Production / Operations
Osisko Development Announces Resumption of Planned Site Activities at the Cariboo Gold Project
Osisko Development resumes Cariboo work after safety setback, signaling a staged recovery toward feasibility milestones
Executive Summary
- The most recent release (2026-03-02) reports Osisko Development has resumed planned activities at the Cariboo Gold Project in British Columbia after a temporary suspension due to a fatal contractor incident in January. The reopening is phased with a gradual ramp to normal operating levels; on-site staffing exceeds 250 and supports pre-construction, early works, and ongoing drilling.
- Key operational updates:
- Bonanza Ledge water treatment plant is near full commissioning and expected to be fully operational soon.
- Underground development progress in the Lowhee Zone has advanced about 2.1 km from the Cow Portal into the Lowhee Zone and toward the Cow Mountain Zone; however, ground conditions near the Lowhee fault remain challenging and require enhanced ground support.
- Infill drilling has resumed; about 1.6 km remains in the final drill fan of the ongoing 13-km underground program at the 1260 level; additional infill and exploration drilling continues on the 1290 level; three drill rigs are operating underground and six on two exploration programs targeting depths to ~1,000 m below current resource envelopes.
- Approximately 5,000 meters of drilling have been completed to date with assays pending.
- A second surface exploration program adjacent to the Proserpine regional target has started with three drill rigs; roughly 500 m completed.
- Construction of waste rock storage, sediment control pond, early mine-site works, and site camp expansion to 266 rooms continue; the expanded camp is aligned with peak construction manpower.
- Context: The March release follows a string of prior activity, including:
- February 11, 2026: Positive infill-drilling results from the 13,000 m Lowhee program (e.g., high-grade intercepts, albeit from underground hole BMU-25-132 etc.), signaling continued progress on converting resources and refining the model in Lowhee.
- February 9, 2026: A definitive project and construction management services agreement with JDS Energy & Mining Inc. for Cariboo development (non-material - Positive), indicating further execution capacity and structured delivery.
- January 27 and January 26, 2026: Sale of San Antonio project (Routine - Neutral) and a TSX-V trading halt (Administrative) as corporate news ecosystem, followed by a January 23, 2026 incident reporting a contractor fatality (Material - Negative) that triggered the suspension.
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Late January to early February 2026: Financing activity and equity issuance discussions (Material - Positive in aggregate earlier in 2025–2026), including a major US$450 million Appian loan announced July 21, 2025, and multiple bought-deal financings and private placements to fund Cariboo pre-construction and development.
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Overall, the March 2 update is a positive operational progression after a safety-related disruption, aligning with expectations that the project would resume and progress would pick up as ground conditions are stabilized and critical infrastructure moves toward completion. It does not introduce new reserves or ore-grade discoveries, but it confirms stabilization and ongoing advancement toward pre-construction milestones.
Material Impact
- Materiality assessment: Routine - Positive
- Rationale: The news confirms a resumption of site activities and provides visibility on ramp-up metrics, safety-driven ground support improvements, and ongoing underground/infill/exploration drilling. It mitigates the immediate risk of continued delays and signals that critical Cariboo infrastructure (Bonanza Ledge water treatment plant, camp expansion) is moving toward full operation. While not a game-changing discovery or new resource, the update reduces near-term execution risk and maintains momentum toward feasibility/development milestones.
- Alignment with prior expectations: The company had indicated a path to completeness of construction and infill drilling, with ongoing exploration and ramp-up plans; the March update is in line with that trajectory, confirming resumed activity and expected rate improvements beyond the Lowhee fault as ramp advances.
- Improvements vs. misses: There are positive signals (normalized site operations, continued drilling, completion of camp capacity, and commissioning progress) but the statement also reinforces that development progress was previously below plan due to ground conditions; the improvement will be watched in upcoming drill results and ramp-induced throughput or production sequencing updates.
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Company Overview
- Osisko Development is a growth-focusedgold developer with a 100%-owned flagship Cariboo Gold Project in British Columbia. Cariboo is in feasibility/development stage, with a permitted expansion path and ongoing pre-construction activities. The project’s core value drivers include resource-to-reserve conversion through infill drilling, conversion of resources in the Lowhee Zone, and potential throughput/throughput-expansion considerations. The Tintic and San Antonio assets are part of the portfolio, with San Antonio recently divested in 2025 as a non-core asset, and Tintic representing ongoing exploration interests in Utah.
- Flagship: Cariboo Gold Project (British Columbia, Canada) – Feasibility stage, fully permitted, with substantial underground development and infill drilling programs, plus planned infrastructure expansions and a large Appian financing facility supporting pre-construction and construction activities.
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Jul 08, 2026 · 17:15