Preliminary results from a bulk sample taken at its Windfall Lake deposit in Quebec delivered an average head grade of 9.7 grams gold per tonne and 5.5 grams silver per tonne, Osisko Mining (TSX: OSK) reports.
The sample head grade from Zone 27 is 39% higher than indicated in the resource block model for the area, a "strong result" and "an early Christmas gift to our shareholders," John Burzynski, Osisko's president and CEO stated.
The Zone 27 bulk sample is the first of three planned 5,000 tonne samples from Windfall. The preliminary results represent 2,078 tonnes mined from the zone, and the remaining 2,922 tonnes will be processed in 2019.
Osisko expects to reconcile results from the full 5,000 tonne sample by March 2019.The sample processing was done at Northern Sun Mining's Redstone mill near Timmins, Ontario.
Processing produced gold and silver gravity and flotation concentrates.
The Windfall Lake deposit is situated between Val-d'Or and Chibougamau in Quebec's Abitibi region. The deposit is one of the highest grade resource-stage gold projects in Canada and mineralization occurs in four principal zones: Lynx, Zone 27, Caribou and Underdog. The deposit is defined from surface to a depth of 900 metres and remains open long strike and at depth.
Mineralization has been identified 30 metres from surface in some areas and as deep as 2,000 metres in others.
Windfall Lake currently has 2.87 million tonnes grading 8.17 grams gold per tonne for 754,000 ounces of contained gold in the indicated resource category and an additional 10.35 million tonnes averaging 7.11 grams gold for 2.36 million ounces of contained gold in the inferred category.
Over the last year Osisko Mining's shares have traded between $1.60 and $3.77. At press time in Toronto Osisko was trading at $2.67 per share.
The company has 257 million common shares outstanding for a market cap of $686 million.
This story first appeared on The Northern Miner.