Osisko Mining (TSX: OSK) has decided to develop the Windfall gold project on its own, 200 km north of Val d’Or, Quebec. Joint venture negotiations with Northern Star (ASX:NST) were announced last November, but have now been broken.
Osisko says its independent development of the project would be the most beneficial option for its shareholders.
Although Northern Star is not a Windfall partner, Osisko maintains that it will continue a cordial and beneficial relationship with the Australian company, which is a significant debt holder having advanced a $154 million senior unsecured convertible debenture due on December 1, 2025, with an interest rate of 4.75% per annum.
In January, Osisko released its latest resource estimate for Windfall gives the project a total of 6.8 million ounces. gold. Using a 3.5 g/t gold cut-off grade, Windfall has 9.5 million measured and indicated tonnes, averaging 10.5 g/t gold (3.2 million ounces of gold) and 5.2 g/t silver (1.6 million oz silver). The indicated resource is an additional 13 million tonnes at 8.6 g/t gold (3.6 million ounces gold) and 4.7 g/t silver (2 million ounces silver). money).
Windfall is the largest high-grade gold project with resources of several million ounces, based on the latest resource update.
Since that time, the company has continued to drill broad high-grade intersections. Selected intersections released last month include 482 g/t gold over 3.7 meters, 380 g/t over 3.2 meters, 143 g/t over 3.4 meters, 87.9 g/t over 3, 2 meters, and more.
A new high-grade zone was discovered on the Golden Bear target approximately 1 km north of the Windfall deposit. Assays included 15.3 g/t gold over 3.5 meters, 6.26 g/t over 2.8 meters, 4.14 g/t over 1.4 meters, 4.15 g/t over 1 .2 meters and 10.5 g/t over 2.4 meters.
Osisko is also conducting an infill drilling campaign on the high-grade Lynx Zone prior to bulk sampling. The results of this work were published earlier this month. They analyzed uncut grades of 696 g/t gold over 2.5 meters, 193 g/t over 2.3 meters, 248 g/t over 2.2 meters, 72 g/t over 5.1 meters , up to 7.04 g/t over 3 meters.
A preliminary economic assessment for Windfall released April 2021 described a 235,000-328,000 oz. per year mine with a lifespan of 18 years. Pre-production construction costs would be $543 million, followed by after-tax payback after production began which would take 2.2 years.
The net present value after tax with a 5% discount would be $1.5 billion and the internal rate of return 39.3%. The project could generate gross revenues of $8.2 billion or operating cash flow of $2.6 billion over its lifetime. During production, the mine and plant would employ approximately 400 workers.
Additional information is posted at www.OsiskoMining.com.