Osisko Previews Q4 2012 Canadian Malartic Operating Results and 2013 Guidance

Osisko Previews Q4 2012 Canadian Malartic Operating Results and 2013 Guidance 
- 2013 Gold production estimated at 485,000 to 510,000 ounces 
MONTREAL, QUEBEC -- (Marketwire) -- 01/24/13 -- Osisko Mining
Corporation (the "Company" or "Osisko") (TSX:OSK)(FRANKFURT:EWX)
today reports a preview of Canadian Malartic operational results for
the quarter ended December 31, 2012 and announces 2013 operational
guidance. 
Highlights  


 
--  Fourth quarter gold production of 101,544 ounces for year to date of
    388,478 ounces 
--  Completion of crushing circuit expansion program with installation of
    the second pebble crusher 

 
2013 Operating Guidance Highlights 


 
--  Gold production between 485,000 and 510,000 ounces 
--  Direct cash costs are estimated between $780 to $825 per ounce 
--  Capital expenditures of $220 million 

 
During the fourth quarter, the Company processed 4,088,021 tonnes at
the Canadian Malartic mill at a grade of 0.87 g/t Au and recoveries
of 88.8%. The average daily throughput rate of 44,435 tonnes per day
was affected by 6 days of shutdown to complete the installation of
the second pebble crusher and to make modifications to various
conveying systems in the crushing and grinding circuits. Fourth
quarter gold production totaled 101,544 ounces, bringing the gold
production for the year to 388,478 ounces. In 2011, gold production
totaled 200,137 ounces, including 19,505 ounces from pre-production.
The Canadian Malartic Mine reached commercial production on May 19,
2011. 
Production statistics for the year were as follows (excluding
pre-production): 


 
----------------------------------------------------------------------------
                                              2012                      2011
                        ----------------------------------------------------
Tonnes milled (t)                       14,046,526                 7,491,910
Grade (g/t Au)                                0.96                      0.85
Recovery (%)                                  89.4                      87.7
Ounces produced (oz)                       388,478                   180,633
----------------------------------------------------------------------------

 
The 2012 gold production at the mill was a
ffected by a fire in May,
several shutdowns for the tie-in of two new cone crushing units and
mill optimization modifications. 
During the fourth quarter, the mine production was affected by delays
in executing a significant blast (approximately 940,000 tonnes) which
delayed access to the north sector of the pit thus limiting
production. The blast occurred on October 27, 2012, however the
delays affected the mine sequencing and will have an impact on the
early 2013 mine production. The pit development continued to
progress, providing the mining development with greater flexibility.
Earlier in 2012, the mine production was affected by defective
booster units, which impacted negatively material handling
activities. 
The Company is working with the Quebec Government to modify certain
parameters in its operating permits to improve its efficiency.
Several meetings have been held over the past three months in a
collaborative mode. 
Production costs for the fourth quarter are estimated at
approximately $903 per ounce (estimate subject to change as amount is
unaudited), compared to $952 per ounce in 2011. For the year to date
the production cost are estimated at $907 per ounce. 
The operating team is focused on further optimizing its operations
and thereby reducing costs. 
Outlook for 2013 
Following the modifications and commissioning of the pre-crushing
circuit and the second pebble crushing unit, it is anticipated that
mill throughput should be stabilized in 2013. Gold production is
estimated between 485,000 - 510,000 ounces for the year. As a result
of gaining access to higher grade material in the second half of the
year, it is anticipated that gold output will be higher in the second
semester. Direct cash costs are estimated between $780 - $825 per
ounce, a 9 - 14% reduction from 2012. 
Capital expenditures for 2013 are estimated at $220 million as
follows: 


 
----------------------------------------------------------------------------
                                                                  ($Million)
                                                  --------------------------
Canadian Malartic                                                         98
Hammond Reef                                                              10
Upper Beaver                                                              70
Exploration                                                               42
                                                  --------------------------
                                                                         220
----------------------------------------------------------------------------

 
The Company expects to release the Hammond Reef Feasibility Study in
the first semester of the year. 
Following the acquisition of Queenston Mining on December 28, 2012,
the Company has assumed the leadership of the Upper Beaver advanced
exploration program. It is also focused on integrating the Queenston
Exploration group into Osisko. For 2013, focus will be on the initial
development of the 1,300 meter exploration shaft, including
engineering, design and fabrication of the head frame and hoisting
facilities, initial collar excavation and preparation for shaft
sinking. 
The Company intends to invest $50 million in exploration on its
projects in the Americas, including $42 million that will be
capitalized. 
Sean Roosen, President and Chief Executive Officer of Osisko, noted:
"We are continuing our efforts to optimize our Canadian Malartic
operations and to aggressively pursue the development of our resource
and reserve base. We believe that 2013 will provide substantial
returns for our shareholders". 
Financial Results 
Full operational and financial results for the fourth quarter 2012
will be made available on February 21, 2013. Conference call will be
held on February 22, 2013 at 8:00 AM. 
About Osisko Mining Corporation  
Osisko Mining Corporation operates the Canadian Malartic Gold Mine in
Malartic, Quebec and is pursuing exploration on a number of
properties, including the Hammond Reef Gold and Upper Beaver projects
in Northern Ontario.  
Mr. Luc Lessard, Eng., Senior Vice-President and Chief Operating
Officer of Osisko, is the Qualified Person who has reviewed this news
release and is responsible for the technical information reported
herein, including verification of the data disclosed.  
Forward-Looking Statements 
Certain statements contained in this press release may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical fact, that address events or
developments that Osisko expects to occur, are forward-looking
statements. Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by the
words "expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential", "scheduled" and similar
expressions, or that events or conditions "will", "would", "may",
"could" or "should" occur including, without limitation, continued
progress on pit development, improved efficiency as a result of
timely modification of certain parameters in operating permits for
Canadian Malartic, accuracy of production cost estimat
es,
optimization of operations leading to cost reductions, stabilization
of mill throughput in 2013, reaching gold production guidance,
gaining access to higher grade zones at Canadian Malartic in a timely
manner, meeting direct cash costs estimates, releasing the Hammond
Reef Feasibility Study in a timely manner, continued development of
the Upper Beaver project. Although Osisko believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, including, without limitation, that all technical,
economical, regulatory and financial conditions will be met in order
to continue progress on pit development and mining optimization
through access to higher grade zones and to improve and stabilize
mill throughput at Canadian Malartic, to reach production and direct
cash costs guidance and to diligently pursue development of the
Hammond Reef and Upper Beaver Projects, such statements are not
guarantees of future performance and actual results may differ
materially from those in forward-looking statements. 
Factors that could cause the actual results to differ materially from
those in forward-looking statements include gold prices, access to
skilled consultants, mining development personnel, results of
exploration and development activities, Osisko's limited experience
with production and development stage mining operations, uninsured
risks, regulatory changes, defects in title, availability of
personnel, materials and equipment, timeliness of government
approvals, actual performance of facilities, equipment and processes
relative to specifications and expectations, unanticipated
environmental impacts on operations market prices, continued
availability of capital and financing and general economic, market or
business conditions. These factors are discussed in greater detail in
Osisko's most recent Annual Information Form and in the most recent
Management Discussion and Analysis filed on SEDAR, which also provide
additional general assumptions in connection with these statements.
Osisko cautions that the foregoing list of important factors is not
exhaustive. Investors and others who base themselves on
forward-looking statements should carefully consider the above
factors as well as the uncertainties they represent and the risk they
entail. Osisko believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this press release should not
be unduly relied upon. These statements speak only as of the date of
this press release.
Contacts:
John Burzynski
Vice-President Corporate Development
(416) 363-8653
www.osisko.com 
Sylvie Prud'homme
Director of Investor Relations
(514) 735-7131
Toll Free: 1-888-674-7563
 
 
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