Advertisement
MONTREAL, QUEBEC -- (Marketwire) -- 01/24/13 -- Osisko Mining Corporation (the "Company" or "Osisko") (TSX: OSK)(FRANKFURT: EWX) today reports a preview of Canadian Malartic operational results for the quarter ended December 31, 2012 and announces 2013 operational guidance.
Highlights
-- Fourth quarter gold production of 101,544 ounces for year to date of 388,478 ounces-- Completion of crushing circuit expansion program with installation of the second pebble crusher
2013 Operating Guidance Highlights
-- Gold production between 485,000 and 510,000 ounces-- Direct cash costs are estimated between $780 to $825 per ounce-- Capital expenditures of $220 million
During the fourth quarter, the Company processed 4,088,021 tonnes at the Canadian Malartic mill at a grade of 0.87 g/t Au and recoveries of 88.8%. The average daily throughput rate of 44,435 tonnes per day was affected by 6 days of shutdown to complete the installation of the second pebble crusher and to make modifications to various conveying systems in the crushing and grinding circuits. Fourth quarter gold production totaled 101,544 ounces, bringing the gold production for the year to 388,478 ounces. In 2011, gold production totaled 200,137 ounces, including 19,505 ounces from pre-production. The Canadian Malartic Mine reached commercial production on May 19, 2011.
Production statistics for the year were as follows (excluding pre-production):
---------------------------------------------------------------------------- 2012 2011 ----------------------------------------------------Tonnes milled (t) 14,046,526 7,491,910Grade (g/t Au) 0.96 0.85Recovery (%) 89.4 87.7Ounces produced (oz) 388,478 180,633----------------------------------------------------------------------------
The 2012 gold production at the mill was affected by a fire in May, several shutdowns for the tie-in of two new cone crushing units and mill optimization modifications.
During the fourth quarter, the mine production was affected by delays in executing a significant blast (approximately 940,000 tonnes) which delayed access to the north sector of the pit thus limiting production. The blast occurred on October 27, 2012, however the delays affected the mine sequencing and will have an impact on the early 2013 mine production. The pit development continued to progress, providing the mining development with greater flexibility. Earlier in 2012, the mine production was affected by defective booster units, which impacted negatively material handling activities.
The Company is working with the Quebec Government to modify certain parameters in its operating permits to improve its efficiency. Several meetings have been held over the past three months in a collaborative mode.
Production costs for the fourth quarter are estimated at approximately $903 per ounce (estimate subject to change as amount is unaudited), compared to $952 per ounce in 2011. For the year to date the production cost are estimated at $907 per ounce.
