OSISKO DEVELOPMENT REPORTS SECOND QUARTER 2023 RESULTS (All monetary references are expressed in Canadian dollars
NYSE: ODV TSXV: ODV NEWS RELEASE
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OSISKO DEVELOPMENT REPORTS SECOND QUARTER 2023 RESULTS
(All monetary references are expressed in Canadian dollars, unless otherwise indicated)
Montreal, Québec, August 8, 2023 – Osisko Development Corp. (NYSE: ODV, TSXV: ODV) ("Osisko
Development" or the "Company") is pleased to report its financial and operating results for the three
months ended June 30, 2023 ("Q2 2023").
Q2 2023 HIGHLIGHTS
Operating, Financial and Corporate Updates:
• 3,830 ounces of gold sold by the Company from operating activities, comprising of:
o 1,576 ounces of gold sold from the Trixie test mine ("Trixie") located within the Company's
wider Tintic Project;
o 1,244 ounces of gold sold from the San Antonio Gold Project (" San Antonio ") by
processing stockpiles via heap leaching; and
o 1,010 ounces of gold sold from the Cariboo Gold Project (" Cariboo") by processing
stockpiles at a third-party processing facility.
• $10.8 million in revenues and $11.4 million in cost of sales generated from operating activities.
• On May 5, 2023, the Company announced the supplemental listing of certain previously-issued
common share purchase warrants of the Company (" Warrants") on the TSX V enture Exchange
(the "Exchange") effective as of the opening of markets on May 8, 2023. These Warrants include:
(i) an aggregate 7,752,916 Warrants expiring on March 2, 2027, and (ii) an aggregate 11,363,933
Warrants expiring on May 27, 2027 (see news release dated May 5, 2023). These Warrants have
been subsequently listed for trading on the Exchange under the symbols "ODV.WT.A" and
"ODV.WT.U", respectively.
• The Company announced the results of its annual meeting of shareholders held on May 11, 2023,
and on June 30, 2023, granted deferred share units of the Company ("DSUs") to its independent
directors as part of its regular annual remuneration program , in accordance with the DSU Plan of
the Company.
• As at June 30, 2023, the Company had approximately $86.9 million in cash.
• Based on current projections, the Company believes that the capital resources available to Osisko
Development as at June 30, 2023 are insufficient to fund its planned development, exploration and
corporate activities for the next 12 months. To execute on its planned activities, the Company will
need to seek additional funding and/or make adjustments to the timing thereof or reduce planned
expenditures. The Company is exploring options to secure additional financing; however, there i s
no assurance that future financing(s) will be available or be available on favorable terms (refer to
Note 1 in the financial statements relating to going concern).
Tintic Project – Utah, U.S.A. (100%-owned)
• Approximately 85% of the 1,390 meter ("m") (or 4,550 f eet ("ft.")) of the Trixie portal and
underground decline ramp has been completed as at June 30, 2023. The Company anticipates
completion of the decline ramp to the main 625 feet underground level by Q3 2023.
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• Target to ramp up processing capacity to 500 short tons per day is subject to completion of required
mine and mill infrastructure upgrades, updated mineral resources estimate ( "MRE") and ongoing
technical work . Small-batch VAT leaching recommenced during t he quarter as the Company
advanced ongoing technical work in connection with the required mine and m ill infra structure
upgrades.
• During the quarter, the Company continued underground exploration and delineation activities on
the existing Trixie deposit with two diamond drill rigs operating as part of its 2023 underground infill
and exploration program targeting a total of 5,000 m (16,404 ft.).
• As of June 30, 2023, a total of 4,415 m (14,485 ft.) were drilled in 56 holes, with assay results for
19 holes released on May 17, 2023. Assay results for an additional 14 holes was released on July
18, 2023 (see Subsequent to Q2 2023). Assay results for the remaining drill holes are pending.
• On April 3, 2023, and on May 4, 2023, the Company disclosed assay results from an aggregate of
50 diamond drilling holes from the 2022 underground exploration program at Trixie . On June 27,
2023, the Company also released underground sampling results from its ongoing 2023 exploration
program at Trixie.
• The Company is currently working on an updated MRE for the Trixie deposit to incorporate the new
2023 drilling results and the remaining 2022 drilling that was not included in the Tintic Technical
Report (as defined herein) published on January 27, 2023 (with an effective date of January 10,
2023), due to assay lab delays. This new MRE is expected to be completed once the 2023 drilling
program has concluded and all assay results have been received.
• An initial regional surface diamond drilling campaign to test for copper-gold-molybdenum porphyry
mineralization potential, namely in the Big Hill area, is anticipated to commence in the following
months. Subsequent to quarter end, a diamond drill rig from Major Drilling America of Salt Lake
City, Utah, arrived at site in preparation of the contemplated surface drill campaign (see Figure 1).
• Data compilation from historic mines in the area is ongoing and anticipated to generate additional
exploration drill targets on the greater Tintic Project property.
Figure 1: Diamond Drill Rig to Test Copper-Gold-Molybdenum Porphyry Mineralization
Potential Arrives at Tintic Project in July 2023
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Cariboo Gold Project – British Columbia, Canada (100%-owned)
• On May 8, 2023, the Company announced the signing of two landmark permitting agreements, the
Process Charter and the Joint Information Requirements Table, reaffirming the multilateral support
of and commitment by the various levels of the Government of British Columbia ("BC") to advance
the approval process of the Cariboo Gold Project. The Company also executed several project
electrification initiatives in partnership with BC Hydro's CleanBC Industry Fund and the CleanBC
Facilities Electrification Fund, which are important steps in supporting the Company's efforts in
reducing the carbon footprint of the Cariboo Gold Project.
• The Company anticipates that the potential development of Cariboo may provide a basis for
progress towards the establishment of a broader mining distric t camp, including development of
multiple deposits over several trends totalling approximately 80 km of mineralization. For further
information regarding Cariboo and the Cariboo Feasibility Study refer to Technical Reports.
• The Company anticipates receivin g the Environmental Assessment Certificate in Q3 2023 and
permits by the end of Q1 2024, targets which are aligned with the timelines established in the
Process Charter.
San Antonio Gold Project – Sonora State, Mexico (100%-owned)
• As of June 30, 2023, the Company sold a total of 12,788 net ounces of gold (gross 14,072 ounces)
from the San Antonio heap leach pad since commencing processing of stockpile inventory in Q1
2022. A total of 1,244 net ounces of gold was sold in Q2 2023 (gross 1,008 ounces).
• On April 29, 2023, Mexico's Senate approved a wide-ranging reform of laws governing the mining
industry, including a requirement that companies pay a percentage of profits to various
stakeholders. The new mining law reduces the maximum length of concessions from 50 to 30 years,
and may allow authorities to cancel concessions if no work is done on them within two years. The
Company is closely monitoring the situation and will continue to assess the potential impacts on its
Mexican assets.
• The Company will continue its efforts on the remaining stockpile processing, which is expected to
be completed in Q3 2023. The Company awaits next steps from the government of Mexico with
respect to the permitting process.
SUBSEQUENT TO Q2 2023
• On July 18, 2023, the Company disclosed assay results from 14 diamond drilling holes and chip
sampling results from new development areas from its ongoing 2023 underground infill and
exploration program at Trixie. Select assay results highlights included (see news release dated July
18, 2023):
o 65.00 grams per tonne ("g/t") gold ("Au") and 344.39 g/t silver ("Ag") over 4.57 m in hole
TRXU-DD-23-026 (1.90 troy ounces per short ton ("oz/t") Au and 10.04 oz/t Ag over 15 ft.).
• On July 6, 2023, the Company announced that in accordance with the terms of the Company's
previously-completed acquisition in May 2022 of a 100% ownership interest in the Tintic Project, it
had satisfied the first of five deferred payments to the sellers. Deferred consideration of
US$2,500,000 was satisfied by an amount of US$250,000 ($334,400) paid in cash in June 2023
and an amount of US$2,250,000 ($2,986,425) settled by the issuance of 454,026 common shares
on July 6, 2023.
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 and six months ended June 30, 2023 are
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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.
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, and François Vézina, ing.,
P.Eng., MBA, Senior Vice President, Project Development, Technical Services and Environment , each of
whom is a "qualified person" within the meaning of NI 43-101.
Technical Reports
Information relating to the Tintic Project and the current MRE for the Trixie deposit is supported by the
technical report titled "NI 43-101 Technical Report, Initial Mineral Resource Estimate for the Trixie Deposit,
Tintic Project, Utah, United States of America", dated January 27, 2023 (with an effective date of January
10, 2023) prepared for the Company by independent representatives of Micon International Limited (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 Cariboo 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 Consulting (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.
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 Trixie 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.
About Osisko Development Corp.
Osisko Development Corp. is a premier North American gold development company focused on high-quality
past-producing properties 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 brownfiel d exploration
potential of these properties, that benefit from significant historical 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 develop attractive, long -life, socially and environmentally
sustainable mining assets, while minimizing exposure to development risk and growing mineral resources.
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For further information, please contact Osisko Development Corp.:
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 viabi lity of
resources that are not mineral reserves has not been demonstrated. The mineral resource estimate disclosed in this news relea se
may be materially affected by geology, environmental, permitting, legal, title, socio -political, marketing or other rele vant 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 develops will require significant
capital expenditures. To obtain such funds, the Company may sell additional securities including, but not limited to, the Com pany’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 explo ration programs and finance the
development of any potentially economic deposit that is identified on acceptable terms or at all. The failure to obtain the n ecessary
financing(s) could have a material adverse effect on the Company’s growth strategy, result s 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 recovery 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 and resumed in the second quarter of 2023.
Even with the resumption of small scale test -mining 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 flow to fund operations. Failure to achieve the anticipated production costs may have
a material adverse impact on the Company's cash flow and potential profitability. In continuing current operations at Trixie, the
Company has not based its decision to con tinue 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 information
regarding mineral properties, mineralization and estimates of mineral reserves and mineral resources, including the informati on 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 information in its technical reports, financial statements, MD&A and this news release, is not
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. 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 c ause actual results to differ materially from those
expressed or implied in these forward ‐looking statements. Forward ‐looking statements are not guarantees of performance. Words
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such as "may", "will", "would", "could", "expect", "believe", "plan", "anticip ate", "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 the assumptions, qualifications and limitations of the results of the
Technical Reports; the capital resources available to Osis ko 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 future financing and the terms of such fin ancing; management's perceptions of historical trends, current conditions and
expected future developments; the utility and significance of historic data, including the significance of the district hosti ng past
producing mines; future mining activities; th e timing and status of permitting; the timing and status to receive Environmental
Assessment Certificates and permits, if at all; the impact of the Government of Mexico's legislative amendments on the San Antonio
Gold Project; the timing and results of an updated MRE for the Trixie deposit; the unique mineralization at Trixie or the robust and
production scale at Cariboo ; the potential of high grade gold mineralization on Trixie and Cariboo; the results (if any) of further
exploration work to define and exp and mineral resources; the ability of exploration work (including drilling) to accurately predict
mineralization; the ability to generate additional drill targets; the ability of management to understand the geology and pot ential of
the Company's properties; the ability of the Company to expand mineral resources beyond current mineral resource estimates; the
timing and ability of the Company to complete upgrades to the mining and mill infrastructure at Trixie (if at all); the timing of resumption
of test mining activities at Trixie (if at all); the timing and ability of the Company to ramp up processing capacity at Trixie to 500 short
tons per day (if at all); the ability of the Company to complete its exploration objectives for its projects in 2023 in the t iming
contemplated (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 ability 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; 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 looking information". Material assumptions also include,
management's perceptions of historical trends, the ability of exploration (including drilling) to accurately predict mineralization, budget
constraints and access to capital on terms acceptable to the Company, current conditions and expected future developments, results
of further exploration work to define or expand any mineral resou rces, 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 currentl y
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 Develo pment
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) 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 consu lt the disclosure provided under the heading "Risk Factors" in the Company's annual information form
for the year ended December 31, 202 2 as well as the financial statements and MD&A which ha ve been filed on SEDAR +
(www.sedarplus.ca) under Osisko Developme nt's issuer profile and on the SEC's EDGAR website (www.sec.gov), for further
information regarding the risks and other factors applicable to the exploration results. 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 future results, levels of activity and achievements. The Company disclaims any obligation to up date
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 t here can be no assurance that these forward -looking
statements will prove to be accurate, as actual res ults and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that ter m 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.