Mr. John Burzynski reports
OSISKO INTERSECTS 16.1 G/T AU OVER 8.3 METRES AT GARRISON
Osisko Mining Inc. has released new results from the 2017 drill program at its 100-per-cent-owned Garrison gold project located in Garrison township, Ontario. Over 80,000 metres of new drilling have been conducted by Osisko on the Garrison project since its acquisition in late 2015. A total of 28 new intercepts in nine holes are reported in this release, with significant assay results presented in the associated table.
Significant new results include:16.1 grams per tonne gold over 8.3 metres in OSK-G17-454; 3.02 g/t Au over 23.2 metres and 1.52 g/t Au over 50.0 metres in OSK-G17-389; 5.32 g/t Au over 12.6 metres in OSK-G17-459; and 8.11 g/t Au over 2.4 metres in OSK-G17-462.
The new results continue to show the increasing potential of the 903 zone with proven extension toward southwest, northwest and south and to confirm the extent of known mineralization in the Garrcon zone.
Hole No.From ToInterval Au uncutAu cut to 30 g/t (m)(m) (m)(g/t) (g/t)OSK-G17-361 60.0 68.0 8.0 1.0577.0 85.0 8.0 0.8799.4104.6 5.2 1.48OSK-G17-389101.5124.723.2 3.02including105.0106.0 1.0 17.8and115.0120.0 5.0 7.38 181.2194.012.8 1.00 326.0327.0 1.0 9.03 470.0475.0 5.0 1.46 514.0517.0 3.0 1.99 537.0587.050.0 1.52including542.0561.019.0 2.97OSK-G17-396 48.6 64.616.0 1.03 220.2221.2 1.0 7.12OSK-G17-443202.2207.0 4.8 1.06 186.5192.0 5.5 0.77 196.0198.4 2.4 1.37 373.2375.0 1.8 1.32 481.5483.6 2.1 1.65OSK-G17-448370.7390.619.9 0.93including381.7390.6 8.9 1.34 469.0476.0 7.0 1.00OSK-G17-454 67.0 75.3 8.3 16.114.976.0 79.0 3.0 2.9896.7102.6 5.9 1.76OSK-G17-458 40.0 45.0 5.0 1.0353.2 60.3 7.1 1.22OSK-G17-459 79.0 95.216.2 1.21 105.0117.612.6 5.32including109.3113.0 3.7 11.5 232.0234.3 2.3 5.92OSK-G17-462 58.0 61.0 3.0 3.2669.6 72.0 2.4 8.11NotesTrue widths are estimated at 65 to 90 per cent of the reported core length interval.
OSK-G17-361 was drilled at the eastern part of the 903 zone and intercepted three mineralized intervals: 1.05 g/t Au over 8.0 metres, 0.87 g/t Au over 8.0 metres and 1.48 g/t Au over 5.2 metres. The three zones correspond to syenite dikes with quartz veining and sulphides near their contacts with fuchsite-altered ultramafic rocks.
OSK-G17-389 was a vertical hole drilled at the central part of the Garrcon zone, intercepting the deep Garrcon mineralized zone. Six mineralized zones were intercepted including 3.02 g/t Au over 23.3 metres, shallow mineralization associated with zones of intense fracturing and quartz veining with albite, sericite and iron carbonate alteration. A second mineralized zone averaged 1.0 g/t Au over 12.8 metres with the same mineralization style. A third mineralized zone returned 9.03 g/t Au over 1.0 metre associated with a small zone of sericite-iron carbonate alteration with discrete quartz veins. Three additional deeper mineralized zones returned 1.46 g/t Au over 5.0 metres, 1.99 g/t Au over 3.0 metres and 1.52 g/t Au over 50.0 metres. This deeper mineralization is associated with vein breccia structures with sericitic alteration and occasional crustiform quartz-carbonate veins.
OSK-G17-396 was drilled in the central part of the 903 zone where it intercepted two significant mineralized zones, the first averaging 1.03 g/t Au over 16.0 metres associated with the upper part of a syenite dike with albitic alteration, quartz-carbonate veining and pyrite dissemination; and the second averaging 7.12 g/t Au over 1.0 metre, associated with the contact between ultramafic rocks and a thin deformed layer of Temiskaming sediments.
OSK-G17-443 targeted the Garrcon zone, south of the bulk sample pits intercepting four mineralized zones including: 1.06 g/t Au over 4.75 metres; 1.37 g/t Au over 2.4 metres; 1.32 g/t Au over 1.8 metres; and 1.65 g/t Au over 2.1 metres. All intervals show the typical mineralization style of Garrcon, sediment-hosted fracture and vein zones with associated albite, sericite, and iron carbonate alteration.
OSK-G17-448 was drilled in the southeast part of the 903 zone targeting mineralization observed in hole OSK-G17-390 (see press release dated Jan. 15, 2018). The hole intercepted two mineralized zones, the first averaging 0.93 g/t Au over 19.9 metres associated with a syenite dike with albite-hematite alteration, quartz veining and sulphide dissemination; the second intercepted 1.0 g/t Au over 7.0 metres at the discordant contact between Temiskaming sediments and ultramafic volcanic rocks.
OSK-G17-454 intercepted three mineralized zones, the first averaging 16.1 g/t Au over 8.3 metres associated with strong sodic alteration and veining in a coarse-grained syenite porphyry. A second zone averaged 2.98 g/t Au over 3.0 metres in fuchsite-altered ultramafic rocks near the contact with the previously mentioned syenite dike. A third deeper zone averaged 1.76 g/t Au over 5.9 metres associated with the upper contact of a syenite dike with albite-hematite alteration.
OSK-G17-458 and OSK-G17-459 were drilled in the central 903 zone, in the same section, above and below OSK-G17-326 (see press release dated Feb. 1, 2017), respectively. OSK-G17-458 intercepted 1.03 g/t Au over 5.04 metres and 1.22 g/t Au over 7.12 metres, both associated with contacts between ultramafic rocks and albite-altered syenite dikes. OSK-G17-459 intercepted 1.21 g/t Au over 16.2 metres in altered syenite near the contact with ultramafic rocks; 5.32 g/t Au over 12.6 metres in a strong carbonate alteration zone within a syenite dike with dissemination of coarse pyrite; and 5.92 g/t Au over 2.3 metres in green sericite-pyrite alteration hosted by Temiskaming sediments in a fracture zone near the contact with ultramafic rocks.
OSK-G17-462 was drilled in the northwestern part of the 903 zone intercepting two mineralized intervals: the first averaging 3.26 g/t Au over 3.0 metres associated with a thin mineralized layer of sediments and 8.11 g/t Au over 2.5 metres in fuchsite-altered ultramafic rocks near the contact with an albite-altered lamprophyre dike.
Qualified person
The scientific and technical content of this press release has been reviewed, prepared and approved by Gernot Wober, PGeo, vice-president of exploration, Canada, for Osisko Mining, who is a qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
Quality control
True widths of the new exploration intercepts reported in this press release have yet to be determined, but are typically 65 to 90 per cent of reported core lengths. Additional drilling is planned for the immediate area, which will enable the true width determination. Assays are uncut except where indicated, and calculated intervals are reported over a minimum length of two metres using a lower cut-off of 1.0 g/t Au. All HQ core assays reported were obtained by either whole sample rock metallic screen/fire assay or standard 30-gram fire assaying with ICP finish at SGS Minerals Services in Cochrane, Ont., and Bureau Veritas in Timmins, Ont. The whole sample metallic screen assay method is selected by the geologist when samples contain coarse gold or any samples displaying gold initial fire assay values greater than three g/t. Drill program design, quality assurance/quality control and interpretation of results are performed by qualified persons employing a quality assurance/quality control program consistent with NI 43-101 and industry best practices. Standards and blanks are included with every 20 samples for quality assurance/quality control purposes by the corporation, as well as the lab. Approximately 5 per cent of sample pulps are sent to secondary laboratories for check assays.
About the Garrison project
The Garrison project area is composed of 214 mineral claims, 25 mining leases and 87 patent claims encompassing approximately 8,000 hectares. Both Garrcon and Jonpol have resource estimates that are described in a technical report prepared in accordance with NI 43-101, which was completed by a previous operator, Northern Gold Mining Inc. (entitled "Technical report on the Golden Bear project -- Garrison property: Larder Lake mining division, Garrison township, Ontario, Canada), dated Dec. 30, 2013, with an effective date of Dec. 30, 2013. The Garrison technical report was prepared by A.C.A. Howe International Ltd. for Northern Gold Mining (a wholly owned subsidiary of Osisko) and is available on Osisko's website and on SEDAR under Northern Gold Mining's issuer profile.
Resource estimates were conducted by A.C.A. Howe International according to CIM (Canadian Institute of Mining, Metallurgy and Petroleum) standards. The Garrcon zone estimates showed 15.1 million tonnes with an average grade of 1.07 g/t Au (521,000 ounces) in measured resources; 14.1 million tonnes averaging 1.16 g/t Au (526,000 ounces) in indicated resources; and 1.7 million tonnes averaging 0.72 g/t Au (39,000 oz) in inferred resources. Potential underground resources of 5.1 million tonnes averaging 3.49 g/t Au (577,000 ounces) in the inferred category were also outlined. Resources were reported at a cut-off grade of 0.4 g/t Au for open-pit extraction and 1.5 g/t in a bulk underground mining scenario using a gold price of $1,250 (U.S.) per ounce.
At the Jonpol zone, resources were estimated as 870,000 tonnes averaging 5.34 g/t Au (150,000 ounces) in the indicated category; and 1.07 million tonnes averaging 5.56 g/t Au (192,000 ounces) in inferred resources. Resources were reported at a cut-off grade of 3.0 g/t Au and assume an underground extraction scenario using a gold price of $1,250 (U.S.) per ounce.
Readers are cautioned that inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Garrcon zone
The Garrcon zone has a shallow plunge eastward along the footwall of the Destor-Porcupine fault zone with the bulk of the resource in the western, more densely drilled area. The zone is exposed at surface and has potential for open-pit bulk mining at an estimated overall stripping ratio of 1.8 to 1. There is potential for additional underground resources below the pit and along the easterly plunge of the zone, which is open for further exploration downdip and along strike.
The Garrcon shaft was sunk in 1935 and 1936 by the Consolidated Mining and Smelting Co. of Canada (Cominco), and the Shaft and South zones were tested for high-grade gold mineralization. Cominco drove approximately 1,430 metres of drifts and crosscuts, mining underground veins. Diamond drilling by Cominco and Lac Minerals Ltd. in the mid- to late 1980s identified broad sections of low-grade mineralization. In 2006 to 2007, ValGold Resources Ltd. conducted additional drilling confirming these zones. From 2009 to 2013, Northern Gold Mining Inc. conducted 97,000 metres of diamond drilling, which delineated the current resource.
In 2014, Northern Gold Mining was granted a trial mining permit, allowing the extraction of up to 150,000 tonnes. Northern Gold Mining mined 73,534 dry tonnes, which were processed at the nearby Holt mill facility, recovering 3,516 ounces at an average head grade of 1.55 g/t and a recovery of 95.9 per cent. The trial production permit remains active.
Jonpol zone
Jonpol is situated in the Munro fault zone, a west-striking splay off the north side of the Destor-Porcupine fault. Hosted in a shear zone tens of metres wide in altered mafic volcanic rocks, the deposit consists of four high-grade gold mineralized zones (JP, JD, RP and East) over a strike length of 1.7 kilometres. Gold mineralization is hosted in quartz carbonate veins, in mafic and ultramafic host rocks, and is associated with intense albite and/or sericite alteration and pyrite mineralization.
In 1997, a 49,087-tonne bulk sample was extracted from the central part of the JP zone by Hillsborough Resources Ltd. with an average grade of 6.7 g/t, which produced 9,476 ounces Au. From 1985 to 2013, over 130,000 metres of drilling was completed on the property by previous operators. Development work on the JP zone included the sinking of a 184-metre shaft, as well as development of a ramp to the 150-metre level with mining on six sublevels. The Jonpol infrastructure underwent reclamation in the late 1990s and was closed out in 2001, but the existing ramp and shaft are preserved.
903 zone
This third mineralized zone present at Garrison was not included in the resource estimate reported by the previous operator in 2013. Mineralization at the 903 was discovered in 1945 by Wright-Hargreaves Mines Ltd. In 1988 Lac Minerals acquired the claims covering the current 903 zone and completed 17 drill holes totalling 4,823 metres. The property was optioned in 1990 to Jonpol and T&H Resources and subsequently returned to Lac Minerals in 1991. Northern Gold acquired the claims from a subsidiary of Barrick Gold in 2013, conducting surface exploration and six drill holes.
About Osisko Mining Inc.
Osisko is a mineral exploration company focused on the acquisition, exploration and development of precious metal resource properties in Canada. Osisko holds a 100-per-cent interest in the high-grade Windfall Lake gold deposit located between Val d'Or and Chibougamau in Quebec and holds a 100-per-cent undivided interest in a large area of claims in the surrounding Urban Barry area (82,400 hectares), a 100-per-cent interest in the Marban project located in the heart of Quebec's prolific Abitibi gold mining district, and properties in the Larder Lake mining division in Northeastern Ontario, including the Garrcon and Jonpol zones on the Garrison property, the Buffonta past-producing mine, and the Gold Pike mine property. The corporation also holds interests and options in a number of additional properties in Northern Ontario. Osisko continues to be well financed and has approximately $240-million in cash and equity investment.
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