Analysts attack Osisko’s Cariboo gold project feasibility 

The first phase of Osisko Development’s (TSXV: ODV; NYSE: ODV) Cariboo gold project in central British Columbia makes little economic sense, say […]
Osisko Development has released a feasibility study for its Cariboo gold project in British Columbia. Credit: Osisko Development

Topics

Commodities

Regions

Tags

Companies

The first phase of Osisko Development’s (TSXV: ODV; NYSE: ODV) Cariboo gold project in central British Columbia makes little economic sense, say analysts about a new feasibility study.

The project’s underground mine would produce 1.87 million oz. over a 12-year life after construction costs of $137.3 million, the Montreal-based company proposes in the study released on Tuesday.

A three-year first phase would process 1,500 tonnes a day from the Lowhee, Shaft and Mosquito deposits for average annual production of 72,500 ounces. The plant would increase capacity to 4,900 tonnes a day in the fourth year to produce 193,798 oz. per year, the study shows.

However, total cash costs for the first phase are US$1,149 per oz., according to the study and it uses a base case gold market price of US$1,700 per ounce. That amounts to earnings of US$113.2 million, only about a third of the projected phase two capital cost.

“They’ll need to raise another $300M before the larger, second stage is built,” industry blogger Mark Turner wrote on his IKN site late Tuesday. “There’s no point in getting involved before 2027,” he advised investors.

Comments

Your email address will not be published. Required fields are marked *

Mar 27 2024 - Mar 28 2024
Apr 08 2024 - Apr 09 2024
Apr 15 2024 - Apr 16 2024
Apr 16 2024 - Apr 16 2024