Osisko Development Corp. (ODV) reported its financial and operating results for the three months ended June 30, 2024 (Q2 2024). The company sold 805 ounces of gold from operating activities during the quarter, with 790 ounces originating from the Trixie test mine and the remaining balance from the Cariboo Gold Project through stockpile processing at a third-party facility.
Revenue for Q2 2024 was $2.6 million, a significant decrease from $10.8 million in Q2 2023. This decline was mainly due to a reduction in gold sales. The cost of sales also fell to $2.7 million in Q2 2024, compared to $11.4 million in Q2 2023.
In May 2024, the company announced the granting of 283,250 deferred share units (DSUs) to its independent directors as part of its annual remuneration program. Additionally, Maggie Layman, Vice President of Exploration, departed the company to pursue other opportunities.
The company fulfilled the second of five deferred payments to the sellers in connection with the acquisition of a 100% ownership interest in the Tintic Project in May 2022. The deferred consideration of US$2,500,000 was settled by issuing 1,228,394 common shares.
On June 10, 2024, Osisko Development entered into an amending agreement with National Bank of Canada, extending the maturity date of a US$50 million delayed draw term loan to October 31, 2025. The extension is contingent on the completion of a capital raise of at least US$20 million before October 31, 2024. The company also secured a reduction in the mandatory prepayment amount, allowing it to retain 50% of proceeds from certain financings. As of June 30, 2024, the company held approximately $33.7 million in cash.
Cariboo Gold Project
The Cariboo Gold Project, located in British Columbia, Canada, is a 100%-owned asset of Osisko Development. The company made significant progress in permitting activities, including the receipt of the Environmental Assessment (EA) Certificate in October 2023. The BC Mines Act and Environmental Management Act permits are currently under review by Osisko Development and the Mine Review Committee. The company anticipates completing the permit application referral and securing final construction and operating permits in Q3 2024.
In Q1 2024, the company initiated an underground development drift from the existing Cow Portal into the Cariboo Gold Project’s mineral deposit at the Lowhee Zone. This bulk sample work program aims to extract a 10,000-tonne bulk sample for ore sorter, heavy equipment, and mining testing. Approximately 510 meters of development have been completed to date, with another 660 meters remaining to reach the target area. The company anticipates completing the bulk sample in Q4 2024.
Tintic Project
The Tintic Project, located in Utah, USA, is a 100%-owned asset. In May 2024, the company completed two surface diamond drill holes, totaling approximately 2,920 meters (9,581 feet) at the Big Hill target area. The drilling aimed to assess the potential for copper-gold-molybdenum porphyry mineralization. While anomalous copper and molybdenum mineralization was encountered, no significant intercepts of copper, gold, or molybdenum were observed. The porphyries identified to date lack evidence of the major fluid paths necessary to be the source of mineralization in the Tintic District.
The company also completed a diamond drill hole from underground at the Trixie West Porphyry target, testing for porphyry-style mineralization. The hole reached a depth of 759.6 meters (2,492 feet) before intersecting the Eureka Lily fault. While anomalous mineralization was found, no significant intercepts of gold, copper, or molybdenum were encountered.
Based on current results, the Zuma area has been identified as a promising porphyry target, warranting initial drill testing. It may represent one of the causative porphyry centers of the East Tintic district. Geological, drilling, and historical data indicate the potential presence of a large-scale carbonate replacement deposit (CRD) below the footwall of the East Tintic thrust fault. A recommended drill program has been proposed to target downdip extensions of known mineralization at Burgin.
San Antonio Gold Project
The San Antonio Gold Project, located in Sonora State, Mexico, remains in care and maintenance with no anticipated production. The company awaits guidance from the Mexican government regarding the permitting process and the status of open pit mining in the country. Permit approval for mining activities may resume after the new president takes office in October 2024.
The company is conducting a strategic review of the project, including exploring potential financial or strategic partnerships or a full or partial sale of the asset.
Key Upcoming Milestones
The company outlined key project milestones with anticipated completion timelines and remaining costs:
*
Cariboo Gold Project
* Bulk Sample – Q4 2024 – $6.8 million
* Water and Waste Management – Q4 2024 – $0.1 million
* Electrical and Communication – Q4 2024 – $0.6 million
* Management, environmental, and other pre-permitting work – Q3 2024 – $5.2 million
* Detailed engineering and permitting – Q4 2024 – $1.3 million
*
Tintic Project
* Regional Drilling – Completed – Q2 2024 – $nil
The company’s unaudited interim consolidated financial statements and management’s discussion and analysis are available on its website, SEDAR+, and EDGAR.
About Osisko Development Corp.
Osisko Development Corp. is a North American gold development company focused on past-producing mining camps located in mining-friendly jurisdictions. The company’s objective is to become an intermediate gold producer by advancing its Cariboo Gold Project, Tintic Project, and San Antonio Gold Project. The company’s strategy is to develop attractive, long-life, socially and environmentally sustainable mining assets while minimizing development risk and growing mineral resources.
