Osisko Mining (TSX: OSK) has found a new and shallow gold zone 350 metres north of the main deposit at its Windfall property in Quebec, one of the highest grade resource-stage gold projects in Canada.
The mineralization occurs between a depth of 50 metres and 275 metres, and is open at depth and along strike.
Highlights include 393 grams gold per tonne over 2 metres starting from 100 metres downhole in hole 19-1883 and 31 grams gold over 6 metres from 211 metres downhole in hole 1911.
John Burzynski, Osisko's president and CEO, says in a press release that the new discovery "is a very positive sign that there is good potential to add new ounces near surface."
The new zone consists of gold-bearing quartz veins hosted in a silica-carbonate-sericite alteration envelope up to six metres wide.
Windfall, situated between Val-d'Or and Chibougamau, has 754,000 contained oz. gold within 2.87 million indicated tonnes grading 8.17 grams gold and 2.37 million contained oz. gold within 10.35 million inferred tonnes grading 7.11 grams gold.
The mineralization at Windfall is in four main zones - Lynx, Zone 27, Caribou and Underdog - all of which make up sub-vertical lenses following intrusive porphyry contacts plunging to the northeast.
The deposit is well-defined to a depth of 900 metres and remains open along strike and at depth.
The mineralization has been identified to a depth of 30 metres in some areas, and as deep as 2,000 metres in others.
Osisko shares are trading at $3.09 in a 52-week range of $1.60 to $3.75. The company has an $812-million market capitalization.
Commenting on the new gold zone results, Haywood Securities Mick Carew says they "reflect the continued assertion that Windfall is part of a larger, dynamic gold mineralized system" and "demonstrate the significant exploration potential beyond the immediate footprint of the current Windfall resource."