Osisko Development updates bulk sample and underground development progress at Cariboo Gold Project, British Columbia
Osisko Development Corp. [ODV-TSXV] has released progress update for its ongoing bulk sample and underground development activities at its 100%-owned Cariboo Gold Project in central British Columbia.
The company has now successfully completed 100% of the underground development, totalling approximately 1,172 metres, to access the target area of the contemplated bulk sample in the Lowhee Zone of the deposit.
Preparations are underway and in their final stages to extract 10,000 tonnes of mineralized material. Stope preparation is largely complete with blasting and extraction expected to be completed in the coming weeks. Results of the bulk sample are anticipated in the first quarter of 2025, supporting ongoing work on the optimized feasibility study expected to be completed in the second quarter of 2025.
“We are now in the heart of the orebody in the Lowhee Zone and getting preliminary visual confirmation of the geology underpinning the Cariboo Gold Project,’’ said Osisko Develoment Chairman and CEO Sean Roosen. “Once the bulk sample is extracted, it will underego ore sorter testing at Tomra’s facility in Saskatoon, Sakatchewan and processing into a concentrate,’’ he said. “These steps will provide valuable grade reconciliation data relative to the resource model and validate our assumptions on ore sorting. Both efforts are expected to significantly derisk the project from a technical standpoint as we continue to progress towards securing a fully-funded financing solution to advance the project.’’
On Friday, the shares eased 1.9% or $0.05 to $2.59. The shares trade in a 52-week range of $4.20 and $1.89.
Back in January, 2023, Osisko released the results of a feasibility study for the Cariboo gold project.
It 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.
Initial production (Phase 1) in the first three years contemplates a 1,500 tonne per day operation from the Lowhee, Shaft and Mosquito deposits, yielding average annual production of 72,501 ounces. Concurrently, underground development will advance to ramp up to 4,000 tonnes-per-day in year four, increasing average annual production to 193,798 ounces in Phase 2, with potential to scale production further in the future. Gold production of 223,000 ounces annually is anticipated during peak operations.
The Phase 2 expansion is expected to require $451.1 million in capital expenditures, including $36.7 million in contingency costs.
The feasibility study is based on probable mineral reserves of 16.7 million tonnes at an average grade of 3.78 g/t for a total of 2.03 million ounces of gold.
Osisko recently said the BC Mines Act permits for its Cariboo Gold project in central British Columbia have been approved. This marks an important milestone, enabling the company to move forward with the construction and operation of the Cariboo project.