Unlocking a 500,000 Oz/Year Gold District: Inside Osisko Development's Cariboo Story

• Osisko Development's Cariboo project has received key mining permits which contains 2 million ounces of gold reserves plus 3.3 million ounces of inferred resources.
• CEO Sean Roosen believes Cariboo is a mining camp with significant expansion potential beyond the initial 200,000 ounce per year production plan.
• Osisko aims to prove Cariboo can support 10,000-20,000 tons per day throughput, which could increase annual production to 500,000 ounces.
• Osisko Development is full-funded after raising $92 million and has over $140 million in the bank to develop its Cariboo gold project in British Columbia.
• ODV's other projects include Trixie gold mine in Utah, San Antonio in Mexico, and greenfield copper targets, but Cariboo is the main focus as the company prepares for near-term full production.

Osisko Development, a gold development company led by mining entrepreneur Sean Roosen, is advancing its flagship Cariboo Gold Project in central British Columbia towards production. With key permits in hand, a robust treasury, and a large resource base, Osisko believes Cariboo has potential to become a high-margin, long-life mining camp producing 200,000 ounces of gold annually with significant expansion upside.

Key Permits Received

In one of the most important milestones to date, Osisko received the Cariboo mine permit in November 2024 after 4 years and 8 months in the permitting process. Roosen credits the BC government for an efficient process, noting Osisko was the first to go through the province's new streamlined system.

"We were the first ones through that new process in BC which is they call sort of the single wicket process which we did in the EA certificate first which we received in 2023, and then the mining permit was less than a year... after that," explained Roosen.

With permits for mine construction and operation now in hand, Osisko can proceed with development plans, including underground drilling to expand and upgrade the resource.

Well-Funded for Construction

To fund ongoing work at Cariboo and other projects, Osisko has raised US$92 million (C$130 million) via a financing. The deal was oversubscribed by nearly 100%, reflecting strong investor demand. Osisko now has approximately US$140 million in the bank.

Roosen believes Osisko is in a unique position with permits, capital, and a large gold resource all in hand.

"We're in a sweet spot fairly small group of companies that are enjoying that and we have a pretty good moment to capture some value,"

Major Production Potential

The Cariboo project currently hosts reserves of 2.0 million ounces grading 3.78 g/t gold, with another 3.3 million inferred resource ounces. A 2023 feasibility study outlined a 5,000 ton per day underground mine producing over 200,000 ounces of gold annually at all-in sustaining costs of US$968 per ounce.

However, Roosen sees potential for Cariboo to become a much larger mining camp. The deposit is open at depth and along a 4.4 km strike length. Osisko has only drilled down sufficiently to qualify to 350 meters so far for its reserves, but drilling extends to 1,000 meters, indicating the system continues at depth.

"I believe that this is a mining camp," said Roosen. "We've only gone down to 350 m with this resource and reserve by drilling from surface. We've drilled down to 1,000 m, we know it goes down that far."

Interview with Founder & CEO Sean Roosen

Vision of a Major Gold Camp

Osisko is now looking to prove Cariboo can become a true mining camp with multiple underground mines feeding a central mill. The initial 5,000 tpd operation producing 200,000 ounces per year is envisioned as a starting point, with studies underway examining expansions to 10,000 or even 20,000 tpd.

At 15,000 tpd, Cariboo would produce over 500,000 ounces of gold annually, vaulting it into the upper echelon of gold mines globally. Roosen believes Osisko has a path to get there.

Building a Mid-Tier Gold Producer

Roosen has experience building major gold mines, notably the Canadian Malartic mine in Quebec which is now Canada's largest gold mine producing over 700,000 ounces annually. He aims to apply that experience to grow Cariboo into another cornerstone Canadian gold asset.

"I wouldn't be building it if I thought it was just going to be a couple million ounces," Roosen affirmed. "I think at the end of the day, we have the ability if we look at depth here, the first 4.4 km relatively low cost, we can add significant ounces. It's probably around $20-30 million per million ounces just to keep adding at depth and we can do that all the way down to 1,500 meters probably."

If Osisko succeeds in its vision, Roosen believes Cariboo has potential to underpin a mid-tier gold producer valued at multiples of its current $300 million market capitalization. He points to mid-tier producers like Alamos Gold, which produces around 500,000 ounces annually and has a $10 billion valuation, as an example of the re-rating potential.

The Next Steps

With permits and funding in hand, Osisko is focused on de-risking Cariboo and proving its geological model. Key near-term milestones include an updated feasibility study and a bulk sample to evaluate the deposit grade compared to the resource model.

Conclusion

Through Cariboo, Osisko Development aims to build a major gold mining camp in one of Canada's premier mining jurisdictions. CEO Sean Roosen, a proven mine-builder, believes the project has potential to produce over 500,000 ounces annually for many years, underpinning a multi-billion dollar company. While work remains to prove the ultimate scope, Osisko has key permits, a robust treasury, and a large resource in place. If the geological model is confirmed, Cariboo could become a highly profitable, long-life gold district.

The Investment Thesis for Osisko Development

• Permitted project with clear path to production
• Proven management team led by successful mine-builder Sean Roosen
• Large resource base of over 5Moz with significant expansion potential
• Vision to build a 500,000 oz per year mining camp valued at multiples of the current market cap
• Strong treasury of US$140M to fund development and expansion drilling
• Potential for re-rating as Cariboo is de-risked and approaches production
• Optionality to expand far beyond base case 200,000 oz per year plan
• Exposure to higher gold price through low-cost, high-margin asset

Macro Thematic Analysis

The current macroeconomic environment appears supportive of the gold sector and gold equities like Osisko Development. Roosen notes there was "a lot of buzz back in the financial sector post the US election. The gold price has held up well, while copper has also seen gains, driving interest in gold equities among generalist investors.

"The market's picking a direction with this election sort of off the table," said Roosen. "We saw a premium on the gold price coming into the election. I thought it might back off a couple hundred bucks after the election, but gold prices hung in."

Beyond the gold price, Roosen sees potential for convergence between cryptocurrencies and gold, which could draw new generalist investors into the space. He notes over $1 billion worth of gold has already been tokenized into crypto.

"It'll be interesting to see the confluence between what happens with the tokenization of assets like royalties and gold and mining stocks as those two worlds come together," he stated.  "The people in the crypto world need to be able to buy things that are tangible at some point. So that's a trade that is evolving and I think the mining industry is pretty well adapted to be part of that real asset trade."

With a rising gold price, strong generalist interest, and potential synergies with the crypto world, the macro backdrop looks favourable for advanced gold developers like Osisko Development as it advances Cariboo towards production and proves out a potential mining camp. As Roosen sums it up:

"We know what success looks like and we're focused on the bigger projects where we can have the big win and where we can deliver significant upside for shareholders."

Key Takeaways

Osisko Development offers a compelling combination of a large, expanding resource, a proven mine-building team, key permits, and a strong balance sheet to advance its Cariboo project towards production. The recent $92M financing ensures Osisko is well-funded to execute its plans. While the current 200,000 oz per year production plan is robust, the real blue-sky potential lies in CEO Sean Roosen's vision to develop a major mining camp producing over 500,000 ounces annually from multiple deposits feeding a central mill. Upcoming catalysts include an updated feasibility study and a bulk sample to validate the resource model. When successful, Osisko could join the ranks of intermediate gold producers and see a significant re-rating of its valuation over the next 12-24 months.