VANCOUVER (miningweekly.com) – Project developer Osisko Mining has reported significant exploration success at its flagship Windfall Lake deposit, in Quebec, extending the satellite Lynx deposit.
The Toronto-based mineral explorer on Wednesday reported assays from 12 holes drilled at Windfall Lake, focused on the Lynx zone, located northeast of the existing 1.6-million-ounce resource.
Two intersections were noteworthy, including Hole OSK-W-17-881, which hit 2 m of 379 g/t gold at 412 m down-hole depth. This is the fourth-best hit yet from the Lynx zone on a grade-to-width basis. Hole OSK-W-17-908 hit 4.2 m of 10.6 g/t gold at a 738 m down-hole depth. This hole was drilled on Section 4350 and is 475 m northeast of Lynx.
Previously, Lynx had a strike length of 525 m based on assays announced to date, excluding sections southwest of Section 3300. However, step-out drilling from 15 holes on sections between 3825 and 4750 intersected geology, alteration and mineralisation similar to Lynx, which could increase the strike length to 1.45 km.
The Windfall Lake drill programme is testing a linear magnetic low that was identified in the high-resolution airborne magnetic survey conducted early in 2016 by Osisko and interpreted to be related to a magnetite destructive event related to the Windfall intrusive system. The magnetic geophysical anomaly extends for a total strike length of 4 km.
Removing the two significant holes in Wednesday’s press release, the remaining holes average 3.2 m of 9 g/t gold.
Osisko plans to build the mill at Lebel-sur-Quevillon, located about 100 km from Windfall Lake, to reduce permitting timelines and remove the power line and camp costs.
Osisko recently acquired the Quevillon project, adding 1.8-million ounces of gold split between 972 000 oz in the openpit and 833 000 oz underground. These ounces are 32 km from the proposed mill site. Should Osisko be able to mine high-grade ounces from this property, it would push back lower-grade ounces from Windfall Lake and the associated trucking costs, boosting the net present value, Eight Capital analyst Craig Stanley said in a note to clients.
Osisko plans to drill this deposit later in the year.
Twenty-four drills are active at Windfall Lake, with 12 rigs at Lynx. Dewatering of the existing 1 200 m ramp is under way.