Montreal, Quebec, October 20, 2009 - Osisko Mining Corporation ("Osisko", OSK - TSX, EWX - Deutsche Boerse) is pleased to announce additional results from the 2008 drill program targeting the CHL Porphyry and the Shaft Zone on the Malartic CHL Property, located immediately east of the Canadian Malartic property.
Highlights from 32 drill holes totaling 7,175 metres include 15 metres averaging 8.60 g/t Au (CHL08-2061), 29.5 metres averaging 3.39g/t Au (CHL08-2101), 52.5 metres averaging 0.89g/t Au (CHL08-2128) and 18.0 metres averaging 1.55g/t Au (CHL08-2131).
Drilling intersected a series of near surface and deeper gold mineralized zones across the CHL Porphyry intrusion and the Shaft Zone.
Holes CHL08-2054 to CHL08-2061 represent a 120 metre west-east section across the southwestern margin of the CHL Porphyry, and holes CHL08-2128 and CHl08-2131 were located near the eastern margin of the CHL Porphyry. Both areas are located between the Jeffrey Zone to the southeast and the Shaft Zone to the northwest. Drilling generally comprised 3 holes per setup along the western margin of the CHL Porphyry and single or 2-hole set-ups within the central core and eastern margins of the CHL Porphyry. The higher grade zone in drill hole CHL08-2061 was closed at depth and near surface with holes CHL08-2060 and -2062, but remains open along strike near the contact of the CHL Porphyry and ultramafic schists. Mineralized intersections from the holes targeting the Sha ft Zone are all from the deeper portion of the Shaft Zone or from zones of lower grade disseminated mineralization located in the CHL Porphyry immediately south of the Shaft Zone. These results, along with previously reported intersections from the Shaft Zone, suggest a minimum 150 metre strike length of unknown true width.
Mineralization in the CHL Porphyry consists of disseminated pyrite-gold in strongly potassic altered quartz-feldspar porphyry in contact with deformed ultramafic volcanic rocks, and in subordinate gabbro and sedimentary units. Narrower, higher-grade mineralization is hosted in quartz veins, brecciated and silicified porphyry and/or talc/chlorite altered and sheared ultramafic rocks. Current structural interpretation by Osisko indicates that the Jeffrey and Shaft zones are located at the southeastern and northwestern extremities, respectively, of the CHL Porphyry, which has been deformed into a Z-shaped body by sinistral strike-slip motion along the Cadillac-Larder Lake Fault Zone. The geological model suggests potential for additional mineralization along dilation zones at the contact between the porphyry and the ultramafic schists.
In conjunction with the results released on September 10th, 2009 and April 17th, 2009, the total strike length tested to date on the Malartic CHL property is approximately 1.4 kilometres. Additional results from a group of forty-one (41) drill holes totaling about 7,100 metres are anticipated to be released over the next 6 weeks with respect to the CHL Porphyry and the Shaft Zone.
All NQ or HQ core assays reported above were obtained by standard 50 g fire assaying-AA finish or gravimetric finish at ALS Chemex laboratories in Val d'Or, Quebec. Reported weighted averages were calculated using a minimum of 0.50 g/t Au over successive maximum intervals of 20 metres with no upper cut-off of individual assays. Intersected drifts or lost core within mineralized intersections w ere incorporated as blank intervals.
Osisko has the right to acquire a 70% interest in the Malartic CHL Property from Golden Valley Mines Ltd. in consideration for $150,000 in cash payments over a four year period (total amount paid to date) and by completing a minimum $2,000,000 in exploration work over a four year period. Upon earning its 70% interest, Golden Valley will maintain a free-carried interest of 30% to production. Presently, option/joint venture operator Osisko has completed 19,746 metres (101 drill holes) on the property in 2008 and 15 holes totaling 6,544 metres in 2007.
Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Canadian Malartic deposit currently represents one of the biggest gold reserves in Canada for a single deposit, and is still growing through ongoing drilling on new mineralized zones. Cur rent reserves for the Canadian Malartic property are 6.28 million ounces, plus (including the Barnat deposit) a measured and indicated resource of 3.65 million ounces and an inferred resource of 0.84 million ounces. Mr. Robert Wares, P. Geo. and Executive Vice-President of Osisko, is the Qualified Person who has reviewed this news release and is responsible for the technical information reported herein, including verification of the data disclosed including the sampling, analytical and test data underlying the technical information.
