Osisko Gold Provides Construction Progress Update on the Cariboo Gold Project
Osisko Development Corp. (ODV) has provided a construction update on its 100%-owned Cariboo Gold Project in British Columbia, confirming that the project remains on schedule for a first gold pour in the first quarter of 2029 and commercial production in the second half of 2029. As of September 30, 2026, overall project completion is estimated at approximately 28%, based on cumulative costs incurred to date. The company reported $355 million in cumulative costs, including indirects and owners' costs, with an additional $84 million spent between August 1 and September 30, 2026. The estimated remaining cost to complete construction is approximately $907 million, net of costs incurred, leases, and estimated pre-production revenue.
Significant progress has been recorded in earthworks, portal excavation, and procurement. Detailed engineering is now 42% complete, and over 50% of procurement packages have been awarded, representing approximately $360 million in commitments project-to-date. Recent key awards include the water treatment plant concrete program, Phase 2 underground mobile equipment, a propane generator fuel package, and bus transportation for workers.
Construction highlights include the Valley Portal, where earthworks are 85% complete, up from 1%, with the portal expected to be collared in the fourth quarter of 2026. At the Bonanza Ledge (BL) site, water pipelines are 40% complete, sediment control pond civil works are 100% complete, and the waste rock storage facility (Phase 1a) is 95% complete. The water treatment plant expansion is 100% complete, with final commissioning ongoing. Site-wide earthworks have reached 15% completion, up from 5%. Underground development is approximately 11% complete, up from 8%, with roughly 3.4 km of development completed to date.
The Mine Site Complex (MSC) has seen the commencement of water treatment plant pad earthworks, and the process plant area support site is active. Infrastructure progress includes the commencement of Willow River bridge installation, which is expected to be operational in the fourth quarter of 2026, and the completion of the permanent camp upgrade.
Underground development rates have been adjusted due to operational conditions. The current target is approximately 360 metres per month by the end of 2026, a revision down from the previous target of 500 metres per month. This adjustment reflects competent rock conditions, rockbreaking methods implemented for noise mitigation, and concrete curing in sub-zero temperatures. Valley access and ventilation portals are expected to be completed in the fourth quarter of 2026, providing additional headings using a roadheader to improve advance rates in 2027.
The equipment fleet for the project is valued at approximately $43 million for underground mobile equipment, including Caterpillar loaders and haul trucks, MacLean Engineering support vehicles, and Epiroc drill rigs and jumbos. Initial deliveries are expected in late 2026, with the majority arriving during 2027. Long lead items for the transmission line are on track to arrive at the site in the third quarter of 2027.
Safety performance for the year-to-date period in 2026 shows a Total Recordable Injury Frequency Rate (TRIFR) of 1.05, based on approximately 1.02 million total person-hours worked. The on-site workforce exceeds 400 active personnel and is ramping up. Permitting milestones include the acquisition of major permits under the Mines Act and Environmental Management Act in the fourth quarter of 2024, with a licence of occupation for the transmission line expected in the fourth quarter of 2026.
Exploration activities continue with 16 drill rigs active, seven for infill and near-mine expansion and nine for regional targets. Osisko Development expects to complete approximately half of the planned 160,000 metres of drilling at the Project by the end of 2026. Infill drilling to support resource conversion is expected to commence in the fourth quarter of 2026. Approximately 25,000 metres of aggregate drilling results have been released to date, with remaining results pending.
The company has entered into a project and construction management services agreement with JDS Energy & Mining Inc. and awarded JDS the continuing underground mine development and related works contract in October 2026.
Sean Roosen, Chairman and CEO, stated: "We are pleased with the progress at the Cariboo Gold Project and continue to build construction momentum following our final investment decision announced in September. By making significant investments in critical path infrastructure, detailed engineering and procurement during the pre-construction phase, we've established a solid foundation for efficient execution as construction advances."