Canadian Mining Journal

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GOLD STUDY: Osisko moves 6.2M oz into reserves at Canadian Malartic

QUEBEC — Osisko Mining of Montreal is in possession of the feasibility study for its 100%-owned Canadian Mala...


QUEBECOsisko Mining of Montreal is in possession of the feasibility study for its 100%-owned Canadian Malartic gold project in Malartic. The study was compiled by BBA Inc, with the collaboration of Micon International, G Mining Services, Genivar, Golder Associates and the Osisko technical team.

 

The study included an optimized pit plan with a proven and probable mineral reserve estimate of 6.28 million oz of gold, which represents an 82% conversion rate relative to the global 7.7 million oz measured and indicated resource estimate made in September 2008.

 

During the first five years of operation, Canadian Malartic will produce an average of 618,000 oz of gold plus 784,000 oz of silver at an average operating cost of US$313/oz of gold after royalties and silver credits. Annual output for the planned mining operation is scheduled to average 591,000 oz of gold and 754,000 oz of silver during a 10-year mine life, at an average operating cost of US$319/oz of gold after royalties and silver credits. A gold price of US$775/oz was assumed in the financial analysis, and Q3 2008 market prices for all materials and labour were applied.

 

Osisko estimates capital expenditures will be US$723.4 million and a provision for contingency of US$65.6 million for a total of US$789 million or US$146 per recoverable ounce. This places Canadian Malartic within current industry norms as one of the best undeveloped gold projects in the world, according to Osisko. The pre-tax internal rate of return (IRR) to completion is estimated at 28.8%, and the pre-tax NPV (discounted 5%) is estimated at US$1,001 million.

 

Osisko’s corporate presentation dated Sept. 8, 2008, is posted at www.Osisko.com in the Media Library.