- Osisko Development (ODV, Financial) announces robust feasibility study results for Cariboo Gold Project.
- Projected after-tax NPV of C$943 million and IRR of 22.1% at US$2,400/oz gold price.
- The study indicates an annual gold production of 190,000 ounces over a 10-year mine life.
Osisko Development Corp. (ODV) has unveiled positive results from an optimized feasibility study for its 100%-owned Cariboo Gold Project located in central British Columbia, Canada. The study presents a compelling economic scenario with a base case after-tax net present value (NPV5%) of C$943 million and an internal rate of return (IRR) of 22.1% at a base gold price of US$2,400 per ounce.
The project anticipates an average annual production of approximately 190,000 ounces of gold over its 10-year mine life, including a higher output of 202,000 ounces annually during the first five years. The project's operating costs position it competitively with an average total cash cost of US$947 per ounce and all-in sustaining cost (AISC) of US$1,157 per ounce, placing it in the lower half of the global cost curve.
The initial capital investment is estimated at C$881 million, with sustaining capital requirements of C$525 million over the life of the mine. The project is designed for an enhanced single-phase build over 24 months, featuring streamlined processing facilities and improved metallurgical recovery through updated flowsheet design and gravity circuit.
Osisko expects the Cariboo Gold Project to support substantial free cash flow generation, averaging C$158 million annually over its life, increasing to C$296 million per year during the first five years. The study also highlights the creation of significant local employment with up to 613 direct jobs during construction and 525 permanent positions during operations.
With permitting already in place, the company is focusing on securing project financing, targeting a construction start in Q3 2025, and first gold production by H2 2027. The study outlines the project's strong sensitivity to gold prices, indicating that every US$300/oz increase in the gold price could add approximately C$330 million to the NPV5%.
