Monday was a landmark day for mining in Canada, as Osisko Mining Corp. opened the biggest gold mine in the country. A huge opening ceremony was held at the Canadian Malartic mine site in northwest Quebec.

John Hayes, an analyst at BMO Capital Markets, wrote that the opening affirms a broader fact: that the Canadian mining industry has the ability to build huge projects and companies from scratch. Osisko did not even begin exploration at the site until 2005, at which time it was a penny stock.

“This has been the only commissioning of a major gold mine in recent history in Canada, not to mention the only one built by what was once a ‘junior’ company,” Mr. Hayes wrote in a note.

He praised Osisko specifically, noting that it kept full control over the project through construction and commissioning. That allowed it to build the Canadian Malartic mine in just 20 months.

He also pointed out that the company had key external ingredients for success, including a stable and supportive government and a local community that understands mining (which is particularly important when you need to move houses to build the mine). It goes without saying that Canadian miners running into trouble in countries like Tanzania and Guatemala do not enjoy such benefits.

Mr. Hayes has an Outperform rating on Osisko shares and a price target of $18.00.

http://business.financialpost.com/2011/05/31/osisko-proof-that-canadian-mining-industry-works/