Osisko Gold makes discovery at Cariboo regional target

AI desk brief

Osisko Gold reported early drilling at its Proserpine target near the Cariboo project in British Columbia, with standout intercepts including 4.6m grading 95.93g/t Au from 110m and a high-grade 50cm interval at 873g/t Au. The company said the drilling outlines a new mineralized system that could support future open-pit mining alongside the planned underground operation, and the stock jumped 9% to C$3.73 in Toronto.

National Bank Financial’s Don DeMarco said the key takeaway is scale: mineralization has only been defined across a small portion of a larger target that remains open in all directions. Osisko said results to date have expanded the known footprint at Proserpine to about 1km along strike and 500m wide, with all 14 holes reaching target depth intersecting mineralization from near surface to roughly 400m downhole.

For the broader gold market, the read-through is incremental and longer dated rather than immediate: more ounces and potential mine flexibility at Cariboo support future project economics, but this is not a direct catalyst for spot prices. The Cariboo feasibility study still assumes US$2,400/oz gold and sees a 10-year underground operation producing about 1.89Moz, with after-tax NPV of C$943m and IRR of 22.1% at a 5% discount rate.