Osisko gets construction approval for Quebec mine
Thu Aug 20, 2009 11:50am EDT
reuters.com
* Quebec approves open-pit mine construction
* Build to take 18 months, mine operational Q2 2011
* Shares rise 2.2 percent to C$7.20
TORONTO, Aug 20 (Reuters) - Osisko Mining (OSK.TO) said on Thursday it has received final authorization from the province of Quebec to build its 6.3-million-ounce Canadian Malartic mine, which will be one of the country's largest gold mines.
"Construction work on the mine and the mill will begin shortly, immediately upon issuance of the required formal authorization certificates," Osisko said in a statement.
It said the Quebec cabinet had approved the authorization through an order in council.
The deposit, for which Osisko is moving an entire neighborhood in the town of Malartic, Quebec, is the country's largest unmined gold deposit.
The open-pit mine should take 18 months to build and be fully operational by the second quarter of 2011, Osisko said.
Osisko said on Thursday its total overall investment totals nearly C$1 billion ($917 million), and should create 800 jobs during the construction phase and 465 permanent jobs during the 10-year mine life.
The company's shares were up 16 Canadian cents, or 2.2 percent, at C$7.20 on the Toronto Stock Exchange.
Osisko has been seen as a prime takeover target for cash-rich gold majors hoping to stock up their production pipelines.
Such speculation spiked last week when Goldcorp (G.TO) announced it had acquired about 13 percent of the company.
Other names often mentioned include Kinross Gold (K.TO) and Agnico-Eagle Mines (AEM.TO), although Agnico has said it would prefer to acquire earlier-stage projects.
($1=$1.09 Canadian) (Reporting by Cameron French; editing by Rob Wilson) |
