May 10, 2012 / 10:59 PM / in 6 years

UPDATE 1-Osisko posts profit as Malartic mine ramps up

TORONTO, May 10 (Reuters) - Osisko Mining Corp reported a profit on Thursday as it ramped up production at its Canadian Malartic gold mine, but a fire that broke out there Wednesday night shut down operations.

The miner said it is likely to trim its production forecast partly due to the fire, which has disrupted milling operations at the Quebec site.

Earlier on Thursday, the fledgling miner announced that a fire had forced it to curtail operations at Malartic - its only operating mine that went into commercial production last year. Although mining at the site will continue, milling operations are likely to be affected for two to three weeks, the company said.

Montreal-based Osisko said net income in the first-quarter came in at C$29.4 million, or 8 Canadian cents a share, compared with a year-earlier loss of C$5.3 million, or 1 Canadian cent.

Although modifications on a new crusher at the site are progressing slower than expected, Malartic - already one of Canada’s largest gold mines - produced 91,178 ounces of gold in the quarter, the company said.

“Management is currently reviewing production guidance in light of delays in ramp up and assessment of this morning’s fire,” the company said.

Osisko had forecast gold production of between 610,000 and 670,000 ounces earlier this year.

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