Osisko Discovers Two New Gold-Copper Zones at Upper Beaver

High-Grade Results Include 9.3 g/t Au with 1.7% Cu over 18.1 Metres

Marketwired

MONTREAL, QUEBEC--(Marketwire - Mar 21, 2013) - Osisko Mining Corporation (OSK.TO)(EWX.F) ("Osisko") is pleased to announce that new drilling at the Upper Beaver gold project located in Kirkland Lake, Ontario has led to the discovery of two new gold-copper zones.

The following intersections highlight high-grade results from the two new discoveries:

  • East Basalt Zone Discovery: 9.3 g/t Au with 1.7% Cu over 18.1 metres (hole UB13-284) and 2.2 g/t Au with 0.5% Cu over 17.8 metres (hole UB13-287);
  • North Q Zone Discovery: 11.0 g/t Au with 1.6% Cu over 2.0 metres (hole UB13-282);

Additional new results from infill drilling on previously known mineralized zones include the following highlights: 3.2 g/t Au with 0.8% Cu over 30.0 metres (UB13-278), 16.1 g/t Au with 8.8% Cu over 3.0 metres and 11.4 g/t Au with 3.3% Cu over 3.0 metres (hole UB13-280) from the North Basalt Zone and 5.4 g/t Au with 0.5% Cu over 59.0 metres (hole UB13-262W4) from the Porphyry West Zone.

The table below outlines the results of 10 new holes completed in 2013 as part of the ongoing exploration and in-fill resource definition drill program at Upper Beaver:

Hole # From (m) To (m)   Interval (m) Cu (%)   Au (g/t) Zone
New zones                
UB13-279 92.0 93.0   1.0 0.22   0.81 East Basalt
UB13-281 120.0 123.0   3.0 0.18   3.16 East Basalt
UB13-284 147.0 165.1   18.1 1.70   9.30 East Basalt
including 154.0 165.1   11.1 2.75   13.05 East Basalt
UB13-287 170.0 187.8   17.8 0.50   2.20 East Basalt
UB13-282 174.0 177.0   3.0 0.89   2.34 North Q
and 185.0 192.0   7.0 trace   1.28 North Q
and 264.0 272.0   8.0 0.56   3.20 North Q
including 269.0 271.0   2.0 1.57   11.00 North Q
and 311.0 322.0   11.0 0.59   0.91 North Q
UB13-288 177.0 182.0   5.0 0.12   1.46 North Q
and 196.0 199.0   3.0 1.53   2.56 North Q
and 277.0 291.0   14.0 0.30   1.84 North Q
including 280.0 284.0   4.0 0.75   4.40 North Q
Infill holes                
UB13-262W4 812.0 871.0   59.0 0.53   5.43 Infill - Porphyry West
including 829.0 844.0   15.0 1.03   14.60 Infill - Porphyry West
UB13-276 333.0 334.0   1.0 1.32   4.83 North Basalt
and 423.0 427.0   4.0 trace   1.48 North Basalt
UB13-278 360.0 390.0   30.0 0.80   3.20 North Basalt
including 364.0 368.0   4.0 1.70   9.70 North Basalt
and 370.0 380.0   10.0 0.90   2.80 North Basalt
and 385.0 390.0   5.0 1.00   3.80 North Basalt
UB13-280 447.0 450.0   3.0 8.81   16.10 North Basalt
and 479.0 482.0   3.0 3.23   11.40 North Basalt

New Discoveries: East Basalt Zone and the North Q Zone

Step-out exploration drilling in the first quarter of 2013 has intersected two new gold-copper discoveries: the East Basalt Zone and the North Q Zone, both occurring in mafic volcanic rocks adjacent to the Upper Beaver Igneous Complex.

Four holes (UB13-279, -281, -284 and -287) drilled approximately 700 metres north-east of the Upper Beaver deposit have intersected new copper-gold mineralization in the East Basalt Zone. All four holes drilled on the same section intersected the mineralization starting at 75 m below surface. The most significant result was intersected in hole UB13-284 where a 18.1 metre thick continuous zone of gold and copper mineralization assayed 9.3 g/t Au with 1.7% Cu, included is an interval assaying 13.1 g/t Au with 2.8% Cu over 11.1 metres. Hole UB13-287 drilled below UB13-284 intersected 2.2 g/t Au with 0.5% Cu over 17.8 metres. The chalcopyrite-magnetite stringer mineralization at the East Basalt Zone dips steeply to the north and resembles the mineralization previously mined near the south-west margin of the igneous complex.

Two holes (UB13-282 and -288) drilled approximately 400 metres north-west of the Upper Beaver deposit intersected the new North Q Zone. The holes intersected multiple stringers of gold and copper mineralization approximately 200 metres below surface with significant intervals assaying 3.2 g/t Au with 0.6% Cu over 8.0 metres including 11.0 g/t Au with 1.6% Cu over 2.0 metres (hole UB13-182) and 1.84 g/t Au with 0.3% Cu over 14.0 metres including 4.4 g/t Au with 0.75% Cu over 4.0 metres (UB13-288).

North Basalt Zone

The North Basalt Zone is located approximately 800 metres north of the Upper Beaver deposit and was initially discovered by Queenston in 2005 in drill hole UB05-13 assaying 0.5 g/t Au over 8.0 metres. In 2006 drilling continued to target the zone including hole UB06-51 intersecting two intervals assaying 6.2 g/t Au with 1.3% Cu over 9.9 metres and 8.0 g/t Au with 1.0% Cu over 9.1 metres. Later in 2006 drilling at the North Basalt Zone was postponed as emphasis was focussed to the south to extend the primary Upper Beaver deposit.

Three new holes targeted the North Basalt Zone located west of the north-south trending diabase dyke. Hole UB13-278 intersected a 30.0 metre wide zone of mineralization assaying 3.2 g/t Au with 0.8% Cu including 9.7 g/t Au with 1.7% Cu over 4.0 metres at approximately 300 m below surface. Fifty metres below this interval hole UB13-280 intersected high grade mineralization assaying 16.1 g/t Au with 8.8% Cu over 3.0 metres and 11.4 g/t Au with 3.3% Cu over 3.0 metres.

In-fill Resource Definition

Drilling continues to confirm the continuity of the mineralization in the western portion of the main Upper Beaver deposit. At approximately 700 metres below surface hole UB13-262W4 intersected a thick zone of mineralization assaying 5.4 g/t Au with 0.5% Cu over 59.0 metres including 8.0 g/t Au with 0.7% Cu over 32.0 m. This interval is approximately 30 m above previous hole UB12-262W3 that cut a similar wide interval assaying 5.5 g/t Au with 0.6% Cu over 54.0 metres. (See News Release dated January 30, 2013).

About Upper Beaver

The Upper Beaver project is 100% owned by Osisko Mining Ltd., a wholly-owned subsidiary of Osisko. The Upper Beaver mine produced approximately 140,000 oz of gold and 12 million pounds of copper intermittently from 1912 to 1971, from 526,678 tonnes averaging 8.31 g/t Au and 1.03% Cu. Queenston commenced exploration on the property in 2005 and defined the first new mineral resource in 2009. Since 2005 three-hundred and eighty new diamond drill holes (including wedges) have been completed on the property, representing 236,874 metres of drilling.

A Preliminary Economic Assessment ("PEA") was completed on Upper Beaver in early 2012 (Queenston press release, February 16, 2012). The PEA studied the economics of building a 2,000 tonne per day mine/mill complex at Upper Beaver that would produce on average 120,000 oz of gold and 5.3 million pounds of copper annually with first production targeted in 2016. The permit to sink a new 1,300 m deep shaft was received in September 2012 and detailed engineering, procurement and shaft collar excavation have commenced. The PEA incorporated the May 2011 mineral resource for Upper Beaver, containing 3,074,000 t averaging 7.0 g/t Au (690,000 oz) with 0.5% Cu (36.6 M lbs) (Indicated) and 3,093,000 t averaging 6.2 g/t Au (616,000 oz) with 0.4% Cu (28.0 M lbs) (Inferred) (Queenston press release, May 4, 2011).

An updated mineral resource was announced on September 2012, increasing the indicated resource by 112% to 6,870,000 t averaging 6.6 g/t Au (1,461,000 oz) and 0.37% Cu (56 M lbs), and increasing the inferred resource by 16% to 4,570,000 t averaging 4.9 g/t Au (712,000 oz) and 0.32% Cu (32 M lbs) (Queenston press release, September 26, 2012).

The focus at Upper Beaver for 2013-2014 will be on the development of the 1,300 metre exploration shaft, including engineering, design and fabrication of the head frame and hoisting facilities budgeted at $70 million. The shaft collar has now been established to a depth of 26 metres and exploration on the deposit continues with six drills. In addition to the development program at Upper Beaver the Company has budgeted an additional $20 million for 2013 exploration in the Kirkland Lake gold camp.

Quality Control

True widths of reported intervals are interpreted based on drill-hole intercepts and interpreted orientations of intersected lithologies and are estimated at 65-80% of the core length interval. Assays are uncut. Intercepts occur within geological confines of major zones but have not been correlated to individual vein domains at this time. All NQ core assays reported were obtained by standard 30 g fire-assaying-AA finish or gravimetric finish at Swastika Laboratories of Swastika, Ontario. Drill program design, Quality Assurance/Quality Control and interpretation of results is performed by qualified persons employing a QA/QC program consistent with NI 43-101 and industry best practices. The Upper Beaver project is supervised by Mark Masson, P.Geo. Standards and blanks are submitted every 25 samples for QA/QC purposes by the Company as well as the lab. Approximately 5% of sample rejects and/or pulps are sent to secondary laboratories for check assaying.

Mr. William McGuinty, P.Geo. is Project Manager for Osisko Mining Ltd. and is the Qualified Person responsible for the technical information reported herein, including verification of the data disclosed. 

About Osisko

Osisko Mining Corporation operates the Canadian Malartic Gold Mine in Malartic, Quebec and is carrying out aggressive exploration and project development elsewhere in Canada and Latin America. 

Cautionary Notes Concerning Estimates of Mineral Resources

This news release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that that further work will lead to mineral reserves that can be mined economically.

Forward-Looking Statements

Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Osisko expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur including, without limitation, the continued development of the Upper Beaver project and more specifically the development of the exploration shaft. Although Osisko believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation, that all technical, economical and financial conditions will be met in order to achieve such events qualified by the foregoing cautionary note regarding forward looking statements, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, access to skilled consultants, mining development and construction personnel, results of exploration and development activities, Osisko''s limited experience with production and mining operations, uninsured risks, regulatory framework and changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in greater detail in Osisko''s most recent Annual Information Form and in the most recent Management Discussion and Analysis filed on SEDAR, which also provide additional general assumptions in connection with these statements. Osisko cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Osisko believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

Contact:
John Burzynski
Vice-President Corporate Development
(416) 363-8653
Sylvie Prud'homme
Director of Investor Relations
(514) 735-7131
Toll Free: 1-888-674-7563
www.osisko.com

Rates

View Comments (0)

Recommended for You

  • Tycoon buys 30 Rolls-Royces for Macau hotel

    A Hong Kong tycoon has placed the biggest ever order for Rolls-Royce cars, agreeing to buy 30 Phantoms to chauffeur guests at a luxury resort he's building in the global gambling capital of Macau. Stephen Hung's $20 million purchase surpasses the 14 Phantoms bought by Hong Kong's Peninsula Hotel in…

    Associated Press
  • Enjoy this refreshing Triple Play offer!

    Get FIOS TV Mundo starting at $79.99/mo. w/ no annual contract + 2-yr. price guarantee. Or sign for 2 yrs. & get a $300 prepaid Visa. Click here.

    AdChoicesVerizon FiOS ®Sponsored
  • Tycoon's arrest sends shock wave through Russia

    Tycoon's arrest sends shock wave through Russia MOSCOW (AP) — The arrest of a Russian telecoms and oil tycoon has sent shock waves through the country's business community, with some fearing a return to the dark days of a decade ago, when the Kremlin asserted its power by imprisoning the country's…

    Associated Press
  • Before You Buy Alibaba, Check Out 4 Top China Stocks

    Before You Buy Alibaba, Check Out 4 Top China Stocks While investors gear up for Alibaba Group 's (BABA) hotly anticipated initial public offering, don't forget about other Chinese stocks that are worth keeping an eye on. Today's Young Guns Screen of

    Investor's Business Daily
  • As Fed takes baby steps, Cramer's trick for profit

    In turn, Cramer says making money in the market, involves looking at the environment through the lens of the Fed. "The trick is to remember that they speak for the common person," Cramer said. "The Fed wants the common person to make money." With that backdrop always in mind, Cramer says it becomes…

    CNBC
  • Costco Stores in Canada to Stop Taking American Express

    “The credit card relationship between American Express and Costco Wholesale Canada will not be renewed when it expires” on Dec. 31, the company said today in an e-mail to Canadian customers. The message was attributed to Lorelle Gilpin, vice president of marketing and membership for Costco…

    Bloomberg
  • "The Retiree Next Door": How successful retirees stretch their savings

    "The Retiree Next Door": How successful retirees stretch their savingsBy the time she hit her late 40s, Toni Eugenia wasn’t sure she would ever be able to retire. Eugenia, 56, a pharmacy technician who lived in Houston, was nearly $200,000 in debt and

    Yahoo Finance
  • CNBC Anchor Calls Out Fed-Hater Bill Fleckenstein In Startling Shouting Match

    CNBC Bill Fleckenstein of Fleckenstein Capital appeared on CNBC's Futures Now program on Tuesday. Futures Now host Jackie DeAngelis came out swinging, asking Fleckenstein right at the top if he was willing to admit that he had misunderstood monetary policy. Sounding taken aback, Fleckenstein…

    Business Insider
  • Chase Credit Cards

    Choose from cards with travel rewards, cash back, low interest, and more. Learn More.

    AdChoicesCreditcards.chase.comSponsored
  • Play

    Citi, Bank of America Offer Discounted Mortgages

    Citigroup and Bank of America will offer mortgages at discounted interest rates to help borrowers with low incomes or subprime credit. AnnaMaria Andriotis joins MoneyBeat. Photo: Getty.

    WSJ Live
  • Beanie Babies creator's sentence debated in court

    Beanie Babies creator's sentence debated in court CHICAGO (AP) — Federal prosecutors seeking to put the billionaire creator of Beanie Babies in prison for hiding millions in Swiss bank accounts told appellate court judges Wednesday that the toymaker's sentence of probation threatens to erode the…

    Associated Press
  • Apple to unveil new iPads, operating system on Oct. 21 : report

    The company plans to unveil the sixth generation of its iPad and the third edition of the iPad mini, as well as its operating system OS X Yosemite, which has undergone a complete visual overhaul, the Internet news website said. Trudy Muller, a spokeswoman for Apple, declined to comment. The iPad is…

    Reuters
  • Margaritaville casino owners seek bankruptcy

    The owner of Biloxi's Margaritaville casino has filed for Chapter 11 bankruptcy protection Tuesday, only hours before a hearing where the landlord aimed to seize the property. The filing by MVB Holding LLC in U.S. Don Dornan, a lawyer for landlord Clay Point LLC, said the company had planned to ask…

    Associated Press
  • Embraer to sell 50 E-175 jets to Republic in $2.1 billion deal

    Brazil's Embraer SA, the world's third largest commercial planemaker, said on Wednesday it booked a firm order from U.S. The deal, which will be included in Embraer's order book for the third quarter, is valued at $2.1 billion, the planemaker said in a securities filing. The planes will be operated…

    Reuters
  • Gilead Stock Is Falling On These Drug Setbacks

    Gilead Stock Is Falling On These Drug Setbacks Gilead Sciences (GILD) shares are backsliding Wednesday on news that the patient drop-out rate for hepatitis C drug Sovaldi is quadruple that of clinical trials. In addition, the biotech's Phase 2 study results

    Investor's Business Daily
  • AARP® Auto Insurance Program from The Hartford

    50+? Request a free quote and you could save $404* on Auto Insurance from The Hartford!

    AdChoicesThe HartfordSponsored
  • Here's What Mark Cuban Wishes He Knew About Money In His 20s

    Cuban is the owner of the Dallas Mavericks basketball team. Billionaire investor and entrepreneur Mark Cuban is generous with his advice. When we asked him what he wishes he'd known about money in his 20s, he said:

    Business Insider
  • Play

    What the Fed Meeting Means for Bonds

    Janet Yellen & Co. are expected to hint at their timetable for raising interest rates. Here's how investors should prepare ahead of the meeting.

    WSJ Live
  • Don't buy Alibaba stock: 'Dean of Valuation'

    Investors should steer clear of Alibaba , valuation expert Aswath Damodaran said Wednesday. On CNBC's " Fast Money ," Damodaran, a professor of finance at New York University's Stern School of Business, noted that he was looking at Alibaba stock from the perspective of a long-term investor, not a…

    CNBC
  • SHOE COMPANY: Our CEO Just Disappeared And Most Of The Money Is Gone

    "and like that: he's gone." This is an actual headline from a company press release: "CEO and COO disappeared, most of the company's cash missing." (Via FastFT) In a statement, German-based shoe company Ultrasonic said its CFO,  Chi Kwong Clifford Chan, has been unable to reach the company's CEO,…

    Business Insider
  • 10 rock-solid stocks for conservative investors

    10 rock-solid stocks for conservative investors Shares with low volatility can beat their indexes with less risk Bloomberg News/Landov U.S. Bancorp is the cheapest S&P 500 stock

    MarketWatch
  • Billionaire Investor Says Chinese People Work Harder And Western Companies Could Face Deep Trouble After Alibaba IPO

    Michael Moritz, the chairman of VC firm Sequoia Capital, is a huge fan of Chinese internet companies and reiterated his enthusiasm for the Chinese market in an interview with The Wall Street Journal Wednesday. The billionaire investor described the Alibaba IPO as a “major landmark event” that is as…

    Business Insider
  • Find the Right Tire on the Michelin® Official Site

    Browse High-Quality Michelin Tires. Find Local Dealers. View Tire Specifications & Pricing. Learn about the Michelin Promise Plan® Warranty.

    AdChoicesMichelinSponsored
  • Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More

    Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More Stocks were firm on Wednesday morning ahead of the FOMC meeting outcome. Tuesday’s rally may have sparked higher interest again, and investors are looking for bargains

    24/7 Wall St.