Hook-up Expected Early 2024

(Toronto, October 12, 2023) Osisko Mining Inc. (OSK:TSX. “Osisko” or the “Corporation”) is pleased to announce that “Windfall Mining Group”(its 50% jointly owned partnership with a Gold Fields Limited subsidiary), has concluded the hydro-electricity power allocation agreement with Hydro-Québec, a wholly-owned Crown corporation of the Québec Government.

The forecasted power demand and allocation for the electrical Installation is 27,400 kW for Windfall.  Power will be delivered at the MICO substation located in nearby Waswanipi, Quebec, then be transported using a dedicated power line (currently under construction) from the MICO substation to Windfall by Miyuukaa Corporation (please see news release of Osisko dated March 16, 2023 entitled “Osisko Announces Definitive Agreement with Miyuukaa to transport Hydroelectric Power to Windfall Project”).

John Burzynski, Chairman and Chief executive officer commented: “Receipt of the Windfall power allocation is a major milestone, as it will significantly reduce greenhouse gas emissions and project power costs.  It is well aligned with our joint-venture ESG goals.”

Power line construction work is progressing on schedule with the hook-up date anticipated in early 2024.

About the Windfall Gold Deposit

The Windfall gold deposit is located between Val-d’Or and Chibougamau in the Abitibi region of Québec, Canada. The mineral resource estimate on Windfall (with an effective date of June 7, 2022 ) (the “Windfall Resource Estimate”) and the mineral reserve estimate on Windfall (with an effective date of November 25, 2022) (the “Windfall Reserve Estimate”) are described in the technical report entitled “Feasibility Study for the Windfall Project, Eeyou Istchee James Bay, Québec, Canada” (the “FS Technical Report”) and dated January 10, 2023 (with an effective date of November 25, 2022).  The Windfall Resource Estimate, assuming a cut-off grade of 3.50 g/t Au, comprises 811,000 tonnes at 11.4 g/t Au (297,000 ounces) in the measured mineral resource category, 10,250,000 tonnes at 11.4 g/t Au (3,754,000 ounces) in the indicated mineral resource category and 12,287,000 tonnes at 8.4 g/t Au (3,337,000 ounces) in the inferred mineral resource category.  The Windfall Mineral Reserve, assuming 3.5 g/t operating, 2.5 g/t incremental, and 1.7 g/t development cut-off grade, comprises 12,183,000 tonnes at 8.06 g/t Au (3,159,000 ounces) in the probable mineral reserves category.  The key assumptions, parameters, limitations and methods used in the feasibility study for Windfall, including the related Windfall Resource Estimate and Windfall Reserve Estimate, are described in the FS Technical Report, which was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).  The FS Technical Report is available on SEDAR+ (www.sedarplus.com) under Osisko’s issuer profile.  The Windfall gold deposit is currently one of the highest-grade resource-stage gold projects in Canada and has world-class scale.  Mineralization occurs in three principal areas: Lynx, Main, and Underdog. Mineralization is generally comprised of sub-vertical lenses following intrusive porphyry contacts plunging to the northeast.  The resources are defined from surface to a depth of 1,600 metres, including the Triple 8 (TP8) zone.  The reserves are defined from surface to a depth of 1,100 metres. The deposit remains open along strike and at depth. Mineralization has been identified at surface in some areas and as deep as 2,625 metres in others with significant potential to extend mineralization down-plunge and at depth.

 

Qualified Person

 

The scientific and technical content in this news release has been reviewed and approved by Mr. Mathieu Savard, P.Geo (OGQ #510), President of Osisko, who is a “qualified person” (within the meaning of NI 43-101).

 

About Osisko Mining Inc.

Osisko is a mineral exploration company focused on the acquisition, exploration, and development of precious metal resource properties in Canada. Osisko holds a 50% interest in the high-grade Windfall gold deposit located between Val-d’Or and Chibougamau in Québec and holds a 50% interest in a large area of claims in the surrounding Urban Barry area and nearby Quévillon area (over 2,300 square kilometers).

 

Cautionary Note Regarding Forward-Looking Information

This news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release.  Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always, using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “potential”, “feasibility”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information.  This news release contains the forward-looking information pertaining to, among other things: the Windfall gold deposit being one of the highest-grade resource-stage gold projects in Canada and having world-class scale; the expected timing (if at all) to hook-up the power line; the expected allocation of power under the power allocation agreement being realized (if any); the expected power demand for Windfall; the assumptions limitations and qualifications in the FS Technical Report, including relating to the Windfall Resource Estimate and Windfall Reserve Estimate; reliance on third-parties for infrastructure, including power lines, with reference to the agreement with Miyuukaa for the transmission of hydroelectric power to the Windfall site; the results of the FS Technical Report, including NPV, IRR, production, tax-free cash flows, capex, AISC, milling operations, average recovery, job creation; the Lynx zone remaining open to expansion down plunge.  Such factors include, among others, risks relating to the ability of exploration activities (including drill results) to accurately predict mineralization; reliance on third-parties, including governmental entities, for mining activities, including for infrastructure; the timing and ability, if at all, to obtain permits; the reliance on third-parties for infrastructure critical to build and operate the Windfall project, including power lines; our ability to obtain power for the Windfall project, if at all or on terms economic to the Corporation; the status of third-party approvals or consents; errors in management’s geological modelling; the ability of Osisko to complete further exploration activities, including (infill) drilling; property and royalty interests in the Windfall gold deposit; the ability of the Corporation to obtain required approvals; the results of exploration activities; risks relating to mining activities; the Canadian/United States dollar exchange rate; the global economic climate; metal (including gold) prices; dilution; environmental risks; and community and non-governmental actions.  For additional information with respect to these and other factors and assumptions underlying the forward-looking information in this news release, please see the section entitled “Risk Factors” in the most recent annual information form of Osisko for the year ended December 31, 2022, a copy of which is available on SEDAR+ (www.sedarplus.com) under Osisko’s issuer profile.  Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, Osisko cannot assure shareholders and prospective purchasers of securities of the Corporation that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither Osisko nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. Osisko does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

CONTACT INFORMATION:

John Burzynski
Chief Executive Officer
Telephone (416) 363-8653

Click here to access the audio file of this transcript.

 

Operator

Good day, ladies and gentlemen, and welcome to the Gold Fields and Osisko Mining joint venture to develop the Windfall project. At this time all participants are in listen only mode, and a brief question and answer session will follow the presentation. If you should require any assistance during the conference, please press * and then 0 on your telephone keypad. As a reminder, this conference is being recorded. It’s now my pleasure to introduce your host, Martin Preece. Please go ahead, sir.

Martin Preece

Thank you, Chris. Good afternoon, ladies and gentlemen. Good morning to those on the other side of the world, and welcome to this call. I think a special welcome to John and his team from Osisko, who are joining us from Toronto. In terms of the rationale for the call today it’s just to update you all on the recently announced partnership we are going into with Osisko Mining related to the Windfall project in Quebec, Canada. I’m going to finish off these introductory remarks and ask John if he’s got any further remarks to add. And then I will go through some of the basics around the deal. And then John is going to take us through the project itself. And at the end, we will take some questions. The presentation is loaded on our website for those of you who’d like to watch it. John, if I could maybe hand over to you, I’m sure you have some introductory remarks.

John Burzynski 

Yes. Thank you, Martin, and welcome everybody to today’s call. I’ll keep my points brief. We’re very excited, very happy to make today’s announcement with Gold Fields. Windfall is an absolute world class deposit. I believe we’ve worked on this one for about seven and a half years, with some very stunning results in terms of the drilling, the grade, the scale of this deposit. It’s an exciting deposit and an exciting day for us. Really this kicks off the first day of marching towards mining, which we expect in about two and a half, three years’ time from now. Martin will walk you through the deal. And I will try and give you that same sense of excitement that we feel jointly both as Osisko and Gold Fields for how we see this deposit developing in the future. So back with you, Martin.

Martin Preece

Thanks, John. So, as John said, a very exciting day for all of us. We’re really pleased to be partnering with Osisko. They’ve put a lot of effort over many years into this. Our teams have been working on this jointly for the past year and a little bit. And I think what really excites us is working with Osisko. They’re an experienced partner with vast experience in that in that jurisdiction. It’s a world class asset with all in sustaining costs of just below $800 an ounce. We’ve got a 10 year reserve life on the project. I think really importantly for us is the upside we see and the analogue with our operations in Australia, where we see significant expansion and exploration potential.

And then John and his team, have got a really strong ESG track record, which dovetails with what we’re doing, the power line that they’re doing with local communities, and completely renewable power to come to the site. We are going to share in the project development exploration, each contributing skills to create a unique partnership. We’re really excited about going into a really strong jurisdiction with a great track record with Osisko with exploration permitting, construction and operating in Quebec. We know it’s a tough environment. I think the really important thing around the upside is the 50/50 joint venture over the Windfall project, but importantly, Urban Barry and Quévillon camps. That’s over 2,400 square kilometres of land package, which we believe it’s got significant upside potential.

In terms of the acquisition cost, we’re going to be buying in at $600 million Canadian, paid in two tranches, one tranche today, and the second tranche once permitting comes through. And we’ve also committed to $75 million Canadian Dollars for the exploration spend to unlock that long term upside potential. In terms of funding, we’re going to fund this through cash reserves and debt facilities. And we in no way see this affecting the payment of dividends and remain committed to paying 30% to 45% of our normalised earnings, as we had announced during the last year.

Growing the quality and value of our portfolio and strengthening our pipeline, this is really important for us, an asset coming in at under $800 all in sustaining cost with a nice long life. And I’ve touched on the ESG. In terms of commercial terms and operating structure, it’s an immediate formation of the 50/50 partnership, which will be jointly run by both parties in equal representation at both board and committee level. The partnership covers the feasibility stage Windfall Project, as well as the highly prospective Urban Barry and Quévillon camps.

In terms of the consideration, which I touched on, basically the two tranches of $300 million, the first of which is transferring to today, which is approximately $220 million US Dollars. In terms of development, we have a 50/50 share in the interim programmes and the construction costs going forward, which is Canadian Dollars $1.1 billion on 100% basis. And then as I’ve touched on the exploration part, we will for the first seven years fund an amount of $75 million Canadian Dollars to drive the exploration. I think the headline for us is that this is a measured entry into tier one jurisdiction on an exceptional asset, which John referenced in his introduction, and something that we really excited about.

I think just touching very briefly on our strategy, this transaction supports both pillar three and pillar two, around growing the value and quality of our portfolio of assets and then building on our leading commitment to ESG. So, fully aligned to our strategy and where we’re going as a business. I think just in summary, I think in terms of our strategic criteria for improving the value and quality of our portfolio, I think asset quality, the first one, at $800 all in sustaining cost and below, a life of mine of 10 years just on reserves, not including resources.

So, we’ve got asset quality, we’ve got jurisdictional quality, being in Quebec in Canada. The strengthening the pipeline, as we’ve touched on. The exploration assets and growth potential at camp scale. Long life. And the project is at the construction stage already. Osisko has invested a lot of money in getting the site to where it is. And then we touched lastly on the ESG practices. Osisko is ranked very highly and their MSCI rating was an A in 2021. So, for us it’s an accretive incremental portfolio improvement that follows the same principles as the AngloGold Ashanti JV in Ghana that we announced some weeks ago. John, if I could maybe hand it to you to talk more competently about the project.

John Burzynski 

Thank you, Martin. As I mentioned, Windfall is truly an exceptional deposit. As it stands right now with our 7.4 million ounce total all combined resource, it is the largest high grade underground deposit ever found in Quebec in the last 100 years of exploration. It’s located in a similar Archaean Greenstone belt to the well-known or at least better known Val D’Or camps and Timmins camps, both of which have produced over 100 million ounces in the last 100 years. There’s really no difference between the potential for the Windfall belt. It’s just been less explored, literally a fraction of the exploration of the last 100 years as those other belts.

On slide seven, you can see on the top left corner, there’s a comparison of Windfall to other Canadian gold discoveries. It ranks within the top 10% of Superior Province discoveries that were over 5 million ounces. So, it’s already a highly ranked deposit as it stands. We expect it will grow over time and continue to move to the top of that list. Where we stand today, if we were in production at the current reserve grade that we used in the feasibility of 11.4 grams per ton, it would be in the top 10 high grade producers globally. We have good reason to believe that that head grade as we go into mining may increase and increase substantially. That’ll be the big question as we get into the first 12 to 18 months of mining.

We’ve employed a very strict triple capping on this deposit because of the preponderance of coarse gold. We’ve taken three bulk samples today of about 15,000 tonnes total and recovered 15,000 ounces of gold. We’ve had recoveries and positive reconciliation with between plus 26% up to plus 89%. So, it is an exceptional deposit as it stands capped. We fully expect to commence at what we stated in our feasibility of 306,000 plus or minus ounces per year. We have good reason to believe that once we get mining, we may actually see additional grade come in. And just as a note, every 1 gram of additional grade that we do capture, and we have been capping out about 25% of the gold metal from our resource, every additional 1 gram of grade that we capture would add about another 35,000 ounces per year. So, there’s good reason to believe that as we move forward with additional work on the deposit, we see this thing to creep up and surpass things like 400,000 ounces a year plus.

Where this deposit sits, compared to other very well-known Canadian gold camps and gold mines like Red Lake, Macassa, LaRonde. We’ve drilled the deposit over the past seven years with 2 million metres of drilling. It’s very well drilled. Some of you on the call may not be familiar or as familiar with Osisko Mining. But our group, Bob Wares, Sean Rosen and myself started Osisko back in 2003. In the space of six years and a month, we defined the Canadian Malartic deposit, Canada’s current largest single gold producer, about 700,000 ounces a year, put that into production. A very big mine. So, we know this is a little different in terms of it’s a high grade mine. But where Windfall sits right now, with 2 million metres of drilling we have it defined from surface down to 1,200 metres.

We’ve done extensive drilling on the deposit with some deeper holes as well below that. We have good reasonably we can double that resource as we go forward. We literally have to pick a place to stop. The target over the last two or three years was to come up with something just over 4 million ounces, so that by the time we added mine dilution, we were starting with a 3 million ounce reserves that we could then project a 10 year mine life on. But the deposit certainly doesn’t stop at 1,500 metres. We’ve drilled the deepest hole in Canada. It’s about 3.4 kilometres long. We wanted to take a look at the roots of the system. And we have economic intercepts as deep as 2.8 kilometres vertical. So, there’s a lot of room for this deposit to grow. We could probably spend the next five years plus just expanding the deposit internally even above that 1,200 metre level. But certainly, as we go down plunge, we are seeing higher grades and wider widths of this deposit. So, it is very truly a very exceptional deposit. And I think it stands alone in its class globally today is as one of the very highest grade near term development assets.

On the next slide on slide eight, the feasibility highlights. Again, we chose a 10 year life of mine based on that 4.1 million ounce reserve that we diluted down to 3.2 million. But we didn’t include 3.5 million of the other ounces. They are still there. Our conversion success has been well over 90% in terms of bringing those ounces from inferred into measured and Indicated. And there’s at least another half the deposit in our minds as we go down plunge and laterally to add on as we move forward with the mining. We’re looking at first production in 2025. Permitting was commenced in March. It’s typically about an 18 month plus process. We have some hopes that it might be shorter. But once we come out of permitting, we’re looking at a few months to get the actual construction release from the Quebec government, and then about a 12 month construction cycle. So, that would put us into late 2024, early 2025 if everything works perfectly, which we all know happens every single time in the business, with exceptions.

The feasibility was predicted 306,000 ounces per year, based on a diluted grade of 8.1g from that initial 11.4g per ton grade in the reserve. We added some inferred material in there that we’re obliged to mine through as part of the development. We counted it as zero. We know it’s not zero. It’s actually about the same resource reserve grade, subject to more drilling before we can add it to the M&I categories. If we were to include that as drilled out material, we’re probably looking at something more like 326,000 ounces per year on that basis. And this is before we start thinking about adding additional grammes that we may see come into the mine as we move forward.

Construction costs in the feasibility were estimated at $789 million Canadian. We are seeing some cost reduction. We have seen some cost reduction in the past three to four months as we move through detailed engineering. We’re currently about 30% to 40% through the detailed engineering. We’re looking for like $720 million Canadian as capex costs. That includes about $50 million Canadian of contingency. The AISC at $758 US per ounce is certainly very good AISC. But again, adding those other ounces that we excluded and counted as zero, we do expect that number to come down. And certainly, if we see additional grade, we’re getting one for free and just dividing by a bigger number. So, we should see the AISC, if we are correct about that additional grade coming in, drop below $700.

As Martin mentioned, we are in partnership with the First Nations in a very big way. The Waswanipi Economic Development Corporation is currently building a hydro line to site from their substation in their town. This is about maybe a five kilometre long hydro line. They are currently about 20% complete. It’s spring break up there right now. So, there’s a couple of weeks from when big trucks are allowed to move around. We are expecting that hydro line to be complete by the end of this year or early in 2024, all on schedule.

The new mine will be creating over 1,000 direct and indirect jobs during construction, and about 670 direct jobs during operations. We currently employ about 30% as First Nations employees from the region. Our workforce is very diverse. We have very good balance from the board of directors through management, to our technical and operations staff at site of all genders, and certainly a big First Nations component and many, if not most of the employees are Quebec based.

Onto slide number nine, the ramp up and expansion potential. This is my favourite slide of all the slides that we typically put in our deck. When we started the Windfall back in 2015, it’s a longer story, but I’ll try and make shorter. The original Osisko Mining, which we were forced to sell back in 2014, Bob Wares developed a list of targets. This camp was on that list. We drove on target and then walked away because we didn’t see the size potential there. And then we spent the next 10 years with Canadian Malartic drilling it out, putting it into production, building it, building a team. We produced the first 1.2 million ounces of gold from that mine before we were forced to sell it in 2014 because of a hostile takeover attempt from Goldcorp.

So, we do have production experience in Quebec basically all the way from concept to acquisition to drilling to construction to operations. Windfall will be no different. That’s one of the attractions I think of this partnership for Gold Fields. We have a fully functional fighting team, not only on the exploration and discovery front, but also in the development and operations side. In terms of the discovery potential, the members of our team have an exceptional record in Quebec. We’ve discovered the last three world class deposits discovered in Quebec, and that is Canadian Malartic, Windfall and Éléonore with members of our team over the past 17 to 18 years. And hats off to members of the group.

Back to the slide, you can see on the left hand side of the cross section it shows the 1,000 metre level. Just a little bit below that, from 1,200 metres to surface is where we have our entire resource, the 7.4 million ounces in all categories. That includes the 4.1 million ounce reserve that we used in the feasibility. You can see the deep hole in the middle, which we call the Discovery 1. If this was a larger diagram, you would see it project down quite a lot deeper. But there’s wide open potential to expand the deposit following these areas down plunge. We know they’re there. We didn’t stop drilling because we didn’t believe in the potential. It’s just we had to physically stop at some point. Having the access underground – we’ve got approximately 12 to 13 kilometres of underground ramp from surface down to 630 metres vertical right now – has allowed us to put in underground drilling stations and drill it even more efficiently.

Our discovery cost at Windfall has been approximately $45 US per ounce, including all of those 2 million metres of drilling. These are world leading cost of discovery. And we expect that to continue for a long time at Windfall. It’s a growing deposit. Again, honestly my personal belief is that if we were to do nothing to drill for a while, this would easily go over 10 million or 15 plus million ounces in time. It’s not the immediate objective. The immediate objective is to complete the work, permitting, and build the mine and getting the production. But certainly, in terms of the overall exploration potential around Windfall and the belt, you don’t have to go far to find a lot of additional ounces by just looking where we are laterally within the deposit, staying above the 1,200 metre level. And then as we desire, move down plunge and replace these reserves as we mine them.

The next slide, with respect to our ESG credentials, and back to our prior experience as an operator. Again, I’ll say that we’ve produced the first 1.2 million ounces at Canadian Malartic. We were a mining company just about eight years ago. And before they called it ESG, it was called Sustainable Development. And before that, it was having a social licence. And before that, it was just playing with operating practices. We’ve always done this. We report to a standard of an operating mining company already, so it’s a very good fit with Gold Fields in terms of how we treat our ESG responsibilities. We are genuinely sincere about it. And this will be one of the newest and most ESG friendly and responsible mines to open in the country in the coming couple of years.

We mentioned the power line. It’s well in progress. This is the first time in Quebec that Hydro Quebec has not built a power line to a site. This is truly a ground-breaking agreement that we have with the First Nations of Waswanipi and the Economic Development Corp to build this line, and I truly believe that this is going to become a model for other companies operating in places like Quebec and across Canada in dealing with First Nations to share the benefits of mining in the northern areas.

At that point, we just want to touch briefly on the regional exploration. Outside of Windfall, backed with 2 million metres of drilling that we’ve done in the last seven, seven and a half years, almost all of that has been conducted within about a five square kilometre area. We have a property that is district scale. It’s 2,400 square kilometres of coverage. We control about 65% of the geology. Early on when we started back in 2015, we age-dated all of the intrusives in the belt related to gold mineralisation. They are all 2.69 to 2.72 billion years old, spread across the belt. So, it has told us the Windfall deposit is not a singularity. This was a true mineralising event, very much identical to the Val D’Or camp or the Timmins camp, where again, they have over 100 million ounces of production over the last 100 years. We expect the same thing fully through exploration that we will find additional Windfalls and Windfall type deposits as we move forward and get on to that big regional exploration programme that is part of today’s announcement.

Just one last slide to zoom in around the deposit. Again, we don’t have to go far from Windfall to have additional targets. We’ve had five or six surface showings and discoveries through minimal exploration drilling. The problem that we had over the last three to four years as we drilled out the deposit and put those 2 million metres in is underground deposits are very different from open pit mines. We have to drill a long way through sterile before you get your economic intercept that goes into your resource. So, we had to heavily focus on drilling up the resources of the deposit. We had up to 35 drills, one of the largest drill programmes that I’ve ever been associated with. We’ve calmed that down a lot. We only have 15 rigs right now. They have got seven on surface right now doing regional exploration.

But we can occupy ourselves very handily, again, just doing near deposit exploration on some of the highest potential areas. We do have surface showings on the property for the 45 kilometres to the east. They have been returning results of multiple ounces at surface that we’re hoping to get to and start drilling soon. But I think you can expect that there will be a future discovery success on this property as we get more rigs out and start doing exploration property wide. At that point, I’m going to hand it over to Chris. And I think we’re going to go to questions.

Operator

Thank you very much, sir. Ladies and gentlemen, at this time, if you do wish to ask a question, please press * and then 1 on your touchtone phone or on the keypad on your screen. You will get a confirmation tone that you have joined the queue. If you if you wish to withdraw your question, please press * and then 2 to remove yourself from the list. Again, if you wish to ask a question, please press * and then 1. Our first question is from Adrian Hammond of SBG Securities. Please go ahead.

Adrian Hammond

Good day, Martin and John, and thanks for the detailed presentation. I’d like to start with some questions firstly for Martin. Three for you. Firstly, could you just clarify who will be the operator of this new JV? And also, how do you see… typically JVs In the past haven’t been too successful. We’ve seen it time and time again. How do you expect to manage that with a new partner? And then secondly, you’ve also got another project coming online soon. You’ll be managing two now. So, just some colour on how management will stretch themselves and how you’ve tested the balance sheet for the funding of this project. And then thirdly, on the feasibility study, the numbers that you’ve given us yet today. What is the dates of these numbers? And did you use any considerations for capex, given the inflationary environment we’re in today? John did mention that the capex numbers could actually fall. And then I just want to clarify that number from John. Is that number that you quoted for first construction versus the total capex bill of $1.1 billion including the sustaining capex? I think that’s it from me. Thanks.

Martin Preece

Thanks, Adrian. I’ll have a go, and then I’m sure John will add to it. So, neither of us are going to be operator. It’s a true 50/50 JV operated in a very similar mechanism [break in audio] Canadian Malartic was operated. We will each allocate 50% of the board members. And this will be run as a separate company, where we will have three people from each organisation on the board. They will employ management, and the entity will be run separately. There will be three subcommittees and underneath that, that will support the board and the management in the executing of the duties. I think you’re very right about JVs are always typical. But I think it’s around having the right personalities, the right leadership. And we’ve run a very successful JV in Australia, where we are the operator. It’s about mutual respect, and about how we look at the interests of all parties, not just one party. So, I’m very comfortable with the arrangement. I think John and his team have run this model before. They’ve run it very successfully. And we’ve got a great deal of comfort with the model. Paul, do you want to just touch on the funding quickly?

Paul Schmidt

Adrian, I think you need to bear in mind that Salares Norte comes online next year, and we we’ve guided circa 500,000 ounces, all in cost of $650. So, you can imagine how much money Salares is going to make. So, as we said, initially, it will be provided from debt facilities, but then the funding will come from basically operational cash flows going forward.

Adrian Hammond

Thanks. That’s clear. Then John, I had a question for him, but perhaps I can just change that one. What I haven’t seen here today is how will Osisko fund their portion.

Martin Preece

John, do you want to answer that?

John Burzynski 

Yeah, certainly. Pro forma this deal and fully diluted will be somewhere north of $900 million of cash. We currently have $200 million in our bank account. Subsequent to the payment we have other instruments in the company and investments and things to take us well over $900 million Canadian. So, our half of the capex is fully funded. Plus, we have a very comfortable cushion.

Adrian Hammond

Thanks.

John Burzynski 

I think you had a question as well about the partnership with the capex. We do believe the capex will come down. When we put out the feasibility really it was peak inflation in terms of where numbers were going, but half of that was probably supply chain related in terms of what we were being quoted things. Ships were stacking up in ports. We saw the same thing happen in 2009 post the financial crisis. We were building Canadian Malartic at the time and tyres that were $20,000 each were shooting up to $80,000 or $90,000 per tyre. But that pressure came off. We don’t expect it to go back down to pre-inflation level, but we do see some cost reductions, certainly just in terms of pricing. But we’re also finding economies in terms of how we are designing the mine. And so, we do expect a significant reduction in terms of what the overall capex will be from the stated number in our feasibility.

The partnership question. We’ve been doing project evaluation with Gold Fields for some time now. The teams get along extremely well. Gold Fields has a very highly skilled technical team, and we have a very highly skilled technical team. You know, we’ve got great discoverers in our group and great engineers and a very keen group of members of our staff who are very exceptional in what they do. They are cutting edge. And I think these two teams are going to get together very well. And there will be good efficiencies, but also some very good trading of ideas that are going to make what I believe is already a spectacular deposit be an even more spectacular mine.

Adrian Hammond

That’s clear.

Paul Schmidt

The document was published in December last year, 28^th of November last year.

Adrian Hammond

Thank you very much, guys. That’s clear.

Operator

Thank you. The next question is from Josh Wolfson of RBC. Please go ahead.

Josh Wolfson

Yeah, thanks very much. I guess a question first for Gold Fields. Could you comment on whether there is a standstill associated with this or any ROFRs for the 50% stake that’s not owned? And then also, why hasn’t the company looked at acquiring the 100% stake? Was that an option? Given the company’s financial resources and I guess the appeal of the asset, that seemed to be the reasonable…

John Burzynski 

Sure. Yeah, I can answer that one for you, Josh. We weren’t looking to sell the deposit 100%. We have very publicly been looking at joint venture partnerships for over a year now. And so that’s my simple answer.

Josh Wolfson

Okay, and then the standstill or ROFR associated with the other 50% then, are there any details that can be disclosed there?

Martin Preece

I think we have got agreements, and in the fullness of time, we’ll be quite happy to release that. But there is an element of a standstill.

Josh Wolfson

Okay.

Martin Preece

And I think we intend to respect that, Josh.

Josh Wolfson

Okay. And then just another question for the Gold Fields team. The size of this transaction looks to offset some of the declines, at least that we forecast for Salares. The team it sounds like has been reasonably active on M&A. What is the Gold Fields perspective on further pursuit of M&A after this deal has been announced?

Martin Preece

I think, Josh, we’re going to take some breathing space now. I think we’ve got enough to keep ourselves busy now. As Adrian said, we’ve got the deal in Ghana. We’re commissioning Salares at the moment. So, I think we’ve got more than enough to keep us busy for a while now and we want to make this work.

Josh Wolfson

Okay. Thank you very much.

Operator

Thank you. The next question is from Ovais Habib of Scotiabank. Please go ahead.

Ovais Habib

Hi, John and Martin. Congratulations. Just a couple of questions from me, and primarily for John. Now that you’ve got a JV partner to build Windfall, does this provide you and your team the chance to look at other projects to build on Osisko’s project portfolio? Or are you going to focus on Windfall? Is that the focus for the near term?

John Burzynski 

Yeah, we’re absolutely going to focus on Windfall near-term, Ovais. That’s a good question. But our 100% focus is still on the deposit itself. As I mentioned earlier, we could spend a long time just continuing exploring internally and laterally from where we have to find mineralisation. I’m certain we’re not going to run out of targets for a long time. The down plunge potential of this deposit is exceptional as we’ve shown from deeper drilling. The near deposit potential is very high. Every time we tried to put drills out there over the last three or four years, we had to pull them back because of shortage of drillers, and then do a lot of infill holes to get that resource that everybody was baying for. So no, we’re certainly not going to go out and look for other things in other parts of either Quebec or the country. We’ve got our hands full here for the foreseeable future and certainly for the balance of my career, just finding the deposits around Windfall.

Martin Preece

I think, John, and we have 100 years. I think there’s enough to keep us all busy there. I think it’s going to go past my and John’s retirement.

John Burzynski 

Yeah. Again, the nature of the main deposit itself is exceptional. But we are certain that there are more to be found.

Ovais Habib

And I guess that’s the reason why you wanted to keep that 50% on the JV side and not give it away 100%?

 

John Burzynski 

Absolutely. Absolutely. I mean, if you can go back to what happened with Canadian Malartic, that would have been the only thing that Sean, Bob and I ever did if we did manage to keep it. When we sold the company, it had 13 million ounces. We put the discovery holes into Odyssey, which is really just part of the old East Malartic system. But we didn’t have enough time during the hostile takeover to drill it out. We were eventually going to get to it. And if anybody doubts, the guys who drill a million metres a year almost, we think we certainly would have defined it. So, there’s enough meat on the bone here to find a lot of things in the future. And really, this is going to keep us fully occupied as we go forward. And certainly, the value for Osisko shareholders, even though we are taking a partner for 50% of this deposit, the market hasn’t been paying us for 50% of the deposit. They haven’t been paying us for a fraction of this deposit. We honestly believe that this is much larger just as a standalone Windfall. But certainly, everything else has been discounted. And certainly, with a partner like Gold Fields, we’re going to knock over some tables and throw a few chairs around and find some more deposits in the near term. I’m quite certain.

Ovais Habib

Perfect, thanks for that colour. And the second question, can you just provide us what we should expect over the next 12 months, just in terms of any sort of updates, as well as can you just touch a little bit on the permitting side as well, John?

John Burzynski 

Yeah, sure. Completion of power line, completion of IBA coming out the other side of permitting, next year. Construction release from the Quebec government and then starting construction. Really, the project is de-risked to that point. And I remember from the mine build we did at Canadian Malartic, this is all just time driven. We do have an exploration programme and progress that we started back in January. We will accelerate that now with emphasis with our new partner, Gold Fields. So, we stand by any given week, where depending on how the drill is doing, we may turn up some other interesting things. But really, it’s the marked progress of the deposit moving forward and coming to that production date. The project’s gone very smoothly over the last seven years. It has been a lot of drilling, but it’s a very big deposit. And certainly, I think we will be newsy as a as a joint venture going forward. Certainly, we expect to hit those milestones relatively within the schedule that we presented previously as a standalone company. We don’t see any obstacles in front of us. Perfect.

Ovais Habib

Sounds good, guys. And that’s it from me, and thanks for taking my questions.

John Burzynski 

Thank you, Ovais.

Operator

Thank you. The next question is from Kerry Smith of Haywood Securities. Please go ahead.

Kerry Smith

Thanks, operator. Martin, just on the feasibility study, was Gold Fields comfortable with the capital operating cost estimates that were developed by the feasibility? Or how did you view that study?

 

Martin Preece

So, we’ve obviously, as I said earlier, been talking to Osisko for over a year now. Our team, obviously as part of the due diligence has looked through that. I think John referenced a short while ago, that our technical team from our technical office in Australia has been actually doing some detailed work on some parts of the feasibility with John, more specifically around the process plant where a lot of the capital sits. And I think John can talk for himself, but I’m sure we’ve added value to each other there. So, we’ve looked at the capital. I think we believe the capital is reasonable. I like John’s comment that it obviously was when inflation was running wild, and he sees some upside potential in that capital. So, I think we’ve spent 12 months doing due diligence, and we’re comfortable. We recognise now, while we go through the permitting, we’re going to do more work with John and his team. I think you want to get that engineering up from that 30% to 40%, to closer to 85% to 90%. That’s going to give us all a lot more confidence. But I think we’re going to complement each other and come out with a great technical solution, but I think more importantly, a great techno economic solution. John, you might want to add to what I’ve said.

John Burzynski 

Yeah, sure. Maybe I’ll let Don Njegovan, our Chief Operating Officer, say a few words about what we’re seeing in capital reduction, and some opportunities we have in terms of maximising the efforts of the two teams now being together.

Don Njegovan

Yeah. Thanks, John. I mean, really what we see at Windfall is we have a lot of infrastructure in place already. So, how do we use what we’ve got? As John mentioned on the call, we have 12.5 kilometres of underground development already finished. How can we work within the ore body off that infrastructure, so we can use what we’ve got? And also, if we have to expand the ramp, then we can expand the throughput, multiple faces, open up different zones within the ore body itself, that’ll give us a lot of flexibility. That also gives us lots of optionality to reduce cost throughput. There won’t be any bottlenecks on the ramp at all, because all the infrastructure will be in place before we start production.

With respect to the mill, the footprints is going to be fairly small and compact. Everything will be under one roof, the warehousing and everything. So, you won’t be driving all over the place to find things. It will be right at your fingertips. So, we’re really trying to set ourselves up for success here. We visited a lot of different operations over the last few years. How do we do things right? Taking the good from what everybody has to offer, so we can avoid the bad. Those are really the things that we’re focusing on to make Windfall a world class operation.

Kerry Smith

Okay, thanks. Thank you, Don. And, John, can you talk a little bit about the process that you went through to get to this JV? Were there other parties interested? Can you talk at all about that?

John Burzynski 

Hi Kerry. The markets obviously, where we were examining a JV proposal about a year ago. So, it shouldn’t have come as much of a surprise as I think it did to the market that today we’re here with Gold Fields talking about our joint venture partnership. You know, certainly Windfall as a deposit is a very attractive one. I think you can assume that there’s been a lot of interest from many parties about different aspects of what we might do together, not just even recently, but over the years. But certainly, once we started talking with Gold Fields, there was very quick synergy in terms of how we looked at the deposit. And I think that they certainly recognise within Windfall many things that we’ve seen in some of their active mines.

And it’s one thing that we strangely had a bit of trouble with convincing the market about in terms of the robustness of this deposit. It’s been a long time since people in Canada had seen a truly high grade mine developed that was brand new. And I think some people have forgotten some of the metrics on these things, and how profitable they can be, and what the grade means in terms of cash flow. So, ideally, as part of today’s transaction, having the validation and support of Gold Fields in terms of recognising what we’ve done and believing in that model is I think very strong point that that was made for them becoming eventually our joint venture partner, Kerry. Maybe we had some choice in the matter. But we sit here today with our partner, Gold Fields, and we’re looking forward to going forward to develop Windfall.

Kerry Smith

Right. And maybe just one last question for both groups. Is it the intention or do you think that those 3,400 tonnes a day is the right size for the plant on a long term basis? Or do you think that as a JV now, it’s likely that this mill could be larger over the course of time? I know you’re planning to push through with the current permit application and not upset the permitting process, obviously. But I’m just thinking about the longer term.

John Burzynski 

Yeah, certainly, in terms of the permitting process – and this is where a lot of people get confused about permitting time. I’ve heard lots of wild estimates about things taking years and years – there have been projects that have suffered from unusually long permitting processes. But that’s because they introduced design changes after submitting their proposal. Every time you make a major design change in how you intend to process, you basically reset the clock to zero. So no, I don’t believe we’re planning any process design changes in the feasibility. We were talking about 3,400 tonnes a day. Certainly, in the future as the deposit starts to show its quality and as the deposit starts to open up, it may be considered by the joint venture partnership. But it will be a joint venture partnership decision.

Martin Preece

I think I fully concur with John. We need to get this up and running, prove its potential and let it tell its story. And I think it’s got a good story to tell.

Kerry Smith

Right. And, John, just remind me, I know a 5,000 ton a day is the threshold for a small mine in Quebec. Is it much easier to permit from 3,400 up to 5,000 tonnes a day once you’re up and running, or does it even require a permit amendment? I’m just curious. Just remind me how that works.

John Burzynski 

Yes, you need permits. But below 5,000 tonnes – and this was recently amended – you’re not subject to the federal EA process if it is below 5,000 tonnes per day.

Kerry Smith

Okay, got you. So, okay, I understand. Okay, great. Thank you.

Operator

Thank you very much. The next question is from Don DeMarco of National Bank Financial. Please go ahead.

Don DeMarco

Thank you, operator, and congratulations, Martin and John. A first question for Martin. So, Martin, you mentioned that this is a measured entry into a tier one jurisdiction. So, does this imply potential for outright acquisition at Windfall at some point? And if so, what would be needed to get there?

Martin Preece

No, I think when we say measured, maybe referencing last year the Yamana transaction. Certainly, we are not looking at outright acquisition. We very much see this as a marriage. And we want to forge ahead with this partnership and build a strong partnership. Both parties have got very unique skills and capabilities. And I think collectively, we’ll be able to do something very special, and that one on one is going to equal a lot more than two.

Don DeMarco

Okay, and that actually segues into my next question, because Martin, your team lands for some of the technical de-risking during mine construction. So, you’re going to be deploying your team up there. Can you tell us what this looks like? How many people on site in Quebec? Where will they be coming from and so on?

Martin Preece

So, we won’t be deploying teams here. As I touched on earlier, and Don is much better position than I am, the joint venture will appoint a management company. It won’t be run by either the partners. It will be a separate company that runs it. What we will do at arm’s length basis is as the JV needs technical support, it will be through agreements that we might have a better metallurgist or a better geologist – I doubt it – than Osisko, and that we might need those services. And those will be called in on an arm’s length basis. So, we won’t be deploying teams.

Don DeMarco

I see. [Overtalking]

John Burzynski 

Going back to what I was saying earlier, we have a full fighting team. And we’ve been developing one over the past couple of years. And again, oftentimes, people forget that we do have operating experience and many of the members of Osisko Mining have worked in lots of mines with a deep network, both internally within the company and the group. But we’ve been building a team for the past couple of years. And certainly, I think this is one of the attractions for Gold Fields. There’s no start-up period, where you have to kind of think about what’s going to happen for the next six months. We’re continuing operations today and tomorrow as we were yesterday, with the same people, as we evolve closer towards a production decision, and having permits and getting a construction release. Yeah, there may be some additions to staff and maybe some changes. But that’s normal for any company. That would have been our course of action as a standalone company to go and build Windfall. So, we’re proceeding at all possible speed as we were yesterday.

Don DeMarco

Okay, so just to be clear then, will the development be performed by the Osisko team that’s in place right now? Or will it be a third party, other company that comes in, just supervised by Osisko and at an arm’s length by Gold Fields?

Martin Preece

I’ll start, John. The employees that were working on the mine this morning work for Osisko. And my understanding is they now work for a new company. That is the management company. That’s what’s happened. Maybe, John, do you want to elaborate on that?

John Burzynski 

Don, I’ll simplify it for you. New hats. That’s it.

Don DeMarco

Okay. And then when it comes to operating, again, it’s the JV operating. The JV management company develop the mine and operate the mine.

John Burzynski 

Look, it will look very similar to the Malartic partnership deal where you had… with the exception of you have true equal partnership and management. We look forward to any advice and input and guidance that Gold Fields can give us. I mean, they are a senior producing, global, long standing gold producer. We have an excellent team, but we’re not naive enough to think that we know everything. And certainly, there may have been some things that we’ve developed in terms of concepts and how to approach deposit mining because we’ve done extensive work on it. But this is exactly what makes a good joint venture partnership work is that we share these ideas and pick the best ones. We economise on costs and maximise on production profits, which is the whole rationale and reasoning behind having a partnership.

Don DeMarco

Excellent. Okay. Well, congratulations again. And good luck on the next steps. That’s all for me. Thanks.

Operator

Thank you. The next question is from Jason Fairclough of Bank of America. Please go ahead.

Jason Fairclough

Thanks for the call, guys. Super interesting deal. I had just a couple of simple questions. I wanted to make sure that the JV really just takes into account Windfall. So, it doesn’t include any of the other Osisko properties. So, if you were to try to roll those in, would there be additional payments to be made? And then the second question is just…

 

John Burzynski 

The full exploration package is part of the deal.

Jason Fairclough

Yeah, so it includes Golden Bear, it includes Urban Barry, it includes Quévillon?

Martin Preece

That’s right.

John Burzynski 

We have approximately 2,400 square kilometres of claims, in which the Windfall deposit is situated. They’re all part of today’s transaction.

Jason Fairclough

Okay, so basically everything. The other the other question was, could you just remind us of what are the royalties that have been written on these properties please?

John Burzynski 

Yeah, there were historical royalties from previous operators that date back into the 1990s or 1980s even. On the foundation deal of the company in 2015, Osisko Mining Inc was formed from bits and pieces of the resultant Osisko gold royalties, what we were left over with after the hostile takeover, starting as a new royalty company. And crazily, we were insane enough to try and merge seven companies together as a starting transaction. We ended up getting four of them in the transaction, mostly for the cash balances. The Urban Barry Windfall project came from what was previously Eagle Hill. Ned Goodman and other major shareholders ran most of it.

So, as a part of that formation deal, we granted Osisko Gold Royalties for funding $20 million into the new company the right to buy a 1% royalty for $5 million, which they eventually exercised in the subsequent year. They also had the rights to buy backs existing royalties that existed on the claims prior to our getting involved. So, we’ve never actually sold a royalty outside of the formational deal royalty before we stepped foot on Windfall. And there’s no intention to issue any others. So, their 2% to 3% NSR royalty is a result of basically just amalgamating what were historical buybacks from prior previous operators, and the 1% that we granted in 2015. It’s probably the best royalty deal they’ve ever done. If my understanding is correct, they’re currently sitting somewhere at about $50 million to $75 million profit for having taken the 2% to 3% royalties.

Jason Fairclough

Okay. All right. Appreciate the colour. Thanks.

Operator

Thank you very much. Ladies and gentlemen, just a final reminder, if you wish to ask a question, please press * then 1. And we’ll pause a moment to see if we have any further questions. You have a question from Arnold van Graan of Nedbank CIB. Please go ahead.

Arnold van Graan

Yes. Good afternoon. Thank you very much, Martin. Just a quick one from my side. And it’s been asked. I just want to clarify. So, you are sticking to your dividend policy, which implies you could obviously use your balance sheet to fund the acquisition and the construction and the capex around this. So, can you just give us a sense of how this will impact your gearing levels over the next two to three years? Thank you.

Martin Preece

Paul will give you an answer.

Paul Schmidt

Arnold, I said on the first question that Adrian asked, remember, next year is a very big year for us. So obviously we take the $300 million Canadian Dollar knock, but I mean, obviously, this year gold prices have been a lot higher than what we anticipated. And next year with Salares coming online, you won’t have a material movement on gearing, because remember next year as well, not only are we getting the cash from Salares. We’re getting substantial EBITDA. So, in terms of net debt to EBITDA, we’re not going to move much. Probably not above 0.5x. And we I think we were at 0.39x at the end of last year. So, that’s the way we see it.

Arnold van Graan

Perfect, thank you very much. Cheers.

Operator

Thank you. Ladies and gentlemen, we have no further questions in the queue, and I’d like to hand back to the management team for some closing comments.

Martin Preece

So, John, if I can start, I think firstly and most importantly, John touched about the value that partners bring. And one of the things we are looking forward to with working with Osisko is I think the word that comes to my mind is agility. You know, they’ve demonstrated agility, and certainly we are looking forward to that. But I think they’ve demonstrated great exploration, construction, permitting and operating capability in a tier one jurisdiction. So, we’re really excited to be there. I want to thank John and the Osisko team for agreeing to marry us. It’s a very important day for us in Gold Fields. We’re very excited about it. And we were looking for a long and happy marriage with many children in new mines as we explore the full extent of this deposit.

I think lastly from my side is I would just like to thank the many women and men from both teams, from John’s team, from our team that have worked tirelessly for the last year, and I would argue most probably in the last week they’ve done a year’s work trying to get the agreements finalised, all the terms finalised. And I’m sure they’re all looking forward to going home and trying to get a night or two’s good sleep. From my side, and I’m sure I can talk on behalf of John, is just to thank the many, many people that have worked tirelessly to make sure that our partnership is consummated properly, and in a way that it will be sustained. So, thank you very much. Thank you, John. And over to you.

John Burzynski 

Yeah, I’ll second what you say, Martin. Tremendous work done by your team and our team to get the work done and close up the deal. We’re looking forward as a corporation, as a group, as explorers and mine builders to moving Windfall to the next step. Really, I see today as the first day towards a new mine at Windfall. And hopefully this will be one of many to come in the future, as Martin rightly referred to. We’re excited about the partnership. There is certainly some work ahead of us, but we’re very optimistic that the work we’ve done at Windfall to date has put this deposit in a position to overperform. And I think we are certainly going to see that come through as we get through the work and get this mine built and get on with exploration to find additional new deposits. Thank you.

Martin Preece

Thank you, Chris. Thanks, John.

Operator

Thank you very much, sir. Ladies and gentlemen, that then concludes today’s event, and you may now disconnect your lines.

New Results Include 286 g/t Au Over 2.1 Metres and 204 g/t Au Over 2.0 Metres

(Toronto, April 5, 2023) Osisko Mining Inc. (OSK:TSX. “Osisko” or the “Corporation”) is pleased to provide new analytical results from the ongoing drill program at its 100% owned Windfall gold project located in the Abitibi greenstone belt, Urban Township, Eeyou Istchee James Bay, Québec.

The targeted feasibility study surface drilling campaign was completed at the end of September 2022. In the past 6 months, over 55,000 metres additional have been drilled by 9 underground rigs focused on expansion and infill work in the Lynx segment of the deposit.

Significant new analytical results are presented below and include 81 intercepts from 45 drill holes and 3 wedges. The infill intercepts are all located inside the defined mineral resource estimate (“MRE”) blocks as described in Osisko’s feasibility study on Windfall (see FS Technical Report (as defined herein), a copy of which is available on SEDAR under Osisko’s issuer profile), and have targeted upgrading inferred mineral resources to measured or inferred mineral resources, as applicable. The expansion intercepts are all located outside the MRE blocks, and either expand resource wireframes or are located in a defined zone or corridor not yet correlated to a specific wireframe.

Select expansion intercepts extending wireframes include: 12.4 g/t Au over 6.6 metres in WST-22-1296, a 100-metre down plunge extension of Lynx Main wireframe 3388 and 20.5 g/t Au over 2.1 metres in WST-22-1294, a 60-metre down plunge extension of the same wireframe; 286 g/t Au over 2.1 metres in WST-22-1218, a 30-metre extension below Triple Lynx wireframe 3188; 120 g/t Au over 2.1 metres in WST-22-1218, a 40-metre extension above Triple Lynx wireframe 3162; 29.6 g/t Au over 8.4 metres from hole WST-22-1182A-W1, a 20-metre extension below Triple Lynx wireframe 3172; 69.7 g/t Au over 2.1 metres, a 60-meter extension east of Triple Lynx wireframe 3121.

Osisko Chief Executive Officer John Burzynski commented: “While Windfall has commenced the permitting process with the recent submission of our Environmental Impact Assessment (see Osisko news release dated March 29, 2023 and entitled “Osisko submits Windfall environmental impact assessment”), we have continued our work to improve our understanding of the continuity and extent of the MRE with drills on infill and expansion holes in the deposit. Today’s expansion results add good potential to increase the scale of defined areas of mineralization, and have also served well to identify additional areas to target new extensions of Windfall. The infill holes’ grade and lengths remain consistent with respect to the currently defined resources and continue to confirm our high-grade models.”

Select infill high-grade intercepts include: 204 g/t Au over 2.0 metres in WST-22-1249A, 101 g/t Au over 3.8 metres in WST-22-1286; 42.9 g/t Au over 7.9 metres in WST-22-1232; 106 g/t Au over 2.1 metres in WST-22-1116; 99.3 g/t Au over 2.0 metres in WST-22-1182A and 34.0 g/t Au over 5.0 metres in WST-22-1107. Maps showing hole locations and full analytical results are available at www.osiskomining.com.

Maps: Long-Section_Expan-20230405_EN, Long-Sections_lens3388-20230405_EN, PR_EN_20230405_Surface, PR_EN_20230405_UG, Long-Section-_Infill-20230405_EN

 

Expansion Drilling

Hole No.	From (m)	To (m)	Interval (m)	Au (g/t) uncut	Au (g/t)         cut to 100 g/t	Zone	Corridor
OSK-W-22-2420-W1	1314.0	1316.0	2.0	4.59		LX4_3466	Lynx 4
	1324.5	1326.6	2.1	39.8	25.6	LX4_3466	Lynx 4
including	1325.0	1325.5	0.5	160	100
OSK-W-22-2605-W7	1208.5	1211.0	2.5	6.90		LX4_3453	Lynx 4
OSK-W-22-2653	484.0	486.0	2.0	38.7		LSW	Lynx SW
including	484.0	485.0	1.0	77.0
	526.4	535.3	8.9	7.74		LSW	Lynx SW
including	526.4	527.0	0.6	81.1
OSK-W-22-2654	106.7	108.9	2.2	4.53		BCT	Bobcat
including	106.7	107.0	0.3	20.5
	142.8	145.3	2.5	60.2	32.6	BCT_2360	Bobcat
including	144.5	145.3	0.8	187	100
OSK-W-22-2655	252.8	255.0	2.2	28.0	15.0	BCT	Bobcat
including	254.3	254.6	0.3	196	100
OSK-W-22-2657	638.1	640.1	2.0	3.70		LSW_3508	Lynx SW
OSK-W-22-2663	104.0	106.0	2.0	12.7		BCT	Bobcat
including	104.0	105.0	1.0	24.7
WST-22-1072B	593.4	597.5	4.1	6.13		TLX	Triple Lynx
	601.0	603.4	2.4	21.2		TLX	Triple Lynx
including	602.0	602.8	0.8	61.5
WST-22-1073	224.3	226.5	2.2	8.93		LHW_3216	Lynx HW
including	224.8	225.2	0.4	47.7
WST-22-1074	223.1	225.1	2.0	4.97		LHW_3216	Lynx HW
including	223.5	224.1	0.6	16.3
WST-22-1082	256.3	261.4	5.1	4.39		TLX_3167	Triple Lynx
including	260.8	261.4	0.6	18.9
	293.0	297.2	4.2	6.37		TLX	Triple Lynx
including	293.0	293.6	0.6	20.4
	384.0	386.4	2.4	4.42		LX4_3450	Lynx 4
including	385.1	385.6	0.5	20.2
WST-22-1092	318.0	320.3	2.3	4.63		LX4	Lynx 4
including	320.0	320.3	0.3	28.8
WST-22-1093A	562.5	567.2	4.7	6.29		TLX_3172	Triple Lynx
including	562.5	563.0	0.5	30.4
WST-22-1107	609.5	614.7	5.2	71.1	53.9	TLX	Triple Lynx
including	609.5	610.1	0.6	195	100
WST-22-1116	263.8	268.0	4.2	12.4		TLX	Triple Lynx
including	263.8	265.0	1.2	37.7
	272.6	276.8	4.2	5.55		TLX_3180	Triple Lynx
including	272.6	272.9	0.3	35.2
WST-22-1127	192.3	199.1	6.8	6.19		TLX_3168	Triple Lynx
including	198.0	199.1	1.1	15.4
WST-22-1128A	151.5	153.8	2.3	48.3	34.3	LXM_3339	Lynx
including	152.7	153.4	0.7	146	100
WST-22-1146	211.6	214.0	2.4	10.0		LHW_3216	Lynx HW
including	212.6	213.0	0.4	59.7
WST-22-1156	145.1	147.8	2.7	31.9		LXM_3339	Lynx
including	145.7	146.5	0.8	72.8
WST-22-1182A	480.1	482.1	2.0	23.5		TLX	Triple Lynx
	597.2	600.0	2.8	3.58		TLX	Triple Lynx
including	597.2	597.6	0.4	16.7
	672.4	674.8	2.4	4.30		TLX	Triple Lynx
WST-22-1182A-W1	490.7	493.0	2.3	7.50		TLX	Triple Lynx
including	491.8	492.5	0.7	23.4
	553.8	562.2	8.4	29.6	29.2	TLX_3172	Triple Lynx
including	557.4	558.1	0.7	105	100
WST-22-1218	234.0	236.1	2.1	286	19.1	TLX_3188	Triple Lynx
including	235.8	236.1	0.3	1970	100
	248.0	250.1	2.1	120	14.7	TLX_3162	Triple Lynx
including	249.5	249.8	0.3	835	100
WST-22-1220	195.8	200.0	4.2	12.3		TLX	Triple Lynx
WST-22-1221	281.0	283.0	2.0	12.9		TLX_3158	Triple Lynx
including	281.8	282.4	0.6	34.0
	306.9	308.9	2.0	3.58		TLX	Triple Lynx
WST-22-1232	334.1	337.5	3.4	8.01		TLX	Triple Lynx
including	334.1	334.6	0.5	37.3
	419.4	422.3	2.9	13.1		TLX_3162	Triple Lynx
including	419.9	420.2	0.3	91.9
	427.1	429.3	2.2	3.76		TLX_3140	Triple Lynx
including	427.9	428.3	0.4	10.2
WST-22-1255	200.6	202.7	2.1	3.75		TLX_3131	Triple Lynx
WST-22-1270A	305.8	308.0	2.2	12.3		TLX	Triple Lynx
including	305.8	306.1	0.3	72.6
WST-22-1273	354.0	358.6	4.6	10.6		TLX_3158	Triple Lynx
including	357.6	358.6	1.0	43.3
	487.8	490.2	2.4	16.0		TLX	Triple Lynx
	511.0	513.4	2.4	16.5		TLX_3172	Triple Lynx
including	512.3	512.7	0.4	88.2
	522.3	524.4	2.1	5.45		TLX_3172	Triple Lynx
including	523.5	523.9	0.4	13.2
WST-22-1286	147.6	149.6	2.0	7.55		TLX_3121	Triple Lynx
	163.5	166.9	3.4	34.8		TLX_3121	Triple Lynx
including	165.6	166.0	0.4	75.5
WST-22-1287	128.3	130.5	2.2	7.92		LXM	Lynx
including	128.8	129.5	0.7	24.8
	131.2	133.2	2.0	171	56.1	LXM	Lynx
including	132.6	133.2	0.6	483	100
WST-22-1294	59.0	61.1	2.1	20.5		LXM_3388	Lynx
including	60.1	60.7	0.6	65.9
WST-22-1296	65.0	71.6	6.6	12.4		LXM_3388	Lynx
including	67.5	67.9	0.4	99.9
WST-23-1373	161.5	163.5	2.0	28.0		TLX	Triple Lynx
including	162.8	163.5	0.7	67.1
	184.5	186.6	2.1	69.7	47.2	TLX_3121	Triple Lynx
including	185.4	186.2	0.8	159	100

Notes: True widths are estimated at 55 – 80% of the reported core length interval. See “Quality Control and Reporting Protocols” below., BCT = Bob Cat, LHW = Lynx Hangingwall, LSW = Lynx South West, LXM = Lynx Main, LX4 = Lynx 4 and TLX = Triple Lynx.

Infill Drilling

Hole No.	From (m)	To (m)	Interval (m)	Au (g/t) uncut	Au (g/t)         cut to 100 g/t	Zone	Corridor
OSK-W-22-2670	181.8	183.8	2.0	12.2		F11_6001	F-11
including	181.8	182.3	0.5	28.5
WST-22-1107	513.1	518.1	5.0	34.0	28.2	TLX_3172	Triple Lynx
including	515.5	516.2	0.7	115	100
and	517.7	518.1	0.4	147	100
WST-22-1116	402.3	404.4	2.1	106	37.2	TLX_3162	Triple Lynx
including	402.3	402.9	0.6	339	100
	447.3	452.4	5.1	5.04		TLX_3172	Triple Lynx
WST-22-1123	172.8	175.2	2.4	28.9		TLX_3153	Triple Lynx
including	174.1	174.5	0.4	94.5
WST-22-1125	287.2	289.6	2.4	10.5		TLX_3166	Triple Lynx
WST-22-1163A	194.8	196.9	2.1	7.27		TLX_3131	Triple Lynx
including	194.8	195.2	0.4	30.4
	349.0	351.0	2.0	8.32		TLX_3191	Triple Lynx
including	350.3	350.7	0.4	40.9
WST-22-1178	141.2	145.2	4.0	17.3	15.2	LXM_3392	Lynx
including	141.9	142.3	0.4	121	100
WST-22-1182A	526.8	528.8	2.0	99.3	54.9	TLX_3172	Triple Lynx
including	527.6	528.4	0.8	211	100
WST-22-1183	269.0	275.6	6.6	3.94		TLX_3166	Triple Lynx
including	275.3	275.6	0.3	14.2
	386.0	388.0	2.0	4.84		LX4_3450	Lynx 4
including	386.8	387.1	0.3	15.0
	401.2	404.6	3.4	4.39		LX4_3450	Lynx 4
including	401.2	401.6	0.4	9.61
WST-22-1191	272.0	274.0	2.0	15.4		TLX_3166	Triple Lynx
including	272.4	272.8	0.4	67.2
WST-22-1193A	155.0	157.0	2.0	41.1	35.3	TLX_3169	Triple Lynx
including	155.3	155.9	0.6	120	100
WST-22-1203	396.4	398.6	2.2	3.99		LX4_3450	Lynx 4
including	397.2	397.8	0.6	14.4
WST-22-1232	290.7	298.6	7.9	42.9	30.8	TLX_3158	Triple Lynx
including	296.5	298	1.5	150	100
	388.0	392.0	4.0	12.7		TLX_3119	Triple Lynx
WST-22-1249A	292.0	294.0	2.0	7.95		TLX_3166	Triple Lynx
including	292.7	293.2	0.5	31.4
	296.1	298.1	2.0	204	22.3	TLX_3166	Triple Lynx
including	296.6	297.0	0.4	1010	100
WST-22-1253	216.5	218.5	2.0	12.0		TLX_3188	Triple Lynx
including	217.1	217.5	0.4	57.7
WST-22-1254	216.4	218.6	2.2	20.6		TLX_3188	Triple Lynx
WST-22-1255	216.0	218.6	2.6	6.08		TLX_3188	Triple Lynx
WST-22-1256	479.0	483.4	4.4	21.6	15.0	TLX_3172	Triple Lynx
including	482.4	482.7	0.3	197	100
WST-22-1286	101.7	105.5	3.8	101	37.9	TLX_3161	Triple Lynx
including	102.5	103.0	0.5	577	100
WST-22-1288	214.0	216.0	2.0	77.8	41.3	TLX_3188	Triple Lynx
including	214.9	215.4	0.5	241	100
	222.5	224.6	2.1	10.6		TLX_3188	Triple Lynx
including	223.4	223.8	0.4	21.5
WST-22-1293	205.0	207.0	2.0	19.8		TLX_3131	Triple Lynx
including	205.0	205.6	0.6	65.5

Notes: True widths are estimated at 55 – 80% of the reported core length interval. See “Quality Control and Reporting Protocols” below., F11 = F-11 Zone, LXM = Lynx Main, LX4 = Lynx 4 and TLX = Triple Lynx.

 

Drill hole location

Hole Number	Azimuth (°)	Dip (°)	Length (m)	UTM E	UTM N	Elevation	Section
OSK-W-22-2420-W1	124	-59	1494	453398	5435556	413	3825
OSK-W-22-2605-W7	112	-55	1401	453551	5435669	408	4025
OSK-W-22-2653	146	-56	585	452958	5435198	415	3275
OSK-W-22-2654	141	-54	600	453009	5435274	416	3350
OSK-W-22-2655	146	-60	675	452976	5435277	411	3325
OSK-W-22-2657	144	-54	741	452986	5435343	411	3350
OSK-W-22-2663	325	-53	327	453109	5435182	407	3400
OSK-W-22-2670	148	-46	207	452572	5436049	405	3350
WST-22-1072B	152	-75	700	453646	5435347	-189	3950
WST-22-1073	155	19	255	453701	5435376	-195	4000
WST-22-1074	142	28	258	453702	5435376	-195	4000
WST-22-1082	166	-23	517	453444	5435276	-99	3725
WST-22-1092	147	-7	349	453510	5435330	-126	3825
WST-22-1093A	102	-68	632	453647	5435348	-189	3950
WST-22-1107	124	-74	741	453647	5435348	-189	3950
WST-22-1116	169	-72	532	453645	5435347	-189	3950
WST-22-1123	185	-24	202	453541	5435311	-172	3825
WST-22-1125	187	1	370	453443	5435276	-98	3725
WST-22-1127	200	-76	223	453179	5435128	173	3425
WST-22-1128A	182	-72	222	453179	5435128	173	3425
WST-22-1146	153	25	268	453701	5435376	-195	4000
WST-22-1156	182	-69	183	453179	5435127	172	3425
WST-22-1163A	178	-49	382	453541	5435311	-173	3825
WST-22-1178	125	35	159	453703	5435377	-194	4000
WST-22-1182A	112	-76	761	453647	5435347	-189	3950
WST-22-1182A-W1	112	-76	811	453647	5435347	-189	3950
WST-22-1183	161	-7	420	453279	5435248	-145	3575
WST-22-1191	165	-6	418	453279	5435248	-145	3575
WST-22-1193A	170	-15	190	453342	5435282	-187	3650
WST-22-1203	170	-10	423	453278	5435248	-145	3575
WST-22-1218	162	-49	279	453542	5435311	-173	3825
WST-22-1220	106	-57	346	453759	5435407	-208	4075
WST-22-1221	114	-56	343	453759	5435407	-208	4075
WST-22-1232	169	-67	589	453757	5435406	-208	4075
WST-22-1249A	186	-3	385	453442	5435275	-98	3725
WST-22-1253	165	-38	252	453542	5435311	-172	3825
WST-22-1254	169	-36	253	453541	5435311	-172	3825
WST-22-1255	162	-32	241	453542	5435311	-172	3825
WST-22-1256	165	-70	586	453757	5435406	-208	4075
WST-22-1270A	162	-18	418	453278	5435248	-145	3575
WST-22-1273	138	-68	559	453758	5435406	-208	4075
WST-22-1286	152	-55	184	453646	5435347	-188	3950
WST-22-1287	134	-52	253	453758	5435406	-207	4075
WST-22-1288	158	-42	255	453543	5435312	-173	3825
WST-22-1293	172	-47	391	453543	5435311	-173	3825
WST-22-1294	173	-22	160	453756	5435405	-207	4075
WST-22-1296	136	-18	196	453758	5435406	-207	4075
WST-23-1373	138	-59	250	453646	5435347	-188	3950

 

Bobcat

Mineralization most commonly occurs in gold-bearing quartz-pyrite veins controlled by northeast trending faults and shears and to a lesser extent in minor crustiform quartz-tourmaline-ankerite-pyrite veins and pyrite replacement zones and stockwork. Mineralization is hosted in sheared mafic volcanics, rhyolites near faults, or at the contact with felsic porphyritic intrusions.

 

Lynx Zone

Mineralization occurs as grey to translucent quartz-carbonate-pyrite-tourmaline veins and pyrite replacement zones and stockworks. Vein-type mineralization is associated with haloes of pervasive sericite-pyrite ± silica alteration and contain sulphides (predominantly pyrite with minor amounts of chalcopyrite, sphalerite, galena, arsenopyrite, and pyrrhotite) and local visible gold. Replacement mineralization is associated with strong pervasive silica-sericite-ankerite ± tourmaline alteration and contains disseminated pyrite from trace to 80% with local visible gold. Pyrite stockworks can form envelopes that reach several tens of metres thick. Fuchsite alteration is common and is spatially constrained to near the gabbros. Mineralization occurs at or near geological contacts between felsic porphyritic or fragmental intrusions and the host rhyolites or gabbros and locally can be hosted along the gabbro-rhyolite contact.

 

F-Zones

Mineralization is hosted in sheared andesites with carbonate replacement or quartz veining and occurs as quartz ± ankerite veinlets or as replacement type in shear zones and is characterised by trace to 10% pyrite with local visible gold. Alteration is dominated by sericite-fuchsite-tourmaline-pyrite.

 

Qualified Person

The scientific and technical content of this news release has been reviewed, prepared, and approved by Ms. Isabelle Roy, P.Geo. (OGQ 535), Director of Technical Services for Osisko’s Windfall gold project, who is a “qualified person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).

 

Quality Control and Reporting Protocols

True width determination is estimated at 55-80% of the reported core length interval for the zone. Assays are uncut except where indicated. Intercepts occur within geological confines of major zones but have not been correlated to individual vein domains at this time. Reported intervals include minimum weighted averages of 3.5 g/t Au diluted over core lengths of at least 2.0 metres. NQ core assays were obtained by either 1-kilogram screen fire assay or standard 50-gram fire-assaying-AA finish or gravimetric finish at (i) ALS Laboratories in Val d’Or, Québec, Vancouver, British Colombia, Lima, Peru or Vientiane, Laos (ii) Bureau Veritas in Timmins, Ontario. The 1-kilogram screen assay method is selected by the geologist when samples contain coarse gold or present a higher percentage of pyrite than surrounding intervals. Selected samples are also analyzed for multi-elements, including silver, using a Four Acid Digestion-ICP-MS method at ALS Laboratories. Drill program design, Quality Assurance/Quality Control (“QA/QC”) and interpretation of results is performed by qualified persons employing a QA/QC program consistent with NI 43-101 and industry best practices. Standards and blanks are included with every 20 samples for QA/QC purposes by the Corporation as well as the lab. Approximately 5% of sample pulps are sent to secondary laboratories for check assay.

 

About the Windfall Gold Deposit

The Windfall gold deposit is located between Val-d’Or and Chibougamau in the Abitibi region of Québec, Canada. The mineral resource estimate on Windfall (with an effective date of June 7, 2022 ) (the “Windfall Resource Estimate”) and the mineral reserve estimate on Windfall (with an effective date of November 25, 2022) (the “Windfall Reserve Estimate”) are described in the technical report entitled “Feasibility Study for the Windfall Project, Eeyou Istchee James Bay, Québec, Canada” (the “FS Technical Report”) and dated January 10, 2023 (with an effective date of November 25, 2022). The Windfall Resource Estimate, assuming a cut-off grade of 3.50 g/t Au, comprises 811,000 tonnes at 11.4 g/t Au (297,000 ounces) in the measured mineral resource category, 10,250,000 tonnes at 11.4 g/t Au (3,754,000 ounces) in the indicated mineral resource category and 12,287,000 tonnes at 8.4 g/t Au (3,337,000 ounces) in the inferred mineral resource category. The Windfall Reserve Estimate, assuming 3.5 g/t operating, 2.5 g/t incremental, and 1.7 g/t development cut-off grade, comprises 12,183,000 tonnes at 8.06 g/t Au (3,159,000 ounces) in the probable mineral reserves category. The key assumptions, parameters, limitations and methods used in the Feasibility Study for Windfall, including the related Windfall Resource Estimate and Windfall Reserve Estimate, are described in a technical report (the “FS Technical Report”), which was prepared in accordance with NI 43-101. The FS Technical Report is available on SEDAR (www.sedar.com) under Osisko’s issuer profile. The Windfall gold deposit is currently one of the highest-grade resource-stage gold projects in Canada and has world-class scale. Mineralization occurs in three principal areas: Lynx, Main, and Underdog. Mineralization is generally comprised of sub-vertical lenses following intrusive porphyry contacts plunging to the northeast. The resources are defined from surface to a depth of 1,600 metres, including the Triple 8 (TP8) zone. The reserves are defined from surface to a depth of 1,100 metres. The deposit remains open along strike and at depth. Mineralization has been identified at surface in some areas and as deep as 2,625 metres in others with significant potential to extend mineralization down-plunge and at depth.

 

About Osisko Mining Inc.

Osisko is a mineral exploration company focused on the acquisition, exploration, and development of precious metal resource properties in Canada. Osisko holds a 100% interest in the high-grade Windfall gold deposit located between Val-d’Or and Chibougamau in Québec and holds a 100% undivided interest in a large area of claims in the surrounding the Urban Barry area and nearby Quévillon area (over 2,400 square kilometres).

 

Cautionary Note Regarding Forward-Looking Information

This news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always, using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “potential”, “feasibility”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This news release contains the forward-looking information pertaining to, among other things: the Windfall gold deposit being one of the highest-grade resource-stage gold projects in Canada and having world-class scale; the significance of the infill and expansion drilling results reported in this news release; the significance of the new analytical results reported in this news release; the timing and ability, if at all, for Osisko to obtain permits; the results of the Environmental Impact Assessment; our ability, if at all, to upgrade an inferred mineral resource to a measured mineral resource or indicated mineral resource category; future exploration activities, including drilling, at the Windfall gold deposit; the deposit remaining open along strike and at depth; the plunge potential of the Lynx and Underdog zones; expected grade and resource growth; cut-off grade and sensitivity analysis; and the significance of historic exploration activities and results. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, Osisko cannot assure shareholders and prospective purchasers of securities of the Corporation that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither Osisko nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. Such factors include, among others, risks relating to the ability of exploration activities (including drill results) to accurately predict mineralization; errors in management’s geological modelling; the ability of Osisko to complete further exploration activities, including drilling; property and royalty interests in the Windfall gold deposit; the ability of the Corporation to obtain required approvals; the results of exploration activities; risks relating to mining activities; the global economic climate; metal prices; dilution; environmental risks; and community and non-governmental actions. Osisko does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

 

CONTACT INFORMATION:

John Burzynski
Chief Executive Officer
Telephone (416) 363-8653

388 g/t Au over 2.2 Metres Lynx Main

135 g/t Au over 6.3 Metres in Lynx 4

(Toronto, August 17, 2021) Osisko Mining Inc. (OSK:TSX. “Osisko” or the “Corporation”) is pleased to provide new analytical results from the ongoing drill program at its 100% owned Windfall gold project located in the Abitibi greenstone belt, Urban Township, Eeyou Istchee James Bay, Québec.

Significant new analytical results presented below include 39 intercepts in 17 drill holes (11 from surface, 6 from underground) and 10 wedges. The infill intercepts are located inside defined February 2021 mineral resource estimate (“MRE”) blocks (see Osisko news release dated February 17, 2021). The expansion intercepts are located outside the February 2021 MRE blocks and either expand resource wireframes or are in a defined zone or corridor but do not yet correlate to a specific wireframe.

Osisko Chief Executive Officer John Burzynski commented: “This week’s drill results demonstrate once again the strong continuity of the Windfall mineralization with high-grade intercepts in multiple different zones across the deposit, namely Lynx Main, Lynx 4, and Underdog. Expansion results continue to confirm that many zones remain open to growth, as demonstrated by hole OSK-W-21-2540-W1, which extends Triple Lynx 3163 wireframe 80 meters to the east.”

Selected high-grade intercepts include: 388 g/t Au over 2.2 metres in WST-21-0823; 135 g/t Au over 6.3 metres and 24.3 g/t Au over 5.2 metres in WST-21-0828; 187 g/t Au over 2.5 metres in WST-21-0763A; 113 g/t Au over 3.7 metres in OSK-W-21-2479-W5; 130 g/t Au over 2.9 metres and 38.8 g/t Au over 3.2 metres in OSK-W-21-2287-W3; 61.5 g/t Au over 3.0 metres in OSK-W-21-2544; and 41.5 g/t Au over 4.4 metres in OSK-W-21-2520. Maps showing hole locations and full analytical results are available at www.osiskomining.com.

Infill Drilling

Hole No.	From (m)	To (m)	Interval (m)	Au (g/t) uncut	Au (g/t)         cut to 100 g/t	Zone	Corridor
OSK-W-17-1260	1067.4	1073.0	5.6	9.38		UDD_4123	Underdog
including	1072.0	1073.0	1.0	23.8
OSK-W-20-2283-W5	826.0	828.0	2.0	16.7	16.5	TLX_3184	Triple Lynx
including	826.8	827.1	0.3	101	100
OSK-W-21-1432-W4	938.0	940.0	2.0	7.17		LX4_3437	Lynx 4
including	938.5	939.0	0.5	26.6
OSK-W-21-1827-W5	510.0	512.4	2.4	17.3		CA2_2231	Caribou
including	511.1	511.7	0.6	60.9
OSK-W-21-2287-W3	1229.8	1233.0	3.2	38.8		LX4_3449	Lynx 4
including	1232.0	1233.0	1.0	98.5
	1243.6	1246.5	2.9	130	73.1	LX4_3449	Lynx 4
including	1245.3	1245.6	0.3	324	100
and	1245.6	1245.9	0.3	258	100
OSK-W-21-2467	564.0	566.0	2.0	7.44		CA2_2232	Caribou
	568.0	570.2	2.2	51.2	47.9	CA2_2232	Caribou
including	568.5	569.2	0.7	111	100
OSK-W-21-2470-W6	1057.0	1059.5	2.5	16.4		TLX_3170	Triple Lynx
including	1058.0	1058.4	0.4	42.3
OSK-W-21-2479-W6	775.4	777.5	2.1	5.14		UDD_4107	Underdog
OSK-W-21-2512-W1	772.0	778.0	6.0	13.8		UDD_4104	Underdog
including	772.0	773.5	1.5	38.2
OSK-W-21-2520	813.7	816.0	2.3	6.19		UDD_4121	Underdog
including	814.4	814.9	0.5	27.6
	818.6	823.0	4.4	41.5	30.8	UDD_4121	Underdog
including	818.6	818.9	0.3	257	100
including	821.0	821.8	0.8	96.7
	1089.0	1091.4	2.4	11.0		UDD_4911	Underdog
including	1089.9	1090.7	0.8	32.2
OSK-W-21-2531	1071.0	1076.0	5.0	5.83		UDD_4915	Underdog
OSK-W-21-2537	985.5	988.1	2.6	18.1		TLX_3163	Triple Lynx
including	987.5	988.1	0.6	51.9
	1057.7	1059.8	2.1	13.8		TLX_3170	Triple Lynx
including	1058.9	1059.3	0.4	68.1
OSK-W-21-2544	795.0	798.0	3.0	61.5	36.9	TLX_3171	Triple Lynx
including	795.0	795.8	0.8	192	100
	818.0	820.0	2.0	15.0		TLX_3184	Triple Lynx
including	818.0	819.0	1.0	29.3
OSK-W-21-2554	136.9	139.2	2.3	4.75		F51_6008	F-51
WST-20-0505A	49.0	51.5	2.5	9.42		LXM_3339	Lynx
including	50.2	50.8	0.6	38.8
WST-21-0763A	169.5	172.0	2.5	187	69.3	LXM_3304	Lynx
including	170.2	171.1	0.9	377	100
WST-21-0802A	390.0	392.0	2.0	19.0		LSW_3556	Lynx SW
including	390.0	390.4	0.4	59.9
	394.0	396.0	2.0	6.37		LSW_3556	Lynx SW
	408.0	410.0	2.0	31.8		LSW_3556	Lynx SW
including	408.8	409.6	0.8	77.8
WST-21-0823	165.2	167.4	2.2	388	47.4	LXM_3304	Lynx
including	165.2	165.5	0.3	2600	100
WST-21-0828	489.1	494.3	5.2	24.3	23.3	LX4_3430	Lynx 4
including	493.4	494.3	0.9	106	100
	520.0	526.3	6.3	135	48.5	LX4_3440	Lynx 4
including	521.6	522.9	1.3	303	100
including	525.0	526.0	1.0	380	100

Notes: True widths are estimated at 55 – 80% of the reported core length interval. See “Quality Control and Reporting Protocols” below. LXM = Lynx Main, LX4 = Lynx 4, LSW = Lynx Southwest, TLX = Triple Lynx, CA2 = Caribou and UDD = Underdog.

 

 

 

 

Expansion Drilling

Hole No.	From (m)	To (m)	Interval (m)	Au (g/t) uncut	Au (g/t)         cut to 100 g/t	Zone	Corridor
OSK-W-20-2437	313.0	315.0	2.0	5.89		Caribou	Caribou
OSK-W-21-2479-W5	728.0	731.7	3.7	113	39.3	UDD	Underdog
including	731.0	731.7	0.7	488	100
OSK-W-21-2520	935.7	943.3	7.6	13.1	12.4	UDD	Underdog
including	938.6	939.0	0.4	114	100
OSK-W-21-2532	809.0	815.2	6.2	9.91		UDD	Underdog
including	809.0	809.5	0.5	40.4
including	812.5	813.1	0.6	35.4
OSK-W-21-2540-W1	966.0	968.3	2.3	5.05		TLX_3163	Triple Lynx
	969.9	976.3	6.4	18.1		TLX_3163	Triple Lynx
including	969.9	970.5	0.6	57.8
including	974.5	975.1	0.6	67.3
OSK-W-21-2540-W2	927.0	929.4	2.4	14.1		TLX_3163	Triple Lynx
including	927.0	927.5	0.5	55.0
OSK-W-21-2544	859.9	862.0	2.1	11.2		TLX_3198	Triple Lynx
including	861.0	861.4	0.4	34.4
OSK-W-21-2549	626.4	628.4	2.0	5.73		Caribou	Caribou
OSK-W-21-2559	586.0	588.0	2.0	6.70		Caribou	Caribou
including	586.0	587.0	1.0	13.2
WST-21-0841	286.0	288.0	2.0	12.1		LSW	Lynx SW
including	287.0	288.0	1.0	23.7

Notes: True widths are estimated at 55 – 80% of the reported core length interval. See “Quality Control and Reporting Protocols” below. LSW = Lynx Southwest, TLX = Triple Lynx, UDD = Underdog.

 

Drill hole location

Hole Number	Azimuth (°)	Dip (°)	Length (m)	UTM E	UTM N	Elevation	Section
OSK-W-17-1260	329	-49	1134	452865	5434568	397	2875
OSK-W-20-2283-W5	135	-50	1043	452997	5435607	425	3500
OSK-W-20-2437	329	-62	630	452597	5434393	401	2550
OSK-W-21-1432-W4	132	-55	1053	453811	5435779	400	4300
OSK-W-21-1827-W5	331	-58	1164	452506	5434390	403	2475
OSK-W-21-2287-W3	116	-53	1368	453607	5435714	404	4075
OSK-W-21-2467	331	-54	717	452685	5434474	402	2675
OSK-W-21-2470-W6	132	-59	1119	453304	5435639	415	3775
OSK-W-21-2479-W5	344	-55	978	452315	5434419	399	2325
OSK-W-21-2479-W6	344	-55	1014	452315	5434419	399	2325
OSK-W-21-2512-W1	331	-54	1089	452448	5434465	400	2475
OSK-W-21-2520	337	-56	1140	452596	5434392	401	2550
OSK-W-21-2531	344	-62	1188	452566	5434415	403	2550
OSK-W-21-2532	341	-60	1107	452480	5434428	401	2475
OSK-W-21-2537	114	-54	1243	452981	5435549	420	3450
OSK-W-21-2540-W1	117	-60	1053	453465	5435640	410	3925
OSK-W-21-2540-W2	117	-60	1314	453465	5435640	410	3925
OSK-W-21-2544	128	-50	1161	452961	5435529	419	3425
OSK-W-21-2549	332	-58	723	452703	5434455	401	2675
OSK-W-21-2554	131	-57	189	453426	5435858	405	4000
OSK-W-21-2559	327	-51	589	452829	5434550	398	2850
WST-20-0505A	183	-46	331	453227	5435125	134	3475
WST-21-0763A	120	-39	567	453507	5435332	-47	3800
WST-21-0802A	149	-65	448	452953	5435003	253	3175
WST-21-0823	120	-35	545	453507	5435332	-47	3800
WST-21-0828	123	-42	645	453507	5435331	-48	3800
WST-21-0841	125	-65	438	453106	5435066	231	3325

 

Caribou Zone

Mineralization most commonly occurs in gold-bearing pyrite stockworks as well as semi-massive pyrite replacement zones associated with phyllic alteration (sericite-pyrite ± silica) with sulphides, pyrite dominated with minor chalcopyrite and sphalerite ranging from trace to up to 20%, and local visible gold. Mineralization is hosted in rhyolites or mafic-intermediate volcanics frequently at or near faults or the contact with felsic porphyritic intrusions.

Underdog

Mineralization most commonly occurs in gold-bearing quartz-pyrite (± tourmaline) veins and as disseminated, stringer, semi-massive to massive pyrite with minor sphalerite, chalcopyrite and molybdenite associated with strong sericite and silica alteration. Mineralization is hosted along the intrusive contacts of a three-phase composite felsic porphyritic unit which cross-cuts felsic and mafic volcanic sequences.

 

Lynx Zone

Mineralization occurs as grey to translucent quartz-carbonate-pyrite-tourmaline veins and pyrite replacement zones and stockworks. Vein-type mineralization is associated with haloes of pervasive sericite-pyrite ± silica alteration and contain sulphides (predominantly pyrite with minor amounts of chalcopyrite, sphalerite, galena, arsenopyrite, and pyrrhotite) and local visible gold. Replacement mineralization is associated with strong pervasive silica-sericite-ankerite ± tourmaline alteration and contains disseminated pyrite from trace to 80% with local visible gold. Pyrite stockworks can form envelopes that reach several tens of metres thick. Fuchsite alteration is common and is spatially constrained to near the gabbros. Mineralization occurs at or near geological contacts between felsic porphyritic or fragmental intrusions and the host rhyolites or gabbros and locally can be hosted along the gabbro-rhyolite contact.

F-Zones

Mineralization is hosted in sheared andesites with carbonate replacement or quartz veining and occurs as quartz ± ankerite veinlets or as replacement type in shear zones and is characterised by trace to 10% pyrite with local visible gold. Alteration is dominated by sericite-fuchsite-tourmaline-pyrite.

 

Qualified Person

The scientific and technical content of this news release has been reviewed, prepared and approved by Mr. Louis Grenier, M.Sc.A., P.Geo. (OGQ 800), Director of Exploration for Osisko’s Windfall gold project, who is a “qualified person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).

 

Quality Control and Reporting Protocols

True width determination is estimated at 55-80% of the reported core length interval for the zone. Assays are uncut except where indicated. Intercepts occur within geological confines of major zones but have not been correlated to individual vein domains at this time. Reported intervals include minimum weighted averages of 3.5 g/t Au diluted over core lengths of at least 2.0 metres. NQ core assays were obtained by either 1-kilogram screen fire assay or standard 50-gram fire-assaying-AA finish or gravimetric finish at (i) ALS Laboratories in Val d’Or, Québec, Vancouver, British Colombia, Lima, Peru or Vientiane, Laos (ii) Bureau Veritas in Timmins, Ontario. The 1-kilogram screen assay method is selected by the geologist when samples contain coarse gold or present a higher percentage of pyrite than surrounding intervals. Selected samples are also analyzed for multi-elements, including silver, using a Four Acid Digestion-ICP-MS method at ALS Laboratories. Drill program design, Quality Assurance/Quality Control (“QA/QC”) and interpretation of results is performed by qualified persons employing a QA/QC program consistent with NI 43-101 and industry best practices. Standards and blanks are included with every 20 samples for QA/QC purposes by the Corporation as well as the lab. Approximately 5% of sample pulps are sent to secondary laboratories for check assay.

 

About the Windfall Gold Deposit

The Windfall gold deposit is located between Val-d’Or and Chibougamau in the Abitibi region of Québec, Canada. The Mineral Resource Estimate (“MRE“) defined by Osisko, as disclosed in the news release dated February 17, 2021 is supported by the technical report entitled “Preliminary Economic Assessment Update for the Windfall Project” dated April 26, 2021 (that includes Windfall Mineral Resource Estimate with an effective date  of November 30, 2020), and assuming a cut-off grade of 3.50 g/t Au, comprises 521,000 tonnes at 11.3 g/t Au (189,000 ounces) in the measured mineral resource category, 5,502,000 tonnes at 9.4 g/t Au (1,668,000 ounces) in the indicated mineral resource category and 16,401,000 tonnes at 8.0 g/t Au (4,244,000 ounces) in the inferred mineral resource category. The key assumptions, parameters and methods used to estimate the mineral resource estimate disclosed in the February 17, 2021 news release are further described in the full technical report prepared by BBA Inc. in accordance with NI 43-101 and is available on SEDAR (www.sedar.com) under the Corporation’s issuer profile. The Windfall gold deposit is currently one of the highest-grade resource-stage gold projects in Canada and has world-class scale. Mineralization occurs in three principal zones: Lynx, Main Zone, and Underdog. Mineralization is generally comprised of sub-vertical zones following intrusive porphyry contacts plunging to the northeast. The resources are defined from surface to a depth of 1,600 metres as it now includes the Triple 8 (T8) zone. The resources excluding T8 are defined from surface to a depth of 1,200 metres. The deposit remains open along strike and at depth. Mineralization has been identified at surface in some areas and as deep as 2,625 metres in others with significant potential to extend mineralization down-plunge and at depth.

 

About Osisko Mining Inc.

Osisko is a mineral exploration company focused on the acquisition, exploration, and development of gold resource properties in Canada. Osisko holds a 100% interest in the high-grade Windfall gold deposit located between Val-d’Or and Chibougamau in Québec and holds a 100% undivided interest in a large area of claims in the surrounding Urban Barry area and nearby Quévillon area (over 2,700 square kilometres).

 

Cautionary Note Regarding Forward-Looking Information

This news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always, using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “potential”, “feasibility”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This news release contains the forward-looking information pertaining to, among other things: the Windfall gold deposit being one of the highest-grade resource-stage gold projects in Canada and having world-class scale; the key assumptions, parameters and methods used to estimate the mineral resource estimate disclosed in this news release; the prospects, if any, of the Windfall gold deposit; timing and ability of Osisko to file a technical report for the mineral resource estimate disclosed in this news release; the timing and ability of Osisko, if at all, to publish a feasibility study for the Windfall gold deposit; the amount and type of drilling to be completed and the timing to complete such drilling; the focus of the remaining infill drilling; the trend of grade increase; the Lynx zone remaining open to expansion down plunge; upgrading a inferred mineral resource to a measured mineral resource or indicated mineral resource category; future drilling at the Windfall gold deposit; the significance of historic exploration activities and results. Such factors include, among others, risks relating to the ability of exploration activities (including drill results) to accurately predict mineralization; errors in management’s geological modelling; the ability of Osisko to complete further exploration activities, including (infill) drilling; property and royalty interests in the Windfall gold deposit; the ability of the Corporation to obtain required approvals; the results of exploration activities; risks relating to mining activities; the global economic climate; metal prices; dilution; environmental risks; and community and non-governmental actions. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, Osisko cannot assure shareholders and prospective purchasers of securities of the Corporation that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither Osisko nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. Osisko does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

 

CONTACT INFORMATION:

John Burzynski
Chief Executive Officer
Telephone (416) 363-8653

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Long Section EN infill 20210817

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