Osisko Announces Preliminary Q2 2023 Deliveries and Provides Company Update
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OSISKO ANNOUNCES PRELIMINARY Q2 2023 DELIVERIES
AND PROVIDES COMPANY UPDATE
Montréal, July 6th, 2023 – Osisko Gold Royalties Ltd (the “ Corporation” or “Osisko ”) (OR: TSX & NYSE) is
pleased to provide an update on its second quarter 2023 deliveries, revenues, cash margin and recent asset
advancements. All monetary amounts included in this report are expressed in Canadian dollars, unless otherwise
noted.
PRELIMINARY Q2 2023 RESULTS
Osisko earned approximately 24,645 attributable gold equivalent ounces1 (“GEOs”) in the second quarter of 2023,
including 1,527 GEOs earned from the recently acquired CSA silver stream, for which revenues are expected to
be recognized in the third quarter of 2023.
Osisko recorded preliminary revenues from royalties and streams of $60.5 million during the second quarter and
preliminary cost of sales (excluding depletion) of $4.3 million, resulting in a quarterly cash margin2 of approximately
$56.2 million (or 93%).
Paul Martin, Interim CEO of Osisko, commented: “It is a privilege to be granted the opportunity to become Interim
CEO of Osisko, a leading royalty company with an exceptional portfolio of assets. I look forward t o overseeing
management’s continued execution of its successful strategy of originating and delivering high quality royalty and
streaming transactions while the board continues its search for the next leader of the company. ”
Osisko will provide full produ ction and financial details with the release of its second quarter 2023 results after
market close on Wednesday, August 9th, 2023 followed by a conference call on Thursday, August 10th at 10am ET.
More details are provided at the end of this release.
PORTFOLIO UPDATE
Canadian Malartic Mine Life Extension and Update (5% NSR royalty on open pit and 3-5% NSR royalty on
underground)
On June 30th, Agnico Eagle Mines Limited (“Agnico Eagle”) provided results from an internal study on the Odyssey
underground mine (the “2023 Study”) and exploration results from the Canadian Malartic Complex. The 2023
Study highlighted a 23% increase in life-of-mine payable gold production from the Odyssey mine compared to the
internal study from 2020. The 2023 Study also outlined an extension of the mine life to 2042 with a mine plan that
includes approximately 9.0 million ounces of gold, including 0.2 million ounces of gold in Mineral Reserves (2.8
million tonnes grading 2.22 grams per tonne "g/t" gold), 4.8 million ounces of gold in Indicated Resources (45.5
million tonnes grading 3.31 g/t gold) and Inferred Resources of 4.0 million ounces of gold (53.5 million tonnes
grading 2.32 g/t gold).
Agnico Eagle noted that the potential for further conversion of Inferred Resources is significant and expected to
further add to mine life. With additional exploration, Agnico Eagle believes that mineralization will continue to be
added into the overall mine plan in the coming years, with good potential to grow annual gold production and
further extend the mine life.
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Figure 1: Canadian Malartic Production Profile
Source: Agnico Eagle Press Release, June 20, 2023
In 2023, Agnico Eagle expects to spend approximately $21.8 million for 164,000 meters of drilling at Canadian
Malartic and its adjoining properties. Approximately 95,030 meters were drilled during the first five months of 2023.
Up to fifteen drills were active on Canadian Malartic and its surrounding properties during the same period, with
five underground drills currently completing infill drilling on the Odyssey South deposit, four surface drills focused
on completing infill drilling and transitioning to expand East Gouldie mineralization, and up to six drills active in
regional exploration.
Drilling from underground in the Odyssey South deposit gradually increased during the first half of 2023 as ramp
development provided access to new drill bays to test Odyssey South and Odyssey internal zones. As at May 31st,
the ramp was 3,645 meters in length, reaching the bottom of the Odyssey South deposit at a depth of 578 meters.
Shaft sinking activities started in March, with 55 meters completed as of June 20 th. Underground infill drilling into
Odyssey South continued to confirm the widths and grades of mineralization. With continued infill drilling success,
Agnico Eagle’s expectation is that Probable Mineral Reserves will continue to grow and replace 2023 production
from that zone. Exploration drilling from the Odyssey ramp is also increas ing confidence in the adjacent Odyssey
internal zones and demonstrating good continuity of gold mineralization within these internal structures. The gold
mineralization encountered to date in the Odyssey internal zones has not been included in the current mine plan
and could represent an attractive near -term exploration opportunity considering the zone’s proximity to existing
and planned underground mine infrastructure around the Odyssey South and Odyssey North deposits. Agnico
Eagle indicated that positive drill results at Odyssey internal zones show the potential to further increase production
during the operation’s 2023-2028 transition period.
Exploration at the Odyssey mine in 2023 is expected to include $11.8 million for 102,000 meters of drilling focused
on the following four objectives:
I. Continued drilling into East Gouldie to convert additional Inferred Resources to Indicated Resources
towards the outer portions of the deposit
II. Testing the immediate extensions of East Gouldie to the west and at shallower depths
III. Continued conversion drilling into extensions of Odyssey South; and
IV. Further investigate Odyssey internal zones
Select intercepts from recent drilling at Odyssey are shown in Figure 2.
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Figure 2: Canadian Malartic Long Section
Source: Agnico Eagle Press Release, June 20, 2023
Agnico Eagle continues to expect to have 40,000 tonnes per day (“tpd”) of excess mill capacity starting in 2028 as
processing of open pit ore and low -grade stockpiles gradually decreases and transitions to the higher -grade
Odyssey underground mine. This additional mill capacity provides significant optionality for organic growth at
Canadian Malartic and the greater land package. Agnico Eagle now controls 16.5 kilometers of continuous ground
along the Cadillac-Larder Lake break at its Canadian Malartic and adjoining properties. Agnico Eagle has budgeted
approximately $10 million in 2023 for 62,000 meters of regional exploration drilling on the Canadian Malartic, Rand
Malartic, Camflo, Midway and East Amphi properties which offer potential opportunities to supplement the existing
mine life with additional ore sources. Osisko holds 5% NSR royalties on East Amphi and Midway.
In addition to near-mill exploration, Agnico continues to explore the possibility of utilizing the excess mill and tailings
storage capacity at Canadian Malartic to support other regional projects. Current internal studies include potential
sources of ore from the Macassa near surface deposits and the AK deposit (2% NSR Royalty), the Upper Beaver
project (2% NSR Royalty), other Kirkland Lake satellite deposits including Upper Canada and Anoki-McBean (2%
NSR Royalties), as well as the Wasamac project. Osisko holds a $0.40 per tonne mill royalty on any ore processed
at the Canadian Malartic mill that was not part of the initial Malartic property at the time of the sale to Yamana and
Agnico Eagle in 2014.
Figure 3: Regional Pipeline – Cadillac-Larder Lake Break
Source: Agnico Eagle Presentation “Canadian Malartic Complex Mine Tour”, June 21, 2023
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CSA Initial Deliveries and Update (100% Silver Stream and 3.0% Copper Stream)
On June 16th, Osisko Bermuda Limited (“OBL”) closed the previously announced silver purchase agreement (the
“Silver Stream”) and copper purchase agreement (the “Copper Stream”) referenced to production from the CSA
mine (“CSA”) with Metals Acquisition Limited (“MAC”). Deliveries of refined silver to OBL under the Silver Stream
will include approximately 1,527 GEOs in respect of silver produced at CSA between February 1 st and June 15th.
Deliveries of refined copper to OBL under the Copper Stream will commence in June 2024. Production in the first
half of 2023 was impacted by planned downtime of the process plant to complete upgrades to the grinding circuit.
On June 27th, MAC announced that it had shipped its first shipment of concentrate to customers in Asia containing
approximately 2,300 tonnes of copper and 28,000 ounces of silver. MAC has identified multiple opportunities to
improve productivity, optimize costs, lower cut-off grade, increase the resource and extend the mine life at CSA.
Costa Fuego Royalty Acquisition (1.0% Copper NSR Royalty and 3.0% Gold NSR Royalty)
On June 28 th, Osisko announced a binding agreement to acquire a 1.0% copper NSR royalty and a 3.0% gold
NSR royalty covering Hot Chili Limited’s Costa Fuego Copper-Gold Project (“Costa Fuego”) in Chile.
Costa Fuego is one of the world’s largest undeveloped copper projects, not currently controlled by a major mining
company. It hosts an NI 43 -101 Indicated Resource including both the open pit and underground portions of the
Cortadera and Productora deposits, of 725 million tonnes grading 0.47% Copper Equivalent (“CuEq”), grading
0.38% Copper, 0.11 g/t gold, 0.45 g/t silver and 93 ppm Molybdenum and an Inferred Resource of 202 million
tonnes grading 0.30% copper and 0.06 g/t gold. The June 2023 PEA projects at 16 year mine life with average
annual production of 95 thousand tonnes of copper and 49,000 ounces of gold in the first 14 years.
Costa Fuego is situated at low altitude and is in close proximity to all key infrastructure requirements. An updated
resource is scheduled for late 2023 and will serve as the basis for a PFS, scheduled for completion in the second
half of 2024.
Gibraltar Stream Increase (87.5% Silver Stream)
On June 29 th, Osisko a nnounced an amendment to its silver stream on the Gibraltar copper mine (“Gibraltar”).
Osisko and Taseko Mines Limited (“Taseko”) have amended the silver stream to increase Osisko’s effective
stream percentage by 12.5% to 87.5%. Further , the step-down silver deliver y threshold has been extended to
coincide with Taseko’s recently updated mineral reserve estimate for Gibraltar.
Mantos Blancos Ramp Up (100% Silver Stream)
On May 3rd, Capstone Copper (“Capstone”) discussed its progress on the ramp up at Mantos Blancos, including
continued focus on preventative maintenance to increase reliability and reduce downtime. Average throughput
during the first quarter was 16,023 tpd (compared to 15,246 tpd in the fourth quarter of 2022). The quarter included
eighteen days operating at 20,000 tpd and an average throughput rate of 19,000 tpd in February. On their first
quarter conference call, Capstone indicated that higher throughput at Mantos Blancos is anticipated over the
balance of the year. OBL expects to see stronger deliveries under the stream in the second half of 2023.
Capstone is currently evaluating the potential to further increase throughput of the Mantos Blancos sulphide
concentrator plant from 20,000 tpd to 27,000 tpd using idled mill capacity with the potential for additional production
through 2032. The Mantos Blancos Phase II feasibility study is expected to be released in the second half of 2023.
Eagle Ramp Up (5.0% NSR Royalty)
On July 5th, Victoria Gold Corp. (“Victoria”) reported second quarter production of 45,568 ounces of gold resulting
in production of 83,188 ounces of gold during the first half of 2023. This represents a 47% improvement over the
56,413 ounces of gold produced in the first half of 2022. Both gold grade and metallurgical recovery continue to
reconcile well against the Eagle reserve model.
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Island Exploration Success (1.38% to 3.0% NSR Royalty)
On June 15th, Alamos Gold Inc. (“Alamos”) reported new results from underground drilling at the Island Gold mine,
further extending high-grade gold across the deposit, including several recently defined hanging wall and footwall
structures in close proximity to existing underground infrastructure. Continued exploration success within recently
defined sub-parallel structures demonstrates the significant opportunities to add high- grade ounces near existing
mining horizons. This includes the newly defined NS1-Zone in the hanging wall which is currently being developed
and mined; the zone is beyond existing Mineral Reserves and Resources and outside of the 2023 mine plan.
A total of $14 million is budgeted for exploration at Island Gold in 2023. For the past several years, the exploration
focus has been on adding high- grade Mineral Resources at depth in advance of the Phase 3+ Expansion study,
primarily through surface directional drilling. This exploration strategy has been successful in tripling the Mineral
Reserve and Resource base since 2017. With a 17- year mine life, and with work on the expansion ramping up,
the focus has shifted to an expanded underground exploration drilling program that will leverage existing
underground infrastructure. The underground exploration drilling program has been expanded from 27,500 meters
in 2022 to 45,000 meters in 2023 and is focused on defining new Mineral Reserves and Resources in proximity to
existing production horizons and infrastructure including along strike, and in the hanging-wall and footwall. These
potential high- grade Mineral Reserve and Resource additions would be low -cost to develop and could be
incorporated into the mine plan and mined within the next several years.
Seabee Update (3% NSR Royalty)
During SSR Mining Inc.’s (“SSR Mining”) first quarter conference call, it was mentioned that production during the
quarter reflected an issue with underground equipment availability that negatively impacted the mine sequencing
at Seabee. The issue was resolved, but grades processed were below expectations.
SSR Mining continues to advance near mine exploration at Seabee with a focus on prioritizing mineral resource
conversion activities to ensure mineral reserve growth and mine life extensions in the future. They continue to
evaluate early-stage exploration targets at depth below the existing Santoy mineralization as well as regional
targets like Porky and Porky West that could contribute meaningfully to Seabee's longer-term production platform.
Lamaque Update (1% and 2.5% NSR Royalty)
During Eldorado Gold Corporation’s (“Eldorado”) first quarter conference call, management indicated that second
quarter processing rates will increase slightly coupled with consistent grade and production for the second half of
the year is expected to be stronger than the first half. Additionally, Eldorado is anticipating the delivery of the first
electric haul truck in the second quarter and a second in the fourth quarter, which are expected to enhance haulage
capabilities and reduce diesel consumption per tonne, lowering GHG emissions.
Eldorado also highlighted that exploration results at Ormaque continue to demonstrate the potential to increase
resources. Partial results from resource conversion drilling will be incorporated in a resource update later in 2023
and a maiden reserve on Ormaque in 2024.
Renard Update (9.6% Diamond Stream)
On June 23rd, Stornoway made the decision to evacuate the Renard mine, located in central Québec, due to forest
fires located 50km to the northwest of the operation. Smoke from the fires as well as the closure of an important
access road necessitated the interruption in site activities. Mining operations resumed on July 1st and the diamond
recovery plant restarted on July 4 th following the reopening of the access road allowing for the resumption of
transportation of natural gas and diesel necessary for operations. As a result of the temporary evacuation, we
anticipate a moderate impact on deliveries from Renard in the third quarter of 2023; we also note a general
softening in the diamond market over the second quarter due to high polished inventory levels and a slower
economic rebound in China.
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Pan Mine (4.0% NSR Royalty)
On June 21 st, Calibre Mining Corp. (“Calibre”) announced assay results from the 2023 drill program at the Pan
Mine in Nevada. Results at the Palomino target, located immediately south of the current open pit, indicate higher
grades than the current average reserve grade of 0.4g/t gold. Currently a small amount of material at Palomino
exists in Inferred Resources. The potential now exists to materially increase resource ounces, grade and
confidence south of the Pan mine and the Palomino deposit remains open to the southeast and at shallow depths.
Some highlight intercepts include 3.84 g/t gold over 15.2 meters, 2.08 g/t gold over 27.4 meters and 2.02 g/t gold
over 27.4 meters. All drill targets are located near-surface in oxidized limestone. Given the proximity to the current
open pit, and the fact that Palomino is within the permitted area, Calibre has indicated they could start mining at
Palomino as early as 2024.
Windfall Joint Venture (2-3% NSR Royalty)
On June 5th, Osisko Mining Inc. (“Osisko Mining”) announced the suspension of all activities at the Windfall project
due to the wildfire situation in Northern Québec. Facilities were monitored in accordance with local directives.
On May 2nd, Osisko Mining and Gold Fields Ltd. (“Gold Fields”) announced a joint venture partnership (collectively
“the Partnership”) to develop and mine the Windfall Project in Québec, Canada. Gold Fields acquired a 50%
interest in the feasibility stage Windfall Project (including exploration potential) on the following key terms:
I. cash payment of C$300 million paid on signing;
II. cash payment of C$300 million payable on issuance of key permits and,
III. 50/50 co-share of interim and construction capital expenditures.
Gold Fields believes the Windfall Project is on track to become a high- quality, low-cost underground gold mine
with a relatively small surface footprint and considerable growth prospects along strike and down plunge, well
beyond delineated Mineral Reserves and the current 10 year projected mine life set out in Osisko Mining’s
December 2022 Windfall feasibility study. Drawing on more than 20 years of successful brownfields exploration
and reserve growth at its Western Australian operations, Gold Fields sees the potential for a similar path to emerge
at the Windfall, Urban Barry and Quévillon belts.
Property-wide regional and near -deposit exploration is already in progress, with six drills exploring targets
developed by Osisko over the past seven years, including the Golden Bear, Fox and Shellian prospects. An initial
exploration program developed by the Partnership includes $20 million dedicated to these and other targets.
Tintic Ramp Progress and Exploration Success (2.5% Metals Stream)
On May 17th, Osisko Development Corp. (“Osisko Development”) announced the remaining diamond drilling (“DD”)
and reverse circulation (“RC”) drill results from its 2022 exploration program, announced new 2023 underground
diamond drilling results and provided an overview of the ongoing 2023 exploration program at its 100% -owned
Trixie test mine (“Trixie”) within the greater Tintic Project (“Tintic”). Highlights included 23.49 g/t gold and 58.79 g/t
silver over 1.37 meters, 62.82 g/t gold and 231.46 g/t silver over 6.86 meters including 191 g/t gold and 707 g/t
silver over 1.07 meters. Currently there are two underground diamond drill rigs in operation at Trixie conducting
exploration activities.
Additionally, as of May 17 th, approximately 75% of the Trixie portal and underground decline ramp had been
completed and completion of the decline ramp to the main 625 level is anticipated by the third quarter of 2023,
which is expected to significantly improve underground access for exploration drilling.
During 2022, Osisko Development completed an extensive review and compilation of historical data on the Tintic
Project. As a result, a number of high- sulphidation epithermal gold-silver targets were identified at North Lily and
Eureka Standard. Additionally, copper-molybdenum-gold porphyry targets were identified at Big Hill – a lithocap
approximately 2 kilometers in strik e length and 1 kilometer wide indicative of an underlying porphyry system. A
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strong geophysical and geochemical target was also identified to the West and at depth below Trixie. An initial
program of surface drilling is planned to test Big Hill, commencing in the third quarter of 2023.
Cariboo Permitting Update (5.0% NSR Royalty)
On May 8th, Osisko Development announced the signing of two 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 to advance the approval process of the Cariboo Gold Project
(“Cariboo”). The target timelines established by the Process Charter, which are contingent on the issuance of the
Environmental Assessment Certificate anticipated in the third quarter of 2023, contemplate a final application
referral date that is aligned with the anticipated receipt of environmental permits in Q1 2024.
Taylor Update (1% NSR Royalty on Sulphide Ores)
On May 8 th, South32 Limited (“South32”) announced that the Taylor project had been confirmed by the United
States Federal Permitting Improvement Steering Council (FPISC), as the first mining project added to the FAST -
41 process, enabling a more efficient and transparent process for federal permitting. The Taylor project, located
in Southern Arizona, is currently the only advanced mine development project in the US that could produce two
federally designated critical minerals : zinc and manganese. To qualify for the FAST -41 process, complex critical
infrastructure projects must meet rigorous criteria to demonstrate benefit to the United States .
In a recent presentation, South32 indicated that the Taylor feasibility study and a final investment decision is on
track for the second half of 2023 incorporating the revised mine development schedule, which is being optimized
for the FAST-41 permitting process.
On April 23rd, along with quarterly results, South32 indicated that US$173 million had been invested at the project
in the nine months ended March 2023. Construction of the second water treatment plant progressed and remained
on track to be completed in the fourth quarter of 2023.
Casino (2.75% NSR Royalty)
On April 14 th, Western Copper and Gold Corporation (“Western Copper”) announced the closing of the $21.3
million strategic equity investment by Mitsubishi Materials Corporation representing approximately 5.0% interest
in Western Copper, to further advance the Casino Project. And subsequently, Western Copper also announced
the closing of the $2.3 million subscription by Rio Tinto Canada Inc. to maintain its pro-rata interest of
approximately 7.84%.
Corvette Property (2% NSR Royalty on Lithium covering the majority of drilled area)
On June 14th, Patriot Battery Metals Inc. (“Patriot”) announced further drill results from the 2023 winter drill program
at the Corvette Property (“Corvette”), located in the Eeyou Istchee James Bay region of Québec. Core assays, for
the drill holes reported cover the CV5 Pegmatite’s recently defined eastward extension, the high-grade Nova Zone
and the recently defined westward extension. Drill hole CV23- 148 targeted the Nova Zone and returned a wide
and high-grade intercept of 95.3 meters at 1.62% Li2O, including 47.6 meters at 2.09% Li2O.
The high-grade result affirms the interpretation that the Nova Zone extends continuously over a strike length of at
least 1.1 kilometers. Strong grades and widths were returned in drilling over the recently defined westwar d
extension, highlighted by drill hole CV23-160A, which returned 127.7 meters at 1.78% Li2O, including 50.1 meters
at 2.43% Li2O. Through the 2023 winter drill program, the CV5 Pegmatite has been traced continuously by drilling
(at approximately 50 to 150 m eters spacing) as a principally continuous spodumene- mineralized body over a
lateral distance of at least 3.7 kilometer and remains open along strike at both ends and to depth along most of its
length. Patriot expects to announce an initial mineral resource estimate at CV5 in the near term.
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On June 4th, Patriot provided an update on its work programs and the impact of the current forest fire situation in
Québec. Patriot temporarily ceased drilling and surface exploration field activities until the situation improves. Core
continues to be processed from holes completed at Corvette in May 2023.
Tocantinzinho Gold Project (0.75% NSR Royalty)
On June 13th, G Mining Ventures Corp. (“G Mining”) provided an update on site activities for its Tocantinzinho Gold
Project (“TZ”) in the State of Pará, Brazil . As at June 13th, the project was 30% complete and remain ed on track
and on budget for commercial production in the second half of 2024. To date, 1.74 million tonnes of waste material
had been excavated from the starter pit. Approximately 2.4 million tonnes of ore will be stockpiled during the pre-
production period prior to mill commissioning, providing roughly 6 months of mill feed. Powerline progress has
reached 41%.
On June 1st, G Mining announced it entered into a power purchase that grants Renewable Energy Certificates as
assurance of the supply of renewably generated power. This will enable G Mining to produce gold ounces with
Scope 1 emissions in the lowest quartile of the CO 2 emissions curve when compared to similar operations in the
Americas.
Marimaca Copper (1% NSR Royalty)
On June 20 th, Marimaca Copper Corp. (“Marimaca”) announced a $20 million equity investment by Mitsubishi
Corporation, representing a strong endorsement of the quality of the Marimaca Project. Proceeds from the
investment will be used to advance and accelerate development and progress towards the feasibility study, as
well as on project permitting initiatives.
On May 18 th, Marimaca announced an updated Mineral Resource Estimate (“MRE”) for the Marimaca Oxide
Deposit (the “MOD”). Measured and Indicated Resources for th e MOD are now 200 million tonnes at 0.45% total
copper (“CuT”) for 900 thousand tonnes of contained copper , in addition to Inferred Resources of 37.3 million
tonnes at 0.38% CuT for 141kt of contained copper . 86% of the MOD’s total resource tonnes are now contained
in the Measured and Indicated categories . The 2023 MRE incorporates 28,374 meters of new drilling data
completed since the 2022 MRE released in October 2022. The MOD’s unique characteristics were mai ntained in
the 2023 MRE, including a low strip ratio within a single constraining pit shell. Marimaca has completed 5 phases
of extensive metallurgical test work and a 6th phase of metallurgical testing is underway , which is expected to
define the optimized process design flowsheet ahead of the planned feasibility study, which is now expected to be
released in the first quarter of 2024.
Akasaba West (2.5% NSR Royalty)
On April 27 th, Agnico Eagle announced that work at the Akasaba West project commenced in September 2022
and remained on schedule for overburden removal in the first quarter of 2023, with over 670,000 tonnes of material
removed to date. Construction of surface infrastructure is also progressing on schedule, including offices, a garage
and water treatment facilities.
Altar Exploration Success (1.0% NSR Royalty)
On June 14th, Aldebaran Resources (“Aldebaran”) announced the completion of the previously announced top-up
financing with a subsidiary of South32. South32 elected to exercise its anti-dilution rights to maintain a 9.9% equity
interest in Aldebaran following the exercise of warrants announced on May 5th, 2023.
On June 7 th, Aldebaran reported results from its ongoing drill campaign at Altar. ALD-23-228 hit the favourable
host rock formation at approximately 750 meters depth and thereafter returned some of the highest-grade copper
mineralization encountered on the project to date, demonstrating continuity with previously intersected high-grade
mineralization. Highlights include 565.6 meters of 0.60% Copper Equivalent (“CuEq”) from 676 meters depth in
hole ALD-23-228, including 329.6 meters of 0.80 CuEq and 198.5 meters of 0.50% CuEq from 1,040 meters depth