Osisko Gold Group Inc. (TSXV: OGG; NYSE: OGG) has approved full-scale construction of its 100%-owned Cariboo Gold Project in central British Columbia.
The company expects a first gold pour during the first quarter of 2029, followed by commercial production in the second half of that year.
Remaining Capital Estimated at C$990 Million
Osisko estimates the remaining capital obligation at C$990 million from Aug. 1, 2026. That figure is net of approximately C$272 million spent through July 31 and includes a contingency of about 16.5%.
The estimate also assumes approximately C$117 million of equipment leasing. Those leases remain under negotiation and are based on non-binding term sheets.
The revised schedule allows 30 months from Aug. 1 to first gold, compared with 24 months in the 2025 feasibility study. The projected period to commercial production increased from 34 months to 36 months.
Osisko estimated the project was 22% complete as of July 31. Detailed engineering was approximately 40% complete, while procurement and commitments for long-lead equipment were about 44% complete. The company had committed C$325 million and completed approximately three kilometers of underground development.
Funding Plan Includes Conditional Sources
Osisko estimates total available and proposed capital sources of C$1.64 billion against C$1.44 billion of projected uses through commercial production. The company calculates that this would leave approximately C$201 million of liquidity.
However, several components remain conditional.
Trafigura affiliate Urion Investments Holdings has agreed to invest US$30 million by purchasing approximately 9.55 million Osisko shares at US$3.14 each. Closing remains subject to customary conditions and final acceptance from the TSX Venture Exchange and New York Stock Exchange.
Trafigura also secured agreements to purchase all gold concentrate and doré produced during Cariboo’s first four years of production, subject to specified delivery limits and commercial deductions.
A proposed gold prepayment facility of up to US$120 million remains non-binding. Osisko’s assumed equipment financing is also not finalized.
The company separately has a US$450-million senior secured project loan facility with funds advised by Appian Capital Advisory. Access to the remaining US$350-million second draw remains subject to outstanding conditions.
Project Contains Two Million Ounces of Probable Reserves
Cariboo’s April 2025 reserve estimate contains 17.8 million tonnes grading 3.62 grams per tonne gold, representing approximately 2.07 million ounces of probable reserves. No proven reserves were reported.
The underground operation is designed to process 4,900 tonnes per day over a projected 10-year mine life. Osisko forecasts average annual production of approximately 190,000 ounces, increasing to 202,000 ounces during the first five years.
Project economics remain sensitive to gold prices. Osisko calculated an after-tax net present value of C$943 million using US$2,400-per-ounce gold and C$3.18 billion using a US$4,350 spot-price scenario. These estimates are projections rather than guaranteed financial outcomes.
Construction Risks Remain
Osisko describes Cariboo as fully permitted following receipt of its principal provincial approvals in 2024. However, implementation still depends on additional authorizations, construction execution and continued access to financing.
The remaining development period carries risks including cost inflation, schedule delays, unexpected underground conditions, contractor and equipment availability, currency movements and changes in gold prices.
First gold, commercial production and projected costs remain targets rather than confirmed outcomes.
Sources
- Osisko Gold Announces Formal Construction Decision and Development Update for Cariboo
- Osisko Gold Amends US$450 Million Appian Credit Facility
- Osisko Gold — Cariboo Gold Project Overview
Editorial Disclosure
This article was prepared from publicly available company disclosures. Mining Markets Report received no compensation from Osisko Gold Group Inc. for its preparation or publication and has no disclosed business relationship with the company.
The author and publisher do not hold securities in Osisko Gold Group Inc. Project costs, construction schedules, financing availability, production forecasts and economic estimates were supplied by the company and have not been independently verified by Mining Markets Report.
Several components of the project’s funding plan remain conditional or non-binding. Construction and mine-development projects carry significant technical, financial, regulatory and execution risks.
This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Readers should conduct their own due diligence and consult a qualified financial professional. Read the full Mining Markets Report disclaimer.
