Osisko Mining Inc. [OSK-TSX; OBNNF-OTC] was an active trader Tuesday May 15 after the company released the first mineral resource estimate for its Windfall Gold deposit located between Val-d’Or and Chibougamau in the Abitibi region of Quebec. The shares eased 20% or $0.54 to $2.16 in early afternoon trading Tuesday on volume of 3.2 million shares. The 52-week range is $5.24 and $2.34.
This mineral resource estimate is the result of 1,453 drill holes (596,733 metres) in the resource area completed by previous operators on the project since 1997, and includes 812 new drill holes (413,692 metres) completed by Osisko between October 2015 and March 5, 2018.
Drilling continues at the Windfall gold deposit, and results disclosed by Osisko since March 5, 2018 (representing 131 drill holes and approximately 40,000 metres of infill and extension holes principally in the Lynx and Underdog zones) are not incorporated in this mineral resource estimate.
In a news release issued after the close of trading on Monday, Osisko said the Windfall deposit contains an indicated resource of 2.38 million tonnes, grading 7.85 g/t gold, or 601,000 ounces. On top of that is an inferred resource of 10.6 million tonnes, grading 6.70 g/t gold or 2.28 million ounces.
“We are very pleased with our initial mineral resource estimate,” said Osisko President and CEO John Burzynski. “We have a solid understanding of the Windfall gold-bearing intrusive-related system, which remains open along strike to the northeast and at depth,” he said.
Burzynski went on to say that the Lynx and Underdog zones in particular have excellent down-plunge potential for additional mineral resources. “We are continuing our 800,000-metre drill program to expand and explore the deposit,” he said.
Burzynski said the mineral resource estimate announced on Monday is a great start to defining the larger Windfall system, and is complemented by the recently announced Osborne-Bell mineral resource estimate.
The 100%-owned Osborne-Bell gold deposit is located 15 km northwest of the town of Lebel-sur-Quevillon. It contains an inferred resource of 510,000 ounces of gold assuming a US$1,300/oz gold price and a lower cut-off grade of 3.0 g/t gold.
The company is planning to incorporate the Windfall gold deposit and Osborne-Bell into a single preliminary economic estimate, scheduled for the third quarter of 2018.
It will model a blended mining scenario with processing at a central Lebel-sur-Quevillon mill site. “We are confident that Windfall will grow further as we continue drilling and as the exploration ramp drives forward,” Burzynski said.
The Windfall Lake gold deposit is currently one of the highest grade resource-stage gold projects in Canada.
The bulk of the mineralization occurs in the Main Zone, a southwest/northeast trending zone of stacked mineralized lenses, measuring approximately 600 metres wide and at least 1,400 metres in length.