Osisko Gold Confirms Presence of Mineralized System with Open Pit Potential at the Proserpine Target on the Cariboo Gold Project's Regional Property; Exploration Drilling Highlights Include 95.93 g/t Au over 4.60 m at 71 m Vertical Depth and 5.46 g/t Au o
Osisko Development reports a high-grade intercept at the Proserpine discovery, marking a significant regional data point for the project.
Osisko Gold Group Inc. reported the first 14 diamond drill holes, totaling 6,463 meters, from its surface exploration program at the Proserpine regional target. The target is located 7 km southeast of the flagship Cariboo Gold deposit in British Columbia.
The headline intercept came from hole PSP-26-004, which returned 95.93 g/t Au over 4.60 meters at a vertical depth of 71 meters. This interval includes a very high-grade sub-interval of 873.00 g/t Au over 0.50 meters.
Other notable intercepts include shallow oxide gold from PSP-26-001, which returned 5.46 g/t Au over 8.60 m from 77 m depth, and a deeper hit from the same hole returning 2.17 g/t Au over 14.45 m from 431 m depth.
The company states the results confirm an emerging mineralized system with similarities to the nearby Cariboo deposit and potential for both high-grade underground and bulk-tonnage open-pit mining.
Osisko Development Corp. (ODV) announced a positive greenfields discovery at a regional target located 7 km from its permitted, feasibility-stage Cariboo Gold deposit. The company, which carries a $1 billion market capitalization, relies on securing approximately US$350 million in financing to construct its flagship mine. The recent drill result represents the first assay data from this specific target.
Market reaction to the news was muted, as the stock had already rallied prior to the announcement. Shares rose from $2.58 to $3.28 in the days preceding the Proserpine news release, and climbed further to $3.45 following a deep exploration update at the main Cariboo deposit. This price movement indicates that the market had already re-rated the stock based on exploration success at the primary target, suggesting the regional hole serves as confirmatory data rather than a driver of valuation.
The discovery does not address the company’s immediate financial constraints. Osisko Development Corp. has issued a "going concern" warning, noting that its cash hoard of approximately $594 million is insufficient to fund operations through March 2027 without the conditional second tranche of the Appian loan. Consequently, the single high-grade intercept does not alleviate the primary financial risk facing the developer.
Osisko Development Corp. (ODV) is advancing its 100%-owned Cariboo Gold Project in British Columbia, which is currently in the feasibility stage. The project contains 2.07 moz of gold in probable reserves, comprising 17.8 Mt at a grade of 3.62 g/t. The company also holds the small-scale, producing Tintic Project in Utah, which generates minimal revenue.