Osisko Gold Group (TSXV: OGG) has formally committed to building the Cariboo Gold Project, with its board approving a positive construction decision that starts a 30-month build running from August 1, 2026.
That schedule points to a first gold pour in Q1 2029, with commercial production following in H2 2029.
The remaining bill is C$990 million, covering everything from August 1 through commercial production and carrying about 16.5% contingency. Against that, the company has identified approximately C$1,637 million in sources, including C$837 million of cash and equivalents already on hand, roughly C$117 million in equipment financing, and two new arrangements with Trafigura.
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With a total estimated use of capital sitting at $1,435 million, it leaves a projected surplus of C$201 million by the time the mill is running commercially.
The Trafigura package is the fresh money. An affiliate of the commodities trader is putting US$30 million into equity, taking 9.55 million shares at US$3.14 apiece, and has committed to a potential US$120 million subordinated prepayment facility priced at SOFR plus 6.00%, with a three-year drawdown window and a minimum five-year maturity. In exchange, Trafigura takes 100% of Cariboo’s gold concentrate and doré offtake for the first four years of production.
Work is already well underway. As of July 31, the project was about 22% complete, with detailed engineering roughly 40% done and procurement commitments totalling C$325 million across 466 work packages that are collectively 44% advanced. Underground development has reached 3.0 kilometres, and major earthworks began ramping up through Q3. Construction and operating permits were in hand back in Q4 2024; the License of Occupation for the transmission line is expected in Q4 2026.
“The Board’s formal positive decision to commence full-scale construction of our flagship Cariboo Gold Project represents a defining milestone for Osisko Gold and a pivotal inflection point toward our objective of becoming an intermediate gold producer,” said chairman and chief executive Sean Roosen, who added that the focus now turns to “disciplined project execution toward first gold in early 2029.”
The underlying mine plan contemplates a 10 year life at 4,900 tonnes per day and an average grade of 3.62 g/t gold, yielding 1.894 million payable ounces, averaging 190,000 ounces annually, and 202,000 ounces across the first five years. At spot pricing of US$4,350 per ounce, Osisko pegs the after-tax NPV5% at C$3.2 billion against an AISC of US$1,202 per ounce.
Osisko Gold last traded at $3.95 on the TSX.
