QUEBEC –
Osisko Mining of Montreal has signed a binding agreement with Toronto-based
Barrick Gold Corp. that sets forth the terms of an exploration earn-in on the Kan property in the Nunavik region of the province.
Barrick can earn a 70% interest in Kan by spending at least $15 million over four years. Of that amount, $6 million must be spent in the first two years. Following completion of the earn-in, a joint venture will be formed for the project. Barrick may earn an extra 5% (for a total of 75%) by choosing to spend an additional $5 million on a preliminary economic study or pre-feasibility study).
The Kan property is a gold and base metal exploration project covering a surface area of over 30,000 ha in the Labrador Trough. A silicate-carbonate iron formation of regional extent represents a significant auriferous unit on the property sharing similarities with the world class Homestake gold deposit. Historical work conducted in the 1990s led to the discovery of numerous gold showings within the iron formation, with drill results returning 5.1 g/t Au over 6.0 metres and 9.46 g/t Au over 2.0 metres. Work carried out by Rio Silver Inc. in 2011-12 yielded 3.12 g/t Au over 13.9 metres in channels and 1.2 g/t Au over 10.4 metres in drilling on the Pump Pad Ridge showing. Exploration work performed in 2014-16 by Virginia Mines (subsequently Osisko Exploration James Bay) led to the discovery of additional gold mineralization associated with the silicate-carbonate iron formation on the Kan property. Best results from this work include values of: 8.1 g/t Au over 7.0 metres; 10.7 g/t Au over 5.0 metres; and 8.6 g/t Au over 3.2 metres obtained from channel samples. Values of 2.13 g/t Au over 8.0 metres and 4.62 g/t over 8.0 metres have been obtained from drilling.
Osisko’s website is at
www.OsiskoMining.com.
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