Osisko Mining Inc. (OSK:TSX) has announced the discovery of a new gold-bearing zone at its Windfall Lake project located in the Abitibi greenstone belt of James Bay, Québec. The new zone is about 350 metres north of the main zone.
Four of the nine holes drilled at the new discovery contained visible gold. Notable drill results include 393 g/t gold over 2.2 metres, 31 g/t gold over 6.1 metres and 82.9 g/t gold over 2.3 metres.
The Windfall Lake project consists of 285 individual claims covering a total area of 12,467 hectares. The project hosts 2.38 million tonnes of indicated resources, according to a technical report published in May 2018.
In addition to Windfall Lake, Osisko has four other projects in Québec, including the nearby Urban Barry (1,997 claims) and Quévillon (4,211 claims). It is currently the largest stakeholder in the Urban Barry greenstone belt, holding over 40% of the land staked.
“Today’s results are very encouraging and reflect the continued assertion that Windfall is part of a larger, dynamic gold mineralized system. At this point, we await follow-up drilling to better understand orientation and grade continuity,” analysts at Haywood Securities said. The investment firm also maintained its projection for Osisko’s net asset value (NAV) of C$1.66 billion, or C$4.48 per share.
Shares of Osisko rose over 2% on Tuesday. The company’s market capitalization now stands at about C$767 million.