Osisko Mining delivers robust PEA update for Windfall
(Kitco News) - Today, Osisko Mining (OSK:TSX) announced significant positive results from the independent Preliminary Economic Assessment ("PEA") on its 100% owned Windfall gold project located in the Abitibi greenstone belt, Urban Township, Eeyou Istchee James Bay, Québec.
According to the company's statement, the PEA provides a robust base case assessment for developing the Windfall gold deposit as an underground dual ramp-access mine with a central processing mill at the site.
The company said that during first 7 years of full production Osisko plans to produce 300,000 oz Au per year average at 8.1 g/t Au average diluted grade with peak recovery of 328,000 oz Au in year 6; average production over 18-year life of mine is 238,000 oz Au per year.
The project's pre-tax IRR is 50.6%; pre-tax NPV is C$2.6 billion and after-tax NPV is C$1.5 billion; after-tax payback period is 2.2 years from start of production. All-in sustaining cost is US$610/oz Au.
Additionally, average annual after-tax free cash flow is C$253 million in the first seven years of full production (C$1.8 billion cumulative), cumulative LOM after-tax free cash flow of C$2.6 billion.
CEO John Burzynski commented, "The sum of our work to date outlines the very
strong base-case for a significant and highly profitable new gold mine in Québec.
We believe this highly positive PEA is conservative. In the next 12 months, we are focused on completing drilling, the DFS, optimizing the capital program and operating plans, and securing project financing, as we advance our goal to move the project to first production in 2024."
Osisko is a mineral exploration company focused on the acquisition, exploration, and development of gold resource properties in Canada. Osisko holds a 100% interest in the high-grade Windfall gold deposit located between Val-d'Or and Chibougamau in Québec and holds a 100% undivided interest in a large area of claims in the surrounding Urban Barry area and nearby Quévillon area (over 2,700 square kilometres).