Page 61 Page 60 By Gregory Reynolds Osisko Mining Corporation has big plans for its newly acquired portfolio of mining properties in the historic Kirkland Lake Gold Camp. As of Dec.28, 2012 Osisko took over Queenston Mining, thereby getting its hands on 10 known gold depos - its. Under the terms of the friendly Arrangement, each former Queen - ston shareholder is entitled to receive 0.61 1 of an Osisko common share for each Queenston common share. Osisko says its “primary focus is in Gauthier T ownship where the com - pany is advancing fve of its 100% owned gold properties (Upper Bea - ver , McBean-Anoki, Bidgood, Amal - gamated Kirkland and Upper Canada) towards production. The goal is to outline a mineral re - source of eight million ounces of gold to feed a central milling facility to be constructed on the Upper Canada site.” T o that end, Osisko plans to spend $90 million on exploration and devel - opment in 2013-14. “W e are very pleased to have conclud - ed the transaction and to move into the prolifc Kirkland Lake Gold Camp,” commented Sean Roosen, president and CEO of Osisko on Dec.28. Queenston’ s assets includ ed six 100%-owned gold deposits, all with NI 43-101 compliant mineral resourc - es and ongoing exploration and devel - opment. The objective of Queenston had been to advance the fagship Up - per Beaver project towards feasibility and production. Osisko’ s focus at Upper Beaver for 2013-2014 will be on the develop - ment of the 1,300 metre exploration shaft, includin g engineering , design and fabrication of the head frame and hoisting facilities budgeted at $70 million. The shaft colla r has now been estab - lished to a depth of 26 metres and exploration on the deposit continues with six drills. In addition to the de - velopment program at Upper Beaver , the company has budgeted an addi - tional $20 million for 2013 explora - tion at Kirkland Lake. An updated mineral resource for Up - per Beaver was announced on Sep - tember 2012, increasing the indicated resource by 1 12% to 6,870,000 t av - eraging 6.6 g/t Au (1,461,000 oz) and 0.37% Cu (56 M lbs), and increas - ing the inferred resource by 16% to 4,570,000 t averaging 4.9 g/t Au (712,000 oz) and 0.32% Cu (32 M lbs). Osisko’ s resolve was strengthened when it was able to announce on March 21 that new drilling at the Up - per Beaver led to the discovery of two new gold-copper zones. The following intersections highlight high-grade results from the two new discoveries: •East Basalt Zone Discovery: 9.3 g/t Au with 1.7% Cu over 18.1 me - tres (hole UB13-284) and 2.2 g/t Au with 0.5% Cu over 17.8 metres (hole UB13-287); •North Q Zone Discovery: 1 1.0 g/t Au with 1.6% Cu over 2.0 metres (hole UB13-282); Osisko is famous for having moved an entire Quebec communit y to de - velop its open pit mine, the Canadian Malartic. For the year of 2012, its frst full year of operations, the company generated net earnings of $78.4 million ($0.20 per share) compared to net earnings of $18 million ($0.05 per share) in the previous year . Malartic, the compa - ny’ s fagship asset, reached commer - cial production on May 19, 201 1. Mine production was, 388,478 ounces at an average cash cost of $909 per ounce for 2012. Roosen commented on the results: “Despite the various challenges that we faced, we gener - ated cash from mine operations of $305.6 million, which clearly demon - strates the strength of Canadian Ma - lartic. The past year had its challenges as we continue d ramping up Canadian Malartic to its nameplate capacity . In the fourth quarter we were af fected by dela ys in executing a major blast over old under ground mine workings which reduced our operating fex - ibility and impacted our mini ng plan. W e anticipate Canadian Malartic will generate improved and strong cash fow once the ramp up phase is com - pleted later this year .” From 1910 to 1999 the Kirkland Lake Camp produced 37.3 million oz. of gold from 25 mines and collectively mined 100 mil lion tonnes at a recov - ered grade of 12.74 g/t. The camp ranks second in Canada, after T im - mins, with respect to total ounces of gold produced. Osisko, through the Queenston ac - quisition, maintains the lar gest land holdings in the Kirkland Lake Mining District of over 30 properties most of which are contiguous covering an area approximately 240 square kilometers. The properties host 10 gold deposits that contain current and historic min - eral resources. The acquisition of the Hammond Reef Project in 2010, an advanced-stage exploration project west of Thunder Bay , Ontario, and the acquisition of Queenston in 2012 provide Osisko with the potential to become an im - portant mid-tie r producer by 2016, it says. Osisko’ s big plans for K. L. include in 2013-14 spending $90 million