Osisko Development Update | Sean Roosen and Jimmy Connor

Oiscoco Development – Caribou Gold Project & Tintech Project Update

Key Concepts:

• Caribou Gold Project: A fully permitted, construction-stage gold project in British Columbia, Canada, aiming for initial production of 220,000 ounces per year.
• Lan Curve: The stages of a mining project’s development, from exploration to production and growth. Oiscoco is transitioning out of the “value creation” phase and into construction.
• All-in Sustaining Cost (AISC): The total cost of producing an ounce of gold, including operating costs, capital expenditures, and sustaining costs.
• Origenic System: A geological system where gold mineralization is formed from hot, aqueous fluids originating deep within the Earth.
• CRD (Carbonate Replacement Deposit): A type of mineral deposit formed by the replacement of carbonate rocks by hydrothermal fluids.
• Enterprise Value: A measure of a company’s total value, calculated as market capitalization plus debt minus cash.
• Suds: Oiscoco’s internal motto: “Shut Up and Drill, Stupid,” emphasizing a focus on exploration.

I. Company Vision & Strategy

Sean, CEO of Oiscoco Development, envisions Caribou Gold as a potentially world-class asset with significant scalability. The company’s strategy focuses on building a 5,000-ton-per-day mine, initially producing approximately 220,000 ounces of gold annually. He believes Caribou represents a rare opportunity due to its potential for growth and the broader mining camp environment. Oiscoco aims to demonstrate the project’s potential and attract further investment, ultimately establishing Caribou as a major gold-producing district. He stated, “Cisco development is one of those rare assets that I've seen… that can be scalable, can be a world-class asset.”

II. Caribou Gold Project – Resource & Drilling

The Caribou Gold project currently boasts:

• Reserves: 2 million ounces of gold.
• Measured & Indicated Resources: 1.61 million ounces.
• Inferred Resources: 1.81 million ounces.

These resources are defined down to a depth of approximately 350 meters (1,000 feet). A 70,000-meter drill program is underway to explore extensions at depth and along strike. The deposit is 4.4 kilometers long and 600 meters wide, characterized by vein corridors within a sediment-hosted system. Drilling has consistently yielded approximately 1.5 million ounces of gold for every 100 meters drilled. Two drills are currently operating on deeper drilling to assess the potential beneath the existing deposit, which is an origenic system known to extend to significant depths (reaching 1,000 meters/3,000 feet so far).

III. Caribou Gold Project – Development & Financing

• Feasibility Study Highlights: The optimized feasibility study outlines a 10-year mine life with average annual production of 180,000-190,000 ounces.
• Capital Expenditure (CAPEX): Approximately $881 million CAD (approximately $650 million USD).
• Financing: Oiscoco secured nearly $1 billion CAD in funding last year, including $450 million USD from Apen (with $100 million drawn to date) and an additional $200 million USD in equity financing. The company currently holds over $480 million CAD in cash.
• Infrastructure: The project benefits from existing infrastructure, including a paved road 45 minutes from the town of Quinnel, a power line providing 22 megawatts of power at 6.6 cents CAD/kilowatt, and underground development already exceeding 2 kilometers. The mill equipment is already owned and located nearby.
• Environmental Considerations: The mine is designed to be low-impact, utilizing gravity concentration and flotation processes, avoiding cyanidation on-site.

IV. Exploration Potential – Proer Pine & Regional Trend

Oiscoco believes the Caribou area represents a larger mining camp with potential for multiple discoveries. The property encompasses 1,550 square kilometers (500,000 acres) with over 140 historical mines.

• Proer Pine: A promising target located approximately 2-3 kilometers from Caribou, exhibiting similar geological structures and potentially larger scale. The structure is described as an anticline opening like an accordion with vein corridor systems.
• Regional Trend: The overall mineralized trend extends 83 kilometers (50 miles) in length, with only 7% currently explored. The company is actively exploring secondary targets along this trend. Geologically, the deposit is compared to Mirral in Uzbekistan (170 million ounces), though not a direct analog.

V. Tintech Project – Utah

Oiscoco also holds the Tintech project in Utah, currently considered the number one jurisdiction for mining investment. Located 40 miles south of Bingham (Kennecott mine), the area has a history of both gold and base metal (CRD) mining, with five previous gold mines and 18 base metal CRD mines. The project benefits from a favorable political climate, particularly during the Trump era, and the potential for significant discoveries.

VI. Historical Context & Community Relations

The Caribou Gold area has a rich mining history dating back to 1859, with continuous mining activity since the mid-1800s. Barkerville, the original town, was once the largest city north of San Francisco, peaking at around 4,000 people (with rumors of up to 20,000). The area also has a significant history with Chinese Canadian miners who continued operations after the initial gold rush. Oiscoco emphasizes strong relationships with local First Nations communities (Taco Donnie and Williams Lake) and the host community.

VII. Valuation & Future Outlook

Sean believes Oiscoco is currently undervalued, trading at an enterprise value of approximately $700 million CAD net of cash. He compares the company to peers like G Mining (market cap ~$9 billion CAD) and West Dome (market cap ~$3.5 billion CAD), highlighting the potential for significant value appreciation. He anticipates continued news flow regarding mine construction, drilling results, and permit extensions. He stated, “we’re trading roughly $500,000 per 100,000 ounces of production… there’s on all metrics that you would look at, it’s a very good, it stacks up very good as a comparable that has quite a bit of upside.” He also acknowledged the possibility of a takeover bid, stating, “I assume that I’m in play every day.”

VIII. Upcoming News Flow (2024-2028)

• Continued updates on mine construction and earthworks.
• Results from the 70,000-meter drill program at Proer Pine.
• Infill drilling results from the underground at Loi, aiming to convert inferred resources to reserves.
• Further exploration of regional targets along the 83-kilometer trend.
• Expected production start in late 2027/early 2028.

Conclusion:

Oiscoco Development is aggressively advancing the Caribou Gold project towards production, backed by strong financing and a robust resource base. The company’s exploration strategy, focused on expanding resources at depth and along strike, coupled with the potential of the Proer Pine target and the Tintech project in Utah, positions it for significant growth. The company’s commitment to responsible mining practices and community engagement further strengthens its long-term prospects. The CEO anticipates continued derisking of the project will attract attention from potential acquirers.