More Gold For Osisko At Canadian Malartic

With a feasibility study completed and 6.3 million oz. of gold reserves already outlined in the main ore-body at its Canadian Malartic deposit, in Quebec, Osisko Mining (OSK-T, OSKFF-O) wants more.

The Montreal-based company has been drilling outside of the main zone at Canadian Malartic, about 20 km west of Val d’Or, and is seeing some impressive results.

Its latest assays come from a definition drill program at the South Barnat zone — a separate gold zone that sits northeast of the Canadian Malartic deposit.

Intervals were highlighted by 2 grams gold per tonne over 182.4 metres in hole 3233; 2.76 grams gold over 108.7 metres in hole 3219; and 2.17 grams gold over 158.5 metres in hole 3242.

Osisko also reported higher-grade intersections, including 4.13 grams gold over 37.5 metres in hole 3221; and 3.87 grams gold over 51.3 metres in hole 3243.

The company says hole 3219 is of particular interest because it was drilled as the downward extension of a previous hole that returned 7.61 grams gold over 57 metres. The new hole tested to a depth of 420 metres.

Both holes hit mineralization situated between old underground workings of the East Malartic mine.

Osisko says the drill program overall suggests a strike length of 850 metres for South Barnat with an average true width between 30 and 120 metres.

The zone is open along strike to the east, where it merges with the old East Malartic mine, and currently extends to depths of 250-400 metres in the southeastern portion, where the system is still open at depth.

Osisko says south of a fault contact, the deposit is made up of disseminated gold mineralization comprised of multiple sub-vertical, tabular sub-zones hosted in silicified greywackes of the Pontiac Group. North of the fault, mineralization is hosted in both porphyry dykes and schistose, carbonated and biotitic ultramafic rocks. Porphyry dykes also host late quartz veins containing visible gold.

Eight drills are currently working on the property, with five dedicated to completing the 130,000-metre in-fill drilling at South Barnat. Osisko expects to be finished there by mid- February.

In late November, Osisko released a feasibility study and a reserve estimate that put 183 million tonnes grading 1.07 grams gold for 6.3 million oz. gold in the proven and probable reserve category at Canadian Malartic.

The estimate did not include the South Barnat zone or any other mineralized zone located outside the main deposit.

Osisko is currently developing Canadian Malartic along with adjacent mineralized zones into a large-scale, open pit, bulk-tonnage mining operation. The company’s shares recently traded at $4.65 in a 12-month range of $1.40-6.29.