Advertisement
MONTREAL, QUEBEC -- (Marketwire) -- 01/28/13 -- Osisko Mining Corporation (TSX: OSK)(FRANKFURT: EWX) is pleased to provide an updated resource estimate for its 100%-owned Hammond Reef gold project, located near Atikokan, Ontario. Additional drilling by Osisko has allowed for upgrading the bulk of the resource to the measured and indicated (M&I) categories, which will lead to conversion to reserves once the ongoing feasibility is completed. This update reports both global and in-pit resources in all categories.
Key points:
-- Global M&I resources currently stand at 5.43 million ounces gold at an average grade of 0.86 g/t Au and the global inferred resource stands at 1.75 million ounces gold at an average grade of 0.72 g/t Au (based on 0.50 g/t Au lower cut-off; see table below).-- Global M&I resources currently stand at 7.47 million ounces gold at an average grade of 0.65 g/t Au and the global inferred resource stands at 3.12 million ounces gold at an average grade of 0.52 g/t Au, based on a 0.30 g/t Au lower cut-off; see table below).-- The in-pit M&I resource is now 5.31 million ounces at an undiluted grade of 0.72 g/t gold, based on a Whittle-optimized pit shell using a gold price of US$1,400 per ounce. The in-pit inferred resource adds 0.28 million ounces at an undiluted grade of 0.65 g/t Au. Overall pit parameters include an average lower cut-off grade of 0.32 grams per tonne gold and a low waste/ore strip ratio of 1.01.-- At US$2,000 per ounce gold, the in-pit M&I resource increases to 7.87 million ounces and the inferred resource increases to 2.12 million ounces at an average grade of 0.56 grams per tonne gold.-- The A (Main) and Mitta Zones form a contiguous deposit (west pit), while the 41 zone is separate (east pit). The system was modeled as two pits with a total strike length of 2500 metres (sections 870E to 3370E). Exploration drilling around the Mitta and A zones has been successful in extending the deposit in the down-dip (southeast) direction, to a maximum distance (along dip) of 850 metres.
Sean Roosen, President and CEO of Osisko, commented: "We are very pleased with Osisko's updated resource estimate for the Hammond Reef Project, which has achieved a significant increase with respect to the initial acquisition from Brett Resources estimate. It is important to note that the new in-pit resource for Hammond Reef has a low strip ratio of 1.01 and is quite robust, as it is based on current processing and mining costs at Canadian Malartic, adjusted for Ontario power rates. With over 625,000 metres of drilling completed, 76% of the in-pit resource is contained in the measured category, which is the highest achievable confidence level."
SGS Canada Inc. of Montreal, Quebec ("SGS") are the independent resource estimate consultants who have authorized the release of the following estimates. Global M&I resources currently stand at 5.43 million ounces gold at an average grade of 0.86 g/t Au and the global inferred resource stands at 1.75 million ounces gold at an average grade of 0.72 g/t Au. The table below summarizes the SGS estimates using variable lower cut-off grades:
Hammond Reef Global Resource Estimates----------------------------------------------------------------------------Category Grade (g/t) Tonnes (M) Cut-off (g/t) Oz (M)----------------------------------------------------------------------------Measured 0.67 212.9 0.2 4.60----------------------------------------------------------------------------Indicated 0.44 268.7 0.2 3.84----------------------------------------------------------------------------M+I 0.54 481.6 0.2 8.44----------------------------------------------------------------------------Inferred 0.44 271.8 0.2 3.80----------------------------------------------------------------------------Measured 0.74 184.7 0.3 4.38----------------------------------------------------------------------------Indicated 0.55 174.4 0.3 3.09----------------------------------------------------------------------------M+I 0.65 359.1 0.3 7.47----------------------------------------------------------------------------Inferred 0.52 185.2 0.3 3.12--------------------------------------------------------------------------------------------------------------------------------------------------------Measured 0.90 123.5 0.5 3.59----------------------------------------------------------------------------Indicated 0.78 72.9 0.5 1.83----------------------------------------------------------------------------M+I 0.86 196.4 0.5 5.43----------------------------------------------------------------------------Inferred 0.72 75.7 0.5 1.75--------------------------------------------------------------------------------------------------------------------------------------------------------Measured 1.09 76.8 0.7 2.70----------------------------------------------------------------------------Indicated 1.03 32.3 0.7 1.07----------------------------------------------------------------------------M+I 1.07 109.2 0.7 3.77----------------------------------------------------------------------------Inferred 0.96 27.4 0.7 0.84----------------------------------------------------------------------------Measured 1.29 46.8 0.9 1.94----------------------------------------------------------------------------Indicated 1.28 16.0 0.9 0.66----------------------------------------------------------------------------M+I 1.28 62.8 0.9 2.59----------------------------------------------------------------------------Inferred 1.22 11.0 0.9 0.43----------------------------------------------------------------------------Measured 1.39 36.2 1.0 1.61----------------------------------------------------------------------------Indicated 1.40 11.6 1.0 0.52----------------------------------------------------------------------------M+I 1.39 14.7 1.0 2.13----------------------------------------------------------------------------Inferred 1.35 7.5 1.0 0.32----------------------------------------------------------------------------
