Osisko Development has secured British Columbia (BC) Mines Act permits for its 100% owned Cariboo gold project in central British Columbia, Canada.
The latest approval allows the North American gold development company to proceed with the construction and operation of the underground Cariboo gold mine. The Mines Act permits include approvals for the mine site complex and Bonanza Ledge (M-247), as well as for the QR mill (M-198).
Osisko Development also said that the remaining Environmental Management Act permits have been referred for review by the Ministry of Energy and Climate Solutions. A decision on these permits is expected shortly.
The company stated that it is also engaged in ongoing discussions regarding various funding options, including a comprehensive financing package to support the Canadian gold project’s development.
In addition to securing permits, Osisko Development continues to make progress on its bulk sample and underground development work in the Lowhee Zone, anticipated to be completed in Q1 2025.
The optimised feasibility study (OFS) for the Cariboo gold project is slated to be completed by Q2 2025, with further pre-construction activities, such as detailed engineering and project execution work, also advancing.
Osisko Development aims to achieve a formal positive final investment decision and engage in a project financing package for the gold project in the coming months.
Full-scale construction of the Cariboo gold project is slated to begin in the second half of 2025 and is expected to be completed by the end of 2027.
Osisko Development founder, chairman, and CEO Sean Roosen said: “Receipt of the construction and operating permits for the Cariboo Gold Project is a major milestone and monumental achievement for Osisko Development and its stakeholders.”
Based on the 2023 Cariboo feasibility study (FS), the Cariboo gold project is expected to operate for an initial 12-year mine life.
The project is also expected to have a peak gold production potential of up to 223,000 ounces per year, with an average of 194,000 ounces per year during phase 2 at a 4,900-tonne per day throughput.
The Canadian gold project is also expected to create employment, with about 634 workers during construction and up to 488 employees during peak operations.
In addition, the Cariboo gold project’s activities are anticipated to stimulate economic development in the local and broader Cariboo region.
Total capital costs for the project are estimated at C$588.4m ($421.6m) for initial and expansion investments, with C$466.6m ($334.3m) for sustaining capital.
British Columbia Minister of Mining and Critical Minerals Jagrup Brar said: “The first project wholly assessed under the new 2018 Environmental Assessment Act, Cariboo Gold is crucial for BC, creating good jobs and opening up long-term opportunities for local businesses, communities, and First Nations, all while adhering to top-tier environmental protection.”
The company commenced underground work at the Cow Portal in Q1 2024, under an existing provincial permit, with plans to extract a 10,000-tonne bulk sample from the Lowhee Zone for testing purposes.
Results from the bulk sample programme are expected to be released in Q1 2025.
