PRELIMINARY Q3 2022 RESULTS
Osisko earned approximately 23,850 attributable gold equivalent ounces1 (“GEOs”) in the third quarter of 2022, record deliveries for the Corporation since inception in 2014. Osisko recorded preliminary revenues from royalties and streams of
During the third quarter, Osisko purchased for cancellation a total of 1.3 million common shares for
“Further, we are pleased to welcome Mr.
Osisko will provide full production and financial details with the release of its third quarter 2022 results after market close on
BOARD OF DIRECTORS APPOINTMENT
Osisko is pleased to announce the appointment of Mr.
Mr. Krcmarov holds a Bachelor of Science,
PORTFOLIO UPDATE
Canadian
On
A recent exploration highlight is hole MEX22-231, which returned 1.8 g/t gold over 62.9 meters at 1,580 meters depth in the western extension of the East Gouldie deposit approximately 225 meters west of the current mineral resources outline. This intercept is approximately halfway between the East Gouldie deposit and the
Figure 1:
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During a recent mining conference in
Mantos Blancos Update (100%
In August, Capstone Copper Corp. (“Capstone”) announced that it had committed to the Copper Mark at its Mantos Blancos mine in
Victoria Gold Updates (5% NSR Royalty)
On
On
On
Figure 2: Idealized Long-Section of
https://www.globenewswire.com/NewsRoom/AttachmentNg/4edda7ce-bad1-41a4-85b8-b585c57c3f75
Lamaque (1% NSR Royalty)
On
The Ormaque exploration drift project was completed on schedule in early July, providing underground platforms for further drilling of the deposit. Resource conversion drilling from the drift commenced in June and is expected to include approximately 28 kilometers of drilling to be completed during the remainder of 2022 and 2023, targeting the upper two-thirds of the Ormaque deposit. Partial results will be incorporated in the company’s 2023 Mineral Reserve and Mineral Resource update.
CSA Transaction Update
On
Osisko Development Corp. Updates
Osisko Development Corp. (“ODV”) started an Environmental Assessment Process in the spring of 2019 for the
Test mining continues at the Trixie mine in
ODV is targeting an initial resource on Trixie by the end of 2022. The surface decline is expected to be completed by Q2 2023. All permitting is in place and surface access roads and portal face excavation has been completed. The decline will allow mining of T4 material at higher tonnages and continued development of the lower levels of the Trixie mine.
While ODV expects final permits for full scale operation at
Windfall Resource Update (2-3% NSR Royalty)
On
AK Deposit (2% NSR Royalty)
On
The underground ramp at Macassa has been extended by 615 meters year-to-date (of a planned 984 meters exploration drift). Two drills have been active underground with 3,068 meters completed in 24 holes. This drilling was focused on infill drilling of the higher-grade portions of the deposit. Significant intersections returned to date include 14.1 g/t gold over 6.5 meters and 23.9 g/t gold over 2 meters. A surface drill program is also underway at AK, and two drill rigs completed 10,136 meters in the second quarter of 2022. Results to date have confirmed grade thicknesses in the core of the zone. Drill highlights include 9.0 g/t gold over 9.2 meters and 8.7 g/t gold over 7.6 meters. The surface drilling program is expected to total approximately 17,000 meters and was completed in
Figure 3:
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Figure 4: AK Deposit Longitudinal Section
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Upper Beaver (2% NSR Royalty)
On
With the resource conversion drilling completed, the focus of drilling at Upper Beaver has shifted outside of the mineral resources footprint to identify areas of potential future growth with two areas already delivering promising results. Approximately 500 meters east of the main Upper Beaver deposit, veining and alteration typical of the mineralization observed at Upper Beaver was intersected and assays returned 3.6 g/t gold and 1.1% copper over 1.2 meters. Follow-up drilling returned 11.3 g/t gold and 0.1% copper over 0.7 meter, and further drilling is underway to assess this new discovery.
New mineralization was also intersected 800 meters north-west of the main Upper Beaver deposit, including 11.5 g/t gold over 5.5 meters and 51.5 g/t gold over 5.2 meters. This mineralization is interpreted as the possible faulted and offset extension of the known North Basalt zone. Exploration drilling is ongoing to define the geometry of this new mineralization (Figure 5).
Figure 5: Upper Beaver Composite Longitudinal Section
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Casino (2.75% NSR Royalty)
Western Copper and Gold Corporation (“WRN”) has been active on multiple fronts on the Casino project. A portion of the existing access road is being upgraded with funding of
Wharekirauponga (WKP) (2% NSR Royalty)
OceanaGold Corporation (“Oceana”) is investing
Hermosa Budget Expanded (1% NSR Royalty)
In its 2022 Annual Report, South32 Limited (“South32”) highlighted that growth expenditure is expected to increase by
Patriot Battery Metals (2% NSR Royalty on Lithium)
On
ADDITIONAL HIGHLIGHTS
1) Calibre Mining reported results from their 50 kilometers drill program at the Pan mine including 3.35 g/t gold over 18 meters at the Black Stallion Target and 0.8 g/t gold over 47 meters at the Pegasus target (4% NSR royalty).
2) Group 6 Metals announced construction is advancing on schedule for first production in Q1 2023 at its Dolphin Tungsten project (1.5% GRR Royalty).
3) O3 Mining Inc. reported results of a PFS on the Marban project highlighting average annual production of 161koz of gold over a ~10 year mine life starting in 2026 (0.435% to 2% NSR royalty).
4) Osisko Metals released results of an updated PEA on
5) G Mining Ventures secured financing enabling construction to commence in Q3 2022 at its Tocantinzinho project and announced a formal construction decision (0.75% NSR Royalty).
6) Agnico Eagle announced they will start construction of the Akasaba West open pit mine this year, producing 115,000 ounces of gold and 21,000 tonnes of copper (2% NSR Royalty).
7) Talisker Resources intersected 41.93 g/t gold over 1.25 meters within the Bralorne East Block (1.7% NSR Royalty).
8) Shanta Gold intersected 47 g/t gold over 1.6 meters at Bushiangala and 65.2 g/t gold over 0.7 meter at Isulu (2% NSR Royalty).
9) Westhaven Gold intersected 1.84 g/t gold over 21.9 meters on the
10) Eagle Mountain Mining intersected 1.68% copper, 14.68 g/t silver and 0.37 g/t gold over 24.5 meters at Talon (3% NSR royalty).
11) Argonaut Gold reported 8.33 g/t gold over 11 meters and 7.4 g/t gold over 13 meters at depth on the
12) Aldebaran Resources announced a drill intersection of 0.33% Cu over 1,059.5 meters on the
13) NorthWest Copper announced a resource estimation including Indicated resources of 13 million tonnes of 0.55% Cu and Inferred resources of 45 million tonnes of 0.4% Cu at
14) Cornish Metals intersected 3.7% tin and 9.09% zinc over 2.42 meters at United Downs (0.5% NSR Royalty).
Q3 2022 RESULTS AND CONFERENCE CALL DETAILS
Osisko provides notice of the third quarter 2022 results and conference call details.
Q3 2022 Results Release: | |
Conference Call: | |
Dial-in Numbers: | North American Toll-Free: 1 (888) 886 7786 Local and International: 1 (416) 764 8658 Conference ID: 52047754 |
Replay (available until | North American Toll-Free: 1 (877) 674 7070 Local and International: 1 (416) 764 8692 Playback Passcode: 047754# |
Replay also available on our website at www.osiskogr.com |
Notes:
The figures presented in this press release, including revenues and costs of sales, have not been audited and are subject to change. As the Corporation has not yet finished its quarter-end procedures, the anticipated financial information presented in this press release is preliminary, subject to quarter-end adjustments, and may change materially.
(1) Gold Equivalent Ounces
GEOs are calculated on a quarterly basis and include royalties, streams and offtakes. Silver earned from royalty and stream agreements are converted to gold equivalent ounces by multiplying the silver ounces earned by the average silver price for the period and dividing by the average gold price for the period. Diamonds, other metals and cash royalties are converted into gold equivalent ounces by dividing the associated revenue earned by the average gold price for the period. Offtake agreements are converted using the financial settlement equivalent divided by the average gold price for the period.
Average Metal Prices and Exchange Rate
Three months ended | |||||||
2022 | 2021 | ||||||
Gold(i) | |||||||
Silver(ii) | |||||||
Exchange rate (US$/Can$)(iii) | 1.3056 | 1.2600 |
(i) The London Bullion Market Association’s pm price in
(ii) The London Bullion Market Association’s price in
(iii) Bank of
(2) Non-IFRS Measures
The Corporation has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS) including cash margin in dollars and in percentage. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. As Osisko’s operations are primarily focused on precious metals, the Corporation presents cash margins as it believes that certain investors use this information, together with measures determined in accordance with IFRS, to evaluate the Corporation’s performance in comparison to other companies in the precious metals mining industry who present results on a similar basis. However, other companies may calculate these non-IFRS measures differently.
Cash margin (in dollars) represents revenues less cost of sales (excluding depletion). Cash margin (in percentage) represents the cash margin (in dollars) divided by revenues.
Three months ended | ||||||||
Revenues | $ 53,661 | |||||||
Less: Cost of sales (excluding depletion) | ( | ) | ||||||
Cash margin (in dollars) | $ 49,254 | |||||||
Cash margin (in percentage of revenues) | 92 | % |
Qualified Person
The scientific and technical content of this news release has been reviewed and approved by
In this press release, Osisko relies on information publicly disclosed by other issuers and third parties pertaining to its assets and, therefore, assumes no liability for such third-party public disclosure.
About
Osisko is an intermediate precious metal royalty company focused on the
Osisko’s head office is located at 1100 Avenue des Canadiens-de-
For further information, please contact | |
Vice President, Investor Relations Tel: (514) 940-0670 #105 Email: htaylor@osiskogr.com |
Forward-looking Statements
Certain statements contained in this press 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 to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward‐looking statements. Forward‐looking statements are not guarantees of performance. These forward‐looking statements, may involve, but are not limited to, statements with respect to future events or future performance, the realization of the anticipated benefits deriving from Osisko’s investments, the general performance of the assets of Osisko, and the results of exploration, development and production activities as well as expansions projects relating to the properties in which Osisko holds a royalty, stream or other interest. Words such as “may”, “will”, “would”, “could”, “expect”, “suggest”, “appear”, “believe”, “plan”, “anticipate”, “intend”, “target”, “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, without limitation, management’s perceptions of historical trends; current conditions; expected future developments; the ongoing operation of the properties in which Osisko holds a royalty, stream or other interest by the operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; no adverse development in respect of any significant property in which Osisko holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. Osisko considers its assumptions to be reasonable based on information currently available, but cautions the reader that their assumptions regarding future events, many of which are beyond the control of Osisko, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect Osisko and its business. Such risks and uncertainties include, among others, that the financial information presented in this press release is preliminary and could be subject to adjustments, the successful continuation of operations underlying the Corporation’s assets, the performance of the assets of Osisko, the growth and the benefits deriving from its portfolio of investments, risks related to the operators of the properties in which Osisko holds a royalty, stream or other interest, including changes in the ownership and control of such operators; risks related to development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Osisko holds a royalty, stream or other interest, the influence of macroeconomic developments as well as the impact of and the responses of relevant governments to the COVID-19 outbreak and the effectiveness of such responses. In this press release, Osisko relies on information publicly disclosed by other issuers and third parties pertaining to its assets and, therefore, assumes no liability for such third party public disclosure.
For additional information with respect to these and other factors and assumptions underlying the forward‐looking statements made in this press release, see the section entitled “Risk Factors” in the most recent Annual Information Form of Osisko which is filed with the Canadian securities commissions and available electronically under Osisko’s issuer profile on SEDAR at www.sedar.com and with the
Figure 1: Canadian Malartic Mine – Composite Longitudinal Section
Figure 1: Canadian Malartic Mine – Composite Longitudinal Section
Figure 2: Idealized Long-Section of Raven Pit and MRE Bounds
Figure 2: Idealized Long-Section of Raven Pit and MRE Bounds
Figure 3: Macassa Mine and AK Deposit Composite Longitudinal Section
Figure 3: Macassa Mine and AK Deposit Composite Longitudinal Section
Figure 4: AK Deposit Longitudinal Section
Figure 4: AK Deposit Longitudinal Section
Figure 5: Upper Beaver Composite Longitudinal Section
Figure 5: Upper Beaver Composite Longitudinal Section
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