O3 sees Marban gold as building block for growth

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O3 Mining Inc. [OIII-TSXV, OQMGF-OTC] on Monday October 26 released a technical report containing a preliminary economic assessment (PEA) for its 100%-owned Marban Project on the Malartic property near Val D’Or, Quebec.

The company said it will now begin working on a pre-feasibility study to advance the Marban Project towards production as part of a staged development strategy while continuing its aggressive drill programs.

O3 Mining is a member of the Osisko Group of companies. It is also a mine development and emerging consolidator of exploration properties in prospective gold camps in Quebec and Ontario. Its goal is to become a multi-million-ounce, high growth company.

O3 Mining is well capitalized and holds a 100% interest in a number of properties in Quebec (435,000 hectares) and Ontario (25,000 hectares). The company controls 61,000 hectares in the Val D’Or, mining camp and over 50 km of strike length of the Cadillac-Larder Lake Fault.  O3 also has assets in the James Bay and Chibougamau regions of Quebec.

The Malartic property is about midway between Val D’Or and Malartic and 12 km from the Canadian Malarctic Mine and along the same structure as Wesdome Gold Mines Ltd.’s [WDO-TSX] Kiena deposit.

The property comprises three mining claims and three concessions containing the historic KIerens, Norlartic and Marban gold mines. O3 says the PEA demonstrates the project’s potential to become a major North American gold producer with a positive after-tax IRR of 25.2% and an after-tax NPV of $423 million.

The PEA supports an 11,000 tpd open pit with a 15.2 life of mine and robust economics at a gold price of US$1,450/oz, attractive cash costs and all-in-sustaining costs, and a low capital expenditure. The first 12 years will target production of over 130,000 oz gold annually, peaking at more than 161,000 oz in year nine. The PEA envisages an initial capital expenditure of $256 million, including mine pre-production and processing infrastructure.


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