Osisko Development Corp. (NYSE: ODV, TSXV: ODV)
("
Osisko Development" or the
"
Company") is pleased to report its financial and
operating results for the three months ended September 30, 2023
("
Q3 2023").
Q3 2023 HIGHLIGHTS
Operating, Financial and Corporate
Updates:
- 3,867 ounces of
gold sold by the Company from operating activities, comprising of:
- 1,776 ounces of gold sold from the
Trixie test mine ("Trixie") located within the
Company's wider Tintic Project;
- 803 ounces of gold sold from the
San Antonio Gold Project ("San Antonio") by
processing stockpiles via heap leaching; and
- 1,288 ounces of
gold sold from the Cariboo Gold Project
("Cariboo") by processing stockpiles at a
third-party processing facility.
- $10.4 million in
revenues and $10.1 million in cost of sales generated from
operating activities.
- On July 6, 2023,
the Company announced that in accordance with the terms of its
previously-completed acquisition in May 2022 of a 100% ownership
interest in the Tintic Project, it had satisfied the first of five
deferred payments to the sellers. Deferred consideration of
US$2,500,000 was satisfied by an amount of US$250,000 ($334,400)
paid in cash in June 2023 and an amount of US$2,250,000
($2,986,425) settled by the issuance of 454,026 common shares on
July 6, 2023.
- As at September 30, 2023, the Company had approximately $71.5
million in cash.
Tintic Project – Utah, U.S.A.
(100%-owned)
- The development
of the 1,390 meter ("m") (4,550 feet
("ft.")) Trixie portal and underground decline
ramp, which commenced in July 2022, was completed on budget to the
625 level during Q3 2023 with the breakthrough occurring at the end
of September (see Figure 1).
Figure
1: Breakthrough of the Trixie Brandy Lee decline to 625
ft. level achieved in September 2023
- The Company
anticipates that the decline ramp will improve underground access
for exploration, and may potentially support an increase in
productivity and mining rates in the future.
- Target to ramp
up processing capacity up to 500 short tons per day is subject to
completion of required mine and mill infrastructure upgrades,
completion of an updated mineral resources estimate
("MRE") in accordance with NI 43-101 (as defined
herein) and ongoing technical work.
- During Q3 2023,
the Company continued underground exploration and delineation
activities on the existing Trixie deposit with two diamond drill
rigs operating as part of its 2023 underground infill and
exploration program. This portion of the 2023 exploration drill
program is now complete.
- As of September
30, 2023, a total of 6,194 m (20,322 ft.) were drilled in 73 holes,
including an additional 1 geotechnical hole totalling 349 m (1,145
ft.), with assay results for 14 diamond drilling holes released on
July 18, 2023. Assay results for an additional 17 holes were
released on October 11, 2023 (see Subsequent to Q3 2023). Assay
results for the remaining drill holes are pending.
- The Company is
currently working on an updated MRE for the Trixie deposit to
incorporate the new 2023 drilling and the remaining 2022 drilling
that was not included in the Tintic Technical Report (as defined
herein) published on January 27, 2023 (with an effective date of
January 10, 2023), due to assay lab delays. This new MRE is
expected to be completed once the 2023 drilling program has
concluded, and all assay results have been received.
- An initial
regional surface diamond drilling campaign to test for
copper-gold-molybdenum porphyry mineralization potential, namely in
the Big Hill area, is anticipated to commence in the coming months,
subject to receipt of surface drill permits.
- Data compilation
from historic mines in the area is ongoing and anticipated to
generate additional exploration drill targets on the greater Tintic
Project property.
Cariboo Gold Project – British Columbia,
Canada (100%-owned)
- Subsequent to Q3
2023, on October 10, 2023, the Company announced that it received
an Environmental Assessment ("EA") Certificate for
the Company's 100%-owned Cariboo Gold Project. The EA Certificate
was granted by the Environmental Assessment Office of the Province
of British Columbia ("EAO") and supported by
approval decisions from The Honourable George Heyman, Minister of
Environment and Climate Change Strategy and The Honourable Josie
Osbourne, Minister of Energy, Mines and Low Carbon Innovation. The
EA process was completed in consultation with and support of the
First Nations partners.
- Receipt of the
EA Certificate successfully concludes the EA process for the
Cariboo Gold Project, which was launched in October 2019 (see
Figure 2).
Figure
2: Cariboo Gold Project – Permitting Timeline Summary
- A Joint Permit
Application for the BC Mines Act / Environmental Management Act is
in process. The Company anticipates receiving permits in Q2
2024.
- Development of
the Cariboo Gold Project may provide a basis for progress towards
the establishment of a broader mining district camp, including
development of multiple deposits over several trends totalling
approximately 80 km of mineralization. For further information
regarding Cariboo and the Cariboo Feasibility Study refer to
Technical Reports below.
San Antonio Gold Project – Sonora State,
Mexico (100%-owned)
- As of September
30, 2023, the Company sold a total of 13,591 ounces of gold from
the San Antonio heap leach pad since commencing processing of
stockpile inventory in Q1 2022. A total of 803 ounces of gold was
sold in Q3 2023.
- During Q3 2023,
processing of the remaining stockpile inventory was completed, with
no production anticipated henceforth.
- The Company
awaits next steps from the government of Mexico with respect to the
permitting process.
SUBSEQUENT TO Q3 2023
- On October 11,
2023, the Company disclosed assay results from 17 diamond drilling
holes from new development areas as part of the ongoing 2023
underground infill and exploration program at Trixie. Select assay
results highlights included (see news release dated October 11,
2023):
- 54.95
grams per tonne ("g/t") gold
("Au") and 1,143.21 g/t silver
("Ag") over 2.59 m in hole TRXU-DD-23-045 (1.60
troy ounces per short ton ("oz/t") Au and 33.34
oz/t Ag over 8.50 ft.).
- On October 11,
2023, the Company announced that drilling of the Trixie West
high-priority copper-gold molybdenum potential porphyry target
commenced from underground at Trixie. The objective of the program
is to test a new area below the Trixie deposit for a potential
porphyry style mineral system that may have been the source of the
significant high-grade gold and silver epithermal mineralization
and past producing carbonate silver-lead-zinc replacement
deposits.
Consolidated Financial
Statements
The Company's unaudited interim consolidated
financial statements (the "Financial Statements")
and management's discussion and analysis
("MD&A") for the three and nine months ended
September 30, 2023 are available on the Company's website at
www.osiskodev.com, on SEDAR+ (www.sedarplus.ca) and on EDGAR
(www.sec.gov) under Osisko Development's issuer profile.
Qualified Persons
The scientific and technical information
contained in this news release has been reviewed and approved by
Maggie Layman, P.Geo., Vice President, Exploration of Osisko
Development, and François Vézina, ing., P.Eng., MBA, Senior Vice
President, Project Development, Technical Services and Environment,
each of whom is a "qualified person" within the meaning of NI
43-101.
Technical Reports
Information relating to the Tintic Project and
the current MRE for the Trixie deposit is supported by the
technical report titled "NI 43-101 Technical Report, Initial
Mineral Resource Estimate for the Trixie Deposit, Tintic Project,
Utah, United States of America", dated January 27, 2023 (with an
effective date of January 10, 2023) prepared for the Company by
independent representatives of Micon International Limited (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.sedarplus.ca) and on EDGAR
(www.sec.gov) under Osisko Development's issuer profile and on the
Company's website at www.osiskodev.com.
Information relating to Cariboo and the Cariboo
FS is supported by the technical report titled "Feasibility Study
for the Cariboo Gold Project, District of Well, British Columbia,
Canada", dated January 10, 2023 (amended January 12, 2023) with an
effective date of December 30, 2022) prepared for the Company by
independent representatives BBA Engineering Ltd. and supported by
independent consulting firms, including InnovExplo Inc., SRK
Consulting (Canada) Inc., Golder Associates Ltd. (amalgamated with
WSP Canada Inc. on January 1, 2023, to form WSP Canada Inc.), WSP
USA Inc., Falkirk Environmental Consultants Ltd., Klohn Crippen
Berger Ltd., KCC Geoconsulting Inc., and JDS Energy & Mining
Inc. (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.sedarplus.ca) and on EDGAR
(www.sec.gov) under Osisko Development's issuer profile and on the
Company's website at www.osiskodev.com.
Information relating to San Antonio is supported
by 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 independent representatives of
Micon International Limited (the "San Antonio Technical
Report", collectively with the Trixie Technical Report and
Cariboo Technical Report, the "Technical
Reports"). 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.sedarplus.ca) and on EDGAR (www.sec.gov) under Osisko
Development's issuer profile and on the Company's website at
www.osiskodev.com.
ABOUT OSISKO
DEVELOPMENT CORP.
Osisko Development Corp. is a premier North
American gold development company focused on high-quality
past-producing properties located in mining friendly jurisdictions
with district scale potential. The Company's objective is to become
an intermediate gold producer by advancing its 100%-owned Cariboo
Gold Project, located in central B.C., Canada, the Tintic Project
in the historic East Tintic mining district in Utah, U.S.A., and
the San Antonio Gold Project in Sonora, Mexico. In addition to
considerable brownfield exploration potential of these properties,
that benefit from significant historical mining data, existing
infrastructure and access to skilled labour, the Company's project
pipeline is complemented by other prospective exploration
properties. The Company's strategy is to develop attractive,
long-life, socially and environmentally sustainable mining assets,
while minimizing exposure to development risk and growing mineral
resources.
For further information, visit our website at
www.osiskodev.com or contact:
Sean Roosen |
Philip Rabenok |
Chairman and CEO |
Director, Investor Relations |
Email: sroosen@osiskodev.com |
Email: prabenok@osiskodev.com |
Tel: +1 (514) 940-0685 |
Tel: +1 (437) 423-3644 |
CAUTIONARY STATEMENTS
Cautionary Statement Regarding Estimates of
Mineral Resources
This news release 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 mineral reserves and that
the economic viability of resources that are not mineral reserves
has not been demonstrated. The mineral resource estimate disclosed
in this news release may be materially affected by geology,
environmental, permitting, legal, title, socio-political, marketing
or other relevant issues. 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 NI 43-101, estimates of inferred mineral resources
may not form the basis of feasibility or pre-feasibility studies or
economic studies except for preliminary economic assessments.
Readers are cautioned not to assume that further work on the stated
resources will lead to mineral reserves that can be mined
economically.
Cautionary Statement Regarding Financing
Risks
The Company's development and exploration
activities are subject to financing risks. At the present time, the
Company has exploration and development assets which may generate
periodic revenues through test mining, but has no mines in the
commercial production stage that generate positive cash flows. The
Company cautions that test mining at its operations could be
suspended at any time. The Company's ability to explore for and
discover potential economic projects, and then to bring them into
production, is highly dependent upon its ability to raise equity
and debt capital in the financial markets. Any projects that the
Company develops will require significant capital expenditures. To
obtain such funds, the Company may sell additional securities
including, but not limited to, the Company's shares or some form of
convertible security, the effect of which may result in a
substantial dilution of the equity interests of the Company's
Shareholders. Alternatively, the Company may also sell a part of
its interest in an asset in order to raise capital. There is no
assurance that the Company will be able to raise the funds required
to continue its exploration programs and finance the development of
any potentially economic deposit that is identified on acceptable
terms or at all. The failure to obtain the necessary financing(s)
could have a material adverse effect on the Company's growth
strategy, results of operations, financial condition and project
scheduling.
Cautionary Statement Regarding Test Mining
Without Feasibility Study
The Company cautions that its prior decision to
commence small-scale underground mining activities and batch vat
leaching at the Trixie test mine was made 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. Small
scale test-mining at Trixie was suspended in December 2022 and
resumed in the second quarter of 2023. Even with the resumption of
small-scale test-mining at Trixie, 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, the Company has not based its decision to continue such
operations on a feasibility study, or reported mineral resources or
mineral reserves demonstrating economic and technical
viability.
Cautionary Statement to U.S. Investors
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 its technical reports,
financial statements, MD&A 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 its technical reports,
financial statements, MD&A 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 U.S.
Securities and Exchange Commission ("SEC").
CAUTION REGARDING 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 (together,
"forward-looking statements"). 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 the assumptions, qualifications
and limitations relating to the Trixie portal and underground
decline ramp; the anticipated benefits of the decline ramp; the
target to ramp-p processing capacity; the timing and ability to
complete a MRE on the Trixie deposit; the results in the Technical
Reports; the capital resources available to Osisko Development; the
ability of the Company to execute its planned activities, including
as a result of its ability to seek additional funding or to reduce
planned expenditures; the ability of the Company to obtain future
financing and the terms of such financing; management's perceptions
of historical trends, current conditions and expected future
developments; the utility and significance of historic data,
including the significance of the district hosting past producing
mines; future mining activities; the timing and status of
permitting; the potential of high grade gold mineralization on
Trixie and Cariboo; the results (if any) of further exploration
work to define and expand mineral resources; the ability of
exploration work (including drilling) to accurately predict
mineralization; the ability to generate additional drill targets;
the ability of management to understand the geology and potential
of the Company's properties; the ability of the Company to expand
mineral resources beyond current mineral resource estimates; the
timing and ability of the Company to complete upgrades to the
mining and mill infrastructure at Trixie (if at all); continuation
of test mining activities at Trixie (if at all); the timing and
ability of the Company to ramp up processing capacity at Trixie to
500 short tons per day (if at all); the ability of the Company to
complete its exploration objectives for its projects in 2023 in the
timing contemplated (if at all); the ongoing advancement of the
deposits on the Company's properties; the deposit remaining open
for expansion at depth and down plunge; the ability to realize upon
any mineralization in a manner that is economic; the Cariboo
project design and ability and timing to complete infrastructure at
Cariboo (if at all); the ability and timing for Cariboo to reach
commercial production (if at all); the ability to adapt to changes
in gold prices, estimates of costs, estimates of planned
exploration and development expenditures; the ability of the
Company to obtain further capital on reasonable terms; the
profitability (if at all) of the Company's operations; the Company
being a well-positioned gold development company in Canada, USA and
Mexico; the ability and timing for the permitting at San Antonio;
the impact of permitting delays at San Antonio; sustainability and
environmental impacts of operations at the Company's properties; 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, the ability of exploration (including drilling) to
accurately predict mineralization, budget constraints and access to
capital on terms acceptable to the Company, current conditions and
expected future developments, regulatory framework remaining
defined and understood, results of further exploration work to
define or expand any mineral resources, 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 and the Company's ability to access
capital on terms acceptable to the Company for the contemplated
exploration and development at the Company's properties; the
ability to continue current operations and exploration; regulatory
framework and presence of laws and regulations that may impose
restrictions on mining; the ability of exploration activities
(including drill results) to accurately predict mineralization;
errors in management's geological modelling; the ability to expand
operations or complete further exploration activities; the timing
and ability of the Company to obtain required approvals and
permits; the results of exploration activities; risks relating to
exploration, development and mining activities; the global economic
climate; metal and commodity prices; fluctuations in the currency
markets; dilution; environmental risks; and community,
non-governmental and governmental actions and the impact of
stakeholder actions. Readers are urged to consult the disclosure
provided under the heading "Risk Factors" in the Company's annual
information form for the year ended December 31, 2022 as well as
the financial statements and MD&A for the year ended December
31, 2022, which have been filed on SEDAR+ (www.sedarplus.ca) 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 as of the
date hereof, 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. Forward-looking statements are not
guarantees of performance and 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.
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/72e064fb-a87d-4aa2-a76e-e4a013863f0f
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