Osisko Development

Highlights

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Location
British Columbia, Canada

Ownership
100%

Mine Type
Underground

Land Package
~192,000 hectares

Metals
Gold, Silver

Project Status
Shovel ready (permits granted Q4 24)

Overview

The Cariboo Gold Project is a fully permitted feasibility level gold project located in central British Columbia in the historical Wells-Barkerville mining camp. The total land package covers an area of 192,000 hectares and includes approximately 80 kilometers strike of mineral targets providing prospective opportunities for future discoveries.

A Feasibility Study on the Cariboo Gold Project, released in early 2023, envisions a robust and scalable underground operation expected to produce approximately 1.87 million ounces of gold over a 12-year mine life, with an after-tax NPV5% of C$502 million and 20.7% IRR at a US$1,700/oz gold price. The Project received an Environmental Assessment Certificate on October 10, 2023, in accordance with the BC Environmental Assessment Act (2018). Receipt of the EA Certificate successfully concludes the EA process for the Project, which was launched in October 2019. The Company was granted the BC Mines Act permits and Environmental Management Act permits in Q4 2024.

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Cariboo Gold Project Factsheet

Feasibility Study

January 2023

Information relating to Cariboo and the Cariboo Feasibility Study 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.

Table 1: Cariboo Feasibility Study Highlights

METRIC	UNIT	PHASE 1	PHASE 2	TOTAL LOM
Base Case Assumptions
Gold Price	US$/oz	1,700
Exchange Rate	CAD:USD	0.77
Discount Rate	%	5.0%
Production
Mine Life	years	3	9	12
Total Ore Mined	tonnes	1,542,471	15,160,983	16,703,454
Average Throughput	tpd	1,500	4,900	4,056
Average Gold Head Grade, diluted	g/t Au	4.43	3.72	3.78
Total Contained Gold	oz	219,488	1,811,665	2,031,152
Average Gold Recovery Rate	%	93.6%	91.8%	92.0%
Total Recovered Gold, payable	oz	205,419	1,663,436	1,868,856
Average Annual Gold Production	oz/year	72,501	193,798	163,695
Unit Operating Costs
Underground Mining	$/t mined	77.6	51.1	53.6
Processing	$/t mined	37.1	25.3	26.4
Concentrate Transport	$/t mined	17.3	3.5	4.8
Water and Waste Management	$/t mined	18.4	6.1	7.2
General and Administrative	$/t mined	19.4	9.8	10.7
Total Unit Operating Costs	$/t mined	169.8	95.8	102.6
Operating Costs
Total Cash Costs²	US$/oz	1,149	748	792
AISC2	US$/oz	1,634	886	968
Capital Expenditures³
Initial Capital	$M	137.3	–	137.3
Expansion Capital	$M	–	451.1	451.1
Sustaining Capital	$M	134.2	332.4	466.6
Total	$M	271.5	783.5	1,055.0

View Notes [+]

Totals may not add up due to rounding.
This is a non-IFRS measure. Refer to "Non-IFRS Financial Measures" at the end of this news release.
Capital Expenditures do not include sunk costs ($2.5M) nor pre-permit expenses ($64.8M)

Table 2: Economic Sensitivities to Gold Price (base case in bold)

		Gold Price Assumption (US$/oz)
LOM METRIC	UNIT	1,300	1,400	1,500	1,600	1,700	1,800	1,900	2,000
NPV5%, pre-tax	$M	38.3	201.4	364.5	527.6	690.6	853.7	1,016.8	1,179.8
NPV5%, after-tax	$M	-2.9	157.5	284.9	394.5	502.4	609.3	715.1	820.7
IRR, pre-tax	%	6.2%	11.0%	15.6%	20.1%	24.4%	28.7%	33.0%	37.3%
IRR, after-tax	%	4.9%	9.8%	13.6%	17.2%	20.7%	24.3%	27.8%	31.4%
Payback, pre-tax	years	9.0	7.7	6.8	6.2	5.8	5.4	5.1	4.8
Payback, after-tax	years	9.5	8.0	7.0	6.3	5.9	5.5	5.2	4.9

Mineral Reserves & Resources

Mineral Resources Estimate (November 11, 2022) – Exclusive of Mineral Reserves

The 2022 Feasibility Study (“FS”) mineral resource estimate (“MRE”) covers all the deposits in the Cow-Island-Barkerville Mountain Corridor. The resource area for the Cow Mountain/Island Mountain segment covers a strike length of 3.7 km and a width of approximately 700 metres (“m”), down to a vertical depth of 600 m below surface. The estimate for the Barkerville Mountain segment covers a strike length of 3 km and a width of approximately 700 m, down to a vertical depth of 500 m below surface.

The QPs have classified the 2022 Feasibility Study MRE as Measured, Indicated, and Inferred Mineral Resources based on data density, search ellipse criteria, drill hole density, and interpolation parameters. The 2022 Feasibility Study MRE is considered to be reliable and established on quality data and geological knowledge. The 2022 Feasibility Study MRE follows the 2014 CIM Definition Standards on Mineral Resources and Reserves.

Mineral Resources	Measured			Indicated			Measured & Indicated			Inferred
Deposit	Tonnes (000’s)	Grade (g/t)	Ounces (000’s)	Tonnes (000’s)	Grade (g/t)	Ounces (000’s)	Tonnes (000’s)	Grade (g/t)	Ounces (000’s)	Tonnes (000’s)	Grade (g/t)	Ounces (000’s)
Bonanza Ledge	47	5.06	8	32	4.02	4	79	4.64	12	–	–	–
BC Vein	–	–	–	1,030	3.12	103	1,030	3.12	103	461	3.55	53
KL	–	–	–	386	3.18	39	386	3.18	39	1,918	2.75	169
Lowhee	–	–	–	1,368	3.18	140	1,368	3.18	140	445	3.34	48
Mosquito	–	–	–	1,288	3.68	152	1,288	3.68	152	1,290	3.55	147
Shaft	–	–	–	4,781	3.39	523	4,781	3.39	523	6,468	3.84	800
Valley	–	–	–	2,104	3.14	213	2,104	3.14	213	2,119	3.30	225
Cow	–	–	–	3,644	3.31	388	3,644	3.31	388	2,769	3.03	270
TOTAL RESOURCES	47	5.06	8	14,635	3.32	1,564	14,682	3.33	1,571	15,470	3.44	1,712

View Notes [+]

Mineral Resources are exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
The Mineral Resource Estimate conforms to the 2014 CIM Definition Standards on Mineral Resources and Reserves and follows the 2019 CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.
A total of 481 vein zones were modelled for the Cow Mountain (Cow and Valley), Island Mountain (Shaft and Mosquito), Barkerville Mountain (BC Vein, KL, and Lowhee) deposits and one gold zone for Bonanza Ledge. A minimum true thickness of 2.0 m was applied, using the Au gold grade of the adjacent material when assayed or a value of zero when not assayed.
The estimate is reported for a potential underground scenario at a cut-off grade of 2.0 g/t Au, except for Bonanza Ledge at a cut-off grade of 3.5 g/t Au. The cut-off grade for the Cow, Valley, Shaft, Mosquito, BC Vein, KL, and Lowhee deposits was calculated using a gold price of US$1,700/oz; a USD:CAD exchange rate of 1.27; a global mining cost of $54.32/t; a processing and transport cost of $22.29/t;a G&A plus Environmental cost of $15.31/t; and a sustaining CapEx cost of $31.19/t. The cut-off grade for the Bonanza Ledge deposit was calculated using a gold price of US$1,700/oz; a USD:CAD exchange rate of 1.27; a global mining cost of $79.13/t; a processing and transport cost of $65.00/t; and a G&A plus Environmental cost of $51.65/t. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, mining cost, etc.).
Bulk density varies from 2.69 g/cm3 to 3.20 g/cm3.
A four-step capping procedure was applied to composited data. Restricted search ellipsoids ranged from 7 to 50 g/t Au at four different distances ranging from 25 m to 250 m. High-grades at Bonanza Ledge were capped at 70 g/t Au on 2.0 m composited data.
The gold Mineral Resources for the Cow, Valley, Shaft, Mosquito, BC Vein, KL, and Lowhee vein zones were estimated using Datamine StudioTM RM 1.9 software using hard boundaries on composited assays. The silver Mineral Resources and the dilution halo gold mineralization were estimated using Datamine StudioTM RM Pro 1.11. The OK method was used. Mineral Resources for Bonanza Ledge were estimated using GEOVIA GEMSTM 6.7 software using hard boundaries on composited assays. The OK method was used to interpolate a block model.
Results are presented in situ. Calculations used metric units (meters, tonnes, g/t). Any discrepancies in the totals are due to rounding effects.

Mineral Reserves Estimate (December 6, 2022)

Mineral Reserves were classified in compliance with the CIM Definition Standards for Mineral Resources and Mineral Reserves. As such, the Mineral Reserves are based on Measured and Indicated Mineral Resources and do not include any Inferred Mineral Resources. Measured and Indicated Mineral Resources are exclusive of proven and probable reserves. Mineral Reserves are the estimated tonnage and grade of ore that is considered economically viable for extraction.

Mineral Reserves for the Project deposit incorporate dilution and mining recovery factors based on the selected mining method and design. In addition, economic analyses were completed to validate the profitability of particular areas of the reserves.

MINERAL RESERVES	PROBABLE RESERVES
Deposit	Tonnes (000’s)	Grade (g/t)	Ounces (000’s)
Cow	4,127	3.41	453
Valley	3,445	3.70	410
Shaft	7,962	3.87	990
Mosquito	603	4.93	95
Lowhee	567	4.56	83
TOTAL RESERVES	16,703	3.78	2,031

View Notes [+]

Totals may not add up due to rounding.
Mineral Reserves have been estimated in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (2014), which are incorporated by reference in NI 43-101.
Mineral Reserves used the following assumptions: US$1,700/oz gold price, USD:CAD exchange rate of 1.27, and variable cut-off value from 1.70 g/t to 4.00 g/t Au
Mineral Reserves include both internal and external dilution along with mining recovery. The external dilution is estimated to be 8%. The average mining recovery factor was set at 93.6% to account for ore left in each block in the margins of the deposit.