Canadian Mining Journal

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GOLD RESOURCE: Hammond Reef hosts over 10 million oz

ONTARIO - Osisko Mining Corp. of Montreal says its 100% owned Hammond Reef project near Atikokan contains perhaps 10.52 million oz of gold. It is early days for the project, so resources are in the inferred category: 530.6 million tonnes...



ONTARIO – Osisko Mining Corp. of Montreal says its 100% owned Hammond Reef project near Atikokan contains perhaps 10.52 million oz of gold. It is early days for the project, so resources are in the inferred category: 530.6 million tonnes grading 0.62 g/t Au, using a 0.30 g/t cut-off.

The in pit inferred resource is 336.58 million tonnes at 0.63 g/t Au or 6.86 million oz using a gold price of US$1,200/oz. This is an increase of 25% or 1.36 million oz over the 2009 estimate made by then-owner Brett Resources.

If the gold price were US$1,000/oz, the inferred pit resource would be 243.40 million tonnes grading 0.72 g/t or 5.32 million oz of gold, according to Osisko. And should the gold price rise and stay at US$1,800/oz, the inferred pit resource would be 658.23 million tonnes at 0.51 g/t Au or 10.79 million oz of gold.

Sean Roosen, Osisko president and CEO, commented, “While there is no doubt that the resource has a lower overall grade than Canadian Malartic, an important point to note is that the new in pit resource for Hammond Reef has a low strip ratio of 1.25 and is quite robust, as it is based on current processing and mining costs at Canadian Malartic, adjusted for higher electrical costs in Ontario.”

Details of the Hammond Reef project are available at www.Osisko.com.