Osisko Gold Royalties Ltd (the “
Company” or
“
Osisko”) (OR: TSX & NYSE) is pleased to
provide some select asset updates.
Jason Attew, President & CEO of Osisko
commented: “Over the past few months, Osisko’s asset base provided
for some positive developments that have surfaced incremental value
for the Company, with more portfolio catalysts expected between now
and end-of-year 2024. In the meantime, much of Osisko’s
short-to-medium-term growth continues to be underpinned by several
advanced projects including three shafts currently under
construction at Odyssey Underground, the Island Gold District, and
Hermosa/Taylor, along with two open pits at, or nearing, the final
stages of development at Tocantinzinho and Namdini,
respectively.”
Note: all amounts included in this update are
expressed in Canadian dollars, unless otherwise noted.
SELECT ASSET UPDATES
Upper Beaver Project (operated by Agnico Eagle
Mines Ltd.)
On July 31st, 2024, Agnico Eagle Mines Ltd.
(“Agnico Eagle”) provided an update on its Upper
Beaver project located approximately 25 kilometres to the east of
the town of Kirkland Lake in Ontario, Canada. A positive internal
evaluation was completed for a standalone mine and mill scenario at
Upper Beaver. Based on this evaluation, Agnico Eagle believes Upper
Beaver has the potential to produce an annual average of
approximately 210,000 ounces of gold and 3,600 tonnes of copper,
with initial production possible as early as 2030. Over an expected
13-year mine life, total payable gold and copper production is
expected to be approximately 2.8 million ounces and 46,300 tonnes,
respectively. The mining strategy developed for the Upper Beaver
project is to mine the deposit mainly by conventional underground
methods, although a small portion (approximately 10% of the mineral
resource) will be mined via an open pit. The underground and open
pit mines are expected to be developed within the same time frame.
Current scenarios contemplate underground access through a main
decline ramp as well as a shaft that is 1,220 metres
(“m”) deep. In addition, the project has the
potential to unlock significant exploration potential at depth and
within satellite deposits in Agnico Eagle’s Kirkland Lake camp,
including the Upper Canada and Anoki-McBean projects.
Agnico Eagle has approved a US$200 million
investment over three years to further de-risk the project, with
work having already commenced in 2024. Excavation of the ramp and
shaft-sinking are expected to start in H2 2025.
Osisko’s owns a 2% net smelter return
(“NSR”) royalty on the Upper Beaver project, as
well as a 2% NSR royalty that covers most of Agnico’s Kirkland Lake
regional properties, including Amalgamated Kirkland, Munro,
Anoki-McBean, Bidgood, and Upper Canada.
Shaakichiuwaanaan Project (operated by Patriot
Battery Metals Inc.)
On August 21st, 2024, Patriot Battery Metals
Inc. (“Patriot”) announced the results from a
Preliminary Economic Assessment (“PEA”) for its
flagship Shaakichiuwaanaan hard-rock lithium project (formerly
known as Corvette), located in the Eeyou Istchee James Bay region
of Québec, Canada. The PEA was based on the CV5 Pegmatite component
of the recently announced updated Shaakichiuwaanaan Mineral
Resource Estimate (“MRE”), which is the largest
known lithium pegmatite Mineral Resource in the Americas and the
8th largest globally. Based on the PEA, the Shaakichiuwaanaan
project has the potential to become one of the largest spodumene
producers in the world and the largest spodumene producer in the
Americas.
The PEA incorporates a staged development
strategy, with Stage 1 targeting production capacity of
~400 kilotonnes per annum (“ktpa”) of
spodumene concentrate and Stage 2 aimed at expanding the production
capacity to ~800 ktpa (with construction expected to start in
Year 2 and full production expected from Year 4 onwards). The
Shaakichiuwaanaan project’s mine life is projected at 24 years,
based on a total extracted Mineral Resource of 66% of total
resources defined at CV5. Based on the results of the PEA, Patriot
will now consider advancing the project to the Feasibility Study
level, which if progressed is expected to be completed in Q3
2025.
Osisko holds a sliding scale NSR royalty of
1.5-3.5% on precious metals, and 2.0% on all other products,
including Lithium, at Shaakichiuwaanaan. Osisko estimates that a
large majority (~85-95%) of the CV5 MRE falls on its 2.0% Lithium
NSR royalty area. The PEA includes only the CV5 Spodumene
Pegmatite, and therefore does not include any of the other known
spodumene pegmatite clusters on the property – CV4, CV8, CV9, CV10,
CV12, and CV13; some of which are covered by Osisko’s royalty.
Windfall Project (operated by the Windfall
Mining Group)
On August 12th, 2024, Osisko Mining Inc.
(“Osisko Mining”) announced that it had entered
into a definitive arrangement agreement (the “Arrangement
Agreement”) with Gold Fields Limited (“Gold
Fields”) pursuant to which Gold Fields would consolidate
ownership of 100% of the Windfall project through the acquisition
of all the issued and outstanding common shares of Osisko Mining at
a price of $4.90 per share in an all-cash transaction valued at
approximately $2.16 billion. Osisko Mining holds a 50%
interest in the high-grade Windfall gold deposit located in Québec
and holds a 50% interest in a large area of claims in the
surrounding Urban Barry area and nearby Quévillon area (over 2,300
square kilometres), with the other 50% of Windfall and the large
area of claims already owned by Gold Fields. Subject to the
satisfaction of all conditions to closing set out in the
Arrangement Agreement, it is anticipated that the transaction will
be completed in Q4 2024. Gold Fields’ Chief Executive Officer, Mike
Fraser, stated:
“We are pleased to consolidate the remaining 50%
interest of the advanced-stage Windfall Project and its highly
prospective exploration camp. Over the past two years, beginning
with our initial due diligence in 2022 and throughout our joint
ownership of the project, since May 2023 with Osisko Mining, we
have developed a strong understanding of Windfall and its
potential, and view it as the next long-life cornerstone asset in
our portfolio. We are excited to build on the progress achieved to
date at Windfall and look forward to continue working with the host
Cree First Nation of Waswanipi, other local communities, the
Québec Government and Windfall employees and business partners as
we advance this project which I strongly believe will create
shared, enduring value for Gold Fields and our people, community,
business and government partners.”
Osisko owns a 2-3% NSR royalty on the Windfall
project and surrounding property.
CSA Mine (operated by Metals Acquisition
Limited)
On July 22nd, 2024, Metals Acquisition Limited
(“MAC”) announced that, during the second quarter,
CSA had achieved record quarterly copper production of 10,864
tonnes under its management, up ~24% quarter-on-quarter, with
record monthly copper production in June 2024 of 5,378 tonnes. The
record quarter was achieved despite a major planned maintenance
shutdown in April, with 1,583 tonnes produced for the month, along
with a combined 9,281 tonnes of copper produced over May and
June. During the second quarter, the mined grade at CSA averaged
4.2% copper (“Cu”) a ~20% increase from the prior
quarter as the mine plan shifted to higher grade stopes and
dilution control was improved.
In addition, on July 30th, 2024, MAC provided a
market update on the continuing exploration and resource
development at CSA. MAC’s underground exploration continued to
focus on the down dip and along strike extensions of the QTSN and
QTSC deposits, as well as the shallower, up-dip portions of the
East and West deposits and QTSS Upper A zone. Drill results
reported in the release included 22.1 m at 9.8% Cu, 22.1 m at
7.8% Cu and 24.2 m at 7.8% Cu. These reported results, amongst
others, are after the cut-off date (August 31st, 2023) for the 2023
Resource and Reserve and will be incorporated in the 2024 Resource
and Reserve Estimate update for CSA.
Osisko owns a 100% Silver Stream, in addition to
a 3.0-4.875% Cu Stream, on the CSA Mine.
Tocantinzinho Mine (operated by G Mining
Ventures Corp.)
On September 3rd, 2024, G Mining Ventures Corp.
(“GMIN”) announced that it has reached commercial
production on time and on budget at its 100%-owned Tocantinzinho
Gold Mine (“TZ”) located in the State of Pará,
Brazil. During August 2024, the mill operated at 76% of nameplate
throughput, processing a total of 304,312 tonnes of ore at a
recovery rate of 88%. The plant’s ramp-up continues to progress
in-line with internal production schedules, with all major
equipment demonstrating the capability to operate at or above
design levels. After the initial gold pour announced in July 2024,
GMIN has focused on ramping production to test the processing
circuits’ ability to handle nameplate loads while improving
recovery toward a life of mine average of 90%. GMIN plans to ramp
up production through the second half of 2024, targeting nameplate
throughput by the first quarter of 2025.
Osisko would like to congratulate GMIN on
reaching commercial production at TZ on time and on budget, and in
less than two years. Osisko owns a 0.75% NSR royalty on the TZ
Mine.
Eagle Gold Mine (managed by
PricewaterhouseCoopers Inc. as receiver)
On August 14th, 2024, Victoria Gold Corp.
(“Victoria Gold”) announced that the Ontario
Superior Court of Justice (Commercial List) had granted an order
appointing PricewaterhouseCoopers Inc. (“PwC”) as
the receiver and manager of Victoria Gold. PwC will administer the
assets and liabilities formerly under the control of Victoria Gold
at the direction of the Yukon Government and under the supervision
of the court.
During a briefing on August 16th, Yukon
government Justice Minister Tracy-Anne McPhee said it was the
territorial government’s intention to launch the receivership in a
way that would allow the mine to reopen and resume mining once work
cleaning up from the landslide was completed under the receiver’s
direction. Longer-term, it is intended that mining and processing
will be able to fully resume at Eagle once the necessary work has
been done to ensure safety and environmental security. In late
August 2024, the Yukon government has said it will move forward
with an independent investigation into the root causes of heap
leach pad failure at the Eagle mine which occurred in June
2024.
Osisko holds a 5% NSR royalty on Eagle until
97,500 ounces of gold have been delivered and a 3% NSR royalty
thereafter. Osisko’s royalty covers the entire Dublin Gulch
property including the Eagle and Olive deposits. In addition,
Osisko has various protections with respect to its royalty
including: (i) security over the property, (ii) a registered
interest in land recorded with the Yukon Territory, and (iii) an
intercreditor agreement with the senior lending syndicate. Along
with its second quarter 2024 financial results, Osisko recognized a
full non-cash impairment loss of $67.8 million ($49.9 million, net
of income taxes) based on Osisko’s assessment of the current facts
and circumstances at the time.
Ermitaño Mine (operated by First Majestic Silver
Corp.)
On July 31st, 2024, First Majestic Silver Corp.
(“First Majestic”) announced the discovery of a
significant new, vein-hosted gold and silver mineralized system at
its Santa Elena property in Sonora, Mexico. This new high-grade
discovery, the Navidad vein system (“Navidad”),
was made at depth adjacent to the Company’s 100%-owned and
currently producing Ermitaño mine. To date, seven drill holes have
been completed to test the Navidad discovery; six of these holes
intersected significant vein-hosted gold and silver mineralization.
The closest drill hole intercept to the Ermitaño mine is located
approximately 500 m southwest and 750 m below existing mine
development.
Osisko’s 2% NSR royalty on Ermitaño would
include Navidad, as well as the adjacent Cumobabi property.
Island Gold District (operated by Alamos Gold
Inc.)
Alamos Gold Inc.’s (“Alamos”)
Island Gold District is comprised of the adjacent Island Gold and
Magino Mines. On July 23rd, 2024, Alamos reported new results from
underground and surface drilling at the Island Gold Mine.
Exploration drilling continues to extend high-grade gold
mineralization across the Island Gold Deposit, as well as within
several hanging-wall and footwall structures. Delineation and
definition drilling has defined wide, higher-grade zones within the
Island East area. This is expected to drive further growth in
high-grade Mineral Reserves and Resources with the year end update.
Additionally, high-grade mineralization was intersected in the
North Shear and the Webb Lake stock area, highlighting a
longer-term, near-mine opportunity as a potential source of
additional mill feed for the expanded Magino milling complex.
Osisko owns a 1.38-3% NSR royalty on the
Island Gold Mine. With the district now fully consolidated, Alamos’
expanded and accelerated Phase 3+ mine plan at Island Gold (which
now includes the use of the Magino mill) is anticipated to
transition a greater proportion of production towards Osisko’s 2%
and 3% NSR royalty boundaries earlier in the mine plan, as opposed
to the mineral inventory covered by Osisko’s 1.38% NSR royalty. A
small portion of the eastern limit of the Magino pit is covered by
the 3% NSR royalty owned by Osisko, with deliveries under the
royalty expected from 2030 onwards. The underground exploration
potential previously highlighted by former owner Argonaut Gold on
this claim is located less than 300 m from the existing Island
Gold underground mine infrastructure, a portion of which is covered
by Osisko’s 3% NSR royalty.
ADDITIONAL PORTFOLIO
HIGHLIGHTS
|
1) |
Calibre Mining Corp. announced that it continues to discover near
surface, above-Reserve-grade gold mineralization at the Pan Mine in
Nevada; drilling intersections include 0.45 g/t gold over 117.4 m
and 0.56 g/t gold over 59.4 m. (4.0% NSR Royalty) |
|
2) |
Capstone Mining Corp. announced along with its second quarter 2024
results that the activities for the sulphide operations to reach 20
kilotonnes per day (“ktpd”) on a sustainable basis
are progressing despite an approximate two-month delay relative to
our prior plan due to longer equipment lead times. During the third
quarter of 2024, the installation of key equipment, along with
other infrastructure improvements, is expected to further enhance
the throughput levels at the concentrator plant and is expected to
allow the 20 ktpd capacity to be achieved consistently. (100%
Silver Stream) |
|
3) |
Minera Alamos Inc. announced that mining and stacking operations
commenced in June 2024 with approximately 900 ounces of newly mined
gold stacked on the leach pad (through the end of June) during the
initiation of mining operations at the new Nicho Main zone deposit
at its flagship Santana gold mine in Mexico. (3.0% NSR
Royalty) |
|
4) |
SSR Mining Inc. announced the precautionary suspension of
operations at Seabee due to forest fires; as per the company’s
internal protocols, staff were evacuated from the site (3.0% NSR
Royalty). |
|
5) |
Regulus Resources Inc. announced that it had entered into a
collaboration agreement with Compañía Minera Coimolache S.A. to
evaluate the viability of an integrated Coimolache
Sulphides/AntaKori copper-gold project. The evaluation will consist
of a MRE with the option, upon mutual agreement of both parties, to
complete a PEA. Coimolache is a joint venture owned by Compañía de
Minas Buenaventura S.A.A (40.1%), Southern Copper Corporation
(44.2%), and Espro S.A.C. (15.7%). The joint venture’s active
Tantahuatay gold-silver oxide mine is operated by Buenaventura.
(0.125-1.5% NSR Royalty) |
|
6) |
Osisko Metals Inc. announced an updated Mineral Resource Estimate
for the Pine Point Project located near Hay River, in the Northwest
Territories of Canada. The 2024 Mineral Resource Estimate will form
the resource base for a Feasibility Study that is planned to
commence in Q3 2024. (3.0% NSR Royalty) |
|
7) |
Hot Chili Ltd. announced that it has secured A$31.9 million in
funding to accelerate activities at its Costa Fuego Cu-Au project.
The funding facilitates completion of the Costa Fuego
Pre-Feasibility Study (expected late 2024), completion of the Water
Supply Business Case Study, completion of the Costa Fuego
Environmental Impact Assessment, commencement of a bankable
feasibility study and further exploration activities over the next
18 months. (3.0% NSR royalty on gold + 1.0% NSR royalty on Cu) |
|
8) |
Falco Resources Ltd. announced the creation and establishment of
Technical and Strategic Committees as contemplated by the terms of
the Operating Licence and Indemnity Agreement concluded with
Glencore Canada Corporation on January 23, 2024. In addition, as
previously announced by the inquiry commission of the Bureau of
Public Hearings on the Environment, the first part of the public
hearing on the Falco Horne 5 Project commenced on August 27, 2024.
(90-100% Silver Stream) |
|
9) |
Western Copper and Gold Corp. announced that it has submitted to
the Yukon Environmental and Socio-Economic Assessment Board
Executive Committee an updated and refined schedule for submission
of the Environmental and Socio-economic Effects Statement
(“ESE Statement”) for the Casino Mine Project. The
ESE Statement will form the basis for Western Copper and Gold’s
assessment application for the Panel Review and will include all
the material outlined in the Revised ESE Statement Guidelines
issued on September 12, 2023. In the schedule, Casino indicates
that it plans to submit the ESE Statement in-or-around July 2025,
which is an update from the previously estimated submission date of
the second half of 2024. (2.75% NSR Royalty) |
Qualified Person
The scientific and technical content of this
news release has been reviewed and approved by Guy Desharnais,
Ph.D., P.Geo., Vice President, Project Evaluation at Osisko Gold
Royalties Ltd, who is a “qualified person” as defined by National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
(“NI 43-101”).
About Osisko Gold Royalties Ltd
Osisko is an intermediate precious metal royalty
company focused on the Americas that commenced activities in June
2014. Osisko holds a North American focused portfolio of over 185
royalties, streams and precious metal offtakes. Osisko’s portfolio
is anchored by its cornerstone asset, a 3-5% net smelter return
royalty on the Canadian Malartic Complex, which is home to one of
Canada’s largest gold mines.
Osisko’s head office is located at 1100 Avenue
des Canadiens-de-Montréal, Suite 300, Montréal, Québec,
H3B 2S2.
For further
information, please contact Osisko Gold Royalties
Ltd: |
Grant MoentingVice President, Capital MarketsTel: (514) 940-0670
x116Cell: (365) 275-1954 Email: gmoenting@osiskogr.com |
Heather TaylorVice President, Sustainability and CommunicationsTel:
(514) 940-0670 x105Email: 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. Forward-looking
statements are statements other than statements of historical fact,
that address, without limitation, future events, management’s
expectations on the growth of its asset base and expected
development on time and on budget of the projects and properties
underlying Osisko’s interests. Forward-looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words “expects”, “plans”, “anticipates”,
“believes”, “intends”, “estimates”, “projects”, “potential”,
“scheduled” and similar expressions or variations (including
negative variations), or that events or conditions “will”, “would”,
“may”, “could” or “should” occur. Forward-looking statements are
subject to known and unknown risks, uncertainties and other
factors, most of which are beyond the control of Osisko, and actual
results may accordingly differ materially from those in
forward-looking statements. Such risk factors include, without
limitation, (i) with respect to properties in which Osisko holds a
royalty, stream or other interest; risks related to: (a) the
operators of the properties, (b) timely development, permitting,
construction, commencement of production, ramp-up (including
operating and technical challenges), (c) differences in rate and
timing of production from resource estimates or production
forecasts by operators, (d) differences in conversion rate from
resources to reserves and ability to replace resources, (e) the
unfavorable outcome of any challenges or litigation relating title,
permit or license, (f) hazards and uncertainty associated with the
business of exploring, development and mining including, but not
limited to unusual or unexpected geological and metallurgical
conditions, slope failures or cave-ins, flooding and other natural
disasters or civil unrest or other uninsured risks, (ii) with
respect to other external factors: (a) fluctuations in the prices
of the commodities that drive royalties, streams, offtakes and
investments held by Osisko, (b) fluctuations in the value of the
Canadian dollar relative to the U.S. dollar, (c) regulatory changes
by national and local governments, including permitting and
licensing regimes and taxation policies, regulations and political
or economic developments in any of the countries where properties
in which Osisko holds a royalty, stream or other interest are
located or through which they are held, (d) continued availability
of capital and financing and general economic, market or business
conditions, and (e) responses of relevant governments to infectious
diseases outbreaks and the effectiveness of such response and the
potential impact of such outbreaks on Osisko’s business, operations
and financial condition; (iii) with respect to internal factors:
(a) business opportunities that may or not become available to, or
are pursued by Osisko, (b) the integration of acquired assets or
(c) the determination of Osisko’s PFIC status (d) that financial
information may be subject to year-end adjustments. The
forward-looking statements contained in this press release are
based upon assumptions management believes to be reasonable,
including, without limitation: the absence of significant change in
Osisko’s ongoing income and assets relating to determination of its
PFIC status, and the absence of any other factors that could cause
actions, events or results to differ from those anticipated,
estimated or intended and, with respect to properties in which
Osisko holds a royalty, stream or other interest, (i) the ongoing
operation of the properties by the owners or operators of such
properties in a manner consistent with past practice and with
public disclosure (including forecast of production), (ii) the
accuracy of public statements and disclosures made by the owners or
operators of such underlying properties (including expectations for
the development of underlying properties that are not yet in
production), (iii) no adverse development in respect of any
significant property, (iv) that statements and estimates relating
to mineral reserves and resources by owners and operators are
accurate and (v) the implementation of an adequate plan for
integration of acquired assets.
For additional information on risks,
uncertainties and assumptions, please refer to the most recent
Annual Information Form of Osisko filed on SEDAR+ at
www.sedarplus.ca and EDGAR at www.sec.gov which also provides
additional general assumptions in connection with these statements.
Osisko cautions that the foregoing list of risk and uncertainties
is not exhaustive. Investors and others should carefully consider
the above factors as well as the uncertainties they represent and
the risk they entail. Osisko believes that the assumptions
reflected in those forward-looking statements are reasonable, but
no assurance can be given that these expectations will prove to be
accurate as actual results and prospective events could materially
differ from those anticipated such the forward-looking statements
and such forward-looking statements included in this press release
are not guarantee of future performance and should not be unduly
relied upon. 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. These statements speak
only as of the date of this press release. Osisko undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, other than as required by applicable law.
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