Osisko Development's Cariboo Gold Project Feasibility Study Shows Positive Results

Osisko Development Corp. has announced positive results from an independent Feasibility Study (FS) for its 100%-owned Cariboo Gold Project, located in central British Columbia. The study indicates the project could achieve an average annual gold production of 163,695 ounces over a 12-year mine life.

The initial probable mineral reserves are estimated at 2.03 million ounces of gold. The project is projected to produce a total of 1.87 million ounces of gold over its life. The project's after-tax net present value (NPV5%) stands at C$502 million with an internal rate of return (IRR) of 20.7%, based on an assumed gold price of US$1,700 per ounce.

The operation will utilize mechanized bulk tonnage underground mining methods, incorporating ore sorting to minimize costs and environmental impact. Phase 1, spanning the first three years, involves a 1,500 tonne per day operation. This will ramp up to 4,900 tonnes per day in Phase 2, significantly increasing average annual production.

Low initial capital expenditures of C$137.3 million for Phase 1, along with projected operating costs, support the project's economic viability. The company is also progressing through the environmental assessment process and anticipates receiving final permits by the end of 2023.

Osisko Development aims to leverage Cariboo's extensive potential for decades. The company believes there is significant upside potential at depth and beyond the current mineralized zones.