OSISKO DEVELOPMENT REPORTS FIRST QUARTER 2024 RESULTS (All monetary references are expressed in Canadian dollars
NYSE | TSXV: ODV NEWS RELEASE
Page 1 of 6
OSISKO DEVELOPMENT REPORTS FIRST QUARTER 2024 RESULTS
(All monetary references are expressed in Canadian dollars, unless otherwise indicated)
Montreal, Québec, May 6, 2024 – Osisko Development Corp. (NYSE: ODV, TSXV: ODV) ("Osisko
Development" or the "Company") reports its financial and operating results for the three months
ended March 31, 2024 ("Q1 2024").
Q1 2024 HIGHLIGHTS
Operating, Financial and Corporate Updates:
• 619 ounces of gold sold by the Company from operating activities in the first quarter, comprising of
585 ounces of gold sold from the Trixie test mine ("Trixie"), and the balance from the Cariboo Gold
Project ("Cariboo Gold Project") by processing stockpiles at a third-party processing facility.
• $1.8 million in revenues ($3.5 million in Q1 2023) and $2.0 million in cost of sales ($4.4 million in
Q1 2023) generated from operating activities in fourth quarter.
• On February 2, 2024, the Company announced that Mr. Francois Vézina resigned from his position
as Senior Vice President, Project Development, Technical Services and Environment effective as of
March 1, 2024 to pursue outside interests in the mining sector.
• On March 4, 2024, the Company announced that the Company, as guarantor, and Barkerville Gold
Mines Ltd., its wholly-owned subsidiary, as borrower, entered into a credit agreement dated March
1, 2024 with National Bank of Canada in connection with a US$50 million delayed draw term loan
(the " Credit Facility "). The Credit Facility will be exclusively used to fund ongoing detailed
engineering and pre-construction activities at the Cariboo Gold Project. During the quarter, US$25.0
million ($33.9 million) was dr awn under the Credit Facility, net of US$ 0.7 million ($0.9 million) of
fees.
• As at March 31, 2024, the Company had approximately $57.5 million in cash.
Cariboo Gold Project – British Columbia, Canada (100%-owned)
• Permitting Progress. Receipt of the EA Certificate in October 2023 successfully concluded the EA
process for the Cariboo Gold Project, which was launched in October 2019 (see Figure 1). A Joint
Permit Application ("JPA") for the BC Mines Act and Environmental Management Act is in progress.
o Through four rounds of review from the Mine Review Committee, the Company responded
to, addressed, and closed over 1,800 comments from various stakeholders. The JPA review
process is nearing completion, and the Mine Review Committee has begun drafting the BC
Mines Act and Environmental Management Act permits and subsequent reports.
o With the signed Process Charter, and agreed upon schedule with the Major Mines Office, the
Company anticipates completing its permit application referral at the end of Q2 2024 and,
subsequently, receiving final permits in Q3 2024.
o The Company continues to explore funding options, including fully-funded solutions for the
Cariboo Gold Project.
Page 2 of 6
Figure 1: Cariboo Gold Project – Permitting Timeline Summary
• Pre-Construction Activities. On March 1, 2024 , the Company secured a US$50 million Credit
Facility, to be exclusively used to fund ongoing detailed engineering and pre-construction activities
at the Cariboo Gold Project. During Q1 2024, the Company commenced an underground
development drift from the existing Cow Portal into the Cariboo Gold Project's mineral deposit at
Lowhee Zone under an existing provincial permit. The objective is to reach the ore body and extract
a 10,000 tonne bulk sample of mineralized material for further ore sorter testing. The Company
anticipates completing the bulk sample by the end of Q4 2024.
Tintic Project – Utah, U.S.A. (100%-owned)
• 2023 Trixie Exploration Program. During Q1 2024, the Company disclosed the remaining assay
results from 14 diamond drilling holes and chip samples from new development areas as part of its
2023 exploration program at Trixie. Select assay results highlights included (see news release dated
February 22, 2024):
o 66.04 grams per tonne (" g/t") gold (" Au") and 167.64 g/t silver ("Ag") over 8.99
meters ("m") in hole TRXU-DD-23-072A (1.93 troy ounces per short ton (" oz/t") Au and
4.89 oz/t Ag over 29.50 feet ("ft")).
• Big Hill Porphyry Target Drilling. An initial regional surface diamond drilling campaign to test for
copper-gold-molybdenum porphyry mineralization potential, namely in the Big Hill area, commenced
in early December 2023. An initial 2,913 m (9,557 ft) were drilled in two holes as phase one of the
surface diamond drilling program.
o The Company completed its initial surface drilling program testing the porphyry target at
Big Hill in early May 2024 . As previously disclosed, the first drill hole was completed to a
depth of 1,297 m (4,257 ft) when it transitioned out of the prospective alteration zone. The
second drill hole was repositioned at a modified angle and completed to a depth of
approximately 1,615 m (5,300 ft).
o The Company expects to provide an exploration update, including any material assay
results, on the preliminary drilling program in Q2 2024, as appropriate.
• 2024 Trixie Mineral Resource Estimate ("MRE"). On March 15, 2024, the Company released
an updated MRE for the underground Trixie deposit (the " 2024 Trixie MRE"), which was included
in the subsequently -published Tintic Technical Report (as defined herein) . The 2024 Trixie MRE
incorporated an additional 1,674 underground chip samples over 1,678 m (5,507 ft) of underground
development, and 7,385 m of drilling (24,229 ft) in 122 holes completed since the initial Trixie MRE
(the " 2023 Trixie MRE "), with an effective date of January 10, 2023. The 2024 Trixie MRE ,
comprises:
Page 3 of 6
o Measured resources of 119,847 tonnes grading 27.36 g/t Au and 61.73 g/t Ag, for a total
of 105,437 ounces ("oz") Au and 237,868 oz Ag.
o Indicated resources of 124,743 tonnes grading 11.17 g/t Au and 59.89 g/t Ag, for a total
of 44,811 oz Au and 240,211 oz Ag.
o Inferred resources of 201,603 tonnes grading 7.80 g/t Au and 48.55 g/t Ag, for a total of
50,569 oz Au and 314,678 oz Ag.
Exploration Target Potential. The Company continues to advance rehabilitation at the 750 level to
allow for further underground diamond drilling to test for the down dip extent of the 756 zone and the
porphyry target below Trixie. Data compilation work is ongoing and is anticipated to generate additional
exploration targets.
San Antonio Gold Project – Sonora State, Mexico (100%-owned)
• Following completion of processing of the remaining stockpile inventory from the heap leach pad
in Q3 2023, the San Antonio Gold Project was placed into care and maintenance, with no
production anticipated henceforth.
• The Company awaits next steps from the government of Mexico with respect to the permitting
process and the status of open pit mining in the country. The approval process for environmental
permits for mining may resume after the conclusion of the governor and presidential elections
which will be held in July 2024, with the new president taking office in September 2024.
• Strategic Review. As previously disclosed, the Company is conducting a strategic review of
the San Antonio Gold Project, and has engaged a financial advisor in connection thereof. The
strategic review includes, among others, exploring the potential for a financial or strategic
partner in the asset or for a full or partial sale of the asset.
SUBSEQUENT TO Q1 2024
• On April 26, 2024, the Company announced the filing of the Tintic Technical Report (as defined
herein) on the 2024 Trixie MRE.
KEY UPCOMING MILESTONES
Key Milestones
for Projects
Expected Timing
of Completion
Anticipated
Remaining Costs*
Cariboo Gold Project
Bulk Sample(1) Q4 2024 $10.3 million
Water and Waste Management Q2 2024 $0.8 million
Electrical and Communication Q2 2024 $1.4 million
Management, environmental, and other pre-permitting work Q2 2024 $0.3 million
Detailed engineering and permitting(2) Q2 2024 $4.9 million
Tintic Project
Regional Drilling Q4 2023 – Q2 2024 $0.4 million
Updating mineral resource estimates Completed – Q1 2024 $nil
*as at March 31, 2024
Notes:
(1) The bulk sample expenditures include up until the end of June 2024 and were approved by the Board of Directors.
(2) These activities are contributing towards the completion of permitting, which are presently expected to be completed in Q2
2024. Additional costs and time relating to engineering, including water and waste management and electrical and
communication, will be required in the construction phase (subject to a positive construction decision and completion of
project financing).
Consolidated Financial Statements
The Company's unaudited interim consolidated financial statements (the "Financial Statements") and
management's discussion and analysis ("MD&A") for the three months ended March 31, 202 4 are
Page 4 of 6
available on the Company's website at www.osiskodev.com, on SEDAR+ (www.sedarplus.ca) and on
EDGAR (www.sec.gov) under Osisko Development's issuer profile.
Annual Meeting of the Shareholders
The Company's Annual Meeting of Shareholders will be held in person on May 7, 2024, at 1:30 p.m.
(Eastern time) at 1100, av des Canadiens-de-Montreal, Suite 300, Montreal, QC, H3B 2S2. Information
regarding notice, materials, and voting can be found in the Management Information Circular dated
March 18, 202 4, available on the Company's website at www.osiskodev.com and on SEDAR +
(www.sedarplus.ca) under Osisko Development's issuer profile.
Qualified Persons
The scientific and technical information contained in this news release has been reviewed and approved
by Maggie Layman, P.Geo., Vice President, Exploration of Osisko Development, a "qualified person"
within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI
43-101").
Technical Reports
Information relating to the Cariboo Gold Project and the Cariboo FS is supported by the technical report
titled "Feasibility Study for the Cariboo Gold Project, District of Well, British Columbia, Canada ", dated
January 10, 2023 (amended January 12, 2023) with an effective date of December 30, 2022) prepared
for the Company by independent representatives BBA Engineering Ltd. and supported by independent
consulting firms, including InnovExplo Inc., SRK Con sulting (Canada) Inc., Golder Associates Ltd.
(amalgamated with WSP Canada Inc. on January 1, 2023, to form WSP Canada Inc.), WSP USA Inc.,
Falkirk Environmental Consultants Ltd., Klohn Crippen Berger Ltd., KCC Geoconsulting Inc., and JDS
Energy & Mining Inc. (the "Cariboo Technical Report"). Reference should be made to the full text of
the Cariboo Technical Report , which was prepared in accordance with NI 43 -101 and is available
electronically on SEDAR + (www.sedarplus.ca) and on EDGAR ( www.sec.gov) under Osisko
Development's issuer profile and on the Company's website at www.osiskodev.com.
Scientific and technical information relating to the Tintic Project and the updated mineral resource
estimate for the Trixie deposit (the " 2024 Trixie MRE "), including information provided in the table
"2024 Trixie MRE (all zones)" and the assumptions, qualifications and limitations thereof, is supported
by the technical report titled " NI 43-101 Technical Report, Mineral Resource Estimate for the Trixie
Deposit, Tintic Project, Utah, United States of America" and dated April 25, 2024 (with an effective date
of March 14, 2024), prepared for the Company by independent representatives of Micon International
Limited, being William Lewis, P. Geo, and Alan J. San Martin, MAusIMM(CP) (the "Tintic Technical
Report"). Reference should be made to the full text of the Tintic Technical Report, which was prepared
in accordance with NI 43 -101 and is available electronically on SEDAR+ ( www.sedarplus.ca) and on
EDGAR (www.sec.gov) under Osisko Development's issuer profile and on the Company's website at
www.osiskodev.com.
Information relating to San Antonio is supported by the technical report titled " NI 43-101 Technical
Report for the 2022 Mineral Resource Estimate on the San Antonio Project, Sonora, Mexico", dated July
12, 2022 (with an effective date of June 24, 2022) prepared for the Company by independent
representatives of Micon International Limited (the "San Antonio Technical Report", collectively with
the Tintic Technical Report and Cariboo Technical Report, the "Technical Reports"). Reference should
be made to the full text of the San Antonio Technical Report, which was prepared in accordance with NI
43-101 and is available electronically on SEDAR + (www.sedarplus.ca) and on EDGAR ( www.sec.gov)
under Osisko Development's issuer profile and on the Company's website at www.osiskodev.com.
Page 5 of 6
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 with district scale potential. The Company 's
objective is to become an intermediate gold producer by advancing its 100%-owned Cariboo Gold
Project, located in central B .C., Canada, the Tintic Project in the historic East Tintic mining district in
Utah, U.S.A., and the San Antonio Gold Project in Sonora, Mexico. In addition to considerable brownfield
exploration potential of these properties, that benefit from significant hi storical mining data, existing
infrastructure and access to skilled labour, the Company 's project pipeline is complemented by other
prospective exploration properties. The Company 's strategy is to dev elop attractive, long-life, socially
and environmentally sustainable mining assets, while minimizing exposure to development risk and
growing mineral resources.
For further information, visit our website at www.osiskodev.com or contact:
Sean Roosen Philip Rabenok
Chairman and CEO Director, Investor Relations
Email: [email protected] Email: [email protected]
Tel: +1 (514) 940-0685 Tel: +1 (437) 423-3644
CAUTIONARY STATEMENTS
Cautionary Statement Regarding Estimates of Mineral Resources
This news release uses the terms measured, indicated and inferred mineral resources as a relative measure of the level of confidence
in the resource estimate. Readers are cautioned that mineral resources are not mineral reserves and that the economic viabili ty of
resources that are not mineral reserves has not been demonstrated. The mineral resource estimate disclosed in this news release
may be materially affected by geology, environmental, permitting, legal, title, socio-political, marketing or other relevant issues. The
mineral resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum's "CIM Definition
Standards on Mineral Resources and Mineral Reserves" incorporated by reference into NI 43-101. Under NI 43 -101, estimates of
inferred mineral resources may not form the basis of feasibility or pre -feasibility studies or economic studies except for preliminary
economic assessments. Readers are cautioned not to assume that further work on the stated resources will lead to mineral reserves
that can be mined economically.
Cautionary Statement Regarding Financing Risks
The Company's development and exploration activities are subject to financing risks. At the present time, the Company has
exploration and development assets which may generate periodic revenues through test mining, but has no mines in the commercial
production stage that generate positive cash flows. The Company cautions that test mining at its operations could be suspended at
any time. The Company's ability to explore for and discover potential economic projects, and then to bring them into production, is
highly dependent upon its ability to raise equity and debt capital in the financial markets. Any projects that the Company de velops
will require significant capital expenditures. To obtain such funds, the Company may sell additional securities including, but not limited
to, the Company's shares or some form of convertible security, the effect of which may result in a substantial dilution of the equity
interests of the Company's Shareholders. Alternatively, the Company may also sell a part of its interest in an asset in order to raise
capital. There is no assurance that the Company will be able to raise the funds required to continue its exploration programs and
finance the development of any potentially economic deposit that is identified on acceptable terms or at all. The failure to obtain the
necessary financing(s) could have a material adverse effect on the Company 's growth strategy, results of operations, financial
condition and project scheduling.
Cautionary Statement Regarding Test Mining Without Feasibility Study
The Company cautions that its prior decision to commence small -scale underground mining activities and batch vat leaching at the
Trixie test mine was made without the benefit of a feasibility study, or reported mineral resources or mineral reserves, demonstrating
economic and technical viability, and, as a result there may be increased uncertainty of achieving any particular level of re covery of
material or the cost of such recovery. The Company cautions that historically, such projects have a much higher risk of economic and
technical failure. Small scale test -mining at Trixie was suspended in December 2022 , resumed in the second quarter of 2023 , and
suspended once again in December 2023 . If and when small-scale test-mining recommences at Trixie, there is no guarantee that
production will continue as anticipated or at all or that anticipated production costs will be achieved. The failure to continue production
may have a material adverse impact on the Company's ability to generate revenue and cash f low to fund operations. Failure to
achieve the anticipated production costs may have a material adverse impact on the Company's cash flow and potential profitab ility.
In continuing operations at Trixie after closing, the Company has not based its decision to continue such operations on a feasibility
study, or reported mineral resources or mineral reserves demonstrating economic and technical viability.
Cautionary Statement to U.S. Investors
The Company is subject to the reporting requirements of the applicable Canadian securities laws and as a result reports infor mation
regarding mineral properties, mineralization and estimates of mineral reserves and mineral resources, including the information in its
technical reports, financial statements, MD&A and this news release, in accordance with Canadian reporting requirements, which are
governed by NI 43-101. As such, such information concerning mineral properties, mineralization and estimates of mineral reserves
and mineral resources, including the info rmation in its technical reports, financial statements, MD&A and this news release, is not
Page 6 of 6
comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of the U .S.
Securities and Exchange Commission ("SEC").
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Certain statements contained in this news release may be deemed "forward -looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian
securities legislation (together, "forward -looking statements"). These forward -looking statements, by their nature, require Osisko
Development to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause
actual results to differ materially from those expressed or implied in these forward-looking statements. Forward-looking statements
are not guarantees of performance. Words such as "may", "will", "would", "could", "expect", "believe", "plan", "anticipate", "intend",
"estimate", "continue", or the negative or comparable terminology, as well as terms usually used in the future and the condit ional,
are intended to identify forward -looking statements. Information contained in forward -looking statements is based upon certain
material assumptions that were applied in drawing a conclusion or making a forecast or projection, including the assumptions,
qualifications and limitations relating to the significance of the high-priority target drilling; the utility of modern exploration
techniques; the potential for parallel high -grade gold fissure zones ; the potential of Tintic to host a copper -gold porphyry center ;
the significance of regional exploration potential; the results of the 2024 Trixie MRE; the potential for unknown mineralized structures
to extend existing zones of mineralization; category conversion; the timing and status of permitting; the capital resources available
to Osisko Development; the ability of the Company to execute its planned activities, including as a result of its ability to seek
additional funding or to reduce planned expenditures; the ability of the Company to obtain fut ure financing and the terms of such
financing; management's perceptions of historical trends, current conditions and expected future developments; the utility an d
significance of historic data, including the significance of the district hosting past producing mines; future min ing activities; the
potential of high grade gold mineralization on Trixie and Cariboo; the results (if any) of further exploration work to define and expand
mineral resources; the ability of exploration work (including drilling) to accurately predict miner alization; the ability to generate
additional drill targets; the ability of management to understand the geology and potential of the Company's properties; the ability
of the Company to expand mineral resources beyond current mineral resource estimates; th e timing and ability of the Company to
complete upgrades to the mining and mill infrastructure at Trixie (if at all); continuation of test mining activities at Trix ie (if at all);
the timing and ability of the Company to ramp up processing capacity at Trixie (if at all); the ability of the Company to complete its
exploration and development objectives for its projects in 2024 in the timing contemplated and within expected costs (if at all); the
ongoing advancement of the deposits on the Company's properties; the deposit remaining open for expansion at depth and down
plunge; the ability to realize upon any mineralization in a manner that is economic; the Cariboo project design and ability and timing
to complete infrastructure at Cariboo (if at all); the abili ty and timing for Cariboo to reach commercial production (if at all); the
ability to adapt to changes in gold prices, estimates of costs, estimates of planned exploration and development expenditures ; the
ability of the Company to obtain further capital on reasonable terms; the profitability (if at all) of the Company's operations; the
Company being a well-positioned gold development company in Canada, USA and Mexico; the ability and timing for the permitting
at San Antonio; the impact of permitting delays at San Antonio; the outcome of the strategic review of the San Antonio Project;
sustainability and environmental impacts of operations at the Company's properties; as well as other considerations that are believed
to be appropriate in the circumstances, and any other information herein that is not a historical fact may be "forward loo king
information". Material assumptions also include, management's perceptions of historical trends, the ability of exploration (i ncluding
drilling and chip sampling assays, and face sampling) to accurately predict mineralization, budget constraints and access to capital
on terms acceptable to the Company, current conditions and expected future developments, regulatory framework remaining defined
and understood, results of further exploration work to define or expand any mineral resources, as well as other considerations that
are believed to be appropriate in the circumstances. Osisko Development considers its assumptions to be reasonable based on
information currently available, but cautions the reader that their assumptions regarding future events, many of which are beyond
the control of Osisko Development, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect
Osisko Development and its business. Such risks and uncertainties include, among others, risks relating to capital market conditions
and the Company's ability to access capital on terms acceptable to the Company for the contemplated exploration and development
at the Company's properties; the ability to continue current operations and exploration; regulatory framework and presence of laws
and regulations that may impose restrictions on mining; the ability of exploration activities (including drill results and chip sampling,
and face sampling results) to accurately predict mineralization; errors in management's geological modelling; the ability to expand
operations or complete further exploration activities; the timing and ability of the Company to obtain required approvals and permits;
the results of exploration activities; risks relating to exploration, development and mining activities; the global economic climate;
metal and commodity prices; fluctuations in the currency markets; dilution; environmental risks; and community, non-governmental
and governmental actions and the impact of stakeholder actions. Readers are urged to consult the disclosure provided under th e
heading "Risk Factors" in the Company's annual information form for the year ended December 31, 202 3 as well as the f inancial
statements and MD&A for the year ended December 31, 2023, which have been filed on SEDAR+ (www.sedarplus.ca) under Osisko
Development's issuer profile and on the SEC's EDGAR website (www.sec.gov), for further information regarding the risks and other
factors facing the Company, its business and operations. Although the Company's believes the expectations conveyed by the forward-
looking statements are reasonable based on information available as of the date hereof, no assurances can be given as to futu re
results, levels of activity and achievements. The Com pany disclaims any obligation to update any forward -looking statements,
whether as a result of new information, future events or results or otherwise, except as required by law. Forward-looking statements
are not guarantees of performance and there can be no assurance that these forward-looking statements will prove to be accurate,
as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers s hould
not place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange,
securities commission or other regulatory authority has approved or disapproved the information contained herein.