Osisko Mining Inc. (OSK:TSX "Osisko" or the "Corporation") is
pleased to provide new results from the continuing exploration
program at its 100% owned Windfall gold project located in the
Abitibi greenstone belt, Urban Township, Eeyou Istchee James Bay,
Québec.
Highlights
- Average grade of 65.5 g/t
Au (2.11 ounces per Ton Au) for the bulk sample, 169% positive
reconciliation
- 4,809 tonnes bulk
sample contained
10,135 ounces Au
and 4,378 ounces
of Ag
- 93.1% Au
recovery (including
52.2% Au
recovery in
gravity concentrates) from floatation
processing circuit
- Windfall bulk samples
processed to date (Zone 27, Lynx 311, and Lynx 600) using
floatation processing comprised an aggregate of 16,025 tonnes
containing 14,914 ounces of gold and 8,004 ounces of silver, with
the average gold recovery for the three samples of
94.1%
Results from processing 4,809 tonnes mined from
Triple Lynx (the “bulk sample”) presented in Table 1 and Table 2,
have exceeded technical expectations. The sample produced a
positive reconciliation of 169%, returning an average grade of 65.5
g/t Au, well above the predicted capped grade based on the
12.5-metres infill model using the same block model parameters as
the current mineral resource estimate “MRE” (technical report filed
on SEDAR under Osisko’s issuer profile on September 14, 2022).
Significant visual gold mineralization was encountered along the
length of the mined stope. Highlights and full results are
presented below, diagrams and sections can be found at
www.osiskomining.com.
Table 1:
Lynx Bulk Sample
Reconciled Results
tonnes(dry) |
Head Grade |
Contained Ounces |
Gravity Concentrate |
Flotation Concentrate |
Overall Recovery |
Recovered Ounces |
Au (g/t) |
Ag (g/t) |
Au |
Ag |
t (dry) |
Au Rec (%) |
t (dry) |
Au Rec (%) |
Au (%) |
Ag (%) |
Au |
Ag |
4,809 |
65.5 |
28.3 |
10,135 |
4,378 |
11.5 |
52.2 |
316.5 |
85.7 |
93.1 |
88.2 |
9,439 |
3,864 |
Mill feed tonnages used in the sample processing
reconciliation were provided by Northern Sun. Day and night shift
daily composite samples collected during the processing of the bulk
sample were assayed by external independent laboratories. Bulk
sample results were reconciled by Soutex Inc., an external
independent consultant using Bilmat.
Osisko Chairman and Chief Executive Officer John
Burzynski commented: “On the back of our strongly positive MRE
announced in late August and the significant new high-grade down
plunge intercepts in September (Osisko news release dated September
27, 2022), today’s bulk sample results underscore the potential for
Windfall to become one of the largest and highest-grade underground
gold deposits in Canada. The grade has – for the third time in as
many bulk samples – significantly exceeded expectations based on
capped drilling block models. The empirical results from our bulk
samples have consistently returned strong positive reconciliations,
and give strong support to the existing geological model. They have
proved invaluable in increasing our confidence in the grade,
continuity and predictability of the mineralized zones at
Windfall.”
GeologyThe Triple Lynx
wireframe 3161 bulk sample is characterized by a West-South-West
oriented mineralization corridor moderately dipping to the north,
with an average width of 3.3 metres. Banded grey quartz veins
contain 5 - 15% pyrite, trace chalcopyrite and local visible gold.
The mineralization is hosted within a granodiorite dyke and gabbro,
both showing strong sericite and silica alteration.
ProcessingA total of 4,809
tonnes of mineralized material were processed in September 2022 at
the Northern Sun Redstone concentrator, producing gravity and
flotation concentrates. The reconciled head grade obtained from the
processed sample is 65.5 g/t Au and 28.3 g/t Ag. The sample
contained 10,135 oz Au and 4,378 oz Ag, with a total of 9,439 oz Au
and 3,864 oz Ag recovered. Reconciled recoveries are 93.1% for gold
and 88.2% for silver. The Windfall MRE metallurgical test work
considered a communition, gravity and leaching circuit process
flowsheet, giving an average recovery of 96.4% for the Lynx zone.
Test mill availability dictated the use of a mill with a
communition, gravity and flotation flowsheet. The reconciled
results from the processing of the bulk sample material are
presented in Table 1.
Block ModelThe
bulk sample was taken from Triple Lynx mineralization wireframe
3161 of the Windfall MRE. The sample area was infill drilled at
12.5-metres spacings and predicted to contain 4,800 tonnes
averaging 38.9 g/t Au, and 6,009 ounces of gold (Table 2).
Table 2:
Infill Resource
Block Model
Predictions vs. Processed
Material
Block Model - Predictions |
Processed Material - Actual |
|
|
Tonnes |
Au g/t |
Au Ounces |
Tonnes |
Au g/t |
Au Ounces |
|
4,800 |
38.9 |
6,009 |
4,809 |
65.5 |
10,135 |
|
ConcentratesBoth the gravity
concentrates and flotation concentrate produced from the sample are
considered high- grade. The gravity concentrate averaged 14,339 g/t
Au (461.0 oz/t Au), while the flotation concentrate averaged 408.2
g/t Au (13.1 oz/t Au).
Mining and
Grade ControlThe Triple Lynx bulk
sample was mined using long hole mining methods. Two development
drifts were mined conventionally at 20 metres floor-to-floor
vertical intervals between 580 and 600 metres below surface. While
mining the development drifts, sampling of the face was completed
to test the width and grade of the mineralization. A V30 borehole
was used in the slot raise and three-inch production holes were
drilled down and blasted. The blasted ore was retrieved using a
remote scoop tram, sampled, trucked to a surface stockpile, then
trucked to the Northern Sun mill site.
Previous Bulk SamplesAll three
bulk samples completed by Osisko have reconciled positively. Table
3 summarizes Windfall’s three bulk sample results, which have
returned in aggregate 14,914 ounces gold and 8,004 ounces silver
from a combined 16,025 tonnes, or an average of 0.93 ounces Au per
tonne and 0.50 ounces Ag per tonne, with an average gold recovery
of 94.1 percent, and average silver recovery of 90.8 percent.
Table 3:
Bulk Samples Completed at Windfall
Bulk Sample |
|
Predicted |
Actual |
Reconciliation |
Zone 27* |
Tonnage (t) |
5,512 |
5,500 |
100% |
Au g/t |
6.8 |
8.5 |
126% |
Au oz |
1,198 |
1,508 |
126% |
Lynx 311* |
Tonnage (t) |
5,717 |
5,716 |
100% |
Au g/t |
9.4 |
17.8 |
189% |
Au oz |
1,736 |
3,271 |
189% |
Lynx 600 |
Tonnage (t) |
4,800 |
4,809 |
100% |
Au g/t |
38.9 |
65.5 |
169% |
Au oz |
6,009 |
10,135 |
169% |
*See Osisko news releases dated June 11, 2019,
and December 11, 2019, respectively.
Qualified PersonThe scientific
and technical content of this news release has been reviewed,
prepared and approved by Kim-Quyên Nguyên, MBA., P.Eng. (OIQ
146014), Project Director for Osisko, who is a "qualified person"
within the meaning of National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101"). The block
model in the bulk area of the Triple Lynx zone, with an
effective date of February 3, 2022, was prepared by Judith
St-Laurent, P.Geo (OGQ #1023), Director of Mineral Resource
Estimation of Osisko Mining, who is a "qualified person" within the
meaning of NI 43-101. The scientific and technical content in this
news release has been reviewed and approved by Mr. Mathieu Savard,
P.Geo (OGQ #510), President of Osisko Mining, who is a "qualified
person" within the meaning of NI 43-101.
Technical Info, Quality Control and
Reporting ProtocolsProcess reconciliation was performed
using Bilmat software by Soutex Inc., an external consultant. A
reconciled balance was calculated for each day and night shift as
well as for the overall bulk sample processing. Day and night shift
mill throughput was estimated using the load cell on the Redstone
primary ball mill feed conveyor. Composite samples were taken each
day and night shift on the streams required for the reconciliation.
The total quantity of material processed was estimated based on the
Redstone Mill truck scale which has been calibrated before the bulk
sample processing. The flotation concentrate was bagged and weighed
on the same truck scale and drill samples were taken from each bag.
The gravity concentrate bags were weighed on a scale and each bag
was drill sampled. The material remaining in the equipment at the
end of the bulk processing after the clean-up was collected in
bags, weighed, and sampled. All samples were sent out to an
external independent lab for preparation and assaying. All shift
samples were assayed for gold, silver, iron, sulfur, and moisture.
The drill samples from the bags were assayed for gold, silver and
moisture. Gold assay from all streams except the rougher flotation
feed and tails was obtained by screened metallics fire assay.
Remaining process cleaning bags data was redistributed through the
flotation concentrate.
About WindfallThe Windfall gold
deposit is located between Val-d'Or and Chibougamau in the Abitibi
region of Québec, Canada. The MRE for Windfall is supported by the
technical report titled "NI 43-101 Technical Report, Mineral
Resource Estimate for the Windfall Project", dated September 14,
2022 (with an effective date of June 7, 2022), prepared for the
Corporation by BBA Inc. and PLR Resources Inc. (the "Windfall MRE
(2022)"), and assuming a cut-off grade of 3.50 g/t Au, comprises
811,000 tonnes at 11.4 g/t Au (297,000 ounces) in the measured
mineral resource category, 10,250,000 tonnes at 11.4 g/t Au
(3,754,000 ounces) in the indicated mineral resource category and
12,287,000 tonnes at 8.4 g/t Au (3,337,000 ounces) in the inferred
mineral resource category. The key assumptions, parameters and
methods used to estimate the MRE for Windfall are further described
in the Windfall MRE (2022), being the full technical report for
this updated MRE prepared in accordance with NI 43-101 and is
available on SEDAR (www.sedar.com) under Osisko's issuer profile.
The Windfall gold deposit is currently one of the highest-grade
resource-stage gold projects in Canada and has world-class scale.
Mineralization occurs in three principal areas: Lynx, Main, and
Underdog. Mineralization is generally comprised of sub-vertical
lenses following intrusive porphyry contacts plunging to the
northeast. The resources are defined from surface to a depth of
1,600 metres, including the Triple 8 (TP8) zone. The resources
excluding TP8 are defined from surface to a depth of 1,200 metres.
The deposit remains open along strike and at depth. Mineralization
has been identified at surface in some areas and as deep as 2,625
metres in others with significant potential to extend
mineralization down-plunge and at depth.
About Osisko Mining Inc.Osisko
is a mineral exploration company focused on the acquisition,
exploration, and development of precious metal resource properties
in Canada. Osisko holds a 100% interest in the high-grade Windfall
gold deposit located between Val-d'Or and Chibougamau in Québec and
holds a 100% undivided interest in a large area of claims in the
surrounding the Urban Barry area and nearby Quévillon area (over
2,400 square kilometres).
Cautionary Note Regarding
Forward-Looking InformationThis news release contains
"forward-looking information" within the meaning of the applicable
Canadian securities legislation that is based on expectations,
estimates, projections and interpretations as at the date of this
news release. The information in this news release about the
potential for Windfall to become one of the largest and
highest-grade underground deposits in Canada; the Windfall gold
deposit being one of the highest grade resource-stage gold projects
in Canada; the significance of the results from the bulk sample
described in this news release; the bulk sample having a higher
than expected grade; any prediction arising from the bulk sample;
the average grade of the bulk sample having any predictive value;
the MRE for Windfall being possibly conservative on the grade of
the deposit; the geology of the bulk sample; the deposit remaining
open along strike and at depth; potential depth extensions of the
mineralized zones down-plunge and at depth; potential
mineralization; the ability to realize upon any mineralization in a
manner that is economic; the ability to complete any proposed
exploration activities and the results of such activities,
including the continuity or extension of any mineralization; and
any other information herein that is not a historical fact may be
"forward-looking information". Any statement that involves
discussions with respect to predictions, expectations,
interpretations, beliefs, plans, projections, objectives,
assumptions, future events or performance (often but not always
using phrases such as "expects", or "does not expect", "is
expected", "interpreted", "management's view", "anticipates" or
"does not anticipate", "plans", "budget", "scheduled", "forecasts",
"estimates", "believes" or "intends" or variations of such words
and phrases or stating that certain actions, events or results
"may" or "could", "would", "might" or "will" be taken to occur or
be achieved) are not statements of historical fact and may be
forward-looking information and are intended to identify
forward-looking information. This forward- looking information is
based on reasonable assumptions and estimates of management of the
Corporation at the time such assumptions and estimates were made,
and involves known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of Osisko to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking information. Such factors include, among others,
risks relating to the ability of exploration activities (including
drill results and bulk samples) to accurately predict
mineralization; errors in management's geological modelling; the
ability of Osisko to complete further exploration activities,
including drilling; property interests in the Windfall project; the
ability of the Corporation to obtain required approvals and
complete transactions on terms announced; the results of
exploration activities; risks relating to mining activities; the
global economic climate; metal prices; dilution; environmental
risks; and community and non-governmental actions. Although the
forward-looking information contained in this news release is based
upon what management believes, or believed at the time, to be
reasonable assumptions. Osisko cannot assure shareholders and
prospective purchasers of securities of the Corporation that actual
results will be consistent with such forward-looking information,
as there may be other factors that cause results not to be as
anticipated, estimated or intended, and neither Osisko nor any
other person assumes responsibility for the accuracy and
completeness of any such forward-looking information, Osisko does
not undertake, and assumes no obligation, to update or revise any
such forward-looking statements or forward-looking information
contained herein to reflect new events or circumstances, except as
may be required by law.
For further information please contact:John
Burzynski Chairman and Chief Executive Officer Telephone: (416)
363-8653
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