Osisko Development (NYSE: ODV) (TSXV: ODV), a Montreal-based gold mining company, has completed a feasibility study for its gold project in central British Columbia and expects the site to be a large-scale profitable mining operation with a long life.
The company announced the results of the Cariboo gold project study on Tuesday and now anticipates that the site will generate 1.87 million ounces of gold over the course of 12 years with an average annual production rate of 163,695 ounces.
Osisko expects to have an average annual after-tax free cash flow of $79 million and a cumulative amount of $901 million after-tax for the mine’s lifespan.
Osisko Development announces positive Feasibility Study results for the Cariboo Gold Project
Full news release: https://t.co/ZDroCdxqMP
Presentation: https://t.co/R4hfxM9knO$ODV $ODV.V #osisko #gold #inflation #CaribooGoldProject #miningnews #feasibility pic.twitter.com/d0a62JE636
— Osisko Development (@OsiskoDev) January 3, 2023
Cariboo is an advanced-stage gold exploration project located southeast of the city of Quesnel. Osisko says the total land package for the project covers approximately 155,000 hectares.
The company estimates the project will incur a total sustaining capital cost of about $467 million over the course of the mine’s life. The overall project gold recovery rate for the duration of the mine’s life is expected to be approximately 92 per cent.
“This feasibility study demonstrates that the Cariboo gold project will be a large-scale, long-life and profitable gold mine. It will also produce significant quantities of gold in its initial years at a capital cost below $140 million,” said Sean Roosen, CEO of Osisko.
“We envision Cariboo as a project that will be a cash flow engine for the company for decades into the future,” added Roosen.
“Once underground, we are excited to apply our strong understanding of the controls on mineralization to unlock Cariboo’s vast exploration potential at depth within the current mining zones, which we believe have strong potential to continue across Cariboo’s 83-kilometre mineralized trends.”