Osisko Development Update | Sean Roosen and Jimmy Connor
Summary
Core Pitch: The guest is bullish on Osisko Development (ODV), highlighting the fully permitted and financed Cariboo Gold project with district-scale upside.
Project Metrics: Phase 1 targets a 5,000 tpd underground operation producing ~220,000 oz/year, supported by ~2 Moz reserves and significant M&I and inferred resources with active infill and step-out drilling.
Funding & Permits: Over C$1B raised cumulatively, ~US$450M debt facility, substantial cash on hand, and key permits secured (Nov 2024), with construction and power infrastructure underway.
Resource Growth: Ongoing drilling at depth and along strike aims to convert resources and potentially double production within the permitted footprint; additional targets in the broader trend are being advanced.
Gold Price Tailwind: A much higher gold price supports lower cutoffs and larger mineable inventories, improving project economics and conversion potential.
Comparables & Valuation: Benchmarks to G Mining Ventures (GMIN), Alamos Gold (AGI), and historical outcomes with Agnico Eagle (AEM) suggest valuation upside versus peers on production and EV/oz metrics.
Optionality & M&A: The company could be a takeover target given scarce permitted, financed projects; management aims to derisk and grow ounces before any potential bid.
Additional Jurisdictions: A second asset in Utah (Tintic) offers U.S. jurisdictional diversification and historical production pedigree, with work planned this year.
Transcript
Sean, thank you very much for joining us today. Oiscoco Development's primary asset is the Caribou Gold project. It's located in the province of British Columbia. And as a lot has happened at Caribou since the last time we spoke. But before we do the deep dive on the project, why don't we first discuss your vision and your strategy for the company? What are you trying to achieve at Caribou and how does Caribou compare to its comps? I >> think Cisco development is one of those rare assets that I've seen. You know, I've been on a few big ones in my career. um that can be scalable, can be a world-class asset. And you know, we're we're on the well along the way the path of the so-called Lan curve. We're coming out of the uh the value. We're in construction now. We're fully permitted. Um the first phase of this company is to build a 5,000 ton a day mine, which will allow us to produce around 220,000 ounces a year to start. Um, we announced a 70,000 m drill program last year. So, we're drilling on a few uh more of the extensions, but we have 2 million ounces of reserves, 1.61 million ounces of measure indicated, and another 1.81 million ounces of inferred. So, you know, we're not shy on ounces. We got lots of ounces, and that's only down to a depth of about 1,000 ft or 350 m. Um, so things are pretty exciting. Um, you know, we're fully funded. We raised almost a billion dollars Canadian last year. Um so we're, you know, last announced we were sitting north of $480 million of cash on the balance sheet. Um and we want to continue to grow this. We think this is a mining camp. Uh and that this first of many successes that this property will offer up. Uh it's 1550 kilmters. Uh so you know we're we have our next three to four mine uh potential discoveries on the trend. Uh so we're uh we're dug in and uh we're we're settled into to a big project here with phase one being a fairly small mine at 220,000 a year uh to get us started and very doable uh in our scope. Uh we also have a project in Utah uh called Tintech which is now the number one jurisdiction in the world for mining investment. Uh we're about 40 kilome 40 miles south of Bingham. Uh so we think that that's going to be a pretty big story and obviously during the Trump era having an American asset. Uh not the worst thing. There are five previous gold mines that were in production there and 18 uh base metal CRD mines. So it's you know it's a it's a well-known quantity and it's got some pretty special part of the earth and uh we're pretty excited to see what happens there this year as we get to do some work on that as well. So there's a lot to unpack there, but why don't we do a deeper dive on Caribou? An optimized feasibility study was released last year. Can you just touch on some of the highlights of that study, Sean, including the annual production, the mine life, and also the all-in sustaining cost? >> Jimmy, this is a a starter package, as I said, only down to 350 m. It's about 4.4 4 km long or about 2 and 1/2 m long. Uh that we drilled off with 800,000 m or about 2 million ft of drilling. Um the production is scheduled for 220,000 ounces a year. Uh and starting out and over 10 year mine life 180 190,000 ounces a year. The mill that we're building right now is a 5,000 ton per day mill. Um so very much within our our doability. We actually own the milling equipment is sitting in Prince George in the yard. Um, and we started underground about a year and a half ago. So, we're about uh over 2 kilometers of underground development into it. And uh we've drilled the deposit down to about 1,000 meters. So, we're averaging about uh 1 and a half million ounces for every 100 meters we've gone down and overall resource. Uh so, that's it got us pretty excited. We have two drills turning on the deeper drilling. uh to see what we have underneath the existing deposit. It's an origenic system, so it goes pretty deep. Uh we've hit it as far as a thousand meters down or or 3,000 ft. Uh so we know it goes quite a bit further than what we've got detail drilling on now. And then uh you know with the underground development, we have a cap capex item of about 881 million Canadian or about 5 650 million US. Um we raised that money last year uh with a total of $653 million in financings uh including $450 million US uh from Apen of which we've drawn 100 million uh and then we raised another 200 million in US and in uh in straight equities. Uh and we've got a 70,000 meter drill program outside of the known ounces on the go now. So, um, there's a significant number of ounces underneath us, which is underneath the permit. So, the per the ounces that we've got are permanent to the depth. Uh, we've only drilled off the 2 million, but everything that we find within that permit area is also the benefactor of the existing mining permit. So, uh, these are pretty special ounces that we're going to be adding this year with more drilling at depth. Uh and then we've got a big project underway in the drill program about two kilome three kilometers away called Proer Pine um which has the ability to be even bigger than Caribou uh from the surface footprint from what we can see so far. Caribou is 4.4 4 km long or about 2 and a half miles by about uh 600 m wide or about uh you know 1,000 ft wide and that uh that's full of it's got these vein corridors in it. Um and we see that sort of appearing as the same structure on the next fold down. So we got the caribou over here. We got an anticline and then we got, you know, the proer pine coming up on the other side where we have this anticleal structure that's opened up like an accordion. Uh and we've got these vein corridor systems that are sitting in there. Uh it's a sediment hosted system in a sandstone environment. So it's quite quite unique for the Canadian side of things. Um the closest sort of analog to geologically to this thing genetically is something like a miral which is Usuzbekistan for 170 million ounces. Um it's not quite the copy of that but it's in the same environment. Uh so these things have the ability to be pretty interesting and pretty big. This is an area that had discovery starting in 1859 um and produced aluvial plaster mining and underground mining of about uh about 4.2 2 million ounces in total historically. Uh a little over 3.8 million ounces from the underground. Uh essentially it's been continuous mining here ever since the mid 1800s. Uh interesting if you're a history buff it's a good one to do some history on. The original town is called Barkerville. uh and it was discovered by Billy Barker and it was the biggest city north of San Francisco uh in the late 1800s uh and became the focus of all the all the alumal miners prior between what happened with the California 49er discovery in San Francisco uh and then Dawson took shape in 1903. Um but for 50 years, this was the king of the hill. Uh in terms of aluvial mining camps, the entire Fraser Frasier Canyon um gold dump, but uh Barkerville is at the headarters of all that. So it's it's been the source of a lot of gold in history and a very important place uh in mining history in North America. >> That's a great backstory. How many miners actually showed up to pan for gold during that time? They peaked at around 4,000 people and the time that was the largest city north of San Fran. Um we've heard rumors it was as much as 20,000 people. Um it also had a big Chinese contingent and its own the Chinese took over mining there in the late 1800s through the 1920s. Uh so there's quite a piece of history uh with Chinese Canadians and uh and their work there and they brought technology and they developed the area in a different way and they were able to do uh quite a bit of different work and open up some different areas and they carried on uh where the gold rush fell off. They had a basically a second boom there uh and they mined in there for the longest period of time. And Sean, one element that can si significantly impact uh projects capbacks or profitability is the infrastructure, whether or not it's close to major roads, highways, and also its ability to tap into cheap power. Can you just speak to that and how that relates to Caribou? >> Yeah, so uh a good thing those pioneers came in the mid 1800s. They built a road through the canyon there. Um, so it goes, you go to the town of Quinnel, which is a town of 28,000 people. Uh, you hang hang a right and u we're 45minut drive out of town uh on a paved road uh to to the town of Wells. Uh, and Wells is a town of about 220 people uh on pavement and the town was was a company town was built for the mine. And you also have the Barkerville Heritage Site which is about 11 km away. Uh quite a famous heritage site for anybody in Western Canada. Still has 140 period built buildings. And in the summer there's over 100 period dressed actors there. and they get between 60 and 80,000 uh people do the uh do do the the the pilgrimage um all the way up through to the the well to the Barker the Barkerville heritage site and uh and the Bower Lake area. Um so you know we're working hand in hand there. We've we're we also have a a couple things in the tourism business ourselves around the town of Wells. Um so it's quite an interesting place but it is on infrastructure. We have 22 megawatts of power from the substation in Quinnel at 6.6 cents Canadian, about 5 cents US a kilowatt. Uh, and we're pulling a 75 km long power line in there. So, we have green power from site C. Uh, and we're underground. So, this is one of the lower impact mines. Uh, and we've taken a lot of steps to make this a very low impact site uh by introducing the ororder. Uh, and also we produce a gravity concentrate and a flotation concentrate. So we don't have any cyanidation on site. So it's a pretty straightforward mine. Um we get about 40% of our recovery from gravity gold which is fairly unusual and the rest from flotation. So all in all um I think it's a pretty uh pretty interesting project first especially for $4,600 gold. Um you know we have the benefit of 100 100 year 150 years of work here uh that went on before us. Uh so we've we've done a compilation of all that historic work. All those old mines are there's about 140 old mines on the property. Um different addits and shafts and things and alubial mines. Uh and there's still over 100 active uh aluvial mines, plaster mines uh in the property area. We're 1,550 km about 500,000 acres uh of mineral claims there. Uh so we continue to work on it. We're continue to drill and we've only explored 7% of the no and minimalized trend. The the overall trend is about 50 mi or 83 km long. Uh the main trend being where we are at Caribou Gold, the Caribou Gold trend and the second parallel trend called Yanks Peak Trend. Uh which is about 30 kilometers, you know. So there's quite a bit going on and we're looking forward this summer to doing uh some more scout drilling on some of the secondary targets that we haven't gotten to yet. Um, this land package was originally owned by thousands of different claim owners. Uh, and it was consolidated. We bought it with Eric Sprat back in 2015. Uh, shout out to to Frank Callahan for having done a great job of getting that land consolidation in. Um, but we I've never seen anything quite like this other than, you know, the last time I had a brownfield site like this was Canadian Malard Arctic, which as we all know is worked out pretty well. We had it at 14 million ounces when we sold in 2014. Agniko has gone on to add another 20 million ounces there and I think it's, you know, it's the biggest portion of the at the agide between that and the detour. Those are the two biggest mines in Canada. So, you know, we we know what big looks like. We've been there. We've done that. And this one feels pretty good. >> I'm curious, how long did it take to consolidate all those stakes? >> I think they spent about 15 years at it. We bought into this project in 2015. Um, and I was partners with Eric Sprout on it in the beginning. Uh, so you know, Eric and I, he was a partner with me and Canadian Martic as well. Um, and as you know, Eric, he has the nose for these kind of things and he got he were good partners on it. And, uh, he he's he's a no longer a huge investor in the company, but he was a founding shareholder with me when we we got into this. Uh and now we're in the mine building phase 10 years later. Uh we got our we the got our permit in this November of 2024. Uh so a freshly printed permit and uh we started construction of our water treatment plant which was a key to accessing the the main exploitation target and uh we're on track to have a pretty big 20 uh 2026 and 2027 with looking for production at the end of 2027 early 2028. Um, and uh, yeah, it's exciting times. And uh, there's I say there's four drills on surface uh, starting January, probably the end of this month. They're all there, but they're not started yet. And then there's three drills underground, and there's a mining crew underground with one portal complete. Uh, we got two more portals to go in, but this is going to be a very big underground mine from what I can see right now. >> And Sean, the drilling you have going on underground, is that for infill drilling? Yes, that's infill drilling in the low heat zone. Uh we're doing some highdensity drilling on on shorter centers. The original resource was drilled off on 12 1/2 to 25 m centers. So, we've tightened it up to see what our what our grade reconciliation and mine design is going to look like uh with tighter drilling. So, we had 13,000 m scheduled to go into the underground right now uh in this one zone in Loi. And we'll be announcing the results for that continuously. We put out about three press releases on that drill program uh last year and we'll have some coming up here shortly. But uh you know that's as we cross over the loi into the cow mount into the main port of the deposit. Um you'll see more and more drill results from the underground uh as well as the surface drilling uh throughout the next 12 18 months. Um actually I don't think we'll ever actually stop drilling here. Sorry about that. Um, we've got some we did a rough calculation. If we if we drilled every target we have on the property, we would probably have about 400,000 mters in the first pass. Um, and then the second would be 5x that. So, uh, we've drilled about 850,000 m here so far and we've only drilled off 7% of the near surface resource. >> And Sean, you mentioned earlier that you have roughly 2 million ounces of reserves in the mine plant. And can you just speak to the conversion potential and how much more can you grow those 2 million ounces? >> Sure. So we've we've got the 2 million ounces drilled off uh on surface with the mine plan and developed on that. Um there's the resource there is the 1.61 million ounces and measured and indicated. We expect the conversion there to be somewhere around 60 to 70%. And then the inferred ounces is another 1.81 million ounces. uh we expect that conversion to be between 50 and 70%. So we got the upside here to add between 1.5 to 3 million ounces. I left the door a little bit wide there because obviously with this this gold price um I would error on the side of a lot of that will be in the money. Um when we drilled this the gold price was 1,400. Um you know last feasibility update we did was April and that was conservative at 2400. Uh, so today's 4,600 and just before we got on, I looked at the goal price we were sitting right on $4,600 goal and of course that changes everything and I think the trailing average for modeling now is going to be in the 31 to $3,400 an ounce range uh in Q1. Um, you know, so those are pretty big effects on this deposit. By by lowering the cutoff, we pick up significant amount more ounces if we can lower that cutoff down as we get further into this gold price. It's amazing how that gold price has changed just so much in the last few months. >> Absolutely. Yeah. We're pretty happy that we went through everything we've gone through in the last 10 years. We're in a pretty unique position. We're one of the few fully permitted uh and fully financed uh underground mine developments that's on the go. And this is a rice market to be building mines in. Um, you know, I think in uh if you look at fully permitted and and financed projects in Canada right now, we're in a pretty small group. I don't think you have to take your other glove off to count them. Um, it's a it's a pretty elite group to be in. So, I'd say I, you know, I say to shareholders, this is one of the companies that has run a bit. We're probably sitting about a $ 1.3 billion market cap today. But the peer group would be, you know, if you look out at something like a G mining where it was 18 months ago, you know, it's it's gone it's had a great run. Uh if you look at something West Dome, that would we if we were in production right now, we'd have a similar production of them, they're trading about 3.5 billion. >> And Sean, the Caribou deposit, as you mentioned, it remains open at depth and also a long strike. And you have a slide in your deck comparing Caribou to the Young Davidson and also the Leon. Maybe you can just speak to this and why do you think Caribou can has the potential to become a mining camp? >> So if you look at our strike length, it's about 4.4 kilometers. Young Davidson's an interesting mine. It's about has a headrade of about 2.2 g. Um and it produces around 175,000 ounces a year at 8,000 tons per day. Our headrade is 3.62 grams. Um, so we're more than a 50% uh grade above where Young Davidson is. Uh, we're online to produce about 220,000 ounces a year in the early years. Um, so that, you know, that's one mine. Um, at 200, you know, 200,000 ounces, we have more than double that 2 million ounces of reserve sitting in the resource. Um, so that's a conversion drilling from underground. So we know where the second mine is here. So the ability to double the mine really involves the conversion of what we call the blue ounces because the reserves are in our model as the pink ounces. So the 2 million ounces are pink when you look at this at website. And then the resource that we've defined um is in the blue and the all all we have to do to really have a second mine and double uh potential production is is hopefully convert those ounces and then increase the feed that would come from that development. uh it's you know all that's conditional on further further infill drilling and speculative in nature. So I am making a forward-looking statement on on that issue for clarity. Uh we have not achieved that yet and the infill drilling that we're going to do over the next 12 to 24 months uh offers the opportunity for that. So that's why I say the G mining one is not a bad analog to look at. They started out with one mining about 175,000 ounces a year in Brazil. They're building their second mine in Guyana. uh we have the second potentially a second project right in our permitted footprint. Uh so that's what we're working on right now. And they've gone from about at our stage they were about an $800 million market cap uh and they're now over over $9 billion market cap. So we think that's not a bad one for you to have a look at. It's on our it's on our in our our presentation. Uh you can see a slide that shows us G mining uh the 10 the $9 billion mark cap. Uh the West Dome story. Um it also shows you know the the the leader of the ball is Londine which for 400,000 ounces trades at $ 24 billion. So they trade at about $5 billion per 100,000 ounce of production. Uh West Dome trades at about $1.7 billion per 100,000 ounce of production. And then Alamos, which is a combined production of about u uh 650,000 ounces a year, which is they own the Young Davidson. Uh they have a market cap around 24 billion. Uh and they traded about $4 billion per 100,000 ounces. So right now, you know, we're we're trading uh roughly $500,000 uh per 100,000 ounces of production uh if assuming that we achieve production right now. So there's on all metrics that you would look at, it's a very good, it stacks up very good as a a comparable that has quite a bit of upside given people might feel like they missed the gold price, but um I think the development story still offer some upside uh on that and we're probably the leader of the pack uh in terms of developers that are that are going to be here in the near coming into production in the near term, you know. So it's a pretty interesting time for me. I've been through this cycle a few times as you know. Um so pretty excited about this one and you know everything's lined up for us now. We just got to keep doing what we've been doing and um the execution's there and the drill bits our friends. So Sean, you have often said in the past, build it and they will come. And you continue to derisk Caribou. At what point do you think somebody will come in and knock on your door and make a bid for the company? And I know I'm putting you on the spot here, but I'd love to hear your views. Um, I assume that we're in play every day of the week. Um, this is a fairly rare resource with a permit on it. Uh, when you net out our cash and you look at the enterprise value is extremely cheap. Uh, we'd be trading the the resource itself is, you know, it's 2 million of reserves, another 32 million of resource. Uh, and the enterprise value right now net of cash is about $700 million. Uh, so it's still very very cheap. Uh, and you know, I I wake up every day. I assume that I'm in play. Uh, and I bring that intensity to the work and anybody that works with me will know that, um, my fear is always that we will, uh, get taken out before we have a chance to do the drilling to finish off the resource like what happened at Canadian Arctic where we drilled off the main pit area and we' made the Odyssey discovery uh, and then we got put into play and we had to sell the company in 2014. But that Odyssey discovery is now 18 million ounces. Uh you know they've gone ahead and built a shaft there for 25,000 tons a day. U but if you look at collectively we had daylighted about 14 million ounces and they're coming up on 30 35 million ounces at that project and it's been a you know a big cornerstone asset for Agniko and I feel like we're in a similar situation here where the market hasn't really grasped how important this story is. Um, but we're we're in jeopardy every day. I mean, anybody that knows the Cisco team, we're well known for, you know, drill twice, mine once. And, uh, our internal program is called Suds. Uh, and it's over top of my door in the office, which stands for shut up and drill, stupid. Um, so that's that's what we're doing. And that is my fear is that uh, this company could well be in play before we get to finish the first pass drilling even. So >> well Sean, this has been a great overview and a great update on what's happening at O Cisco Development. As we wrap it up, maybe you can just summarize for investors what they can expect in terms of news flow here in the coming months. >> Yeah, continued milestoning on the evolution uh of the Caribou mine build. Uh so earthworks construction, all that sort of stuff on the go. Power lines going in this year, next year. Um the completion of the infill drilling uh from surface to document the at depth ounces below the main deposit is underway. Uh so that offer quite a quite a significant piece of ounces upside on the permitted area. So that permit is covers 4.4 km strike length. The overall strike length here is 83 km or about 50 mi. We're going to drill test some of those targets, but the bulk of our drilling on the outside of the the mail pyramid will be uh on the Proine area. We announced a 70,000 meter program for that and that dep uh we raised $32 million in charity flow through program last year. Uh so that is fully fund that drill program is fully funded with that. Uh and you know we've we've got pretty good go drill prices up there. Obviously, the Canadian dollars uh at a discount to the US dollar in a significant way right now. So, drill costs right now are running about $200 US a meter. Um so, pretty reasonable compared to what we're spending in the US for the same meter. And we see a significant amount of upside coming out uh of those deposits. And as we get further in our confidence build um the ATD depth, you know, development here is important. We wanted to get our per we focused on getting our first permit. We got our first permit in November of 2024. Um and then we'll be looking to extend uh those permits as the rest of the project comes together. The more infield drilling creates more and more opportunity for shareholders. And uh yeah, stay tuned and uh love to have anybody wants to come to site there. We have an RV park and everything up there. Uh it's a great place if you find yourself in Western Canada uh to bring the wife and kids uh or or the husband and kids, whichever way uh you want to do it. Um and uh we'd be happy to see you on site. Uh and it is a chance to visit a pretty cool mining project. It's in the mountains. We're up at 4,000 ft uh in the Caribou Mountains, which are quite spectacular. Um so it's it's a great place to look and I'm very proud to be doing this project at this time. Um, and you know, we got a great great team on the ground and uh great host community and our First Nations communities have been extraordinarily supportive on Taco Donnie and Williams Lake and uh we're working uh hand in hand with our other groups. Um so we're one of the groups I think that's most lined up for 2026. >> Well, that was a great update, Sean, and I want to thank you very much and I might take you up on that site visit. >> Absolutely. Bring a paddle. We got some great some great kayaking or canoeing if you want to at the Bin Lake system. >> Once again, thank you. >> All the best.
Osisko Development Update | Sean Roosen and Jimmy Connor
Summary
Transcript
Sean, thank you very much for joining us today. Oiscoco Development's primary asset is the Caribou Gold project. It's located in the province of British Columbia. And as a lot has happened at Caribou since the last time we spoke. But before we do the deep dive on the project, why don't we first discuss your vision and your strategy for the company? What are you trying to achieve at Caribou and how does Caribou compare to its comps? I >> think Cisco development is one of those rare assets that I've seen. You know, I've been on a few big ones in my career. um that can be scalable, can be a world-class asset. And you know, we're we're on the well along the way the path of the so-called Lan curve. We're coming out of the uh the value. We're in construction now. We're fully permitted. Um the first phase of this company is to build a 5,000 ton a day mine, which will allow us to produce around 220,000 ounces a year to start. Um, we announced a 70,000 m drill program last year. So, we're drilling on a few uh more of the extensions, but we have 2 million ounces of reserves, 1.61 million ounces of measure indicated, and another 1.81 million ounces of inferred. So, you know, we're not shy on ounces. We got lots of ounces, and that's only down to a depth of about 1,000 ft or 350 m. Um, so things are pretty exciting. Um, you know, we're fully funded. We raised almost a billion dollars Canadian last year. Um so we're, you know, last announced we were sitting north of $480 million of cash on the balance sheet. Um and we want to continue to grow this. We think this is a mining camp. Uh and that this first of many successes that this property will offer up. Uh it's 1550 kilmters. Uh so you know we're we have our next three to four mine uh potential discoveries on the trend. Uh so we're uh we're dug in and uh we're we're settled into to a big project here with phase one being a fairly small mine at 220,000 a year uh to get us started and very doable uh in our scope. Uh we also have a project in Utah uh called Tintech which is now the number one jurisdiction in the world for mining investment. Uh we're about 40 kilome 40 miles south of Bingham. Uh so we think that that's going to be a pretty big story and obviously during the Trump era having an American asset. Uh not the worst thing. There are five previous gold mines that were in production there and 18 uh base metal CRD mines. So it's you know it's a it's a well-known quantity and it's got some pretty special part of the earth and uh we're pretty excited to see what happens there this year as we get to do some work on that as well. So there's a lot to unpack there, but why don't we do a deeper dive on Caribou? An optimized feasibility study was released last year. Can you just touch on some of the highlights of that study, Sean, including the annual production, the mine life, and also the all-in sustaining cost? >> Jimmy, this is a a starter package, as I said, only down to 350 m. It's about 4.4 4 km long or about 2 and 1/2 m long. Uh that we drilled off with 800,000 m or about 2 million ft of drilling. Um the production is scheduled for 220,000 ounces a year. Uh and starting out and over 10 year mine life 180 190,000 ounces a year. The mill that we're building right now is a 5,000 ton per day mill. Um so very much within our our doability. We actually own the milling equipment is sitting in Prince George in the yard. Um, and we started underground about a year and a half ago. So, we're about uh over 2 kilometers of underground development into it. And uh we've drilled the deposit down to about 1,000 meters. So, we're averaging about uh 1 and a half million ounces for every 100 meters we've gone down and overall resource. Uh so, that's it got us pretty excited. We have two drills turning on the deeper drilling. uh to see what we have underneath the existing deposit. It's an origenic system, so it goes pretty deep. Uh we've hit it as far as a thousand meters down or or 3,000 ft. Uh so we know it goes quite a bit further than what we've got detail drilling on now. And then uh you know with the underground development, we have a cap capex item of about 881 million Canadian or about 5 650 million US. Um we raised that money last year uh with a total of $653 million in financings uh including $450 million US uh from Apen of which we've drawn 100 million uh and then we raised another 200 million in US and in uh in straight equities. Uh and we've got a 70,000 meter drill program outside of the known ounces on the go now. So, um, there's a significant number of ounces underneath us, which is underneath the permit. So, the per the ounces that we've got are permanent to the depth. Uh, we've only drilled off the 2 million, but everything that we find within that permit area is also the benefactor of the existing mining permit. So, uh, these are pretty special ounces that we're going to be adding this year with more drilling at depth. Uh and then we've got a big project underway in the drill program about two kilome three kilometers away called Proer Pine um which has the ability to be even bigger than Caribou uh from the surface footprint from what we can see so far. Caribou is 4.4 4 km long or about 2 and a half miles by about uh 600 m wide or about uh you know 1,000 ft wide and that uh that's full of it's got these vein corridors in it. Um and we see that sort of appearing as the same structure on the next fold down. So we got the caribou over here. We got an anticline and then we got, you know, the proer pine coming up on the other side where we have this anticleal structure that's opened up like an accordion. Uh and we've got these vein corridor systems that are sitting in there. Uh it's a sediment hosted system in a sandstone environment. So it's quite quite unique for the Canadian side of things. Um the closest sort of analog to geologically to this thing genetically is something like a miral which is Usuzbekistan for 170 million ounces. Um it's not quite the copy of that but it's in the same environment. Uh so these things have the ability to be pretty interesting and pretty big. This is an area that had discovery starting in 1859 um and produced aluvial plaster mining and underground mining of about uh about 4.2 2 million ounces in total historically. Uh a little over 3.8 million ounces from the underground. Uh essentially it's been continuous mining here ever since the mid 1800s. Uh interesting if you're a history buff it's a good one to do some history on. The original town is called Barkerville. uh and it was discovered by Billy Barker and it was the biggest city north of San Francisco uh in the late 1800s uh and became the focus of all the all the alumal miners prior between what happened with the California 49er discovery in San Francisco uh and then Dawson took shape in 1903. Um but for 50 years, this was the king of the hill. Uh in terms of aluvial mining camps, the entire Fraser Frasier Canyon um gold dump, but uh Barkerville is at the headarters of all that. So it's it's been the source of a lot of gold in history and a very important place uh in mining history in North America. >> That's a great backstory. How many miners actually showed up to pan for gold during that time? They peaked at around 4,000 people and the time that was the largest city north of San Fran. Um we've heard rumors it was as much as 20,000 people. Um it also had a big Chinese contingent and its own the Chinese took over mining there in the late 1800s through the 1920s. Uh so there's quite a piece of history uh with Chinese Canadians and uh and their work there and they brought technology and they developed the area in a different way and they were able to do uh quite a bit of different work and open up some different areas and they carried on uh where the gold rush fell off. They had a basically a second boom there uh and they mined in there for the longest period of time. And Sean, one element that can si significantly impact uh projects capbacks or profitability is the infrastructure, whether or not it's close to major roads, highways, and also its ability to tap into cheap power. Can you just speak to that and how that relates to Caribou? >> Yeah, so uh a good thing those pioneers came in the mid 1800s. They built a road through the canyon there. Um, so it goes, you go to the town of Quinnel, which is a town of 28,000 people. Uh, you hang hang a right and u we're 45minut drive out of town uh on a paved road uh to to the town of Wells. Uh, and Wells is a town of about 220 people uh on pavement and the town was was a company town was built for the mine. And you also have the Barkerville Heritage Site which is about 11 km away. Uh quite a famous heritage site for anybody in Western Canada. Still has 140 period built buildings. And in the summer there's over 100 period dressed actors there. and they get between 60 and 80,000 uh people do the uh do do the the the pilgrimage um all the way up through to the the well to the Barker the Barkerville heritage site and uh and the Bower Lake area. Um so you know we're working hand in hand there. We've we're we also have a a couple things in the tourism business ourselves around the town of Wells. Um so it's quite an interesting place but it is on infrastructure. We have 22 megawatts of power from the substation in Quinnel at 6.6 cents Canadian, about 5 cents US a kilowatt. Uh, and we're pulling a 75 km long power line in there. So, we have green power from site C. Uh, and we're underground. So, this is one of the lower impact mines. Uh, and we've taken a lot of steps to make this a very low impact site uh by introducing the ororder. Uh, and also we produce a gravity concentrate and a flotation concentrate. So we don't have any cyanidation on site. So it's a pretty straightforward mine. Um we get about 40% of our recovery from gravity gold which is fairly unusual and the rest from flotation. So all in all um I think it's a pretty uh pretty interesting project first especially for $4,600 gold. Um you know we have the benefit of 100 100 year 150 years of work here uh that went on before us. Uh so we've we've done a compilation of all that historic work. All those old mines are there's about 140 old mines on the property. Um different addits and shafts and things and alubial mines. Uh and there's still over 100 active uh aluvial mines, plaster mines uh in the property area. We're 1,550 km about 500,000 acres uh of mineral claims there. Uh so we continue to work on it. We're continue to drill and we've only explored 7% of the no and minimalized trend. The the overall trend is about 50 mi or 83 km long. Uh the main trend being where we are at Caribou Gold, the Caribou Gold trend and the second parallel trend called Yanks Peak Trend. Uh which is about 30 kilometers, you know. So there's quite a bit going on and we're looking forward this summer to doing uh some more scout drilling on some of the secondary targets that we haven't gotten to yet. Um, this land package was originally owned by thousands of different claim owners. Uh, and it was consolidated. We bought it with Eric Sprat back in 2015. Uh, shout out to to Frank Callahan for having done a great job of getting that land consolidation in. Um, but we I've never seen anything quite like this other than, you know, the last time I had a brownfield site like this was Canadian Malard Arctic, which as we all know is worked out pretty well. We had it at 14 million ounces when we sold in 2014. Agniko has gone on to add another 20 million ounces there and I think it's, you know, it's the biggest portion of the at the agide between that and the detour. Those are the two biggest mines in Canada. So, you know, we we know what big looks like. We've been there. We've done that. And this one feels pretty good. >> I'm curious, how long did it take to consolidate all those stakes? >> I think they spent about 15 years at it. We bought into this project in 2015. Um, and I was partners with Eric Sprout on it in the beginning. Uh, so you know, Eric and I, he was a partner with me and Canadian Martic as well. Um, and as you know, Eric, he has the nose for these kind of things and he got he were good partners on it. And, uh, he he's he's a no longer a huge investor in the company, but he was a founding shareholder with me when we we got into this. Uh and now we're in the mine building phase 10 years later. Uh we got our we the got our permit in this November of 2024. Uh so a freshly printed permit and uh we started construction of our water treatment plant which was a key to accessing the the main exploitation target and uh we're on track to have a pretty big 20 uh 2026 and 2027 with looking for production at the end of 2027 early 2028. Um, and uh, yeah, it's exciting times. And uh, there's I say there's four drills on surface uh, starting January, probably the end of this month. They're all there, but they're not started yet. And then there's three drills underground, and there's a mining crew underground with one portal complete. Uh, we got two more portals to go in, but this is going to be a very big underground mine from what I can see right now. >> And Sean, the drilling you have going on underground, is that for infill drilling? Yes, that's infill drilling in the low heat zone. Uh we're doing some highdensity drilling on on shorter centers. The original resource was drilled off on 12 1/2 to 25 m centers. So, we've tightened it up to see what our what our grade reconciliation and mine design is going to look like uh with tighter drilling. So, we had 13,000 m scheduled to go into the underground right now uh in this one zone in Loi. And we'll be announcing the results for that continuously. We put out about three press releases on that drill program uh last year and we'll have some coming up here shortly. But uh you know that's as we cross over the loi into the cow mount into the main port of the deposit. Um you'll see more and more drill results from the underground uh as well as the surface drilling uh throughout the next 12 18 months. Um actually I don't think we'll ever actually stop drilling here. Sorry about that. Um, we've got some we did a rough calculation. If we if we drilled every target we have on the property, we would probably have about 400,000 mters in the first pass. Um, and then the second would be 5x that. So, uh, we've drilled about 850,000 m here so far and we've only drilled off 7% of the near surface resource. >> And Sean, you mentioned earlier that you have roughly 2 million ounces of reserves in the mine plant. And can you just speak to the conversion potential and how much more can you grow those 2 million ounces? >> Sure. So we've we've got the 2 million ounces drilled off uh on surface with the mine plan and developed on that. Um there's the resource there is the 1.61 million ounces and measured and indicated. We expect the conversion there to be somewhere around 60 to 70%. And then the inferred ounces is another 1.81 million ounces. uh we expect that conversion to be between 50 and 70%. So we got the upside here to add between 1.5 to 3 million ounces. I left the door a little bit wide there because obviously with this this gold price um I would error on the side of a lot of that will be in the money. Um when we drilled this the gold price was 1,400. Um you know last feasibility update we did was April and that was conservative at 2400. Uh, so today's 4,600 and just before we got on, I looked at the goal price we were sitting right on $4,600 goal and of course that changes everything and I think the trailing average for modeling now is going to be in the 31 to $3,400 an ounce range uh in Q1. Um, you know, so those are pretty big effects on this deposit. By by lowering the cutoff, we pick up significant amount more ounces if we can lower that cutoff down as we get further into this gold price. It's amazing how that gold price has changed just so much in the last few months. >> Absolutely. Yeah. We're pretty happy that we went through everything we've gone through in the last 10 years. We're in a pretty unique position. We're one of the few fully permitted uh and fully financed uh underground mine developments that's on the go. And this is a rice market to be building mines in. Um, you know, I think in uh if you look at fully permitted and and financed projects in Canada right now, we're in a pretty small group. I don't think you have to take your other glove off to count them. Um, it's a it's a pretty elite group to be in. So, I'd say I, you know, I say to shareholders, this is one of the companies that has run a bit. We're probably sitting about a $ 1.3 billion market cap today. But the peer group would be, you know, if you look out at something like a G mining where it was 18 months ago, you know, it's it's gone it's had a great run. Uh if you look at something West Dome, that would we if we were in production right now, we'd have a similar production of them, they're trading about 3.5 billion. >> And Sean, the Caribou deposit, as you mentioned, it remains open at depth and also a long strike. And you have a slide in your deck comparing Caribou to the Young Davidson and also the Leon. Maybe you can just speak to this and why do you think Caribou can has the potential to become a mining camp? >> So if you look at our strike length, it's about 4.4 kilometers. Young Davidson's an interesting mine. It's about has a headrade of about 2.2 g. Um and it produces around 175,000 ounces a year at 8,000 tons per day. Our headrade is 3.62 grams. Um, so we're more than a 50% uh grade above where Young Davidson is. Uh, we're online to produce about 220,000 ounces a year in the early years. Um, so that, you know, that's one mine. Um, at 200, you know, 200,000 ounces, we have more than double that 2 million ounces of reserve sitting in the resource. Um, so that's a conversion drilling from underground. So we know where the second mine is here. So the ability to double the mine really involves the conversion of what we call the blue ounces because the reserves are in our model as the pink ounces. So the 2 million ounces are pink when you look at this at website. And then the resource that we've defined um is in the blue and the all all we have to do to really have a second mine and double uh potential production is is hopefully convert those ounces and then increase the feed that would come from that development. uh it's you know all that's conditional on further further infill drilling and speculative in nature. So I am making a forward-looking statement on on that issue for clarity. Uh we have not achieved that yet and the infill drilling that we're going to do over the next 12 to 24 months uh offers the opportunity for that. So that's why I say the G mining one is not a bad analog to look at. They started out with one mining about 175,000 ounces a year in Brazil. They're building their second mine in Guyana. uh we have the second potentially a second project right in our permitted footprint. Uh so that's what we're working on right now. And they've gone from about at our stage they were about an $800 million market cap uh and they're now over over $9 billion market cap. So we think that's not a bad one for you to have a look at. It's on our it's on our in our our presentation. Uh you can see a slide that shows us G mining uh the 10 the $9 billion mark cap. Uh the West Dome story. Um it also shows you know the the the leader of the ball is Londine which for 400,000 ounces trades at $ 24 billion. So they trade at about $5 billion per 100,000 ounce of production. Uh West Dome trades at about $1.7 billion per 100,000 ounce of production. And then Alamos, which is a combined production of about u uh 650,000 ounces a year, which is they own the Young Davidson. Uh they have a market cap around 24 billion. Uh and they traded about $4 billion per 100,000 ounces. So right now, you know, we're we're trading uh roughly $500,000 uh per 100,000 ounces of production uh if assuming that we achieve production right now. So there's on all metrics that you would look at, it's a very good, it stacks up very good as a a comparable that has quite a bit of upside given people might feel like they missed the gold price, but um I think the development story still offer some upside uh on that and we're probably the leader of the pack uh in terms of developers that are that are going to be here in the near coming into production in the near term, you know. So it's a pretty interesting time for me. I've been through this cycle a few times as you know. Um so pretty excited about this one and you know everything's lined up for us now. We just got to keep doing what we've been doing and um the execution's there and the drill bits our friends. So Sean, you have often said in the past, build it and they will come. And you continue to derisk Caribou. At what point do you think somebody will come in and knock on your door and make a bid for the company? And I know I'm putting you on the spot here, but I'd love to hear your views. Um, I assume that we're in play every day of the week. Um, this is a fairly rare resource with a permit on it. Uh, when you net out our cash and you look at the enterprise value is extremely cheap. Uh, we'd be trading the the resource itself is, you know, it's 2 million of reserves, another 32 million of resource. Uh, and the enterprise value right now net of cash is about $700 million. Uh, so it's still very very cheap. Uh, and you know, I I wake up every day. I assume that I'm in play. Uh, and I bring that intensity to the work and anybody that works with me will know that, um, my fear is always that we will, uh, get taken out before we have a chance to do the drilling to finish off the resource like what happened at Canadian Arctic where we drilled off the main pit area and we' made the Odyssey discovery uh, and then we got put into play and we had to sell the company in 2014. But that Odyssey discovery is now 18 million ounces. Uh you know they've gone ahead and built a shaft there for 25,000 tons a day. U but if you look at collectively we had daylighted about 14 million ounces and they're coming up on 30 35 million ounces at that project and it's been a you know a big cornerstone asset for Agniko and I feel like we're in a similar situation here where the market hasn't really grasped how important this story is. Um, but we're we're in jeopardy every day. I mean, anybody that knows the Cisco team, we're well known for, you know, drill twice, mine once. And, uh, our internal program is called Suds. Uh, and it's over top of my door in the office, which stands for shut up and drill, stupid. Um, so that's that's what we're doing. And that is my fear is that uh, this company could well be in play before we get to finish the first pass drilling even. So >> well Sean, this has been a great overview and a great update on what's happening at O Cisco Development. As we wrap it up, maybe you can just summarize for investors what they can expect in terms of news flow here in the coming months. >> Yeah, continued milestoning on the evolution uh of the Caribou mine build. Uh so earthworks construction, all that sort of stuff on the go. Power lines going in this year, next year. Um the completion of the infill drilling uh from surface to document the at depth ounces below the main deposit is underway. Uh so that offer quite a quite a significant piece of ounces upside on the permitted area. So that permit is covers 4.4 km strike length. The overall strike length here is 83 km or about 50 mi. We're going to drill test some of those targets, but the bulk of our drilling on the outside of the the mail pyramid will be uh on the Proine area. We announced a 70,000 meter program for that and that dep uh we raised $32 million in charity flow through program last year. Uh so that is fully fund that drill program is fully funded with that. Uh and you know we've we've got pretty good go drill prices up there. Obviously, the Canadian dollars uh at a discount to the US dollar in a significant way right now. So, drill costs right now are running about $200 US a meter. Um so, pretty reasonable compared to what we're spending in the US for the same meter. And we see a significant amount of upside coming out uh of those deposits. And as we get further in our confidence build um the ATD depth, you know, development here is important. We wanted to get our per we focused on getting our first permit. We got our first permit in November of 2024. Um and then we'll be looking to extend uh those permits as the rest of the project comes together. The more infield drilling creates more and more opportunity for shareholders. And uh yeah, stay tuned and uh love to have anybody wants to come to site there. We have an RV park and everything up there. Uh it's a great place if you find yourself in Western Canada uh to bring the wife and kids uh or or the husband and kids, whichever way uh you want to do it. Um and uh we'd be happy to see you on site. Uh and it is a chance to visit a pretty cool mining project. It's in the mountains. We're up at 4,000 ft uh in the Caribou Mountains, which are quite spectacular. Um so it's it's a great place to look and I'm very proud to be doing this project at this time. Um, and you know, we got a great great team on the ground and uh great host community and our First Nations communities have been extraordinarily supportive on Taco Donnie and Williams Lake and uh we're working uh hand in hand with our other groups. Um so we're one of the groups I think that's most lined up for 2026. >> Well, that was a great update, Sean, and I want to thank you very much and I might take you up on that site visit. >> Absolutely. Bring a paddle. We got some great some great kayaking or canoeing if you want to at the Bin Lake system. >> Once again, thank you. >> All the best.