Osisko Development Corp. [ODV-TSXV] says that as of September 30, 2022, the company produced 19,874 ounces of gold from three projects, located in the U.S., Canada and Mexico.
That amount includes 7,163 ounces from the Bonanza Ledge Test mine at the company’s flagship Cariboo Gold project in British Columbia, material was extracted from 53,352 tonnes of ore, grading 6.50 g/t gold.
The balance of gold produced this year, included 5,353 ounces from the Tintic project in Utah, and 7,358 ounces from the San Antonio project in Sonora, Mexico.
Back in May, 2022, Osisko released a preliminary economic assessment (PEA) for the Cariboo gold project that targets an initial gold pour in the first quarter of 2024.
The PEA illustrates potential economics for a low cost, large scale underground gold mine, with industry-leading operating costs. It envisages total gold production of 2.8 million ounces of gold over a 12-year lifespan, or average annual production of 236,000 ounces with an all-in-sustaining cost per ounce of US$962 an ounce.
The total capital cost is estimated at $1.36 billion, including $507 million for the underground mine and $190 million for the mine site processing complex.
However, the PEA advocates a phased construction approach with initial construction enabling a 2,000 tonne-per-day operation, before expanding to 8,000 tonnes per day.
In its latest update, Osisko said Cariboo is in the advanced stages of permitting and economic studies. It also said a feasibility study is scheduled to be completed before the end of the 2022 calendar year.
It said the feasibility study is designed to account for the current inflationary environment and will contemplate a staged, lower capital intensity project with scalable infrastructure.
“This approach to developing the Cariboo Project will mitigate capital intensity risk while also maximizing our margins as well as the ability to exploit what we anticipate will be multiple deposits over two trends totalling approximately 80 kilometres of mineralization, with the ultimate goal of establishing a large mining camp,’’ the company said.
The 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.
Meanwhile, after completing the acquisition of the Tintic project in May, 2022, the company has since focused on defining an initial resource estimate by the first quarter of 2023 to support near-term mine planning and production. Another priority has been increasing production following the completion of a decline ramp to improve access to the Trixie mine, one of several gold and base metal targets within the larger Tintic project.
On November 1, 2022, Osisko shares closed at $5.75 and currently trade in a 52-week range of $17.04 and $4.94.