Osisko Development Provides Corporate Update and Reports Second Quarter 2021 Results
August 09 2021 - 7:18PM
Osisko Development Corp.
("Osisko
Development "or the "Company") (ODV: TSX-V) is pleased to
provide results for the second quarter as well as an update on each
of the company’s development projects.
2021 Achievements and Milestones at the
Cariboo Gold Project (“Cariboo”):
- 93,000 meters of exploration and
infill drilling occurred at Cariboo as of June 30th 2021.
- The mine operations commenced at
Bonanza Ledge II (“BL2”) with over 43,000 tonnes
of development ore mined.
- The Quesnel River
(“QR”) mill was re-commissioned.
- The Corporation poured its first
gold in the second quarter.
- The final application for the
Environment Assessment Certificate for Cariboo was submitted.
- The following key project
expenditures were made in 2021 at Cariboo:
- New Water Treatment Plants at BL2
and Cariboo and at the QR Mill.
- New concentrator equipment with
7,500 tonnes per day capacity.
- New exploration camp and core
processing facility, new housing in Wells and road upgrades.
- The QR mill was upgraded in order
to process ore from BL2 and future ore from Cariboo.
- The Cow Mountain permit for a
10,000 tonne underground bulk sample was granted.
- The Sandvik roadheader was
commissioned at BL2 and is now operating to develop the portal at
Cow Mountain for underground and bulk sample access.
- The Steinhert Optical and XRT ore
sorter was received on site to begin test work with Cow Mountain
Bulk Sample.
- Osisko Development continues to
provide support for local infrastructure in the town of Wells, The
Barkerville Historic Town and Park and maintaining strong
relationships with its partners the Lhtako Dene, Xatsull, and
Williams Lake First Nations.
2021 Achievements and Milestones at the
San Antonio Gold Project
- 9,900 meters of infill drilling
were completed as of June 30th 2021 of a planned two phase 45,000
meter drilling campaign.
- The Corporation continues
preparations to commence processing of the large stockpile on
site.
- Capital investments have been made
for the San Antonio project including comminution and conveyor
equipment that is in transit to the site in Mexico.
- The heap leach permitting is also
on schedule and anticipate granting of the permit by the end of the
year.
“We are pleased by the progress achieved to date
at both Cariboo and San Antonio. The ongoing work at Cariboo has
advanced our Environmental Assessment and Feasibility Study
bringing us closer to our major milestones. At San Antonio, we are
preparing to process the stockpile and conducting exploration
activities. We’ve encountered some challenges this year such as
supply chain constraints and the spring thaw (freshet) at Cariboo
that impacted our mining and exploration activities. However, we
have overcome these challenges and reacted proactively to ensure
that we meet our current and long-term objectives”, commented Sean
Roosen, Chairman and Chief Executive Officer of Osisko Development
Corp.
Second Quarter 2021 Financial Results
Highlights
- The cash position of the Company as
at June 30, 2021 was approximately $145 million.
- The market value of equity
investments was CAD$103.9 million as at June 30th 2021.
- The Company realized its first
revenues from gold and silver of approximately $0.8 million.
- The Company divested of certain
investments from its portfolio generating gross proceeds of $8.3
million.
- The Company incurred a net loss of
$41.4M during the quarter.
The net loss is mostly due to the recognition of
a non-cash impairment in the amount of $40.5 million consisting of
two amounts; a) $36.1 million for its short-life BL2 mine triggered
by operational challenges incurred during the year and, b) $4.4
million for the re-evaluation of the stockpile at the San Antonio
project due to a decline in the gold price quarter over
quarter.
Consolidated Financial
StatementsOsisko Development’s consolidated financial
statements and management's discussion and analysis for the three
and six months ended June 30, 2021 are available on the Company's
website at www.osiskodev.com, and on SEDAR under the Company's
profile at www.sedar.com.
Conference CallOsisko
Development will host a conference call on August 10th 2021, at
9:00am, Eastern Time to provide a corporate update.
Dial-in Numbers:North American
Toll-Free: 1 (888) 880-5501Local and International: 1 (438)
800-1833 Access Code: 8787742
Replay also available on our website
www.osiskodev.com
Qualified Persons StatementPer
National Instrument 43-101 Standards of Disclosure for Mineral
Projects, Maggie Layman, P.Geo. Vice President Exploration of
Osisko Development Corp., is a Qualified Person and has prepared,
validated, and approved the technical and scientific content of
this news release.
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, is Osisko Development's flagship asset
with measured and indicated resources of 21.44 Mt at 4.6 Au g/t for
a total of 3.2 million ounces of gold and inferred resource of
21.69 Mt at 3.9 Au g/t for a total of 2.7 million ounces of
gold (see NI 43-101 Technical Report for resource October 5th,
2020). 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 as well as the Guerrero Properties
located in Mexico. Osisko Development began trading on the TSX
Venture Exchange under the symbol "ODV" on December 2,
2020.
For further information, please contact Osisko
Development Corp.:
Jean Francois LemondeVP Investor
Relationsjflemonde@osiskodev.comTel: 514-299-4926
Forward-looking Statements
Certain statements contained in this press
release may be deemed “forward‐looking statements” within the
meaning of applicable Canadian and U.S. securities laws. 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 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, including with respect to the
projected underground development and the results from the
processing of the bulk sample with the Ore Sorter, results of
further exploration work at Cariboo and San Antonio to define and
expand mineral resources, expected conclusions of optimization
studies, the timely preparation to commence processing of the large
stockpile at San Antonio, the timely permitting if the heap leach
at San Antonio, 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. Such risks and uncertainties include,
among others, risks relating to the ability of exploration
activities (including drill results) to accurately predict
mineralization; errors in management’s geological modelling; the
ability of to complete further exploration activities, including
drilling; property and royalty interests in the Cariboo gold
deposit; the ability of the Corporation to obtain required
approvals; the results of exploration activities; risks relating to
mining activities; the global economic climate; metal prices;
dilution; environmental risks; and community and non-governmental
actions and the responses of relevant governments to the COVID-19
outbreak and the effectiveness of such responses.
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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