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Canada: new gold mineralization found at Osisko's Barnat deposit

New mineralized zones found at Osisko's flagship property in the Malartic open pit gold mine, Quebec. Commercial production due in second quarter.

Author: Bhaswati Mukhopadhyay
Posted: Wednesday , 26 Jan 2011

Bangalore (Reuters) - 

Canada's Osisko Mining Corp said drill results at its flagship gold property in Quebec showed new mineralization, which could probably increase the reserves estimate at the mine.

The new mineralized zones were found at the Barnat deposit, which is located in the company's Malartic open pit gold mine in Quebec. Assay data from these holes are not included in the current resource block model and in most of the cases represent new ounces, the company said.

Of the 36 new holes drilled, four drill holes did not intersect notable mineralization, the company said in a statement.

The Canadian miner has been developing the Malartic property in a mineral-rich Cadillac fault region, where major discoveries of precious metal reserves have been made.

Commercial production for the Malartic mine is scheduled for the second quarter, according to Osisko's website.

Shares of the company were down 19 Canadian cents at C$12.35 in Tuesday morning trade on the Toronto Stock Exchange.

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anne Pallivathuckal)