'The pendulum needs to swing back' - Osisko's Sean Roosen on investors returning to metals

(Kitco News) - Investors will return to mining as commodity prices climb, said Sean Roosen, chairman and CEO of Osisko Development.

In early June Roosen spoke to Kitco Mining at THE Mining Investment Event of the North.

Osisko Development (TSX-V:ODV) is advancing the Cariboo project, an advanced-stage feasibility gold project located in central British Columbia in the historic Wells-Barkerville mining camp. The feasibility study from last year showed an 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.

An environmental assessment certificate for Cariboo was received in the fall of 2023. The company said it expects to receive its permits this year.

When Cariboo is built, Roosen said the mine will utilize a lot of high tech.

"We expect this mine to operate at about 80% on green power," said Roosen. "We're currently underground mining [at Cariboo] with a road header, which is a fully electric machine. It's a relatively new technology in the gold-mining sector for Canada."

Roosen noted that investors are still not actively invested in the resource sector, despite a yawning gap between where governments want to get for critical minerals and what's needed.

"The pendulum needs to swing back, and I think it is," said Roosen. "It will be led by higher commodity prices.

Coverage of the THE Mining Investment Event of the North is sponsored by EMX Royalty.

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