Osisko Development Corp. ("
Osisko Development" or
the "
Company") (ODV: TSX.V & NYSE) is pleased
to provide a corporate update on its 100% owned Tintic, Cariboo
Gold and San Antonio Projects.
As of September 30, 2022, Osisko Development has
produced 19,874 ounces of gold (“Au”) from its
three projects.
Tintic Project (Utah, USA)
Highlights:
- 5,353 ounces of
gold produced at an average grade of 0.91 oz/t Au (31.3 g/t Au)
since the date of Osisko Development's acquisition
("Acquisition") of Tintic on May 27, 2022.
- 4,022 tonnes of
ore mined and 2,613 tonnes processed via vat leaching on site.
- 1,342 feet (409
meters) of portal and ramp construction complete (~25%
complete).
- 20,000 feet
(6,096 metres) of reverse circulation ("RC")
drilling and 1,898 ft. (622 metres) of diamond drilling since the
date of the Acquisition, and four drill rigs currently in
operation.
Cariboo Project (BC, Canada)
Highlights:
- 7,163 ounces of
gold produced at an average grade of 6.50 g/t Au from Bonanza Ledge
Test Mine in 2022 from 53,352 tonnes of ore milled.
- Final documents
for the Cariboo Gold Project Environmental Assessment filed and
under final review by the provincial government.
San Antonio Project (Sonora, Mexico)
Highlights:
- 7,358 ounces of
gold sold from the San Antonio heap leach pad in 2022.
- 1.1 million tons
at an average grade of 0.58 g/t Au have been placed on the heap
leach pad.
Tintic Project (Utah, USA)
Osisko Development completed its Acquisition of
the Tintic project on May 27, 2022 and has since focused on the
following objectives:
- Defining an
initial mineral resource estimate, in compliance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
("NI 43-101") by the first quarter of 2023 to
support near term mine planning and production.
- Increasing
production following the completion of a decline ramp to improve
access to Trixie by the third quarter of 2023.
- Generating new
exploration targets and opportunities through historic data
compilation.
The Operational Highlights are discussed
below:
- 5,353 oz of gold
produced and sold since the Company completed its Acquisition of
Tintic on May 27, 2022 at an average grade of 0.91 oz/t Au (31.3
g/t Au). Mineralized material comes from blended T4 and T2 zones
encountered during underground exploration development.
- 78% gold
recoveries and completion of an on-site tails holding pad,
currently in the process of being permitted for heap leaching.
- Four rigs in
operation (two underground diamond drills and two surface RC drill
rigs). Drill result assays are pending.
- 20,000 feet
(6,096 metres) of RC drilling and 1,898 ft. (642 m) of diamond
drilling completed since the completion of the Acquisition. Assay
results are pending for this drilling.
- Continuous
underground mine face and back sampling of T2 and T4. This
information, together with the diamond drill results, will form the
basis of the initial mineral resource estimate.
- 1,007 feet (307
metres) of advancement in third quarter of 2022 along the Trixie
portal and decline, which is now approximately 25% complete. Once
fully complete, the decline will significantly improve access to
the underground workings, expand and increase underground
exploration areas and activities, and is expected to be the
principal access for future larger scale mining on the T2 and T4
zones. Development of this decline will continue to the lower
levels of Trixie, which was historically mined to 1,350 feet (412
metres) below surface with many stopes ending in
mineralization.
- 3,239 feet (987
metres) of underground development on or near the 625 level of
Trixie along strike of the T2 and T4 mineralized zones including
exploration crosscuts driven orthogonal to the east of the T2 and
T4 zones, and 465 feet (142 metres) of raises excavated. This
excludes production stoping completed in the T2 mineralized
zone.
- The on strike
and depth limits of both the T2 high grade structure and the
adjacent T4 and 75/85 zones are still yet undefined. This could
potentially indicate growth potential for this part of the Trixie
mine.
- Construction of
a new sample prep facility in the on-site assay laboratory and
improvements in process to maintain proficiency in quality
assurance and quality control ("QA/QC") complete
with an external lab audit.
- Ongoing
historical data compilation to generate exploration targets along
strike of and within historic mine areas.
The Company recently launched a 3D model of the
Tintic Project on the Vrify platform. This 3D presentation guides
the viewer through the Trixie Project, geologic model, and historic
and current underground development. It also gives an in-depth view
of our surface infrastructure, including an on-site assay
laboratory, processing and vat leach plant and rock sample library.
Lastly, it gives a preview of our future exploration plans and
opportunities. Photos of the new ramp are also presented below.
Click Link below to view Vrify 3D Tintic
Model:
TINTIC 3D MODEL
Regional Exploration Update
The well endowed Tintic District is the second
most prolific historic metal producer in Utah and the East Tintic
District is the least explored land package within the wider Tintic
District with all 23 past producers in the East Tintic District not
outcropping and concealed and preserved by horst - graben
development Basin and Range tectonic event.
Regional Exploration Data integration and
interpretation is defining new epithermal gold targets as well as
several new polymetallic carbonate replacement and porphyry
targets. Since taking on the project, Osisko Development, outside
of the Trixie Mine area, has already identified two new gold
targets and two porphyry targets with potential to drill over the
next 24 months.
Trixie Update
The Trixie mine is one of several gold and base
metal targets within the larger Tintic Project consisting of 17,000
acres of patented and mineral leases within the historic Tintic
Mining District of Central Utah. The T2 and T4 structures at Trixie
show multi ounce gold grades associated with high sulphidation
alteration hosted within quartzites. High grade mineralized
material from the T2 and T4 structures is being processed via vat
leaching on site. Table 1 summarizes the key
operational details that were accomplished at Trixie in the month
of June as compared with Q3 2022.
Table 1: Key Operation Details for
Trixie
Trixie Key Operating Details |
|
June 2022 |
Q3 2022 |
Ore Milled in Short tons (tonnes) |
840 (762) |
2,880 (2,613) |
Mill Throughput in Short tons/day
(tonnes/day) |
28 (25.4) |
31.3 (28.4) |
Blended T2 & T4 Diluted Head Grade in troy oz/ton Au
(grams/tonne Au) |
1.2 (41.1) |
0.83 (28.5) |
Gold Recovery (%) |
78% |
78% |
Gold Produced and Sold (troy oz) |
1,753 |
3,600 |
Trixie Portal Development feet
(metres) |
- |
1,007 (307) |
Figure 1: Trixie Portal is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2b99b0e6-0b6f-4b20-bff4-5396482017fe
Figure 2: Trixie
Decline is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2b99b0e6-0b6f-4b20-bff4-5396482017fe
Cariboo Gold Project (BC,
Canada)
The Cariboo Gold Project is in advanced stages
of permitting and economic studies, as summarized in the following
highlights:
- The Feasibility
Study ("FS") for the Cariboo Gold project is
scheduled to be completed before the end of the 2022 calendar year.
The FS is being designed to account for the current inflationary
environment and will contemplate a staged, lower capital intensity
project with scalable infrastructure. This approach to developing
the Cariboo Project will mitigate capital intensity risk while also
maximizing our margins as well as our ability to exploit what we
anticipate to be multiple deposits over two trends totalling
approximately 80 km of mineralization, with the ultimate goal of
establishing a large mining camp.
- Signing Ceremony
on October 23, 2022 with Lhtako Dene First Nation's Elders and
Members in Wells and Quesnel was an important event for the life of
project agreement between Lhtako Dene First Nation and Osisko
Development highlighting the importance of our partnership and
mutual support and benefits.
- The Revised
Application for the Environmental Assessment
("EA") Process was submitted to the Environmental
Assessment Office of British Columbia (the "EAO")
on October 14, 2022 for the Cariboo Gold Project. The 1,700
comments received by the different reviewers were successfully
addressed and ODV is expecting the official acceptance by the
Ministry of Energy Mines and Low Carbon Innovation (the
“Ministry”) by mid-November 2022 to proceed to the
Affect Assessment & Recommendations, which is the last phase of
the Environment Assessment process. This aligns with the Company's
expected timeline to receive the EA Certificate in first quarter of
2023 for an operational capacity of 4750 tonnes / day.
- In parallel to
the EA process, the Company initiated an official application for
the permitting of the Cariboo Gold Project with the submission of
the Project Description to the Ministry on September 30, 2022. The
Company expects to receive final permits in fourth quarter of
2023.
- All drilling and
geologic modeling work has been completed and 2022 assay results
will be released upon final QA/QC controls shortly.
- All permits have
been received for the bulk sample in the Lowhee deposit area, which
includes 2,200 metres of underground development and the removal of
10,000 tonnes of mineralized material for further ore sorter
testing. The Lowhee deposit is comprised of mineralized vein
corridors within the overall Cariboo Gold Project deposits and
contains 188,000 oz Au (1.6 Mt grading 3.6 g/t Au) in the indicated
mineral resource category and 59 k oz of Au (520 kt grading 3.5 g/t
Au) in the inferred mineral resource category and is open in all
directions. See company news release dated May 24, 2022. The QR
Mill which will process the mineralized material, is fully
permitted.
- Outside of the
Cariboo Gold Project area there are 25 high quality drill-ready
targets demonstrating the years of ongoing exploration in the
mineral rights held by ODV around the Cariboo Gold Project.
Figure 3: Cariboo Gold Property mineral
occurrences and permitted areas for drill ready
targets is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2b99b0e6-0b6f-4b20-bff4-5396482017fe
The Cariboo Project is Osisko Development's
flagship asset with measured and indicated mineral resources of
3.47 M oz of Au ( 27.1 Mt grading 4.0 g/t Au) and an inferred
mineral resource of 1.62 M oz of Au (14.4 Mt at grading 3.5 g/t
Au). See Company news release dated May 24, 2022. The total land
package of 155,000 hectares and approximately 80 kilometers strike
of mineral targets, providing prospective opportunities for future
discoveries (Figure 3).
San Antonio Project
Highlights from the San Antonio 2022 work
program are as follows:
- 1,062,864 tons
from stockpile placed on heap leach pad, with an average grade of
0.58 g/t Au and 0.25 g/t silver ("Ag") for an
estimated total of 20,090 oz of Au and 8,818 oz of Ag. The gold
grades were slightly higher than the original estimated 0.57 g/t
prior to placement on the leach pad.
- 10,149 oz of Au
and 3,516 oz of Ag at recoveries to the end of the third quarter of
2022 of 50.5% for gold and 39.9% for silver total production from
heap leach pad as of October 27, 2022.
The San Antonio Gold Project, located in the
state of Sonora, Mexico, includes five known deposits and at least
a dozen other gold exploration over 11,338 hectares. A recent
mineral resource estimate (see news release dated June 30, 2022)
includes 576,000 oz of Au and 1.37 million ounces of Ag (14.9
million tonnes grading 1.2 g/t Au and 2.9 g/t Ag) in the indicated
mineral resource category and 544,000 ounces of gold and 1.76
million ounces of silver (16.6 million tonnes grading 1.0 g/t Au
and 3.3 g/t Ag) in the inferred mineral resource category. The San
Antonio Project gold mineralization is characterized by
hydrothermal breccia that forms an approximately 3,000 metres long
east-northeast trending mineralization corridor with the Luz del
Cobre copper deposit at the east.
Figure 4: Crushing of stockpile at San
Antonio is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/4d967517-821c-4e43-9da2-cffa1d5118f7
Figure 5: Stockpile placed on newly
constructed leachpad is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2a085821-7385-4d65-9fc9-9b4461aaf706
San Antonio Expected
Impairment
The Company has assessed the carrying value of
its assets as at September 30, 2022 as part of its financial
results preparation and currently believes that its financial
statements for the three and nine months ended September 30, 2022
will recognize an asset impairment in respect of the San Antonio
Project.
The expected impairment charge is a result
primarily of industry cost pressures and the current inflationary
environment, which resulted in an increase in interest rates and
thus the risk-free rate underpinning the applicable weighted
average cost of capital used in the impairment assessment.
The expected asset impairment is a non-cash item
and, for the avoidance of doubt, will have no impact on cashflows.
Furthermore, the expected asset impairment is not expected to have
any impact on Osisko Development's mine plans, gold reserves and
resources, and streaming and royalty agreements. This assessment
for impairment has been undertaken in accordance with the relevant
accounting standards and related solely to the San Antonio
Project.
The amount of the asset impairment to be
recognized in the financial statements for the three and nine
months ended September 30, 2022 has not been finalized.
Sean Roosen, Chairman and CEO of Osisko
Development commented:
"Osisko Development offers a unique opportunity
through three advanced brownfield projects, which have all produced
gold this year. Tintic, located in Utah, is fully permitted and
producing gold from small scale mining while a larger ramp is 25%
complete, which we anticipate will allow for larger scale mining.
Tintic offers immediate production and a host of prospective
exploration opportunities to shareholders and stakeholders while
the other two projects complete the permitting cycle.
The Cariboo Project, which comprises over
500,000 acres and a 50-mile mineralized trend, is currently in the
permitting process and the Environmental Assessment has been filed
for a 4,750 tonne per day mine capacity.
The San Antonio Project has completed stacking
of 1.1 million tonnes of mineralized material on a heap leach
pad with active leaching anticipated for the next 90 to 120
days. Management is currently evaluating its options for the
project.
At Osisko Development, we are extremely proud of
the portfolio we have built. All three projects are in strong
mining jurisdictions, offer brownfield infrastructure and have
camp-scale exploration potential. We continue to advance through
permitting at Cariboo and anticipate to ramp-up our production and
exploration activities at Tintic."
Qualified Persons
David Sabourin, P.E., Chief Operating Officer of
Tintic Consolidated Metals, and a "qualified person" for purposes
of NI 43-101, has reviewed and approved the technical and
scientific content in this news release relating to the Tintic
Project. All operational and information provided in this update is
documented and stored in the company database.
François Vézina, ing., P.Eng., MBA, Senior Vice
President of Technical Services for Osisko Development, and a
"qualified person" for purposes of NI 43-101, has reviewed and
approved the technical and scientific content in this news release
relating to the San Antonio gold project.
Maggie Layman, P.Geo, Vice President of
Exploration for Osisko Development, and a "qualified person" for
purposes of NI 43-101, has reviewed and approved the technical and
scientific content in this news release relating to Cariboo Gold
Project.
Caution Regarding Current
Production
The Company cautions that the decision to
commence production at Trixie in the form of small scale
underground mining and batch vat leaching without the benefit of a
feasibility study, or reported mineral resources or mineral
reserves, demonstrating economic and technical viability, and, as a
result there may be increased uncertainty of achieving any
particular level of recovery of material or the cost of such
recovery. The Company cautions that historically, such projects
have a much higher risk of economic and technical failure. There is
no guarantee that production will continue as anticipated or at all
or that anticipated production costs will be achieved. The failure
to continue production may have a material adverse impact on the
Company's ability to generate revenue and cash flow to fund
operations. Failure to achieve the anticipated production costs may
have a material adverse impact on the Company's cash flow and
potential profitability. In continuing current operations at Trixie
after closing, the Company will not be basing its decision to
continue such operations on a feasibility study, or reported
mineral resources or mineral reserves demonstrating economic and
technical viability. The Company cautions that mining at Trixie
could be suspended at any time.
Historical Resources and
Production
Historical information and statements regarding
historical mineral estimates and production in relation to Trixie
and Burgin Mine and its potential for a significant
silver-lead-zinc-gold deposit does not comply with NI 43-101. To
that end, a qualified person has not done sufficient work on behalf
of Osisko Development to classify any historical estimate as
current mineral resources or mineral reserves and Osisko
Development is not treating the historical estimate as current
mineral resources or reserves.
Cautionary Note to U.S. Investors
Regarding Mineral Reserve and Mineral Resource
EstimatesThe Company is subject to the reporting
requirements of the applicable Canadian securities laws, and as a
result reports information regarding mineral properties,
mineralization and estimates of mineral reserves and mineral
resources, in accordance with Canadian reporting requirements,
which are governed by NI 43-101. As such, such information
concerning mineral properties, mineralization and estimates of
mineral reserves and mineral resources, including the information
in the Tintic Technical Report and this news release, is not
comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements of the
Securities and Exchange Commission.
Future-Oriented Financial
Information
To the extent any guidance or forward-looking
statements in this news release constitutes a financial outlook or
future oriented financial information ("FOFI"),
they are made as of the date of this news release and included
herein to provide stakeholders with an understanding of the plans
and assumptions for budgeting purposes and prospective investors
are cautioned that the information may not be appropriate for other
purposes. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable by
management at the time of preparation, may prove to be imprecise
and, as such, undue reliance should not be placed on any FOFI.
Osisko Development's actual results, performance or achievement
could differ materially from those expressed in, or implied by,
these FOFI, or if any of them do so, what benefits the Company will
derive therefrom. The Company disclaims any intention or obligation
to update or revise any FOFI, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws.
About Osisko Development
Corp.
Osisko Development Corp. (ODV: TSX.V & NYSE)
is uniquely positioned as a premier gold development company in
North America to advance the Cariboo Gold Project and other
Canadian, U.S.A. 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. The considerable exploration
potential at depth and along strike distinguishes the Cariboo Gold
Project relative to other development assets. Osisko Development's
project pipeline is complemented by its 100% ownership of the San
Antonio gold project, located in Sonora, Mexico and the Tintic
Project, located in Utah, U.S.A.
For further information, please contact
Osisko Development Corp.: Laurence FarmerGeneral Counsel
and Strategic Developmentlafarmer@osiskodev.com Tel:
514-607-6045
Forward-looking Statements
Certain statements contained in this news
release may be considered forward-looking information and/or
forward-looking statements (together, "forward-looking statements")
within the meaning of applicable Canadian securities laws and the
United States Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical fact, are
forward-looking statements and are based on expectations, estimates
and projections as at the date of this news release. Any statement
that involves discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions,
future events or performance (often but not always using phrases
such as "expects", or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans", "budget",
"scheduled", "forecasts", "estimates", "believes" or "intends" or
variations of such words and phrases or stating that certain
actions, events or results "may" or "could", "would", "might" or
"will" be taken to occur or be achieved) are not statements of
historical fact and may be considered forward-looking
statements.
In this news release, forward-looking statements
relate, among other things, to: the prospects, projections and
success of the Corporation; future gold productions; the
advancement of the decline ramp; the ability of exploration results
(including drilling) to accurately predict mineralization; our
timing and ability to prepare a NI 43-101 technical report in
respect of an initial mineral resource estimate for Tintic by the
first quarter of 2023 (if at all); the ability of such technical
report to support near-term mine planning and production;
increasing production following ramp completion (by the third
quarter of 2023, if at all); the prospectus of new exploration
targets and new opportunities, if at all, including through
historic data compilation; the ability of current gold recoveries
to accurately predict future gold recoveries; the prospects of T2,
T4 and 75/85 zones at Tintic; the prospectus of the new sample prep
facility; the ability of the Vrify platform and 3D modeling to
accurately predict mineralization; our timing and ability to
prepare a FS for Cariboo by the end of the 2022 calendar year (if
at all); the prospects and parameters described in this news
release in respect of such FS for Cariboo; our timing to receive
the EA Certificate in the first quarter of 2023 (if at all); the
proposed operational capacity for Caribou; the timing to receive
final permits for Caribou (if at all), including in the fourth
quarter of 2023; future mining activities; the potential for larger
scale mining at Tintic; our ability to obtain final permitting
approval for a 20,000 ton per day operation at San Antonio; the
ability of Osisko Development to identify mineral resources at our
properties; the ability of Osisko Development to expand mineral
resources beyond current mineral resource estimates; the utility of
the existing infrastructure, production processes and facilities as
well as management and personnel at Trixie; the historic success of
the management team to predict the future success of Osisko
Development; the ability of management to understand the geology
and potential of Trixie and Burgin and the Trixie district; the
utility of historic data in respect of Trixie and Burgin and the
Trixie district; the opportunities presented by Trixie, its mineral
deposit and its ability to be mined (including any potential value,
if any); estimates of mine development and construction costs; the
significance of the Tintic district hosting past producing mines;
any references to high-grade deposits; the unique mineralization at
Trixie including the mineralization of T2; the ability to adapt to
changes in gold prices; estimates of costs, estimates of planned
exploration and development expenditures; the ability of Osisko
Development to obtain further capital on reasonable terms; the
profitability of our mining operations; Osisko Development being
well-positioned as a gold development company in Canada, USA and
Mexico; indicative valuations; expected investor returns; mineral
inventory; and estimates of gold prices. All forward-looking
statements entail various risks and uncertainties that are based on
current expectations and actual results may differ materially from
those contained in such information.
Although Osisko Development believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements involve known and
unknown risks, uncertainties and other factors and are not
guarantees of future performance and actual results may accordingly
differ materially from those in forward-looking statements. These
uncertainties and risks relate, among other things, to: the ability
of exploration activities (including drill results) to accurately
predict mineralization; the ability to realize upon geological
modelling; the ability of Osisko Development to complete further
exploration activities, including drilling; property interests in
the assets of Osisko Development; the ability of the results of
exploration activities; risks relating to mining activities;
fluctuations in spot and forward prices of gold, silver, base
metals or certain other commodities; fluctuations in currency
markets (such as the Canadian dollar to United States dollar
exchange rate); change in international, national and local
government, legislation, taxation, controls, regulations and
political or economic developments; risks and hazards associated
with the business of mineral exploration, development and mining
(including environmental hazards, industrial accidents, unusual or
unexpected formations pressures, cave-ins and flooding); inability
to obtain adequate insurance to cover risks and hazards; the
presence of laws and regulations that may impose restrictions on
mining; employee relations; relationships with and claims by local
communities and indigenous populations; availability of increasing
costs associated with mining inputs and labour; the speculative
nature of mineral exploration and development (including the risks
of obtaining necessary licenses, permits and approvals from
government authorities); and title to properties. However, there
can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Investors are
cautioned that forward-looking statements are not guarantees of
future performance. Osisko Development cannot assure investors that
actual results will be consistent with these forward-looking
statements and investors should not place undue reliance on
forward-looking statements due to the inherent uncertainty
therein.
For additional information with respect to these
and other factors and assumptions underlying the forward‐looking
statements in this news release concerning Osisko Development,
please refer to the public disclosure record of Osisko Development,
including the restated annual information form of Osisko
Development for the year ended December 31, 2021 as amended, and
the most recent annual and interim financial statements and related
management's discussion and analysis of Osisko Development, which
are available on SEDAR (www.sedar.com) and EDGAR (www.sec.gov)
under Osisko Development's issuer profile. The forward‐looking
statements in this news release reflect management's expectations
as of 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.
This news release does not constitute an
offer to sell or a solicitation of an offer to buy any securities
in the United States or any other jurisdiction. No securities may
be offered or sold in the United States or in any other
jurisdiction in which such offer or sale would be unlawful prior to
registration under the U.S. Securities Act of 1933 or an exemption
therefrom or qualification under the securities laws of such other
jurisdiction or an exemption therefrom.
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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