Val d’Or mine to hit commercial production in June: Osisko

Osisko Mining Corp. will hit commercial production at its Canadian Malartic gold mine near Val d’Or by the end of June after processing 465,000 tonnes of ore or 15,500 tonnes daily in April, yielding 3,500 ounces of gold.

Commercial production is flagged when ore processing reaches 60 per cent of the plant capacity over a 30-day period, Osisko said. Also, drilling and higher gold prices have increased calculated proven and probable reserves by 19.3 per cent to 10.7 million ounces, extending the mine’s life to 16 years.

The mine has resumed night work to reduce the impact of noise on the Malartic community, CEO Sean Roosen said. The company is working to develop the Hammond Reef gold property in Northern Ontario and 56,417 metres of drilling was completed in the March quarter. A resource statement will be issued later this year.

Canadian Malartic will have annual output of more than 600,000 ounces when in full operation and Hammond Reef may equal or surpass that. It will put Osisko into the intermediate producer league, Roosen said.

Osisko posted a $5.1-million first-quarter loss. It had $254 million of cash at March 31.