Osisko Development (TSXV:ODV) - Permitted Cariboo Project Towards Becoming 500,000 Oz Gold Camp

Interview with Sean Roosen, Founder & CEO of Osisko Development Corp.

Our previous interview: https://www.cruxinvestor.com/posts/osisko-development-tsxvodv-advancing-canadas-high-grade-cariboo-gold-project-towards-production-5980

Recording date: 5th December 2024

Osisko Development, led by renowned mining entrepreneur Sean Roosen, is focused on advancing its flagship Cariboo Gold Project in central British Columbia towards production. With key permits in hand, a strong treasury, and a robust resource base, Osisko believes Cariboo has the potential to become a high-margin, long-life mining district producing around 200,000 ounces of gold per year with significant expansion potential.

One of the most important recent milestones was the receipt of the Cariboo mine permit in late 2024 after nearly five years in the permitting process. Osisko was the first company to go through BC's new streamlined permitting system. With permits for mine construction and operation secured, Osisko can move forward with development, including underground drilling to expand and upgrade the deposit.

Osisko is well-funded to advance Cariboo after closing a US$92 million (C$130 million) financing in that was nearly 100% oversubscribed. The company now has approximately US$140 million in the bank. CEO Sean Roosen believes Osisko is in a unique position with permits, capital, and a large gold resource in hand.

The current Cariboo resource includes reserves of 2 million ounces grading 3.8 g/t gold, with an additional 3.3 million inferred resource ounces. A 2023 feasibility study outlined of up to 5,000 ton per day underground mine producing 194,000 ounces of gold annually at all-in sustaining costs of US$968 per ounce.

However, Roosen sees much greater potential at Cariboo. He believes the project could host a series of deposits underpinning a major mining camp producing over 500,000 ounces per year from a central mill. The deposit remains open at depth and along a 4.4 km strike length, with reserves only extending to 350 meters depth so far.

Osisko aims to prove the mining camp potential in the coming quarters through drilling and technical studies. If successful, Roosen believes Cariboo has the potential to underpin a mid-tier gold producer valued at a significant premium to Osisko's current C$300 million market capitalization.

"I believe that this is a mining camp," said Roosen. "If we were to get to 15,000 tons a day we would be in big mine country at 500,000 ounces a year plus. I think at the end of the day, we have the ability if we look at depth here, the first 4.4 km relatively low cost, we can add significant ounces. It's probably around $20-30 million per million ounces just to keep adding at depth and we can do that all the way down to 1,500 meters probably."

Roosen is a proven mine-builder, having constructed and operated Canada's largest gold mine, Canadian Malartic, which produces over 700,000 ounces of gold annually. He aims to leverage that experience to build Cariboo into another major Canadian gold district.

With a rising gold price, strong investor interest in gold equities, key permits, and a large resource, Osisko Development appears well-positioned to advance Cariboo and unlock the project's full potential in the coming years. Investors can look forward to a number of key catalysts, including an updated feasibility study and bulk sample results.

View Osisko Development's company profile: https://www.cruxinvestor.com/companies/osisko-development