Osisko Development Announces Receipt of Final Permits for The Bonanza Ledge II Mine and Quesnel River Mill
October 27 2021 - 7:00AM
The Province of British Columbia, Lhtako Dené First Nation and
Osisko Development Corp. (“
Osisko Development” or
the “
Company”) are pleased to announce 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 (“
Bonanza Ledge II”) with an
increase in production from 150,000 t/yr to 215,000 t/yr. These
amendments support the ongoing employment of 127 workers at the
mine. The ore will be trucked from Bonanza Ledge II to the
Quesnel River Mill (“
QR Mill”) for processing and
tailings storage. The anticipated mine life of Bonanza Ledge II is
approximately 18 months. The expansion of the Bonanza Ledge II
project allows for continuity of mining while the Cariboo Gold
project (“
Cariboo Gold”) Environmental Assessment
proceeds. If approved, the Cariboo Gold project will extend mining
by an additional 16 years and employ 459 people.
The Bonanza Ledge II deposit is located within
the broader Cariboo Gold mining camp which is 100% owned by
Barkerville Gold Mines Ltd., a wholly owned subsidiary of Osisko
Development. Cariboo Gold is currently undergoing an Environmental
Assessment under British Columbia’s Environmental Assessment Act
(2018) and is moving along according to timelines set under this
new act. If the project is granted environmental assessment
approval, it will provide employment, training and opportunities
for meaningful economic partnerships for First Nations local
communities and the Province of British Columbia. The project will
be powered by hydro-electricity providing it with a sustainable
source of low-carbon power.
Bruce Ralston, Minister of Energy, Mines
and Low Carbon Innovation says, “I am pleased to see the
Bonanza Ledge II project become a reality through a partnership
between the Lhtako Dené Nation and Osisko Development Corp. This
project promises to be a welcome opportunity for the surrounding
communities and an example of industry working with First Nations
to create meaningful partnerships while protecting our environment
by harnessing the power of hydroelectricity to run their
operation.”
Chief Clifford Lebrun of the Lhtako Dené
First Nation comments, “The Bonanza Ledge II project
receipt of permits marks another milestone in what has turned out
to be a very beneficial partnership between Lhtako Dené Nation and
Osisko Development Corp. This partnership illustrates that First
Nations and Industry can work together in a good way for the
benefit of both partners, economically and with Community growth
for Wells, Quesnel and the Lhtako Dené Nation. Its more than jobs
and contract opportunities or training, it’s the development and
growth of all three communities and all the ones in between that is
important here. The Lhtako Dené Nation looks forward to working
together with Osisko Develoment Corporation in the future to move
these values forward.”
Sean Roosen, Chair and Chief Executive
Officer of Osisko Development states, “The Bonanza Ledge
II project is an important milestone for the growth of Osisko
Development. This will provide hands on training and commissioning
of our mining and processing complex at the Cariboo Gold Project as
well as contributing important economic and social benefits for our
partner First Nations and communities. Also receipt of these
permits demonstrates the strong and efficient support of the
province towards the safe, environmentally responsible and socially
acceptable growth of British Columbia ’s mining industry.”
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.
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
management’s perceptions of historical trends, current conditions
and expected future developments, including with respect to the
development and exploration potential of the Cariboo Gold project
and other Canadian and Mexican properties, the outcome of the
Environmental Assessment of the Cariboo Gold Projects and the
expected timeline to receive such Environmental Assessment approval
and the expected benefits of the Cariboo Gold project tp all
stakeholders, the expected production from mining activities at the
Bonanza Ledge II mine as well as the expected mine life
thereof, Osisko Development becoming the next mid-tier gold
producer and the timely completion and outcome of the Cariboo Gold
Project feasibility study, 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.
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