Osisko Gold’s Updated Mines Plan Calls for Increased Gold Production

Osisko Gold today released its updated in which it sets a goal of producing 525,000 to 575,000 ounces of gold this year, up from 475,277 ounces in 2013.

Costs Down

Sean Roosen, Osisko President and CEO told investors and financial analysts on a conference call on Thursday morning March 19, 2014 that mining costs are going down and production will be rising at its Canadian Malartic mine near Val D’or in northern Quebec.
 
Roosen told potential investors that 2014 cash costs per ounce at Malartic are estimated at US$527 to US$577 per ounce.
 

“In a sector that is seeing increased cash costs, Canadian Malartic is one of the few mines that's actually coming down in costs,” Roosen said.
 

Cash expenditures for 2014

To meet its objective of producing  525,000 to 575,000 ounces of gold in 2014 Osisko expects capital expenditures in 2014 to be C$148.0 million, including $125.8 million at Canadian Malartic. Some of that expenditure will be used to continue exploration at its property near Kirkland Lake, Ontario.
   

“Canadian Malartic is an “exceptional asset and we need to make sure it gets paid for.” Roosen added.

Over the next five years Roosen said he expects gold production to be 610,000 ounces per year and production costs at US$516 per ounce. During Malartic Mine’s 14 year life average gold production is forecast to average 597,000 ounces per year and costs at around US$525 per ounce.
 

Goldcorp Takeover Offer

Under a court settlement agreement announced on March 3, 2014 at the PDAC conference, Goldcorp agreed not to attempt to purchase any Osisko shares until April 15, 2014. In return Osisko will waive its shareholder rights plan by April 14.

Goldcorp will also be given access by Osisko to due diligence materials starting April 1, or earlier, if it signs a deal with another bidder.

Osisko has said Goldcorp’s offer, worth about $2.9 billion, doesn't adequately remunerate Osisko shareholders for the future potential for its mine in northwestern Quebec or risk Goldcorp's stock decline.

For more information go to www.osisko.com