Windfall Project. Site Visit Presentation

Transcription

1 Windfall Project Site Visit Presentation August

2 FORWARD-LOOKING STATEMENTS This presentation (the "Presentation") contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this Presentation. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are notstatements ofhistorical fact and may be forward-looking statements. In this Presentation, forward-looking statements relate, among other things, to information about current expectations on the timing and impact of the financing announced by Osisko Mining Inc. ( Osisko ) on June 27, 2016 (the Financing ); the financial condition and anticipated market capitalization of Osisko following the Financing; the pro-forma capitalization and ownership of Osisko following the Financing; the timing and receipt of required stock exchange and regulatory approvals of the Financing; the timing and success of exploration, development and metallurgical testing activities; the timing, extent and success of mining operations (if any), project development and related permitting; the results of exploration programs; the results of economic analyses (including the Windfall Lake PEA as defined below); the ability to expand mineral resources beyond current mineral resource estimates; opportunities for growth of mineral projects; estimates of gold prices; the ability to adapt to changes in gold prices; estimates of costs, estimates of planned exploration and development expenditures and estimates of mine development and construction. This forward-looking information entails various risks and uncertainties that are based on current expectations and actual results may differ materially from those contained in such information. These uncertainties and risks include, but are not limited to, fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in international, national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to properties. Risks and uncertainties about Osisko's business and the business of NioGold are more fully discussed in each entity's disclosure materials filed with the securities regulatory authorities in Canada and available on SEDAR under the applicable issuer profile at Readers are urged to read these materials and should not place undue reliance on any forward looking statement and information contained in this Presentation. Except as required by law, Osisko assume no obligation to update the forward looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law. The distribution of the common shares in the capital of Osisko (the "Osisko Shares") in connection with the Financing will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") and the Osisko Shares may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This Presentation shall not constitute an offer to sell or the solicitation of an offer to buy the Osisko Shares, nor shall there be any offer or sale of the Osisko Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful. 2

3 CAUTIONARY STATEMENTS REGARDING TECHNICAL INFORMATION MINERAL RESOURCES This Presentation contains information regarding mineral resources estimated at the projects of the companies referenced herein. Mineral resources are not mineral reserves and do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing or other relevant issues. In particular, the quantity and grade of reported inferred mineral resources in the estimates referenced in this Presentation are uncertain in nature and there is insufficient exploration to define these inferred mineral resources as an indicated or measured mineral resource in all cases. It is uncertain in all cases whether further exploration will result in upgrading the inferred mineral resources to an indicated or measured mineral resource category. For details regarding the key assumptions, parameters and methods used to estimate the mineral resources presented in respect of the Windfall Lake project, please see the "Technical Report for the Windfall Lake Gold Project, Québec" dated April 17, 2014 (effective date March 3, 2014) filed on SEDAR under the issuer profile of Eagle Hill Exploration Corporation at Please note that the Windfall Lake PEA (as defined below) is based on a mineral resource estimate with an effective date of November 13, For details regarding the key assumptions, parameters and methods used to estimate the mineral resources presented in respect of the Golden bear project, please see the "Technical Report for the Golden Bear Project, Ontario" dated March 3, 2014 (effective December 30, 2013) filed on SEDAR under the issuer profile of Northern Gold Mining Inc. at For the key assumptions, parameters and methods used to estimate the mineral resources presented in respect of the Marban project, please see the "Details regarding Technical Report for the Marban project Marban block property, Ontario" dated August 15, 2013 (effective date June 1, 2013) filed on SEDAR under the issuer profile of NioGold at PRELIMINARY ECONOMIC ASSESSMENT The preliminary economic assessment of the Windfall Lake project (the "Windfall Lake PEA") is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Windfall Lake PEA will be realized. Qualified Person The technical information contained in this Presentation has been reviewed and approved by Gernot Wober B. Sc., P. Geo., a Qualified Person within the meaning of National Instrument Standards for Disclosure of Mineral Projects. 3

4 ON QC Osisko Mining s Abitibi Projects Detour Lake Mine 3.60 M 1.26 g/t Au (Proven) 10.77M 0.95 g/t Au (Probable) WINDFALL Casa-Berardi District 330, g/t Au (M) 1,016, g/t Au (Ind) Estrades Mine (Polymetallic Mine) Vezza 37, g/t Au (M) 251, g/t Au (Ind) 750, g/t Au (ind) 860,000 Au g/t (inf) GARRISON 520,000 Au (M) 680,000 Au (ind) Holloway & Holt Mine 35, g/t Au (M) 419, g/t Au (Ind) Poirier Mine 2.22 %Cu URBAN BARRY (Brown field exploration) 810,000 Au (inf) Desantis FALCO RESOURCES Bousquet 946, g/t Au (Ind) MARBAN (1) 360, g/t Au (M) 1,120, g/t Au (Ind) 130,000 oz@ 1.15 g/t Au (Inf) SOUART BONTERRA METALS CREEK Timmins: Larder Lake 71M Oz Au 43, g/t Kirkland Lake Au (Ind) 24M Oz Au Matachewan 847,000 g/t Au (M) 652,000 g/t Au (Ind) Rouyn-Noranda 19M oz Au Val-d'Or 15.5 M oz Au 100,000 oz Au (historical) 100% Osisko Juby Deposit 1.09M 1.28g/t Au (Ind) CATHARINE Green field DDH Canadian Malartic 1,688, g/t Au (M) 7,344, g/t Au (Ind) Osisko Investments Current Resources Past production See Appendix "A" for full disclosure on mineral resources. See also "Cautionary Statements Regarding Technical Information Mineral Resources". Note: Resources shown consider all categories. (1) Cut-off grade of 0.40 g/t Au and average strip ratio of 6.29 (excluding overburden). Undiluted resource estimates within US$

5 Windfall Project Overview WINDFALL LAKE PROPERTY (100% INTEREST) 12,400 ha comprising 285 mineral claims in the Abitibi mineralized belt Located within the region covered by Québec's Plan Nord A PEA study was recently completed with the following parameters (1) : 1,200 tpd underground mine producing 106koz/year average gold production through an existing ramp 7.8 year mine life 8.26 g/t head grade Preliminary metallurgical tests of 95.7% gold recovery using flotation and leaching LOM total gold production of 828koz Au C$558/oz total life-of-mine average cash costs Average mining cost of $76/t C$240.6MM development capital C$241.4 MM NPV (5%) on a pre-tax basis C$135.2MM NPV (5%) on a post-tax basis 3.4 years pay back on a pre-tax basis Engineering studies commencing WINDFALL LAKE PROPERTY CLAIM OWNERSHIP Osisko Mining BonTerra Resource Inc. Beaufield Resource Inc. Metanor Resources Inc. Urbana Corp. All other companies MAIN ZONE A- A' SOUART 100,000 oz Au NON PLAN VIEW MAIN ZONE N F-11 Portal F-17 LEGEND GRADE DOMAINS ABOVE RED DOG GRADE DOMAINS BELOW RED DOG HIGH-GRADE CRUSTIFORM VEINS PYRITE STOCKWORK ABOVE 3 G/T GOLD EXISTING RAMP F See "Cautionary Statements Regarding Technical Information Preliminary Economic Assessment" and the news release dated April 28, 2015 of Eagle Hill Exploration Corporation available on SEDAR under the issuer profile of Eagle Hill Exploration Corporation at 5

6 Shell Kerr-Addisson DeMontigny DeMontigny Murgor Freewest Alto Aur Resources Inmet Min. Res nat du Quebec Fury Murgor Noront Eagle Hill Exploration Eagle Hill Exploration Eagle Hill Exploration Eagle Hill Exploration Eagle Hill Exploration Eagle Hill Exploration Osisko Mining Inc. Osisko Mining Inc. Drilling (Km) Gold (oz) Meters Drilled vs Resource Size 400 1,800, ,600, ,400, , ,000 1,200, , , , , , , , ,000 1,000, , , , , Windfall Exploration by Year and Company Indicated Resources Au oz Inferred Resources Au oz Completed and Planned Drilling (Km) 6

7 Windfall Lake Regional Geology Urban Barry Greenstone Belt 7

8 27 Zone Longitudinal Section 400m -400 m

9 27 Zone Longitudinal Section RAMP 400m

10 Caribou Zone Longitudinal Section LONGITUDINAL SECTION CARIBOU ZONE BEFORE OSISKO DRILL HOLES 100m

11 Caribou Zone Longitudinal Section LONGITUDINAL SECTION CARIBOU ZONE WITH OSISKO DRILL HOLES 100m

12 Vertical Longitudinal Section FW-3 Zone Below Red Dog Looking NNW August, 2016 N240 o N060 o 400 m Ramp Projected contour of Zone 27 (150 m to the South) NOT m Legend Drillhole trace g/t Au horizontal meter Intersection in splay of FW increase in size g/t 2.5 m g/t 5.2 m g/t 3.3 m m 400m EAG EAG NSR OSK Pending Assays OSK NSR m Lens FW-3 from Nov 2014 Mineral Resource 5.3 g/t 1.2 m 8.3g/t 0.6 m

13 Vertical Longitudinal Section FW-3 Zone Below Red Dog Looking NNW August,

14 Near Deposit Exploration New Zones are Targeted

15 Dominant Mineralization Style Pyrite stockwork forms large goldbearing lenses up to 32 metres thick Average grade approx. 10 g/t over 5 m Strong silica - sericite alteration with tourmaline Tm Dominant pyrite sulphide system Gold found around grains of pyrite, in the cracks of pyrite, or as free grains Minor amounts of chalcopyrite and tetrahedrite (Cu) sphalerite (Zn) pyrrhotite (Fe) arsenopyrite (As) bismuth sulfosalts (Bi) 15

16 Types of Mineralization Large Pyrite Stockwork ENE-trending Shear Zones Caribou Zone g/t Au Zone F g/t Au Crustiformcolloform veins Tension quartz-carbonate veins Vein 466: g/t gold over 12.4 m Sample from ramp in Zone F-11 16

17 Gold Mineralization Associated with Porphyry Dykes SMALL QUARTZ EYE PORPHYRY / FRAGMENTAL LARGE QUARTZ EYE PORPHYRY RED DOG Postmineral EAG (452 m) 3 Main Types of Dykes EAG (897 m) EAG (269 m) 17

18 Geochemistry Porphyry Dykes vs Volcanic Flows Ratio Zr/Y: Volcanic Rocks < 5 Tholeiitic Red Dog - Porphyries 5-15 Calc-alkalic to Alk. TiO2 (%) Mafic Volcanics Intermediate Volcanics Porphyries Intermediate to Felsic Rocks with Different Nb values Felsic Volcanics Felsic volcanics: 2718 Ma Porphyry dykes (Barry): 2697 Ma Zr (ppm) 18

19 Relationship between mineralization and porphyry dykes Early Pyrite Mineralization in Volcanics Cross-cut by Porphyry Dykes Mineralized Fragments in porphyry dykes Dyke Contact Mineralized Rhyolite EAG ( m) Photo courtesy of JFR at SRK Consulting 19

20 Relationship between mineralization and porphyry dykes Porphyry Dykes Cross-cut by Pyrite Mineralization Frg Qtz Qtz Photo courtesy of JFR at SRK Consulting Multiple Pulses of Pyrite Mineralization Majority of the gold mineralization associated with the large quartz eye porphyry dykes 20

21 Sequence of Events 21 Ma difference between volcanism and porphyry dykes / gold Similar to other mining camps (e.g. Val d Or) 21

22 Advanced Exploration At Windfall Exploration and Geology Infill Drill Program includes 40,740 metres of drilling within the deposit above Red Dog Intrusion. Holes are spaced 25 to 30 metres targeting resource conversions and discovery of new zones. Expansion Drilling Program targeting deposit beneath the Red Dog Intrusion includes 25,760 metres targeting resource growth Pre-Engineering Programs Baseline Environmental Study Ongoing Gold Deportment Study (Start Q2/16) Resource Update (Start Q4/2016) Metallurgical Program (Start Q4/16) Geological Model Revision: Core relogged and sections drawn to reflect the geological controls on mineralization and provide geological wireframes for resource estimation. Expect higher confidence resource model to result. Currently have 4 drills working on infill. Plan to expand camp and speed completion of drilling programs. Present budget is for 100,500M drilling. >70,000m completed 22

23 Osisko Claim Position Urban Barry 76 km Main Zone 20 km 23

24 APPENDIX "A"

25 Mineral Resources (1) CATEGORY TONNES (MT) AU GRADE (G/T) AU (M OZ) MEASURED MARBAN (2) GARRISON INDICATED MARBAN (2) WINDFALL GARRISON TOTAL M&I MARBAN (2) WINDFALL GARRISON INFERRED MARBAN (2) WINDFALL GARRISON See "Cautionary Statements Regarding Technical Information Mineral Resources". 2. Global mineral inventories are not pit-constrained Note: Inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Mineral resources are not mineral reserves and do not have demonstrated economic viability. 25

26 Windfall Area Work History Windfall Work History Year Company or Individual Work Completed Drilling # metres Drilling # Holes # Extended Holes or Wedges 1943 Milner (GSC) Geological Mapping 1946 Fairbairn (GSC) Geological Mapping 1947 Graham (GSC) Geological Mapping 1975 to 1977 Shell Airborne electromagnetic, prospecting, geological mapping, drilling Ministere des Ressources naturelles du Quebec Airborne electromagnetic 1986 Kerr-Addisson Airborne electromagnetic, drilling DeMontigny Line cutting, ground electromagnetic, geological mapping, drilling 1, DeMontigny drilling 1, Murgor Discovery of gold showing in Barry Township 1995 Freewest staking, drilling to 1997 Murgor/Freewest Line cutting, ground mag, induced polarization, prospecting, trenching, discovery of Debris showing (72 g/t Au over 1.0m) 1997 Alto drilling to 1998 Alto/Noront Line cutting, ground mag, induced polarization, prospecting, MaxMin II, discovery of Alto showing (9.3 g/t Au over 1.7m) 1998 Aur Resources 1, to 1999 Inmet Line cutting, deeo electromagnetic survey, geological mapping, drilling (27.5 g/t Au over 4.3m) 9, Ministere des Ressources naturelles du Quebec geological mapping, sampling, geochronology 2003 to 2004 Fury compilation, line cutting, drilling (85.9 g/t Au over 5.4m) 7, to 2006 Murgor 41 trenches, seven induced polarization surveys (336.8 line-km) and one transient electromagnetic survey (51 line-km), trenching of discovery of the F-17, F-51, and F-11 gold zones (17.8 g/t Au over 15, m),drilling 2004 to 2009 Noront trenching, mapping, diamond drilling, underground exploration ramp and drifts (1,202m of ramp and 233m cross cuts and drifts) ( , g/t Au over 12.0m) 2010 Eagle Hill Exploration drilling 17, Eagle Hill Exploration drilling 23, Eagle Hill Exploration drilling 42, Eagle Hill Exploration drilling 32, Eagle Hill Exploration drilling 5, Oban Mining Corp drilling 9, Oban Mining Corp drilling, airborne mag & EM, trenching, regional exploration 44, Osisko Mining Inc. to end July drilling, trenching, regional exploration 12, Totals: 261,