Osisko Mining
Encyclopedia
Osisko is a development stage precious metals mining company headquartered in Montreal, Quebec. It operates in Canada with a focus on gold mines in the Abitibi gold belt
of Quebec. The company was known as Osisko Exploration LTD. before changing its name in May 2008.
It owns at least 17.41 million ounces of gold reserves (including 10.71 in malartic and 6.7 at Hammond Reef, malartic reserves up 20% in March 2011 due to higher gold prices) and over 230 square km of land in the Malartic-Cadillac area.
Based on market capitalization it is the 9th largest Canadian gold mining company with a value of $5.2 billion.
The Canadian Malartic mine will be the biggest gold mine ever in Quebec and one of the biggest gold mines in Canada.
Production at Canadian Malartic (its flagship gold mine) is expected to begin in 2011 (reached commercial production May 19, 2011).
The company is named after Quebec's Osisko Lake
because of its historical significance. The lake, located within Quebec's portion of the Abitibi gold belt in the region of Rouyn-Noranda is where in 1920 Noranda
founder Edmond Henry Horne
made his first major mineral discovery, a deposit that became known as the Horne Mine.
acquired a 3.2% interest in Osisko (at the time Goldcorp owned 12.9% of company shares); On February 9, 2011 Goldcorp sold its 10.1% equity interest in Osisko for $530 million. Later that year in December, in a joint venture with Clifton Star Resources Osisko acquired Quebec's Duparquet mining project, an area that produced 1 million ounces of gold between 1931 and 1957 when it was operated by Beattie Gold Mine. So far the Company has infused $66.83 million into the venture. On June 17, 2011 it withdrew from Duparquet.
In March 2010 Osisko filed a takeover offer for Brett Resources that proved to be success on May 19, 2010 (initially 77% of the company was purchased, on August 13 it purchased the other 23%). The deal, valued at more than $372 million, enabled Osisko to acquire the Hammond Reef Gold Project in Atikokan near Thunder Bay, Ontario and its 6.70 million ounces of gold. If all regulatory approvals are met, the mine is expected to open in 2015 when it will be capable of producing 463,000 ounces of gold annually.
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The gold deposit, which extends a couple km along the Cadillac fault and includes porphyry gold has a resource of up to 348 tonnes. Only areas considered to have more than 3g/ton of gold will be mined. Expansion projects near Malartic were considered after successful drilling results in Southern Barnat, however new licenses were needed. 204 of the 205 homeowners in the area representing about 1/7 of the town's population, were bought out but the 1 remaining tried to use his interest in the area to keep the company from going ahead despite support for it from the mayor who estimates that it will create 880 direct and indirect jobs. In August 2010 a superior court judge awarded the property to Osisko Mining Corporation after determining it was an obstacle for important preparation work at the project. Production at the mine is scheduled to begin in June 2011. The Malartic mine reached commercial production in May/June 2011 after processing averaged 33,300 tonnes per day in the four weeks ended June 17, 2011.
In March 2008, Osisko created Le Fonds Essor Malartic Osisko, a 3 million dollar fund to be used in support of Malartic economic development projects, public facilities and infrastructure.
Also, a project follow-up committee was established to oversee the operation and bring up any concerns the community might have such as those regarding the environment. Its members were chosen with the intent that the committee be completely independent of the Company to avoid conflicts of interest.
Gold mining in Malartic produced about 5 million ounces of gold between 1935 and 1983. The last major mining in the area was done by Barrick Gold in 2002.
The Dunn property is located 35km NE of Rouyn-Noranda, Quebec; It involves 1,990 hectares of land in Clericy and La Pause and ownership is shared with Midland Exploration, a tsx venture exchange listed exploration company focused on mining opportunities in Quebec.
The stake in the Mount Joy property in Timmins, Ontario is minor however, it has the option of becoming majority owner (up to 70%) by incurring project expenditures of 4-5 million dollars total in installments made on specific dates, by delivering a bankable feasibility study, and by securing additional financing. The project, which covers 1,500 hectares of land, is controlled by Claim Post Resources, a company that in which Osisko owns stock. Over the last century, 68 million ounces of gold have been mined in Timmins, Ontario.
The Goldboro property is located in Goldboro, Nova Scotia
in the region of Guysborough County.
Because of an agreement made in November 2009 with Orex Exploration
, which currently controls the project, Osisko can obtain a 50 % stake by incurring project expenditures. Gold production in the area goes back to the time period of 1893-1912 when over 50,000 ounces of gold was recovered.
On March 21, 2011 Osisko finalized an agreement with Sparton Resources to acquire 60-70% of a gold property 7,500 hectares in area, in Atikokan, Ontario. The property is next to Osisko's Hammond Reef project which the company is trying to expand. The deal requires Osisko to spend $1 million on exploration in 2011. Currently there's no gold mining operations in Atikokan but the Hammond Reef project could begin production as early as 2015.
On November 22, 2011 Osisko signed an option agreement with Midland Exploration giving Osisko the ability to acquire a 50% interest in Ontario's Casault gold property. The property is just 40 km east of Detour Gold
's Detour Lake gold project (one of Canada's largest deposits).
Abitibi gold belt
The abitibi gold belt is a region of Canada that extends from Wawa, Ontario to Val-d'Or, Quebec. Located within the mineral rich abitibi greenstone belt, the gold belt is an established gold mining district having produced over 100 mines, and 170 million ounces of gold since 1901...
of Quebec. The company was known as Osisko Exploration LTD. before changing its name in May 2008.
It owns at least 17.41 million ounces of gold reserves (including 10.71 in malartic and 6.7 at Hammond Reef, malartic reserves up 20% in March 2011 due to higher gold prices) and over 230 square km of land in the Malartic-Cadillac area.
Based on market capitalization it is the 9th largest Canadian gold mining company with a value of $5.2 billion.
The Canadian Malartic mine will be the biggest gold mine ever in Quebec and one of the biggest gold mines in Canada.
Production at Canadian Malartic (its flagship gold mine) is expected to begin in 2011 (reached commercial production May 19, 2011).
The company is named after Quebec's Osisko Lake
Osisko Lake
Osisko Lake is a lake in western Quebec, Canada. It is 3 km long, and 3 km wide. The city of Rouyn-Noranda is on its western shore. The lake is a recreational area, surrounded by trails and a bike path. The city hospital is also located on the lake shore. Lake Osisko has been a poluted...
because of its historical significance. The lake, located within Quebec's portion of the Abitibi gold belt in the region of Rouyn-Noranda is where in 1920 Noranda
Noranda
Noranda Inc. was a mining and metallurgy company originally from Rouyn-Noranda, Quebec, Canada. It was listed on the TSX under the symbol NRD.LV. After eventually acquiring a large interest in rival mining company Falconbridge, it merged with that company in 2005. The combined company continued...
founder Edmond Henry Horne
Edmond Henry Horne
Edmund Henry Horne, was a Canadian businessman and prospector. He was most famous for being the founder of Noranda, a mining and metallurgy company originally from Rouyn-Noranda, Quebec, Canada....
made his first major mineral discovery, a deposit that became known as the Horne Mine.
Acquisitions
On July 3, 2009 Osisko purchased 49.1% of Bowmore Exploration Ltd. a month before GoldcorpGoldcorp
Goldcorp Inc. is a gold producer headquartered in Vancouver, British Columbia, Canada. Goldcorp has 16 operations and development projects in 6 countries across the Americas....
acquired a 3.2% interest in Osisko (at the time Goldcorp owned 12.9% of company shares); On February 9, 2011 Goldcorp sold its 10.1% equity interest in Osisko for $530 million. Later that year in December, in a joint venture with Clifton Star Resources Osisko acquired Quebec's Duparquet mining project, an area that produced 1 million ounces of gold between 1931 and 1957 when it was operated by Beattie Gold Mine. So far the Company has infused $66.83 million into the venture. On June 17, 2011 it withdrew from Duparquet.
In March 2010 Osisko filed a takeover offer for Brett Resources that proved to be success on May 19, 2010 (initially 77% of the company was purchased, on August 13 it purchased the other 23%). The deal, valued at more than $372 million, enabled Osisko to acquire the Hammond Reef Gold Project in Atikokan near Thunder Bay, Ontario and its 6.70 million ounces of gold. If all regulatory approvals are met, the mine is expected to open in 2015 when it will be capable of producing 463,000 ounces of gold annually.
Production
During the three months from June 30 to September 30, 2011 the company produced 73,814 ounces of gold up from 27,100 the previous quarter, and 40,715 ounces of silver (up from 16,432 the quarter prior). Gold was produced at a cash cost of US$939/oz (quarter). In terms of sales 72,100 ounces of gold and 49,100 ounces of silver were sold during the quarter. Operating costs account for 79% of total costs. For the first time since 2008 the company had positive earnings ($9.3m)Malartic mine
The Canadian Malartic mine is located in Malartic, a community about 550 km northwest of Montreal in the administrative region of Abitibi-TémiscamingueAbitibi-Témiscamingue
Abitibi-Témiscamingue is a region located in western Quebec, Canada, along the border with Ontario. It became part of the province in 1898. It has a land area of 57,674.26 km2 . As of the 2006 census, the population of the region was 143,872 inhabitants.-History:The land was first occupied...
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The gold deposit, which extends a couple km along the Cadillac fault and includes porphyry gold has a resource of up to 348 tonnes. Only areas considered to have more than 3g/ton of gold will be mined. Expansion projects near Malartic were considered after successful drilling results in Southern Barnat, however new licenses were needed. 204 of the 205 homeowners in the area representing about 1/7 of the town's population, were bought out but the 1 remaining tried to use his interest in the area to keep the company from going ahead despite support for it from the mayor who estimates that it will create 880 direct and indirect jobs. In August 2010 a superior court judge awarded the property to Osisko Mining Corporation after determining it was an obstacle for important preparation work at the project. Production at the mine is scheduled to begin in June 2011. The Malartic mine reached commercial production in May/June 2011 after processing averaged 33,300 tonnes per day in the four weeks ended June 17, 2011.
In March 2008, Osisko created Le Fonds Essor Malartic Osisko, a 3 million dollar fund to be used in support of Malartic economic development projects, public facilities and infrastructure.
Also, a project follow-up committee was established to oversee the operation and bring up any concerns the community might have such as those regarding the environment. Its members were chosen with the intent that the committee be completely independent of the Company to avoid conflicts of interest.
Gold mining in Malartic produced about 5 million ounces of gold between 1935 and 1983. The last major mining in the area was done by Barrick Gold in 2002.
Exploration projects
The company is also involved in other exploration projects in eastern Canada. They include the Dunn, Mount Joy, and Goldboro properties.The Dunn property is located 35km NE of Rouyn-Noranda, Quebec; It involves 1,990 hectares of land in Clericy and La Pause and ownership is shared with Midland Exploration, a tsx venture exchange listed exploration company focused on mining opportunities in Quebec.
The stake in the Mount Joy property in Timmins, Ontario is minor however, it has the option of becoming majority owner (up to 70%) by incurring project expenditures of 4-5 million dollars total in installments made on specific dates, by delivering a bankable feasibility study, and by securing additional financing. The project, which covers 1,500 hectares of land, is controlled by Claim Post Resources, a company that in which Osisko owns stock. Over the last century, 68 million ounces of gold have been mined in Timmins, Ontario.
The Goldboro property is located in Goldboro, Nova Scotia
Goldboro, Nova Scotia
Goldboro is a Canadian rural community in Guysborough County, Nova Scotia.Located on the Eastern Shore along Route 316, Goldboro is approximately 16 kilometres west of the shire town of Guysborough....
in the region of Guysborough County.
Because of an agreement made in November 2009 with Orex Exploration
Orex Exploration
Orex Exploration is a Canadian advanced stage junior gold exploration company headquartered in Montreal, Quebec. It operates in Nova Scotia, Canada with a focus on exploring former gold mines and properties in the Goldboro, Nova Scotia, and surrounding areas of Guysborough County, Nova Scotia.The...
, which currently controls the project, Osisko can obtain a 50 % stake by incurring project expenditures. Gold production in the area goes back to the time period of 1893-1912 when over 50,000 ounces of gold was recovered.
On March 21, 2011 Osisko finalized an agreement with Sparton Resources to acquire 60-70% of a gold property 7,500 hectares in area, in Atikokan, Ontario. The property is next to Osisko's Hammond Reef project which the company is trying to expand. The deal requires Osisko to spend $1 million on exploration in 2011. Currently there's no gold mining operations in Atikokan but the Hammond Reef project could begin production as early as 2015.
On November 22, 2011 Osisko signed an option agreement with Midland Exploration giving Osisko the ability to acquire a 50% interest in Ontario's Casault gold property. The property is just 40 km east of Detour Gold
Detour Gold
Detour Gold Corp. is a Canadian gold mining company with operations centered around the Detour Lake gold project, north of Cochrane, Ontario. Most of the company's employees are from Cochrane and Timmins, Ontario...
's Detour Lake gold project (one of Canada's largest deposits).
Other
- In December 2009, the Company and Robert Wares, Osisko's COO together donated 4.1 million dollars worth of shares in the company to the Department of Earth and Planetary Sciences at McGill University.
- In 2009, the Company's management received the Northern Miner’s Mining Persons of the Year award
See also
- :fr:Projet Osisko Projet Osisko
- Malartic, QuebecMalartic, QuebecMalartic is a town on the Malartic River in northwestern Quebec, Canada, in the La Vallée-de-l'Or Regional County Municipality. It is located about east of the centre of Rouyn-Noranda along Quebec Route 117 and the Canadian National Railway....