Osisko announces revised mine production plan at Canadian Malartic

Marketwire | April 29, 2011 | 2:17 pm

Osisko Mining Corporation (TSX:OSK)(FRANKFURT:EWX) (“Osisko”) is pleased to provide a revised summary of the annual mine production plan for its 100%-owned Canadian Malartic project. This new plan is based on the $US1000 gold reserve estimate of 10.71M ounces gold that was recently disclosed (see March 31, 2011 press release).

G Mining Services of Montreal are the independent consultants for Osisko who have authorized the release of the following plan.

Highlights include:

  • Gold production (which started this month) will total 1.02 M ounces over the next 18 months;
  • Recoverable gold has increased by 1.46 M ounces to 9.18 M ounces (at 85.8% recovery) from the previously disclosed figure of 7.72 M ounces (at 86.1% recovery; see February 10, 2010 press release).
  • Mine life has increased 31 percent (3.8 years) to 16.0 years, based on a 55,000 tonnes per day (tpd) milling rate that will increase to 60,000 tpd in mid-2012.
  • Average of 625,000 oz. per year gold production during the first full five years (2012-2016);
  • Average of 574,000 oz. per year gold production during 16-year life of mine.

Sean Roosen, President and CEO, noted: “We are very pleased to present our shareholders with this updated mine plan that is based on the latest engineered pit and new reserve estimates of 10.7 M ounces gold. The reserve and resultant mine schedule are based on $US 1000 oz. gold price, which is 33 percent less than current spot price. Start-up and commissioning are going very smoothly at Canadian Malartic and production has commenced on a 24-hour per day basis with six doré bars poured to date. Studies are under way to ramp up production to 65,000 tonnes per day in 2013, which will have the effect of boosting annual production. We are continuing our intensive drilling program on the Canadian Malartic property and expect to continue to bring in additional reserves in the coming years”.

Read the full news release here.