PRECIOUS METALS

Osisko adds 10 years to Windfall in PEA update

Economics boosted by larger resource, higher gold price

Staff reporter
Osisko mining's Winfall project in Quebec, Canada

Osisko mining's Winfall project in Quebec, Canada

Production would average 238,314oz/y from a 3,100tonnes per day operation at an all-in sustaining cost of $610/oz compared with 218,000oz at $704/oz in the prior study, with the capital efficiency of the project improving to $130/oz of production from $207/oz previously.

The updated project would yield an after-tax net present value of C$1.5 billion and an internal rate of return of 39.3% compared with C$413.2 million and 32.7% previously. The payback shortens from 3.7 years to 2.2 years. The first seven years of production would see Windfall produce 300,000oz/y at an 8.1g/t average diluted grade, peaking at 328,000oz in year six.

The measured and indicated resources tripled to about 1.8 million ounces with a further 4.2Moz in inferred resources at a US$1,500 per ounce gold reference price, compared with 601,000oz and 2.3Moz at $1,300/oz in the initial PEA.

"We believe this highly positive PEA is conservative," said Osisko Mining president and CEO John Burzynski.

"The eventual inclusion of high-grade infill results received since November 2020, and the results we anticipate as we complete the infill drilling for the feasibility study by the early fall of 2021, should convert a significant number of additional high-grade mineral resource estimate inferred ounces to the measured and indicated categories.

"In the next 12 months we are focused on completing drilling, the feasibility, optimising the capital programme and operating plans, and securing project financing, as we advance our goal to move the project to first production in 2024."

Shares in Osisko Mining are trading at C$2.95, valuing the company at $1.1 billion.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.