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A sign welcomes visitors to the town of Malartic, Que., where Osisko owns an open-pit gold mine.
A sign welcomes visitors to the town of Malartic, Que., where Osisko owns an open-pit gold mine.
(John Morstad For The Globe and Mail)

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The skeptic's take on Osisko’s bid for Queenston

There are two ways to interpret Osisko Mining Corp.’s acquisition of Queenston Mining for $550-million.

You could sit back and assume that Osisko’s flagship Canadian Malartic operation is ramping up quickly and will soon be operating at full capacity, giving the miner the flexibility to go out and acquire medium-to-long-term production. Or you could wonder if Osisko is worried about the low-grade gold coming out of Malartic and speculate that the miner has realized it must add higher-grade deposits in order to get a premium valuation.