Osisko Development Corp. (NYSE: ODV; TSX-V:ODV) ("
Osisko
Development" or the "
Company") is pleased
to report its financial and operating results for the three months
ended September 30, 2022 (or "
Q3 2022"). Unless
stated otherwise, all dollar references are to Canadian dollars.
Q3 2022 Highlights:
- 10,958 ounces total of gold sold by
the Company for Q3 2022, comprising:
- 3,600 ounces of gold from the
Trixie test mine ("Trixie") within the Company’s
wider Tintic project in central Utah, USA
("Tintic"); and
- 7,358 ounces of gold from the 1.1
million tonne heap leach pad at the Company’s San Antonio Gold
Project ("San Antonio").
- $22.8 million in revenues earned by
the Company from the Trixie test mine and San Antonio operations in
Q3 2022. See "Cautionary Statements".
- $133.1 million approximate cash
position as at September 30, 2022.
Tintic:
- 5,353 ounces of gold produced at an
average grade of 0.91 oz/t1 Au2 (31.3 g/t3 Au) since the date of
Osisko Development's acquisition of Tintic on May 27, 2022.
- 1,342 feet (409 meters) of portal
and ramp construction complete (~25% complete) as at September 30,
2022.
- 20,000 feet (6,096 metres) of
reverse circulation ("RC") drilling and 1,898 feet
(622 metres) of diamond drilling since the acquisition of Tintic
with four drill rigs currently in operation.
- US$20 million metals stream on the
Tintic Project closed on September 26, 2022 with Osisko Bermuda
Limited, a wholly-owned subsidiary of Osisko Gold Royalties
Ltd.
Barkerville:
- Final documents for the Cariboo
Gold Project Environmental Assessment filed and under final review
by the British Columbia Ministry of Energy, Mines and Low Carbon
Innovation (the “Ministry”).
- Official application for permitting
of the Cariboo Gold Project initiated on September 30, 2022, with
Project Description submitted to the Ministry.
- All permits received for the bulk
sample in the Lowhee deposit area, which includes 2,200 meters of
potential underground development and the removal of 10,000 tonnes
of mineralized material for further validation of the Company’s
newly constructed ore sorter facility.
- 7,163 ounces of gold produced at an
average grade of 6.50 g/t Au from the Bonanza Ledge Test Mine from
53,352 tonnes of mineralized material milled as at September 30,
2022. The Bonanza Ledge Test Mine was put into care &
maintenance in the 2nd quarter of 2022.
- The Feasibility Study for the
Cariboo Gold project is scheduled to be completed before the end of
the 2022 calendar year. The study 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.
Sapuchi Minera
- 7,358 ounces of gold sold from the
processing of the existing stockpile via heap leach as at September
30, 2022.
- 1.1 million tonnes at an average
grade of 0.58 g/t Au have been placed on the heap leach pad.
- A non-cash impairment of $81
million was recorded in Q3 2022.
Consolidated Financial
Statements
Osisko Development's unaudited interim
consolidated financial statements and management's discussion and
analysis for the three months ended September 30, 2022 are
available on the Company's website at www.osiskodev.com, and on
SEDAR (www.sedar.com) under Osisko Development's issuer
profile.
Qualified Persons
The scientific and technical information in this
news release has been reviewed and approved by Maggie Layman,
P.Geo. Vice President Exploration of Osisko Development Corp., a
qualified person within the meaning of National Instrument 43-101 –
Standards of Disclosure for Mineral Projects ("NI
43-101").
Technical Reports
For further information on the Tintic
Project please see the technical report titled "Technical
Report on the Tintic Project, East Tintic Mining District, Utah
County, Utah, USA", dated June 10, 2022 (with an effective date of
June 7, 2022) prepared for the Company by Dr. Thomas A. Henricksen,
QP, C.P.G. (the "Tintic Technical Report").
Reference should be made to the full text of the Tintic Technical
Report, which was prepared in accordance with NI 43-101 and is
available electronically on SEDAR (www.sedar.com) under Osisko
Development's issuer profile.
For further information on the Cariboo
Gold Project please see the technical report titled "NI
43-101 Technical Report, Preliminary Economic Assessment for the
Cariboo Gold Project, District of Wells, British Columbia, Canada",
dated June 22, 2022 (with an effective date of May 24, 2022)
prepared for the Company by representatives of BBA Engineering
Ltd., InnovExplo Inc., SRK Consulting (Canada) Inc., WSP Canada
Inc. (WSP Golder), WSP USA Inc. (WSP Golder), Klohn Crippen Berger
and Falkirk Environmental Consultants Ltd. (the "Cariboo
Technical Report"). Reference should be made to the full
text of the Cariboo Technical Report, which was prepared in
accordance with NI 43-101 and is available electronically on SEDAR
(www.sedar.com) under Osisko Development's issuer profile.
For further information relating to the
San Antonio Project please see the technical
report titled "NI 43-101 Technical Report for the 2022 Mineral
Resource Estimate on the San Antonio Project, Sonora, Mexico",
dated July 12, 2022 (with an effective Date of June 24, 2022)
prepared for the Company by Micon International Limited (the
"San Antonio Technical Report"). Reference should
be made to the full text of the San Antonio Technical Report, which
was prepared in accordance with NI 43-101 and is available
electronically on SEDAR (www.sedar.com) under Osisko Development's
issuer profile.Cautionary Statements
Information used in the technical reports
identified above uses the terms measured, indicated, and inferred
mineral resources as a relative measure of the level of confidence
in the resource estimate. Readers are cautioned that mineral
resources are not economic mineral reserves and that the economic
viability of mineral resources that are not mineral reserves has
not been demonstrated. The estimate of mineral resources may be
materially affected by geology, environmental, permitting, legal,
title, socio-political, marketing, or other relevant issues. It
cannot be assumed that all or any part of an inferred mineral
resource will ever be upgraded to an indicated or measured mineral
resource category. The mineral resource estimate is classified in
accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum's "CIM Definition Standards on Mineral Resources and
Mineral Reserves" incorporated by reference into NI 43-101. Under
Canadian rules, estimates of inferred mineral resources may not
form the basis of feasibility or pre-feasibility studies or
economic studies except for a preliminary economic assessment as
defined under NI 43-101. Readers are cautioned not to assume that
further work on the stated resources will lead to mineral reserves
that can be mined economically. Readers are cautioned that the
Cariboo Technical Report (as defined above), being a preliminary
economic assessment (within the meaning of NI 43-101), is
preliminary in nature and includes inferred mineral resources that
are considered too speculative geologically to have economic
consideration applied to them that would enable them to be
categorized as mineral reserves. There is no certainty that the
preliminary economic assessment (within the meaning of NI 43-101)
will be realized.
The Company cautions that the decision to
commence production at Trixie and process material at San Antonio
was taken without the benefit of a feasibility study, or, in the
case of Trixie, reported mineral resources or, in each case,
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
or San Antonio, the Company will not be basing its decision to
continue such operations on a feasibility study, or, in the case of
Trixie, reported mineral resources or, in each case, mineral
reserves demonstrating economic and technical viability. The
Company cautions that mining at Trixie and processing of material
at San Antonio could be suspended at any time. The 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, including the information in the
Tintic Technical Report and this news release, 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 SEC.
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, 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 interest in the San Antonio gold project,
located in Sonora, Mexico and the Trixie gold test mine, located in
Utah, U.S.A.
For further information about Osisko
Development, please visit www.osiskodevelopment.com or follow us on
Twitter @OsiskoDev
For further
information, please contact Osisko Development Corp.: |
|
Laurence FarmerGeneral Counsel
and Vice President, Strategic Developmentlfarmer@osiskodev.comTel:
514-607-6045 |
|
Forward-looking Statements
Certain statements contained in this news
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. 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, and that the deposit remains open for expansion at
depth and along strike, as well as other considerations that are
believed to be appropriate in the circumstances, and any other
information herein that is not a historical fact may be "forward
looking information". Material assumptions also include,
management's perceptions of historical trends, current conditions
and expected future developments, the ability to continue
production, 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 capital market conditions, the ability to
continue current production, regulatory framework, 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 stream interests in
the Project; the ability of the Company to obtain required
approvals; the results of exploration activities; risks relating to
exploration, development and 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. Readers are urged to consult the disclosure provided (i)
under the heading "Risk Factors" in the annual information form of
the Company for the year ended December 31, 2021, as amended, and
(ii) under the heading "Risks and Uncertainties" in the
management's discussion and analysis of the Company for the year
ended December 31, 2021, as amended, each of which has been filed
on SEDAR (www.sedar.com) under Osisko Development's issuer profile
and on the SEC's EDGAR website (www.sec.gov), for further
information regarding the risks and other factors applicable to the
exploration results. Although the Company's believes the
expectations conveyed by the forward-looking statements are
reasonable based on information available at the date of
preparation, no assurances can be given as to future results,
levels of activity and achievements. The Company disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or results or otherwise,
except as required by law. There can be no assurance that these
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
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.
1 "oz/t" refers to ounces per ton.2 "Au" refers to gold.3 "g/t"
refers to grams per tonne.
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