This is where a development story starts to expand.

Key Concepts

• Proserpine: A new mineral discovery currently undergoing exploration.
• Resource Expansion: The strategic effort to increase the depth of drilling from 350 meters to 1,500 meters.
• Drilling Density: The ratio of ounces per meter, currently averaging 15,000 ounces per meter.
• Reserves vs. Resources: The distinction between proven/probable reserves (2 million oz) and total mineral resources (3.5 million oz).

Near-Term Catalysts and Operational Milestones

The company’s immediate growth trajectory is driven by two primary factors:

1. Exploration Results: The release of assay and drill results from the new "Proserpine" discovery.
2. Construction Milestones: Progressing through various phases of underground infrastructure development as the project moves deeper.

Resource Expansion Strategy

The company is shifting its focus from shallow exploration to deep-tier resource definition.

• Current Status: The main deposit has been drilled to a depth of 350 meters, supported by 700,000 meters of total drilling.
• Performance Metrics: The project has demonstrated a high-grade consistency, averaging 15,000 ounces per meter (or 1.5 million ounces for every 100 meters of depth).
• Future Objective: The company aims to extend drilling from the current 350-meter mark down to 1,500 meters. This expansion is viewed as a significant opportunity to exponentially increase the total ounce count of the deposit.

Corporate Philosophy and Scale

The speaker emphasizes the company’s (Osisko) operational ethos, characterized by large-scale, aggressive exploration and development.

• Current Inventory: The company currently holds 2 million ounces in reserves and 3.5 million ounces in total resources.
• Strategic Stance: The speaker notes, "Osisko is we do no small thing," highlighting a commitment to high-intensity drilling programs and large-scale project execution.

Synthesis and Conclusion

The company is transitioning from a proven resource base of 3.5 million ounces toward a significantly larger potential by leveraging deep-drilling techniques. By targeting depths of up to 1,500 meters, they aim to capitalize on the high-grade continuity observed in the upper 350 meters. The combination of ongoing construction milestones and the exploration of the Proserpine discovery serves as the primary value driver for the near term.