Osisko extends Canadian Malartic mineralization (May 29, 2006)

Abitibi explorer Osisko Exploration (OSK-V, OSXLF-O) has finished off another phase of drilling at the Canadian Malartic gold project south of Malartic, Que., with indications of more mineralization to the south and east of what had already been outlined on the property.

Osisko’s gold-porphyry interpretation of the deposit is being reinforced by the new drilling, which has intersected long intervals of low-grade gold mineralization.

Drilling on a 60-by-60-metre grid on the western end of the porphyry body, Osisko’s third phase of exploration on the project, has established that mineralization is generally continuous between previously drilled holes, with thicknesses mostly in the 30- to 100-metre range. Gold grades are mainly between 1 and 1.5 grams, though some holes have shown higher; among the better averages over longer intersections were a 103.5-metre interval running 1.9 grams gold per tonne and a 179-metre interval running 1.5 grams.

True to previous form, there were also local high-grade hits over much narrower widths. One intersection ran 13.7 grams per tonne over 3 metres, part of a 99-metre interval that averaged 0.9 gram.

Several holes in that program that were collared south of previous drilling intersected the mineralized body as well. One intersected 50.5 metres that averaged 2.9 grams gold per tonne, while another cut 74.5 metres grading 1.7 grams gold.

A new, fourth phase of drilling is testing the eastern end of the porphyry body on a grid pattern. Results are back from six holes so far, including four that tested areas south of the previously drilled limit of the mineralization.

Those four holes generally averaged 0.7 gram to 1 gram gold per tonne over widths of 60 to 110 metres, or cut multiple zones of similar cumulative widths.

One infill drill hole cut the best intersection of the new drilling campaign, a 165-metre interval that ran 1.2 grams gold per tonne.

Osisko’s compilation of historical drill data from Lac Minerals and Sladen Malartic Mines has already shown that the mineralized zone extends on to the Sladen property about 420 metres beyond the Canadian Malartic-Sladen property line. Its thickness decreases from about 70 metres at the property boundary to about 30 metres at the eastern end of the zone.

Several holes in the program have intersected old workings of the Canadian Malartic underground mine. The loss of the holes once they intersect old workings means it is possible that more mineralized rock may exist at depth, but could not be sampled.

Osisko plans further drilling in the central part of the deposit, which extends northward under part of the Malartic townsite. Four drills will do about 10,000 metres of drilling, with those operating in town restricted to a 12-hour day shift.

A resource estimate by consulting firm Roscoe Postle Associates is scheduled for the third quarter of the year; it is likely that only an inferred resource could be calculated at that stage. An indicated resource, using the entire database, could be done by early 2007.