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Osisko Gold drilling finds new mineralized system at Proserpine
Results from early Proserpine holes include 4.6 metres grading 95.9 grams per tonne gold from 110 metres depth, and Osisko Gold shares jumped 9% to $3.73 in Toronto.
Osisko Gold Group said early drilling at its Proserpine target near the Cariboo gold project in British Columbia outlined a new mineralized system that could support future open-pit mining alongside a planned underground operation, according to Mining.com. The company said the intercepts provide a proof of concept for Proserpine’s potential to contribute to future resource growth at Cariboo.
The standout hole, PSP-26-004, cut 4.6 metres grading 95.93 grams per tonne gold from 110 metres depth, including a 50-centimetre interval of 873 grams gold from 112 metres. Another hole, PSP-26-001, returned 8.6 metres grading 5.46 grams gold from 97 metres depth, plus 14.5 metres of 2.17 grams gold from 572 metres.
Osisko said mineralization remains open in all directions, and that the 14 holes that reached their intended depths encountered mineralization from near surface to about 400 metres downhole. It also reported that results expanded the footprint of known mineralization at Proserpine to roughly 1 km along strike by 500 metres in width.
Shares rose 9% to $3.73 Wednesday morning in Toronto, valuing the company at about $1.1 billion, according to the report. Osisko said it plans about 26,500 metres of drilling at Proserpine initially using three rigs, as Cariboo construction continues while underground drilling refines the mine plan and tests extensions.
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