Montreal-based Osisko Mining (TSX:OSK)(EWX.F) announced on Tuesday in a rather cryptic release that it has acquired through staking approximately one million hectares of ground in an – as yet unnamed – "emerging gold rich mineral belt in Mexico".
Osisko's primary asset is its producing Canadian Malartic Gold Mine in Quebec and the company is also advancing the Hammond Reef Gold Project in Northern Ontario.
The company is planning a 10,000 metre drilling programme in the area – about a third the size of Belgium or 2.5 times the emirate of Dubai – and should the Mexican prospects prove fruitful it could be a game changer for the company.
"A systematic greenfields exploration program was initiated in late 2011, starting with a high-density stream sediment survey comprising over 4,000 samples.
"Detailed mapping, geochemistry and geophysics were subsequently completed over identified anomalous areas.
"The work to date has identified a large magmatic-hydrothermal system with a coincident five square kilometre Au-Cu-Ag soil and lithogeochemical anomaly, all located within a 14 square kilometre hydrothermal alteration zone.
"This target is currently undergoing preparatory work for a preliminary 10,000 metre drill program. Two additional anomalies were also identified, and work is underway to bring them to drill-ready status.
"Sean Roosen, President and Chief Executive Officer, commented: "We are excited by the preliminary results of our exploration efforts in Mexico. We believe that we can deliver significant value to our shareholders through systematic greenfields exploration programs, and continue to work towards building the team and the knowledge base to pursue significant new gold discoveries".
Osisko's stock was trading down over 3% on Tuesday on a generally weak day on the market. The company is worth $3.75 billion on the Toronto big board.