Osisko Development - Advancing Tier-One Gold-Copper Assets in Top Mining Jurisdictions

• Osisko Development's key project is the Cariboo gold project in central BC, Canada, which has received environmental assessment approval and is awaiting final permits this summer. The goal is to build a 4,900 ton/day flotation circuit producing 220,000 oz gold in the first 3-4 years.
• The company's strategy is to develop a central processing facility at Cariboo as part of a larger mining camp. Osisko Development has a track record of building tier-one, long-life assets like Canadian Malartic.
• In Utah, Osisko owns 17,000 acres of private land with past production and is exploring for a large porphyry copper-gold deposit akin to Bingham Canyon. The property also has near-term gold production potential from the small, high-grade Tintic project.
• Osisko Development is well-positioned to advance its projects, with a seasoned management team, access to capital through its royalty company and equity listings, and a focus on top mining jurisdictions.
• The company sees strong fundamentals for gold and critical minerals like copper as key to the energy transition. Few new tier-one gold and copper projects are being permitted and developed globally.

In a recent interview, Sean Roosen, CEO and Chairman of Osisko Development Corporation, provided an insightful overview of the company's key projects and growth strategy. As a well-established player in the mining industry with a track record of developing world-class assets, Osisko Development presents a compelling investment opportunity in the current environment of strong gold and copper prices. This article will delve into the company's flagship Cariboo gold project in Canada, its plans to build a mining camp in Utah prospective for large copper-gold deposits, and the experienced management team at the helm.

Cariboo Gold Project: Building the Next Major Canadian Gold Mine

Osisko Development's crown jewel is the Cariboo gold project in mining-friendly central British Columbia. The project has already achieved a critical milestone by receiving its environmental assessment certificate in October 2023.

Roosen noted, "We've been in the permitting process for 4 years, which is quite fast by today's standards."

The company expects to secure the final permits for construction and operation by summer 2025.

The initial development plan for Cariboo envisions a 4,900-ton-per-day flotation circuit with an ore sorter capable of producing approximately 220,000 ounces of gold annually in the first 3-4 years. However, Osisko's long-term vision is to establish Cariboo as a central processing hub for a larger mining camp, a strategy successfully executed at its Canadian Malartic mine in Quebec.

Interview with Chairman & CEO, Sean Roosen

Osisko's Edge: Proven Mine-Building Expertise

Osisko Development's key competitive advantage is its proven ability to take projects from exploration to production. Roosen highlighted the company's experience with Canadian Malartic, which it developed from discovery in 2005 to production in 2011:

"Canadian Malartic has been running for 12 years, and it's had a positive reconciliation of 3%. It's still Canada's largest gold mine, and another 19 million ounces of discoveries were documented after we had found it."

This demonstrates Osisko's proficiency in building mines and creating long-life assets that continue to grow beyond initial expectations. Roosen also emphasized that Osisko's management team, with decades of combined experience in majors and internationally, is highly selective in the projects it chooses to advance.

"The assets in Osisko Development are the ones that we believe are the right ones in the right time and jurisdiction," Roosen affirmed.

This disciplined approach, focusing on top-tier assets in favorable mining jurisdictions, bodes well for the success of the company's portfolio.

Exploring for Giants in Utah

Beyond Cariboo, Osisko Development has assembled a commanding land position in Utah's historic Tintic mining district. The company controls 17,000 acres of patented ground, hosting 23 past-producing mines. The property lies in the shadow of Rio Tinto's massive Bingham Canyon mine. Osisko's primary target is to find a similar-scale copper-gold porphyry deposit hidden beneath shallow cover rocks.

While the hunt for a "Bingham-style" deposit is still in its early stages, Osisko has multiple avenues to generate nearer-term cash flow from Tintic. These include a small, high-grade gold resource at the historic Trixie mine, where past drilling encountered extraordinary grades up to 48.20 grams per tonne of gold. Osisko is also evaluating the restart of the Burgin lead-zinc-silver mine, which boasts an existing resource of 2.3 million tons grading over $600 per ton in gross metal value. In addition, the company sees potential in reprocessing manganese-bearing tailings, a critical mineral of interest to the U.S. government.

Roosen summarized the opportunity at Tintic: "The top targets are somewhere between 2,000-5,000 feet...we're hunting elephants on this one."

He noted that if Osisko successfully finds a major porphyry deposit, it will enjoy the advantages of nearby infrastructure, with Kennecott's smelter complex just 40 miles north. Utah's pro-mining stance is an added plus, with Roosen commenting that "the government guys will call you up and say, 'Whatever you guys need, we want to see more mines, we want more primary jobs.'"

Well-Funded for Growth

To advance its portfolio, Osisko Development benefits from various funding sources. These include its 4 billion dollar royalty company, Osisko Gold Royalties, which provides a competitive cost of capital. Osisko Development is also listed on the New York and Toronto Stock Exchanges, enhancing its access to institutional and retail investors.

In discussing project financing, Roosen highlighted the importance of a phased approach and staging capital investments to optimize returns. "The cocktail for getting a project financing together is all of the above - royalties, streams, private equity, strategic investments, and equity," he explained. Osisko's strong financial position and funding optionality give it a distinct advantage in advancing its projects through development and production.

The Right Commodities at the Right Time

Given the current global macroeconomic backdrop, Osisko Development's focus on gold and copper appears exceptionally well-timed. Roosen observed,

"Gold has done its job in the last 20 years. It's gone from $900 an ounce to $2,300. It's certainly offset any inflationary costs we've seen within that space and outperformed most fiat currencies significantly."

At the same time, Roosen is bullish on the outlook for critical minerals like copper, essential for the global energy transition.

"We're active on those fronts and keep track of all these things because we have a fairly broad management team, especially senior structural geologists and exploration," he noted.

Osisko Development is strategically positioned to benefit from the robust demand for these commodities by maintaining a diversified portfolio of precious and base metal assets.

Conclusion

Osisko Development Corporation presents a unique investment opportunity in the mining space. The company's flagship Cariboo gold project is on the cusp of development, with key permits expected by mid-2025. Cariboo has the potential to become a cornerstone asset, anchoring a larger mining camp akin to Osisko's Canadian Malartic complex. Concurrently, the company is pursuing a potential major copper-gold discovery in Utah, while evaluating nearer-term production opportunities from its extensive land package.

Underpinning Osisko Development's growth strategy is a seasoned management team with a proven track record of discovering and building world-class mines. The company is well-funded, with access to capital through multiple channels, and its focus on gold and copper aligns with the prevailing macro environment. As Roosen aptly stated,

"There's not that many assets. There's only two in Canada that go over 500,000 ounces a year, and there's very few in the US. Big tier-one assets are less than half a dozen in the entire space."

Osisko Development appears poised to join this elite ranks, making it a compelling consideration for investors seeking exposure to high-quality precious and base metal assets in top mining jurisdictions.

The Investment Thesis for Osisko Development

• Cariboo is a tier-one gold project nearing development in a top mining jurisdiction, potentially producing over 200,000 ounces per year and anchoring a larger district-scale mining camp.
• The company's Utah properties offer significant exploration upside targeting a major copper-gold porphyry and near-term production potential from historic high-grade gold and base metal mines.
• Osisko Development has a world-class management team with experience discovering, financing, and building major mines, notably the Canadian Malartic mine in Quebec.
• The company is well-funded, with access to capital through its royalty company, equity listings, and strategic partnerships, providing multiple avenues to advance its projects.
• Osisko Development provides investors with leveraged exposure to gold and copper, two commodities with robust fundamentals underpinned by persistent inflation and the global energy transition.
• Actionable advice: Investors bullish on gold and copper should consider taking a position in Osisko Development to gain exposure to the company's high-quality development and exploration portfolio, backed by a top-tier management team. However, conduct thorough due diligence, as investing in individual mining stocks carries a high risk and potential reward.

Macro Thematic Analysis

The interview with Sean Roosen of Osisko Development underscores several key themes driving the mining industry. Foremost is the heightened demand for gold as a safe haven and inflation hedge in an era of unprecedented monetary stimulus and geopolitical uncertainty. Roosen noted that gold has "certainly offset any inflationary costs" and "outperformed most fiat currencies" over the past two decades. This trend appears likely to persist, making gold a core holding for investors seeking to preserve wealth.

Concurrently, the global energy transition is fueling a structural shift in demand for critical minerals like copper. As economies seek to decarbonize and electrify, the need for copper in renewable energy infrastructure, electric vehicles, and power grids is set to soar. However, a dearth of new copper supply threatens to create a widening deficit in the years ahead. Roosen highlighted this challenge, stating, "We haven't really seen the metal prices, like copper, move the way they need to get the amount of capital required to make this energy transition happen."

This supply-demand imbalance presents a compelling opportunity for companies like Osisko Development that are advancing high-quality copper projects. Roosen summarized the company's advantages:

"We're able to say, 'This one is better than this one'...and that's the selection we make on behalf of shareholders. By buying into the Osisko name, that's what we're bringing to you as a simplified investment strategy."

In a world where tier-one gold and copper assets are increasingly scarce, Osisko Development's portfolio and track record of success position it to thrive. Osisko Development offers investors a compelling growth story in the precious and base metal space. With its Cariboo project approaching production, a pipeline of exploration and development assets in Utah, and a world-class management team, the company is well-positioned to create significant shareholder value.

The company's focus on gold and copper aligns with the robust global demand for these metals, underpinned by economic uncertainty and the energy transition. However, investors must recognize the inherent risks in mine development and exploration and allocate capital accordingly. Overall, Osisko Development stands out as a high-quality vehicle that can gain leveraged exposure to the next generation of tier-one gold and copper mines in favorable jurisdictions.