Osisko Mining Corp. (TSE:OSK), a Canadian gold miner, rose in mid-day trading after reporting higher gold production in the first quarter.
Osisko gained 1.1 percent to C$7.32 at 2:09 p.m. in Toronto, stretching this year's rally to 55.4 percent.
Osisko's flagship Canadian Malartic mine produced a companywide record of 140,029 ounces of gold in the first quarter, the Montreal, Quebec–based company said in a statement today.
Osisko said it ended the current quarter with an estimated $258 million of cash resources1 on hand.
Canadian Malartic has proven-and-probable in-pit reserves of 9.37 million ounces, with a mine life of 14.2 years based on a 55,000 ton per day milling rate.
Average gold production is forecast at 610,000 ounces per year over the next five years through 2018 at cash costs of $516 per ounce, with an average of 597,000 ounces per year gold production over life of mine at cash costs of $525 per ounce.
The mine is expected to have an average head grade of 1.09 gram per ton of gold over the next five years, and 1.03 gram per ton of gold over the mine life, with average metallurgical recovery of 89.2 percent over the mine life.
Separately, Chief Executive Officer Sean Roosen told Reuters today that it will be tough for Goldcorp Inc. (TSE:G) to raise its bid for Osisko by enough to trump a rival deal, and it is more likely that the gold producer will walk away from the transaction.
Vancouver-based Goldcorp, the world's second-biggest gold miner by market value, in January launched a hostile C$2.6 billion cash and stock bid for Osisko to gain control of its Malartic mine. Osisko has rejected the bid as too low.
