Excerpt from Stockwatch Gold-Today The hits keep coming for John Burzynski's Osisko Mining Inc. (OSK). Osisko zigzagged its way from $1.60 in 2018 to near the $5 mark last summer on the strength of a surging gold price. It has been in retreat since then as bullion retreats from its $2,060-an-ounce high, despite a steady flow of high-grade glitter coming from the company's never-ending drill program at Windfall Lake in the Abitibi district of Quebec. The downward trend reversed today, as Osisko added three cents to $3.05 on 1.71 million shares on word that it has drilled a 2.2-metre interval averaging 877 grams of gold per tonne.
That bonanza-grade encounter occurred within a deposit already defined by a resource estimate, but the company also scored several promotable hits through expansion drilling. A two-metre interval returned 85 grams of gold per tonne, aided by a 0.4-metre stretch that averaged 425 grams per tonne. Mr. Burzynski, chief executive officer, was suitably pleased with the latest numbers. "All zones at Windfall continue to expand and infill nicely," he cheered, adding that the new results highlight the potential to increase the strong base-case economics derived in a recent preliminary economic assessment.
That dream sheet, barely a week old and already promoted as potentially behind the times, was based on a resource of six million tonnes measured and indicated at 9.6 grams of gold per tonne and a further 16.4 million tonnes inferred at eight grams per tonne. All told, Windfall held 6.1 million ounces of gold, with over 2.6 million ounces of silver present as well. The study proposed a 3,100-tonne-per-day underground mine that would cost $543-million to build that would run for 18 years, averaging over 300,000 ounces of gold per year in its first seven years.