Sitting on a Gold Mine...It appears that Osisko has a very good idea of what they will find on the Adanac property. The similarities between Malartic and Adanac were just too obvious for them to ignore. The mineralization and location caught their attention, different from other land packages. For example, Gold Bullion's Granata's property, while potentially, economically feasible, is a vein system with pockets of high grade whereas the gold on the Adanac project appears to be disseminated, just like Malartic. Adanac's 1.8 km gold trend, like Malartic, is on the southern splay of the Cadillac Larder Lake Break. When the similarities became obvious, Osisko aggresively began taking a large position in THG, buying 9,000,000 shares on the market. They could have simply jv'd the project and started buying during or after they completed their exploration work to try prove up, what they have seen before. Last week Osisko and Threegold put out a press release that Osisko had started exploration work on Threegold's Adanac property.
"Preliminary work on Adanac includes some data validation and integration of previous data into a comprehensive
database, relogging of some key holes, characterization of the known alteration and
mineralization and extensive surface sampling. Diamond drilling is scheduled to commence
thereafter"
"The target is a low grade, bulk tonnage gold deposit. Geology and alteration mineralogy at Adanac are similar to what has been observed at Canadian Malartic"
The Osisko story is well known by many and their contraian and aggressive approach to exploration, is world renowned. Their geogical experts made the decision that they have seen this story before. What story you ask...
From today's Toronto Star article "Sitting on a Gold Mine"
"Osisko's geoscientists suspected there was a different geology than what had previously been found in the area, and that would be a launching pad for the next generation of gold mines there.
“We started with the thesis that the historical, geological interpretation of the region was very different from what had traditionally been applied there,” says Roosen.
“To have low-grade, bulk tonnage of this homogenous generation in this camp had never been documented before,” he says, noting there were plenty of naysayers when they originally went in."...
“The thought was the grade was too low (to be economic), that we would never move the town, that we would never get a permit, and that this was a very contrarian geological concept,” recalls Roosen...
"Because the resource is low grade — roughly one gram per tonne — huge volumes of rock are extracted from the pit to reach the ore.
With gold going gangbusters, the project is economically feasible despite the low grade, he says. The gold price is sitting comfortably at $1,500 (U.S.) an ounce and has nearly quadrupled in value since the initial land purchase. Meanwhile, Osisko stock has tripled over the last three years."
https://www.thestar.com/business/article/1018309--sitting-on-a-gold-mine