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Osisko Development reports PEA results for its Cariboo gold project with NPV of $764 million

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(Kitco News) - Osisko Development (TSX.V: ODV) today announced the results from its Preliminary Economic Assessment ("PEA") for the Cariboo gold project in Central British Columbia, Canada.

The company said that the study outlines total gold production of 2.8 million gold ounces, resulting in an average annual gold production profile of 236,000 ounces with an all-in sustaining cost per ounce of $1,222 (US$962).

The project's after-tax net present value (5% discount rate) is $764 million with an after-tax internal rate of return of 21.4% at a gold price of $2,223 (US$1,750) per ounce, and $912 million and 24.5% at a spot gold price for May 19, 2022 at $2,343 (US$1,845) per ounce.

The project's pre-tax payback period is 5.8 years (post-tax 6.0 years), with first gold pour targeted for Q1 2024.

The project is planned in two phases: Phase 1 is at 2,000 tpd for 2.5 years, increasing during Phase II to an average production of 8,000 tpd over a 9.5-year LOM.

The company added that this study has focused on five underground zones: Shaft Zone, Valley Zone, Cow Zone, Mosquito Zone and Lowhee Zone. The mining zones are accessed via three main portals and are connected by an internal ramp system.


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"The PEA illustrates potential economics for a low cost, large scale, underground gold mine, with industry leading operating costs. The company plans to proceed with a feasibility study in connection with the work plan recommended by the PEA," Osisko said in a statement.

Osisko Development is a gold development company advancing the Cariboo gold project and other Canadian and Mexican properties, with the objective of becoming the next mid-tier gold producer.

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