KIRKLAND LAKE - Osisko Mining has made a new discovery that it says confirms the potential for a potential large tonnage gold deposit east of Kirkland Lake.

Calling the new discovery Canadian Kirkland Zone, the company says it consists of a previously unreported type of mineralization in the Kirkland Lake Camp. The new zone is about 750 metres south of Highway 66 and about 6.5 kilometres southeast of King Kirkland.

Osisko describes the mineralization as being fine disseminated gold and pyrite in a pinkish-gray to brick red altered zone that completely replaces volcanic tuffs.

Some of the significant assays from the new zone include; 128.4 metres returning 2.26 grams gold per tonne, 63 metres of 1.43 grams per tonne, 101 metres of 0.99 grams per tonne and 26 metres of 1.66 grams gold per tonne.

“This is the first of what we expect could be one of many discoveries made using our bulk tonnage model in the Kirkland Camp,” said Sean Roosen, President and CEO of Osisko. “The discovery was based on compilation work and our 2013 exploration work in the camp, the first time Kirkland has seen a district wide approach to identify bulk tonnage targets.”

The company notes that outcroping is very poor in the area of the Canadian Kirkland Zone. However the same type of mineralization occurs 1,200 metres northwest of this zone along Highway 66. The mineralization is found in road cuts stretching over about 300 metres. These road showing are in the historic Commodore Kirkland Zone. Surface grab samples taken in the summer of 2013 returned an average grade of 1.32 grams gold per tonne.

Osisko believes the poorly exposed but broad distribution of this new type of mineralization leaves open the potential for a large, disseminated bulk tonnage gold deposit on the Kirkland Lake property, which would compliment known deposits such as the Upper Beaver and Upper Canada.

With the new discovery, Osisko will immediately implement a broad-scale drill program to test an area measuring 2,3000 by 1,3000 meters that covers the Canadian Kirkland and Commodore Kirkland zones, as well as other drilled zones in the immediate area that have been historically associated with pink 'syenites' and 'trachytes', currently being interpreted as being part of the same felsite hydrothermal system.

The first priority of Osisko's drill program is to drill three north-south cross-sections located in the middle of the area of interest (north of Canadian Kirkland), between the Commodore Kirkland and 180 zones to the west, and between the Esker and 240 zones at the eastern extremity of the area of interest. The drill stations will be 200 metres apart and drill results will be disclosed as they become available.