Osisko Development Corp.
(“Osisko
Development” or the “Company”) (ODV: TSX-V) is pleased to
report its unaudited financial and operating results for the three
and nine months ended September 30, 2021, please see the Company’s
filings on SEDAR (www.sedar.com).
Third Quarter 2021 Achievements &
Financial Results Highlights
- The Cariboo gold project is
advancing through permitting as a 4,750 tonnes per day
underground operation with a feasibility study targeted for
completion in the first half of 2022.
- 47,000 meters of infill drilling
completed in Q3 & 152,000 meters year-to-date at the Cariboo
Gold Project in Wells, British Columbia. Further details on the
exploration drilling results, can be viewed in the Company’s press
releases filed on SEDAR (www.sedar.com) dated April 12, 2021,
May 19, 2021, June 15, 2021, June 24, 2021,
June 29, 2021, July 6, 2021 and July 21,
2021, August 11, 2021, August 25, 2021, October 5, 2021, October 19, 2021 and
October 26, 2021.
- The Company received a Notice of
Work permit to commence the development to collect an underground
bulk sample at its Cariboo Gold Project.
- 11,800 meters of infill drilling
completed during the quarter and 22,724 meters year-to-date at the
San Antonio Gold Project in Sonora, Mexico.
- New drilling, surface mapping and
geochemical sampling has indicated that mineralization remains open
in all directions and at depth at the San Antonio Gold
Project.
- The Company will commence processing,
via heap leach, of the stockpile currently on site at the San
Antonio Gold Project in November (Figure 1).
- The production permit for the Sapuchi
oxide mineralization is on schedule and is anticipated in H1
2022.
- The cash position of the Company as at
September 30, 2021 was approximately $72 million.
- The market value of equity
investments was CAD$89.5 million as at September 30th
2021.
- The Company incurred a net loss of
$31.7 million during the quarter. The net loss is mostly due to the
recognition of a non-cash impairment in the amount of
$33.3 million, of which $22.3 million is related to an
impairment on the Bonanza Ledge II project (“Bonanza Ledge
II”). The remaining $11 million impairment is related
to the revaluation of the stockpile inventory held at the San
Antonio Project.
- Osisko Development continues to
provide support for local infrastructure in the town of Wells, The
Barkerville Historic Town and Park and maintaining relationships
with its partners the Lhtako Dene Nation, Xatśūll Nation and
Williams Lake First Nation.
“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, the
construction of the heap leach pad has been completed and the
stockpile processing will commence this quarter,” commented Sean
Roosen, Chair and Chief Executive Officer of Osisko
Development.
Highlights – Subsequent to the
Quarter
- In October, the Province of British
Columbia, Lhtako Dené Nation and the Company announced the approval
of amendments to Mines Act Permits M-238 and M-198 allowing for the
expansion of the existing Bonanza Ledge II underground mine with an
increase in production from 150,000 t/year to 215,000 t/year.
- The TSX-V approved the listing of
the Company’s 14,789,373 outstanding share purchase warrants under
the symbol ODV.WT effective at market open on October 25,
2021.
Impairment – Bonanza Ledge Phase II
ProjectIn March 2021, processing of ore commenced at
Bonanza Ledge II which is a small underground satellite project
that will help train the workforce and also serve to permanently
sequester above-ground waste material from historical operations
and mitigate an existing environmental liability. The Company
recognized an impairment on its short-life of mine Bonanza Ledge II
of $22.4 million during the three month and $58.4 million for the
nine months ended September 30, 2021, triggered by continuing
operational challenges leading to lower production and revenues
than originally planned. The recoverable amount was assessed at
$nil as of September 30, 2021. Significant judgement was involved
in the assumptions used in the model, which include but is not
limited to gold price, average grade per tonne, and mining and
milling recovery rates. Given the small scale and short life, it
allows the Company to facilitate (i) hands on training and
commissioning of the Company’s mining and processing complex for
the future Cariboo Gold Project, (ii) opportunities for managing
historical reclamation obligations inherited by the Company and
(iii) maintain the economic and social benefits for our Indigenous
partners and communities.
In early Q4, Bonanza Ledge II entered the stope
mining stage with all major development completed and permits
received. Other achievements include:
- Infill drilling has good potential to increase the mine life
within the surrounding BC Vein, Bonanza Ledge and KL deposits on
Barkerville Mountain (see Mineral Resource Update dated October 5,
2020 including 271,000 ounces of gold in the measured and indicated
category and 241,000 ounces of gold in the inferred category).
- Based on surface geological mapping and diamond drilling, the
BC Vein has a significant exploration potential along strike for 18
km.
- Facilitation of Permitting for the
Cariboo Gold Project.
- Upgraded QR Mill and related
infrastructure for the benefit of the Cariboo Project.
- Commissioned underground mining
equipment such as the road header also intended for use in the
Cariboo Gold Project.
- Installation of Water Treatment
Plants at the QR Mill tailings site and Barkerville Mountain Waste
Rock Storage and Water Management area for benefit of Cariboo Gold
project.
- Hiring and training of key
operational and construction staff for the Cariboo Gold
Project.
Consolidated Financial
StatementsOsisko Development’s unaudited interim
consolidated financial statements and management's discussion and
analysis for the three and nine months ended September 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 November 10th 2021, at 9:00 A.M., Eastern Time
to discuss the quarterly results.
Date: November 10, 2021, at 9:00 A.M., ESTDial-in Numbers:
- North American Toll-Free: 1 (888) 880-5501
- Local and International: 1 (438) 800-1833
- Access Code: 8787742
Replay will also available on our website www.osiskodev.com
Qualified Persons
Per 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 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 and mineral resource estimate effective 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
first half of 2022. 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
and the Company’s 14,789,373 outstanding share purchase warrants
were listed on the TSX Venture Exchange under the symbol “ODV.WT”
on October 25, 2021.
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 the timely
completion of the feasibility study and the continued advancement
of the Environmental Assessment for the Cariboo Project, the timely
commencement of the underground bulk sample at Cariboo, the release
of the production permit in H1 2022 for the San Antonio
Project, the potential to increase the mine life of Bonanza Ledge
II with surrounding deposits through infill drilling, the
exploration potential of the BC Vein and management’s perceptions
of historical trends, current conditions and expected future
developments, results of further exploration work to define and
expand mineral resources, expected conclusions of optimization
studies, 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.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/a288a1cb-4b96-4398-ba09-2010a04e016c
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