Osisko Consolidates Malartic Position
MONTREAL — Osisko Exploration Ltd. (TSX VENTURE:OSK) (Deutsche Boerse:EWX) is pleased to announce that it has signed a letter of intent (LOI) with Ressources Dianor Inc. and its wholly-owned subsidiary, Threegold Resources Inc. (the “Vendors”), giving Osisko the exclusive right to purchase a block of six claims covering 221 hectares and located in the Malartic area, Quebec. The LOI provides for a due diligence period ending January 15, 2005, during which time Osisko must perform due diligence on the property, obtain regulatory approval for the transaction and finalize a formal agreement (the “Agreement”).
Osisko has the right to acquire a 100% interest in the claim block in consideration for paying $20,000 cash and issuing 50,000 common shares on signing of the Agreement. The property is subject to a 2% NSR payable to a private individual, which can be purchased by Osisko for a cash payment of $2M.
The six claim block is adjacent to the southwest portion of Osisko’s Canadian Malartic property and it covers the ground located immediately south of the “P” mineralized zone. The block is also adjacent to Osisko’s 31 claim block located to the west. This acquisition consolidates Osisko’s ground position in the Malartic camp, giving the Company a contiguous 1697 hectare property.
The Malartic property hosts a near-surface historical resource of approximately 520,000 ounces of gold distributed in five near-surface mineralized zones (as previously announced in the Company’s November 23, 2004 press release). Osisko is currently compiling the extensive data base from the property and plans to conduct additional test work with the short-term objective of confirming a significant near-surface resource amenable to open pit mining. Review of the available data indicates potential for additional surface zones of mineralization and high-grade stockwork gold zones at depth. Diamond drilling on the property is expected to begin in early 2005.
Osisko Exploration Ltd. (TSX VENTURE:OSK)
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