QUEBEC — The Quebec Minister of Sustainable Development, Environment and Parks has released the report on the public inquiry and hearings on the Canadian Malartic gold project owned by Osisko Mining of Montreal. The report "concluded that the project could be authorized under certain conditions. These conditions include certain follow-up programs and the deposit of financial guarantees sufficient to ensure that the project could be carried out in a sustainable development perspective," according to Osisko.
Osisko president and CEO Sean Roosen commented, "We are pleased to have passed this major stage in the regulatory approval process for the Canadian Malartic project. We are satisfied by the report's conclusions and will carefully review all the BAPE [Bureau d'audiences publiques sur l'environnement] commissioners' comments and recommendations. We intend to take these into account should authorization be granted to move on to the next phases of our project."
The Canadian Malartic project 25 km west of Val d'Or boasts one of the largest gold reserves in Canada. The deposit is estimated to contain 6.28 million oz of gold in proven and probable reserves. Stated in more detail, reserves total 183.3 million tonnes grading 1.07 g/t Au. There are also indicated resources of 43.0 million tonnes grading 0.81 g/t Au and inferred resources of 37.4 million tonnes at 0.60 g/t Au.
Osisko estimates that development of an open pit, bulk tonnage operation and 55,000 t/d CIP plant will cost US$789 million. During the first five years of production, the Canadian Malartic mine will produce an average of 618,000 oz of gold at an operating cost of US$313 per oz. Commercial production is expected to begin in the first half of 2011.
The complete BAPE report is available at www.bape.gouv.gc.ca.