Osisko Announces Preliminary Q4 2021 Deliveries and Provides 2021 Recap and Portfolio Update
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OSISKO ANNOUNCES PRELIMINARY Q4 2021 DELIVERIES
AND PROVIDES 2021 RECAP AND PORTFOLIO UPDATE
Montréal, January 10, 2022 – Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE) is
pleased to provide an update on its fourth quarter 2021 deliveries, sales and cash margins , as well as a recap of
certain asset advancements over the course of 2021 that will continue to provide meaningful catalysts in 2022.
PRELIMINARY Q4 2021 RESULTS
Osisko earned approximately 19,830 attributable gold equivalent ounces1 (“GEOs”) in the fourth quarter of 2021,
for a total of approximately 80,000 GEOs in 2021, in line with its annual guidance of 78,000 – 82,000 GEOs. These
figures exclude 3,042 GEOs earned in the fourth quarter (and 9,210 GEOs earned in 2021) from the Renard
diamond stream.
Osisko recorded preliminary revenues of C$50.7 million during the fourth quarter and preliminary cost of sales
(excluding depletion) of C $3.7 million resulting in a cash margin 2 of approximately C $47.0 million, a quarterly
record from the royalty and stream interests . Osisko’s cash margin 2 was approximately 93% during the fourth
quarter of 2021 (97% excluding the Renard diamond stream).
Osisko will provide full production and financial details with the release of its fourth quarter and full year 2021
results after market close on Thursday, February 24th, 2022 followed by a conference call on Friday, February 25th
at 10am EST.
Sandeep Singh, President and CEO of Osisko commented: “I am extremely proud of what Osisko and our partners
accomplished in 2021. We are pleased to have achieved the midpoint of our annual GEO guidance, despite
ongoing supply chain disruptions, workforce turnover and safety issues, and other challenges currently facing the
mining sector.
We had substantial catalysts across a number of our most important assets last year and expect further significant
strengthening of our asset base in 2022, with our partners unlocking value through exploration success, mine life
extensions and expansions. We also saw many of our assets end up in larger , better capitalized companies and
expect this trend to continue given the quality of our portfolio.
We added quality growth assets while remaining disciplined in our capital allocation. We prioritized returns to
shareholders by increasing our dividend in the midst of a weakening gold market and took advantage of further
market volatility to buy back 2.1 million common shares of the Corporation for C$30.8 million. In summary, it was
a great year for Osisko and our asset base, and we look forward to continuing that momentum. ”
2021 ASSET ADVANCEMENTS AND UPCOMING CATALYSTS
Malartic Exploration Continues to Unlock Value
Since making the underground investment decision in February 2021, Yamana Gold Inc. (“Yamana”) and Agnico
Eagle Mines Limited (“Agnico”) have continued at an accelerated pace on the Malartic property. Up to 13 drill rigs
have been active, focused on confirming the extent , thickness and gr ade of the East Gouldie deposit as well as
several other deposits that will be accessed via ramps and the shaft. The East Gouldie zone was expanded by at
least 1.5 kilometers to the east and infill drilling continued to return excellent results in the core of the East Gouldie
deposit.
In October 2021, the Canadian Malartic exploration team was presented with the "Discovery of the Year" Award
at the Quebec Mineral Exploration Association annual c onvention, in recognition for the discovery of the East
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Gouldie deposit. The discovery has significantly changed the Odyssey projec t by improving its economic viability
and leading to a fast-track development process.
On November 2nd, 2021, Agnico Eagle reported positive exploration results for the Odyssey Underground Project.
Infill drilling returned wide, high- grade intersections in the core of the East Gouldie deposit, with results of 6.8 g/t
gold over 41.4 meters at 1,069 meters depth, including 10.2 g/t gold over 21.7 meters at 1,064 meters depth. The
eastern extension of the deposit was tested further, with the eastern most hole returning 6.3 g/t gold over 4. 8
meters at 1,989 met ers depth, 1.5 kilometers east of the current mineral resource, f urther demonstrating the
excellent potential to significantly grow the size of the East Gouldie deposit.
Malartic has the potential to deliver production beyond what was described in the 2020 Preliminary Economic
Assessment, as highlighted in Yamana’s statement from their December 1 st press release: “Exploration is
continuing to deliver exciting results at Odyssey and we believe that exploration successes will in time allow the
Partnership to take advantage of the excess plant capacity in order to maxi mize underground production above
currently planned levels. The possible addition of a second shaft and further production from upper ore bodies
accessed by ramp are additional opportunities that merit continuing investigation and assessment.”
Osisko holds a 5% net smelter return (“ NSR”) royalty on East Gouldie, Odyssey South , East Amphi and the
western half of East Malartic and a 3% NSR royalty on Odyssey North and the eastern half of East Malartic. For
more information, refer to Yamana’s press releases dated September 7th and December 1 st, 2021 and Agnico’s
press releases dated July 8th and November 2nd, 2021 filed on www.sedar.com.
Figure 1: Production shaft construction at Odyssey - Click here for more details
Figure 2: Infill Drilling at East Gouldie - Click here for more details
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Proposed Mantos Blancos Merger with Capstone
On November 30th, Capstone Mining Corp. (“Capstone”) announced a business combination with Mantos Copper
(Bermuda) Limited (“Mantos”) to create a new mid- tier copper producer with a diversified portfolio of high- quality,
long-life operations in the Americas, including the Mantos Blancos Cu-Ag mine in Chile. The transaction is subject
to certain conditions, including the approval of Capstone shareholders, and is expected to close in Q1 2022.
Mantos Blancos is c urrently transitioning to a 20,000 tonne per day sulphide opera tion via the Mantos Blancos
Concentrator Debottlenecking Project (“MB-CDP”). Construction has been completed and ramp- up is underway.
Annual deliveries of refined silver to Osisko over the next five years are expected to average approximately 1. 3
million ounces. Life of mine payable silver production is expected to total approximately 14.9 million ounces.
Mantos and Capstone also indicated that studies are underway for a further expansion at Mantos Blancos (Phase
II) that would further increase mill pr ocessing capacity to 27,000 tonnes per day. For more information, refer to
Capstone’s press release dated November 30th, 2021 filed on www.sedar.com.
Osisko holds a 100% silver stream on the Mantos Blancos mine with an ongoing transfer price equal to 8% of the
spot silver price.
Victoria Gold’s Ongoing Ramp Up at Eagle
Victoria Gold Corp. (“Victoria Gold”) announced that the Eagle Mine produced 164,222 ounces of gold in 2021.
Whilst this was below their initial guidance of 180,000 to 200,000 gold ounces, Osisko is encouraged by the ramp
up in the second half of the year which led to production of 105,324 ounces of gold. Supply chain delays in the
fourth quarter resulted in a delay in gold production. Critical parts (driplines) have since been received and replaced
and normal leaching has resumed. A considerable portion of gold production expected to be recovered in Q4 2021
will now be realized in Q1 2022.
Victoria Gold announced the initiation of the “Project 250”, aimed at increasing the average annual gold production
of the Eagle mine to 250,000 ounces gold by 2023. The two primary opportunities to increase production are the
scalping of fine ore from the crushing circuit and adjusting the seasonal stacking plan.
Victoria Gold has heightened the pace of exploration, with five drills active in the summer and fall of 2021 targeting
several areas to expand the resource base on the Dublin Gulch property. These include testing over the one
kilometer long Raven trend, along with the Lynx, Whiskey Wrinkles and Rex-Peso targets. For more information,
refer to Victoria’s press releases dated April 6th, September 12th and December 16th, 2021 filed on www.sedar.com.
Osisko holds a 5% NSR royalty on Victoria Gold’s Eagle project.
Osisko Development Corp.
On December 7 th, Osisko Development Corp. (“Osisko Development”) announced the completion of the drill
campaign on the Cariboo Gold Project for a total of 152,000 meters. Highlights of the drill campaign included 12.6
g/t gold over 10.15 meters on Shaft Zone, 26.58 g/t gold over 5.05 meters and 7.87 g/t gold over 10.25 meters at
Valley Zone. Further drilling results were also announced on August 11 th including 1,965 g/t gold over 0.5 meters
at Mosquito Creek. A feasibility study for the Cariboo Gold Project is expected in the first half of 2022. Small scale
production is ongoing at the Bonanza Ledge II project with processing at the QR mill.
On November 11th, Osisko Development announced drill results on the San Antonio project. A total of 27,000 drill
meters were completed on exploration and infill drilling on the Sapuchi, California and Golfo de Oro deposits.
These three deposits comprise 900 meters of a 3,000 meter long Iron Oxide Copper Gold mineralized trend that
ends at the past producing Luz del Cobre copper deposit. The highlights of the drilling campaign to date include
2.14 g/t over 21.65 meters and 1.03 g/t gold over 39.9 meters to expand the known mineralization. The historic
gold stockpile is being stacked onto a new heap leach pad with production commencing in early 2022 along with
an updated resource estimation for the three deposits being drilled. For more information, refer to Osisko
Development’s press releases dated August 11th and 25th, and December 7th 2021 filed on www.sedar.com.
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Osisko holds a 5% NSR royalty on Osisko Development’s Cariboo project and a 15% gold and silver stream on
the San Antonio project.
Windfall PEA, Drill Results, Golden Bear Discovery and Strategic Investment
In April 2021, Osisko Mining Inc. (“Osisko Mining”) released an updated preliminary economic assessment (“PEA”)
for the Windfall gold project which estimates an after -tax internal rate of return of 39% and after -tax net present
value of $1.5 billion, using a gold price of US$1,500 per ounce. The PEA highlights average gold production of
238,000 ounces per year for the 18 year mine life. The first seven years of full production will average 300,000
ounces per year at an average diluted grade of 8.1 g/t Au. An updated resource es timation is expected in 2022
followed by a feasibility study.
Osisko Mining released several batches of drill results from its 360,000 meter campaign illustrating the high grade
nature of the deposits at Windfall, including 3, 979 g/t over 2.3 meters, 2,181 g/t gold over 2.5 meters and 632 g/t
over 5.3 meters at Caribou and Lynx.
On September 14th, Osisko Mining reported that drilling had confirmed the Golden Bear discovery zone (“D1”) and
also identified two new mineralized zones (“D2” and “D3”). All three zones display alteration, sulfide mineralization
and local visible gold, and all three remain open up and down plunge and along strike. Drill hole OSK-UB-21-273
returned 67.10 g/t gold over 2.0 meters; this intercept occurred 60 meters up-plunge from the discovery intercept
previously reported (27.40 g/t gold over 6.7 meters). A drill campaign of 50,000 meters is planned at Golden Bear
in 2022.
On November 30th, Osisko Mining announced a financing with Northern Star Resources Limited (“Northern Star”)
of $154 million in convertible debentures. In addition, Osisko and Northern Star have agreed to negotiate the terms
of a potential joint-venture for up to a 50% interest in Osisko’s Windfall p roject. For more information, refer to
Osisko Mining’s press releases dated April 7th, August 3rd, September 14th, November 30 th, and December 21 st,
2021 filed on www.sedar.com.
Osisko owns a 2% to 3% NSR royalty on Osisko Mining’s Windfall project.
Upper Beaver and Kirkland Lake Camp Advancement
On September 28 th, Agnico Eagle and Kirkland Lake Gold Ltd. announced a merger transaction which could
facilitate significant operational and strategic synergies for Upper Beaver, Upper Canada, Amalgamated Kirkland
(“AK”) and Anoki-McBean with the Macassa Mine and Holt complex.
In December, 2021, Agnico Eagle submitted a detailed project description for the Upper Beaver mining project,
outlining a combined open pit and underground operation with a 16-year mine life and an approximate processing
capacity of up to 10,000 tonnes per day . Open pit mining is expected to last four to five years, followed by
underground mining with at least part of the production supported by a shaft. Drilling and engineering studies are
ongoing to establish the assumptions and final design to be released in 2022 . More details on the project
description can be found at https://iaac-aeic.gc.ca/050/documents/p82960/142393E.pdf
The AK deposit comprises indicated resources of 1.3Mt of 6.51 g/t gold and inferred resources of 2.4Mt of 5.3 g/t
gold and is located a few hundred meters from active underground workings at the Macassa Mine.
Further information is expected in 2022 on how these deposits can better leverage the existi ng Kirkland Lake
camp infrastructure.
Osisko holds a 2% NSR royalty on Agnico Eagle’s Kirkland Lake project, including Upper Beaver.
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Figure 3: Land Position in the Kirkland Lake Camp - Click here for more details
Imminent Production from Santana
On December 7th, Minera Alamos Inc. (“Minera Alamos”) provided an update on its Santana gold mine in Sonora,
Mexico. Through the end of November 2021, in excess of 7,300 ounces of gold had been placed on the leach pad.
Mining operations continue to progress with approximately 100,000 tonnes of new m ineralized material stacked
on the leach pad in each of October and November. Cumulative gold recovery from mineralization under leach for
more than 30 days is approaching 70% (additional recovery ongoing) . For more information, refer to Minera
Alamos’ press release dated December 7th, 2021 filed on www.sedar.com.
Osisko holds a 3% NSR royalty on Minera Alamos’ Santana project.
Imminent Production from Ermitaño
On November 24th, First Majestic Silver Corp (“First Majestic”) announced that they had started production of the
Ermitaño project in Sonora, Mexico. They also summarized the results of a Preliminary Feasibility Study that
outlined proven and probable reserves of 2.8Mt of 3.69 g/t gold and 54 g/t silver for 337koz gold and 4,880koz
silver. Drilling is ongoing to convert inferred resources of 5.1Mt of 2.7 g/t gold and 64 g/t silver for 440koz gold and
10,510koz silver. Production on the project has commenced via a twin ramp system with processing at the Santa
Elena mill facility. For more information, refer to First Majestic’s press release dated November 24th, 2021 filed on
www.sedar.com.
Osisko holds a 2% NSR royalty on First Majestic’s Ermitaño project.
Continued Growth Expected at Island Gold
On June 15th, Alamos Gold Inc. (“Alamos”) reported the best hole drilled to date at the Island Gold mine with 71.2
g/t gold (39.2 g/t cut) ov er 21.3 meters true width. This hole was outside of existing resources and extended
mineralization further onto Osisko’s 3% NSR royalty claims.
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On November 11 th, Alamos reported further exploration success, including the intersection of high-grade
mineralization 300 m eters beyond existing mineral resources in the deepest hole drilled to date at Island Gold.
These intersections fell within Osisko’s 3% NSR royalty claims. These results were in proximity to the planned
shaft and highlight the tremendous upside potential beyond what was outlined in the Phase III Expansion study.
Exploration success over the past year has continued driving another one million ounce increase in resources and
reserves at Island and the latest results are expected to add further resource growth. The orebody remains open
laterally and down plunge highlighting the ongoing upside to the Phase III Expansion. Phase III permitting is
anticipated to be completed in 2022 with the pre- sink for the shaft expected to begin in mid- 2022. For more
information, refer to Alamos’ press releases dated June 15 th, 2021, and November 11 th, 2021 filed on
www.sedar.com.
Osisko owns a 1.38% to 3% NSR royalty on Alamos’ Island Gold mine.
Potential for Mine Life Extension through Exploration Success at Seabee
On September 13th, SSR Mining Inc . (“SSR”) announced positive exploration results at Seabee. Drill highlights
included 19.16 g/t gold over 6.98 meters at Gap Hanging Wall, 16.31 g/t gold over 3.56 meters at Santoy Hanging
Wall, and 25.97 g/t gold over 1.49 meters at the Joker target. The company indicated that Seabee drill results
support the potential for mine life extension and/or an increase in production rates. Mineral reserves for the Gap
Hanging Wall zone and mineral resources for the Santoy Hanging Wall zone are both expected in 2022. SSR is
investigating increasing mining rates to exploit latent mill capacity at Seabee. For more information, refer to SSR’s
press releases dated September 13th, 2021 filed on www.sedar.com.
Osisko owns a 3% NSR royalty on SSR’s Seabee Mine.
Eldorado Completes Ramp and Expands Multiple Deposits in Québec
On February 22nd, Eldorado Gold Corporation (“Eldorado”) reported a maiden resource on the Ormaque deposit
including inferred mineral resources total 2.6Mt of 9.53 g/t for 803,000 gold ounces. The 3,200 meter long Triangle-
Sigma decline was completed in December . This decline will provide underground access for drilling of the
Ormaque, Plug 4, and Parallel deposits, as well as facilitating increased future production from the Triangle mine,
contingent on continued reserve expansion.
On April 7th, Eldorado acquired QMX Gold, expanding its property position in the Val d’Or camp. Significant drill
results were released, including 60.2 meters of 6.0 g/t gold from the Bonnefond deposit located 20 kilometers from
the Sigma mill. Drilling on the River target, located 5.5 kilometers from the Sigma mill, included 19.6 meters of 9.8
g/t gold. For more information, refer to Eldorado’s press releases dated February 22nd and September 27th, 2021
filed on www.sedar.com.
Osisko holds a 1% NSR royalty over the Triangle, Plug 4, Parallel and Ormaque deposits, and a 2.5% NSR royalty
over the Bonnefond and River deposits.
Gold Resource Corporation’s Acquisition of Back Forty
On December 10th, Gold Resource Corporation (“GORO”) acquired Aquila Resources Inc. (“Aquila”). GORO
currently operates the Don David polymetallic underground mine in Mexico which has significant similarities to the
Back Forty project . GORO stated that it intends to become a multi -mine producer through the permitting and
construction of the Back Forty project. A revised feasibility study is expected in 2022 which will provide the basis
for a revised permitting and construction strategy. GORO has a strong balance sheet, stable cash flows, and
significant access to capital to commit towards that objective. For mor e information, refer to GORO’s press
releases dated September 7th and December 10th 2021 filed on www.sec.gov/edgar.shtml.
Osisko holds an 18.5% gold stream and an 85% silver stream on the Back Forty project located in Michigan, USA.
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G Mining Ventures Advancing Tocantinzinho
On August 9 th, G Mining Ventures Corp. (“G Mining”) acquired the Tocantinzinho gold project, located in Para
State, Brazil, from Eldorado. G Mining initiated a 10,000 meter drill campaign to de-risk early mining and explore
at depth below the existing pit limits. They also provided a project timeline that includes a construction decision in
the first half of 2022. In the 2019 feasibility study, Eldorado showed 187,000 gold ounces produced for the first 8
years of the mine life. For more information, refer to G Mining’s press releases dated August 9th and November 8th
2021 filed on www.sedar.com.
Osisko holds a 1.75% NSR royalty that is subject to a buy down to 0.75% NSR royalty on the Tocantinzinho
project.
Calibre Acquires Fiore
On October 25th, Calibre Mining Corp. (“Calibre”) entered into a definitive arrangement agreement to acquire Fiore
Gold Corp. (“Fiore”). Calibre is a significantly larger producer and has robust cash flows which should help support
mine life expansions at Pan and the development of the Gold Rock project.
In March 2021, Fiore Gold Ltd. (“Fiore Gold”) announced results from its resource expansion and exploration
drilling program at its Gold Rock project in Nevada. The holes to the north of the North Pit shell included some of
the highest-grade intercepts seen to date at Gold Rock, including 45.7 meters of 2.01 g/t gold. Fiore Gold plans to
complete additional drilling in this area. For more information, refer to Fiore Gold’s press releases dated March
30th and October 21st, 2021 filed on www.sedar.com.
Osisko has a 4% NSR royalty over the Pan Property and the northern part of the proposed pit at Gold Rock.
Rio Tinto Investment in Western Copper
On May 31st, Western Copper and Gold Corporation (“Western Copper”) announced the completion of a C$25.6
million strategic investment by Rio Tinto Canada Inc. (“Rio Tinto”), to advance the Casino Project in the Yukon.
The company also released results of an updated preliminary economic assessment that showed average annual
production of 178 million pounds of copper and 231koz of gold over the 25 year life of mine. Western Copper
initiated an updated Feasibility Study expected to be completed by the second quarter of 2022. For more
information, refer to Western Copper’s press releases dated May 31 st, June 22 nd, October 6 th, 2021 filed on
www.sedar.com.
Osisko owns a 2.75% NSR royalty on the Casino project.
Falco Updates Horne 5 Feasibility
On March 24th, Falco Resources Ltd. (“Falco”) reported the results of its updated feasibility study for the Horne 5
gold project. At a gold price of US$1,600 per ounce, the updated feasibility study outlined an after-tax net present
value of US$761 million, at a 5% discount rate, and an after-tax internal rate of return of 18.9%. Average annual
payable silver production over the 15 year mine life is estimated at 1.8 million ounces.
On June 28 th, Falco announced that it had entered into an agreement in principal with Glencore Canada
Corporation (“Glencore”) establishing the framework and conditions pursuant to which the parties would enter into
an Operating License and Indemnity Agreement (the “OLIA”), whereby Glencore would grant Falco the necessary
rights to develop and operate the Horne 5 project. This is a significant step towards the final negotiations of an
operating license, financing and construction decision for the Horne 5 project. Falco and Glencore are working
toward completing the OLIA. For more information, refer to Falco’s press release dated March 24 th, and June
28th2021 and filed on www.sedar.com.
Osisko owns a 90% silver stream on Falco’s Horne 5 project with an option to increase the stream percentage to
100%.
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King Island Scheelite Construction Decision
On September 5th, King Island Scheelite Limited (“KIS”) announced loan funding amounting to AUD $33 million to
be used for t he redevelopment of the fully -permitted Dolphin Tungsten Project on King Island, Tasmania. The
project has a JORC compliant mineral r eserve of 4.43 Mt at a grade of 0.92% WO 3, with a current development
plan that envisages an 8- year open pit mine followed by a 6- year underground mine. On November 24 th, KIS
announced a construction contract with Gekko Systems Pty Ltd for the design, procurement, construction and
commissioning of the processing plant and related facilities for the redevelopment of the Dolphin Mine. The
contract anticipates commissioning of the facilities in the first quarter of 2023. For more information, refer to KIS’
press release dated September 5th and November 24 th, 2021 filed on their website at
www.kingislandscheelite.com.au
Osisko owns a 1% gross revenue royalty on the Dolphin Tungsten Project.
Renard Stream Update
The Renard diamond mine, operated by Stornoway Diamonds Canada Inc. (“Stornoway”), restarted operations in
September 2020 following an extended care and maintenance period. Stornoway’s focus has been on cost
reduction while the diamond market recovers. In the fourth quarter of 2021, Stornoway conducted two diamond
sales. In the first sale the company sold 248,710 carats at an average price per carat of US$104.29 and in the
second sale the company sold 242,343 carats at a pr ice of US$128.49 per carat, this represents a 54% increase
in sale price compared to the same period last year. Over 2021, the company sold 1,843,371 carats at an average
realized price of US$93.65 per carat.
Osisko has a 9.6% diamond stream on the Renard mine but has agreed to defer payments from the stream until
April 2022. Payments can be made prior to this date, if the financial situation of Stornoway permits. Osisko also
holds a 35.1% equity interest in Stornoway.
Amulsar Progress
On December 21, 2021, an investigative body in Armenia terminated its investigation into the former Ministry of
Nature Protection and its issuance of permits for the Amulsar gold project. This marks another positive step forward
for the project, which has benefitted from unfettered access to the site since September 2020. Osisko is working
closely with its partners, and the Government of the Republic of Armenia, to prepare the conditions for a successful
restart of construction. Amulsar is expected to be a large-scale, low-cost operation with production targeted to
average approximately 204,000 ounces of gold over an initial 12-year mine life.
Osisko holds approximately 36% indirect equity interest in the project, an 81.91% gold offtake, a 4.22% gold
stream and a 62.5% silver stream on the project. The gold and silver streams are subject to ongoing transfer
payments equal to US$400/oz and US$4.00/oz for gold and silver respectively.
NEW INVESTMENTS
Osisko purchased several exciting royalty packages in 2021, which are expected to generate significant returns.
1. 0.75% NSR on G Mining Ventures’ Tocantinzinho deposit in Brazil.
2. Four separate royalties in Nevada and Idaho, most notably a 2.5% NSR on Waterton's Spring Valley
gold deposit.
3. Three separate royalties in Africa, most notably a 2% NSR on Shanta Gold's West Kenya Gold project.
4. 11.5% NSR on silver produced from Highland Copper's Copperwood and White Pine Cu- Ag Projects.
5. Three separate royalties in British Colombia, most notably a 1.5% NSR on Talisker's Ladner gold
project.
6. 0.8% NSR on the Red River Resource's Liontown Zn-Pb-Cu-Au-Ag project in Australia.