Precious metals company Osisko Development has released an optimised feasibility study for its 100%-owned Cariboo gold project in central British Columbia, reaffirming the project’s strong economics and positioning it as one of the few fully permitted, undeveloped gold projects in a Tier 1 jurisdiction.

The 2025 feasibility study outlines a low-impact underground operation with average life-of-mine gold production of 190 000 oz/y and a 22.1% after-tax internal rate of return at a base case gold price of $2 400/oz. At spot prices of $3 300/oz, the IRR jumps to 38%.

“The completion of this optimised feasibility study represents a critical milestone for the Cariboo gold project, one of the few undeveloped, permitted gold projects in a Tier 1 jurisdiction,” said Osisko Development founder, chairperson and CEO Sean Roosen. 

“The results reaffirm our view that Cariboo is a high-quality asset with robust returns and significant upside potential within the existing mine plan.”

The base case net present value, using a 5% discount rate, comes in at C$943-million, with payback in under three years from commercial production.

The 2025 capital expenditure estimate increased to C$1.41-billion, from the 2023 feasibility study estimate of C$1.12-billion.

The average all-in sustaining cost is projected at $1 157/oz.

“Our immediate focus remains on advancing project financing and further de-risking the project toward final investment decision, but, we believe additional work could support potential future production increases within the planned mine footprint,” Roosen said. “Additionally, our extensive land position around the project area offers numerous opportunities for new discoveries in this prolific gold belt.”

Osisko expects to reach a formal investment decision in the coming months, with construction activities potentially beginning in the second half of 2025 and completion targeted for late 2027.

“With today’s favourable gold price backdrop and positive outlook, we believe this project is well-positioned to deliver substantial value to all stakeholders. We look forward to sharing further updates in the coming months,” Roosen added.

Key improvements in the 2025 study over the previous 2023 feasibility include a streamlined processing design – eliminating the need to transport concentrate to a secondary facility – and a higher average gold recovery rate of 92.6%. Daily throughput is expected to reach 4 900 t/d, producing a doré and about 66 t/d of high-grade flotation concentrate averaging 133 g/t gold.