August 10, 2010 / 9:23 PM / 7 years ago

UPDATE 1-Osisko reports net loss on higher costs

* Q2 loss C$0.02/shr vs analyst forecast C$0.01/shr loss

* Relocation for Malartic mine near completion

TORONTO, Aug 10 (Reuters) - Osisko Mining Corp (OSK.TO) reported a higher quarterly loss on Tuesday because of increased costs as it pushed forward with its massive Malartic open pit gold mine.

The Canadian miner posted a loss of C$8.4 million, or 2 Canadian cents a share, in the quarter ended June 30, compared with a year-before loss of C$5.8 million, or 2 Canadian cents per share.

Analysts polled by Thomson Reuters I/B/E/S had expected, on average, a loss of 1 Canadian cent a share.

Osisko is in the process of developing the Malartic property in a mineral-rich region of northwestern Quebec. It will be Canada’s largest open pit gold mine.

The company has spent C$619.1 million on the project so far, with another C$204.8 million committed.

To build the mine, Osisko had to relocate part of the town of Malartic, which sits on top of the gold deposit. A single homeowner who had refused to leave his residence was evicted by expropriation order yesterday, according to media reports.

Osisko also recently acquired a 77 percent interest in Brett Resources Inc BBR.V for its Hammond Reef deposit, in an effort to become a 1 million ounce per year gold producer by 2016.

Osisko’s shares closed up 1.24 percent at C$13.88 on Tuesday on the Toronto Stock Exchange.

$1.00=$1.03 Canadian Reporting by Julie Gordon; editing by Rob Wilson

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