What Makes the Cariboo Gold Project a Potential Billion-Dollar Asset

What Makes the Cariboo Gold Project a Potential Billion-Dollar Asset

Osisko Development Corp. (NYSE: ODV | TSXV: ODV) is advancing one of the most compelling gold development stories in North America. With its permitted Cariboo Gold Project in British Columbia advancing toward construction, the company is positioned to become a significant mid-tier producer. Here’s a breakdown of why Cariboo could redefine Osisko’s valuation trajectory.

Permitted and Ready to Build

Osisko has spent years advancing the Cariboo project through exploration, permitting, and engineering. As of early 2025, the project is permitted and construction-ready—a key milestone that significantly reduces development risk and places it on a very short list of permitted gold assets in North America.

Located in central British Columbia’s historically rich Wells-Barkerville district, Cariboo is not just permitted; it has also received support from local communities and Indigenous groups. The company has completed the environmental review process and received the necessary authorizations to proceed at the end of 2024. This clears the path for construction to begin as early as the second half of 2025, subject to securing a project financing package.

Compelling Project Economics

According to Osisko’s April 2025 optimized Feasibility Study, Cariboo is forecast to deliver an average annual production of 190,000 ounces of gold over its 10-year mine life. In the first five years, that figure rises to 202,000 ounces per year.

All-in sustaining costs are estimated at US$1,157 per ounce, placing the project in the lower half of the global gold cost curve for producers. Initial capital expenditure is forecast at C$881 million, with infrastructure designed to support 4,900 tonnes per day of ore processing, and strategically accommodate future expansions.

At a base case gold price of US$2,400/oz, the project carries an after-tax NPV (5%) of C$943 million and an IRR of 22.1%. Under a spot gold scenario of US$3,300/oz, the NPV increases to approximately C$2.1 billion with a 38% IRR.

Free Cash Flow Generation

Once operational, Cariboo is projected to generate significant free cash flow. In the first five years alone:

• C$296 million/year in post-tax free cash flow at base case US$2,400/oz
• C$457 million/year in post-tax free cash flow at spot US$3,300/oz

Over the life of mine, those averages shift to:

• C$158 million/year (base case)
• C$314 million/year (spot gold)

For Osisko, this level of cash generation would not only support growth initiatives but also provide options for debt reduction, dividends, and reinvestment across its broader asset base.

Diversified Asset Base

While Cariboo is the flagship, Osisko has additional projects contributing to its long-term potential:

• Tintic Project (Utah): A past-producing district located 60 miles south of the prolific Bingham Canyon copper mine, host to 23 past-producing mines.
• San Antonio Project (Mexico): A past-producing gold asset with existing infrastructure and development upside.
• Regional assets near Cariboo: Multiple satellite targets provide optionality with minimal capital exposure.

This multi-asset strategy allows Osisko to balance risk and pursue long-term growth in a disciplined, capital-efficient manner.

Near-Term Catalysts

Several upcoming developments could significantly shift investor sentiment:

• Project financing package expected in the coming months, which would unlock construction start in H2 2025.
• Progress and results from Tintic and San Antonio projects could add value.
• A sustained move in gold prices above US$2,400 would have meaningful impact on NAV and investor interest.

Each of these milestones offers potential for valuation re-rating as Osisko transitions from developer to producer.

Why the Timing Matters

For prospective investors, timing is critical. With Cariboo permitted and development-ready, Osisko is on the cusp of entering the most powerful revaluation phase of the mining cycle—when a developer turns into a producer.

Case studies like G Mining and Artemis Gold have shown significant share price appreciation during the construction-to-production phase.

With macro conditions favorable and gold attracting institutional flows, Osisko’s combination of jurisdictional safety, scale, and advanced-stage status make it a standout among peers.

Final Thoughts

Osisko Development has already done the hard work—obtaining permits, completing a feasibility study, and preparing for construction. With Cariboo potentially worth over C$2 billion in a spot gold scenario and multiple additional projects in the pipeline, the company is rapidly approaching a key inflection point.

For investors seeking exposure to the next wave of mid-tier gold producers, Osisko offers a rare combination of scale, timing, and low-risk jurisdictional advantage.

Disclaimer

Cashu Technologies (“We” or “Us”) are not securities dealers or brokers, investment advisers or financial advisers, and you should not rely on the information herein as investment advice. Osisko Development Corp. made a one-time payment of fifty thousand dollars to provide marketing services for a term of three months. This article is informational only and is solely for use by prospective investors in determining whether to seek additional information. This does not constitute an offer to sell or a solicitation of an offer to buy any securities. All investments carry risk. Always conduct your own due diligence.