When you think of Osisko Mining Corp., you're bound to recall the Malartic Mine in Quebec. It's been the miner's baby for years.
But now that the project is up and running, Osisko is looking for ways to expand. This year alone its spending $60-million to explore the potential at its Hammond Reef project in Ontario.
The miner is also looking at even broader options. On Tuesday, Osisko announced a land acquisition in Mexico after identifying what it calls a "large gold anomaly."
Osisko started an exploration program about one year ago, and is happy enough with its findings in Mexico to scoop up one million hectares in what it believes is an "emerging gold rich" mineral belt.
Financial terms of the deal weren't disclosed, and the exploration program on the property is in extremely early stages. But it's interesting to hear talk about the promise of assets outside of Canada.
Back in Quebec, Osisko pumped out record volumes at its flagship Malartic project in September, churning out 39,005 ounces. However, costs have been a problem for the miner and last quarter cash costs totaled $1,004 per ounce.
With Malartic up and running, Osisko has placed more emphasis on its second major asset, the Hammond Reef project. The feasibility study for this project is expected to be released later this year with permitting to come in 2013. Should management proceed with that project, production wouldn't start for a number of years.