GOLD: Osisko reports record high Q1 production, falling costs

QUEBEC – Osisko Mining Corp. of Montreal has reported record first quarter gold production of 140,029 oz of gold from its Canadian Malartic mine in the town of Malartic.

During the first three months of 2014 the mill treated 4.36 million tonnes of ore with an average grade of 1.13 g/t Au. Average recovery was 88.2%.

As output goes up, cash costs per ounce are estimated to fall this between 16% and 24% compared to last year. Cash costs per ounce in Q4 2013 were US$679, but in January 2014 they were only US$613 and in February US$555. Osisko estimated that cash costs per ounce for the current year will be between US$527 and US$577.

The proven and probable reserves at Canadian Malartic contain 9.37 million oz of gold. At a steady milling rate of 55,000 t/d that gives the mine a life of 14.2 years.

A brief explanation of the mine geology is posted at Osisko.com.