Osisko increases gold reserve at Canadian Malartic to 10.7 million ounces

Osisko Mining Corporation (TSX:OSK)(FRANKFURT:EWX) is pleased to provide an updated reserve and resource estimate for its 100%-owned Canadian Malartic project. This new estimate, calculated at US$1000 gold, combines the previously-reported US$825 reserves and resources of the Canadian Malartic (CM) and South Barnat deposits (see February 10 2010 press release) with new resources defined from the ongoing drill program, including the Barnat Extension and Gouldie Zones.

Belzile Solutions Inc. of Rouyn-Noranda, Qu├ębec ("BSI") and G Mining Services of Montreal, the independent resource/reserve estimate consultants for Osisko, have authorized the release of the following estimates. Highlights include:

  • The open pit Proven & Probable reserve has increased to 10.71 million (M) ounces gold at a fully diluted average grade of 0.97 g/t, a 1.74 million ounce or 19.3 percent increase relative to the previously-published estimate of 8.97 million ounces (see February 10, 2010 press release);
  • Global Measured and Indicated (M&I) resources above a cut-off grade of 0.30 g/t Au have increased to 11.80 M ounces gold, a 600,000 ounce or 5.4 percent increase relative to the previously-published estimate of 11.20 M ounces (see December 14, 2009 press release);
  • Global Inferred resources above a cut-off grade of 0.30 g/t Au have increased to 850,000 ounces gold, a 510,000 ounce or 150% percent increase relative to the previously-published estimate of 340,000 ounces (see December 14, 2009 press release);
  • In-pit Inferred resources (not included in reserves) consist of an additional 197,000 oz gold (9.0 M tonnes at 0.68 g/t Au), which was considered as waste and could potentially be converted to reserves with additional drilling.
  • Recoverable gold has increased by 1.47 M ounces to 9.19 M ounces (at 85.8% recovery) from 7.72 M ounces (at 86.1% recovery; see February 10, 2010 press release).
  • 7.21 M ounces of gold in the in-pit M&I resource category, representing 67.3 percent of the reserve, has an average grade of 1.80 g/t using a very conservative cut-off grade of 1 g/t gold.
  • At a gold price of US$1400 per ounce, the in-pit diluted M&I resource increases to 11.80 M ounces of gold at an average grade of 0.84 g/t Au.
  • These reserve/resource estimates were calculated from a robust database comprising 636,200 metres of drilling completed by Osisko since March 2005, as well as 228,500 metres of historical drilling that was tested and validated.

Read the full news release here.
Image from Osisko Mining's website showing Canadian Malartic project.