News.....Osisko drills 53.9 m of 1.25 g/t Au at Malartic
2008-04-17 07:16 MT - News Release
Mr. Sean Roosen reports
OSISKO INTERSECTS SIGNIFICANT GOLD MINERALIZATION OVER 800 METRES STRIKE LENGTH AT JEFFREY
Osisko Exploration Ltd. and Golden Valley Mines Ltd. have released results from a 2,400-metre drill program on the Jeffrey zone of the Malartic CHL property. The Jeffrey zone is located at the southern extremity of the CHL porphyry intrusion, approximately 3.5 kilometres east of the centre of the Canadian Malartic deposit. This mineralized zone was tested with nine holes spaced 100 m apart along a total strike length of 800 metres. All holes in the Jeffrey zone were oriented south, perpendicular to regional east-west fabric and were inclined 45 to 50 degrees. Significant near-surface results include 53.9 m averaging 1.25 grams per tonne gold (hole CHL07-2022) and 40.5 m averaging 1.39 g/t Au (hole CHL07-2021). Higher-grade, deeper drilling results include 1.5 m averaging 109.5 g/t Au (hole CHL07-2027) and 1.5 m averaging 14.65 g/t Au (hole CHL07-2029). Results from the nine new holes are summarized in the attached table.
JEFFREY ZONE RESULTSHole No. Easting From (m) To (m) Length (m) Au (g/t)CHL07-2021 7300E 24.5 65.0 40.5 1.39CHL07-2022 7400E 12.1 66.0 53.9 1.25and 126.0 148.0 22.0 1.12CHL07-2023 7500E 62.8 85.3 22.5 0.99CHL07-2024 7600E 45.8 62.7 16.9 1.08CHL07-2025 7700E nilCHL07-2026 7800E 152.0 160.0 8.0 3.11CHL07-2027 7900E 137.0 138.5 1.5 109.5CHL07-2028 8000E 105.3 154.5 49.2 0.60and 183.0 196.5 13.5 1.12CHL07-2029 8100E 197.8 199.3 1.5 14.65and 220.3 223.8 3.5 5.48
Mineralization in the Jeffrey zone consists of disseminated pyrite gold in porphyry dikes and of narrower, higher-grade mineralization in silicified porphyry or ultramafic schists. True widths are estimated at 70 per cent to 80 per cent of mineralized intersections. The zone remains open to the east and at depth.
Current structural interpretation indicates that the Jeffrey zone and the Shaft zone are located at the southern and northern extremities, respectively, of the CHL porphyry intrusion, which has been deformed into a z-shaped body by sinistral strike-slip motion along the Cadillac break. Initial drilling in the Shaft zone by Osisko produced 8.4 metres averaging 8.82 g/t Au (see news in Stockwatch on Aug. 7, 2007). The geological model suggests potential for additional mineralization along dilation zones at the contact between the porphyry and the ultramafic schists, between the Jeffrey and Shaft zones. Definition drilling on these zones will begin shortly, followed by reconnaissance drilling between the zones, aimed at testing the geological model.
Commenting on the new exploration results, Sean Roosen, president of Osisko, stated: "We are very pleased with these latest drilling results on the Golden Valley joint-venture property. The Jeffrey and Shaft zones demonstrate that the CHL property hosts significant potential to add to Osisko's resource balance sheet with both shallow, low-grade porphyry material, as well as narrower, deeper, higher-grade underground zones that could have a positive effect on the per-ounce mining and milling costs."
Osisko has the right to acquire a 70-per-cent interest in the Malartic CHL property in consideration for $150,000 in cash payments over a four-year period ($70,000 paid to date) and by completing a minimum $2-million in exploration work over a four-year period. Upon earning its 70-per-cent interest, Golden Valley will maintain a free-carried interest of 30 per cent to production.
All NQ core assays reported above were obtained by standard 50-gram fire assaying atomic absorption finish at ALS Chemex laboratories in Val d'Or, Que. Reported weighted averages were calculated using a minimum of 0.4 g/t Au over successive maximum intervals of 20 metres with no upper cut-off of individual assays.
Robert Wares, PGeo, executive vice-president of Osisko, is the qualified person responsible for the technical information reported in this news release.