Osisko Development Provides Projects Update [restated]
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Osisko Development Provides Projects Update
[restated]
MONTREAL, November 2, 2022 – Osisko Development Corp. ("Osisko Development" or the
"Company") (ODV: TSX.V & NYSE) is pleased to provide a corporate update on its 100% owned Tintic,
Cariboo Gold and San Antonio Projects.
As of September 30, 2022, Osisko Development has produced 19,874 ounces of gold ("Au") from its three
projects.
Tintic Project (Utah, USA) Highlights:
● 5,
353 ounces of gold produced at an average grade of 0.91 ounces per ton ("oz/t") Au (31.3 grams
per tonne ("g/t") Au) since the date of Osisko Development's acquisition ("Acquisition") of Tintic
on May 27, 2022.
● 2,613 tonnes processed via vat leaching on site in the third quarter of 2022 ("Q3 2022").
● 1,342 feet (409 meters) of portal and ramp construction complete (~25% complete).
● 20,
000 f eet (6,096 metres ) of reverse circulation (" RC") drilling and 1,898 ft. ( 622 m etres) of
diamond drilling since the date of the Acquisition, and four drill rigs currently in operation.
Cariboo Project (BC, Canada) Highlights:
● 7,163 ounces of gold produced at an average grade of 6.50 g/t Au from Bonanza Ledge Test Mine
in 2022 from 53,352 tonnes of mineralized material milled.
● F
inal documents for the Cariboo Gold Project Environmental Assessment filed and under final
review by the provincial government.
San Antonio Project (Sonora, Mexico) Highlights:
● 7,358 ounces of gold sold from the San Antonio heap leach pad in 2022.
● 1.1 million tonnes at an average grade of 0.58 g/t Au have been placed on the heap leach pad.
Tintic Project (Utah, USA)
O
sisko Development completed its Acquisition of the Tintic project on May 27, 2022 and has since focused
on the following objectives:
1. D
efining an initial mineral resource estimate, in compliance with National Instrument 43- 101 –
Standards of Disclosure for Mineral Projects ("NI 43-101") by the first quarter of 2023 to support
near term mine planning and production.
2. Increasing production following the completion of a decline ramp to improve access to Trixie by the
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hird quarter of 2023.
3. Generating new exploration targets and opportunities through historic data compilation.
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The Operational Highlights are discussed below:
● 5,353 oz of gold produced and sold since the Company completed its Acquisition of Tintic on May
27, 2022 at an average grade of 0.91 oz/t Au (31.3 g/t Au). Mineralized material comes from
blended T4 and T2 zones encountered during underground exploration development.
● 78% gold recoveries and completion of an on-site tails holding pad, currently in the process of being
permitted for heap leaching.
● Four rigs in operation (two underground diamond drills and two surface RC drill rigs).
● 20,000 feet (6,096 metres) of RC drilling and 1,898 ft. (642 m) of diamond drilling completed since
the completion of the Acquisition. Assay results are pending for this drilling.
● Continuous underground mine face and back sampling of T2 and T4. This information, together
with the diamond drill results, will form the basis of the initial mineral resource estimate.
● 1,007 feet (307 metres) of advancement in third quarter of 2022 along the Trixie portal and decline,
which is now approximately 25% complet e. Once fully complete, the decline will significantly
improve access to the underground workings, expand and increase underground exploration areas
and activities, and is expected to be the principal access for future larger scale mining on the T2
and T4 zones. Development of this decline will continue to the lower levels of Trixie, which was
historically mined to 1,350 feet (412 metres ) below surface with many stopes ending in
mineralization.
● 3,239 feet (987 metres) of underground development on or near the 625 level of Trixie along strike
of the T2 and T4 mineralized zones including exploration crosscuts driven orthogonal to the east
of the T2 and T4 zones, and 465 feet (142 metres) of raises excavated. This excludes production
stoping completed in the T2 mineralized zone.
● The on strike and depth limits of both the T2 high grade structure and the adjacent T4 and 75/85
zones are still yet undefined. This could potentially indicate growth potential for this part of the Trixie
mine.
● Construction of a new sample prep facility in the on-site assay laboratory and improvements in
process to maintain proficiency in quality assurance and quality control ("QA/QC") complete with
an external lab audit.
● Ongoing historical data compilation to generate exploration targets along strike of and within
historic mine areas.
The Company recently launched a 3D model of the Tintic Project on the Vrify platform. This 3D presentation
guides the viewer through the Trixie Project, geologic model, and historic and current underground
development. It also gives an in- depth view of our surface infrastructure, including an on- site assay
laboratory, processing and vat leach plant and rock sample library. Lastly, it gives a preview of our future
exploration plans and opportunities. Photos of the new ramp are also presented below.
Click Link below to view Vrify 3D Tintic Model:
TINTIC 3D MODEL
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Regional Exploration Update
The Tintic District is the second most prolific historic metal producer in Utah and the East Tintic District is
the least explored land package within the wider Tintic District with all 23 past producing mines in the East
Tintic District not outcropping and concealed and preserved by horst - graben development Basin and
Range tectonic event.
Regional Exploration Data integration and interpretation is defining new epithermal gold targets as well as
several new polymetallic carbonate replacement and porphyry targets. Since taking on the project, Osisko
Development, outside of the Trixie Mine area, has already identified two new gold targets and two porphyry
targets with potential to drill over the next 24 months.
Trixie Update
The Trixie mine is one of several gold and base metal targets within the larger Tintic Project consisting of
17,000 acres of patented and mineral leases within the historic Tintic Mining District of Central Utah. The
T2 and T4 structures at Trixie show multi ounce gold grades associated with high sulphidation alteration
hosted within quartzites. High grade mineralized material from the T2 and T4 structures is being processed
via vat leaching on site. Table 1 summarizes the key operational details that were accomplished at Trixie
in the month of June as compared with Q3 2022.
Table 1: Key Operation Details for Trixie
Trixie Key Operating Details
June 2022 Q3 2022
Mineralized Material Milled in Short tons
(tonnes) 840 (762) 2,880 (2,613)
Mill Throughput in Short tons/day
(tonnes/day) 28 (25.4) 31.3 (28.4)
Blended T2 & T4 Diluted Head Grade in
troy oz/ton Au (grams/tonne Au) 1.2 (41.1) 0.83 (28.5)
Gold Recovery (%) 78% 78%
Gold Produced and Sold (troy oz) 1,753 3,600
Trixie Portal Development feet (metres) - 1,007 (307)
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Figure 1: Trixie Portal
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Figure 2: Trixie Decline
Cariboo Gold Project (BC, Canada)
The Cariboo Gold Project is in advanced stages of permitting and economic studies, as summarized in the
following highlights:
● The Feasibility Study ("FS") for the Cariboo Gold project is scheduled to be completed before the
end of the 2022 calendar year . The FS is being designed to account for the current inflationary
environment and will contemplate a staged, lower capital intensity project with scalable
infrastructure. This approach to developing the Cariboo Project will mit igate capital intensity risk
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while also maximizing our margins as well as our ability to exploit what we anticipate to be multiple
deposits over two trends totalling approximately 80 km of mineralization, with the ultimate goal of
establishing a large mining camp.
● Signing Ceremony on October 23, 2022 with Lhtako Dene First Nation' s Elders and Members in
Wells and Quesnel was an important event for the life of project agreement between Lhtako Dene
First Nation and Osisko Development highlighting the import ance of our partnership and mutual
support and benefits.
● The Revised Application for the Environmental Assessment ( "EA") Process was submitted to the
Environmental Assessment Office of British Columbia (the " EAO") on October 14, 2022 for the
Cariboo Gold Project. The 1,700 comments received by the different reviewers were successfully
addressed and the Company is expecting the official acceptance by the Ministry of Energy Mines
and Low Carbon Innovation (the " Ministry") by mid- November 2022 to proceed to the Affect
Assessment & Recommendations, which is the last phase of the Environment Assessment
process. This aligns with the Company 's expec ted timeline to receive the EA Certificate in first
quarter of 2023 for an operational capacity of 4,750 tonnes / day.
● In parallel to the EA process, the Company initiated an official application for the permitting of the
Cariboo Gold Project with the submission of the Project Description to the Ministry on September
30, 2022. The Company expects to receive final permits in fourth quarter of 2023.
● All drilling and geologic modeling work has been completed and 2022 assay results will be released
upon final QA/QC controls shortly.
● Outside of the Cariboo Gold Project area there are 25 high quality drill-ready targets demonstrating
the years of ongoing exploration in the miner al rights held by the Company around the Cariboo
Gold Project.
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Figure 3: Cariboo Gold Property mineral occurrences and permitted areas for drill ready targets
The Cariboo Project is Osisko Development's flagship asset with a measured mineral resource of 9 k oz of
Au (47 Kt grading 5.1 g/t), an indicated mineral resources of 3.46 M oz of Au (27.1 Mt grading 4.0 g/t Au)
and an inferred mineral resource of 1.62 M oz of Au (14.4 Mt grading 3.5 g/t Au). See Company news
release dated May 24, 2022. The total land package of 155,000 hectares and approximately 80 kilometers
strike of mineral targets, providing prospective opportunities for future discoveries (Figure 3).
Information outlined above 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 economic mineral reserves and that the economic viability of mineral resources that are not mineral
reserves has not been demonstrated. The estimate of mineral resources may be materially affected by
geology, environmental, permitting, legal, title, socio-political, marketing, or other relevant issues. It cannot
be assumed that all or any part of an inferred mineral resource will ever be upgraded to an indicated or
measured mineral resource category. 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 Canadian rules, estimates of
inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies
except for a preliminary economic assessment as defined under NI 43- 101. Readers are cautioned not to
assume that further work on the stated resources will lead to mineral reserves that can be mined
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economically. Readers are cautioned that the Cariboo Technical Report (as defined below) , being a
preliminary economic assessment (within the meaning of NI 43- 101), is preliminary in nature and includes
inferred mineral resources that are considered too speculative geologically to have economic consideration
applied to them that would enable them to be categorized as mineral reserves. There is no certainty that
the preliminary economic assessment (within the meaning of NI 43-101) will be realized.
San Antonio Project
Highlights from the San Antonio 2022 work program are as follows:
● 1,062,864 tonnes from stockpile placed on heap leach pad, with an average grade of 0.58 g/t Au
and 0.25 g/t silver ( "Ag") for an estimated total of 20,090 oz of Au and 8,818 oz of Ag. The gold
grades were slightly higher than the original estimated 0.57 g/t prior to placement on the leach pad.
● 10,149 oz of Au and 3,516 oz of Ag at recoveries to the end of the third quarter of 2022 of 50.5%
for gold and 39.9% for silver total production from heap leach pad as of October 27, 2022.
The San Antonio Gold Project, located in the state of Sonora, Mexico, includes five known deposits and at
least a dozen other gold exploration targets over 11,338 hectares. A recent mineral resource estimate (see
news release dated June 30, 2022) includes 576,000 oz of Au and 1.37 million ounces of Ag (14.9 million
tonnes grading 1.2 g/t Au and 2.9 g/t Ag) in the indicated mineral resource category and 544,000 ounces
of gold and 1.76 million ounces of silver (16.6 million tonnes grading 1.0 g/t Au and 3.3 g/t Ag) in the inferred
mineral resource category. The San Antonio Project gold mineralization is characterized by hydrothermal
breccia that forms an approximately 3,000 metres long east-northeast trending mineralization corridor with
the Luz del Cobre copper deposit at the east.
Figure 4: Crushing of stockpile at San Antonio