Osisko proceeds with Barro Alto diligence sampling
Osisko Exploration Ltd OSK
Shares issued 19,624,860 Jan 6 close $0.52
Wed 7 Jan 2004 News Release
Mr. Robert Wares reports
DUE DILIGENCE WORK UNDER WAY AT BARRO ALTO OXIDE GOLD PROPERTY
Due diligence sampling is in progress on the Barro Alto gold property,
Brazil. Osisko Exploration recently signed a letter of intent with Amazonia
Mineracao Ltda. to acquire an interest of up to 75 per cent in the Barro
Alto property, as reported in Stockwatch on Dec. 22, 2003.
The 65.8-hectare Barro Alto property is located in central Goias state,
Brazil. The project area is 200 kilometres northwest of Brasilia and 280
kilometres north of the state capital of Goiania, with excellent local
infrastructure, including paved roads and nearby power grids.
Goias state is one of Brazil's most productive gold provinces and has over
300 years of gold production history. Current and near-term producers
include the Anglogold-Kinross Serra Grande (Crixas) mine (192,000 ounces
per year), Troy-Amazonia's Sertao mine (72,000 ounces per year) and Yamana
Gold's planned Fazenda Nova mine (scheduled to open in 2004 at 35,000
ounces per year).
The Barro Alto prospect consists of gold mineralization associated with
quartz-sulphide veins/stockworks and sericite-carbonate-pyrite schists that
represent shear-hosted, hydrothermally altered mid-Proterozoic
metasedimentary rocks.
The prospect was discovered and worked by a garimpeiro co-operative
(Copoeste, original vendors of the property) in the late 1990s. Garimpeiro
mine workings on the property include a
100-metre-by-30-metre-eight-metre-deep pit as well as 28 shafts (three to
21 metres deep) excavated into oxidized material. The workings are
scattered over a strike length of 700 metres along the principal shear
zone, which has never been drilled.
Recent (1999) bulk sampling by the garimpeiro co-operative produced the
following results:
a) weighted average of 31.8 grams per tonne gold from 735 tonnes of quartz
vein material extracted from 13 shafts located over a 450-metre strike
length of the shear zone;
b) 30.0 grams per tonne gold from 30 tonnes of quartz vein material
extracted from one shaft sunk into an oblique crosscutting vein; and
c) 3.55 grams per tonne gold from 40 tonnes of material (schist plus
stockwork) collected from the main garimpeiro pit.
These values have not been confirmed by Osisko and are the subject of due
diligence sampling by the technical team presently on-site. The main
objective of the current due diligence program, which will include limited
surface trenching, is to confirm the width and strike length of the
mineralized system as well as gold grades within exposed veins.
Following completion of the due diligence program and subject to regulatory
approval of the final option agreement with Amazonia, Osisko will commence
a detailed drill program at Barro Alto in late January, 2004. The objective
of the drill program will be to delineate a near-surface gold resource by
May, 2004.
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