Hammond Reef
The Company completed definition drilling work on the advanced stage Hammond Reef project. Osisko has completed over 629,000 metres at Hammond Reef, is finishing an EIA that will be filed in accordance with the accepted terms of reference and will table a feasibility study in the first half of 2013. The project is located approximately 20 kilometres from grid power, and is located 23 kilometres north of the town of Atikokan. Osisko signed a Resource Sharing Agreement with eight first nations groups in December 2010, as well as a Memorandum of Understanding with the Metis Nation of Ontario in April 2012.
Osisko issued a resource estimate prepared by SGS on January 28, 2013, which is summarized as follows:
Hammond Reef Global Resource Estimates
------------------------------------------------------------------------- Cut-offCategory Grade (g/t) Tonnes (M) (g/t) Oz (M)-------------------------------------------------------------------------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--------------------------------------------------------------------------------------------------------------------------------------------------
G Mining Services Inc of Montreal, in collaboration with SGS, also estimated resources within a Whittle-optimized pit shell using a base case gold price of US$1,400 per ounce and pit limits that are unconstrained by lakeshores. The optimization yielded two distinct pits separated by approximately 200 metres with an average strip ratio of 1.01. The total in-pit M&I resource for the Hammond Reef gold deposit is 5.31 million ounces of gold at an average undiluted grade of 0.72 g/t Au, based on a derived lower cut-off grade of 0.31 g/t Au (west pit) and 0.33 g/t Au (east pit).
Hammond Reef Undiluted Resource Estimates within US$1,400 Whittle pit shell
--------------------------------------------------------------------------- Cut-offCategory Grade (g/t) Tonnes (M) (g/t) Oz (M)---------------------------------------------------------------------------Measured 0.75 175.3 0.32 4.25---------------------------------------------------------------------------Indicated 0.61 54.1 0.32 1.06---------------------------------------------------------------------------M+I 0.72 229.5 0.32 5.31---------------------------------------------------------------------------Inferred 0.65 13.3 0.32 0.28------------------------------------------------------------------------------------------------------------------------------------------------------
Exploration
The Company continues to pursue value creation through the discovery of new ore deposits. Osisko has several agreements and has staked properties in various gold camps within the Americas.
