Osisko Development Corp. ("
Osisko Development" or
the "
Corporation") (ODV: TSX-V) is pleased to
provide the following update on its 100% owned Cariboo Gold Project
in Wells, British Columbia and San Antonio Gold Project in Sonora,
Mexico.
Highlights
- The company is well funded with
approximately $325 million in cash and cash equivalents, comprising
approximately $200 million cash and $125 million in marketable
securities.
- At the Cariboo Gold Project, the
Corporation is kicking off a new 2-year drill program aimed at
resource extension and discovery-oriented exploration. The aim is
to complete 90,000 meters of resource conversion drilling by Q3
2021 to support the feasibility study.
- The Corporation has entered the
process planning stage of the BC Environmental Process, and is
working with leading consultants to ensure that the Cariboo Gold
Project can operate as one of the most socially and environmentally
acceptable mines in the world.
- Commenced development of
mineralized material from the Bonanza Ledge Phase 2, and
stockpiling has been initiated at the mill.
- The Corporation is projecting first
gold from our Bonanza Ledge Phase 2 project in Q2 2021.
- The Corporation purchased a brand
new communition circuit (grinding circuit) that was designed for a
mining project planned at 7,500tpd. This investment represents a
major step forward in securing critical equipment for the
concentrator, reduces engineering risk and will allow to fast track
the construction of the processing facilities once all permits are
received.
- A new Sandvik MT720 continuous
miner ("roadheader") has been delivered on the Cariboo site,
assembled and commissioned. The Corporation expects to use this new
technology for drift development at the Bonanza Ledge Phase II and
Cariboo projects. This equipment is engineered to mechanically cut
the hard and abrasive rock mass and is expected to improve the
development performance by 25%, and to reduce costs by 50% compared
to traditional "drill and blast" development.
- At the San Antonio Gold Project, we
have completed the engineering and permitting to process the gold
mineralized stockpile via heap leaching.
- 35,000 meters exploration and
infill drill program of the Sapuchi, Golfo de Oro and California
Projects have been planned. We have established an initial
exploration budget of approximately US$6 million for 2021.
- Engineering and permitting for heap
leach mining for the Sapuchi, Golfo de Oro and California Projects
is ongoing.
Cariboo Gold Project Update
Osisko Development continues to advance its
flagship Cariboo Gold Project while undertaking an intensive
exploration program at this highly prospective property. While
development advances at Bonanza Ledge Phase II, the Corporation is
progressing a feasibility study on the broader Cariboo Gold
Project, which is expected to be released in the second half of
2021.
Production at Bonanza Ledge Phase II is on track
to restart in the first quarter of 2021. The main access to the ore
zone is continuing in accordance with the original schedule and
development plan. Over 2,300 meters have been completed since
the start of the project; five ore horizons have been developed and
are ready for extraction following permit approval, which is
scheduled for the end of the first quarter of 2021. Production is
expected to start at an average rate of 600 tonnes per day and ore
will be transported to the QR Mill site for processing. Mill
facilities have been upgraded in the second half of 2020 and all
circuits are presently undergoing the final commissioning
phase.
Permitting
The Cariboo Gold Project achieved a major
milestone in the permitting process by obtaining a Readiness
Decision in December 2020 pursuant to British Columbia's
Environmental Assessment process. Public consultations were
completed in the summer of 2020 and the project is now on the
legislated timeline to obtain the final approval from the
Environmental Assessment Office. The environmental assessment
certificate is expected to be issued in the third quarter of 2022,
with all remaining permits required to start construction expected
to be issued within 90 days following the issuance of such
certificate. Osisko Development has also applied for a bulk sample
permit with respect to its Cow Mountain Zone and the construction
of an exploration ramp for the promising Lowhee Zone. The 10,000
tonnes bulk sample is intended for metallurgical testing on run of
mine ("ROM") for ore sorting technology that the
Corporation is planning to implement in its processing facilities.
Permit approval and commencement of earth works is expected to be
received and begin in the first quarter of 2021.
Equipment Acquisitions
Osisko Development is pleased to announce the
purchase of a comminution equipment package for the Cariboo Gold
project. The equipment package consists of a jaw crusher,
semi-autogenous grinding (SAG) and ball mill as well as all
auxiliary components and spare parts. The equipment, currently
stored in Winnipeg, Manitoba, is in excellent condition and will be
transported closer to the project in due course. This investment
will add flexibility to the project's throughput and will allow the
Corporation to proceed with the detailed engineering.
In addition, a new Sandvik MT720 continuous
miner ("roadheader") has been delivered to site, and has been
assembled and commissioned. This equipment has been leased by the
Corporation, with an option to purchase the equipment. The
Corporation is projecting to use this new technology for drift
development at the Bonanza Ledge Phase II and Cariboo projects.
This equipment is engineered to mechanically cut the hard and
abrasive rock mass and is expected to improve the development
performance by 25%, and to reduce costs by 50% compared to
traditional "drill and blast" development.
Related to the bulk sample on Cow Mountain, the
Corporation has entered into an agreement to purchase an ore sorter
to test the ROM material on site at its Bonanza Ledge Mine
Facility. The Cariboo Gold ore response to ore sorting technology
has demonstrated excellent gold recoveries at very low cost. The
metallurgical testing for the ROM material of Cow Mountain bulk
sample is expected to be completed in early 2022.
Exploration Activities
A total of 59,500 meters were drilled in over
216 holes in the exploration and category conversion program on the
Cariboo Gold Project, which includes up to eight diamond drill
rigs. The drilling confirmed down dip extensions of mineralized
veins and high grade intercepts within the current resource and
expanded the new discoveries on Lowhee and Proserpine. Recent
results included 18.18 g/t Au over 10.2 meters including
91.4 g/t Au over 0.50 meter in BM-20-020 on Lowhee Zone and
9.33 g/t Au over 12.1 meters including 62.9 g/t Au
over 0.60 meters in CM-20-046 on Valley Zone. Please refer to the
Corporation’s January 13, 2021 news release for additional details
on hole CM-20-046 and the October 5, 2020 press release from Osisko
Gold Royalties Ltd for hole BM-20-020.
Drilling in 2021 commenced in January with the
objective to continue the category conversion program on the known
deposit areas to support the feasibility study while expanding at
depth and along strike. Significant exploration will occur adjacent
to known deposits, at KL, Lowhee and Proserpine. A proposed total
of ten drill rigs turning by January 15, 2021 and up to 14 drill
rigs by the end of the second quarter of 2021 is planned.
The Cariboo mineral resource update includes 3.2
million ounces of gold (21.4 million tonnes grading 4.6 g/t
Au) in the measured and indicated category, and 2.7 million ounces
of gold (21.6 million tonnes grading 3.9 g/t Au) in the
inferred category. The mineral resource estimate incorporates eight
deposit areas; the Shaft and Mosquito Creek deposits on Island
Mountain, Cow and Valley deposits on Cow Mountain, and Lowhee, KL,
BC Vein and Bonanza Ledge deposits on Barkerville Mountain at a
cut-off grade of 2.1 g/t Au.
Regional exploration continued to deliver new
discoveries and identify new drill targets that should provide the
long term growth and expansion for the Cariboo Gold Project. In
2021 regional exploration drilling will begin on the newly defined
targets at Burns Mountain and Yanks Peak.
San Antonio Gold Project
Update
The San Antonio Gold Project, located in Sonora,
Mexico, has an initial resource estimate containing 27.6 million
tonnes grading 1.18 g/t Au for 1 million ounces of gold
in the inferred category. While the exploration campaign for the
project is being evaluated, the Corporation is currently targeting
development of a scenario for initial annual production of 50,000
to 70,000 ounces of gold with additional near-term potential from
reprocessing the 1.3 million tonnes stockpile located on site.
Osisko Development is pleased to announce that
it has entered into an agreement to purchase a semi-portable
crushing plant for the San Antonio Gold Project with capacity of
15,000 tonnes per day. The equipment package consists of a jaw
crusher, cone crushers and the related screening and material
handling equipment. The equipment is in good condition and
currently stored in Nevada, USA and will be transported to the
project in the next quarter.
Corporate matters
Mr. Benoit Brunet, Vice President, Finance
and Chief Financial Officer and Corporate Secretary of Osisko
Development, has accepted a role to return to the Caisse de dépôt
et placement du Québec ("CDPQ"). He will remain
with the Corporation until the end of February 2021 to facilitate
the transition of his responsibilities. Mr. Brunet has been
instrumental in the successful launch and capitalization of Osisko
Development, which includes the listing of the Corporation by way
of a reverse takeover transaction and three financings totaling
approximately $210 million – in a very productive three month
stretch.
Mr. Roosen, Chair and Chief Executive
Officer of Osisko Development stated: "Benoit joined Osisko
Gold Royalties in February 2020 and moved to Osisko Development in
November 2020. During the year, he successfully achieved many
milestones, proved to be a devoted and esteemed member of our team
and more recently, was key to the successful launch of Osisko
Development. Osisko Development now has a market capitalization of
over 1 billion dollars and a portfolio of securities valued at
approximately $125 million and cash resources of more than
$200 million." Mr. Roosen added: "With such a positive
situation and strong balance sheet, we are set for the next step of
growth through the development of our Cariboo and San Antonio
Projects as we continue to assess opportunities. We wish Benoit a
successful return to CDPQ."
Qualified Persons
The scientific and technical content in this
news release has been reviewed and approved by Maggie Layman,
P.Geo, Vice President, Exploration of the Corporation, who is a
qualified person for purposes of National Instrument 43-101 –
Standards of Disclosure for Mineral Projects.
For further information on the Cariboo Project,
please see the technical report titled "NI 43-101 Technical Report
and Mineral Resource Estimate for the Cariboo Gold Project, British
Columbia, Canada" dated October 5, 2020, with an effective date of
October 5, 2020, prepared by Christine Beausoleil, P. Geo., and
Carl Pelletier, P. Geo., of InnovExplo Inc. as filed on SEDAR
(www.sedar.com) under Osisko Development's issuer profile and on
the Corporation's website.
Mineral resources are not mineral reserves as
they do not have demonstrated economic viability.
About Osisko Development Corp.
Osisko Development Corp. is well-capitalized and
uniquely positioned as a premier gold development company in North
America to advance the Cariboo Gold Project and other Canadian and
Mexican properties, with the objective of becoming the next
mid-tier gold producer. The Cariboo Gold Project, located in
central British Columbia, Canada, is Osisko Development's flagship
asset with measured and indicated resource of 21.44 million
tonnes at 4.6 g/t Au for a total of 3.2 million ounces of
gold and inferred resource of 21.69 million tonnes at
3.9 g/t Au for a total of 2.7 million ounces of gold. The
considerable exploration potential at depth and along strike
distinguishes the Cariboo Gold Project relative to other
development assets as does the historically low, all-in discovery
costs of US $19 per ounce. The Cariboo Gold Project is
advancing through permitting as a 4,750 tonnes per day underground
operation with a feasibility study on track for completion in the
second half of 2021. Osisko Development's project pipeline is
complemented by potential near-term production targeted from the
San Antonio Gold Project, located in Sonora, Mexico and early
exploration stage properties including the Coulon Project and James
Bay Properties located in Québec, Canada as well as the Guerrero
Properties located in Guerrero, Mexico.
For further
information about Osisko Development Corp., please
contact: |
Sean Roosen, CEOTelephone: (514)
940-0685Email: sroosen@osiskodev.com |
Jean Francois Lemonde, VP
Investors RelationsTelephone: (514) 299-4926Email:
jflemonde@osiskodev.com |
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Cautionary Note Regarding Forward-Looking
Information
Certain statements contained in this news
release may be considered "forward‐looking statements" within the
meaning of applicable Canadian securities laws. Information in this
news release about the Corporation being well-funded; the drill
program aimed at resource extension and discovery-oriented
exploration; the timing and ability of Osisko Development (if at
all) to complete resource conversion drilling by Q3 2021 to support
a feasibility study; the ability to operate a socially and
environmentally acceptable mine at Cariboo; timing and ability (if
at all) for the first gold pour from Bonanza Ledge Phase 2; the
timely development of the Cariboo Gold Project and the San Antonio
Gold Project, including the timing and ability of the Corporation
to obtain permits, restart production, complete exploration
programs and prepare updated technical disclosure under NI 43-101,
and any other information herein that is not a historical fact may
be "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, including with respect to future
drilling at, and future production from, the Cariboo Gold Project
and the San Antonio Gold Project, timely obtaining of all required
permits and results of exploration programs, is based upon certain
material assumptions that were applied in drawing a conclusion or
making a forecast or projection, including management's perceptions
of historical trends, current conditions and expected future
developments, public disclosure from operators of the relevant
mines, 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.
For additional information with respect to these
and other factors and assumptions underlying the forward‐looking
statements made in this news release concerning Osisko Development,
see the Filing Statement available electronically on SEDAR
(www.sedar.com) under Osisko Development's issuer profile. The
forward‐looking statements set forth herein concerning Osisko
Development reflect management's expectations as at the date of
this news release and are subject to change after such date. Osisko
Development disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, other than as required by
law.
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.
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