en.Wedoany.com Reported - Osisko Development (TSX Venture Exchange and NYSE: ODV) has extended high-grade gold zones below the current resource envelope through drilling at its Cariboo gold project in British Columbia, Canada.
The company reported that all 11 drill holes intersected gold grades of at least 1.8 grams per tonne. Among them, hole IM-26-003 encountered approximately 5 meters grading 6.61 g/t gold at 425 meters depth, about 7 meters grading 6.17 g/t gold at 517 meters, and 50 centimeters grading 73.10 g/t gold at 843 meters.
National Bank Financial mining analyst Don DeMarco stated that these results confirm high-grade mineralization below the current Cariboo deposit, enhancing the potential for a step-change in mineralization volume, which is not currently reflected in mine plans or valuations. DeMarco believes Osisko's resource growth story is gaining momentum.
The Cariboo project, with approximately 1.61 million ounces of measured and indicated resources, is a key asset for Montreal-based Osisko Development. The company focuses on revitalizing historically producing mines across North America. DeMarco noted that Cariboo's potential is not dissimilar to certain multi-generational Canadian producing mines.
Osisko stated that these drill holes were completed between December 2025 and April 2026, totaling 8,971 meters. The drilling team targeted deep extensions of known vein corridors and gaps between existing deposits. About two-thirds of the drilling intersected areas outside the Cariboo deposit.
Other drilling highlights include: hole CM-26-002 encountered 7.6 meters grading 3.26 g/t gold at approximately 76 meters depth; hole CM-25-002 encountered about 5 meters grading 4.41 g/t gold at 192 meters; and hole IM-26-001 encountered 6.3 meters grading 6.40 g/t gold at 326 meters.
Osisko said the results to date confirm the presence of deep high-grade mineralization and reinforce significant upside potential in under-tested gaps and deeper zones below the current Cariboo deposit footprint (average extension depth of approximately 350 meters). Currently, five drill rigs continue surface drilling, systematically testing down-dip targets of the current resource to a maximum vertical depth of 800 meters.
The Cariboo project is expected to become a conventional underground mine, extracting ore from gold-bearing vein corridors using mechanized longhole open stoping. The mine can produce salable gold doré bars at an on-site integrated facility, with flotation concentrate trucked to the Port of Vancouver and sold to smelting partners.
According to an April 2025 feasibility study, the Cariboo project has an after-tax net present value of C$943 million, with estimated capital expenditures of C$1.41 billion. Over an expected mine life of approximately 10 years, average annual gold production is about 190,000 ounces, with 202,000 ounces per year in the first five years. The project benefits from year-round access, existing infrastructure, and support from the provincial government and Indigenous communities, with Cariboo's mineral claims alone exceeding the entire footprint of Quebec's prolific Val-d'Or mining camp.
On Thursday, Osisko Development shares rose 3.6% to C$3.50 in Toronto, giving the company a valuation of approximately C$1.1 billion (US$775 million). The stock has traded in a range of C$2.95 to C$6.63 over the past 12 months.
