Osisko Development Corp. (NYSE: ODV, TSXV: ODV)
("
Osisko Development" or the
"
Company") is pleased to announce the approval of
the BC Mines Act permits for its 100%-owned Cariboo Gold Project
("
Cariboo" or the "
Project")
located in central British Columbia ("
BC"),
Canada. The approval of these permits marks an important milestone
in enabling the Company to move forward with the construction and
operation of the underground Cariboo Gold Project.
"Receipt of the construction and operating
permits for the Cariboo Gold Project is a major milestone and
monumental achievement for Osisko Development and its stakeholders.
It is the culmination of almost five years of extensive discussion
and consultation with provincial regulators, Indigenous nations and
host communities in ensuring the Project becomes a model for
responsible mine development and environmental stewardship that
redefines mining for a better future," commented Sean
Roosen, Founder, Chairman and CEO.
"As permitting complexity and timelines increase
globally, BC's new environmental assessment and permitting
framework demonstrates the province's commitment to sustainable
mine development relying on a robust consultation process, on
predictable, legislated timelines, alongside a clear set of
information requirements. We commend all those involved in ensuring
the Cariboo Gold Project is successful in navigating this new
rigorous review process and in securing key permits for
construction and operation."
Lhtako Dené Nation Chief Clifford Lebrun
remarked, "The Cariboo Gold Project represents a
significant opportunity for Lhtako Dené Nation and we are pleased
that it has received its BC Mines Act Permits. The Mine and its
surrounding infrastructure is firmly located in our core
traditional territory, and we have been active participants at
every stage of the project from mineral exploration to the
Environmental Assessment and the BC Mines Act Permit. We look
forward to a sustainable and growing relationship with Osisko
Development as the project proceeds through to operation."
Honourable Jagrup Brar, British
Columbia’s Minister of Mining and Critical Minerals,
noted, "My congratulations to Osisko Development
Corporation for your hard work and collaboration with partners and
local communities in reaching this important milestone and
obtaining a permit for the Cariboo Gold mine. The first project
wholly assessed under the new 2018 Environmental Assessment Act,
Cariboo Gold is crucial for BC, creating good jobs and opening up
long-term opportunities for local businesses, communities, and
First Nations, all while adhering to top-tier environmental
protection."
With the key Project construction and operating
permits secured, and the remaining Environmental Management Act
permits referred to the Statutory Decision Maker of the Ministry of
Energy and Climate Solutions – with a decision expected shortly –
the Company is advancing discussions, which are active and ongoing,
on various funding options, including a comprehensive financing
package.
Progress continues on the ongoing bulk sample
and underground development in the Lowhee Zone alongside the
optimized feasibility study work, which are slated to be completed
in Q1 2025 and Q2 2025, respectively. Additionally, work advances
on other pre-construction activities, including on certain detailed
engineering and project execution work. Execution on these
milestones will play a crucial role in ongoing financing
discussions.
A formal positive final investment decision and
the engagement on a project financing package in the coming months
would allow for full-scale construction to commence in the second
half of 2025 with a targeted completion date at the end of
2027.
DEVELOPING A GENERATIONAL DISTRICT IN
THE CARIBOO REGION
The Cariboo Gold Project is estimated to operate
over an initial 12-year mine life, based on the 2023 Cariboo FS (as
defined herein), not including any potential future mine life
extensions from resource conversion or further exploration success.
Key highlights of the Project include:
- Gold production
of up to 223 thousand ounces ("koz") per annum
during peak operations and averaging 194 koz of gold per annum
during Phase 2 at 4,900 tonnes per day;
- Work is
advancing on an optimized feasibility study which is expected to be
completed in Q2 2025 (see Optimized Feasibility Study);
- Direct
employment of approximately 634 workers during the project
construction period and up to 488 employees during peak
steady-state operations, creating safe and empowering employment
for the community;
- Beyond direct
job creation, the Project's activities are anticipated to
contribute to significant economic development including the
creation of ancillary job opportunities among suppliers, various
sub-contractors and other groups within the local communities and
broader Cariboo region;
- Over the initial
12-year mine life, the Company anticipates investing C$588.4
million in initial and expansion capital costs and C$466.6 million
in sustaining capital costs, with the overwhelming majority to be
spent locally and in the province of BC;
- Access to the
predominantly green hydroelectric BC power grid provides
unparalleled opportunities to minimize the Project's carbon
footprint by deploying a largely electric equipment fleet, while
benefitting from favourable energy pricing at 6.6¢ per kWh
(CAD$);
- Low impact
mining from deploying ore sorter and roadheader technologies that
significantly reduce the carbon footprint by generating fewer waste
rock at lower energy intensity relative to other traditional mining
operations;
- Significant
exploration upside at depth with the current Mineral Reserves and
Resources only defined over an average depth of 350 meters from
surface, while considerable potential also exists on the broader
Cariboo property across a combined 83 km mineralized trend.
CARIBOO GOLD PROJECT
PERMITS
Following a robust and rigorous review process
by a dedicated Mine Review Committee, set up by the Major Mines
Office, the Company received or referred the following permits for
the Cariboo Gold Project:
- M-247 – Mines
Act permit for the Mine Site Complex and Bonanza Ledge
(received);
- M-198 – Mines
Act permit for the QR Mill (received);
- PE-111511 -
Environmental Management Act Permit for the Mine Site Complex
(referred);
- PE-12601 -
Environmental Management Act Permit for QR Mill
(referred); and
- PE-17876 -
Environmental Management Act Permit for Bonanza Ledge
(referred).
The Mines Act permits grant the Company the
ability to proceed with the construction, operation and reclamation
activities on each of the site boundaries, as outlined within the
scope of the Project. The Environmental Management Act permits
pertain to any Project-related discharge activities to the
environment, including water and air, and the framework and
limitations thereof, within the areas outside of the immediate mine
site boundaries.
Work is ongoing with the Ministry of Water, Land
and Resource Stewardship and the Ministry of Forests, which is
tracking well, on obtaining all necessary approvals for the
construction of the transmission line.
INDIGENOUS NATIONS
The Company is committed to advancing
collaborative partnerships with Indigenous nations related to the
Project as evidenced by years of extensive consultation and the
signing and ongoing implementation of the participation agreements
with each of the Lhtako Dené Nation in 2020 and the Williams Lake
First Nation in 2022. The Company is working towards an agreement
with the Xatśūll First Nation, with whom it continues to engage and
consult. This includes good faith and reasonable offers for
financial and other benefits along substantially similar frameworks
as those agreed to by Lhtako Dené Nation and Williams Lake First
Nation.
The Company is dedicated to developing a modern,
safe and sustainable operation at the Cariboo Gold Project, and
remains committed to engaging in constructive dialogue to ensure
all Indigenous nations and stakeholders benefit from the
development of the Project, whilst ensuring it remains viable.
OPTIMIZED FEASIBILITY STUDY
The Company is advancing work on an optimized
feasibility study ("OFS") for the Cariboo Gold
Project, which is anticipated to be completed in Q2 2025. The scope
of the OFS will take into account and include, among other things,
certain mining and processing flowsheet optimizations including
improvements to the flotation circuit, an accelerated development
timeline directly to 4,900 tonnes per day throughput, updated metal
price and foreign exchange assumptions, and updated operating and
capital cost estimates to reflect the current environment. The OFS
work follows the framework set out in the existing ongoing
permitting process.
BULK SAMPLE AND UNDERGROUND DEVELOPMENT
UPDATE
In Q1 2024, under an existing provincial permit,
the Company commenced an underground development drift from the
existing Cow Portal into the Cariboo Gold Project's mineral deposit
at the Lowhee Zone. The objective of the bulk sample work program
is to develop into the ore body and extract a 10,000 tonne bulk
sample of mineralized material for mining, ore sorting and
processing testing.
- For the
development of the underground drift the Company has been utilizing
a combination of continuous mining using a fully-electric Sandvik
roadheader, which has been performing favorably, and traditional
drilling and blasting.
- To date,
approximately 1,083 meters of development has been completed or
approximately 92%, with another 89 meters remaining to reach the
target area.
- The Company
anticipates completing the bulk sample program and release the
results thereof in Q1 2025.
Figure 1: Bulk sample location
and ramp progress (November 17, 2024).
Figure 2: Main decline ramp
overall view (left) and development of Lowhee top sill access for
stope extraction (right).
Figure 3: Visible sulfide
mineralization within the bulk sample stope area development.
Qualified Persons
The scientific and technical information
contained in this news release has been reviewed and approved by
Daniel Downton, P.Geo., Chief Resource Geologist of Osisko
Development, a "qualified person" within the meaning of National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
("NI 43-101").
Technical Reports
Information relating to the Cariboo Gold Project
and the current feasibility on the Cariboo Gold Project and the
assumptions, qualifications and limitations thereof is supported by
the technical report titled "Feasibility Study for the Cariboo Gold
Project, District of Well, British Columbia, Canada", dated January
10, 2023 (amended January 12, 2023) with an effective date of
December 30, 2022 prepared for the Company by independent
representatives BBA Engineering Ltd. and supported by independent
consulting firms, including InnovExplo Inc., SRK Consulting
(Canada) Inc., Golder Associates Ltd. (amalgamated with WSP Canada
Inc. on January 1, 2023, to form WSP Canada Inc.), WSP USA Inc.,
Falkirk Environmental Consultants Ltd., Klohn Crippen Berger Ltd.,
KCC Geoconsulting Inc., and JDS Energy & Mining Inc. (the "
2023 Cariboo FS"). Reference should be made to the
full text of the Cariboo Technical Report, which was prepared in
accordance with NI 43-101 and is available electronically on SEDAR+
(www.sedarplus.ca) and on EDGAR (www.sec.gov) under Osisko
Development's issuer profile and on the Company's website at
www.osiskodev.com.
ABOUT OSISKO
DEVELOPMENT CORP.
Osisko Development Corp. is a North American
gold development company focused on past-producing mining camps
located in mining friendly jurisdictions with district scale
potential. The Company's objective is to become an intermediate
gold producer by advancing its 100%-owned Cariboo Gold Project,
located in central B.C., Canada, the Tintic Project in the historic
East Tintic mining district in Utah, U.S.A., and the San Antonio
Gold Project in Sonora, Mexico. In addition to considerable
brownfield exploration potential of these properties, that benefit
from significant historical mining data, existing infrastructure
and access to skilled labour, the Company's project pipeline is
complemented by other prospective exploration properties. The
Company's strategy is to develop attractive, long-life, socially
and environmentally sustainable mining assets, while minimizing
exposure to development risk and growing mineral resources.
For further information, visit our website at
www.osiskodev.com or contact:
Sean Roosen |
Philip Rabenok |
Chairman and CEO |
Director, Investor Relations |
Email: sroosen@osiskodev.com |
Email: prabenok@osiskodev.com |
Tel: +1 (514) 940-0685 |
Tel: +1 (437) 423-3644 |
|
|
CAUTION REGARDING FORWARD LOOKING
STATEMENTS
Certain statements contained in this news
release may be deemed "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and "forward-looking information" within the meaning of
applicable Canadian securities legislation (together,
"forward-looking statements"). These forward-looking statements, by
their nature, require Osisko Development to make certain
assumptions and necessarily involve known and unknown risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in these forward-looking
statements. Forward-looking statements are not guarantees of
performance. Words such as "may", "will", "would", "could",
"expect", "believe", "plan", "anticipate", "intend", "estimate",
"continue", or the negative or comparable terminology, as well as
terms usually used in the future and the conditional, are intended
to identify forward-looking statements. Information contained in
forward-looking statements is based upon certain material
assumptions that were applied in drawing a conclusion or making a
forecast or projection, including the assumptions, qualifications
and limitations relating to the significance of regional
exploration potential; the ability of the Company to complete the
OFS and the scope, results and timing of thereof; progress in
respect of pre-construction activities at Cariboo; the potential
for unknown mineralized structures to extend existing zones of
mineralization; category conversion; the timing and status of
permitting; future consultation efforts between Osisko Development
and Xatśūll First Nation; the future development and operations at
the Cariboo Gold Project; the results of ongoing stakeholder
engagement; the capital resources available to the Company; the
ability of the Company to execute its planned activities, including
as a result of its ability to seek additional funding; the ability
of the Company to obtain future financing and the terms of such
financing including a fully-funded solution for the Cariboo Gold
Project; management's perceptions of historical trends, current
conditions and expected future developments; the ability and timing
for Cariboo to reach commercial production (if at all);
sustainability and environmental impacts of operations at the
Company's properties; the results (if any) of further exploration
work to define and expand mineral resources; the ability of
exploration work (including drilling) to accurately predict
mineralization; the ability of the Company to expand mineral
resources beyond current mineral resource estimates; the ability of
the Company to complete its exploration and development objectives
for its projects in the timing contemplated and within expected
costs (if at all); the ability and timing for Cariboo to reach
commercial production (if at all); the ability to adapt to changes
in gold prices, estimates of costs, estimates of planned
exploration and development expenditures; the ability of the
Company to obtain further capital on reasonable terms; the
profitability (if at all) of the Company's operations; as well as
other considerations that are believed to be appropriate in the
circumstances, and any other information herein that is not a
historical fact may be "forward looking information". Material
assumptions also include, management's perceptions of historical
trends, management's understanding of the permitting process and
status thereof, the ability of exploration (including drilling and
chip sampling assays, and face sampling) to accurately predict
mineralization, budget constraints and access to capital on terms
acceptable to the Company, current conditions and expected future
developments, regulatory framework remaining defined and
understood, results of further exploration work to define or expand
any mineral resources, as well as other considerations that are
believed to be appropriate in the circumstances. Osisko Development
considers its assumptions to be reasonable based on information
currently available, but cautions the reader that their assumptions
regarding future events, many of which are beyond the control of
Osisko Development, may ultimately prove to be incorrect since they
are subject to risks and uncertainties that affect Osisko
Development and its business. Such risks and uncertainties include,
among others, risks relating to third-party approvals, including
the issuance of permits by the government, capital market
conditions and the Company's ability to access capital on terms
acceptable to the Company for the contemplated exploration and
development at the Company's properties; the ability to continue
current operations and exploration; regulatory framework and
presence of laws and regulations that may impose restrictions on
mining; the ability of exploration activities (including drill
results and chip sampling, and face sampling results) to accurately
predict mineralization; errors in management's geological
modelling; the timing and ability of the Company to obtain required
approvals and permits; the results of exploration activities; risks
relating to exploration, development and mining activities; the
global economic climate; metal and commodity prices; fluctuations
in the currency markets; dilution; environmental risks; and
community, non-governmental and governmental actions and the impact
of stakeholder actions. Osisko Development is confident a robust
consultation process was followed in relation to its received BC
Mines Act permits for the Cariboo Gold Project and continues to
actively consult and engage with Indigenous nations and
stakeholders. While any party may seek to have the decision related
to the BC Mines Act permits reviewed by the courts, the Company
does not expect that such a review will impact its ability to
proceed with the construction and operation of the Cariboo Gold
Project in accordance with the approved BC Mines Act permits.
Readers are urged to consult the disclosure provided under the
heading "Risk Factors" in the Company's annual information form for
the year ended December 31, 2023 as well as the financial
statements and MD&A for the year ended December 31, 2023, which
have been filed on SEDAR+ (www.sedarplus.ca) under Osisko
Development's issuer profile and on the SEC's EDGAR website
(www.sec.gov), for further information regarding the risks and
other factors facing the Company, its business and operations.
Although the Company's believes the expectations conveyed by the
forward-looking statements are reasonable based on information
available as of the date hereof, no assurances can be given as to
future results, levels of activity and achievements. The Company
disclaims any obligation to update any forward-looking statements,
whether as a result of new information, future events or results or
otherwise, except as required by law. Forward-looking statements
are not guarantees of performance and there can be no assurance
that these forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release. No stock exchange,
securities commission or other regulatory authority has approved or
disapproved the information contained herein.
Photos accompanying this announcement are available
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