Osisko Development Reports Fourth Quarter 2021 and Year-End Results
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OSISKO DEVELOPMENT REPORTS FOURTH QUARTER 2021 AND
YEAR-END RESULTS
Montreal, February 24, 2022 – Osisko Development Corp. ( "Osisko Development " or the
"Company") (ODV: TSX-V) is pleased to report its financial and operating results for the three months
ended December 31, 2021.
Fourth Quarter and Full Year 2021 Highlights
The Company began test mining and gold production from the Bonanza Ledge phase 2 mine
and the San Antonio Stockpile heap leach mine.
The Company recently entered into an agreement to acquire the high grade Trixie gold mine
and prolific East Tintic mining district in Utah. The Trixie project is anticipated to add
meaningful low-cost production to Osisko Development with expected low capital intensity.
The Company advanced permitting on both its Cariboo and San Antonio Projects and expect
to have required permits in hand to begin construction in late 2022 and early 2023.
The Company invested significant capital towards advancing the Cariboo and San Antonio
gold projects by purchasing long lead items such as roadheaders , milling equipment, ore
sorter and upgrading and or building new lodging, energy and access infrastructure.
The cash position for the Company as of December 31, 2021 was $33.4 million, and the
market value of equity investments approximately CAD$87.4 million.
During the quarter the Company continued to operate in a safe and environmentally friendly
manner while continuing to develop and uphold relationships with the community and
Indigenous Nations. The Cariboo Gold Project is advancing through Environmental
Assessment Process for a 4,750 tonne per day underground operation with a feasibility study
targeted for completion in the first half of 2022. The receipt of the Environmental Assessment
Certificate remains on schedule for the fall of 2022. The Cariboo Gold Project is the first
project in the Province of British Columbia going through the new Environmental Assessment
Process and has strong support from the Province and the Cariboo Region to develop and
diversify the economy of the region affected by the pandemic.
Other important highlights in permitting are:
o The Company successfully obtained approval for amendments to Mines Act Permits
M-238 and M -198 allowing the expansion of the existing Bonanza Ledge II
underground mine during the fourth quarter.
o The Company received the Notice of Work permit to commence underground
development and collect a 10,000 tonnes bulk sample for its Cariboo Gold Project
to further increase confidence in the Project .The aim of the bulk sample is to further
test the ore sorting technology and roadheader development.
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The roadheader tested at the Bonanza Ledge site, which reached performance above
expectation, was purchased and Osisko Development placed an order to secure two other
roadheaders for the Cariboo Project. An ore sorter was purchased and will be
commissioned to use in this bulk sample test. The portal construction for the bulk sample is
completed and development has begun.
The Company purchased and installed two water treatment plants (“WTP”) for the Bonanza
Ledge site and the QR Mill for environmental requirements. The WTP at Bonanza Led ge
was commissioned since June and the QR Mill will be commissioned in March 2022. Both
installations will be re-used for the future Cariboo Gold Project and show the commitment
of the Company toward improving environmental performance.
On the exploration and geology fronts, the Company drilled 152,500 meters in 2021
principally to support the feasibility study on the Cariboo Gold Project. The drill program was
successful in defining robustness of geologic model, continuity of the high gr ade vein
corridors as well as adding potential at depth and along strike . The drilling will be included
in a mineral resource update to support the feasibility study in Q2 2022. Highlights of the
drill campaign included 35.25 g/t Au over 11.0 meters, 7.35 g/t Au over 23.98 meters, and
281 g/t Au over 0.50 meter, 1,965 g/t Au over 0.50 meter at the Shaft Zone, 26.58 g/t Au
over 5.05 meters and 7.87 g/t Au over 10.25 meters at the Valley Zone. In Mexico, the
27,900 meters were drilled in 2021 on the San Antonio Gold Project to support a maiden
open pit mineral resource estimate to be completed in Q1 2022. Complete drill results are
yet to be released with t he highlights to date of 3.93 g/t Au over 13.5 meters , 2.14 g/t Au
over 21.65 meters, 1.52 g/t Au over 29.2 meters 1.02 g/t Au over 39.90 meters, 1.30 g/t Au
over 22.0 meters in oxide and sulphide zones at Sapuchi, California and Golfo de Oro
targets. For more information, refer to our press releases filed on www.sedar.com.
The Company incurred a net loss of $56.5 million during the quarter. The net loss is mostly
due to the recognition of a non-cash impairment in the amount of $47.8 million, of which $42.0
million is related to an impairment on certain exploration and evaluation properties, including
the James Bay properties and the Coulon zinc project in Canada. The remaining $5.8 million
non-cash impairment is related to the revaluation of the stockpile inventory held at Sapuchi
Minera.
The Company divested of certain investments from its portfolio generating gross proceeds of
$20.6 million in 2022.
“We are pleased by the progress achieved to date at both Cariboo and San Antonio. The ongoing
work at Cariboo has advanced our Environmental Assessment and Feasibility Study bringing us closer
to our major milestones. The exploration model and metallurgical test work at Cariboo have continued
to build value as we finish this work and better unde rstand this project and the upside. It is a rare
exceptional op portunity in Canada. The San Antonio project has more t han fulfilled our original
expectations and we continue to see near surface exploration results and upside. We have achieved
first production and look forward to building on that success.
The Tintic opportunity is one of the most exceptional high grade opportunities we have seen and we
look forward to closing this acquisition and doing what Osisko does best and unlock the geological
potential of this historic camp. I want to thank all the Sha reholders, Stakeholders and employees for
their support throughout a very challeng ing period for everyone. It is truly appreciated by all of us.”
Commented Sean Roosen, Chair and Chief Executive Officer of Osisko Development.
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Financing and Future Projects
On January 25th, 2022, the Company announced that it had entered into binding agreements
to acquire 100% ownership of the ultra high grade, producing and permitted Trixie Mine, as
well as a land package covering over 17,000 acres and hosting 23 past-producing mines in
Central Utah’s historic Tintic Mining District (the “Tintic Acquisition”). Closing of the Tintic
Transaction is expected to occur in Q2 2022.
Concurrently with, or shortly following the Tintic Acquisition, the Company entered into the
financing arrangements set out below:
o A non-binding metals stream term sheet with Osisko Gold Royalties which, on closing
of the Tintic Acquisition, would provide the Company with upfront cash proceeds of
at least US$20 million and up to US$40 million;
o A non-brokered private placement for aggregate gross proceeds to the Company of
approximately US$110.3 million, which will be held in escrow until certain conditions
are met, including the Company listing its common shares on the New York Stock
Exchange; and
o A bought-deal private placement with a syndicate of underwriters for aggregat e
proceeds of CAD$90 million, which will be held in escrow subject to closing of the
Tintic Acquisition.
Consolidated Financial Statements
Osisko Development’s audited annual consolidated financial statements and management's
discussion and analysis for the three months and full year ended December 31, 2021 are available
on the Company’s website at www.osiskodev.com, and on SEDAR under the Company ’s profile at
www.sedar.com.
Conference Call
Osisko Development will host a conference call on February 25, 2022 at 9:00 A.M., Eastern Time to
discuss the quarterly and year-end results.
Date: February 25, 2022 at 9:00 A.M., EST
Dial-in Numbers:
- North American Toll-Free: 1 (888) 880-5501
- Local and International: 1 (438) 800-1833
- Access Code: 8787742
The replay will also be available on the Company’s website
athttps://osiskodev.com/investors/#events
Qualified Persons
Per National Instrument 43-101 Standards of Disclosure for Mineral Projects, Maggie Layman, P.Geo.
Vice President Exploration of Osisko Development Corp., is a Qualified Person and has prepared,
validated, and approved the technical and scientific content of this news release.
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For further details on the Tintic project please see the press release of Osisko Development Corp.
dated January 25, 2022.
For further details about the Cariboo Gold project described above, please see the following technical
report, available on the website of the Company and www.sedar.com, titled "NI 43 -101 Technical
Report and Mineral Resource Estimate for the Cariboo Gold Project", British Columbia, Canada" dated
October 5, 2020, by Christine Beausoleil, P.Geo. and Carl Pelletier, P.Geo. of InnovExplo Inc., Val-
d’Or (Québec).
About Osisko Development Corp.
Osisko Development Corp. is uniquely positioned as a premier gold development company in North
America to advance the Cariboo Gold Proj ect and other Canadian and Mexican properties, with the
objective of becoming the next mid -tier gold producer. The Cariboo Gold Project, located in central
British Columbia, is Osisko Development's flagship asset with measured and indicated resources of
21.44 Mt at 4.6 Au g/t for a total of 3.2 million ounces of gold and inferred resource of 21.69 Mt at 3.9
Au g/t for a total of 2.7 million ounces of gold (see NI 43 -101 Technical Report and mineral resource
estimate effective October 5th, 2020). The considerable exploration potential at depth and along strike
distinguishes the Cariboo Gold Project relative to other development assets as does the historically
low, all -in discovery costs of US $19 per ounce. The Cariboo Gold Project is advancing through
permitting as a 4,750 tonnes per day underground operation with a feasibility study on track for
completion in the first half of 2022. Osisko Development's project pipeline is complemented by
potential near-term production targeted from the San Antonio gold project, located in Sonora Mexico
and early exploration stage properties including the Coulon Project and James Bay Properties located
in Québec as well as the Guerrero Properties located in Mexico. Osisko Development began trading
on the TSX Venture Exchange under the symbol “ODV” on December 2, 2020 and the Company’s
14,789,373 outstanding share purchase warrants were listed on the TSX Venture Exchange under the
symbol “ODV.WT” on October 25, 2021.
For further information, please contact Osisko Development Corp.:
Jean Francois Lemonde
VP Investor Relations
Tel: 514-299-4926
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Forward Looking Statements
Certain statements contained in this press release may be deemed “forward ‐looking statements”
within the meaning of applicable Canadian and U.S. securities laws. 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 conditional, 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
management’s perceptions of historical trends, current conditions and expected future developments,
results of further exploration work to define and expand mineral resources, that all conditions for the
acquisition of 100% of Tintic Consolidated Metals LLC will be met in a timely manner and that expected
the benefits of such acquisition will be achieved, that all conditions to the closing of the non-brokered
private placement and the bought-deal private placement will be met in a timely manner, the results
of permitting processes as well as the timely delivery of such permits, including the Environmental
Assessment Certificate, the result of the buck sample, the timely commissioning of the WTP at the QR
mill, the exploration potential at the San Antonio project, the ability to execute projects pursuant to
permits, the ability to obtain equipment on time and bud get on terms acceptable to Osisko
Development, the ability to continue safe operations and relationships with communities in which we
operate, the ability to continue test mining in Utah following acquisition and the results of such mining,
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, the abili ty to meet all conditions for the acquisition of 100% of Tintic
Consolidated Metals LLC the closing of the non -brokered private placement and the bought -deal
private placement , risks relating to the ability of exploration activities (including drill result s) to
accurately predict mineralization; errors in management’s geological modelling; the ability of to
complete further exploration activities, including drilling and development of the Cariboo and San
Antonio properties; and the royalty and stream interests affecting respectively the Cariboo project and
the San Antonio gold project; the ability of the Corporation to obtain required approvals; the results of
exploration activities; risks relating to exploration, development and mining activities; the globa l
economic climate; metal prices; dilution; environmental risks; and community and non -governmental
actions and the responses of relevant governments to the COVID-19 outbreak and the effectiveness
of such responses.
For additional information with respect to these and other factors and assumptions underlying the
forward‐ looking statements made in this news release concerning Osisko Development, see the Filing
Statement available electronically on SEDAR (www.sedar.com) under Osisko Development's issuer
profile. The forward ‐looking statements set forth herein concerning Osisko Development reflect
management's expectations as at the date of this news release and are subject to change after such
date. Osisko Development disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise, other than as required
by law.
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the polic ies 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.