Osisko Mining has launched a friendly, all-share offer for Brett Resources, the primary objective of the offer being acquisition of Brett’s Hammond Reef gold project, located about 23 km from Atikokan, Ontario. The offer values Brett at about C$670 million.
Hammond Reef is a large and growing development project with potential to become a substantial open-pit mine. The project currently hosts an NI 43-101 compliant inferred resource of 6.70 million oz in 259.4 million mt grading 0.8 g/mt at a 0.3 g/mt cutoff, with 97% of the resource located within 300 m of the surface. The project also offers potential for expansion of the current resource, both down dip and along strike.
A preliminary assessment study of the Hammond Reef project completed in November 2009 outlined an initial 14-year mine life operating at 50,000 mt/d. Over the first six of operation, the project would produce 463,000 oz/y of gold at cash costs of $382/oz, including royalties, net of silver credits.
Osisko is currently developing its Canadian Malartic gold project in Quebec (E&MJ, October 2009, p. 8).