Osisko picks up Canadian Malartic (November 08, 2004)

A property deal with a private vendor has given Osisko Exploration (OSK-V) an option on the Canadian Malartic property, 25 km west of Val d’Or, Que.

Osisko makes staged cash payments of $80,000 to the vendor by the end of June 2005, to earn a 100% interest in the 14.7-sq.-km property. Barrick Gold (ABX-T) retains a net smelter return interest linked to the price of gold, and ranging between 2% and 3%. Osisko can buy out half that NSR for between $1 million and $1.5 million.

Canadian Malartic produced 1.1 million oz. gold between 1935 and 1965, from 9.9 million tonnes grading 3.4 grams gold per tonne. There are six known zones of near-surface mineralization on the property, all drilled by Lac Minerals in the 1980s before that company was taken over by Barrick.

Osisko plans to drill to block out a resource in the near-surface zones and also to test at depth for possible stockwork gold mineralization.