Osisko Mining Corporation (TSX:OSK)(FRANKFURT:EWX) and Golden Valley Mines Ltd. (TSX VENTURE:GZZ) have announced additional results from the 2010 drill program targeting the Jeffrey Zone on the Malartic CHL Property, currently under option from Abitibi Royalties Inc., a wholly-owned subsidiary of Golden Valley Mines Ltd., and located immediately east of Osisko's 100%-owned Canadian Malartic gold property.
Highlights from twenty-nine drill holes include 67.0 metres averaging 1.06 g/t Au (CHL10-2282) and 26.7 metres averaging 2.57 g/t Au (CHL10-2273) in the Jeffrey zone. This set of holes includes new Canadian Malartic style mineralization discovered in the Pontiac sediments immediately south of the Jeffrey Zone. Significant intersections include 41.0 metres averaging 2.50 g/t Au (CHL10-2275 uncut) and 24.0 metres averaging 3.36g/t Au (CHL10-2285).
The new mineralization identified in the Pontiac metasediments is located 20m to 35m south of the contact with the Cadillac fault and the porphyry body hosting the Jeffrey zone. The zone appears to have a true width of approximately 7 to 10 metres and plunges steeply to the north toward the contact with a steep rake to the east. It is now traced over 75 m of strike from section 7325E to 7400E and remains untested to the west. The disseminated mineralization sits in altered greywacke and in porphyry, which is similar to that of the Canadian Malartic deposit.
Mineralization at the Jeffrey Zone is located along the southern limit of the Cadillac Break, where it consists of disseminated pyrite-gold in potassic-altered quartz-feldspar porphyry dikes, in contact with a predominately ultramafic flow sequence, and in subordinate diorite-gabbro and sedimentary units. Narrower, higher-grade mineralization is hosted in quartz veined (silicified) porphyry or talcose and chlorite-altered ultramafic schists.
Drill holes CHL10-2276, CHL10-2283, CHL10-2284, CHL10-2286, CHL10-2287, CHL10-2290 and CHL10-2301 did not intersect significant mineralization. Assays are pending for drill holes CHL10-2292, CHL10-2293, CHL10-2296 and CHL10-2297. Definition drilling on the Jeffrey Zone is based on a series of sections spaced at 25-metre intervals over an east-west strike length of 400-metres and north-south distance of 135 metres. The objective of the current program is to gather sufficient drill information along strike and to depth to complete an initial indicated resource calculation by the beginning of Q2 2011.
Continuity of steeply-dipping mineralization at Jeffrey is now well established along a strike length of 400 metres (sections 7200E to 7600E), with a true width of 30 to 60 metres. Mineralization is more sporadic further east between sections 7600E and 8100E. Mineralization has been traced to a depth of 200 metres on most sections, where it remains open at depth. The western extremity of the Jeffrey Zone (section 7200E) lies 1000 metres east of the eastern limit of the Barnat extension (see October 14, 2010 press release), and most of the intervening kilometre has yet to be drilled.
All NQ core assays reported above were obtained by standard 50 g fire assaying-AA finish or gravimetric finish at ALS Chemex laboratories in Val d'Or, Quebec. Reported drill core weighted averages were calculated using a minimum of 0.40 g/t Au over successive intervals of 20 metres. The lengths of mineralized intervals of less than 20 metres were minimized, and an upper cut-off of 30 g/t Au was applied to individual assays where indicated. Intervals containing individual assays that are greater than six times the average of the interval are included separately. Intersected drifts or lost core within mineralized intersections were incorporated as blank intervals.
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 Mr. François Bouchard, P. Geo., are the Qualified Persons who has 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.
Osisko has the right to acquire a 70% interest in the Malartic CHL Property in consideration for $150,000 in cash payments over a four year period (total amount paid) and by completing a minimum $2,000,000 in exploration work over a four year period. Upon earning its 70% interest, Golden Valley will maintain a free-carried interest of 30% to production.
Source: Osisko Mining Corporation