Osisko cutting near-surface gold at Canadian Malartic

A near-surface historical resource on Osisko Exploration‘s (OSK-V) Canadian Malartic gold property 25 km west of Val d’Or, Quebec, is shaping up to be much larger than previously thought.

Osisko has cut significant gold at levels below those historically drilled and over a minimum 415-metre distance (almost twice the length of the area where the resource was previously calculated).

Thirteen vertical holes tested the F zone; four were drilled outside of the resource area. All cut gold values greater than one gram gold over significant widths ranging from 51-163 metres beginning at 0.8-31 metres from surface.

Seven of the holes cut grades from 1.58-3.13 grams gold over widths of 15-138 metres; one of these intervals included a 7-metre intercept grading 5.2 grams gold per tonne.

The average grades were calculated using a 0.5-gram gold over 10-metre cutoff.

One hole cut 1.5 metres grading 85.7 grams gold per tonne at 81 metres depth. This intercept is related to a visible-gold bearing, chlorite-calcite pyrite vein. When this high-grade is cut to 30 grams gold per tonne, the hole grades 1.33 grams gold per tonne over 71.7 metres (uncut the grade is 2.5 grams gold).

Hole 661 cut 43 metres grading 1.45 grams gold followed by 102 metres grading 1.93 grams gold beginning at 129 metres from surface. The deeper intersection is below the lower limit of the historical resource.

A couple of holes stopped in old underground workings. The Canadian Malartic mine operated from 1935-1965 and produced over one million oz. gold from 9 million tonnes grading 3.37 grams gold per tonne.

The zone is hosted by potassic-altered and locally silicified, granodiorite porphyry and sediments, which contain disseminated pyrite and fine gold.

The company is trying to firm up the F zone resource, which is one of five known near-surface mineralized zones. Prior to 43-101, the F zone was estimated to contain a resource of 2 million tonnes grading 1.78 grams gold per tonne.

The 15-sq.-km property is subject to a 2-3% sliding-scale net smelter royalty payable to Barrick Gold (ABX-T).