Osisko Mining has increased the total inferred resource estimate for its Hammond Reef gold project near Atikokan, Ontario, to 10.52 million oz of gold based on a 0.30 g/mt gold lower cut-off. Osisko gained the project when it acquired Brett Resources for about C$372 million in 2010. The new estimate is based on about 300,000 m of drilling by Brett and Osisko from January 2010 to July 2011. Osisko anticipates that drilling of an additional 130,000 m by February 2012 will allow the in-pit deposit to be upgraded to measured and indicated during the first quarter of 2012.
The in-pit inferred resource currently stands at 6.86 million oz at a diluted grade of 0.63 g/mt gold, based on a Whittle-optimized pit shell using a gold price of $1,200/oz, a corresponding lower cut-off grade of 0.28 g/mt gold, and a waste:ore strip ratio of 1.25:1. This represents an increase of 1.36 million oz of gold above a previous resource estimate in 2009. The Whittle shell has approximate maximum dimensions of 2,500 m in length, 1,050 m in width, and 380 m in vertical depth.
Osisko expects to release a further resource update for the Hammond Reef project at the end of the first quarter of 2012, with a feasibility study to follow. (www.osisko.com)