Osisko Gold Royalties Provides Asset Updates
Osisko Gold Royalties Ltd (the "Company" or "Osisko") (OR: TSX & NYSE) is excited to announce some significant updates concerning its asset portfolio.
Recent Developments Overview
According to Jason Attew, President & CEO of Osisko, the past few months have highlighted positive developments within the Company’s asset base, which are adding incremental value. Several catalysts are expected to emerge before the year concludes, driving further growth. The short-to-medium-term expansion of Osisko relies on various advanced projects, including major underground developments at Odyssey and the Island Gold District, as well as significant open pit explorations at Tocantinzinho and Namdini.
Key Asset Highlights
Upper Beaver Project
On July 31, Agnico Eagle Mines Ltd shared insights about its Upper Beaver project, located near Kirkland Lake, Ontario. The detailed internal evaluation suggested that Upper Beaver could yield an average of approximately 210,000 ounces of gold and 3,600 tonnes of copper annually, with initial production projected for 2030. The total mine life is estimated to be around 13 years, expected to produce about 2.8 million ounces of payable gold and 46,300 tonnes of copper.
Agnico Eagle has committed to a US$200 million investment over three years to reduce risks and advance the project. Osisko benefits from a 2% net smelter return (NSR) royalty on Upper Beaver, strengthening its interest in Agnico's regional properties.
Shaakichiuwaanaan Project
Patriot Battery Metals Inc. has reported a Preliminary Economic Assessment for Shaakichiuwaanaan, a major hard-rock lithium project in Québec. This assessment indicates the potential to become one of the largest spodumene producers worldwide, with a phased development plan that aims for 400 kilotonnes per annum (ktpa) in the first stage, followed by an increase to around 800 ktpa.
Osisko holds a sliding scale NSR royalty ranging from 1.5% to 3.5% on precious metals and 2.0% on lithium, with most mineral resources located within its royalty area.
Windfall Project
Osisko Mining Inc. is currently in the spotlight due to a definitive agreement with Gold Fields Limited. This deal aims to consolidate Gold Fields’ ownership of the Windfall project. The CEO of Gold Fields expressed enthusiasm about this advanced-stage asset, emphasizing its potential significance in their portfolio.
Osisko retains a 2-3% NSR royalty on this promising project, reflecting its ongoing interests in the mining exploration sector.
CSA Mine
Metals Acquisition Limited recently announced record copper production at the CSA Mine during the second quarter, significantly enhancing quarterly results despite facing maintenance challenges. The average mined grade reached 4.2% copper, showcasing notable operational improvements.
Osisko benefits from a 100% Silver Stream and a 3.0-4.875% Copper Stream from the CSA Mine, ensuring stable revenue streams.
Tocantinzinho Mine
G Mining Ventures Corp. successfully achieved commercial production at its Tocantinzinho Gold Mine on schedule and within budget. In August, production reached 76% of nameplate throughput, demonstrating the plant's ramp-up capabilities, with plans for further optimization extending into 2025.
Osisko congratulates G Mining on this timely achievement and holds a 0.75% NSR royalty over the mine, reflecting its continued involvement in gold production ventures.
Final Thoughts
Osisko is strategically positioned within the mining sector, with interests in a diverse array of high-potential projects that are expected to deliver solid returns for stakeholders. The Company’s extensive portfolio, which includes a 3-5% NSR royalty on the Canadian Malartic Complex, bolsters its standing in the industry.
Frequently Asked Questions
What is Osisko Gold Royalties Ltd?
Osisko Gold Royalties Ltd is an intermediate precious metal royalty company that focuses on acquiring royalties, streams, and offtakes in the mining sector, particularly in the Americas.
What projects are highlighted in the recent update?
The recent updates feature advancements in the Upper Beaver, Shaakichiuwaanaan, Windfall, CSA Mine, and Tocantinzinho projects.
What royalty does Osisko hold on these projects?
Osisko holds various royalties, including NSR royalties ranging from 1.5% to 5% across different projects, which ensures diversified revenue streams.
How does Osisko benefit from these projects?
Through its NSR royalties, Osisko stands to gain from the production output of these projects without incurring the operational costs associated with direct mining.
Who are the key contacts at Osisko?
Key contacts include Grant Moenting, Vice President of Capital Markets, and Heather Taylor, Vice President of Sustainability and Communications.
