Osisko launches 70,000-metre drill program at B.C. gold mine
Osisko Development Corp. [ODV-TSXV] said Monday it has launched a multi-faceted full-funded 70,000-metre exploration drilling campaign targeting new discoveries at its 100%-owned Cariboo Gold project in central British Columbia.
“We’re keen to launch a solid exploration program at the Cariboo project that will have multiple exploration drill rigs operating through the end of 2026 across Prosperine, Barkerville Mountain, Cariboo Deep and other regional exploration targets,’’ said Osisko President Chris Lodder. “Importantly many of these prospects are within a stone’s throw of the existing Cariboo deposit and exploration below the existing Cariboo deposit offers an opportunity to set the stage of potential resource growth at depth beyond currently defined mineral resources within the permitted footprint.’’
On Monday, Osisko Development shares eased 0.8% or $0.04 to $4.98. The shares are currently trading in a 52-week range of $5.44 and $1.64.
The announcement comes after Osisko recently closed an oversubscribed private placement offering of 15.4 million common shares that has raised $82.5 million. The company said it intends to use the net proceeds to contribute to the capital required to construct the Cariboo Gold Project and related pre-construction activities.
Osisko is a continental North American gold development company with a focus on past-producing mining camps located in friendly jurisdictions with district scale potential. The company aims to become an intermediate gold producer by advancing its flagship permitted 100%-owned Cariboo Gold Project. Its project pipeline is complemented by the Tintic Project in the historic East Tintic mining district in Utah, and the San Antonio Gold Project in Sonora, Mexico.
The Cariboo project is located in the historic Wells-Barkerville mining camp and consists of three different sites, including the Mine Site Complex near the District of Wells, the Bonanza Ledge site and the QR Mill.
Probable mineral reserves currently stand at 2.07 million ounces of contained gold (17.8 million tonnes of grade 3.62 g/t gold). On top of that is an indicated resource of 1.6 million ounces, plus an inferred resource of 1.86 million ounces.
Back in January, 2023, Osisko released the results of a feasibility study for the Cariboo gold project.
The company said the study outlines a robust and scalable phased development base case with low initial capital intensity of $137.3 million and attractive operating costs for underground development, producing 1.87 million ounces of gold over a 12-year mine life.
The fully-funded 70,000-metre drill program launched with two drill rigs already operating, will ramp up to six rigs as the program advances through the end of 2026. Priority targets include Cariboo Deep (10,000 metres, 11 holes,), Prosperine Mountain (20,000 metres, 30 holes) and Barkerville Mountain.