Good news!Osisko Reports Phase Two Metallurgical Results
2/11/2008
MONTREAL, QUEBEC, Feb 11, 2008 (Marketwire via COMTEX News Network) --
Osisko Exploration Ltd. (TSX:OSK)(FRANKFURT:EWX) is pleased to report the following results on the Phase II metallurgical program from its 100% owned Canadian Malartic gold project. Overall recovery from 86 individual leach tests of the direct whole ore cyanidation process is confirmed at an average of 84% from composite samples representing the main lithologies of the deposit, each with approximately 1.1 g/t Au head grade and prepared to 80% minus 200 mesh grind size.
Flotation work that had indicated good recovery of gold to the primary concentrate for some lithologies did not perform well enough on the overall mill feed material. Direct whole ore cyanidation processing has demonstrated superior recoveries and therefore no further work will be carried out on the flotation route.
The metallurgical test program is now moving to Phase III for optimization. Leach tests will be repeated at various grind size fractions and leach times in order to confirm optimum recovery conditions. Phase III also includes additional work including simulation to confirm the various possibilities regarding the grinding circuit arrangement. This will provide the economic basis for the final decision on the capacity and best operating conditions for the Canadian Malartic process facility.
The Phase III detailed test work should be completed by the end of Q1 2008 as originally planned. A Phase IV test program will extend to Q2 2008 and will aim to fine-tune reagent consumption and confirm the homogeneity of metallurgical results throughout the deposit at various ore grades and material location. The results of the above testing programs will establish the process design criteria for the Feasibility Study to be released at the end of Q3 2008.
Furthermore, preliminary economic assessments based on 84% recovery indicate more favorable project economics at a production rate of 50,000 to 55,000 tonnes per day (tpd) or minimum 18 million tonnes per annum. This will result in an increased annual gold production and will be beneficial to the project in reducing unit operation costs and significantly increasing revenue. A third ball mill and additional leach tanks will be acquired to increase the tonnage from the original project criteria of 40,000 tpd. Based on initial discussions with suppliers, the delivery dates for the additional mill and leach tanks will not affect the overall project schedule.
Sean Roosen, President and CEO of Osisko, commented: "This metallurgical work is the foundation for another significant milestone in the development of the Canadian Malartic project. The increase in production rate is entirely manageable within the project time frame given that Osisko has already secured the bulk of the milling equipment. Osisko has signed firm contracts with Metso Minerals, ABB, FLSmidth Minerals and General Electric Canada to purchase a 38 foot SAG mill, two 24 foot ball mills, a gyratory crusher and all electrical drive equipment. Osisko expects first deliveries in Q2 2009 and already has $21 million invested into this equipment, which is part of the project capitalization. The bold actions we took in 2006 to secure our long lead items and lock in prices are now paying off for our shareholders as we have cost and delivery date protection on these crucial items."
All metallurgical test work is being carried out by SGS Lakefield Research on composite samples prepared from fresh NQ core taken throughout the deposit to provide representative combination of all ore types and lithologies that will be encountered in the actual mining operation.
Osisko Exploration Ltd. is currently evaluating the Canadian Malartic gold deposit and adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Company is well-funded with approximately $180 million on hand and is carrying out an aggressive definition drilling and exploration campaign. A 43-101 Preliminary Economic Assessment report on the project is scheduled to be released at the end of Q1 2008.
Mr. Denis Cimon, Eng. M.Sc. and Manager of Mineral Processing for Osisko, is the Qualified Person responsible for the technical information reported in this news release.
SOURCE: Osisko Exploration Ltd.
Osisko Exploration Ltd. John Burzynski Vice-President Corporate Development 514-735-7131 www.osisko.com Osisko Exploration Ltd. Daniel Boase Investor Relations 416-742-5600 Toll Free: 1-866-580-8891
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