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Bulk Sampling from Quebec Project Shows High Grades
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An iA Securities report notes the early results from this Canadian mine indicate gold grades could increase.

In a Dec. 19 research note, analyst George Topping reported that preliminary bulk sampling results from Osisko Mining Inc. (OSK:TSX) Windfall project demonstrate a "39% positive reconciliation in grade." Findings are from 2,078 tons of ore obtained from block 114 in zone 27 at the Quebec property.

Topping highlighted results revealing an estimated average head grade of 9.7 grams per ton gold (9.7 g/t Au), 39% higher than the 7 g/t grade predicted by the resource block model for that specific area. "This is interesting," Topping commented, "as the test area was tightly drilled at 12.5-meter centers and suggests the high variability in grades combined with capping could be materially underestimating the true grade."

Topping pointed out that as drilling tightened at the Lynx property, adjacent to Windfall, the grade increased. Most recently, as of the November 2018 resource estimate, it stands at 8.1 g/t Au. Lynx is now in the feasibility study stage.

Osisko will report results from the remainder of the first batch of bulk samples from Windfall, 2,922 tons' worth, in 2019. It plans to extract two additional, 5,000-ton bulk samples at this project as well.

Osisko Mining, in general, Topping highlighted, is progressing toward production in 2020-2021. "New discoveries at Deep Underdog (Triple 8) and Deep Lynx plus the recent funding by Kirkland Lake Gold Ltd. have added excitement back into the stock," he wrote. IA Securities maintains its Buy recommendation and CA$4.50 per share target price on Osisko Mining, whose current share price is about CA$2.72.


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Disclosures from iA Securities, Osisko Mining Inc., Research Update, December 19, 2018

Conflicts of Interest: The research analyst and or associates who prepared this report are compensated based upon (among other factors) the overall profitability of iA Securities, which may include the profitability of investment banking and related services. In the normal course of its business, iA Securities may provide financial advisory services for the issuers mentioned in this report. iA Securities may buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.

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