Osisko Development (TSX: ODV) has awarded a major contract this morning. The contract, awarded to JDS Energy & Mining, is for project and construction management services for the development of Osisko’s flagship Cariboo Gold project in British Columbia.
The awarding of the contract follows Osisko last week closing on gross proceeds of US$143.8 million under a bought deal financing. While a final investment decision has not yet been formally made for the Cariboo project, this latest funding round, combined with the awarding of the construction management agreement, suggests that decision is coming in the near term.
On site, over 100 personnel are said to already be fulfilling pre-construction activities for the Cariboo project, including the excavation of waste rock storage facilities, the construction of water treatment facilities, and the construction of sediment control ponds. A 266-room camp facility has also been completed.
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The project is expected to take 24 months to complete post-construction decision as per a 2025 feasibility report, followed by a 10 month ramp-up period. Once fully operational, Cariboo is expected to produce 190,000 ounces of gold a year over a ten year mine life at an all in sustaining cost of US$1,157 an ounce.
“Formalizing our partnership with JDS supports an integrated approach to project delivery, as we advance the next phase of work at the Cariboo Gold Project,” commented Sean Roosen, CEO of Osisko Development on the awarding of the contract.
Osisko Development last traded at $4.94 on the TSX Venture.
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