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Malartic to Become the Largest Gold Mine in Canada

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Canadian Malartic Gold Mine

Malartic Project Location

Malartic Project Location

Canadian Malartic gold deposit is located in the heart of Quebec’s prolific Abitibi Gold Belt, south of the town of Malartic, approximately 25km west of Val d'Or.

The Project is located near highway 117 and is serviced by a railway. Hydro-Quebec's electrical power grid is only 20km away from Malartic Project.

The property includes the former underground Canadian Malartic Mine (104 claims and one mining concession with a total surface area of 4442 hectares).

Malartic Project Ownership

100% owned by Osisko

Malartic Project History (Source: OSISKO)

  • 1926: The Canadian Malartic deposit was discovered
  • 1928: Underground development began
  • 1935: Production started
  • 1965: The mine closed after producing 1,080,000 ounces of gold from 9.93 million tons of ore grading 3 to 6 grams/tons of gold (g/t Au).
  • From 1965 to 1979: Following closure of the mine, the property remained idle
  • 1979: The mine is purchased by Lac Minerals
  • From 1980 to 1988: Lac Minerals explored the property with the objective of defining a near surface (< 100 meters deep) economic deposit amenable to open pit mining. The exploration program led to the definition of 5 near-surface gold zones forming an aggregate historical resource of approximately 8,160,000 metric tones @ 1.98 gram/tone Au (520,000 oz Au).
  • 1994: Barrick Gold Corp acquired Lac Minerals
  • From 1994 to 2003: Malartic project was shelved due to market conditions
  • 2003: Barrick Gold sold the Malartic project to McWatters Mining
  • 2004: McWatters went bankrupt
  • November 2004: Osisko acquired a 100% interest in the Canadian Malartic property through the McWatters liquidating trustee
  • January 2005: Osisko initiated a detailed compilation of the extensive historical database, including data from over 5,000 surface and underground drill holes.
  • March 2005: Osisko commenced its own drilling program on the property.
  • 2007: Mine starts open-pit excavations
  • March 2008: Community Relations Centre opened its doors in Malartic to facilitate interaction between residents and Osisko representatives
  • December 2009: Osisko announced a 1 million dollar per day investment for 2010 to complete the 1 billion dollar Malartic project.
  • February 2010: Osisko Mining unveiled an enlarged nine-million-ounce gold reserve estimate
  • October 2010: Osisko reports good results from last drilling campaign at new Barnat extension
  • November 2010: Publication of Malartic Gold Mine feasibility study
  • 2011: Production to start at Malartic Gold Mine

Malartic Project Current Project Status

If everything goes according to plan, Malartic will become the largest gold mine in Canada in 2011. Currently, Osisko only has permits to mine the Canadian Malartic deposit and will need to secure a mining permit as well as permission to divert a highway before it can start mining the South Barnat portion of the deposit, which is currently planned for 2012.

Osisko Corporate Information

Osisko Mining Corporation
Gare Windsor, Bureau 300
1100 De La Gauchetière Ouest
C.P. 211
Montréal, Québec, H3B 2S2
Tél : 514.735.7131
Fax : 514.933.3290
Email: info@osisko.com
Web site: www.osisko.com

Malartic Office
301, rue Norrie
Malartic (Québec)
Canada J0Y 1Z0

Community Centre
864, rue Royale, C.P. 2040,
Malartic (Québec)
Canada J0Y 1Z0

Directors and Officers

  • Sean Roosen, President, Chief Executive Officer and Director
  • Robert Wares, Executive Vice-President, Chief Operating Officer and Director
  • Bryan A. Coates, Vice-President Finance and Chief Financial Officer
  • John Burzynski, Vice-President of Corporate Development
  • André Le Bel, Vice-President Legal Affairs and Corporate Secretary
  • Luc Lessard, Vice-President Engineering and Construction
  • Jean-Sébastien David, Vice-President Sustainable Development
  • Sergio Cattalani, Vice-President of Exploration
  • Robert Mailhot, Vice-President of Human Resources
  • Paul Johnson, General Manager - Technical Services
  • Denis Cimon, General Manager - Canadian Malartic Project
  • Ronald Bougie, General Manager - Construction

Legal Councel
Lavery DeBilly, Montreal

Auditors
Villeneuve & Venne, g.p., Montreal

Transfer Agent

  • Trust CIBC Mellon, Montreal
  • Osisko Exchange Listings
  • TSX Venture Exchange - OSK CUSIP: 68827N107
  • Deutsche Boerse (Frankfurt) - EWX ISIN: CA68827N1078
  • SEDAR: 3273
  • Osisko Capital Structure
  • Shares Structure as of August 6, 2010
  • Outstanding shares: 370.1 M
  • Options: 14.9 M
  • Warrants: 7.0 M
  • Convertible Debentures : 0.8 M
  • Fully diluted: 392.8 M
  • Market Cap: $ 5.07 B
  • 12-Month Trading Range: $ 6.78 - $ 13.88

Dollar amounts in USD

Proven and Probable Gold reserves (oz) 6,283,000
Estimated Net Recoverable Gold (oz) 5,397,000
Average Annual Gold Production (oz) 591,000
Average Annual Silver Production (oz) 754,000
Cash Cost per ounce before royalties $320
Cash Cost per ounce with royalties, net of silver revenues $319
Total Investment (CAPEX) $789 M
CAPEX per recoverable oz $146
CAPEX to completion $643 M
CAPEX to completion per recoverable oz $119
Additional Funding Requirements $553 M
Sustaining Capital $95 M
Closure Costs $45 M
Operating Cash flow pre-tax $2,463 M
IRR - pre-tax (CAPEX to completion) 28.8%
IRR - after-tax (CAPEX to completion) 25.1%
Payback 42 months
Mine Life 10 years
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