mining Services Inc. and Mr. Robert Wares, P. Geo. and Executive
Vice-President of Osisko, are the Qualified Persons who have reviewed
this news release and are responsible for the technical information
reported herein, including verification of the data disclosed.
Conference Call
Osisko will host a conference call on Monday, December 14 at 11:30 AM
Montreal time, where senior management will discuss the press release and
will be available to respond to questions from analysts and investors. Thos
e interested in participating in the conference call should dial in at
416-981-9000 (Toronto local and international), or 1-800-909-4145 (North
American toll free). An operator will direct participants to the call.
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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 that further work will
lead to mineral reserves that can be mined economicall y.
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 Proje ct 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 i n 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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