Osisko Reports 1.07 g/t Au Over 130 Metres at Hammond Reef Please note that a map is available with this press release.
Please note that a map is available with this press release.
MONTREAL, QUEBEC -- (Marketwire) -- 08/09/10 -- Osisko Mining Corporation ('Osisko') (TSX: OSK)(FRANKFURT: EWX) and Brett Resources Inc. ('Brett') (TSX VENTURE: BBR) are pleased to announce results from the ongoing drilling program at Hammond Reef, located in western Ontario. The Hammond Reef project is 100 percent owned by Brett, which is currently 77.2% held by Osisko and being fully acquired by Osisko as a result of the recent all-stock bid.
Results from a total of thirty-two new holes are presented in the tables below. Highlights of definition holes within the known resource volume include 130.5 metres averaging 1.07 g/t Au (BR-295), 100.5 metres averaging 0.87 g/t Au (BR-251), and 231.0 metres averaging 0.74 g/t Au (BR-267).
The current drill program at Hammond Reef comprises mostly definition drilling within the known resource volume as well as exploration/step-out holes in the immediate area of the deposit. Osisko is in the process of expanding the drill program, which will include definition drilling on 50 by 25 metre grid along the 2.5-kilometre strike length of the known deposit (sections 1050E to 3550 E), as well as step-out holes along strike and down-dip, designed to define the outer limits of the deposit.
DEFINITION DRILL HOLES
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Hole No. Section From (m) To (m) Length (m) Au g/t
BR-220 1420E 8.9 38.2 29.3 1.10
And 96.4 128.7 32.3 1.61
And 166.2 198.6 32.4 1.06
And 271.4 355.5 84.1 0.74
including 272.3 273.0 0.7 15.95
BR-231 1520E 69.1 103.2 34.1 1.09
including 72.4 73.4 1.0 12.85
And 123.4 155.6 32.1 0.78
And 199.9 223.7 23.8 0.69
BR-240 1670E 21.1 98.4 77.3 1.33
including 32.79 33.79 1.0 20.40
BR-243 1370E 3.6 15.5 11.9 1.13
And 138.5 183.5 45.0 0.60
BR-248 3420E 72.2 157.0 84.8 1.11
including 140.67 141.67 1.0 10.95
BR-249 3205E 86.0 170.0 84.0 0.98
BR-250 1470E 48.5 66.5 18.0 0.71
And 171.5 191.0 19.5 1.82
BR-251 1470E 144.5 245.0 100.5 0.87
BR-254 3160E 111.5 182.0 70.5 0.95
including 132.5 134.0 1.5 10.60
BR-255 1620E 2.0 27.5 25.5 0.99
75.5 171.5 96.0 0.70
BR-256 1570E 21.5 39.5 18.0 0.94
And 173.0 204.5 31.5 0.76
BR-257 3160E 98.8 99.8 1.0 11.20
And 126.7 200.0 73.2 1.13
including 163.53 164.53 1.0 11.85
BR-260 3295E 98.0 167.0 69.0 0.92
BR-263 1570E 111.5 201.5 90.0 0.69
BR-264 3245E 135.5 188.0 52.5 0.66
BR-265 3205E 96.5 143.0 46.5 0.83
BR-267 1520E 56.0 287.0 231.0 0.74
BR-270 3295E 159.5 176.0 16.5 1.93
including 170.8 171.4 0.6 17.85
BR-273 3225E 95.5 107.5 12.0 0.78
And 169.0 196.0 27.0 0.88
BR-275 1470E 60.5 98.0 37.5 0.72
And 147.5 215.0 67.5 0.57
BR-295 3185E 153.5 284.0 130.5 1.07
BR-296 1210E 162.0 192.0 30.0 0.59
And 225.0 294.0 69.0 0.70
And 319.5 384.0 64.5 0.67
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The following step-out holes were designed to test the down-dip (D) and up-dip extensions (U) of the deposit, mostly in the A Zone. Highlights of step-out holes include 154.5 metres averaging 0.83 g/t Au (BR-272) and 67.5 metres averaging 0.69 g/t Au (BR-253).
STEP-OUT DRILL HOLES
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Hole No. Section From (m) To (m) Length (m) Au g/t
BR-253(D) 1670E 108.5 176.0 67.5 0.69
And 207.5 245.0 37.5 0.65
And 315.5 329.0 13.5 0.90
BR-262(U) 1620E 8.0 15.5 7.5 1.26
And 68.0 77.0 9.0 0.66
BR-266(U) 1570E 44.0 63.5 19.5 0.65
BR-271(U) 1520E 48.5 57.5 9.0 1.34
BR-272(D) 1470E 128.0 141.5 13.5 1.92
And 186.5 341.0 154.5 0.83
including 233.0 254.0 21.0 2.29
BR-286(D) 1320E 222.0 234.0 12.0 0.76
And 318.0 345.0 27.0 0.49
BR-289 (D) 1120E NIL
BR-292(D) 1210E NIL
BR-299(D) 1420E 126.0 144.0 18.0 0.69
BR-311A (D) 1670E 244.5 271.5 27.0 0.73
And 310.5 349.5 39.0 0.58
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The above holes confirm the down-dip extension of the deposit between sections 1320E and 1670E over true down-dip distances of 50 to 200 metres (and as much as 400 metres by including the previously announced results from BR-261, which returned 222 metres @ 0.68 g/t Au). Three additional step-out holes (BR-274, BR-288 and BR-291) were collared to the northeast of the known deposit, up to 350 metres from its present limit, in order to test for on-strike extensions. These holes did not return significant mineralization.
A series of 8 exploration holes were collared between 1200 and 2200 metres NE of the deposit (Snail Bay area); these holes did not intersect significant mineralization. Another 10 exploration holes were located in the Sandy & Stewart area, located 1500 m southeast of the deposit, where two holes (BR-280 and BR-282) intersected significant mineralization: 10.5 m @ 0.78 g/t Au and 34.5 m @ 0.84 g/t Au, respectively.
Sean Roosen, President and CEO of Osisko and of Brett, commented: 'Hammond Reef continues to grow and produce positive results, just as we are completing the acquisition of Brett Resources. These results indicate that the deposit is open down-dip over a minimum 350 metre strike length, and possible another 1500 metres strike further northeast. We are looking forward to an aggressive, systematic drill program over the next eighteen months to bring this quality resource into the Measured and Indicated category and to further expand the deposit.'
Osisko and Brett are presently focused on upgrading and expanding gold resources at the 100%-owned Hammond Reef Gold Deposit, located near Atikokan, Ontario. A Preliminary Assessment Study was completed on the Hammond Reef deposit on November 12, 2009 and filed on SEDAR, resulting in an Inferred Mineral Resource of 6.70 million ounces of gold (259.4 million tonnes grading 0.8 grams per tonne (g/t) gold at a cut-off grade of 0.30 g/t, which relates to the economic cut-off in the PA Study). The deposit remains open along strike and at depth and over 97% of this resource is within 300 metres of surface. For additional details of the resource estimates at Hammond Reef please refer to the November 12, 2009, July 23, 2009 and October 15, 2008 news releases of Brett Resources Inc.
All NQ core assays reported above were obtained by standard 30 g fire assaying-AA finish or gravimetric finish at ALS Chemex laboratories in Thunder Bay, Ont., and North Vancouver, B.C., ISO/IEC guideline 17025-accredited facilities. Reported drill core weighted averages were calculated using a minimum of 0.40 g/t Au over successive maximum intervals of 20 metres with an upper cut-off of 30 g/t Au where indicated. Lost core within mineralized intersections were incorporated as blank intervals and assigned a 0.001 g/t grade in all length weighted calculations.
Osisko follows strict QA-QC protocol measures in keeping with industry standards and regulatory reporting requirements. Mr. Robert Wares, P.Geo. and Executive Vice-President of Osisko and Brett, and Mr. John Zbeetnoff, P.Geo, are the Qualified Persons who have reviewed this news release and are responsible for the technical information reported herein, including verification of the data disclosed including the sampling, analytical and test data underlying the technical information.
A map of The Hammond Reef project is available at the following link: http://media3.marketwire.com/docs/osisko_map0809.pdf
Cautionary Notes Concerning Estimates of Mineral Resources
This news release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that that further work will lead to mineral reserves that can be mined economically.
Forward-Looking Statements
Certain statements contained in this press release may be deemed 'forward-looking statements'. All statements in this release, other than statements of historical fact, that address events or developments that Osisko and Brett (collectively the 'Parties') expect to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words 'expects', 'plans', 'anticipates', 'believes', 'intends', 'estimates', 'projects', 'potential', 'scheduled' and similar expressions, or that events or conditions 'will', 'would', 'may', 'could' or 'should' occur including, without limitation, the commencement of commercial production. Although the Parties believe the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all technical, economical and financial conditions will be met in order to warrant further development of the Hammond Reef Project, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, access to skilled consultants, mining development personnel, results of exploration and development activities, the Parties' limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in greater detail in Osisko's most recent Annual Information Form and in Brett's most recent Management Discussion and Analysis filed on SEDAR, which also provide additional general assumptions in connection with these statements. The Parties caution that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Parties' forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Parties believe that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.
Contacts:
Osisko Mining Corporation
John Burzynski
Vice-President Corporate Development
416-363-8653
www.osisko.com
Osisko Mining Corporation
Sylvie Prud'homme
Investor Relations
514-735-7131
Toll Free: 1-888-674-7563