Osisko Gold Royalties Ltd (the “
Corporation” or
“
Osisko”) (OR: TSX & NYSE) is pleased to
provide an update on its second quarter 2023 deliveries, revenues,
cash margin and recent asset advancements. All monetary amounts
included in this report are expressed in Canadian dollars, unless
otherwise noted.
PRELIMINARY Q2 2023 RESULTS
Osisko earned approximately 24,645 attributable
gold equivalent ounces1 (“GEOs”) in the second quarter of 2023,
including 1,527 GEOs earned from the recently acquired CSA silver
stream, for which revenues are expected to be recognized in the
third quarter of 2023.
Osisko recorded preliminary revenues from
royalties and streams of $60.5 million during the second quarter
and preliminary cost of sales (excluding depletion) of $4.3
million, resulting in a quarterly cash margin2 of approximately
$56.2 million (or 93%).
Paul Martin, Interim CEO of Osisko, commented:
“It is a privilege to be granted the opportunity to become Interim
CEO of Osisko, a leading royalty company with an exceptional
portfolio of assets. I look forward to overseeing management’s
continued execution of its successful strategy of originating and
delivering high quality royalty and streaming transactions while
the board continues its search for the next leader of the
company.”
Osisko will provide full production and
financial details with the release of its second quarter 2023
results after market close on Wednesday, August 9th, 2023 followed
by a conference call on Thursday, August 10th at 10am ET. More
details are provided at the end of this release.
PORTFOLIO UPDATE
Canadian Malartic Mine Life Extension
and Update (5% NSR royalty on open pit and 3-5% NSR royalty on
underground)
On June 30th, Agnico Eagle Mines Limited
(“Agnico Eagle”) provided results from an internal study on the
Odyssey underground mine (the “2023 Study”) and exploration results
from the Canadian Malartic Complex. The 2023 Study highlighted a
23% increase in life-of-mine payable gold production from the
Odyssey mine compared to the internal study from 2020. The 2023
Study also outlined an extension of the mine life to 2042 with a
mine plan that includes approximately 9.0 million ounces of gold,
including 0.2 million ounces of gold in Mineral Reserves (2.8
million tonnes grading 2.22 grams per tonne "g/t" gold), 4.8
million ounces of gold in Indicated Resources (45.5 million tonnes
grading 3.31 g/t gold) and Inferred Resources of 4.0 million ounces
of gold (53.5 million tonnes grading 2.32 g/t gold).
Agnico Eagle noted that the potential for
further conversion of Inferred Resources is significant and
expected to further add to mine life. With additional exploration,
Agnico Eagle believes that mineralization will continue to be added
into the overall mine plan in the coming years, with good potential
to grow annual gold production and further extend the mine
life.
Figure 1: Canadian Malartic Production
Profile
Source: Agnico Eagle Press Release, June 20,
2023
In 2023, Agnico Eagle expects to spend
approximately $21.8 million for 164,000 meters of drilling at
Canadian Malartic and its adjoining properties. Approximately
95,030 meters were drilled during the first five months of 2023. Up
to fifteen drills were active on Canadian Malartic and its
surrounding properties during the same period, with five
underground drills currently completing infill drilling on the
Odyssey South deposit, four surface drills focused on completing
infill drilling and transitioning to expand East Gouldie
mineralization, and up to six drills active in regional
exploration.
Drilling from underground in the Odyssey South
deposit gradually increased during the first half of 2023 as ramp
development provided access to new drill bays to test Odyssey South
and Odyssey internal zones. As at May 31st, the ramp was 3,645
meters in length, reaching the bottom of the Odyssey South deposit
at a depth of 578 meters. Shaft sinking activities started in
March, with 55 meters completed as of June 20th. Underground infill
drilling into Odyssey South continued to confirm the widths and
grades of mineralization. With continued infill drilling success,
Agnico Eagle’s expectation is that Probable Mineral Reserves will
continue to grow and replace 2023 production from that zone.
Exploration drilling from the Odyssey ramp is also increasing
confidence in the adjacent Odyssey internal zones and demonstrating
good continuity of gold mineralization within these internal
structures. The gold mineralization encountered to date in the
Odyssey internal zones has not been included in the current mine
plan and could represent an attractive near-term exploration
opportunity considering the zone’s proximity to existing and
planned underground mine infrastructure around the Odyssey South
and Odyssey North deposits. Agnico Eagle indicated that positive
drill results at Odyssey internal zones show the potential to
further increase production during the operation’s 2023-2028
transition period.
Exploration at the Odyssey mine in 2023 is
expected to include $11.8 million for 102,000 meters of drilling
focused on the following four objectives:
- Continued drilling into East
Gouldie to convert additional Inferred Resources to Indicated
Resources towards the outer portions of the deposit
- Testing the immediate extensions of
East Gouldie to the west and at shallower depths
- Continued conversion drilling into
extensions of Odyssey South; and
- Further investigate Odyssey
internal zones
Select intercepts from recent drilling at
Odyssey are shown in Figure 2.
Figure 2: Canadian Malartic Long
Section
Source: Agnico Eagle Press Release, June 20,
2023
Agnico Eagle continues to expect to have 40,000
tonnes per day (“tpd”) of excess mill capacity starting in 2028 as
processing of open pit ore and low-grade stockpiles gradually
decreases and transitions to the higher-grade Odyssey underground
mine. This additional mill capacity provides significant
optionality for organic growth at Canadian Malartic and the greater
land package. Agnico Eagle now controls 16.5 kilometers of
continuous ground along the Cadillac-Larder Lake break at its
Canadian Malartic and adjoining properties. Agnico Eagle has
budgeted approximately $10 million in 2023 for 62,000 meters of
regional exploration drilling on the Canadian Malartic, Rand
Malartic, Camflo, Midway and East Amphi properties which offer
potential opportunities to supplement the existing mine life with
additional ore sources. Osisko holds 5% NSR royalties on East Amphi
and Midway.
In addition to near-mill exploration, Agnico
continues to explore the possibility of utilizing the excess mill
and tailings storage capacity at Canadian Malartic to support other
regional projects. Current internal studies include potential
sources of ore from the Macassa near surface deposits and the AK
deposit (2% NSR Royalty), the Upper Beaver project (2% NSR
Royalty), other Kirkland Lake satellite deposits including Upper
Canada and Anoki-McBean (2% NSR Royalties), as well as the Wasamac
project. Osisko holds a $0.40 per tonne mill royalty on any ore
processed at the Canadian Malartic mill that was not part of the
initial Malartic property at the time of the sale to Yamana and
Agnico Eagle in 2014.
Figure 3: Regional Pipeline – Cadillac-Larder Lake
Break
Source: Agnico Eagle Presentation “Canadian
Malartic Complex Mine Tour”, June 21, 2023
CSA Initial Deliveries and Update (100%
Silver Stream and 3.0% Copper Stream)
On June 16th, Osisko Bermuda Limited (“OBL”)
closed the previously announced silver purchase agreement (the
“Silver Stream”) and copper purchase agreement (the “Copper
Stream”) referenced to production from the CSA mine (“CSA”) with
Metals Acquisition Limited (“MAC”). Deliveries of refined silver to
OBL under the Silver Stream will include approximately 1,527 GEOs
in respect of silver produced at CSA between February 1st and June
15th. Deliveries of refined copper to OBL under the Copper Stream
will commence in June 2024. Production in the first half of 2023
was impacted by planned downtime of the process plant to complete
upgrades to the grinding circuit.
On June 27th, MAC announced that it had shipped
its first shipment of concentrate to customers in Asia containing
approximately 2,300 tonnes of copper and 28,000 ounces of silver.
MAC has identified multiple opportunities to improve productivity,
optimize costs, lower cut-off grade, increase the resource and
extend the mine life at CSA.
Costa Fuego Royalty Acquisition (1.0%
Copper NSR Royalty and 3.0% Gold NSR Royalty)
On June 28th, Osisko announced a binding
agreement to acquire a 1.0% copper NSR royalty and a 3.0% gold NSR
royalty covering Hot Chili Limited’s Costa Fuego Copper-Gold
Project (“Costa Fuego”) in Chile.
Costa Fuego is one of the world’s largest
undeveloped copper projects, not currently controlled by a major
mining company. It hosts an NI 43-101 Indicated Resource including
both the open pit and underground portions of the Cortadera and
Productora deposits, of 725 million tonnes grading 0.47% Copper
Equivalent (“CuEq”), grading 0.38% Copper, 0.11 g/t gold, 0.45 g/t
silver and 93 ppm Molybdenum and an Inferred Resource of 202
million tonnes grading 0.30% copper and 0.06 g/t gold. The June
2023 PEA projects at 16 year mine life with average annual
production of 95 thousand tonnes of copper and 49,000 ounces of
gold in the first 14 years.
Costa Fuego is situated at low altitude and is
in close proximity to all key infrastructure requirements. An
updated resource is scheduled for late 2023 and will serve as the
basis for a PFS, scheduled for completion in the second half of
2024.
Gibraltar Stream Increase (87.5% Silver
Stream)
On June 29th, Osisko announced an amendment to
its silver stream on the Gibraltar copper mine (“Gibraltar”).
Osisko and Taseko Mines Limited (“Taseko”) have amended the silver
stream to increase Osisko’s effective stream percentage by 12.5% to
87.5%. Further, the step-down silver delivery threshold has been
extended to coincide with Taseko’s recently updated mineral reserve
estimate for Gibraltar.
Mantos Blancos Ramp Up (100% Silver
Stream)
On May 3rd, Capstone Copper (“Capstone”)
discussed its progress on the ramp up at Mantos Blancos, including
continued focus on preventative maintenance to increase reliability
and reduce downtime. Average throughput during the first quarter
was 16,023 tpd (compared to 15,246 tpd in the fourth quarter of
2022). The quarter included eighteen days operating at 20,000 tpd
and an average throughput rate of 19,000 tpd in February. On their
first quarter conference call, Capstone indicated that higher
throughput at Mantos Blancos is anticipated over the balance of the
year. OBL expects to see stronger deliveries under the stream in
the second half of 2023.
Capstone is currently evaluating the potential
to further increase throughput of the Mantos Blancos sulphide
concentrator plant from 20,000 tpd to 27,000 tpd using idled mill
capacity with the potential for additional production through 2032.
The Mantos Blancos Phase II feasibility study is expected to be
released in the second half of 2023.
Eagle Ramp Up (5.0% NSR
Royalty)
On July 5th, Victoria Gold Corp. (“Victoria”)
reported second quarter production of 45,568 ounces of gold
resulting in production of 83,188 ounces of gold during the first
half of 2023. This represents a 47% improvement over the 56,413
ounces of gold produced in the first half of 2022. Both gold grade
and metallurgical recovery continue to reconcile well against the
Eagle reserve model. Island Exploration Success (1.38% to
3.0% NSR Royalty)
On June 15th, Alamos Gold Inc. (“Alamos”)
reported new results from underground drilling at the Island Gold
mine, further extending high-grade gold across the deposit,
including several recently defined hanging wall and footwall
structures in close proximity to existing underground
infrastructure. Continued exploration success within recently
defined sub-parallel structures demonstrates the significant
opportunities to add high-grade ounces near existing mining
horizons. This includes the newly defined NS1-Zone in the hanging
wall which is currently being developed and mined; the zone is
beyond existing Mineral Reserves and Resources and outside of the
2023 mine plan.
A total of $14 million is budgeted for
exploration at Island Gold in 2023. For the past several years, the
exploration focus has been on adding high-grade Mineral Resources
at depth in advance of the Phase 3+ Expansion study, primarily
through surface directional drilling. This exploration strategy has
been successful in tripling the Mineral Reserve and Resource base
since 2017. With a 17-year mine life, and with work on the
expansion ramping up, the focus has shifted to an expanded
underground exploration drilling program that will leverage
existing underground infrastructure. The underground exploration
drilling program has been expanded from 27,500 meters in 2022 to
45,000 meters in 2023 and is focused on defining new Mineral
Reserves and Resources in proximity to existing production horizons
and infrastructure including along strike, and in the hanging-wall
and footwall. These potential high-grade Mineral Reserve and
Resource additions would be low-cost to develop and could be
incorporated into the mine plan and mined within the next several
years.
Seabee Update (3% NSR
Royalty)
During SSR Mining Inc.’s (“SSR Mining”) first
quarter conference call, it was mentioned that production during
the quarter reflected an issue with underground equipment
availability that negatively impacted the mine sequencing at
Seabee. The issue was resolved, but grades processed were below
expectations.
SSR Mining continues to advance near mine
exploration at Seabee with a focus on prioritizing mineral resource
conversion activities to ensure mineral reserve growth and mine
life extensions in the future. They continue to evaluate
early-stage exploration targets at depth below the existing Santoy
mineralization as well as regional targets like Porky and Porky
West that could contribute meaningfully to Seabee's longer-term
production platform.
Lamaque Update (1% and 2.5% NSR
Royalty)
During Eldorado Gold Corporation’s (“Eldorado”)
first quarter conference call, management indicated that second
quarter processing rates will increase slightly coupled with
consistent grade and production for the second half of the year is
expected to be stronger than the first half. Additionally, Eldorado
is anticipating the delivery of the first electric haul truck in
the second quarter and a second in the fourth quarter, which are
expected to enhance haulage capabilities and reduce diesel
consumption per tonne, lowering GHG emissions.
Eldorado also highlighted that exploration
results at Ormaque continue to demonstrate the potential to
increase resources. Partial results from resource conversion
drilling will be incorporated in a resource update later in 2023
and a maiden reserve on Ormaque in 2024.
Renard Update (9.6% Diamond
Stream)
On June 23rd, Stornoway made the decision to
evacuate the Renard mine, located in central Québec, due to forest
fires located 50km to the northwest of the operation. Smoke
from the fires as well as the closure of an important access road
necessitated the interruption in site activities. Mining
operations resumed on July 1st and the diamond recovery plant
restarted on July 4th following the reopening of the access road
allowing for the resumption of transportation of natural gas and
diesel necessary for operations. As a result of the temporary
evacuation, we anticipate a moderate impact on deliveries from
Renard in the third quarter of 2023; we also note a general
softening in the diamond market over the second quarter due to high
polished inventory levels and a slower economic rebound in
China.
Pan Mine (4.0% NSR Royalty)
On June 21st, Calibre Mining Corp. (“Calibre”)
announced assay results from the 2023 drill program at the Pan Mine
in Nevada. Results at the Palomino target, located immediately
south of the current open pit, indicate higher grades than the
current average reserve grade of 0.4g/t gold. Currently a small
amount of material at Palomino exists in Inferred Resources. The
potential now exists to materially increase resource ounces, grade
and confidence south of the Pan mine and the Palomino deposit
remains open to the southeast and at shallow depths. Some highlight
intercepts include 3.84 g/t gold over 15.2 meters, 2.08 g/t gold
over 27.4 meters and 2.02 g/t gold over 27.4 meters. All drill
targets are located near-surface in oxidized limestone. Given the
proximity to the current open pit, and the fact that Palomino is
within the permitted area, Calibre has indicated they could start
mining at Palomino as early as 2024.
Windfall Joint Venture (2-3% NSR
Royalty)
On June 5th, Osisko Mining Inc. (“Osisko
Mining”) announced the suspension of all activities at the Windfall
project due to the wildfire situation in Northern Québec.
Facilities were monitored in accordance with local directives.
On May 2nd, Osisko Mining and Gold Fields Ltd.
(“Gold Fields”) announced a joint venture partnership (collectively
“the Partnership”) to develop and mine the Windfall Project in
Québec, Canada. Gold Fields acquired a 50% interest in the
feasibility stage Windfall Project (including exploration
potential) on the following key terms:
- cash payment of C$300 million paid
on signing;
- cash payment of C$300 million
payable on issuance of key permits and,
- 50/50 co-share of interim and
construction capital expenditures.
Gold Fields believes the Windfall Project is on
track to become a high-quality, low-cost underground gold mine with
a relatively small surface footprint and considerable growth
prospects along strike and down plunge, well beyond delineated
Mineral Reserves and the current 10 year projected mine life set
out in Osisko Mining’s December 2022 Windfall feasibility study.
Drawing on more than 20 years of successful brownfields exploration
and reserve growth at its Western Australian operations, Gold
Fields sees the potential for a similar path to emerge at the
Windfall, Urban Barry and Quévillon belts.
Property-wide regional and near-deposit
exploration is already in progress, with six drills exploring
targets developed by Osisko over the past seven years, including
the Golden Bear, Fox and Shellian prospects. An initial exploration
program developed by the Partnership includes $20 million dedicated
to these and other targets.
Tintic Ramp Progress and Exploration
Success (2.5% Metals Stream)
On May 17th, Osisko Development Corp. (“Osisko
Development”) announced the remaining diamond drilling (“DD”) and
reverse circulation (“RC”) drill results from its 2022 exploration
program, announced new 2023 underground diamond drilling results
and provided an overview of the ongoing 2023 exploration program at
its 100%-owned Trixie test mine (“Trixie”) within the greater
Tintic Project (“Tintic”). Highlights included 23.49 g/t gold and
58.79 g/t silver over 1.37 meters, 62.82 g/t gold and 231.46 g/t
silver over 6.86 meters including 191 g/t gold and 707 g/t silver
over 1.07 meters. Currently there are two underground diamond drill
rigs in operation at Trixie conducting exploration activities.
Additionally, as of May 17th, approximately 75%
of the Trixie portal and underground decline ramp had been
completed and completion of the decline ramp to the main 625 level
is anticipated by the third quarter of 2023, which is expected to
significantly improve underground access for exploration
drilling.
During 2022, Osisko Development completed an
extensive review and compilation of historical data on the Tintic
Project. As a result, a number of high-sulphidation epithermal
gold-silver targets were identified at North Lily and Eureka
Standard. Additionally, copper-molybdenum-gold porphyry targets
were identified at Big Hill – a lithocap approximately 2 kilometers
in strike length and 1 kilometer wide indicative of an underlying
porphyry system. A strong geophysical and geochemical target was
also identified to the West and at depth below Trixie. An initial
program of surface drilling is planned to test Big Hill, commencing
in the third quarter of 2023.
Cariboo Permitting Update (5.0% NSR
Royalty)
On May 8th, Osisko Development announced the
signing of two permitting agreements, the Process Charter and the
Joint Information Requirements Table, reaffirming the multilateral
support of and commitment by the various levels of the Government
of British Columbia to advance the approval process of the Cariboo
Gold Project (“Cariboo”). The target timelines established by the
Process Charter, which are contingent on the issuance of the
Environmental Assessment Certificate anticipated in the third
quarter of 2023, contemplate a final application referral date that
is aligned with the anticipated receipt of environmental permits in
Q1 2024.
Taylor Update (1% NSR Royalty on
Sulphide Ores)
On May 8th, South32 Limited (“South32”)
announced that the Taylor project had been confirmed by the United
States Federal Permitting Improvement Steering Council (FPISC), as
the first mining project added to the FAST-41 process, enabling a
more efficient and transparent process for federal permitting. The
Taylor project, located in Southern Arizona, is currently the only
advanced mine development project in the US that could produce two
federally designated critical minerals: zinc and manganese. To
qualify for the FAST-41 process, complex critical infrastructure
projects must meet rigorous criteria to demonstrate benefit to the
United States.
In a recent presentation, South32 indicated that
the Taylor feasibility study and a final investment decision is on
track for the second half of 2023 incorporating the revised mine
development schedule, which is being optimized for the FAST-41
permitting process.
On April 23rd, along with quarterly results,
South32 indicated that US$173 million had been invested at the
project in the nine months ended March 2023. Construction of the
second water treatment plant progressed and remained on track to be
completed in the fourth quarter of 2023.
Casino (2.75% NSR Royalty)
On April 14th, Western Copper and Gold
Corporation (“Western Copper”) announced the closing of the $21.3
million strategic equity investment by Mitsubishi Materials
Corporation representing approximately 5.0% interest in Western
Copper, to further advance the Casino Project. And subsequently,
Western Copper also announced the closing of the $2.3 million
subscription by Rio Tinto Canada Inc. to maintain its pro-rata
interest of approximately 7.84%.
Corvette Property (2% NSR Royalty on
Lithium covering the majority of drilled area)
On June 14th, Patriot Battery Metals Inc.
(“Patriot”) announced further drill results from the 2023 winter
drill program at the Corvette Property (“Corvette”), located in the
Eeyou Istchee James Bay region of Québec. Core assays, for the
drill holes reported cover the CV5 Pegmatite’s recently defined
eastward extension, the high-grade Nova Zone and the recently
defined westward extension. Drill hole CV23-148 targeted the Nova
Zone and returned a wide and high-grade intercept of 95.3 meters at
1.62% Li2O, including 47.6 meters at 2.09% Li2O.
The high-grade result affirms the interpretation
that the Nova Zone extends continuously over a strike length of at
least 1.1 kilometers. Strong grades and widths were returned in
drilling over the recently defined westward extension, highlighted
by drill hole CV23-160A, which returned 127.7 meters at 1.78% Li2O,
including 50.1 meters at 2.43% Li2O. Through the 2023 winter drill
program, the CV5 Pegmatite has been traced continuously by drilling
(at approximately 50 to 150 meters spacing) as a principally
continuous spodumene-mineralized body over a lateral distance of at
least 3.7 kilometer and remains open along strike at both ends and
to depth along most of its length. Patriot expects to announce an
initial mineral resource estimate at CV5 in the near term.
On June 4th, Patriot provided an update on its
work programs and the impact of the current forest fire situation
in Québec. Patriot temporarily ceased drilling and surface
exploration field activities until the situation improves. Core
continues to be processed from holes completed at Corvette in May
2023.
Tocantinzinho Gold Project (0.75% NSR
Royalty)
On June 13th, G Mining Ventures Corp. (“G
Mining”) provided an update on site activities for its
Tocantinzinho Gold Project (“TZ”) in the State of Pará, Brazil. As
at June 13th, the project was 30% complete and remained on track
and on budget for commercial production in the second half of 2024.
To date, 1.74 million tonnes of waste material had been excavated
from the starter pit. Approximately 2.4 million tonnes of ore will
be stockpiled during the pre-production period prior to mill
commissioning, providing roughly 6 months of mill feed. Powerline
progress has reached 41%.
On June 1st, G Mining announced it entered into
a power purchase that grants Renewable Energy Certificates as
assurance of the supply of renewably generated power. This will
enable G Mining to produce gold ounces with Scope 1 emissions in
the lowest quartile of the CO2 emissions curve when compared to
similar operations in the Americas.
Marimaca Copper (1% NSR
Royalty)
On June 20th, Marimaca Copper Corp. (“Marimaca”)
announced a $20 million equity investment by Mitsubishi
Corporation, representing a strong endorsement of the quality of
the Marimaca Project. Proceeds from the investment will be used to
advance and accelerate development and progress towards the
feasibility study, as well as on project permitting
initiatives.
On May 18th, Marimaca announced an updated
Mineral Resource Estimate (“MRE”) for the Marimaca Oxide Deposit
(the “MOD”). Measured and Indicated Resources for the MOD are now
200 million tonnes at 0.45% total copper (“CuT”) for 900 thousand
tonnes of contained copper, in addition to Inferred Resources of
37.3 million tonnes at 0.38% CuT for 141kt of contained copper. 86%
of the MOD’s total resource tonnes are now contained in the
Measured and Indicated categories. The 2023 MRE incorporates 28,374
meters of new drilling data completed since the 2022 MRE released
in October 2022. The MOD’s unique characteristics were maintained
in the 2023 MRE, including a low strip ratio within a single
constraining pit shell. Marimaca has completed 5 phases of
extensive metallurgical test work and a 6th phase of metallurgical
testing is underway, which is expected to define the optimized
process design flowsheet ahead of the planned feasibility study,
which is now expected to be released in the first quarter of
2024.
Akasaba West (2.5% NSR
Royalty)
On April 27th, Agnico Eagle announced that work
at the Akasaba West project commenced in September 2022 and
remained on schedule for overburden removal in the first quarter of
2023, with over 670,000 tonnes of material removed to date.
Construction of surface infrastructure is also progressing on
schedule, including offices, a garage and water treatment
facilities.
Altar Exploration Success (1.0% NSR
Royalty)
On June 14th, Aldebaran Resources (“Aldebaran”)
announced the completion of the previously announced top-up
financing with a subsidiary of South32. South32 elected to exercise
its anti-dilution rights to maintain a 9.9% equity interest in
Aldebaran following the exercise of warrants announced on May 5th,
2023.
On June 7th, Aldebaran reported results from its
ongoing drill campaign at Altar. ALD-23-228 hit the favourable host
rock formation at approximately 750 meters depth and thereafter
returned some of the highest-grade copper mineralization
encountered on the project to date, demonstrating continuity with
previously intersected high-grade mineralization. Highlights
include 565.6 meters of 0.60% Copper Equivalent (“CuEq”) from 676
meters depth in hole ALD-23-228, including 329.6 meters of 0.80
CuEq and 198.5 meters of 0.50% CuEq from 1,040 meters depth in hole
ALD-23-227, notably the hole ended in 31.5 meters of 0.69% CuEq. As
at June 7th Aldebaran had re-started drilling on hole 228 to see if
the higher-grade mineralization continues to depth. Aldebaran
indicated that four rigs are actively drilling with assays
pending.
On May 31st, Aldebaran announced results from
hole ALD-23-225B, drilled to test the continuity between
mineralization encountered in previously released holes and to
provide another pierce point into the promising geophysical anomaly
that sits below and lateral to the current resources at Altar.
Results included 1,056.2 meters of 0.56% CuEq from 291 meters
depth, including 951.20 meters of 0.60% CuEq from 396 meters. This
drilling fills a 400 meter gap between previous holes 223 and 224.
The results are higher grade than the current average grade of the
mineral resource and provide additional confirmation that the
mineralized footprint of the Altar system is larger than previously
understood. Figure 4 shows a across section looking towards the
northeast displaying significant drill results that correspond with
a large geophysical anomaly spanning the Altar East and Altar
Central deposits.
Figure 4: Cross Section Looking Towards
the NorthEast
Source: Aldebaran Resources, May 2023
West Kenya (2.0% NSR
Royalty)
On May 22nd, Shanta Gold Limited (“Shanta Gold”)
announced a company-wide exploration update, including drill plans
from the West Kenya Project (“West Kenya”) for 2023. Up to 26,000
meters are planned across 80 holes focused around the Isulu and
Ramula deposits targeting both conversion to Indicated Resources
plus resource extensions. Third party consultants have been engaged
to accelerate technical studies and a workstream toward mining
license application and permitting for West Kenya is underway. The
2023 exploration budget for West Kenya is up to US$10 million,
consistent with previous years. Initial assay results are expected
in July, with an updated Mineral Resource Estimate anticipated for
the second half of 2023.
WKP (2.0% NSR Royalty)
On June 19th, OceanaGold Corporation
(“OceanaGold”) announced results from the 2023 resource conversion
drill program at Wharekirauponga (“WKP”) in New Zealand.
WKP is a low-sulphidation epithermal gold-silver
vein system located approximately 10 kilometers to the north of
OceanaGold’s Waihi Gold Mine. WKP hosts an Indicated Resource of
1.7 million tonnes grading 12.3 g/t for 0.66 million ounces of
gold. Inferred Resources total 2.6 million tonnes at a grade of 7.8
g/t for 0.64 million ounces of gold, with approximately 90% of the
Resources contained within the EG Vein, a hanging wall splay and
three footwall veins (collectively, the "EG Vein Zone"). Resource
conversion drilling remains a priority in 2023 as OceanaGold works
towards growing Indicated Resources to support a pre-feasibility
study in 2024.
Opportunities for both up- and down-plunge and
along-strike extensions of the EG Vein remain, with high-grade
intercepts remaining open. Step-out drilling in hole WKP100, the
most southerly hole on the EG Vein also confirmed mineralization
continues for at least a further 200 meters along strike of the
currently defined southern shoot. Highlight intercepts
from drilling on the EG Vein Zone include 60.5 g/t gold over 11.1
meters, 51.3 g/t gold over 5.9 meters, 36.9 g/t gold over 8.0
meters and 53.3 g/t gold over 5.0 meters.
ADDITIONAL HIGHLIGHTS
1) Group 6 Metals announced commercial
production at the Dolphin Tungsten Mine in Tanzania and first
concentrate shipment is expected in July (1.5% GRR Royalty)
2) Westhaven Resources announced results from
its drill campaign at the Shovelnose gold property, including 24.95
meters of 14.66 g/t Gold And 35.52 g/t Silver at the Franz target
(2.0% NSR royalty)
3) Brunswick Exploration announced its first
set of results from its recently completed drilling campaign at the
Anatacau West project, located in the Eeyou Istchee-James Bay
region of Québec. Results from the first 12 holes included hole
26.5 meters at 1.51% Li2O, and 10.1 meters at 1.06% Li2O, including
4.9 m at 1.63% Li2O. (3.0% NSR royalty)
4) Roscan Gold announced additional drill
results at Kabaya in Mali including 1.62 g/t gold over 24 meters
and 2.27 g/t gold over 7 meters (1.0% NSR royalty)
5) First Majestic Silver announced that Santa
Elena transitioned full mine production to the Ermitaño underground
mine during the quarter (2.0% NSR royalty)
6) Talisker Resources announced US$31.5 million
financing package for Bralorne Gold Project (1.7% NSR Royalty)
7) Eagle Mountain Mining announced that assay
results from detailed maiden sampling and mapping at Oracle Ridge
have identified multiple high-grade copper zones enhancing the
optionality of Oracle Ridge, supporting either bulk mining or
selective high-grade mining scenarios (3.0% NSR royalty)
8) Benz Mining announced an updated MRE on the
Eastmain deposit in Québec including Indicated Resources of 1.3
million tonnes of 9.0 g/t for 384koz gold and Inferred Resources of
3.8 million tonnes of 5.1g/t for 621koz gold (1.15% NSR
royalty)
Q2 2023 RESULTS CONFERENCE CALL DETAILS
Osisko provides notice of second quarter 2023
results and webcast and conference call details.
Results Release: |
Wednesday, August 9th, 2023 after market close |
Conference Call: |
Thursday, August 10th, 2023 at 10:00 am ET |
Dial-in Numbers: |
North American Toll-Free: 1 (888) 886 7786Local and International:
1 (416) 764 8658Conference ID: 63806714 |
Replay (available until Sunday,
September 10th at 11:59 PM ET): |
North American Toll-Free: 1 (877) 674 7070Local and International:
1 (416) 764 8692Playback Passcode: 806714# |
|
Replay also available on our website at www.osiskogr.com |
The figures presented in this press release,
including revenues and costs of sales, have not been audited and
are subject to change. As the Corporation has not yet finished its
quarter-end procedures, the anticipated financial information
presented in this press release is preliminary, subject to
quarter-end adjustments, and may change materially.
(1) Gold Equivalent OuncesGEOs
are calculated on a quarterly basis and include royalties, streams
and offtakes. Silver earned from royalty and stream agreements are
converted to gold equivalent ounces by multiplying the silver
ounces earned by the average silver price for the period and
dividing by the average gold price for the period. Diamonds, other
metals and cash royalties are converted into gold equivalent ounces
by dividing the associated revenue earned by the average gold price
for the period. Offtake agreements are converted using the
financial settlement equivalent divided by the average gold price
for the period.
Average Metal Prices and Exchange Rate
|
Three months ended June 30 |
|
|
|
2023 |
|
2022 |
|
|
|
|
Gold(i) |
$1,976 |
$1,871 |
Silver(ii) |
$24.13 |
$22.60 |
|
|
|
Exchange rate
(US$/Can$)(iii) |
|
1.3428 |
|
1.2768 |
(i) The
London Bullion Market Association’s pm price in U.S.
dollars. (ii) The
London Bullion Market Association’s price in U.S.
dollars. (iii) Bank
of Canada daily rate.
(2) Non-IFRS MeasuresThe
Corporation has included certain performance measures in this press
release that do not have any standardized meaning prescribed by
International Financial Reporting Standards (IFRS) including cash
margin in dollars and in percentage. The presentation of these
non-IFRS measures is intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. These
measures are not necessarily indicative of operating profit or cash
flow from operations as determined under IFRS. As Osisko’s
operations are primarily focused on precious metals, the
Corporation presents cash margins as it believes that certain
investors use this information, together with measures determined
in accordance with IFRS, to evaluate the Corporation’s performance
in comparison to other companies in the precious metals mining
industry who present results on a similar basis. However, other
companies may calculate these non-IFRS measures differently.
Cash margin (in dollars) represents revenues less cost of sales
(excluding depletion). Cash margin (in percentage) represents the
cash margin (in dollars) divided by revenues.
|
Three months endedJune 30, 2023 |
|
|
|
|
|
|
|
Revenues |
$60,500 |
|
|
|
Less: Cost of sales (excluding depletion) |
|
($4,260 |
) |
|
|
Cash margin (in dollars) |
$56,240 |
|
|
|
Cash margin (in percentage of
revenues) |
|
93 |
% |
|
|
Qualified Person
The scientific and technical content of this
news release has been reviewed and approved by Guy Desharnais,
Ph.D., P.Geo., Vice President, Project Evaluation at Osisko Gold
Royalties Ltd, who is a “qualified person” as defined by National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
(“NI 43-101”).
In this press release, Osisko relies on
information publicly disclosed by other issuers and third parties
pertaining to its assets and, therefore, assumes no liability for
such third-party public disclosure.
About Osisko Gold Royalties
Ltd
Osisko is an intermediate precious metal royalty
company focused on the Americas that commenced activities in June
2014. Osisko holds a North American focused portfolio of over 180
royalties, streams and precious metal offtakes. Osisko’s portfolio
is anchored by its cornerstone asset, a 5% net smelter return
royalty on the Canadian Malartic mine, which is the largest gold
mine in Canada.
Osisko’s head office is located at 1100 Avenue
des Canadiens-de-Montréal, Suite 300, Montréal, Québec,
H3B 2S2.
For further information, please contact Osisko Gold
Royalties Ltd:
Grant MoentingVice President,
Capital MarketsTel: (514) 940-0670 #116Email:
gmoenting@osiskogr.com |
Heather TaylorVice President,
Sustainability and CommunicationsTel: (514) 940-0670 #105Email:
htaylor@osiskogr.com |
CAUTIONARY
NOTE REGARDING
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press
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. Forward-looking
statements are statements other than statements of historical fact,
that address, without limitation, future events, that
one-and-a-half million additional ounces of silver will be
delivered to Osisko due to the extended threshold, production
estimates of Osisko’s assets (including increase of production),
timely developments of mining properties over which Osisko has
royalties, streams, offtakes and investments, management’s
expectations regarding Osisko’s growth, results of operations,
estimated future revenues, production costs, carrying value of
assets, ability to continue to pay dividend, requirements for
additional capital, business prospects and opportunities future
demand for and fluctuation of prices of commodities (including
outlook on gold, silver, diamonds, other commodities) currency,
markets and general market conditions. In addition, statements and
estimates (including data in tables) relating to mineral reserves
and resources and gold equivalent ounces are forward-looking
statements, as they involve implied assessment, based on certain
estimates and assumptions, and no assurance can be given that the
estimates will be realized. Forward-looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words “expects”, “plans”, “anticipates”,
“believes”, “intends”, “estimates”, “projects”, “potential”,
“scheduled” and similar expressions or variations (including
negative variations), or that events or conditions “will”, “would”,
“may”, “could” or “should” occur. Forward-looking statements are
subject to known and unknown risks, uncertainties and other
factors, most of which are beyond the control of Osisko, and actual
results may accordingly differ materially from those in
forward-looking statements. Such risk factors include, without
limitation, (i) with respect to properties in which Osisko holds a
royalty, stream or other interest; risks related to: (a) the
operators of the properties, (b) timely development, permitting,
construction, commencement of production, ramp-up (including
operating and technical challenges), (c) differences in rate and
timing of production from resource estimates or production
forecasts by operators, (d) differences in conversion rate from
resources to reserves and ability to replace resources, (e) the
unfavorable outcome of any challenges or litigation relating title,
permit or license, (f) hazards and uncertainty associated with the
business of exploring, development and mining including, but not
limited to unusual or unexpected geological and metallurgical
conditions, slope failures or cave-ins, flooding and other natural
disasters or civil unrest or other uninsured risks, (ii) with
respect to other external factors: (a) fluctuations in the prices
of the commodities that drive royalties, streams, offtakes and
investments held by Osisko, (b) fluctuations in the value of the
Canadian dollar relative to the U.S. dollar, (c) regulatory changes
by national and local governments, including permitting and
licensing regimes and taxation policies, regulations and political
or economic developments in any of the countries where properties
in which Osisko holds a royalty, stream or other interest are
located or through which they are held, (d) continued availability
of capital and financing and general economic, market or business
conditions, and (e) responses of relevant governments to infectious
diseases outbreaks and the effectiveness of such response and the
potential impact of such outbreaks on Osisko’s business, operations
and financial condition; (iii) with respect to internal factors:
(a) business opportunities that may or not become available to, or
are pursued by Osisko, (b) the integration of acquired assets or
(c) the determination of Osisko’s PFIC status. The forward-looking
statements contained in this press release are based upon
assumptions management believes to be reasonable, including,
without limitation: the absence of significant change in Osisko’s
ongoing income and assets relating to determination of its PFIC
status, and the absence of any other factors that could cause
actions, events or results to differ from those anticipated,
estimated or intended and, with respect to properties in which
Osisko holds a royalty, stream or other interest, (i) the ongoing
operation of the properties by the owners or operators of such
properties in a manner consistent with past practice and with
public disclosure (including forecast of production), (ii) the
accuracy of public statements and disclosures made by the owners or
operators of such underlying properties (including expectations for
the development of underlying properties that are not yet in
production), (iii) no adverse development in respect of any
significant property, (iv) that statements and estimates relating
to mineral reserves and resources by owners and operators are
accurate and (v) the implementation of an adequate plan for
integration of acquired assets.
For additional information on risks,
uncertainties and assumptions, please refer to the most recent
Annual Information Form of Osisko filed on SEDAR at www.sedar.com
and EDGAR at www.sec.gov which also provides additional general
assumptions in connection with these statements. Osisko cautions
that the foregoing list of risk and uncertainties is not
exhaustive. Investors and others should carefully consider the
above factors as well as the uncertainties they represent and the
risk they entail. Osisko believes that the assumptions reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be accurate as
actual results and prospective events could materially differ from
those anticipated such the forward-looking statements and such
forward-looking statements included in this press release are not
guarantee of future performance and should not be unduly relied
upon In this press release, Osisko relies on information
publicly disclosed by other issuers and third parties pertaining to
its assets and, therefore, assumes no liability for such
third-party public disclosure. These statements speak only
as of the date of this press release. Osisko undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, other than as required by applicable law.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/ec939231-873d-437f-9bde-920be1018eb6
https://www.globenewswire.com/NewsRoom/AttachmentNg/c95c4a65-6fef-445e-a6be-a009269ef080
https://www.globenewswire.com/NewsRoom/AttachmentNg/e17186b7-18e6-42b3-a44b-c4293c807da6
https://www.globenewswire.com/NewsRoom/AttachmentNg/c975a14e-f360-472f-8e62-5895ea450d96
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