UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

AMENDMENT NO. 1
TO

FORM 40-F

 Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934

or

 Annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended____________

Commission File Number____________


OSISKO DEVELOPMENT CORP.

(Exact name of registrant as specified in its charter)



Canada

1040

N/A

(Province or Other Jurisdiction of

Incorporation or Organization)

(Primary Standard Industrial

Classification Code)

(I.R.S. Employer

Identification No.)

1100 Avenue des Canadiens-de-Montréal, Suite 300

Montréal, Québec

H3B 2S2

416 464-4067

(Address and telephone number of registrant's principal executive offices)

CT Corporation System

28 Liberty Street

New York, New York 10005

(212) 894-8940

(Name, address (including zip code) and telephone number (including area code)

of agent for service in the United States)

Securities to be registered pursuant to Section 12(b) of the Act:

Title of Each Class:

Trading Symbol

Name of Each Exchange On Which Registered:

Common Shares, no par value

ODV

New York Stock Exchange



Securities registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

For annual reports, indicate by check mark the information filed with this form:

☐ Annual Information Form

☐ Audited Annual Financial Statements

Indicate the number of outstanding shares of each of the registrant's classes of capital or common stock as of the close of the period covered by the annual report: N/A

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.

☐ Yes ☒ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☐ Yes ☐ No

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company ☒

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐


EXPLANATORY NOTE

This Amendment No. 1 amends the Registration Statement on Form 40-F of Osisko Development Corp., which was filed with the United States Securities and Exchange Commission on April 29, 2022 (the "Original Registration Statement" and, including any amendments thereto, the "Registration Statement"). This Amendment No. 1 is being filed solely to include certain additional exhibits with the Registration Statement that have become available since the filing of the Original Registration Statement and that the Registrant has made public pursuant to Canadian securities laws applicable to the Registrant, including a restated version of its Annual Information Form for the year ended December 31, 2021, filed as Exhibit 99.1 hereto, and a restated version of its Management's Discussion and Analysis for the year ended December 31, 2021, filed as Exhibit 99.2 hereto, each of which restates and supersedes in its entirety, Exhibit 99.1 and Exhibit 99.2, respectively, which were filed with the Original Registration Statement.

Other than as expressly set forth herein, this Amendment No. 1 does not, and does not purport to, amend, update, or restate the information in any item of the Original Registration Statement or reflect any events occurring after the filing of the Original Registration Statement. Accordingly, this Amendment No. 1 should be read in conjunction with the Original Registration Statement.

EXHIBIT INDEX

The following documents are being filed with the Commission as exhibits to this Amendment No. 1 to the registration statement on Form 40-F.

Exhibits Documents
   
99.1** Restated Annual Information Form for the year ended December 31, 2021
   
99.2** Restated Management's Discussion and Analysis for the year ended December 31, 2021
   
99.3* Audited Consolidated Financial Statements for the years ended December 31, 2021 and 2020
   
99.4* Management's Discussion and Analysis for the three and nine months ended September 30, 2021
   
99.5* Unaudited Condensed Interim Consolidated Financial Statements for the three and nine months ended September 30, 2021
   
99.6* Management's Discussion and Analysis for the three and six months ended June 30, 2021
   
99.7* Unaudited Condensed Interim Consolidated Financial Statements for the three and six months ended June 30, 2021
   
99.8* Management's Discussion and Analysis for the three months ended March 31, 2021
   
99.9* Unaudited Condensed Interim Consolidated Financial Statements for the three months ended March 31, 2021
   
99.10* Management's Discussion and Analysis for the year ended December 31, 2020
   
99.11* Audited Consolidated Financial Statements for the years ended December 31, 2020 and 2019
   
99.12* Annual statement of payments dated August 13, 2021
   
99.13* Annual statement of payments (amended) dated June 4, 2021
   
99.14* Preliminary Short Form Prospectus of Osisko Development Corp. dated April 22, 2022
   
99.15* Warrant Indenture between Osisko Development Corp. and TSX Trust Company dated March 2, 2022
   
99.16* Underwriting Agreement among Osisko Development Corp. and the Underwriters named therein dated March 2, 2022
   
99.17* Subscription Receipt Agreement among Osisko Development Corp., TSX Trust Company and Eight Capital dated March 2, 2022
   



99.18* Supplemental Warrant Indenture between Osisko Development Corp. and TSX Trust Company dated March 29, 2022
   
99.19* Amending Agreement to the Subscription Receipt Agreement between Osisko Development Corp. and TSX Trust Company dated March 29, 2022
   
99.20* Material change report dated April 8, 2022
   
99.21* Management information circular dated March 24, 2022 with respect to the special meeting of Osisko Development Corp. shareholders held on April 26, 2022
   
99.22* Management information circular dated March 29, 2021 with respect to the annual meeting of Osisko Development Corp. shareholders held on May 12, 2021
   
99.23* Material change report dated March 14, 2022
   
99.24* Material change report dated February 3, 2022
   
99.25* Share Purchase Agreement among Osisko Development Corp., Osisko Utah LLC, Ruby Hollow LLC and Emerald Hollow LLC dated January 24, 2022
   
99.26* Membership Interest Purchase Agreement among Osisko Development Corp., Osisko Utah LLC and IG Tintic LLC dated January 24, 2022
   
99.27* Supplemental Warrant Indenture between Osisko Development Corp. and TSX Trust Company dated September 30, 2021
   
99.28* Underwriting Agreement among Osisko Development Corp. and the Underwriters named therein dated March 18, 2021
   
99.29* Warrant Indenture between Osisko Development Corp. and TSX Trust Company dated February 5, 2021
   
99.30* Warrant Indenture between Osisko Development Corp. and TSX Trust Company dated January 8, 2021
   
99.31* Supplemental Warrant Indenture between Osisko Development Corp. and TSX Trust Company dated December 30, 2020
   
99.32* Underwriting Agreement among Osisko Development Corp. and the Underwriters named therein dated December 30, 2020
   
99.33* Warrant Indenture between Osisko Development Corp. and TSX Trust Company dated December 30, 2020
   
99.34* Material change report dated January 11, 2021
   
99.35* Annual statement of payments dated May 28, 2020
   
99.36** Consent of PricewaterhouseCoopers LLP
   
99.37* Consent of Christine Beausoleil, P.Geo.
   
99.38** Consent of Carl Pelletier, P.Geo.
   
99.39* Consent of Leonardo de Souza, MAusIMM (CP)
   
99.40* Consent of Maggie Layman, P.Geo.

 
99.41** Certificate of Amendment
   
99.42** Management's Discussion and Analysis for the three months ended March 31, 2022
   
99.43** Unaudited Condensed Interim Consolidated Financial Statements for the three months ended March 31, 2022

 


99.44** Press Release dated May 23, 2022
   
99.45** NI 43-101 Technical Report on the Preliminary Economic Assessment for the Cariboo Gold Project, District of Wells, British Columbia, Canada
   
99.46** Consent of Aytaç Göksu
   
99.47** Consent of John Cunning
   
99.48** Consent of Kristin Salzsauler
   
99.49** Consent of Thomas Rutkowski
   
99.50** Consent of Colin Hardie
   
99.51** Consent of Mathieu Belisle
   
99.52** Consent of Vincent Nadeau-Benoit
   
99.53** Consent of Eric Lecomte
   
99.54** Consent of Tim Coleman
   
99.55** Consent of Paul Gauthier
   
99.56** Consent of Eric Poirier
   
99.57** Consent of David Willms
   
99.58** Consent of Michelle Liew
   
99.59** Consent of Katherine Mueller
   
99.60** Press Release dated May 24, 2022

 

________
* Previously filed.
** Filed herewith.


 

SIGNATURES

Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized.

 

OSISKO DEVELOPMENT CORP.

 

 

 

 

 

/s/ Alexander Dann

 

Name: Alexander Dann

 

Title: Chief Financial Officer and VP Finance

Date: May 25, 2022



Osisko Development Corp.: Exhibit 99.1 - Filed by newsfilecorp.com

Explanatory Note Regarding the Restatement of Previously Issued Annual Information Form

Osisko Development Corp. has restated its annual information form for 2021 to, as applicable, withdraw, or properly qualify certain technical information included in the original filing.  The information herein continues to be as of April 20, 2022, with the exception of amendments to technical disclosure which have been made current to May 19, 2022.

OSISKO DEVELOPMENT CORP.


RESTATED ANNUAL INFORMATION FORM

 

FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2021

 

 

 

DATED AS OF MAY 19, 2022


TABLE OF CONTENTS

GLOSSARY OF TERMS 3
   
GENERAL MATTERS 9
   
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION 9
   
PREPARATION OF FINANCIAL INFORMATION 10
   
CAUTIONARY NOTE TO U.S. INVESTORS REGARDING  THE USE OF MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES 10
   
EXCHANGE RATE DATA 11
   
COMMODITY PRICE INFORMATION 11
   
CORPORATE STRUCTURE 12
   
GENERAL DEVELOPMENT OF BUSINESS 12
   
DESCRIPTION OF BUSINESS 18
   
DIVIDENDS 37
   
DESCRIPTION OF CAPITAL STRUCTURE 37
   
MARKET FOR SECURITIES 38
   
ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTION ON TRANSFER 40
   
DIRECTORS AND OFFICERS 40
   
PROMOTERS 48
   
LEGAL PROCEEDINGS AND REGULATORY ACTIONS 48
   
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS 48
   
TRANSFER AGENTS AND REGISTRARS 48
   
MATERIAL CONTRACTS 49
   
INTERESTS OF EXPERTS 49
   
ADDITIONAL INFORMATION 50
   
AUDIT AND RISK COMMITTEE 50
   
AUDIT AND RISK COMMITTEE CHARTER 52
   
SCHEDULE A - MATERIAL MINERAL PROJECT - CARIBOO PROJECT 58


GLOSSARY OF TERMS

In this Annual Information Form, the following capitalized words and terms shall have the following meanings:

"affiliate" means, with respect to any person, any other person that controls or is controlled by or is under common control with the referent person.

"Agreement in Principle" has the meaning ascribed to such term under "Description of Business - General - Description of Equity Investments".

"AIF" means this annual information form.

"Amalco" means the corporation that was formed upon the amalgamation of Barolo Subco and Osisko Subco.

"Amalgamation" means the amalgamation of Barolo Subco and Osisko Subco pursuant to the terms of the Amalgamation Agreement.

"Amalgamation Agreement" means the amalgamation agreement dated October 23, 2020 among Barolo, Barolo Subco and Osisko Subco.

"associate" has the meaning ascribed to such term in the Securities Act (Québec).

"Authorization" means any authorization, order, permit, approval, grant, licence, registration, consent, right, notification, condition, franchise, privilege, certificate, judgment, writ, injunction, award, determination, direction, decision, decree, by‐law, rule or regulation, whether or not having the force of law.

"Barolo Subco" means 1269598 B.C. Ltd.

"Barkerville" means Barkerville Gold Mines Ltd.

"BBA" means BBA Inc.

"BCBCA" means the Business Corporations Act (British Columbia).

"Board" means the board of directors of Osisko Development, as the same is constituted from time to time.

"Bonanza Ledge II Project" means the mineral property located within the Cariboo Project (in the Cariboo Gold District of British Columbia).

"Brokered Offered Securities" has the meaning ascribed under the heading "General Development of Business - Three Year History - Events Subsequent to December 31, 2021 Fiscal Year End - Brokered and Non-Brokered Private Placement".

"Brokered Offering" has the meaning ascribed under the heading "General Development Business - Three Year History - Events Subsequent to December 31, 2021 Fiscal Year End - Brokered and Non-Brokered Brokered and Non-Brokered Private Placement".

"Brokered Release Condition" has the meaning ascribed under the heading "General Development Business - Three Year History - Events Subsequent to December 31, 2021 Fiscal Year End - Brokered and Non-Brokered Private Placement".

"Brokered Subscription Receipts" has the meaning ascribed under the heading "General Development of Business - Three Year History - Events Subsequent to December 31, 2021 Fiscal Year End - Brokered and Non-Brokered Private Placement".


"Brokered Units" has the meaning ascribed under the heading "General Development of Business - Three Year History - Events Subsequent to December 31, 2021 Fiscal Year End - Brokered and Non-Brokered Private Placement".

"Canadian Securities Laws" means applicable Canadian provincial and territorial Securities Laws.

"Cariboo Project" means the mineral property located in the historical Wells-Barkerville mining camp (also known as the Cariboo Gold District) of British Columbia and extending for approximately 77 km from northwest to southeast.

"Cariboo Technical Report" means the technical report titled "NI 43-101 Technical Report and Mineral Resource Estimate for the Cariboo Project, British Columbia, Canada" dated October 5, 2020, with an effective date of October 5, 2020.

"CBCA" means the Canada Business Corporations Act.

"Chief Merger" has the meaning ascribed to such term under "Description of Business - General - Tintic Project".

"CIM Definition Standards" means CIM Definition Standards for mineral resources and mineral reserves.

"Common Share" means a common share in the share capital of the Corporation.

"Contributed Osisko Assets" means, collectively, the Contributed Osisko Properties and the Contributed Osisko Marketable Securities transferred by Osisko Gold Royalties to the Corporation in connection with the Reverse Takeover Transaction.

"Contributed Osisko Marketable Securities" means a portfolio of publicly-listed equity positions that was held by Osisko Gold Royalties which were transferred by Osisko Gold Royalties to the Corporation in connection with the Reverse Takeover Transaction.

"Contributed Osisko Properties" means the interest of Osisko Gold Royalties prior to the Reverse Takeover Transaction in (a) the Cariboo Project, (b) the San Antonio Gold Project, (c) the Bonanza Ledge II Project, (d) the Coulon Project, (e) the Guerrero Properties, and (f) the James Bay Properties.

"Consolidation" means the consolidation of the common shares of the Corporation on the basis of one (1) post-consolidated common share for every three (3) pre-consolidated common shares which took effect on May 4, 2022.

"Coulon Project" means the Coulon zinc project, a mineral exploration property located in northern Québec.

"Cow-Island-Barkerville Mountain Corridor" means the corridor comprised of Cow Mountain, Island Mountain, and Barkerville Mountain, the Cariboo Project's three key mineral deposits.

"Datamine" means Datamine Studio RM 1.5.62.0.

"DSUs" means the Deferred Share Units granted under the DSU Plan.

"DSU Plan" means the Deferred Share Unit Plan of the Corporation.

"ESP Plan" means the Employee Share Purchase Plan of the Corporation.

"Falco" means Falco Resources Ltd.

"Forward-Looking Information" has the meaning ascribed to such term in Canadian Securities Laws.


"Governmental Entity" means: (a) any supranational body or organization, nation, government, state, province, country, territory, municipality, quasi-government, administrative, judicial or regulatory authority, agency, board, body, bureau, commission, instrumentality, court or tribunal or any political subdivision thereof, or any central bank (or similar monetary or regulatory authority) thereof, any taxing authority, any ministry or department or agency of any of the foregoing; (b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any court; and (iii) any corporation or other entity owned or controlled, through stock or capital ownership or otherwise, by any of such entities or other bodies.

"Guerrero Properties" means the mineral exploration properties consisting of approximately 900,000 hectares located in the Guerrero Gold Belt in Guerrero, Mexico.

"IFRS" means International Financial Reporting Standards adopted by the International Accounting Standards Board, as updated and amended from time to time.

"InnovExplo" means InnovExplo Inc.

"James Bay Properties" means a group of 26 mineral exploration properties located in the James Bay area of Québec (excluding the Coulon Project).

"Mosquito Creek Gold" means Mosquito Creek Gold Mining Company Ltd.

"MRE" means Mineral Resource Estimate.

"NI 43-101" means National Instrument 43-101 - Standards of Disclosure for Mineral Projects (Regulation 43-101 respecting Standards of Disclosure for Mineral Projects in the Province of Québec).

"NI 51-102" means National Instrument 51-102 - Continuous Disclosure Obligations (Regulation 51-102 respecting Continuous Disclosure Obligations in the Province of Québec).


"Non-Brokered Offering" has the meaning ascribed under the heading "General Development of Business - Three Year History - Events Subsequent to December 31, 2021 Fiscal Year End - Brokered and Non-Brokered Private Placement".

"Non-Brokered Release Conditions" has the meaning ascribed under the heading "General Development of Business - Three Year History - Events Subsequent to December 31, 2021 Fiscal Year End - Brokered and Non-Brokered Private Placement".

"Non-Brokered Subscription Receipts" has the meaning ascribed under the heading "General Development of Business - Three Year History - Events Subsequent to December 31, 2021 Fiscal Year End - Brokered and Non-Brokered Private Placement".

"Non-Brokered Units" has the meaning ascribed under the heading "General Development of Business - Three Year History - Events Subsequent to December 31, 2021 Fiscal Year End - Brokered and Non-Brokered Private Placement".

"ODV Transaction" has the meaning ascribed under the heading "General Development of Business - Launch of Osisko Development Corp.".

"Option Plan" means to stock option plan of the Corporation.

"Options" means the outstanding options to purchase Common Shares granted under the Option Plan.

"Osisko Contribution Agreement" means the agreement dated November 23, 2020 between Osisko Gold Royalties and Osisko Subco pursuant to which the Contributed Osisko Assets were transferred by Osisko Gold Royalties to Osisko Subco.


"Osisko Development" or the "Corporation" means Osisko Development Corp./ Osisko Development Corp.

"Osisko Development Investor Rights Agreement" means the investors rights agreement dated November 27, 2020 between Osisko Development and Osisko Gold Royalties.


"Osisko Gold Royalties" means Osisko Gold Royalties Ltd.

"Osisko Mining" means Osisko Mining Inc.

"Osisko Retained Royalty Interests" means the interests in the Contributed Osisko Properties that Osisko Gold Royalties or its affiliates retained upon the completion of the Reverse Takeover Transaction, including (a) a 5% NSR royalty on the Cariboo Project and Bonanza Ledge II Project; (b) a 15% gold and silver stream in the San Antonio Gold Project; and (c) a 3% NSR royalty on the Coulon Project, the James Bay Properties and the Guerrero Properties.


"Osisko Subco" means Osisko Development Holdings Inc.

"Person" means an individual, partnership, association, body corporate, joint venture, business organization, trustee, executor, administrative legal representative, Governmental Entity or any other entity, whether or not having legal status.

"Promoter" has the meaning ascribed thereto in the Securities Act (Ontario).

"qualified person" has the meaning ascribed to such term in 43-101.

"Reverse Takeover Transaction" has the meaning ascribed to such term under "General Development of Business - Three Year History - Fiscal Year Ended December 31, 2020".

"RSUs" means the Restricted Share Units granted under the RSU Plan.

"RSU Plan" means the Restricted Share Unit Plan of the Corporation.

"San Antonio Gold Project" means the mineral property located in Sonora, Mexico.

"Securities Laws" means Canadian Securities Laws and U.S. Securities Laws and all other applicable Securities Laws and applicable stock exchange rules and listing standards of the stock exchanges.

"SEDAR" means the System for Electronic Document Analysis and Retrieval.

"Shareholders" means the holders of Common Shares.

"SR Offering" has the meaning ascribed to such term under "General Development of Business - Fiscal Year ended December 31, 2020 - Launch of Osisko Development Corp.".

"Stream" has the meaning ascribed to such term under "Description of Business - General - Description of Contributed Osisko Properties".

"Tail Stream" has the meaning ascribed to such term under "Description of Business - General - Tintic Project".

"Threshold Stream" has the meaning ascribed to such term under "Description of Business - General - Tintin Project".

"Tintic" means Tintic Consolidated Metals LLC.


"Tintic Agreements" has the meaning ascribed to such term under "General Development of Business - Three Year History - Events Subsequent to December 31, 2021 Fiscal Year End".

"TSX-V" means the TSX Venture Exchange.

"Warrants" means Common Share purchase warrants of the Corporation.

"Warrant Agent" means TSX Trust Company.

"1999 Estimate" means the block model calculation resulting from the infill drilling completed in 1997-1999 by S. Dyke (P. Geo) of Geological Systems Ltd.

"2015 Estimate" means the MRE for Cow Mountain by Dzick, 2015.

"2017 MRE" means the 2017 mineral resource estimate prepared by InnovExplo for the Barkerville Mountain deposit.

"2018 MRE" means the maiden resource estimate for the Cow Mountain and Island Mountain deposits prepared by InnovExplo.

"2019 Program" means Barkerville's 2019 diamond drilling program which ran from January to December 2019.

"2020 MRE" means the 2020 Mineral Resource Estimate for the Cariboo Project, encompassing the deposits of Cow Mountain, Island Mountain, and Barkerville Mountain.

"2020 Program" means Barkerville's 2020 drilling program focused primarily on the Cow-Island-Barkerville Corridor.

"2020 Underwriters" has the meaning ascribed to such term under "General Development of Business - Three Year History - Fiscal Year ended December 31, 2021 - Launch of Osisko Development Corp.".


Abbreviations and Conversions

"Ag" is the chemical symbol for silver.

"As" is the chemical symbol for arsenic.

"Au" is the chemical symbol for gold.

"CIM" means the Canadian Institute of Mining, Metallurgy and Petroleum

"ft" means feet.

"G&A" means general and administration expenses.

"g/t" means gram(s) per metric tonne.

"g" means gram(s).

"ha" means hectare(s).

"ISO" means International Organization for Standardization.

"IT" means information technology.

"kg" means kilogram(s).

"km" means kilometre(s).

"lbs" means pounds.

"LOM" means life of mine.

"m" means metre(s).

"m3" means cubic metre(s).

"masl" means metre(s) above sea level.

"mm" means millimetre(s).

"Mt" means million metric tonne(s).

"Moz" means million ounce(s).

"MVA" means mega volt ampere(s).

"MW" means megawatt(s).

"NSR" means net smelter return.

"oz" means ounce(s).

"QA/QC" means Quality Assurance / Quality Control .

"ROM" means run of mine.

"st" means short ton(s).

"t" means metric tonne(s).

"°" means degree(s).

">" , "<" means greater than, less than.

"%" means percent(age).


GENERAL MATTERS

Note

On November 23, 2020, in connection with a Reverse Takeover Transaction with Osisko Gold Royalties, as more fully described in this Annual Information Form, the Corporation changed its name from "Barolo Ventures Corp." to "Osisko Development Corp.". Consequently, as if and when the context so requires, certain references to "Barolo" or "Barolo Ventures Corp." in this Annual Information Form should be adapted accordingly and refer to the Corporation prior to such name change.

Unless otherwise indicated, the information contained in this restated AIF is given as of December 31, 2021, with specific updates post-financial year end where specifically indicated. More current information may be available on the Corporation's website at www.osiskodev.com or on SEDAR at www.sedar.com.

All capitalized terms used in this AIF and not defined herein have the meaning ascribed to such terms in the "Glossary of Terms" or elsewhere in this AIF.

Unless otherwise noted or the context otherwise indicates, the term "Corporation" or "Osisko Development" refers to the Corporation and its subsidiaries.

For reporting purposes, the Corporation presents its financial statements in Canadian dollars and in conformity with IFRS issued by the International Accounting Standards Board.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for the statements of historical fact contained herein, the information presented in this AIF constitutes Forward-Looking Information within the meaning of applicable Canadian Securities Laws concerning the business, operations, plans and financial performance and condition of the Corporation. Often, but not always, Forward-Looking Information can be identified by words such as "plans", "expects", "may", "should", "could", "will", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", or variations including negative variations thereof of such words and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved.

Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual plans, results, performance or achievements of the Corporation to differ materially from any future plans, results, performance or achievements expressed or implied by the Forward-Looking Information. Such factors include, among others, actual operating cash flows, operating costs, free cash flows, mineral resources, total cash, transaction costs, and administrative costs of the Corporation differing materially from those anticipated; project infrastructure requirements and anticipated processing methods, exploration expenditures differing materially from those anticipated; risks related to partnership or other joint operations; actual results of current exploration activities; variations in mineral resources, mineral production, grades or recovery rates or optimization efforts and sales; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; uninsured risks, including, but not limited to, pollution, cave-ins or hazards for which insurance cannot be obtained; regulatory changes, defects in title; availability or integration of personnel, materials and equipment; inability to recruit or retain management and key personnel; performance of facilities, equipment and processes relative to specifications and expectations; unanticipated environmental impacts on operations; market prices; production, construction and technological risks or capital requirements and operating risks associated with the operations or an expansion of the operations, dilution due to future equity financings, fluctuations in gold, silver and other metal prices and currency exchange rates; uncertainty relating to future production and cash resources; inability to successfully complete new development projects, planned expansions or other projects within the timelines anticipated; adverse changes to market, political and general economic conditions or laws, rules and regulations applicable to the Corporation; impact of the COVID-19 pandemic; changes in project parametres; the possibility of project cost overruns or unanticipated costs and expenses; accidents, labour disputes, community and stakeholder protests and other risks of the mining industry; failure of plant, equipment or processes to operate as anticipated; risk of an undiscovered defect in title or other adverse claim; factors discussed under the heading "Risk Factors"; and other risks, including those risks set out in the continuous disclosure documents of the Corporation, which are available on SEDAR (www.sedar.com) under the issuer profiles of the Corporation.


In addition, Forward-Looking Information herein is based on certain assumptions and involves risks related to the businesses of the Resulting Issuer. Forward-Looking Information contained herein is based on certain assumptions, including, but are not limited to, interest and exchange rates; the price of gold, copper and other metals; competitive conditions in the mining industry; title to mineral properties; financing and funding requirements; general economic, political and market conditions; and changes in laws, rules and regulations applicable to the Corporation.

Although the Corporation has attempted to identify important factors that could cause plans, actions, events or results to differ materially from those described in Forward-Looking Information in this AIF, there may be other factors that cause plans, actions, events or results not to be as anticipated, estimated or intended. There is no assurance that such statements will prove to be accurate as actual plans, results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on Forward-Looking Information in this AIF. All of the Forward-Looking Information in this AIF are qualified by these cautionary statements.

Certain Forward-Looking Information and other information contained herein concerning the mining industry and the expectations of the Corporation concerning the mining industry and the Corporation are based on estimates prepared by the Corporation using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which the Corporation believes to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, this data is inherently imprecise. While the Corporation is not aware of any misstatement regarding any industry data presented herein, the mining industry involves risks and uncertainties that are subject to change based on various factors.

Readers are cautioned not to place undue reliance on Forward-Looking Information. The Corporation does not undertake any obligation to update any of the Forward-Looking Information in this AIF, except as required by law.

PREPARATION OF FINANCIAL INFORMATION

As a Canadian company, the Corporation prepares its financial statements in accordance with IFRS. Consequently, all of the financial statements and financial information of the Corporation is prepared in accordance with IFRS, which are materially different than financial statements and financial information prepared in accordance with U.S. generally accepted accounting principles.

CAUTIONARY NOTE TO U.S. INVESTORS REGARDING
THE USE OF MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES

The Corporation is subject to the reporting requirements of the applicable Canadian securities laws, and as a result reports information regarding mineral properties, mineralization and estimates of mineral reserves and mineral resources in accordance Canadian reporting requirements, which are governed by Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). As such, the information contained in this Annual Information Form concerning mineral properties, mineralization and estimates of mineral reserves and mineral resources is not comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of the U.S. Securities and Exchange Commission.


EXCHANGE RATE DATA

Unless otherwise indicated herein, references to "$", "C$" or "Canadian dollars" refer to Canadian dollars, and references to "US$" or "U.S. dollars" refer to United States dollars. See "Cautionary Statement Regarding Forward-Looking Information".

The following table sets forth the high and low exchange rates for one U.S. dollar expressed in Canadian dollars for each period indicated, the average of the exchange rates for each period indicated and the exchange rate at the end of each such period, based upon the exchange rates provided by the Bank of Canada:

 

Year Ended December 31

2021

2020

2019

($C)

($C)

($C)

High

1.2942

1.4496

1.3600

Low

1.2040

1.2719

1.2988

Average rate for period

1.2535

1.3415

1.3269

Rate at end of period

1.2678

1.2732

1.2988

On May 19, 2022, the exchange rate for one U.S. dollar expressed in Canadian dollars as reported by the Bank of Canada, was 1.2809.

COMMODITY PRICE INFORMATION

The average fixing gold and silver prices in United States dollars per troy ounce for each of the two (2) years in the period ended December 31, 2021, as quoted by the London Bullion Market Association, were as follows:

 

2021

2020

($US)

($US)

Gold (LBMA pm US$/oz)

1,799

1,770

Silver (LBMA US$/oz)

25.14

20.51



CORPORATE STRUCTURE

Name, Address and Incorporation

The Corporation was incorporated on June 13, 2006 under the BCBCA. On November 3, 2011, the Corporation changed its name from "Ringbolt Ventures Ltd." to "North American Potash Developments Inc.". On September 20, 2018, the Corporation changed its name from "North American Potash Developments Inc." to "Barolo Ventures Corp.". On November 23, 2020, the Corporation changed its name from "Barolo Ventures Corp." to "Osisko Development Corp.". On November 27, 2020, the Corporation was continued under the CBCA under the name "Osisko Development Corp./Osisko Développement Corp.".

As of the date of this AIF, the Corporation is a reporting issuer in British Columbia, Alberta and Québec.

The Common Shares trade under the ticker symbol "ODV" on the TSX-V. On May 4, 2022 the Corporation announced that, pursuant to a special resolution passed by shareholders on April 26, 2022, and to the consolidation ratio subsequently approved by the Board of Directors, the consolidation of all of its issued and outstanding common shares on the basis of one (1) post-consolidated Common Share for every three (3) pre-consolidated Common Shares was talking effect as of the same day. 

The Consolidation results in the number of issued and outstanding Common Shares being reduced from 142,780,419 to 47,593,473 common shares. The exercise price and number of Common Shares of the Corporation issuable upon the exercise of outstanding stock options, warrants or other convertible securities will be proportionately adjusted to reflect the Consolidation in accordance with the terms of the securities.

There are 14,789,373 Warrants trading on TSX-V under the ticker symbol "ODV.WT" and 9,525,850 Warrants that are not trading on the TSX-V.

The Corporation's head and registered office is located at 1100 avenue des Canadiens-de-Montréal, Suite 300, Montreal, Québec H3B 2S2. A community relations office is located at 4270 Sanders Avenue, Wells, British Columbia V0K 2R0.

Intercorporate Relationships

A majority of the Corporation's business is carried on through its various subsidiaries. The Corporation's material subsidiary as of December 31 2021 was Barkerville Gold Mines Ltd. ("Barkerville"), a wholly-owned subsidiary of Osisko Development incorporated under the BCBCA.

GENERAL DEVELOPMENT OF BUSINESS

Three Year History

Fiscal Year ended December 31, 2019

During the year ended May 31, 2019, Barolo's management decided to dissolve Barolo's three (3) US subsidiaries (BUA USA LLC, Potash Green LLC, and Potash Green Utah LLC). The majority of the assets and liabilities in these companies were intercompany loans, advances and investments that have been written off.

Fiscal Year ended December 31, 2020

On December 30, 2020, the Corporation closed a “bought deal” brokered private placement of 5,367,050 units at a price of $7.50 per unit for aggregate gross proceeds of approximately $40.3 million. Each unit consisted of one (1) pre-Consolidation Common Share and one-half of one (½)Warrant, a Warrant holder will be required to exercise three (3) whole Warrants in order to purchase one whole post-Consolidation Common Share for a total price of $30.00 on or prior to December 1, 2023.

On October 5, 2020, Osisko Gold Royalties and Barolo entered into a binding letter agreement outlining the terms upon which Osisko Gold Royalties agreed to transfer to Barolo certain mining properties (or securities of the entities that directly or indirectly own such mining properties), and a portfolio of marketable securities valued at approximately $116 million, in exchange for common shares of Barolo, resulting in a "reverse takeover" of Barolo under the policies of the TSX-V.


In addition, on October 5, 2020, Osisko Gold Royalties and Barolo entered into an engagement letter with Canaccord Genuity Corp. and National Bank Financial Inc., on behalf of a syndicate of underwriters (the “2020 Underwriters”), pursuant to which the 2020 Underwriters agreed to sell, on a “bought deal” private placement basis, 13,350,000 subscription receipts of Osisko Subco, which was then a wholly-owned subsidiary of Osisko Gold Royalties, at a subscription price of $7.50 per subscription receipt, for gross proceeds of $100 million (the “SR Offering”), with each subscription receipt entitling the holder thereof to receive, for no additional consideration and without further action on the part of the holder thereof, on or about the date that the Reverse Takeover Transaction would be completed, one (1) pre-Consolidation Common Share (after giving effect to a 60:1 consolidation) and one-half-of-one (½) Warrant, a Warrant holder will be required to exercise three (3) whole Warrants in order to purchase one whole post-Consolidation Common Share for a total price of $30.00  for an 18-month period. The SR Offering closed on October 29, 2020.

On October 23, 2020, the Amalgamation Agreement was executed among Osisko, Barolo, Osisko Subco and Barolo Subco.

On November 20, 2020, Barolo held an annual general and special meeting of its shareholders in order to authorize and approve various corporate matters relevant to the Reverse Takeover Transaction. Each of the matters was approved by 100% of the shareholders of Barolo who voted at the meeting.

On November 25, 2020, Osisko Gold Royalties and Osisko Development announced the completion of this Reverse Takeover Transaction involving, among other things, the following events:

(a) Osisko Gold Royalties transferred to Osisko Subco certain mining properties and the Contributed Osisko Marketable Securities (through the transfer of the entities that directly or indirectly owned such mining properties and marketable securities);

(b) the common shares of Barolo outstanding immediately prior to the effective time of the Amalgamation were consolidated on the basis of one (1) post-consolidation common share of Barolo for each sixty (60) pre-consolidation common share of Barolo;

(c) the 13,350,000 subscription receipts issued under the SR Offering were converted into 13,350,000 common shares of Osisko Subco and 6,675,000 common share purchase warrants of Osisko Subco and the net subscription proceeds were released from escrow and paid to Osisko Subco;

(d) each common share purchase warrant of Osisko Subco outstanding immediately prior to the Amalgamation was exchanged for one (1) Warrant, a Warrant holder will be required to exercise three (3) whole Warrants in order to purchase one whole post-Consolidation Common Share for a total price of $30.00 for a period of 18 months from the effective date of the Amalgamation;

(e) Osisko Subco and Barolo Subco amalgamated by way of a triangular amalgamation under the BCBCA (the "Amalgamation") to form "Amalco" and Osisko Gold Royalties exchanged its common shares of Osisko Subco for 100,000,000 pre-Consolidation Common Shares at a deemed pre-Consolidation price of $7.50 per share;

(f) Amalco merged into Barolo by way of a voluntary dissolution;

(g) Barolo: (i) changed its name to "Osisko Development Corp."; (ii) changed its stock exchange ticker symbol to "ODV"; (iii) consolidated its common shares on a 60:1 basis; (iv) adopted new by-laws and other corporate policies; (v) adopted the Option Plan, the RSU Plan, the DSU Plan and the ESP Plan; (vi) reconstituted the board of directors and management of Osisko Development; and (vii) continued its corporate existence under the CBCA.


(collectively, the "Reverse Takeover Transaction").

More particularly, pursuant to the Reverse Takeover Transaction:

(a) the following mining properties (or securities of the entities that directly or indirectly own such mining properties) (the "Contributed Osisko Properties") were transferred by Osisko Gold Royalties to the Corporation:

(b) Osisko Gold Royalties retained the Osisko Retained Royalty Interests, including:

(c) Osisko Gold Royalties was granted a right of first refusal on all future royalties and streams to be offered by the Corporation, a right to participate in buybacks of existing royalties held by the Corporation and other rights customary with a transaction of this nature; and

(d) Osisko Gold Royalties transferred a portfolio of marketable securities to the Corporation which included securities of the following reporting issuers in which Osisko Gold Royalties was a reporting insider: Minera Alamos Inc., Harfang Exploration Inc., Barksdale Resources Corp., Falco Resources Ltd., Cornish Metals Inc. and Niobay Metals Inc.

In addition, effective upon closing of the Reverse Takeover Transaction, Mr. Sean Roosen transitioned from his role as Chief Executive Officer and Chair of the Board of Osisko Gold Royalties to Executive Chair of Osisko Gold Royalties and he took the position of Chief Executive Officer of Osisko Development.

Fiscal Year ended December 31, 2021

On December 21, 2021, the Corporation announced that the Board had approved amendments to the Corporation's employee share purchase plan in order to accelerate the vesting provisions of the shares granted thereunder, subject to a holding period, and to clarify existing provisions of the employee share purchase plan, without altering the scope, nature and intent of such provisions.

Osisko Development started an Environmental Assessment ("EA") Process in spring of 2019 for the Cariboo Project. The project has completed several milestones to obtaining the EA Certificate planned in the fourth quarter of 2022. The following is a summary of the steps completed and to be completed to obtain the EA Certificate that will grant the Corporation the right to apply for the permit of the Cariboo Project.


The following is summary of steps towards EA certification targeted for the fourth quarter 2022:

 Early Engagement. Completed, initial project description and summary of engagement

 EA Readiness Decision. Completed, detailed project description, received notice of consent

 Processing planning. Completed

 Application Development & Review. Completed

 Revised Application Submission. In Progress

 Effects of Assessment

 Recommendation

 Decision

 Post Certificate

On October 25, 2021, 14,789,258 Warrants were listed for trading on the TSX-V under the symbol “ODV.WT”. A Warrant holder will be required to exercise three (3) whole Warrants in order to purchase one whole post-Consolidation Common Share for a total price of $30.00 at any time on or prior to December 1, 2023.

On February 26, 2021, Mr. Alexander Dann was appointed Chief Financial Officer & VP Finance and Mr. André Le Bel was appointed Corporate Secretary following the resignation of Mr. Benoit Brunet. On May 26, 2021, Ms. Marina Katusa was nominated to the Board. On August 16, 2021, Mr. Martin Ménard was appointed as Vice-President, Engineering and Construction.

On March 18, 2021, Osisko Development announced the completion of a "bought deal" brokered private placement of an aggregate of: (a) 2,055,742 flow-through pre-Consolidation Common Shares of the Corporation at a pre-Consolidation price of $9.05 per Common Share; and (b) 1,334,500 charity flow-through pre-Consolidation Common Shares of the Corporation at a pre-Consolidation price of $11.24 per Common Share, for aggregate gross proceeds of approximately $33.6 million.

In March 2021, processing of mineralized material commenced at the Bonanza Ledge II Project, generating $7.7 million in revenues for the year ended December 31, 2021. The Corporation recognized an impairment on its Bonanza Ledge II Project of $58.4 million during the year ended December 31, 2021, triggered by continuing operational challenges leading to lower production and revenues than originally planned.

The Bonanza Ledge II Project is a small scale and short life project, which allows the Corporation to facilitate (a) opportunities for managing historical reclamation obligations inherited by the Corporation, (b) hands on training and commissioning of the Corporation's mining and processing complex for the Cariboo Project and (c) maintain the economic and social benefits for the First Nations partners and communities. As such, in the fourth quarter of 2021, the Corporation continued with its operations at the Bonanza Ledge II Project.

On October 27, 2021, the Province of British Columbia, Lhtako Dené First Nation and the Corporation announced the approval of amendments to Mines Act Permits M-238 and M-198 allowing for the expansion of the existing Bonanza Ledge II underground mine. These amendments support the ongoing employment of 127 workers at the mine. The expansion of the Bonanza Ledge II project allows for continuity of mining activities while the Cariboo Project environmental assessment proceeds. The Environmental Assessment process is still on schedule with granting of the Certificate anticipated in the fourth quarter 2022.

The Corporation cautions that the decision to undertake test mining at Bonanza Ledge II has been taken without the benefit of a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result there may be increased uncertainty of achieving any particular level of recovery of material or the cost of such recovery. The Corporation cautions that historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will continue as anticipated or at all or that anticipated production costs will be achieved.  The failure to continue production would have a material adverse impact on the Corporation's ability to generate revenue and cash flow to fund operations.  Failure to achieve the anticipated production costs would have a material adverse impact on the Corporation's cash flow and potential profitability.  In continuing current operations at Bonanza Ledge II, as contemplated, the Corporation will not be basing its decision to continue such operations on a feasibility study of mineral reserves demonstrating economic and technical viability.  The Corporation cautions that test mining at Bonanza Ledge could be suspended at any time.


On January 8, 2021, the Corporation closed the first tranche of a non-brokered private placement of 9,346,464 units at a price of $7.50 per unit for aggregate gross proceeds of approximately $68.6 million. Each unit consisted of one (1) pre-Consolidation Common Share and one-half of one (½) Warrant, a Warrant holder will be required to exercise three (3) whole Warrants in order to purchase one whole post-Consolidation Common Share for a total price of $30.00 on or prior to December 1, 2023. The second tranche of this non-brokered private placement closed on February 5, 2021 for aggregate gross proceeds of approximately $11.2 million. Together with this second tranche, the Corporation raised an aggregate of approximately $80 million.

Events Subsequent to December 31, 2021 Fiscal Year End

On May 4, 2022 the Corporation announced that, pursuant to a special resolution passed by shareholders on April 26, 2022, and to the consolidation ratio subsequently approved by the Board of Directors, the consolidation of all of its issued and outstanding common shares on the basis of one (1) post-consolidated
Common Share for every three (3) pre-consolidated Common Shares was talking effect as of the same day.

The Consolidation results in the number of issued and outstanding Common Shares being reduced from 142,780,419 to 47,593,473 common shares. The exercise price and number of Common Shares of the Corporation issuable upon the exercise of outstanding stock options, warrants or other convertible securities will be proportionately adjusted to reflect the Consolidation in accordance with the terms of the securities.

On January 25, 2022, Osisko Development announced that it had entered into definitive agreements (together, the "Tintic Agreements") with IG Tintic LLC and Ruby Hollow LLC to acquire 100% of Tintic Consolidated Metals LLC. On completion of this transaction, Osisko Development will acquire 100% ownership of the producing Trixie test mine, as well as mineral claims covering more than 17,000 acres (including over 14,200 acres of which are patented) in Central Utah's historic Tintic Mining District. Pursuant to the terms of the Tintic Agreements, Osisko Development will acquire 100% of Tintic Consolidated Metals LLC from IG Tintic LLC and Ruby Hollow LLC for aggregate payments at closing totaling approximately US$177 million, of which approximately US$54 million will be paid in cash and approximately US$123 million will be paid by the issuance of 35,099,611 pre-Consolidation Common Shares at a pre-Consolidation price of C$4.32 per share. In addition, Osisko Development will pay IG Tintic LLC and Ruby Hollow LLC: (i) deferred payments of US$12.5 million payable in equal instalments annually over five years in cash or common shares at Osisko Development's election; (ii) two 1% NSR royalty grants, each with a 50% buyback right in favour of Osisko Development for US$7.5 million which is exercisable within 5 years; (iii) a right to receive the financial equivalent of 10% of the NSR from stockpiled mineralized material extracted from Trixie test mine since January 1, 2018 and sitting on surface; (iv) the set-off of a US$5 million loan owed to Osisko Development; and (v) US$10 million contingent upon commencement of production at the Burgin Mine.

The Corporation cautions that the owners of Tintic have taken the decision to commence production at Trixie in the form of small scale underground mining and batch vat leaching without the benefit of a feasibility study, or reported mineral resources or mineral reserves, demonstrating economic and technical viability, and, as a result there may be increased uncertainty of achieving any particular level of recovery of material or the cost of such recovery. The Corporation cautions that historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will continue as anticipated or at all or that anticipated production costs will be achieved.  The failure to continue production may have a material adverse impact on the Corporation's ability to generate revenue and cash flow to fund operations.  Failure to achieve the anticipated production costs would have a material adverse impact on the Corporation's cash flow and potential profitability. The Corporation cautions that historically, such projects have a much higher economic or technical risks. In continuing current operations at Trixie after closing, the Corporation will not be basing its decision to continue such operations on a feasibility study, or reported mineral resources or mineral reserves demonstrating economic and technical viability. The Corporation cautions that test mining at Trixie could be suspended at any time.


On February 2, 2022, Osisko Development announced a non-brokered private placement of up to 2,857,142 subscription receipts of Osisko Development (the “Non-Brokered Subscription Receipts”) at a price of US$3.50 per Non-Brokered Subscription Receipt (the “Non-Brokered Offering”). Each Non-Brokered Subscription Receipt will entitle the holder thereof to receive, upon the satisfaction of the Non-Brokered Escrow Release Condition (as defined below) and without payment of additional consideration, one (1) unit of Osisko Development (each, a “Non-Brokered Unit”). Each Non-Brokered Unit is comprised of one (1) pre-Consolidation Common Share and one (1) Warrant, a Warrant holder will be required to exercise three (3) whole Warrants in order to purchase one whole post-Consolidation Common Share for a total price of US$18.00 for a period of five (5) years following the date of issue. The gross proceeds of the Non-Brokered Offering will be held in escrow pending, among other things, the completion of the listing of the Common Shares on the NYSE (the “Non-Brokered Escrow Release Condition”), which is contingent upon Osisko Development meeting the listing requirements of the NYSE and may involve, among other things, a consolidation of the Common Shares.  The Consolidation was effective May 4, 2022. On March 4, 2022, Osisko Development announced the closing of the first tranche of the Non-Brokered Offering, pursuant to which a total of 24,215,099 Non-Brokered Subscription Receipts were issued for gross proceeds of approximately US$84.8 million. The second tranche of the Non-Brokered Offering closed on March 29, 2022, pursuant to which an additional US$32.8 million of Non-Brokered Subscription Receipts have been issued. The total amount of gross proceeds from the two tranches of Non-Brokered Subscription Receipts is US$117.6 million.

On February 9, 2022, Osisko Development announced a “bought deal” brokered private placement of an aggregate 9,000,000 subscription receipts of Osisko Development (the “Brokered Subscription Receipts”) and/or units of Osisko Development (the “Brokered Units” and, together with the Brokered Subscription Receipts, the “Brokered Offered Securities”) at a price of $4.45 per Brokered Offered Security (the “Brokered Offering”). Each Brokered Unit is comprised of one (1) pre-Consolidation Common Share and one (1) Warrant, a Warrant holder will be required to exercise three (3) whole Warrants in order to purchase one whole post-Consolidation Common Share for a total price of $22.80 for a period of 60 months following the closing date of the Brokered Offering. Each Brokered Subscription Receipt will entitle the holder thereof to receive, upon the satisfaction of the Brokered Escrow Release Condition (as defined below), and without payment of additional consideration, one (1) Brokered Unit. Osisko Development has granted the underwriters an option, exercisable in whole or in part up to 48 hours prior to the closing of the Brokered Offering, to purchase up to an additional aggregate amount of 1,350,000 Brokered Subscription Receipts and/or Brokered Units for additional gross proceeds of up to $6,007,500. The gross proceeds from the sale of the Brokered Subscription Receipts, net of expenses of the underwriters and 50% of the commissions payable to the underwriters in respect of the Brokered Subscription Receipts, will be placed into escrow and will be released immediately prior to the completion of the proposed acquisition by Osisko Development of Tintic Consolidated Metals LLC (the “Brokered Escrow Release Condition”). If the Brokered Escrow Release Condition is not satisfied prior to the date that is 90 days from the closing of the Brokered Offering, the escrowed proceeds of the Brokered Offering will be returned to the holders of the Brokered Subscription Receipts. On March 2, 2022, Osisko Development announced the completion of the Brokered Offering of an aggregate of (i) 13,732,900 Brokered Subscription Receipts and (ii) 9,525,850 Brokered Units for aggregate gross proceeds of approximately $103.5 million, including the full exercise of the underwriters' option.

Significant Acquisitions

In the most recently completed financial year, there were no significant acquisitions for which the Corporation was required to file a business acquisition report (BAR) under NI 51-102.


DESCRIPTION OF BUSINESS

General

Osisko Development is focused on developing its cornerstone mining asset, the Cariboo Project located in British Columbia, Canada.

The Cariboo Project mineral tenures cover 2,071 km2, along a strike length of 83 km which includes several past producing placer and hard rock mines.

Description of the Contributed Osisko Properties

On November 21, 2019, Osisko Gold Royalties acquired the Cariboo Project located in the historical Cariboo Mining District of central British Columbia, Canada, through the acquisition of Barkerville. The Cariboo Project was part of the Osisko Gold Royalties Contributed Assets that created the Corporation on November 25, 2020.

In 2021, Osisko Development conducted an extensive drilling program of approximately 152,000 metres to expand and delineate the known and new vein corridors and deposits. This exploration as focused on the expansion of the Lowhee Zone and further delineation of the Cow, Valley, Mosquito and Shaft deposits with ten diamond drill rigs. Regional greenfield exploration will occur along the Burns, Yanks and Cariboo Hudson targets and will include geological mapping and geochemical surface sampling.

Osisko Development received the Mines Act Permit under BC Mines Act to commence development to collect an underground bulk sample at its Cariboo Project.

For further details regarding the Cariboo Project, please refer to the Cariboo Technical Report and the Schedule A attached to this AIF entitled "Material Mineral Project - Cariboo Project".

The San Antonio Gold Project is an iron oxide copper gold style deposit with zones of oxide, transition, and sulphides on three main target areas: Sapuchi, Golfo de Oro and California. In 2020, Osisko Gold Royalties acquired the San Antonio gold project in Sonora, Mexico for US$42 million. An amount of US$30.0 million was paid in cash by Osisko Gold Royalties and the remaining US$12.0 million was paid through the issuance of common shares of Osisko Gold Royalties. A total of 1,011,374 Osisko Gold Royalties common shares were issued and valued at $15.8 million, based on the closing price of the common shares at the date of the transaction. The consideration paid by Osisko Gold Royalties was considered as an equity contribution in the Corporation. Transaction costs amounted to $5.9 million. The San Antonio gold project was subsequently transferred to Osisko Development as part of the Reverse Take Over Transaction.

The San Antonio Gold Project is a past-producing oxide copper mine that went into receivership. The Corporation is focusing on amending existing permits to transition the mine production to a gold heap leach operation as it continues to evaluate the gold potential of the asset.

In 2020, following the acquisition, the Corporation has concentrated its efforts in obtaining the required permits and amendments to permits to perform its activities. The Corporation has filed preventive reports for the processing of the gold stockpile on site and for a 15,000-meter drilling program for the Sapuchi, Golfo de Oro and California zones. The Corporation also initiated the following activities:


In 2021, Sapuchi Minera S. R.L de C.V. focused on various activities that pertain to permitting, local community relations, exploration drilling and preparations towards the processing of the mineralized material stockpile on site.

In 2016, Osisko Gold Royalties entered into earn-in agreements with Osisko Mining in regards to the James Bay properties. On July 5, 2019, Osisko Mining completed a spinout transaction, which resulted in, among other things, Osisko Mining transferring certain assets to O3 Mining Inc., including properties under earn-in agreements with Osisko Gold Royalties.

In October 2020, Osisko Gold Royalties announced the spin-out of its mining assets, including the properties in the James Bay area, to Osisko Development. As part of the transaction, the earn-in agreements between Osisko Gold Royalties and O3 Mining Inc. were terminated and therefore, Osisko Development has now control over the properties for their exploration and development activities.  As at December 31, 2021, the net book value of the properties were $nil as the Corporation will be focusing on its other development projects in the near term.

The Coulon Project is located 15 kilometres north of the Fontanges Airport in the Middle North of Québec. It is close to a hydroelectric dam and the project can be accessed year-round via the Trans-Taïga road. In 2009, a NI 43-101 Technical Report and Resource Estimate was filed. Indicated resources were estimated at 3,675,000 tonnes grading on average 3.61% Zn, 1.27% Cu, 0.40% Pb, 37.2 g/t Ag and 0.25 g/t Au and inferred resources were estimated at 10,058,000 tonnes grading on average 3.92% Zn, 1.33% Cu, 0.19% Pb, 34.5 g/t Ag and 0.18 g/t Au.  This is a historic resource. The Corporation believes that the historic resource continues to be relevant and reliable as an indication of the potential of the Coulon zinc project. The key assumptions, parameters and methods used to prepare the historic estimate are set out in the 2009 technical report which includes the historic resource. The Corporation is not aware of any more recent estimates or data in relation to the historic estimate. Further exploration work including drilling would be required to upgrade the historic resource to current. The Corporation cautions sufficient work has not been done by a qualified person to classify the historic resources as a current resource and the Corporation is not treating the historic resources as a current resource.

The Coulon zinc project has a net book value of $nil as at December 31, 2021 as the Corporation will be focusing on its other development projects in the near term.

Tintic Project

Pursuant to the terms of the Tintic Agreements, Osisko Development will acquire 100% of Tintic through the purchase of: (i) IG Tintic's direct 75% ownership in Tintic; and (ii) all issued and outstanding stock of Chief Consolidated Mining Company from Ruby Hollow LLC and other stockholders of Chief Consolidated Mining Company. Immediately following the closing of the transaction, Chief will complete a merger with a newly-formed subsidiary of the Corporation (the "Chief Merger"), such that, following completion of the Chief Merger, Chief Consolidated Mining Company will be wholly owned by the Corporation. At closing, Osisko Development will make payments to the vendors in the aggregate amount of approximately US$177 million, comprised of: (i) cash payments of approximately US$54 million, and (ii) the issuance of 35,099,611 pre-Consolidation Common Shares for an aggregate value of approximately US$123 million. A number of Tintic shareholders representing approximately 32.5% of the total ownership have entered into 12-month lock-up agreements, which provide that: (i) 33% of the Common Shares will be freely tradeable on the four-month anniversary of the closing date of the transaction; (ii) an additional 33% of the Common Shares will be freely tradeable on the eight-month anniversary of the closing date; and (iii) the remaining 34% of the Common Shares will be freely tradeable on the first year anniversary of the closing date. In addition to the payments mentioned, the Corporation will pay the vendors: (i) deferred payments of US$12.5 million payable in equal instalments annually over five years in cash or Common Shares at Osisko Development's election; (ii) two 1% NSR royalty grants, each with a 50% buyback right in favour of Osisko Development for US$7.5 million which is exercisable within 5 years; (iii) a right to receive the financial equivalent of 10% of the NSR from stockpiled mineralized material extracted from the Trixie test mine since January 1, 2018 and sitting on surface; (iv) the set-off of a US$5 million loan owed to Osisko Development; and (v) US$10 million contingent upon commencement of production at the Burgin Mine.


The Corporation, through a wholly-owned subsidiary, has entered into a non-binding metals stream term sheet with a wholly-owned subsidiary of Osisko Gold Royalties. The proceeds from the stream will be used to fund a portion of the cash consideration payable on closing of this transaction. The key terms of the stream include:

This transaction is also subject to normal course regulatory approvals and the satisfaction of customary closing conditions, including the execution of ancillary agreements and acceptance of the TSX-V. Subject to the satisfaction of these conditions, Osisko Development expects the transactions to close in the second quarter of 2022.

Description of Equity Investments

The Corporation's assets include a portfolio of shares, mainly of Canadian publicly traded exploration and development mining companies. The Corporation may, from time to time and without further notice except as required by law or regulations, increase or decrease its investments at its discretion.

The following table presents the main investments of the Corporation in marketable securities as at April 20, 2022:

Company

Number of Shares Held

Ownership

Falco Resources Ltd.

46,885,240

17.3%

Cornish Metals Inc.

58,833,333

20.6%

Falco's main asset is the Horne 5 gold project, for which the summarized results of an updated feasibility study were released on March 24, 2021.

In June 2021, Falco entered into an agreement in principle with Glencore establishing the framework of the terms and conditions (the "Agreement in Principle") pursuant to which the parties will enter into the Principal Operating License and Indemnity Agreement in order to enable Falco to develop and operate its Horne 5 project. The Agreement in Principle outlines the terms to be included in the Principal Operating License and Indemnity Agreement, which will establish the framework to govern Falco's development and operation of its Horne 5 project.

Falco also entered into an option agreement granting Falco the sole and exclusive right to acquire an undivided one hundred percent ownership interest in the Norbec and Millenbach sites located in the vicinity of the City of Rouyn-Noranda. The properties will serve as the tailings management facilities and are located at a former tailings facility (the old Norbec Mine), which has already been impacted by historical mining activities and is situated approximately 11 km from the Horne 5 project's mining complex site. The use of this previously impacted site is consistent with Falco's environmental, social and governance strategies.


As at April 20, 2022, the Corporation holds 46,885,240 common shares of Falco, representing a 17.3% interest (no change since December 31, 2021).

Material Mineral Projects

Osisko Development considers the Cariboo Project to be its only material mineral project for the purposes of NI 43-101. For further details regarding the Cariboo Project, please refer to the Cariboo Technical Report and the Schedule A attached to this AIF entitled "Material Mineral Project - Cariboo Project".

Reorganizations

Within the three (3) most recently completed financial years, the Corporation completed the Reverse Takeover Transaction, which constitute a material reorganization of the Corporation. See "General Development of Business - Three Year History - Fiscal Year Ended December 31, 2020".

Social and Environmental Policies

The Corporation views sustainability as a key part of its strategy to create value for its shareholders and other stakeholders. The Corporation focuses on the following key areas: (i) promoting the mining industry and its benefits to society; (ii) maintaining strong relationships with the Federal, Provincial, Municipal and First Nations governments where the Corporation has activities and projects; (iii) supporting the economic development of regions where it operates; (iv) promoting diversity throughout the organization and the mining industry; and (vi) encouraging investee companies to adhere to the same areas of focus in sustainability.

Highlights

The following are a few highlights from some of the Corporation's operating sites:

Barkerville


San Antonio Gold Project (Sapuchi)


Environment and Sustainability Committee

The Environmental and Sustainability Committee is a committee of the Board to which the Board delegates its responsibility to oversee certain health, safety, corporate social responsibility and environmental matters and to recommend to the Board the steps to be taken in connection with these areas of activity.

The Environmental and Sustainability Committee has the general mandate to: (i) review the corporate policies and guidelines, systems and controls that are prepared and/or implemented by management in connection with the activities of the Corporation in respect of the work environment (occupational health, safety and training matters); (ii) the human environment (corporate social responsibility matters) and the physical environment (environmental matters); (iii) deals with all matters relating to these three (3) areas of activities, including, without restriction, evaluating the Corporation's overall performance in respect of the above-described areas of activities as well as how the work, human and physical environments affect the Corporation, makes relevant recommendations to the Board in respect of any of the foregoing, and oversees the implementation and administration thereof. The Environmental and Sustainability Committee has held one meeting during the financial year ended December 31, 2021.

Specialized Skills

The Corporation's business requires specialized skills and knowledge in the areas of geology, mining, processing, environmental management and gold market. To date, the Corporation has been able to locate and retain such professionals in Canada and Mexico, and believes it will be able to continue to do so.

Employees

As at December 31, 2021, the Corporation had 310 employees.

Competitive Conditions

The Corporation competes with other companies that focus on the discovery and acquisition of properties considered to have commercial potential. The Corporation also competes with other precious metals focused companies for capital and human resources. See "Description of Business - Risk Factors - Risks Factors related to the Corporation - Competition".

Risk Factors

The Corporation's business being the acquisition, exploration and development of mineral properties in Canada and worldwide, an investment in its shares is speculative and involves a high degree of risks. The risk factors listed below could materially affect the Corporation's financial condition and/or future operating results, and could cause actual events to differ materially from those described in Forward-Looking Information relating to or made by the Corporation.

In evaluating the Corporation and its business, the readers should carefully consider the risk factors which follow and the risks set forth in the Corporation's continuous disclosure documents filed on SEDAR. These risk factors may not be a definitive list of all risk factors associated with an investment in the Corporation or in connection with its business and operations.

The risks described herein and in other documents forming part of the Corporation's disclosure record are not the only risks facing the Corporation. Additional risks and uncertainties not currently known to the Corporation, or that the Corporation currently deems immaterial, may also materially and adversely affect its business. Prospective purchasers or holders of Common Shares should give careful consideration to all risk factors enumerated below.


Risks Factors Related to the Corporation

Mineral exploration and development is speculative and involves a high degree of risk. While the discovery of a mineralized material body may result in substantial rewards, few properties which are explored are commercially mineable and ultimately developed into producing mines. There is no assurance that any exploration properties will be commercially mineable.

Should any mineral resources exist, substantial expenditures will be required to confirm mineral reserves which are sufficient to commercially mine and to obtain the required environmental approvals and permitting required to commence commercial operations. The decision as to whether a property contains a commercially viable mineral deposit and should be brought into production will depend upon the results of exploration programs and/or feasibility studies, and the recommendations of duly qualified engineers and/or geologists, all of which involves significant expense. This decision will involve consideration and evaluation of several significant factors including, but not limited to: (a) costs of bringing a property into production, including exploration and development work, preparation of production feasibility studies and construction of production facilities; (b) availability and costs of financing; (c) ongoing costs of production; (d) metal prices; (e) environmental compliance regulations and restraints (including potential environmental liabilities associated with historical exploration activities); and (f) political climate and/or governmental regulation and control. Development projects are also subject to the successful completion of engineering studies, issuance of necessary governmental permits, and availability of adequate financing. Development projects have no operating history upon which to base estimates of future cash flow.

While the Cariboo Project is in development stage and the results of the 2020 MRE are demonstrating the existence of an interesting mineral resource, the Corporation cannot give any assurance that the development of the Cariboo Project will result in an economically viable producing mine.

Mining operations are and will be subject to all the hazards and risks normally incidental to exploration, development and production of mineral resources and mineral reserves including unusual or unexpected geological formations, geotechnical challenges and other conditions such as formation pressures, fire, power outages, flooding, explosions, cave-ins, landslides and the inability to obtain suitable machinery, equipment or labour, any of which could result in work stoppages, damage to property, and possible environmental damage that even a combination of careful evaluation, experience and knowledge may not eliminate or adequately mitigate. The Corporation may be subject to liability for pollution, cave-ins or hazards against which it cannot insure or against which it may elect not to insure. The payment of such liabilities may have a material adverse effect on the financial position of the Corporation.

Certain operations described herein, including the test mining at Bonanza Ledge II, processing of the stockpile at the Sapuchi mine, and ongoing test mining being carried out by the current owners of the Trixie mine, have been taken without the benefit of a feasibility study of mineral reserves, demonstrating economic and technical viability (and in the case of Sapuchi and Trixie without the benefit of a technical report demonstrating the existence of a mineral resource), and, as a result there may be increased uncertainty of achieving any particular level of recovery of material or the cost of such recovery. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will commence, continue as anticipated or at all or that anticipated production costs will be achieved.  The failure to commence or continue production would have a material adverse impact on the Corporation's ability to generate revenue and cash flow to fund operations.  Failure to achieve the anticipated production costs would have a material adverse impact on the Corporation's cash flow and potential profitability.  In continuing current operations at Bonanza Ledge II, commencing processing at Sapuchi, and, if applicable, continuing operations at the Trixie mine, as contemplated, the Corporation will not be basing its decision to continue such operations on a feasibility study of mineral reserves demonstrating economic and technical viability (and in the case of Sapuchi and Trixie without the benefit of a technical report demonstrating the existence of a mineral resource). The Corporation cautions that test mining at Bonanza Ledge or Trixie could be suspended at any time.


The exploration for and development of mineral deposits involve significant risks and while the discovery of a mineralized material body may result in substantial rewards, few properties that are explored are ultimately developed into producing mines. All of the Corporation's properties are in the development or exploration stage and the Corporation is presently not commercially exploiting any of its properties and its future success will depend on its capacity to generate revenues from a commercially producing property.

The discovery of mineral deposits depends on a number of factors, including the professional qualification of its personnel in charge of exploration. Whether a mineral deposit will be commercially viable depends on a number of factors, some of which are the particular attributes of the deposit, such as size, grade and proximity to infrastructure, as well as metal prices which are highly cyclical and government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and environmental protection. In the event that the Corporation wishes to commercially exploit one of its properties, the exact effect of these factors cannot be accurately predicted, but the combination of these factors may result in the Corporation not receiving an adequate return on invested capital. The Corporation's operations will be subject to all the hazards and risks normally encountered in the exploration and development of mineral deposits. Mining operations generally involve a high degree of risk, including unusual and unexpected geologic formations.

The Corporation's activities are subject to governmental laws and regulations. These activities can be affected at various levels by governmental regulation governing prospecting and development, price control, taxes, labour standards and occupational health, expropriation, mine safety, compliance with securities matters and other matters. Exploration and commercialization are subject to various federal, provincial and local laws and regulations relating to the protection of the environment. These laws impose high standards on the mining industry to monitor the discharge of wastewater and report the results of such monitoring to regulatory authorities, to reduce or eliminate certain effects on or into land, water or air, to progressively rehabilitate mine properties, to manage hazardous wastes and materials and to reduce the risk of worker accidents.

Failure to comply with applicable laws and regulations may result in civil or criminal fines or penalties or enforcement actions, including orders issued by regulatory or judicial authorities enjoining or curtailing operations or requiring corrective measures, installation of additional equipment or remedial actions, any of which could result in significant expenditures. The Corporation may also be required to compensate private parties suffering loss or damage by reason of a breach of such laws, regulations or permitting requirements. It is also possible that future laws and regulations, or more stringent enforcement of current laws and regulations by governmental authorities, could cause additional expense, capital expenditures, restrictions on or suspensions of the Corporation's activities and delays in the exploration and development of the projects and properties.

Amendments to current laws, regulations and permits governing operations and activities of mining companies, or more stringent implementation thereof, could have a material adverse impact on the Corporation and cause increases in capital expenditures or development costs or require abandonment or delays in development of new mining properties.


Also, no assurance can be made that Canada Revenue Agency and provincial agencies will agree with the Corporation's characterization of expenses as Canadian exploration expenses or Canadian development expense or the eligibility of such expenses as Canadian exploration expense under the Tax Act or any provincial equivalent.

The Corporation is subject to environmental regulation in the jurisdictions in which it operates. These regulations mandate, among other things, the maintenance of air and water quality standards and land reclamation. They also set forth limitations on the general, transportation, storage and disposal of solid and hazardous waste. Environmental legislation is evolving in a manner which will require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. There is no assurance that future changes in environmental regulation, if any, will not adversely affect the Corporation's operations. Environmental hazards may exist on the properties which are unknown to the Corporation at present and which have been caused by previous or existing owners or operators of the properties. Reclamation costs are uncertain and planned expenditures estimated by management may differ from the actual expenditures required.

The Corporation has operations and conducts business in multiple jurisdictions and it is subject to the taxation laws of each such jurisdiction. These taxation laws are complicated and subject to change. The Corporation may also be subject to review, audit and assessment in the ordinary course. Any such changes in taxation law or reviews and assessments could result in higher taxes being payable or require payment of taxes due from previous years, which could adversely affect the Corporation's liquidities. Taxes may also adversely affect the Corporation's ability to repatriate earnings and otherwise deploy its assets.

The economics of the exploration and development of mining projects are affected by many factors, including the costs of exploration and development, variations of grade of mineralized material discovered, fluctuations in metal prices, foreign exchange rates and the prices of goods and services, applicable laws and regulations, including regulations relating to royalties, allowable production and importing and exporting goods and services. Depending on the price of minerals, the Corporation may determine that it is neither profitable nor advisable to acquire or develop properties.

The Corporation's mineral properties are located in Canada and Mexico. Economic and political conditions in these countries could adversely affect the business activities of the Corporation. These conditions are beyond the Corporation's control, and there can be no assurances that any mitigating actions by the Corporation will be effective.

Changing laws and regulations relating to the mining industry or shifts in political conditions may increase the costs related to the Corporation's activities including the cost of maintaining its properties. Operations may also be affected to varying degrees by changes in government regulations with respect to restrictions on exploration and development activities, price controls, export controls, income taxes, royalties, expropriation of property, environmental legislation (including specifically legislation enacted to address climate change) and mine safety. The effect of these factors cannot be accurately predicted. Economic instability could result from current global economic conditions and could contribute to currency volatility and potential increases to income tax rates, both of which could significantly impact the Corporation's profitability.

The Corporation's activities are subject to extensive laws and regulations governing worker health and safety, employment standards, waste disposal, protection of historic and archaeological sites, mine development, protection of endangered and protected species and other matters. Regulators have broad authority to shut down and/or levy fines against facilities that do not comply with regulations or standards.


Risk factors specific to certain jurisdictions are described throughout, including specifically "Security in Mexico". The occurrence of the various factors and uncertainties related to economic and political risks of operating in the Corporation's jurisdictions cannot be accurately predicted and could have a material adverse effect on the Corporation.

In recent years, criminal activity and violence have increased and continue to increase in parts of Mexico. The mining sector has not been immune to the impact of criminal activity and violence, including in the form of kidnapping for ransom and extortion by organized crime, direct armed robberies of mining operations and the theft and robbery of supply convoys, including specifically for diesel. The Corporation takes measures to protect employees, property and production facilities from these and other security risks. There can be no assurance, however, that security incidents, in the future, will not have a material adverse effect on the Corporation's operations.

Some of the Corporation's mineral assets are located outside of Canada and are held indirectly through foreign affiliates. It may be difficult if not impossible to enforce judgments obtained in Canadian courts predicated upon the civil liability provisions of the securities laws of certain provinces against the Corporation's assets that are located outside of Canada.

The operations of the Corporation require licences and permits from various governmental authorities. The Corporation believes it holds or is in the process of obtaining all necessary licences and permits to carry on the activities, which it is currently conducting under applicable laws and regulations. Such licences and permits are subject to changes in regulations and in various operating circumstances. There can be no guarantee that the Corporation will be able to obtain all necessary licences and permits that may be required to maintain its mining activities, construct mines or milling facilities and commence operations of any of its exploration properties. In addition, if the Corporation proceeds to production on any exploration property, it must obtain and comply with permits and licences which may contain specific conditions concerning operating procedures, water use, the discharge of various materials into or on land, air or water, waste disposal, spills, environmental studies, abandonment and restoration plans and financial assurances. There can be no assurance that the Corporation will be able to obtain such permits and licences or that it will be able to comply with any such conditions.

The Corporation may evaluate from time to time opportunities to merge, acquire and joint venture assets and businesses or conduct any other type of transaction. Global landscape has changed and there are risks associated to such transactions due to liabilities and evaluations with the aggressive timelines of closing transactions from increased competition. There is also a risk that the review and examination process might be inadequate and cause material negative outcomes. These transactions may be significant in size, may change the scale of the Corporation's business and may expose it to new geographic, political, operating, financial and geological risks. Any transactions would be accompanied by risks, such as the difficulty of assimilating the operations and personnel; the potential disruption of the Corporation's ongoing business; the inability of management to maximize the financial and strategic position of the Corporation; the maintenance of uniform standards, controls, procedures and policies; the impairment of relationships with employees, customers and contractors as a result of any integration of new management personnel; dilution of the Corporation's present shareholders or of its interests in its assets or the decision to grant interests to a joint venture partner; and the potential unknown liabilities. There can be no assurance that the Corporation would be successful in overcoming these risks or any other problems encountered in connection with such transactions or joint ventures. There may be no right for shareholders to evaluate the merits or risks of any future transaction or joint venture undertaken except as required by applicable laws and regulations.


From time to time the Corporation may enter into binding transactions to acquire assets such as mining companies, metals or mineral projects and properties. There can be no assurances the Corporation will successfully complete any announced transactions as a variety of conditions may exist that need to be waived or satisfied prior to completion. There can be no certainty that proposed benefits of transactions to acquire such assets will be realized as anticipated.

Exploration for metals and minerals is a speculative venture necessarily involving substantial risk. There is no certainty that the expenditures on any given projects will result in discoveries of commercial quantities of minerals.

If mineable deposits are discovered, substantial expenditures are required to establish reserves through drilling, to develop processes to extract the resources and, in the case of new properties, to develop the extraction and processing facilities and infrastructure at any site chosen for extraction. Although substantial benefits may be derived from the discovery of a major deposit, no assurance can be given that resources will be discovered in sufficient quantities to justify commercial operations or that the funds required for development can be obtained on terms acceptable to the Corporation or at all.

Indigenous title claims, rights to consultation/accommodation and the Corporation's relationship with local communities may affect the Corporation's existing exploration and development projects. Governments in many jurisdictions must consult with indigenous peoples and First Nations with respect to grants of mineral rights or surface rights and the issuance or amendment of project authorizations. Consultation and other rights of indigenous peoples and first nations may require accommodations, including undertakings regarding employment, royalty payments and other matters. This may affect the Corporation's ability to acquire, within a reasonable time frame, effective mineral titles or surface rights in these jurisdictions, including in some parts of Canada, in which indigenous or local communities' titles are claimed, and may affect the timetable and costs of development of mineral properties in these jurisdictions. The risk of unforeseen indigenous title claims also could affect exploration and development projects. These legal requirements may also affect the Corporation's ability to transfer existing projects or to develop new projects.

The Corporation's relationship with the communities in which it conducts activities are critical to ensure the future success of its existing activities and the exploration and development of its projects. There is an increasing level of public concern relating to the perceived effect of mining activities on the environment and on communities impacted by such activities. Adverse publicity relating to the mining industry generated by non-governmental organizations and others could have an adverse effect on the Corporation's reputation or financial condition and may impact its relationship with the communities in which it conducts activities. While the Corporation is committed to working in a socially responsible manner, there is no guarantee that the Corporation's efforts in this regard will mitigate this potential risk.

The inability of the Corporation to maintain positive relationships with local communities may result in additional obstacles to permitting, increased legal challenges, or other disruptive operational issues at any of the Corporation's projects, and could have a significant adverse impact on the Corporation's share price and financial condition.


The Corporation activities are directed towards the exploration, evaluation and development of mineral deposits. There is no certainty that the expenditures to be made by the Corporation will result in discoveries of commercial quantities of mineral deposits. There is aggressive competition within the mining industry for the discovery and acquisition of properties considered to have commercial potential. The Corporation will compete with other interests, many of which have greater financial resources than it will have, for the opportunity to participate in promising projects. Significant capital investment is required to achieve commercial production from successful exploration efforts, and the Corporation may not be able to successfully raise funds required for any such capital investment.

The Corporation is subject to risks related to potential to gain benefits from improper transactions and financial reporting to hide operational deficiencies or enhance remuneration. Other risks include the potential for fraud and corruption by suppliers, personnel or government officials and which may implicate the Corporation, compliance with applicable anti-corruption laws. The Corporation's internal controls might not be sufficient or sophisticated enough to identify adequately all potential fraud and corruption.

The Canadian Corruption of Foreign Public Officials Act and the U.S. Foreign Corrupt Practices Act and anti-bribery laws in other jurisdictions where we do business, prohibit companies and their intermediaries from making improper payments for the purposes of obtaining or retaining business or other commercial advantage. The Corporation's policies mandate compliance with these anti-bribery laws, which often carry substantial penalties. The Corporation operates in jurisdictions that have experienced governmental and private sector corruption to some degree, and, in certain circumstances, strict compliance with anti-bribery laws may conflict with certain local customs and practices. There can be no assurances that the Corporation's internal control policies and procedures will always protect it from reckless or other inappropriate acts committed by the Corporation's affiliates, employees or agents. Violations of these laws, or allegations of such violations, could have a material adverse effect on the Corporation's business, financial position and results of operations.

The Corporation is dependent on certain members of Management, particularly its Chief Executive Officer. The loss of their services could adversely affect the Corporation.

The Corporation may experience difficulty attracting and retaining qualified management to grow its business, which could have a material adverse effect on the Corporation's business and financial condition. The Corporation is dependent on the services of key executives and other highly skilled personnel focused on advancing its corporate objectives as well as the identification of new opportunities for growth and funding. The loss of these persons or its inability to attract and retain additional highly skilled employees required for its activities may have a material adverse effect on the Corporation's business and financial condition. Further, while certain of the Corporation's officers and directors have experience in the exploration development and operation of mineral properties, the Corporation remains highly dependent upon contractors and third parties in the performance of their exploration and development activities. There can be no guarantee that such contractors and third parties will be available to carry out such activities on behalf of the Corporation or be available upon commercially acceptable terms.

There can be no assurance that Osisko Development's management team will be successful in implementing its strategy (including as set out in this Annual Information Form) or that past results will be reproduced going forward. The management team may experience difficulties in effecting key strategic goals such as the growth and investment in tier one assets, tier two assets and strategic assets, the sale of non-core assets or the development of exploration projects. The performance of the Corporation's operations could be adversely affected if its management team cannot implement the stated business strategy effectively.


Certain directors and officers of the Corporation also serve as directors and officers of other companies involved in natural resource exploration and development; consequently, there is a possibility that such directors and officers will be in a position of conflict of interest. Any decision made by such directors and officers involving the Corporation will be made in accordance with their duties and obligations to deal fairly and in good faith with the Corporation and such other companies. In addition, such directors will declare, and refrain from voting on, any matter in which such directors may have a material conflict of interest.

While the Corporation has good relations with its employees, there can be no assurance that it will be able to maintain positive relationships with its employees. In addition, relations between the Corporation and its employees may be impacted by regulatory or governmental changes introduced by the relevant authorities in whose jurisdictions the Corporation carries on business as well as by the COVID-19 pandemic. Adverse changes in such legislations or in the relationship between the Corporation and its employees could have a material adverse impact on the Corporation's business, results of operations and financial condition.

The Corporation could be held responsible for certain events including environmental pollution, cave-ins or other hazards against which a corporation such as the Corporation cannot insure or against which it may elect not to insure, taking into consideration the importance of the premiums or other reasons. The payment of amounts relating to liability of the aforementioned hazards could cause the loss of the Corporation's assets.

Mineral resource and mineral reserve figures are only estimates. Mineral resource and mineral reserve estimates have inherent uncertainty. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. While the Corporation believes that the mineral resource and mineral reserve estimates, as applicable, in respect of properties in which the Corporation holds a direct interest reflect best estimates, the estimating of mineral resources and mineral reserves is a subjective process and the accuracy of mineral resource and mineral reserve estimates is a function of the quantity and quality of available data, the accuracy of statistical computations, and the assumptions used and judgments made in interpreting available engineering and geological information. There is significant uncertainty in any mineral resource and mineral reserve estimate and the actual deposits encountered and the economic viability of a deposit may differ materially from estimates. Estimated mineral resources and mineral reserves may have to be re-estimated based on changes in prices of gold or other minerals, further exploration or development activity or actual production experience. This could materially and adversely affect estimates of the volume or grade of mineralization, estimated recovery rates or other important factors that influence such estimates. In addition, mineral resources are not mineral reserves and there is no assurance that any mineral resource estimate will ultimately be reclassified as proven or probable mineral reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability.

Unanticipated metallurgical processing problems may occur during operations, including, without limitation, mechanical problems with milling or extraction equipment, unexpected grade anomalies in processed material, contaminants in processing or processed material, and the inability to operate tested processes at scale which can lead to lower metallurgical recoveries than expected and delay and impede operations, which may affect the profitability of the Cariboo Project. In addition, further metallurgical testing or operations may determine that the metals cannot be extracted as economically as anticipated.


The Corporation's operations are subject to financing risks and additional financing may result in dilution or partial sale of assets. At the present time, the Corporation has exploration and development assets which may generate periodic revenues through test mining but has no mines in the commercial production stage. The Corporation's ability to explore for and find potential economic projects, and then to bring them into production is highly dependent upon its ability to raise equity and debt capital in the financial markets. Any projects that the Corporation develops will require significant capital expenditures. Currently, the Corporation does not have any producing projects and no sources of revenue and any projects it develops will require significant capital expenditures. As a result, the Corporation may be required to seek additional sources of debt and equity financing in the near future. To obtain such funds, the Corporation may sell additional securities including, but not limited to, the Corporation's shares or some form of convertible security, the effect of which could result in a substantial dilution of the equity interests of the Corporation's shareholders. Alternatively, the Corporation may also sell a part of its interest in an asset in order to raise capital. There is no assurance that the Corporation will be able to raise the funds required to continue its exploration programs and finance the development of any potentially economic deposit that is identified on acceptable terms or at all. The failure to obtain the necessary financing could have a material adverse effect on the Corporation's growth strategy, results of operations, financial condition and project scheduling. The development of the Cariboo Project remains subject to, among other things, Osisko Development securing adequate financing on conditions acceptable to it.

The Corporation has negative cash flow from operations. If additional funds are needed, there is no assurance that additional capital or other types of financing will be available or that these financings will be on terms at least as favourable to the Corporation as those previously obtained, or at all.

From time to time, Osisko Development examines opportunities to acquire additional mining assets and businesses. Any acquisition that the Corporation may choose to complete may be of a significant size, may change the scale of the Corporation's business and operations, and may expose Osisko Development to new or greater geographic, political, operating, financial, legal and geological risks. The Corporation's success in its acquisition activities depends on its ability to identify suitable acquisition candidates, negotiate acceptable terms for any such acquisition and integrate the acquired operations successfully with those of the Corporation. Any acquisitions and any potential acquisitions would be accompanied by risks. For example, there may be a significant change in commodity prices after the Corporation has committed to complete the transaction and established the purchase price or exchange ratio; a mineralized material body may prove to be below expectations; Osisko Development may have difficulty integrating and assimilating the operations and personnel of any acquired companies (which may be compounded by geographical separation, unanticipated costs, and the loss of key employees), realizing anticipated synergies and maximizing the financial and strategic position of the combined enterprise, and maintaining uniform standards, policies and controls across the organization; the integration of the acquired business or assets may divert the attention of management or disrupt the Corporation's ongoing business and its relationships with employees, customers, suppliers and contractors; and the acquired business or assets may have unknown liabilities which may be significant. In the event that the Corporation chooses to raise debt capital, it may reduce its financial flexibility as the Corporation services interest and debt repayments. If the Corporation chooses to use equity as consideration for any such acquisition, existing shareholders may suffer dilution. In addition, many companies in the mining industry have recently seen substantial downward pressure on their equity values after announcing significant acquisitions. There is a risk that if Osisko Development was to announce a significant acquisition, the value of the Corporation's common shares could decrease over the short-, medium- and/or long-term. The Corporation cannot assure that it can complete any acquisition or business arrangement that it pursues, or is pursuing, on favorable terms, or that any acquisitions or business arrangements completed will ultimately benefit the Corporation's business. There can be no assurance that the Corporation would be successful in overcoming the risks noted above or any other problems encountered in connection with such acquisitions.


The potential profitability of mineral properties is dependent upon many factors beyond the Corporation's control. For instance, world prices of and markets for minerals are unpredictable, highly volatile, potentially subject to governmental fixing, pegging and/or controls and respond to changes in domestic, international, political, social and economic environments. Another factor is that rates of recovery of minerals from mined mineralized material (assuming that such mineral deposits are known to exist) may vary from the rate experienced in tests and a reduction in the recovery rate will adversely affect profitability and, possibly, the economic viability of a property. Profitability also depends on the costs of operations, including costs of labour, equipment, electricity, environmental compliance or other production inputs. Such costs will fluctuate in ways the Corporation cannot predict and are beyond the Corporation's control, and such fluctuations will impact on profitability and may eliminate profitability altogether. Additionally, due to worldwide economic uncertainty, (i) the availability and cost of funds for development and other costs have become increasingly difficult, if not impossible, to project; and (ii) global supply chain may also be negatively affected. These changes and events may materially affect the financial performance of the Corporation and they may also negatively impact the project schedule.

The Corporation may be subject to liability or sustain loss for certain risks and hazards against which it does not or cannot economically insure. Mining is capital intensive and subject to a number of risks and hazards, including environmental pollution, accidents or spills, industrial and transportation accidents, labour disputes, changes in the regulatory environment, natural phenomena (such as inclement weather conditions, earthquakes, pit wall failures and cave-ins) and encountering unusual or unexpected geological conditions. Such risk and hazards might impact the Corporation's business. Consequently, many of the foregoing risks and hazards could result in damage to, or destruction of, the Corporation's mineral properties or future processing facilities, personal injury or death, environmental damage, delays in or interruption of or cessation of their exploration or development activities, delay in or inability to receive required regulatory approvals, or costs, monetary losses and potential legal liability and adverse governmental action. The Corporation may be subject to liability or sustain loss for certain risks and hazards against which it does not or cannot insure or against which it may reasonably elect not to insure because of the cost. This lack of insurance coverage could result in material economic harm to the Corporation.

The Contributed Osisko Assets are not stand-alone publicly-listed entities. As a result, all historical information relating to the Contributed Osisko Assets presented in this AIF has been provided in reliance on the information made available by Osisko Gold Royalties. Although the Corporation has no reason to doubt the accuracy or completeness of the information provided by Osisko Gold Royalties, any inaccuracy or omission in such information contained in this AIF could result in unanticipated liabilities or expenses, increase the costs to expected to be borne by the Corporation or adversely affect the operational plans of the Corporation and its result of operations and financial condition.

As a significant shareholder, Osisko Gold Royalties is entitled to exercise significant influence over all matters requiring approval of the shareholders of the Corporation, including the election of directors, determination of significant corporate actions, amendments to the Corporation's articles of incorporation and the approval of any business combinations, mergers or takeover attempts, in a manner that could conflict with the interests of other shareholders of the Corporation.


The Corporation completed the Reverse Takeover Transaction to create a growth-oriented developer with prospective gold camps in Canada and Mexico. The Corporation may be unable to successfully integrate the businesses of the Contributed Osisko Assets and realize the anticipated benefits of the Reverse Takeover Transaction. Achieving the benefits of the Reverse Takeover Transaction will depend in part on the ability of the Corporation to effectively capitalize on its scale, to realize the anticipated capital, operating and financial synergies, to profitably sequence the growth prospects of its asset base and to maximize the potential of its improved growth opportunities and capital funding opportunities as a result of combining the businesses and operations the Contributed Osisko Assets. A variety of factors, including those risk factors set forth in this AIF may adversely affect the ability of the Corporation to achieve the anticipated benefits of the Reverse Takeover Transaction.

There is no assurance that the rights of ownership and other rights in concessions held by the Corporation are not subject to loss or dispute, particularly because such rights may be subject to prior unregistered agreements or transfers or other land claims and may be affected by defects and adverse Laws and regulations which have not been identified by the Corporation. There is no guarantee that title to the properties will not be challenged or impugned. The Corporation's property interest may be subject to prior unregistered agreements or transfers or native land claims and title may be affected by undetected defects.

The Corporation may require the consent or approval of third parties in order to enter into or complete certain agreements or transaction necessary in the course of its operations. There can be no assurance that such third parties, which may include shareholders, regulatory bodies or entities with an interest in the applicable property or others (including water supply management and availability), will provide the required approval or consent or enter into such agreement in a timely manner, or at all. Failure to obtain such third party approval may result in a material adverse effect on the Corporation's operations and financial condition.

Maintaining a positive relationship with the communities in which the Corporation operates is critical to its business operations and the development of the Cariboo Project.

The Corporation may come under pressure to demonstrate that other stakeholders (including employees, communities surrounding operations and the countries in which they respectively operate) benefit and will continue to benefit from its commercial activities, and/or that it operates in a manner that will minimize any potential damage or disruption to the interests of those stakeholders.

Erosion of social licence or activities of third parties seeking to call into question social licence may have the effect of slowing down the development of new projects and potentially may increase the cost of constructing and operating these projects. Productivity may be reduced due to restriction of access, proceedings initiated or delays in permitting and there may also be extra costs associated with improving the relationship with the surrounding communities.

While the Corporation is committed to operating in a socially responsible manner and working towards entering into agreements in satisfaction of such requirements that its efforts will be successful, in which case interventions by third parties, there is no guarantee that its efforts will be successful, in which case interventions by third parties could have a material adverse effect on the Corporation's business, financial position and operations.


The operations of the Corporation require licences and permits from various governmental authorities. Such licences and permits are subject to changes in regulations and in various operating circumstances. There can be no guarantee that the Corporation will be able to obtain all necessary licences and permits that may be required to maintain its business operations and mining activities including the development of the Cariboo Project. In addition, if the Corporation proceeds to production on any exploration property, it must obtain and comply with permits and licences which may contain specific conditions concerning operating procedures, water use, the discharge of various materials into or on land, air or water, waste disposal, spills, environmental studies, abandonment and restoration plans and financial assurances. There can be no assurance that the Corporation will be able to obtain such permits and licences or that it will be able to comply with any such conditions.

Although the Corporation's normal data verification procedures have been employed in connection with the calculations of the mineral resource estimation on the Cariboo Project and sampling, analytical and test data underlying the estimated mineral resources have been verified by qualified persons, an extensive amount of historical data and records on the Cariboo Project was relied on in establishing these calculations. The Corporation cannot provide any comfort that it can rely upon, verify or necessarily authenticate such historical information in connection with its exploitation of the Cariboo Project. The Corporation cannot guarantee that the historical records that are available are free from material errors or inaccuracies. While the Corporation believes that the mineral resource and mineral reserve estimates in respect of its Cariboo Project reflect best estimates, the estimating of mineral resources is a subjective process and the accuracy of mineral resource estimate is a function of the quantity and quality of available data, the accuracy of statistical computations, and the assumptions used and judgments made in interpreting available engineering and geological information. There is significant uncertainty in any mineral resource estimate and the actual deposits encountered and the economic viability of a deposit may differ materially from estimates.

Reputational risk is the risk that an activity undertaken by an organization or its representatives will impair its image in the community or lower public confidence in it, resulting in loss of revenue, legal action or increased regulatory oversight and loss of valuation and share price. Possible sources of reputational risk could come from, but not limited to, operational failures, non-compliance with laws and regulations, or leading an unsuccessful financing. In addition to its risk management policies, controls and procedures, the Corporation has a formal Code of Ethics to help manage and support Osisko Development's reputation.

The availability of skilled labour, electricity and other necessary supplies at an economic cost cannot be assured. These are integral requirements for exploration, development and production facilities on mineral properties. Prices for goods and services will fluctuate in relation to the level of investment in the mining sector; it is reasonable to expect that increased demand could impact the Corporation's future economic projections and competitiveness, as it may entail a meaningful increase in costs for various goods and services.

Improvements in the economic conditions for the mining industry as a whole will typically result in increases to both the costs of planned exploration and development activities, which must also be factored into economic models used in projections for future development and potential operations. Increased demand for, and costs of, goods or services could result in delays if they cannot be obtained in a timely manner due to inadequate availability, and may cause scheduling difficulties and delays due to the need to coordinate their availability, any of which could materially increase project exploration, development and/or construction costs. These factors could have a material adverse impact on the Corporation's operations and profitability.


Osisko Development is dependent upon information technology systems in the conduct of its operations. The Corporation could be adversely affected by network disruptions from a variety of sources, including, without limitation, computer viruses, security breaches, cyber-attacks, natural disasters and defects in design. The Corporation's operations also depend on the timely maintenance, upgrade and replacement of networks, equipment information technology systems and software, as well as pre-emptive expenses to mitigate the risk of failure. Any of these or other events could result in information system failures, delays and/or increases in capital expenditures. Given the unpredictability of the timing, nature and scope of information technology disruptions, the Corporation could potentially be subject to production downtimes, operational delays, destruction or corruption of data, any of which could have a material adverse effect on the Corporation's cash flows, competitive position, financial condition or results of operations. From time to time, Osisko Development pursues investments and initiatives to improve the productivity and efficiency of existing systems and operations, including through investments in digital technologies. There can be no certainty that some or any of such investments and initiatives will meet the Corporation's capital allocation objectives.  In addition, certain of such investments and initiatives are still in the early stages of evaluation, and additional engineering and other analysis is required to fully assess their impact. Further, there can be no certainty as to the time required for the Corporation to extract value from these investments or initiatives, or that the Corporation will achieve any anticipated savings or efficiency improvements.

The Corporation's interest in the Cariboo Project will require adequate infrastructure, such as roads, bridges and sources of power and water, for future exploration and development activities. The lack of availability of these items on terms acceptable to the Corporation or the delay in availability of these items could prevent or delay exploitation or development of the Corporation's mineral properties. Natural resource exploration, development, processing and mining activities are dependent on the availability of mining, drilling and related equipment in the particular areas where such activities are conducted. A limited supply of such equipment or access restrictions may affect the availability of such equipment to the Corporation and may delay exploration, development or extraction activities. Certain equipment may not be immediately available, or may require long lead time orders. A delay in obtaining necessary equipment could have a material adverse effect on the Corporation's operations and financial results.

The Corporation is subject to litigation arising in the normal course of business and may be involved in disputes with other parties in the future which may result in litigation.  The causes of potential future litigation cannot be known and may arise from, among other things, business activities, environmental laws, volatility in stock price or failure or alleged failure to comply with disclosure obligations. The results of litigation cannot be predicted with certainty. If the Corporation is unable to resolve litigation favourably, either by judicial determination or settlement, it may have a material adverse effect on the Corporation's financial performance and results of operations.

In the event of a dispute involving the foreign operations of the Corporation, the Corporation may be subject to the exclusive jurisdiction of foreign courts or may not be successful in subjecting foreign persons to the jurisdiction of courts in Canada. The Corporation's ability to enforce its rights could have a material adverse effect on its future cash flows, earnings, results of operations and financial condition.


General Risk Factors

The Corporation recognizes that climate change is as much an international as it is a community concern which may affect its business and operations, directly or indirectly. The continuing rise in global average temperatures has created varying changes to regional climates across the globe, resulting in risks to equipment and personnel. Governments at all levels are moving towards enacting legislation to address climate change by regulating carbon emissions and energy efficiency, among other things. Where legislation has already been enacted, regulation regarding emission levels and energy efficiency are becoming more stringent. The mining industry as a significant emitter of greenhouse gas emissions is particularly exposed to these regulations. Costs associated with meeting these requirements may be subject to some offset by increased energy efficiency and technological innovation; however, there is no assurance that compliance with such legislation will not have an adverse effect on the Corporation's business, results of operations, financial condition and its share price.

Extreme weather events (such as prolonged drought or freezing, increased flooding, increased periods of precipitation and increased frequency and intensity of storms) have the potential to disrupt operations and the transport routes. Extended disruptions could result in interruption to production which may adversely affect the Corporation's business, results of operations, financial condition and its share price.

Climate change is perceived as a threat to communities and governments globally. Stakeholders may increase demands for emissions reductions and call upon mining companies to better manage their consumption of climate-relevant resources (hydrocarbons, water etc.). This may attract social and reputational attention towards operations, which could have an adverse effect on the Corporation's business, results of operations, financial condition and its share price.

The Corporation may face risks related to health epidemics and other outbreaks of communicable diseases, which could significantly disrupt its operations and may materially and adversely affect its business and financial conditions.

To that end, the Corporation's business could be adversely impacted by the effects of the coronavirus or other epidemics. In December 2019, a novel strain of the coronavirus (COVID-19) emerged in China and the virus has now spread to several other countries, including Canada and the U.S., and infections have been reported globally. In March 2020, the World Health Organization recognized COVID-19 as a global pandemic, prompting many national, regional, and local governments, including ones in the markets in which the Corporation will operate, to implement preventative or protective measures, such as travel and business restrictions, temporary store closures, and wide-ranging quarantines and stay-at-home orders. The COVID-19 pandemic has resulted in a widespread global health crisis that adversely affects global economies and financial markets.

The extent to which COVID-19 impacts the Corporation's business, including its operations and the market for its securities, will depend on future developments, which are highly uncertain and cannot be predicted at this time, and include the duration, severity and scope of the outbreak and the actions taken to contain or treat the COVID-19 outbreak. In particular, the continued spread of COVID-19 globally could materially and adversely impact the Corporation's business including without limitation, employee health, workforce productivity, increased insurance premiums, continued limitations on travel, the availability of industry experts and personnel, restrictions to its drill program and/or the timing to process drill and other metallurgical testing, and other factors that will depend on future developments beyond the Corporation's control, which may have a material and adverse effect on the its business, financial condition and results of operations.


There can be no assurance that the Corporation's personnel or its contractors' personnel will not be impacted by these pandemic diseases and ultimately see its workforce productivity reduced or incur increased safety and medical costs / insurance premiums as a result of these health risks.

In recent years, criminal activity and violence have increased and continue to increase in parts of Mexico. The mining sector has not been immune to the impact of criminal activity and violence, including in the form of kidnapping for ransom and extortion by organized crime, direct armed robberies of mining operations and the theft and robbery of supply convoys, including specifically for diesel. The Corporation takes measures to protect employees, property and production facilities from these and other security risks. There can be no assurance, however, that security incidents, in the future, will not have a material adverse effect on our operations.

The Corporation is subject to currency risks. The Corporation's functional currency is the Canadian dollar, which is exposed to fluctuations against other currencies. The Corporation's activities are located in Canada and Mexico, and as such many of its expenditures and obligations are denominated in U.S. dollars and Mexican pesos. The Corporation maintains its principal office in Montreal, Québec, Canada, and maintains cash accounts in Canadian dollars, U.S. dollars and Mexican pesos and has monetary assets and liabilities in Canadian dollars, U.S. dollars and Mexican pesos.

The Corporation's assets and liquidities are significantly affected by changes in the Canadian/U.S. dollar and Canadian/Mexican peso exchange rates. Most expenses are currently denominated in Canadian, U.S. dollars and Mexican pesos. Exchange rate movements can therefore have a significant impact on the Corporation's costs. The appreciation of non-Canadian dollar currencies against the Canadian dollar can increase the costs of the Corporation's activities.

The development of the Corporation's properties is dependent on the future prices of minerals and metals. As well, should any of the Corporation's properties eventually enter commercial production, the Corporation's profitability will be significantly affected by changes in the market prices of minerals and metals.

The price of precious and base metal prices can fluctuate widely and is affected by numerous factors including demand, inflation, strength of the U.S. dollar and other currencies, interest rates, gold sales by the central banks, forward sales by producers, global or regional political or financial events, and production and cost levels in major producing regions. In addition, prices are sometimes subject to rapid short-term changes because of speculative activities. Even if the Corporation discovers commercial amounts of metals on its properties, it may not be able to place the property into commercial production if precious and base metal prices are not at sufficient levels.

The price of the Common Shares may be affected by global macroeconomic developments and market perceptions of the attractiveness of particular industries and location of assets, which may increase the volatility of Common Share prices. The price of the Common Shares will also be affected by the Corporation's financial conditions or results of operations as reflected in its liquidity position and earnings reports.

Other factors unrelated to the Corporation's operations and performance that may have an affect on the price of the Common Shares include: the lessening in trading volume and general market interest in the Corporation's securities may affect an investor's ability to trade significant numbers of shares; the size of the Corporation's public float may limit the ability of some institutions to invest in the Corporation's securities; and a substantial decline in the price of the Common Shares that persists for a significant period of time could cause the Corporation's securities to be delisted further reducing market liquidity.


As a result of any of these factors, the market price of the Common Shares at any given point in time may not accurately reflect the Corporation's long-term value. Securities class action litigation often has been brought against companies following periods of volatility in the market price of their securities. The Corporation may in the future be the target of similar litigation. Securities litigation could result in substantial costs and damages and divert management's attention and resources.

No dividends on the Common Shares have been paid to date. The Corporation anticipates that, for the foreseeable future, it will retain future earnings and other cash resources for the operation and development of its business. Payment of any future dividends will be at the discretion of the Board after taking into account many factors, including the Corporation's operating results, financial condition, and current and anticipated cash needs.

As a publicly listed corporate entity, the Corporation is subject to evolving rules and regulations promulgated by a number of governmental and self-regulated organizations, including the Canadian Securities Administrators, the TSXV, and the International Accounting Standards Board, which govern corporate governance and public disclosure regulations. These rules and regulations continue to evolve in scope and complexity creating many new requirements, which increase compliance costs and the risk of non-compliance. The Corporation's efforts to comply with these rules and obligations could result in increased general and administration expenses and a diversion of management time and attention from financing, development, operations and, eventually, revenue-generating activities.

DIVIDENDS

Since its incorporation, Osisko Development has not paid any cash dividends on its outstanding common shares. Any future dividend payment will depend on Osisko Development's financial needs to fund its exploration programs and its future financial growth and any other factors that the board deems necessary to consider in the circumstances. It is highly unlikely that any dividends will be paid in the next financial year. Osisko Development is limited in its ability to pay dividends on its common shares by generally applicable restrictions under corporate law referred to "solvency tests". See "Risk Factors".

DESCRIPTION OF CAPITAL STRUCTURE

Common Shares

Osisko Development is authorized to issue an unlimited number of common shares without nominal or par value.

The rights, privileges, conditions and restrictions attaching to the Common Shares, as a class, are equal in all respects and include the following rights.

Dividends

The holders of the Common Shares shall have the right to receive, if, as and when declared by the Board, any dividend on such dates and for such amounts as the Board may from time to time determine.


Participation in case of Dissolution or Liquidation

The holders of the Common Shares shall have the right, upon the liquidation, dissolution or winding-up of Osisko Development, to receive the remaining property of Osisko Development pro-rata among all holders of Common Shares.

Right to Vote

The holders of the Common Shares shall have the right to one (1) vote per share at any meeting of the shareholders of Osisko Development.

As of May 19, 2022, 47,593,251 post-Consolidation Common Shares were issued and outstanding.

MARKET FOR SECURITIES

Trading Price and Volume

Common Shares

The Common Shares began their listing on the TSX-V following the Corporation's Reverse Takeover Transaction in December 2020. The following table sets forth the price range and trading volume for the Common Shares on the TSX-V, listed under the symbol "ODV", for the most recently completed financial year.             

Date

High

($)

Low

($)

Volume

May 4, 2022 - May 19, 2022

14.99

9.51

191,079

Mai 1, 2022 - May 3, 2022

4.35

4.03

105,720

April 2022

4.80

3.98

2,402,221

March 2022

4.74

4.10

4,172,794

February 2022

5.29

4.26

3,933,122

January 2022

5.02

4.08

664,917

December 2021

4.97

3.89

763,404

November 2021

5.68

4.84

596,738

October 2021

5.80

5.05

507,195

September 2021

5.70

5.00

399,468

August 2021

6.35

5.01

588,514

July 2021

7.07

6.06

521,609

June 2021

7.37

6.76

447,190

May 2021

7.74

6.95

571,210

April 2021

7.67

7.07

333,617

March 2021

8.29

7.2

556,557

February 2021

9.00

7.54

867,931

* Figures shown as from May 4, 2022 are post-Consolidation.


The closing price of the Common Shares on the TSX-V on May 19, 2022 was $10.10.

There are 14,789,373 Warrants that were listed under the symbol “ODV.WT”, and began trading on TSX-V on October 25, 2021. The following table sets forth the price range and trading volume for the Warrants on the TSX‑V for the periods listed below.



Date

High

($)

Low

($)

Volume

May 4, 2022 - May 19, 2022*

0.50

0.35

37,707

May 1, 2022 - May 3, 2022

0.61

0.45

7,600

April 2022

0.85

0.60

30,988

March 2022

0.55

0.40

46,704

February 2022

0.75

0.55

31,958

January 2022

0.60

0.50

43,413

December 2021

0.55

0.55

32,250

November 2021

0.60

0.89

37,431

October 25, 2021 - October 31, 2021

0.70

0.70

12,700

 

As of May 19, 2022, there are an aggregate of 24,315,225 Warrants outstanding. As a result of the Consolidation that took effect on May 4, 2022 of three (3) pre-Consolidation Common Shares for one (1) post-Consolidation Common Share, each Warrant entitles the holder to purchase one-third (1/3) of a post-Consolidation Common Share. Accordingly, a Warrant holder will be required to exercise three (3) whole Warrants in order to purchase one whole post Consolidation Common Share.

The Warrants were issued pursuant to four warrant indentures dated (i) October 29, 2020, as supplemented on December 30, 2020, among the Corporation, Osisko Development Holdings Inc. and TSX Trust Company, as warrant agent (the “Warrant Agent”); (ii) December 30, 2020 between the Corporation and the Warrant Agent; (iii) January 8, 2021 between the Corporation and the Warrant Agent; and (iv) February 5, 2021 between the Corporation and the Warrant Agent. In connection with the listing of the Warrants on the TSX‑V, each of the warrant indenture were amended by a supplemental warrant indenture dated September 30, 2021 to merge all of the outstanding Warrants from the warrant indenture to the new warrant indenture with the effect of treating the outstanding Warrants as a single class of purposes of the listing of the Warrants on the TSX-V and as a single mandate for the Warrant Agent.

In connection with the Non-Brokered Offering and the Brokered Offering, the Corporation entered into a warrant indenture dated March 2, 2022 with the Warrant Agent providing for the issue of up to 23,258,750 Warrants upon conversion of the Subscription Receipts, as well as a supplemental warrant indenture dated March 29, 2022.

Prior Sales - Securities Not Listed or Quoted on a Marketplace

The only securities of the Corporation that were outstanding as of December 31, 2021 but not listed or quoted on a marketplace are the Options, the RSUs and the DSUs.

The price at which such securities have been issued by Osisko Development during the most recently completed financial year, the number of securities of the class issued at that price and the date on which such securities were issued are detailed hereinbelow.

Options

The following table sets forth the number of Options granted during the most recently completed financial year, the date of grant and the exercise price thereof. As of the date of this AIF, the Corporation has granted a total of 2,204,700 pre-Consolidation Options pursuant to the Option Plan and 2,065,600 pre-Consolidation Options are outstanding as at May19, 2022.

Date of Grant

Number of
pre-Consolidation Options

Pre-Consolidation Exercise Price
Per Option

June 23, 2021

547,100

$7.10

August 16, 2021

149,700

$5.63

November 12, 2021

263,100

$5.40





RSUs

The following table sets forth the number of RSUs granted during the most recently completed financial year, the date of grant and the grant price thereof. As of the date of this AIF, the Corporation has granted a total of 1,057,450 pre-Consolidation RSUs pursuant to the RSU Plan and 1,036,180 pre-Consolidation RSUs are outstanding as at May 19, 2022. RSUs provide the right to receive payment in the form of post-Consolidation Common Shares, cash or a combination of post-Consolidation Common Shares and in cash, at the Corporation's discretion.

Date of Grant

Number of pre-Consolidation
RSUs

Pre-Consolidation Grant Price
Per RSU

June 2, 2021

458,450

$7.29

June 23, 2021

485,600

$7.10

August 16, 2021

113,400

$5.63


DSUs

The following table sets forth the number of DSUs granted during the most recently completed financial year, the date of grant and the grant price thereof. As of the date of this AIF, the Corporation has granted a total of 239,350 pre-Consolidation DSUs pursuant to the DSU Plan. DSUs provide the right to receive payment in the form of Common Shares, of which a maximum of 3,000,000 pre-Consolidation Common Shares are reserved for issuance, cash or a combination of post-Consolidation Common Shares and cash, at the Corporation's discretion:

Date of Grant

Number of
pre-Consolidation DSUs

Pre-Consolidation
Common Share Price at
the time of Grant

May 14, 2021

41,700

$7.14

May 20, 2021

27,030

$7.40

ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTION ON TRANSFER

In connection with the Reverse Takeover Transaction, the TSX-V has granted a waiver from the requirements under the TSX-V Policy 5.4 - Escrow, Vendor Consideration and Resale Restrictions, which subjects securities of the Corporation held by directors, officers and Promoters of the Corporation to an escrow.

DIRECTORS AND OFFICERS

Name, Place of Residence and Principal Occupation

The following table sets out the directors and officers of the Corporation as at December 31, 2021, together with their province or state and country of residence, positions and offices held, principal occupations during the last five (5) years and the years in which they were first appointed as directors and/or officers of the Corporation.



Name and place of
residence

Principal occupation during the last five (5) years (1)

 

Director
and/or Officer
since

Sean Roosen(2)

Québec, Canada

Chair of the Board of Directors and Chief Executive Officer

Chair of the Board of Directors and CEO of Osisko Development (November 2020 - Present).

Executive Chair of the Board of Directors of Osisko Gold Royalties (November 2020 - Present).

Chair of the Board of Directors and CEO of Osisko Gold Royalties (2014 - November 2020).

Chair of the Board of Directors and CEO of Osisko Green Acquisition Limited

2020

Charles E. Page(3)(4)

Ontario, Canada

Lead Director

Corporate Director (2014 - Present).

Professional Geologist.

Director of Osisko Gold Royalties. (2014 - Present)

2020

John Burzynski(2)

Ontario, Canada

Director

Executive Chairman, Chief Executive Officer and Director of Osisko Mining (September 2020 - Present).

President and Chief Executive Officer and Director of Osisko Mining (August 2015 - September 2020).

2020

Joanne Ferstman(3)(5)

Ontario, Canada

Director

Corporate Director on a number of public company boards (2014 - Present).

2020

Marina Katusa(2)

British Columbia, Canada

Director

Director Corporate Development and Strategy, GCT Global Container Terminals Inc. from 2013 to 2017.

2021

Michèle McCarthy(4)(5)

Ontario, Canada

Director

President of McCarthy Law Professional Corporation (2003 - Present).

President and CEO of Independent Review Inc. (2019 - Present).

2020

Duncan Middlemiss(3)(5)

Ontario, Canada

Director

President and CEO of Wesdome Gold Mines Ltd. (2016 - Present).

2020

Éric Tremblay(3)(4)

Québec, Canada

Director

COO of Dalradian Resources Inc. (2015 - Present).

2020

Chris Lodder

Ontario, Canada

President

President of Osisko Development (November 2020 - Present).

President and CEO of Barkerville (2016 - Present).

President and Founder of Talisker Exploration Services Inc.

2020

Alexander Dann

Ontario, Canada

Chief Financial Officer & VP Finance

CFO and Vice President, Finance of Osisko Development since February 2021. Principal of The CFO Centre from July 2020 to February 2021. CFO of The Flowr Corporation from November 2017 to March 2020.

2021

André Le Bel

Québec, Canada

Corporate Secretary

Corporate Secretary of Osisko Development. He is also the Vice President, Legal Affairs and Corporate Secretary of Falco Resources and the Vice President, Legal Affairs and Corporate Secretary of Osisko Gold Royalties.

2021

Maggie Layman

British Columbia, Canada

Vice President, Exploration

Vice President, Exploration of Osisko Development (November 2020 - Present).

Vice President, Exploration of Barkerville (2018 - Present). Manager, Exploration of Barkerville (2015 - 2018).

2020

Jean-François Lemonde

Québec, Canada

Vice President, Investor Relations

Vice President, Investor Relations of Osisko Development. Managing Director - Institutional equity sales at Desjardins Capital Markets (2016 - 2020).

2020




Name and place of
residence

Principal occupation during the last five (5) years (1)

 

Director
and/or Officer
since

Luc Lessard

Québec, Canada

Chief Operating Officer

Chief Operating Officer of Osisko Development (November 2020 - Present).

President and CEO of Falco Resources Ltd. (2014 - Present).

Senior Vice President, Technical Services of Osisko Gold Royalties (2015 - 2020).

2020

Chris Pharness

British Columbia, Canada

Vice President, Sustainable Development

Vice President, Sustainable Development of Osisko Development (November 2020 - Present).

Vice President, Environment & Sustainability of Barkerville (2016 - Present).

2020

Martin Ménard

Québec, Canada

Vice-President, Engineering and Construction

Vice-President, Engineering and Construction of Osisko Development (August 2021 - Present). Chief Operating Officer at AEX Gold Inc. (2019 - 2021).

2021

François Vézina
Québec, Canada

Senior Vice President, Project Development, Technical Services & Environment

Senior Vice President, Project Development, Technical Services & Environment of Osisko Development (November 2020 - Present).

Vice President, Technical Services of Falco Resources (2017 - Present).

Vice President, Project Development and Environment (2021 - Present)

COO of Barkerville (2018 - 2019).

Vice President, Projects of Barkerville (2017-2018).

2020

Notes:

(1) The information as to principal occupations has been furnished by each director and/or officer individually.

(2) Member of the Environmental and Sustainability Committee. Mr. Éric Tremblay is the Chair of the Environmental and Sustainability Committee.

(3) Member of the Human Resources Committee. Mr. Duncan Middlemiss is the Chair of the Human Resources Committee.

(4) Member of the Corporate Governance and Nomination Committee. Mr. Éric Tremblay is the Chair of the Governance and Nomination Committee.

(5) Member of the Audit and Risk Committee. Ms. Michèle McCarthy is the Chair of the Audit and Risk Committee.

Sean Roosen, Chair of the Board of Directors and Chief Executive Officer

Mr. Sean Roosen is the Chair of the Board of Directors and Chief Executive Officer of Osisko Development. Mr. Roosen is the Executive Chair of Osisko Gold Royalties and was Chair and Chief Executive Officer of Osisko Gold Royalties from June 2014 to November 2020. Mr. Roosen was a founding member of Osisko Mining Corporation (2003) and of EurAsia Holding AG, a European venture capital fund. Mr. Roosen has over 30 years of progressive experience in the mining industry. As founder, president, chief executive officer and director of Osisko Mining Corporation, he was responsible for developing the strategic plan for the discovery, financing and development of the Canadian Malartic mine. He also led the efforts for the maximization of shareholders' value in the sale of Osisko Mining Corporation, which resulted in the creation of Osisko Gold Royalties. Mr. Roosen is an active participant in the resource sector and in the formation of new companies to explore for mineral deposits both in Canada and internationally. In 2017, Mr. Roosen received an award from Mines and Money Americas for best Chief Executive Officer in North America and was, in addition, named in the "Top 20 Most Influential Individuals in Global Mining". In prior years, he has been recognized by several organizations for his entrepreneurial successes and his leadership in innovative sustainability practices. Mr. Roosen is a graduate of the Haileybury School of Mines.  Mr. Roosen serves on the boards of directors of Osisko Mining Inc., as Chair and Chief Executive Officer of Osisko Development and as Chair and Chief Executive Officer of Osisko Green Acquisition Limited.  He previous served on the board of directors of Victoria Gold Corp. (2018 - 2021), Barkerville Gold Mines Ltd. (2015 - 2019), Condor Petroleum Inc. (2011-2019), Dalaradian Resources Inc. (2010 - 2018) and Falco Resources Ltd. (2014 - 2019).


Charles E. Page, Lead Director

Mr. Charles E. Page is a corporate director and has more than 40 years of experience in the mineral industry. During his career, Mr. Page has held progressive leadership roles in developing strategies to explore, finance and develop mineral properties in Canada and internationally. Mr. Page worked at Queenston Mining Inc. in various capacities, including President and Chief Executive Officer from 1990 to its sale to Osisko Mining Corporation in 2012. Mr. Page is a Director of Osisko Gold Royalties and the Lead Director of Osisko Development and also serves on the board of directors of Unigold Inc.  Mr. Page holds a Bachelor of Science degree in Geological Science from Brock University and a Master of Science degree in Earth Science from the University of Waterloo. He is a Professional Geologist registered in the province of Ontario and Saskatchewan and is also a Fellow of the Geological Association of Canada.

John Burzynski, Director

Mr. John Burzynski currently serves as the Executive Chairman, Chief Executive Officer and director of Osisko Mining Inc., and has been a director of Osisko Mining since its incorporation in February 2010. Mr. Burzynski is currently a director of Osisko Gold Royalties and, from June 2014 to August 2016, also served as the Senior Vice President, New Business Development of Osisko Gold Royalties. Mr. Burzynski is currently a director and Chairman of the Board of O3 Mining Inc. and a director of Osisko Green Acquisition Limited. Mr. Burzynski holds a Bachelor of Science (Honours) degree in Geology from Mount Allison University and a Master of Science in exploration and mineral economics from Queen's University. He is a registered P.Geo. in the province of Québec and has over 30 years of experience as a professional geologist on international mining and development projects. Mr. Burzynski will not be standing for re-election and his tenure as director will end on April 26, 2022 following the annual and special meeting of shareholders of the Corporation.

Joanne Ferstman, Director

Ms. Joanne Ferstman is a corporate director who has been serving on a number of public company boards and has over 20 years of progressive experience in the financial industry. She has been Lead Director of Osisko Gold Royalties since 2014. Ms. Ferstman currently serves as Chair of the board of Dream Unlimited Corp.  Ms. Ferstman was appointed to the Board of Directors of the Corporation as a nominee of Osisko Gold Royalties in accordance with the terms and conditions of an Investment Agreement.  She will not be standing for re-election and her tenure as director will end on April 26, 2022 following the annual and special meeting of shareholders of the Corporation. Ms. Ferstman also serves as a director of Cogeco Communications Inc. and ATS Automation Tooling Systems Inc. She was formerly a director of Aimia Inc. (June 2008 to June 2017) and Dream Office REIT (June 2003 to May 2018). Ms. Ferstman holds a Bachelor of Commerce and a Graduate degree in Public Accountancy from McGill University and is a Chartered Professional Accountant. Ms. Ferstman will not be standing for re-election and her tenure as director will end on April 26, 2022 following the annual and special meeting of shareholders of the Corporation.

Marina Katusa, Director

Ms. Marina Katusa has over fifteen years of business experience in areas including mineral exploration, research analysis, strategic planning, and corporate development. She earned a Masters of Business Administration (MBA) degree and a Bachelor of Science (BSc) degree in Geology/Earth & Ocean Science from the University of British Columbia.  She is currently a member of the Board of Directors of Silvercorp Metals Inc. and was previously on the Board of Family Services of Greater Vancouver.

Michèle McCarthy, Director

Ms. Michèle McCarthy is the President of McCarthy Law Professional Corporation and President and Chief Executive Officer of Independent Review Inc. She is an experienced corporate director and has significant experience in corporate restructuring and regulatory compliance. Ms. McCarthy is the Chair of the Audit and Risk Committee of Osisko Development Inc. and a director of Russell Investments Corporate Class Inc. and of Bitcoin Well as well as a director of private companies.  She was the Chair of the Boards of Sandy Lake Gold Inc., Big 8 Split Inc. TD Split Inc. and 5 Banc Split Inc. She also served as a director and member of the Audit Committee and Risk Management Committees at Equity Financial Holdings Inc. She is the former Chair of the Toronto Port Authority and member of the Small Business Advisory Committee of the Ontario Securities Commission.


Within the not-for-profit sector, Ms. McCarthy serves on the boards of the McMichael Foundation, The Queen's Own Rifles of Canada (Senate) and the Honourable Company of Freemen of the City of London in North America.  She also served on the boards of Canada's National Ballet School, the St. George's Society of Toronto, the University of Toronto (Trinity College) and the Humber Memorial Hospital.

Ms. McCarthy holds an LLB and LLM in Securities Law from Osgoode Hall and has obtained the ICD.D designation from the Institute of Corporate Directors and the CDI.D Certified Board Candidate in the USA.

Duncan Middlemiss, Director

Mr. Duncan Middlemiss, P.Eng, is the President and Chief Executive Officer and a director of Wesdome Gold Mines Ltd. Prior to joining Wesdome Gold Mines Ltd., he was President and Chief Executive Officer and a director of St. Andrew Goldfields Ltd. until its acquisition by Kirkland Lake Gold Inc. in January 2016. Mr. Middlemiss joined St. Andrew Goldfields Ltd. in July 2008 as General Manager and Vice President Operations, later assuming the role of Chief Operating Officer. He was appointed as President and Chief Executive Officer in October 2013.  Mr. Middlemiss has extensive experience in the mining of gold deposits in the Abitibi Greenstone Belt. He is the Past Chair of the Ontario Mining Association and remains active in the organization.  Mr. Middlemiss holds B.Sc. in mining engineering at Queen's University.

Éric Tremblay, Director

Mr. Éric Tremblay has more than 25 years of mine building and mine operations experience, mostly at underground mining operations, culminating in his current position as Chief Operating Officer of Dalradian Resources Inc. and in his previous position as General Manager at Canada's largest gold mine, Canadian Malartic, which is jointly owned by Agnico-Eagle Mines Limited and Yamana Gold Inc. In 2014, his team achieved a record of more than 500,000 ounces of production at a cost under $700/oz. Previously, Mr. Tremblay was General Manager at IAMGOLD's Westwood Project, where he participated in closure of the Doyon Mine and construction of the Westwood Project. Mr. Tremblay was charged with completing the permitting, scoping study, feasibility study, surface construction and underground development at Westwood. Further, while at IAMGOLD, he was General Manager of the Sleeping Giant Mine, an underground mine using multiple mining methods (long hole, shrinkage, room and pillar). His mandate was to optimize production and return the mine to profitability. Previous positions included Underground Superintendent at Cambior's Mouska Mine, Underground Captain/Project Engineer/Senior Supervisor over a seven-year period at Cambior and Barrick's Doyon Mine, where he was involved in mine-planning, construction, development and production. Since September 2020, he serves on the board of directors of Nighthawk Gold Corp. and on the board of directors of Talisker Resources Ltd. since November 2020. Mr. Tremblay graduated from Laval University with a B.Sc. in mining engineering and mineral processing.

Chris Lodder, President

Mr. Chris Lodder has more than 30 years' experience working on and managing Greenfields exploration, Brownfields exploration, and mine development with major and junior mining companies worldwide with the majority of his career focused in the Americas. He has led teams responsible for discoveries of compliant resources containing more than 34 million ounces of gold. He was President, CEO and a director of Barkerville from 2016 until its acquisition by Osisko Gold Royalties in 2019. Mr. Lodder is also the President of Talisker Exploration Services Inc., an Ontario based mining and exploration services company founded by Mr. Lodder and two partners in 2010, whose principal clients are Osisko Gold Royalties and their associated companies. From 1999 to 2010 he was South American Exploration Manager and later the Americas Exploration Manager for AngloGold Ashanti and prior that he had various management roles with Queenstake Resources in South America. He is a volunteer director on the board of the Barkerville Heritage Trust which oversees the management of the Barkerville Historic Town and Park which is a living museum which preserves the history of the Cariboo Gold Rush.


Alexander Dann, Chief Financial Officer & VP Finance


Mr. Alexander Dann is a chartered professional accountant with over 25 years of experience leading financial operations and strategic planning for multinational public companies, primarily in the mining and manufacturing sectors. Mr. Dann is the Chief Financial Officer and Vice President, Finance of Osisko Development and Chief Financial Officer of Osisko Green Acquisition Limited. From November 2017 to March 2020, Mr. Dann served as Chief Financial Officer of The Flowr Corporation, where he successfully guided them from a small private company to a TSX-V publicly traded corporation. Prior to that, Mr. Dann was CFO of Avion Gold Corp. and Era Resources Inc., until their acquisitions by Endeavour Mining Corporation and The Sentient Group, respectively. Mr. Dann also held senior finance roles with Falconbridge Ltd. (now part of Glencore), Rio Algom Limited (now part of BHP Billiton) and Litens Automotive Partnership (a group within Magna International Inc.). Mr. Dann obtained his Chartered Accountant designation in 1995 and holds a Bachelor degree in Business Administration from L'Université Laval in Québec City.

Maggie Layman, Vice President, Exploration

Ms. Maggie Layman is a professional geologist with 14 years' mineral exploration experience in diverse ore deposits throughout Canada. Previously as Barkerville's Exploration Manager, Ms. Layman led the Barkerville team on the Cariboo Project through systematic exploration with technical teams and ensuring compliance of drill programs. Prior to joining Barkerville, Ms. Layman worked as a drill manager and project geologist for Vale and Independence Gold Corp. Ms. Layman holds a B.Sc. from Memorial University of Newfoundland, is registered as a Professional Geologist with the Association of Engineers and Geoscientists of British Columbia and is an active volunteer with the AME Indigenous Relations and Reconciliation Committee.

André Le Bel, Corporate Secretary

Mr. André Le Bel was appointed Corporate Secretary of Osisko Development on February 26, 2021. He was Vice President, Legal Affairs and Corporate Secretary of Osisko Mining Corporation from November 2007 to June 2014.  Mr. Le Bel was a director of RedQuest Capital Corp. until June 2017 and currently serves on the board of directors of Brunswick Exploration Inc., listed on the TSX-V. Mr. Le Bel was Vice President, Legal Affairs and Corporate Secretary of NioGold Mining Corp. from March 2015 to March 2016 and Corporate Secretary of Falco from November 2015 to November 2016. Since November 2016, he is Vice President, Legal Affairs and Corporate Secretary of Falco. Mr. Le Bel has been appointed Vice President, Legal Affairs and Corporate Secretary of Osisko Gold Royalties in February 2015.

Jean-François Lemonde, Vice President, Investors Relations

Mr. Jean-François Lemonde is joining from Desjardins Capital Markets were he had the role of Managing Director - Institutional equity sales for the past 5 years. Mr. Lemonde is cumulating 20 years of experience in the capital markets with Desjardins Capital Markets, Dundee Capital Markets, GMP Securities, TD Securities and Goldman Sachs. He is a HEC Montreal graduate in Business administration with a Finance concentration.

Luc Lessard, Eng., Chief Operating Officer

Mr. Luc Lessard is a mining engineer with more than 30 years of experience designing, building and operating mines. He was previously Chief Operating Officer of the Canadian Malartic Partnership (owned jointly by Agnico Eagle and Yamana), and prior to that was the Chief Operating Officer and Senior Vice President of Engineering and Construction for Osisko Mining Corporation where he was responsible for the design, construction and commissioning of the world class Canadian Malartic gold mine. During his career, Mr. Lessard has worked on many open pit and underground mine builds and prior to Osisko, Mr. Lessard was Vice President of Engineering and Construction for IAMGOLD and General Manager, Projects for Cambior Inc. Mr. Lessard is President, Chief Executive Officer and director of Falco Resources Ltd and serves on the board of directors of Osisko Metals Incorporated. He served on the board of directors of Nighthawk Gold Corp. from July 2013 to June 2021 and on the board of directors of Highland Copper Company Inc. from November 2015 to February 2019.  Mr. Lessard holds a Bachelor's degree in Mining Engineering, from Université Laval and is a member of the Ordre des ingénieurs du Québec.


Martin Ménard, Vice-President, Engineering and Construction

Mr. Martin Ménard brings fifteen years of experience in various engineering and management roles on energy, mining and mineral processing projects worldwide, including most recently as Chief Operating Officer at AEX Gold Inc. He has held leading technical & managerial roles, notably for Newmont Mining on their Merian Project in Suriname and IAMGOLD on their Essakane project in Burkina Faso. He earned a Master's of Science degree in Economics from the Universitat Pompeu Fabra and a Bachelor degree in Electrical Engineering from the McGill University.

François Vézina, Senior Vice President, Project Development, Technical Services & Environment

Mr. François Vézina is a Mining Engineer with over 20 years of experience in mining industry. He has extensive experience in both surface and underground mining operations, having worked at various mining sites in Canada, Mexico and Finland. Mr. Vézina was the Technical Service Manager for Agnico Eagle Mines Limited and was responsible for overseeing the completion of the feasibility studies of LaRonde II, Pinos Altos and Kittilä. Mr. Vézina participated in the construction and commissioning of Pinos Altos as Mine Development Manager and Kittilä as Mine Operations Manager. He later joined Osisko Mining Corporation and participated in the construction of the Canadian Malartic mine and serve as Mine Operations Manager for over 5 years. Mr. Vézina is recognized for his innovative project development strategies and mining optimization. Since the start of his career, Mr. Vézina has been responsible for the design and engineering of four mines and participated in the construction and development of two other mines. Mr. Vézina pursues his passion by getting involved with universities and colleges by regularly giving lectures on the mining industry. Mr. Vézina holds a Bachelor degree in Mining Engineering and a Master in Business Administration (MBA). He is a registered Engineer (Eng.) in Québec, (P.Eng.) in Ontario and in British Columbia.

Chris Pharness, Vice President, Sustainable Development

Mr. Chris Pharness is an environmental professional with 25 years of environmental and resource management experience in British Columbia and has been with Barkerville since 2013. Mr. Pharness' breadth of experience includes mining, forestry, oil and gas and large scale construction projects, with extensive involvement in fish and wildlife management based research and project management. Much of Mr. Pharness' work and personal history have allowed him to build close relationships with Indigenous Nations, local communities, and regulatory agencies in British Columbia.

The directors of the Corporation are elected annually at each annual general meeting of its shareholders and hold office until the next annual general meeting unless a director's office is earlier vacated in accordance with the articles of Osisko Development or until his or her successor is duly appointed or elected.

As at May 19, 2022, all of the directors and officers, as a group, beneficially own, directly or indirectly, or exercise control or direction over 150,539 post-Consolidation Common Shares, representing approximately 0.9% of the issued and outstanding Common Shares.


Cease Trade Orders, Bankruptcies, Penalties or Sanctions

Corporate Cease Trade Orders

As at the date of this AIF, no current director or executive officer of the Corporation is, or within the ten years prior to the date of this AIF has been, a director, chief executive officer or chief financial officer of any company (including the Corporation), that:

(a) was subject to a cease trade order (including any management cease trade order which applied to directors or executive officers of a company, whether or not the person is named in the order), an order similar to a cease trade order, or an order that denied the relevant company access to any exemption under securities legislation, that was in effect for a period of more than 30 consecutive days (an "Order") while that person was acting in that capacity; or

(b) was subject to an Order that was issued after the current director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer.

Bankruptcy

To the knowledge of the Corporation, as at the date of this AIF, no current director, and no executive officer, or shareholder holding a sufficient number of securities of the Corporation to affect materially the control of the Corporation is, or within the ten years prior to the date of this AIF has:

(a) been a director or executive officer of any company (including the Corporation) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or

(b) become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver manager or trustee appointed to hold the assets of the current or proposed director, executive officer or shareholder.

Penalties and Sanctions

To the knowledge of the Corporation, as at the date of this AIF, no current director, executive officer, or shareholder holding a sufficient number of securities of the Corporation to affect materially the control of the Corporation has been subject to any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority or any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.

Conflicts of Interest

Certain of the directors and officers of the Corporation do not devote all of their time to the affairs of Osisko Development. Certain of the directors and officers of the Corporation are directors and officers of other companies, some of which are in the same business as the Corporation. See "Risk Factors - Conflicts of Interest".

The directors and officers of the Corporation are required by law to act in the best interests of the Corporation. They have the same obligations to the other companies in respect of which they act as directors and officers. Any decision made by any of such officers or directors involving the Corporation will be made in accordance with their duties and obligations under the applicable laws of Canada.


PROMOTERS

Osisko Gold Royalties is considered to be a Promoter of the Corporation. As of the date hereof, Osisko Gold Royalties beneficially owns, or exercises control over, 100,000,100 pre-Consolidation Common Shares, representing 70% of the issued and outstanding Common Shares.

Pursuant to the Reverse Takeover Transaction and subject to Osisko Gold Royalties retaining the Osisko Retained Royalty Interests, the Corporation acquired the Contributed Osisko Assets by way of a three-cornered Amalgamation among Barolo, Barolo Subco and Osisko Gold Royalties. In connection with the Reverse Takeover Transaction, the Corporation assigned the Contributed Osisko Assets to the Corporation in exchange for 100,000,000 pre-Consolidation Common Shares valued at pre-Consolidation price of $7.50 per Common Share. As such, the total value of consideration paid by the Corporation to Osisko Gold Royalties for the Contributed Osisko Assets is approximately $750 million. The value of the consideration was determined by Osisko Gold Royalties, the Corporation and the market based on the book value of the Contributed Osisko Assets, with the exception of the Contributed Osisko Marketable Securities which were valued at fair market value.

LEGAL PROCEEDINGS AND REGULATORY ACTIONS

Legal Proceedings

During the fiscal year ended December 31, 2021 and as of the date hereof, there have been and are no legal proceedings outstanding, threatened or pending, by or against the Corporation or to which the Corporation is a party or to which any of the Corporation's properties are subject, nor to the Corporation's knowledge are any such legal proceedings contemplated, and which could become material to the Corporation.

Regulatory Actions

During the fiscal year ended December 31, 2021 and as of the date hereof, there have been no penalties or sanctions imposed against the Corporation (a) by a court relating to securities legislation or by a securities regulatory authority or (b) by a court or regulatory body that would likely be considered important to a reasonable investor making an investment decision in the Corporation. The Corporation has not entered into any settlement agreements with a court relating to securities legislation or with a securities regulatory authority during the fiscal year ended December 31, 2021 and as of the date hereof.

INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

Except as disclosed elsewhere in this AIF, within the three (3) most recently completed financial years or during the current financial year, no director or executive officer of the Corporation, or shareholder who beneficially owns, or controls or directs, directly or indirectly, more than 10% of the outstanding Common Shares, or any known associates or affiliates of such persons, has or has had any material interest, direct or indirect, in any transaction or in any proposed transaction that has materially affected or is reasonably expected to materially affect the Corporation.

TRANSFER AGENTS AND REGISTRARS

The transfer agent and registrar for the Common Shares is TSX Trust Company, Suite 301 - 100 Adelaide Street West, Toronto, Ontario M5H 4H1.


MATERIAL CONTRACTS

The material contracts of Osisko Development that are currently in force are the following:

(a) the Amalgamation Agreement;

(b) the warrant indenture dated October 29, 2020 between the Corporation, Barolo and the Warrant Agent;

(c) the underwriting agreement dated December 30, 2020 between the Corporation and the 2020 Underwriters;

(d) the supplemental warrant indenture dated September 30, 2021 between the Corporation and the Warrant Agent;

(e) the membership interest purchase agreement dated January 24, 2022 between Osisko Development, Osisko Utah LLC and IG Tintic LLC;

(f) the share purchase agreement dated January 24, 2022 between Osisko Development, Osisko Utah LLC, Ruby Hollow LLC and Emerald Hollow LLC;

(g) the underwriting agreement dated March 2, 2022 between Osisko Development and the 2022 Underwriters;

(h) the warrant indenture dated March 2, 2022 between the Corporation and the Warrant Agent;

(i) the subscription receipt agreement dated March 2, 2022 between the Corporation, TSX Trust Company and Eight Capital,;

(j) the supplemental warrant indenture dated March 29, 2022 between the Corporation and the Warrant Agent; and

(k) the amending agreement dated March 29, 2022 to the subscription receipt agreement dated March 2, 2022 between the Corporation, TSX Trust Company and Eight Capital.

INTERESTS OF EXPERTS

Ms. Maggie Layman, P. Geo, Vice President Exploration of the Corporation, is named in this AIF as having reviewed and approved certain scientific and technical information as set out in the Appendix A "Material Mineral Project - The Cariboo Project".

PricewaterhouseCoopers LLP/s.r.l./s.e.n.c.r.l., a partnership of Chartered Professional Accountants, the auditors of the Corporation, has advised that it is independent with respect to the Corporation within the meaning of the Code of ethics of the chartered professional accountants (Québec).

To the Corporation's knowledge, no person or company whose profession or business gives authority to a statement made by the person or company and who is named as having prepared or certified a part of this AIF or as having prepared or certified a report or valuation described or included in this AIF, holds more than one percent (1%) beneficial interest, direct or indirect, in any securities or property of the Corporation or an Associate or Affiliate thereof and except for Ms. Layman, no such person is expected to be elected, appointed or employed as a director, officer or employee of the Corporation or of any associate or affiliate of the Corporation.


ADDITIONAL INFORMATION

Additional information relating to the Corporation is available electronically on SEDAR at www.sedar.com and on its website at www.osiskodev.com.

Additional information, including directors' and officers' remuneration and indebtedness, principal holders of the Corporation's securities and securities authorized for issuance under equity compensation plans, is contained in Osisko Development's management information circular for its annual and special meeting of shareholders held on May 12, 2021. For information relating to compensation and corporate governance related matters, please see sections entitled "Executive Compensation" and "Corporate Governance", respectively, in such management information circular.

Additional financial information is provided in the Corporation's financial statements and Management Discussion and Analysis.

AUDIT AND RISK COMMITTEE

Description of the Audit and Risk Committee

The purpose of the Audit and Risk Committee is to assist the Board in its oversight of the Corporation's accounting and financial reporting principles and policies and internal audit controls and procedures; in its oversight of the integrity, transparency and quality of the Corporation's financial statements and the independent audit thereon; in selecting, evaluating and, where deemed appropriate, replacing the external auditors; in evaluating the qualification, independence and performance of the external auditors; in its oversight of the Corporation's risk identification, assessment and management program; and in the Corporation's compliance with legal and regulatory requirements in respect of the above.

A copy of the Audit and Risk Committee's Charter is included as Appendix 1 to this AIF.

All members of the Audit and Risk Committee are "financially literate" and/or "financial experts", within the meaning of applicable regulations. In considering criteria for determination of financial literacy, the Board assesses the ability to understand financial statements of Osisko Development. In determining accounting or related financial expertise, the Board considers familiarity with accounting issues pertinent to the Corporation, past employment experience in finance or accounting, requisite professional certification in accounting, and any other comparable experience or background which results in the individuals' financial sophistication.

Audit and Risks Committee Members

As of December 31, 2021, the members of the Audit and Risks Committee were Ms. Michèle McCarthy (Chair), Mr. Duncan Middlemiss and Ms. Joanne Ferstman.

Relevant Education and Experience

Ms. Michèle McCarthy is the President of McCarthy Law Professional Corporation and President and Chief Executive Officer of Independent Review Inc. She is an experienced corporate director and has significant experience in corporate restructuring and regulatory compliance. Ms. McCarthy is the Chair of the Audit and Risk Committee of Osisko Development Inc. and a director of Russell Investments Corporate Class Inc. and of Bitcoin Well as well as a director of private companies.  She was the Chair of the Boards of Sandy Lake Gold Inc., Big 8 Split Inc. TD Split Inc. and 5 Banc Split Inc. She also served as a director and member of the Audit Committee and Risk Management Committees at Equity Financial Holdings Inc. She is the former Chair of the Toronto Port Authority and member of the Small Business Advisory Committee of the Ontario Securities Commission. Within the not-for-profit sector, Ms. McCarthy serves on the boards of the McMichael Foundation, The Queen's Own Rifles of Canada (Senate) and the Honourable Company of Freemen of the City of London in North America.  She also served on the boards of Canada's National Ballet School, the St. George's Society of Toronto, the University of Toronto (Trinity College) and the Humber Memorial Hospital. Ms. McCarthy holds an LLB and LLM in Securities Law from Osgoode Hall and has obtained the ICD.D designation from the Institute of Corporate Directors and the CDI.D Certified Board Candidate in the USA.


Mr. Duncan Middlemiss, P.Eng, is the President and Chief Executive Officer and a director of Wesdome Gold Mines Ltd. Prior to joining Wesdome Gold Mines Ltd., he was President and Chief Executive Officer and a director of St. Andrew Goldfields Ltd. until its acquisition by Kirkland Lake Gold Inc. in January 2016. Mr. Middlemiss joined St. Andrew Goldfields Ltd. in July 2008 as General Manager and Vice President Operations, later assuming the role of Chief Operating Officer. He was appointed as President and Chief Executive Officer in October 2013.  Mr. Middlemiss has extensive experience in the mining of gold deposits in the Abitibi Greenstone Belt. He is the Past Chair of the Ontario Mining Association and remains active in the organization.  Mr. Middlemiss holds B.Sc. in mining engineering at Queen's University.

Ms. Joanne Ferstman is a corporate director who has been serving on a number of public company boards and has over 20 years of progressive experience in the financial industry. She has been Lead Director of Osisko Gold Royalties since 2014. Ms. Ferstman currently serves as Chair of the board of Dream Unlimited Corp.  Ms. Ferstman was appointed to the Board of Directors of of the Corporation as a nominee of Osisko Gold Royalties in accordance with the terms and conditions of an Investment Agreement.  She will not be standing for re-election and her tenure as director will end on April 26, 2022 following the annual and special meeting of shareholders of the Corporation. Ms. Ferstman also serves as a director of Cogeco Communications Inc. and ATS Automation Tooling Systems Inc. She was formerly a director of Aimia Inc. (June 2008 to June 2017) and Dream Office REIT (June 2003 to May 2018). Ms. Ferstman holds a Bachelor of Commerce and a Graduate degree in Public Accountancy from McGill University and is a Chartered Professional Accountant.

External Auditor Service Fees

The aggregate fees billed by the Corporation's external auditor in each of the last two (2) fiscal years are as follows:

    2021     2020  
Audit fees   307,968     350,000  
Audit-related fees(1)   66,150     20,300  
Tax fees(2)   38,325     40,912  
All other fees(3)   -     24,150  
Total   412,443     435,362  

NOTES:

(1) Audit fees include services rendered in connection with the audit of the Corporation's annual consolidated financial statements. Audit fees were higher in 2020 primarily due to the services rendered in relation to the Filing Statement of Barolo Ventures Corp. dated as of November 20, 2020 in respect of the RTO Transaction.

(2) Audit-related fees were related to translation services for the financial statements and in connection with the proposed listing of the Corporation's Common Shares on the New York Stock Exchange.

(3) These tax-related fees were incurred in connection with the RTO Transaction and other tax consulting fees involving subsidiaries of the Corporation.


APPENDIX 1

OSISKO DEVELOPMENT CORP.
(the "Corporation")

AUDIT AND RISK COMMITTEE CHARTER

I. PURPOSES OF THE AUDIT AND RISK COMMITTEE

The purposes of the Audit and Risk Committee are to assist the board of directors of the Corporation (the "Board of Directors"):

1. in its oversight of the Corporation's accounting and financial reporting principles and policies and internal audit controls and procedures;

2. in its oversight of the integrity, transparency and quality of the Corporation's financial statements and the independent audit thereof;

3. in selecting, evaluating and, where deemed appropriate, replacing the external auditors;

4. in evaluating the qualification, independence and performance of the external auditors;

5.  in its oversight of the Corporation's risk identification, assessment and management program; and

6. in the Corporation's compliance with legal and regulatory requirements in respect of the above.

The function of the Audit and Risk Committee is to provide independent and objective oversight. The Corporation's management team is responsible for the preparation, presentation and integrity of the Corporation's financial statements. Management is responsible for maintaining appropriate accounting and financial reporting principles and policies and internal controls and procedures that provide for compliance with accounting standards and applicable laws and regulations. The external auditors are responsible for planning and carrying out a proper audit of the Corporation's annual financial statements and other procedures. In fulfilling their responsibilities hereunder, it is recognized that members of the Audit and Risk Committee are not full-time employees of the Corporation and are not, and do not represent themselves to be, accountants or auditors by profession or experts in the fields of accounting or auditing including in respect of auditor independence. As such, it is not the duty or responsibility of the Audit and Risk Committee or its members to conduct "field work" or other types of auditing or accounting reviews or procedures or to set auditor independence standards, and each member of the Audit and Risk Committee shall be entitled to rely on (i) the integrity of those persons and organizations within and external to the Corporation from which it receives information, (ii) the accuracy of the financial and other information provided to the Audit and Risk Committee by such persons or organizations absent actual knowledge to the contrary (which shall be promptly reported to the Board of Directors) and (iii) representations made by management as to non-audit services provided by the auditors to the Corporation.

The external auditors are ultimately accountable to the Board of Directors and the Audit and Risk Committee as representatives of shareholders. The Audit and Risk Committee is directly responsible (subject to the Board of Directors' approval) for the appointment, compensation, retention (including termination), scope and oversight of the work of the external auditors engaged by the Corporation (including for the purpose of preparing or issuing an audit report or performing other audit, review or attestation services or other work of the Corporation), and is also directly responsible for the resolution of any disagreements between management and any such firm regarding financial reporting.


The external auditors shall submit, at least annually, to the Corporation and the Audit and Risk Committee:

A report describing: the Corporation's internal quality-control procedures; any material issues raised by the most recent internal quality control review, or peer review, of the Corporation, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more independent audits carried out by the Corporation, and any steps taken to deal with any such issues

II. COMPOSITION OF THE AUDIT AND RISK COMMITTEE

The Audit and Risk Committee shall be comprised of three or more independent directors as defined under applicable legislation and stock exchange rules and guidelines and are appointed (and may be replaced) by the Board of Directors. Determination as to whether a particular director satisfies the requirements for membership on the Audit and Risk Committee shall be made by the Board of Directors.

All members of the Committee shall be financially literate within the meaning of National Instrument 52-110 - Audit Committees ("NI 52-110") and any other securities legislation and stock exchange rules applicable to the Corporation, and as confirmed by the Board of Directors using its business judgement (including but not limited to be able to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the Corporation's financial statements), and at least one member of the Audit and Risk Committee shall have accounting or related financial expertise or sophistication as such qualifications are interpreted by the Board of Directors in light of applicable laws and stock exchange rules. The later criteria may be satisfied by past employment experience in finance or accounting, requisite professional certification in accounting, or any other comparable experience or background which results in the individual's financial sophistication, including being or having been a chief executive officer, chief financial officer or other senior officer of an entity with financial oversight responsibilities, as well as other requirements under applicable laws and stock exchange rules.

III. MEMBERSHIP, MEETINGS AND QUORUM

The Audit and Risk Committee shall meet at least four times annually or more frequently if circumstances dictate, to discuss with management the annual audited financial statements and quarterly financial statements, and all other related matters. The Audit and Risk Committee may request any officer or employee of the Corporation or the Corporation's external counsel or external auditors to attend a meeting of the Audit and Risk Committee or to meet with any members of, or consultants to, the Audit and Risk Committee.

Proceedings and meetings of the Audit and Risk Committee are governed by the provisions of by-laws relating to the regulation of the meetings and proceedings of the Board of Directors as they are applicable and not inconsistent with this Charter and the other provisions adopted by the Board of Directors in regards to committee composition and organization.

The quorum at any meeting of the Committee is a majority of members in office. All members of the Audit and Risk Committee should strive to be at all meetings.


IV. DUTIES AND POWERS OF THE AUDIT AND RISK COMMITTEE

To carry out its purposes, the Audit and Risk Committee shall have unrestricted access to information and shall have the following duties and powers:

1. with respect to the external auditor,

(i) to review and assess annually, the performance of the external auditors, and recommend to the Board of Directors the nomination of the external auditors for appointment by the shareholders, or if required, the revocation of appointment of the external auditors;

(ii) to review and approve the fees charged by the external auditors for audit services;

(iii) to review and pre-approve all services, including non-audit services, to be provided by the Corporation's external auditors to the Corporation or to its subsidiaries, and associated fees and to ensure that such services will not have an impact on the auditor's independence, in accordance with procedures established by the Audit and Risk Committee. The Audit and Risk Committee may delegate such authority to one or more of its members, which member(s) shall report thereon to the committee;

(iv) to ensure that the external auditors prepare and deliver annually a Statement as to Independence (it being understood that the external auditors are responsible for the accuracy and completeness of such statement), to discuss with the external auditors any relationships or services disclosed in the Statement as to Independence that may impact the objectivity and independence of the Corporation's external auditors and to recommend that the Board of Directors take appropriate action in response to the Statement as to Independence to satisfy itself of the external auditors' independence; and

(v) to instruct the external auditors that the external auditors are ultimately accountable to the Audit and Risk Committee and the Board of Directors, as representatives of the shareholders;

2. with respect to financial reporting principles and policies and internal controls,

(i) to advise management that they are expected to provide to the Audit and Risk Committee a timely analysis of significant financial reporting issues and practices;

(ii) to ensure that the external auditors prepare and deliver as applicable a detailed report covering 1) critical accounting policies and practices to be used; 2) material alternative treatments of financial information within generally accepted accounting principles that have been discussed with management, ramifications of the use of such alternative disclosures and treatments, and the treatment preferred by the external auditors; 3) other material written communications between the external auditors and management such as any management letter or schedule of unadjusted differences; and 4) such other aspects as may be required by the Audit and Risk Committee or legal or regulatory requirements;

(iii) to consider, review and discuss any reports or communications (and management's responses thereto) submitted to the Audit and Risk Committee by the external auditors, including reports and communications related to:

 significant finding, deficiencies and recommendations noted following the annual audit of the design and operation of internal controls over financial reporting;

 consideration of fraud in the audit of the financial statement;

 detection of illegal acts;

 the external auditors' responsibilities under generally accepted auditing standards;


 significant accounting policies;

 management judgements and accounting estimates;

 adjustments arising from the audit;

 the responsibility of the external auditors for other information in documents containing audited financial statements;

 disagreements with management;

 consultation by management with other accountants;

 major issues discussed with management prior to retention of the external auditors;

 difficulties encountered with management in performing the audit;

 the external auditors judgements about the quality of the entity's accounting principles; and

 reviews of interim financial information conducted by the external auditors.

(iv) to meet with management and external auditors:

 to discuss the scope, planning and staffing of the annual audit and to review and approve the audit plan;

 to discuss the audited financial statements, including the accompanying management's discussion and analysis;

 to discuss the unaudited interim quarterly financial statements, including the accompanying management's discussion and analysis;

 to discuss the appropriateness and quality of the Corporation's accounting principles as applied in its financial reporting;

 to discuss any significant matters arising from any audit or report or communication referred to in item 2 (iii) above, whether raised by management or the external auditors, relating to the Corporation's financial statements;

 to resolve disagreements between management and the external auditors regarding financial reporting;

 to review the form of opinion the external auditors propose to render to the Board of Directors and shareholders;

 to discuss significant changes to the Corporation's auditing and accounting principles, policies, controls, procedures and practices proposed or contemplated by the external auditors or management, and the financial impact thereof;

 to review any non-routine correspondence with regulators or governmental agencies and any employee complaints or published reports that raise material issues regarding the Corporation's financial statements or accounting policies;

 to review, evaluate and monitor (as applicable) the Corporation's risk management program including the revenue protection program. This function should include:

> risk assessment;

> quantification of exposure;

> risk mitigation measures; and

> risk reporting;

 to review the adequacy of the resources of the finance and accounting group, along with its development and succession plans;

 to monitor and review communications received in accordance with the Corporation's Internal Whistle Blowing Policy;


 following completion of the annual audit and quarterly reviews, review separately with each of management and the independent auditor any significant changes to planned procedures, any difficulties encountered during the course of the audit and reviews, including any restrictions on the scope of the work or access to required information and the cooperation that the independent auditor received during the course of the audit and review;

(v) to discuss with the Chief Financial Officer any matters related to the financial affairs of the Corporation;

(vi) to discuss with the Corporation's management any significant legal matters that may have a material effect on the financial statements, the Corporation's compliance policies, including material notices to or inquiries received from governmental agencies;

(vii) to periodically review with management the need for an internal audit function; and

(viii) to review, and discuss with the Corporation's Chief Executive Officer and Chief Financial Officer the procedure with respect to the certification of the Corporation's financial statements pursuant to National Instrument 52-109 Certification of Disclosure in Issuer's Annual and Interim Filings and any other applicable law or stock exchange rule.

3. with respect to reporting and recommendations,

(i) to prepare/review any report or other financial disclosures to be included in the Corporation's annual information form and management information circular;

(ii) to review and recommend to the Board of Directors for approval, the interim and audited annual financial statements of the Corporation, management's discussion and analysis of the financial conditions and results of operations (MD&A) and the press releases related to those financial statements;

(iii) to review and recommend to the Board of Directors for approval, the annual report, management's assessment on internal controls and any other like annual disclosure filings to be made by the Corporation under the requirements of securities laws or stock exchange rules applicable to the Corporation;

(iv) to review and reassess the adequacy of the procedures in place for the review of the Corporation's public disclosure of financial information extracted or derived from the Corporation's financial statements, other than the public disclosure referred to in paragraph 3(ii) above;

(v) to prepare Audit and Risk Committee report(s) as required by applicable regulators;

(vi) to review this Charter at least annually and recommend any changes to the Board of Directors; and

(vii) to report its activities to the Board of Directors on a regular basis and to make such recommendations with respect to the above and other matters as the Audit and Risk Committee may deem necessary or appropriate.

4. to review, discuss with management, and approve all related party transactions;

5. to create an agenda for the ensuing year;

6. to review quarterly the expenses of the Chief Executive Officer;

7. to establish and reassess the adequacy of the procedures for the receipt, retention and treatment of any complaint received by the Corporation regarding accounting, internal accounting controls or auditing matters, including procedures for the confidential anonymous submissions by employees of concerns regarding questionable accounting or auditing matters in accordance with applicable laws and regulations; and


8. to set clear hiring policies regarding partners, employees and former partners and employees of the present and, as the case may be, former external auditor of the Corporation.

V. RESOURCES AND AUTHORITY OF THE AUDIT AND RISK COMMITTEE

The Audit and Risk Committee shall have the resources and authority appropriate to discharge its responsibilities, as it shall determine, including the authority to engage external auditors for special audits, reviews and other procedures and to retain special counsel and other experts or consultants. The Audit and Risk Committee shall have the sole authority (subject to the Board of Directors' approval) to determine the terms of engagement and the extent of funding necessary (and to be provided by the Corporation) for payment of (a) compensation to the Corporation's external auditors engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Corporation, (b) any compensation to any advisors retained to advise the Audit and Risk Committee and (c) ordinary administrative expenses of the Audit and Risk Committee that are necessary or appropriate in carrying out its duties.

VI. ANNUAL EVALUATION

At least annually, the Audit and Risk Committee shall, in a manner it determines to be appropriate:


SCHEDULE A - MATERIAL MINERAL PROJECT - CARIBOO PROJECT

Current Technical Report

The most recent technical report filed by the Corporation relating to Cariboo Project ("Cariboo Technical Report") titled "NI 43-101 Technical Report and Mineral Resource Estimate for the Cariboo Project, British Columbia, Canada" dated October 5, 2020, with an effective date of October 5, 2020.

Information Contained in this Section

Where appropriate, certain information contained in this AIF updates information derived from the Cariboo Technical Report. Any updates to the scientific or technical information derived from the Cariboo Technical Report and any other scientific or technical information in respect of the Cariboo Technical Report contained in this Annual Information Form were prepared by or under the supervision of Ms. Maggie Layman, Vice President Exploration of the Corporation, who is a "qualified person" for purposes of NI 43-101.

The Cariboo Technical Report is the most recent technical report available with respect to the Cariboo Project. The Cariboo Technical Report is subject to certain assumptions, qualifications and procedures described therein. Reference should be made to the full text of the reports, which have been filed with Canadian securities regulatory authorities pursuant to NI 43-101 and are available for review on SEDAR (www.sedar.com) under the applicable reporting issuer's issuer profile. The Cariboo Technical Report is not and shall not be deemed to be incorporated by reference to this AIF.

Property Description and Location

The Cariboo Project is located in the historic Wells-Barkerville mining camp (also known as the Cariboo Gold District) of British Columbia and extends for approximately 77 km from northwest to southeast. The main towns in the Cariboo Project area are Wells and Barkerville Historic Town & Park. Wells is situated 74 km east of Quesnel, approximately 115 km southeast of Prince George, and approximately 500 km north of Vancouver (Figure 1).

The Cariboo Project consists of 412 mineral titles totaling 155,147.09 ha across two (2) contiguous property blocks known as the Cariboo Main Block and the QR Mill Property. These mineral titles include mineral claims, mineral leases, placer claims and placer leases. These titles grant Barkerville the rights to explore for metal mineralized materials in bedrock or talus rock, including rock and other materials from mine tailings, dumps and previously mined deposits of minerals, as set out in the Mineral Tenure Act (British Columbia).

Barkerville holds all 36 QR Mill mineral titles (consisting of 1 mineral lease and 35 mineral claims) and 359 of the 376 mineral titles comprising the Cariboo Main Block. The remaining 17 mineral titles are jointly owned with other companies and individuals: a 97.5% interest in six (6), an 85% interest in two (2), and a 50% interest in the other nine (9) mineral titles.

The Cariboo Project also contains 247 surveyed land parcels from Crown-granted mineral claims (3166.56 ha) that overlap many of the mineral titles, where Barkerville is the registered owner on title of the surface and/or holds the undersurface rights to the parcels.

All the wholly-owned Cariboo Main Block mineral claims (303 out of 320) are registered in the name of Barkerville. All 36 QR Mill mineral titles are held 100% by Barkerville. The remaining 17 Cariboo Main Block mineral claims are registered jointly with various other companies and individuals. All mineral titles held entirely or partially by Barkerville are in good standing in the Minerals Titles Online database.

The Cariboo Project is subject to various royalties, agreements and encumbrances, as discussed below.


Figure 1 - Location of the Cariboo Project

The Cariboo Project is subject to various royalties, agreements and encumbrances, as discussed below.

Required Permits and Status

The Cariboo Project requires a provincial environmental assessment because it exceeds the following threshold under the Reviewable Projects Regulation (B.C. Reg. 243/2019): "A new mine facility that, during operations, will have a production capacity of >75,000 tonnes/year (t/yr) of mineral ore".

The Cariboo Project will require review as per the BC Environmental Assessment Act 2018, and issuance of an Environmental Assessment Certificate. An initial Project Description and Engagement Plan have been submitted to the BC Environmental Assessment Office to initiate the provincial environmental assessment process.

In addition to the provincial environmental assessment approval, the federal and provincial permits, approvals and Authorizations that could potentially be applicable to the proposed Project includes:


Federal Permits and Approvals potentially applicable to the Cariboo Project

Provincial Permits and Approvals potentially applicable to the Cariboo Project

As the Cariboo Project proceeds, specific permit requirements will be determined based on discussions with the regulatory agencies.


Agreements with Osisko Gold Royalties Ltd

On November 30, 2015, Barkerville entered into a letter agreement with Osisko Gold Royalties whereby Osisko Gold Royalties agreed to purchase 32 million common shares of Barkerville and a 1.5% NSR royalty on the Cariboo Project. In connection therewith, Osisko Gold Royalties agreed to acquire 32 million flow-through common shares of Barkerville at a price of $0.32 per share, for total proceeds to Barkerville of $10,240,000.

Osisko Gold Royalties also agreed to acquire a 1.5% NSR royalty on the Cariboo Project for a cash consideration of $25 million. Osisko Gold Royalties and Barkerville also agreed to negotiate a gold stream agreement following the completion by Barkerville of a feasibility study on the Cariboo Project. According to the terms, following a 60-day negotiation period, if Osisko Gold Royalties and Barkerville had not entered into a gold stream agreement, Barkerville would either grant a right to Osisko Gold Royalties to purchase an additional 0.75% NSR royalty for consideration of $12.5 million or make a payment of $12.5 million to Osisko Gold Royalties.

On March 27, 2017, Barkerville announced it had entered into a letter agreement with Osisko Gold Royalties whereby Osisko agreed to purchase an additional 0.75% NSR royalty on the Cariboo Project for a cash consideration of $12,500,000 (paid). At the time, Osisko Gold Royalties owned a total NSR royalty of 2.25% on all mineral current rights held by Barkerville. The grant of the additional royalty would cancel Osisko Gold Royalties' royalty right, which was granted pursuant to the investment agreement between Osisko Gold Royalties and Barkerville dated February 5, 2016; however, Osisko Gold Royalties would retain a right of first refusal relating to any gold stream offer received by Barkerville with respect to the Cariboo Project.

On September 5, 2018, Barkerville entered into the Second Amended and Restated Royalty Purchase Agreement whereby Osisko Gold Royalties purchased an additional 1.75% NSR royalty on the Cariboo Project for a cash consideration of $20,000,000 (paid), with an option for Osisko Gold Royalties to purchase an additional 1.0% NSR royalty for $13,000,000 to bring the Cariboo Project NSR to 5%. On November 20, 2020, Osisko exercised the option to purchase an additional 1% NSR royalty on the Cariboo Project, thus bringing the NSR royalty to 5%.

On September 23, 2019, Barkerville and Osisko Gold Royalties entered into a definitive agreement, pursuant to which Osisko Gold Royalties acquired all of the issued and outstanding common shares of Barkerville that it did not already own by way of a plan of arrangement pursuant to which each shareholder of Barkerville (excluding Osisko Gold Royalties) received 0.0357 of an Osisko Gold Royalties Share for each Barkerville Share held.

On November 21, 2019, the Arrangement became effective and resulted in Barkerville becoming a wholly-owned subsidiary of Osisko Gold Royalties.

On October 5, 2020, Osisko Gold Royalties and Barolo announced a binding letter agreement outlining the terms upon which Osisko Gold Royalties would transfer certain mining properties (or securities of the entities that directly or indirectly own such mining properties), including the Cariboo Gold Project, and a portfolio of marketable securities, to Barolo in exchange for common shares of Barolo, which resulted in a "reverse take-over" of Barolo under the policies of the TSX-V.


Surface Rights Option Agreements

Table 1 lists the properties where Barkerville owns the surface rights as well as the underlying option agreements under which the properties rights were acquired.

Table 1 - Barkerville surface rights option agreements

PID

District
Lot

Title #

Crown
Grant #

Fee
simple
Owner

Agreement Name

Vendee

Vendor

Execution
Date

004-056-582

41F

BB1960681

41F/34

Barkerville

Myrtle-Proserpine & Promise Properties

BGM

Huakan International Mining Inc.

2011-May-05

004-056-710

1F

CA6623323

1F/34

Barkerville

Williams Creek Crown Grants

BGM

Williams Creek Gold

2016-May-02

004-056-736

1B

CA6623292

1B/35

Barkerville

Williams Creek Crown Grants

BGM

Williams Creek Gold

2016-May-02

004-056-752

32F

CA4347922

32F

Barkerville

Williams Creek Crown Grants

BGM

Williams Creek Gold

2016-May-02

004-056-787

4B

CA4347919

4B/35

Barkerville

Williams Creek Crown Grants

BGM

Williams Creek Gold

2016-May-02

004-078-543

2F

CA3322186

2F/34

Barkerville

Blackbull & Canusa

International Wayside Gold Mines Ltd

Grand Lowhee Mining Co. Ltd

2000-Jul-28

004-078-560

42F

CA332187

42F

Barkerville

Blackbull & Canusa

International Wayside Gold Mines Ltd

Grand Lowhee Mining Co. Ltd

2000-Jul-28

004-078-578

17F

CA3322185

17F/34

Barkerville, Golden Cariboo Resources Ltd

Xmas Claims

Golden Cariboo Resources Ltd

P. Wright Contracting Ltd

2002-Oct-30

004-078-608

35F

CA5682814

35F/34

Barkerville

35F St George

BGM

Prairie Flower Company Inc.

2016-Nov-14

004-078-632

5F

FB503371

5F/34

Barkerville

4050 Bowron Lake Rd (Ballarat)

BGM

Jane Ball

2019-Jun-10

004-086-627

2B

CA3393199

2B/35

Barkerville

District Lot 10518 & Crown Grant 2B

Island Mountain Gold Mines Ltd

P. Wright Contracting Ltd

2006-Jan-27

004-086-872

20F

PT5233, PC16246

20F/34

Barkerville

Island Mountain & Mosquito Creek Properties

International Wayside Gold Mines Ltd

Mosquito Consolidated Gold Mines

1997-Apr-15

004-086-902

30F

PT5234, PC16247

30F

Barkerville

Island Mountain & Mosquito Creek Properties

International Wayside Gold Mines Ltd

Mosquito Consolidated Gold Mines

1997-Apr-15

004-087-054

39F

PT5232, PC16245

39F

Barkerville

Island Mountain & Mosquito Creek Properties

International Wayside Gold Mines Ltd

Mosquito Consolidated Gold Mines

1997-Apr-15

004-087-097

38F

PT5235, PC16248

38F

Barkerville

Island Mountain & Mosquito Creek Properties

International Wayside Gold Mines Ltd

Mosquito Consolidated Gold Mines

1997-Apr-15

006-787-592

131

CA3322184

4215/55

Barkerville

Parcel B Block 7 DL 131 - 12422 Barkerville Hwy

International Wayside Gold Mines Ltd

Kenneth Pollock

1999-Nov-13

008-218-803

10518

CA3393918

5313/624

Barkerville

District Lot 10518 (PARCEL A)

BGM

Elizabeth Van Halderen (Premanco Industries Ltd)

2013-Jan-21

008-801-908

93

CA3322180

35/36

Barkerville

Cariboo Gold Quartz

International Wayside Gold Mines Ltd

Mosquito Consolidated Gold Mines Ltd

1994-Oct-03




PID

District
Lot

Title #

Crown
Grant #

Fee
simple
Owner

Agreement Name

Vendee

Vendor

Execution
Date

014-385-643

7795

CA3322188

5436/625

Barkerville

Cariboo Gold Quartz

International Wayside Gold Mines Ltd

Mosquito Consolidated Gold Mines Ltd

1994-Oct-03

014-385-686

7798

CA3322189

5439/625

Barkerville

Cariboo Gold Quartz

International Wayside Gold Mines Ltd

Mosquito Consolidated Gold Mines Ltd

1994-Oct-03

014-385-732

391

CA3322183

2517/101

Barkerville

P Wright District Lots Mosquito

International Wayside Gold Mines Ltd

P. Wright Contracting Ltd

2004-Jun-10

014-385-741

318

CA3322182

535/92

Barkerville

P Wright District Lots Mosquito

International Wayside Gold Mines Ltd

P. Wright Contracting Ltd

2004-Jun-10

014-385-759

92

CA3322179

35/36

Barkerville

Cariboo Gold Quartz

International Wayside Gold Mines Ltd

Mosquito Consolidated Gold Mines Ltd

1994-Oct-03

014-982-013

94

CA3322181

35/36

Barkerville

Cariboo Gold Quartz

International Wayside Gold Mines Ltd

Mosquito Consolidated Gold Mines Ltd

1994-Oct-03

015-289-681

10467

CA4347921

385/674

Barkerville

Williams Creek Crown Grants

BGM

Williams Creek Gold

2016-May-02

017-589-517

391

CA4545743

2517/101

Barkerville

P Wright District Lots Mosquito

International Wayside Gold Mines Ltd

P. Wright Contracting Ltd

2004-Jun-10

018-685-056

289

CA6190280

1036/97

Barkerville

District Lot 289 (PARCEL 1)

BGM

Dennis Wayne Manuel

2017-Aug-03

018-856-870

131

CA801713

4215/55

Barkerville

12438 Barkerville Hwy (Hubs Motel)

Barkerville Gold Mines Ltd.

Harald Dietrich Andreesen and Dianne Elaine Andreesen

2019-Aug-19

026-025-906

391

BB1991819

2517/101

Barkerville

P Wright District Lots Mosquito

International Wayside Gold Mines Ltd.

P.Wright Contracting Ltd.

2004-Jun-10


Accessibility, Climate, Local Resources, Infrastructure and Physiography

The Cariboo Project is accessible via Highway 26, which branches off Provincial Highway 97 at Quesnel. A network of gravel roads provides access to the Cow, Island and Barkerville mountains. Barkerville's project offices and related facilities are located in the town of Wells. The QR Mill is a wholly-owned and fully permitted milling and tailings facility approximately 110 km from Wells. An all-season road provides access (500 Nyland Lake Road).

The City of Quesnel is the primary supply and service centre for natural resource industries and has the closest regional hospital. Manpower is also available in the region. The Cariboo Project has sufficient power and water to support a mining operation. Canadian National Railway provides rail access from Quesnel to the Port of Vancouver.

Barkerville has sufficient surface rights in the Cariboo Project area for mineral exploration and development operations. These rights are generally conveyed by the issuer's Barkerville's Crown-granted mineral claims or by specific permits, like those related to tailings and waste disposal areas, or water and timber use.

The climate allows for year-round mining operations, and there is enough readily available water to conduct diamond drilling. The Cariboo Project area is subject to a semi-alpine continental climate with cool summers and cold winters. The weather is wet throughout the year, with a mean annual precipitation of up to 120 cm and accumulated snow depths up to 1.8 m. The mean 24-h temperature at Wells-Barkerville at an elevation of approximately 1,256 m (4,121 ft) is -9.2°C in January and 12.3°C in July.

The topography in the Cariboo Project area is mountainous, rising from a low point of approximately 1,190 masl in the incised river valleys around the towns of Wells and Barkerville Historic Town & Park to a peak of 2,060 masl at Roundtop Mountain located 25 km south of Wells. Mount Proserpine, 11 km south of the town, summits at 1,830 masl. The area is well forested, and the mountains are typically covered with subalpine forests, except near their peaks. Vegetation is dominated by Engelmann Spruce (Picea engelmann), Lodgepole Pine (Pinus contorta var. latifolia) and Subalpine Fir (Abies lasiocarpa), accompanied by alders and other deciduous varieties on lower wetter slopes flanking river valleys. Prominent in the subalpine flora is the shrub Rhododendron albiflorum.


History

The Cariboo Project contains several historical mines, including Cariboo Gold Quartz, Aurum and Mosquito Creek.

All "reserves" and "resources" estimates provided in this section are historical in nature and should not be relied upon. The qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. It is unlikely they comply with current NI 43-101 requirements or follow CIM Definitional Standards, and their relevance and reliability have not been verified. They are included in this section for illustrative purposes only and Osisko Development and Barkerville are not treating the historical estimate as current mineral reserves.

Historical Mines

Cariboo Gold Quartz Mine

Fred Wells purchased the Rainbow claim group from A.W. Sanders and formed Cariboo Gold Quartz Mining Company Ltd in 1927. The Cariboo Gold Quartz Mine operated from 1927 to 1959 at Cow Mountain. Production from the mine was from several zones: No.1, Tailings, Rainbow, Sanders and Pinkerton.

In October 1942, gold mining was classified as a non-war industry by the federal government and received no priority for labour or supplies. As a result, gold mines in British Columbia were unable to hire replacement labour for the duration of the war.

Following the purchase of the Island Mountain Mine in 1954, Cariboo Gold Quartz Mining Company Ltd focused on developing higher grade pyrite-type replacement mineralized material. Subsequent activities in the mine were mainly confined to the No. 1 and Tailings zones below the 1500 level (through the No.1 shaft), in the Rainbow Zone (No. 2 shaft and No. 1-No. 2 shaft connection), in the Sanders Zone (No. 3 shaft), and the Pinkerton Zone.

The mine closed on August 31, 1959.

In 1959, in its 33rd annual report, the company reported book reserves of 95,265 t of mineralized material, including a 1952 reserve write-down of 42,275 t of 9.26 g/t Au and another 52,990 t of 12.69 g/t Au scattered in 51 mineralized material remnants through 13 levels and across a distance of 10,500 ft (3,200 m).

The Cariboo Gold Quartz Mill continued operating using feed from the Aurum Mine until March 1967. During the period between 1933 and 1967, a total of 1,951,944 t of mineralized material were mined, and 863,307 oz of gold and 91,652 oz of silver were recovered (MINFILE number 093H 019). The average recovery during that period was 95.3%.

Island Mountain Mine (Aurum Mine)

In 1925, C.J. Seymour Baker acquired the Aurum Group, at which he worked until 1932.

In 1932, Newmont acquired the Aurum Group and eight (8) adjacent claims to form Island Mountain Mines Company Ltd.


Milling commenced in 1934 at a rate of 50 short tons per day and reached a peak of 149 st/d in 1941. Quartz-type mineralized material in diagonal vein structures and pyrite-type mineralized material in the Aurum limestone unit were both extracted. The mine was developed over a strike length of 4,500 ft (1,371.6 m). After 1945, no further exploration or development was carried out west of the Aurum Fault, and in 1952 the mine suspended active exploration and development.

Under Newmont's ownership, production from the mine was 770,093 st (699,536 t) from which 333,705 oz of gold and 48,130 oz of silver were recovered (MINFILE number 093H 006). The mill also recovered 531 lbs of zinc and 134 lbs of lead.

Cariboo Gold Quartz Mining purchased the mine and equipment from Newmont in 1954 for a sum of $305,000. Underground workings extending northwest from the Island Mountain Mine into the Mosquito Group are formally known as the Aurum Mine. The Cariboo Gold Quartz Mine and Island Mountain Mine do not connect below Jack of Clubs Lake.

Mosquito Creek Mine

Andrew H. Jukes of Calgary acquired the Mosquito Creek claim group and formed Mosquito Creek Gold in 1971 to explore the ground above the Aurum Mine. Surface exploration drilling and underground development from 1971 to 1975 were financed by a joint venture agreement with the Home Oil Company Ltd of Calgary. They conducted an extensive surface and underground exploration and development program on the property. In 1975, Mosquito Creek Gold purchased all of Home Oil Company's interest in the property. Subsequently, Peregrine entered into a joint venture agreement with Mosquito Creek Gold, whereby it ultimately earned a 50% working interest in the property.

A total of 27,384 oz of gold were recovered from 86,248 t of mostly pyrite-type mineralized material milled during the main production period (1980 to 1983). The operation failed due to low initial reserves and a low discovery rate of new mineralized material. The latter was the result of insufficient development at depth and northwest of the Mosquito Fault.

In 1984, Hudson Bay Mining and Smelting Co. Ltd. optioned the property but dropped it after earning a 10% interest. Hudson Bay Mining and Smelting Co. Ltd. sold its interest back to Mosquito Creek Gold, and Peregrine sold its 50% interest to Mosquito.

In 1986, the property was optioned by Hecla Mining Company of Canada Ltd who conducted underground exploration work and then dropped it.

Mining operations were intermittent until 1987 when Mosquito Creek Gold became Mosquito Consolidated Gold Mines Ltd. After the gold price dropped, and new mineralized material became hard to find, the mine closed in 1987. During the period between 1980 and 1987, a total of 92,826 t of mineralized material were mined from which 35,054 oz of gold and 9,750 oz of silver were recovered (MINFILE number 093H 010).

In 1988, Lyon Lake Mines Ltd optioned the property and earned a 50% interest after performing underground exploration.

Surface Work Programs

Cariboo Gold Quartz Mining Company Ltd (1968)

In 1968, Dolmage Campbell and Associates Ltd carried out 5 km of bulldozer trenching on behalf of Cariboo Gold Quartz Mining.

Seventeen (17) trenches approximately 2 m to 2.5 m deep were excavated across the Baker-Rainbow contact over a strike length of 1.6 km on Island Mountain. Pyritic mineralization, 6 m long by 1 m wide, was discovered in Trench J.


Wharf Resources Ltd (1980-1981)

In 1972, Cariboo Gold Quartz Mining amalgamated with Coseka Resources Ltd to form a company with the name of the latter. In April 1973, Wharf Resources Ltd (formerly Plateau Metals and Industries) amalgamated with French Exploration Ltd (a wholly-owned subsidiary of Coseka Resources).

Wharf Resources carried out surface drilling programs in 1980 and 1981 to search for near-surface mineralized material on the Cariboo and Island Mountain claim groups. A total of 7,010 m of percussion drilling and 1,219 m of diamond drilling were completed in 1980 and 1981.

Blackberry Gold Resources Inc. (1988)

In 1987, Blackberry Gold Resources Inc. completed several work programs on the ARCH 1-4 claim group located on Cow and Richfield mountains. The objective of the work was to discover gold mineralization associated with the system of north-striking fault structures. Ground VLF geophysical surveys were used to define conductors inferred to be the strike extension of major faults on the Cariboo Group of Crown-granted mineral claims. Four strong conductive trends were tested along six fences of percussion drill holes for a total of 2,424 m of drilled in 79 holes. This was followed by 2,465 m of diamond drilling in 19 holes.

Pan Orvana Resources Inc. (1989-1991)

On July 12, 1985, Mosquito Creek Gold purchased the Cariboo and Island Mountain claim groups from Wharf Resources Ltd, Pan Orvana Resources Ltd signed the Cariboo Gold Option Agreement on May 20, 1988, obtaining the right to earn a 50% interest in the Cariboo Group, but terminated the agreement in 1991 without exercising the option.

Pan Orvana Resources Ltd excavated 20 surface trenches, drilled four (4) holes and conducted ground geophysical surveys, geochemical sampling programs and geological mapping.

Gold City Mining Corp. (1994-1995)

In 1994 and 1995, Gold City Mining assembled a large land position consisting of 13,000 ha of mineral titles between Mount Tom and the Cariboo Hudson Mine to form the Welbar Gold Project.

Doing so involved seven (7) option agreements, including one that covered the Mosquito Creek, Island Mountain and Cariboo claim groups. The latter was subject to the Cariboo Option Agreement between Mosquito Consolidated Gold Mines Ltd and International Wayside Gold Mines Ltd. lntera Information Technologies Corp. flew a synthetic aperture radar survey in July 1995. DIGHEM I Power completed a regional airborne radiometric- Mag-EM survey of 1,280 line-km, as well as trenching and diamond drilling on some of their properties, including one (1) hole on the Mosquito Creek Group.

From October 1 to November 30, 1995, Gold City Mining conducted a 13-hole (1,865 m) diamond drilling program on the Cariboo-Hudson Property.

Gold City Mining optioned the Cariboo-Hudson Property from Cathedral Gold Corp. in 1994.

In November 1995, Gold City Mining sunk four (4) diamond drill holes (560 m) on the Williams Creek Property. That same month, Gold City Mining drilled two (2) holes (390 m) on the Island Mountain Property.

International Wayside Gold Mines Ltd (1999-2014)

From 1999 to 2014, IWGM drilled 66 holes totaling 8,602 m in surface diamond drilling on the Island Mountain Project.


International Wayside Gold Mines Ltd (1995-2009)

1995-1999 Work Programs

IWGM worked the Cariboo Project area continuously from May 1, 1995. Most of the work was carried out on the main mine trend, either from the surface or underground from the 1200 level adit. In 1998 and 1999, a secondary target, the BC Vein, was explored over a strike length of 384 m by 31 surface drill holes totaling 2,245.2 m. Between 1995 and 1999, IWGM's drilled 104 holes totaling 7,349.4m in surface diamond drilling, 17 holes totaling 654.1m in underground diamond drilling and 135 holes totaling 5,739.9m in underground percussion drilling over the Rainbow, Pinkerton, Sanders, Butts and BC Vein zones.

In the summer of 1997, IWGM carried out a geochemical and prospecting program to find new mineralized showings and generate targets for further exploration. The geochemical surveys yielded 1,079 soil samples, 59 stream sediment samples and 121 rock samples.

The 1999 Estimate comprised measured resources of 7,158,100 t at 2.43 g/t Au for a total of 559,200 oz of gold, indicated resources of 1,394,300 t at 2.02 g/t Au for a total of 90,500 oz of gold, and inferred resources of 802,000 t at 2.06 g/t Au for a total of 53,100 oz of gold.

These "resources" are historical in nature and should not be relied upon. The qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. It is unlikely they comply with current NI 43-101 requirements or follow CIM Definition Standards, and their relevance and reliability have not been verified. They are included in this section for illustrative purposes only and the Corporation is not treating the historical estimate as current mineral resources.

2000-2009 Work Programs

IWGM carried out extensive work from 2000 to 2009. During this period, IWGM drilled 336 holes totalling 47,222 m in surface diamond drilling over the BC Vein (88 holes), Bonanza Ledge (121 holes), Cow Mountain (29 holes), Myrtle Property (14 holes), Golfinch (6 holes), Goldfinch and Bonanza Ledge (10 holes), Black Bull (3 holes), Mucho Oro (31 holes), Lowhee Creek (2 holes) as well as 7 groundwater monitoring well holes. In addition, from 2003 to 2004, IWGM drilled 76 holes totalling 6,177.4 m in underground diamond drilling over the Bonanza Ledge zone.

Barkerville Gold Mines Ltd (2010-2014)

From 2010 to 2014, Barkerville engaged in surface diamond drilling on the Cariboo Project and drilled a total of 318 holes (73,700.1 metres). Drilling was done on Bonanza Ledge, Cow Mountain, Island Mountain, Pit Vein Zeon, BC Vein, Souts Gulch and Myrtle Property zones. Details of the work program are set out in the Cariboo Technical Report.

Barkerville Gold Mines Ltd (2015-2019)

During 2015, Barkerville milled 11,275 tonnes of Bonanza Ledge mineralized material at an average head grade of 10.14 g/t Au, a recovery rate of 94%, and an average net operating cost of $877/oz. Based on the results as of February 28, 2015, management decided to cease production and place Bonanza Ledge under care and maintenance.

These "resources" are historical in nature and should not be relied upon. The qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. It is unlikely they comply with current NI 43-101 requirements or follow CIM Definition Standards, and their relevance and reliability have not been verified. They are included in this section for illustrative purposes only and the Corporation is not treating the historical estimate as current mineral resources.


In January 2017, Barkerville began commissioning its wholly-owned QR Mill using the low-grade stockpile at the Bonanza Ledge open pit. Material sorting was done at the stockpile, producing relatively high-grade pre-concentrate. By the end of February 2017, Barkerville had transported 2,860 t to the QR Mill for an average grade of 2.94 g/t Au. During the second quarter of 2017, Barkerville began portal and underground development at the Bonanza Ledge Mine to prepare for the processing of in-situ Bonanza Ledge material. A total of 470 m of underground development was completed in 2017, resulting in the processing of approximately 7,000 t of both low-and higher-grade development material at the QR Mill for commissioning and training purposes.

In 2015, Snowden Mining Industry Consultants Pty prepared the 2015 Estimate for Cow Mountain using the multiple indicator kriging method and all of Barkerville's drill hole data available by the end of September 2014. The 2015 Estimate was reported at a cut-off grade of 0.50 g/t Au demonstrated an indicated mineral resource of 35.6 Mt of 2.4 Au g/t and 2.8 Au Moz and inferred mineral resource of 27.5 Mt at 2.3 Au g/t and 2.0 Au Moz. This estimate was based on the results of a Whittle pit optimization to a depth of 1,000 ft (304.8 m) below the surface, around the underground workings of the Cariboo Gold Quartz Mine. The effective date of the 2015 Estimate is March 31, 2015.

These "resources" are historical in nature and should not be relied upon. The qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. It is unlikely they comply with current NI 43-101 requirements or follow CIM Definition Standards, and their relevance and reliability have not been verified. They are included in this section for illustrative purposes only and the Corporation is not treating the historical estimate as current mineral resources.

In 2016, Barkerville mandated InnovExplo to complete a NI 43-101 technical report and 2017 MRE for the Barkerville Mountain deposit. GEOVIA GEMS software v.6.7 was used for modelling purposes and the estimation approach, which consisted of 3D block modelling and the ordinary kriging interpolation method. The 2017 MRE for the Barkerville Mountain deposit is reported at a 3.5 g/t cut-off grade demonstrated measured resources of 248,200 t at 8.07 Au g/t and contained Au of 64,400 Moz, indicated resources of 436,700 t at 6.75 Au g/t and contained Au of 94,400 Moz and inferred in-situ resources of 108,100 t at 5.34 Au g/t and contained Au of 18,600 Moz. The effective date of the 2017 Estimate is March 21, 2017.

These "resources" are historical in nature and should not be relied upon. The qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. It is unlikely they comply with current 43-101 requirements or follow CIM Definition Standards, and their relevance and reliability have not been verified. They are included in this section for illustrative purposes only and the Corporation is not treating the historical estimate as current mineral resources.

In 2017, Barkerville mandated InnovExplo to update the 2017 MRE and prepare the 2018 MRE. The ordinary kriging grade interpolation method was used. The results of the in situ 2018 MRE at the 3.0 g/t cut-off grade indicates a total measured and indicated resource of 8,109,900 t at 6.1 Au g/t and 1,599,000 Au (Oz) and total inferred of 12,731,200 t at 5.2 Au g/t and 2,155,700 Au (Oz). The measured and indicated resource estimate includes the Bonanza Ledge, BC Vein, Mosquito, Shaft, Valley and Cow deposits and the inferred resource estimate includes the BC Vein, Mosquito, Shaft, Valley and Cow deposits. The effective date for the 2018 MRE is May 2, 2018.

These "resources" are historical in nature and should not be relied upon. The qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. It is unlikely they comply with current NI 43-101 requirements or follow CIM Definition Standards, and their relevance and reliability have not been verified. They are included in this section for illustrative purposes only and the Corporation is not treating the historical estimate as current mineral resources.

In 2019, Barkerville mandated InnovExplo to review, validate and update the 2018 MRE. The ordinary kriging grade interpolation method was used. The 2019 MRE at the official 3.0 g/t cut-off grade indicates: (i) measured resources at 175,000 t at 6.1 Au g/t and 34,000 ounces (Bonanza Ledge); (ii) total indicated resources of 13,266,000 t at 5.63 Au g/t and 2,401,000 ounces (Bonanza Ledge, BC Vein, Mosquito, Shaft, Valley, Cow); and (iii) total inferred resources of 11,936,000 t at 5.0 Au g/t and 1,922,000 ounces (BC Vein, Mosquito, Shaft, Valley, Cow).


These "Resources" are historical in nature and should not be relied upon. The qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. It is unlikely they comply with current NI 43-101 requirements or follow CIM Definition Standards, and their relevance and reliability have not been verified. They are included in this section for illustrative purposes only and the Corporation is not treating the historical estimate as current mineral resources.

Drilling and Exploration

From 2015 to 2018, Barkerville's exploration team executed a systematic pipeline approach on the Cariboo Project with surface mapping, geochemical sampling and drilling (diamond and RC). Table 2 summarizes the drilling on the Cariboo Project from 2015 to 2018, and Table 3 summarizes all surface geochemical samples.


Table 2 - Summary of drilling on the Cariboo Project from 2015 to 2018

Deposit

BC Vein and BL

Barkerville
Mountain

Cow Mountain

Valley Zone

Shaft Zone

Mosquito Creek

Regional Targets

 

Total/
Year

Year

(m)

(hole)

(m)

(hole)

(m)

(hole)

(m)

(hole)

(m)

(hole)

(m)

(hole)

(m)

(hole)

2015

33,429

164

7,890

42

-

-

-

-

-

-

-

-

-

-

41,319

2016

8,695

57

2,621

10

32,291

242

-

-

11,290

33

16,027

50

-

-

70,924

2017

4,772

34

3,918

8

4,479

14

41,369

93

93,958

212

13,456

44

-

-

161,952

2018

2,305

14

-

-

67,936

250

503

2

53,609

169

4,597

20

4,903

14

133,853

Total

49,209

269

14,429

60

104,706

506

41,872

95

158,857

414

34,080

114

4,903

14

408,048

Table 3 - Surface geochemical samples collected on the Cariboo Project 2015-2018

Year

Rock sample (qty)

Soil sample (qty)

Grab

Select

Float

Linear

Channel

Panel

2015

-

25

-

-

-

111

-

2016

81

75

1

17

341

50

4,928

2017

121

42

-

10

11

-

3,775

2018

108

182

25

8

26

4

6,307

Total

310

324

26

35

378

165

15,010



Geological Setting and Mineralization

The Cariboo Project lies within the Kootenay Terrane of the Omineca Tectonic Belt in the south-central Canadian Cordillera. The Omineca rocks were complexly deformed by Middle Jurassic to Early Tertiary compressional tectonics, and by Tertiary transtension and extension. The Kootenay Terrane in the vicinity of the Cariboo Project is subdivided into the eastern Cariboo and western Barkerville subterranes. The Cariboo Subterrane is juxtaposed on the Barkerville Subterrane by the east-dipping Pleasant Valley Thrust.

The Snowshoe Group, central to the Barkerville Subterrane, hosts the Cariboo Project.

The Barkerville and Cariboo subterranes comprise metamorphosed equivalents of continent-derived siliciclastic protoliths with interlayered marble units and granitic orthogneiss. The subterranes are pericratonic their character and are thought to have formed near the current western margin of Laurentia. Various authors suggest that both Barkerville and Cariboo subterranes share the same tectostratigraphic position and depositional environment.

The principal gold-producing areas in the Barkerville Subterrane are in areas of greenschist-grade metamorphism (chlorite grade) and do not extend into amphiboIite-grade domains. The S1 and S2 fabrics are defined by metamorphic muscovite, quartz, albite, chlorite and locally biotite, and its character is governed by rock type. The metamorphic micas generally define foliation suggesting that peak metamorphic temperature coincided with the formation of cleavage.

Lode-gold mineralization on the Cariboo Project shares many characteristics with orogenic gold deposits. Gold mineralization is associated with orogenic silica-carbonate-sericite-pyrite stable fluids moving along secondary permeability induced by the interaction of metamorphic fabrics, sublayer-parallel strike-slip faults, contacts between lithological units, and rheological contrasts between lithologies.

The mineralization is defined in the Cow-Island-Barkerville Mountain Corridor. The Cow/Island segment covers a strike length of 3.7 km and a width of approximately 700 m, down to a vertical depth of 600 m below surface. The Barkerville segment covers a strike length of 3km and a width of approximately 700 m, down to a vertical depth of 500 m below surface.

Five inter-related styles of mineralization are observed on the Cariboo Project:

1. Fault-fill breccia veins subparallel to foliation (S1), hosted in carbonaceous mudstone (BC Vein style);

2. Vertical NE-trending extensional (axial planar) veins dominantly hosted in sandstone units in S3 cleavages (Cow Mountain, Shaft Zone, Mosquito Creek, Lowhee Zone and KL Zone vein mineralization);

3. Fractured moderately dipping ENE-trending shear veins, hosted in sandstone units (Cow Mountain, Shaft Zone, Mosquito Creek, Lowhee Zone and KL Zone vein mineralization);

4. Gold-bearing sulphide replacements hosted in fold hinges of calcareous sandstone units (Island Mountain and Mosquito Creek Replacement Style);

5. Gold-bearing sulphide replacement mineralization hosted in fault-bounded calcareous siltstone units (Bonanza Ledge style).

Vein mineralogy is largely simple, composed predominantly of quartz and lesser iron carbonate gangue. Pyrite is the dominant sulphide mineral with vein content ranging from trace amounts to tens of percent. Pyrite content appears to have a direct association with gold content in the veins. Although galena and arsenopyrite can also occur in individual veins in amounts up to several percent, these minerals generally occur in trace amounts as does sphalerite, chalcopyrite, argentite and scheelite. Generally increasing amounts of galena and argentite are related to elevated silver values. At least two sulphide events are observed in veins: one early event inter-grown with quartz and a secondary event infilling pre-existing void spaces or vein margins. The bismuth-lead sulphosalt cosalite also occurs in isolated veins and appears to be associated with high-grade gold independent of pyrite content. Cosalite is only observed as intergrowths with quartz and its timing is considered early.


Replacement mineralization in calcareous sandstones varies from fine to coarse-grained pyrite with lesser arsenopyrite. Bonanza Ledge replacement mineralization, hosted in calcareous siltstone, consists entirely of fine-grained pyrite mineralized material. Sulphide content in replacement mineralized material types is generally high, ranging from 10% (replacing thin calcareous bands) to massive (replacing entire beds). The timing relationship for observed mineralization types is considered to be contemporaneous, with vertical veins acting as feeders for the fault fill veins, replacement horizons and earlier shear veins.

Large veins tend to exhibit a strong silica alteration halo with pyrite contents that range from several percent to massive. Farther from the large veins, the pyrite content drops to trace amounts with intense silicification. Most smaller veins have strong silica with trace pyrite proximal to vein margins; they rarely show the massive pyrite deposition exhibited in larger veins. A widespread moderate silica envelope with patchy but intense silica closer to the veins is observed within the vein corridors. More distal from the vein corridors, the intensity of silica alteration becomes weak, and sericite is the dominant alteration mineral with an iron carbonate halo outside of the sericite. Localized veins show argillic and chloritic alteration within the vertical axial planar veins.

Exploration

Barkerville's exploration team carried out exploration work on the Cariboo Project from May to December 2019. The program consisted of geological mapping and surface rock sampling, followed by interpretation and the preparation of an internal mapping report. Mapping and sampling efforts specifically targeted the northwest and southeast strike extensions of the known mineralization and defined resources in the Wells area, as well as a parallel trend at Mount Burns (Lightning Creek Trend).

Geological mapping

The principal aims of the 2019 regional mapping program were to expand the coverage of Barkerville 1:2,000-scale mapping within the prospective sandstone of the Barkerville Trend in an effort to delineate greenfield exploration targets and provide recommendations for the targeting methodology.

Mapping was carried out over 19 weeks during the late-May to early-October field season, with data interpretation spanning into December. The field component of the program consisted of detailed geological mapping and surface structural data collection carried out across approximately 2,900 ha within the Barkerville Trend, split between the Island Mountain and Proserpine prospects. The focus of late-season mapping shifted to the Lightning Creek trend, exposed at Mount Burns.

A total of 200 surface samples or various types (grab, select, panel, linear) were collected in 2019 across all mapping areas, as summarized in Table 4. The mapping and sampling confirmed the extension of the corridors and allowed Barkerville to develop drilling targets.

Table 4 - 2019 Cariboo Project surface rock samples

Prospect

Grab Samples

Select
Mineralized
Samples

Panel Samples

Linear Samples

Total Samples

Antler Creek

2

0

0

0

2

Mount Burns

4

8

0

0

12

Island Mtn

11

53

2

0

66

Proserpine Mtn

35

78

6

1

120

Total

52

139

8

1

200



Drilling

Barkerville is continuously drilling on the property and the drilling was still ongoing at the time of the report. The drilling performed from January to December 2019 was included in the Cariboo Technical Report and is defined as the "2019 Program" and the potential impact on the Cariboo Technical Report is presented below for the drilling completed to date. The objectives were to test new brownfields targets adjacent to known deposits, infill high-grade MSO stopes modelled from the PEA and currently classified as inferred, explore the depth potential of known deposits, and continue exploration on regional targets. Diamond drill core is the principal source of geological information for the Cariboo Project.

Drilling Methodology

The 2019 Program was performed by Hy-Tech Drilling Ltd, based in Smithers, British Columbia. Collar locations were determined using a Trimble DGPS.

Drills were lined up using a Reflex TN14 Gyrocompass or a Suunto compass. The downhole dip and azimuth were surveyed using a Reflex EZ-shot tool. Surveys started 10 m below the casing, and readings were taken at least every 30 m downhole. A reading was also taken at the bottom of the hole if the EOH depth was 15 m or more from the last test. A multi-shot survey was performed in exploration holes upon completion. Drilling contractors handled the instruments, and survey information was transcribed and provided in paper format to Barkerville geologists. Starting in January 2019, survey information was also copied from the instruments to USB drives and transferred into the Barkerville Database.

At the drill rig, the drill helpers placed core into core boxes and marked off every 3-m drill run using a labelled wooden block. Oriented core measurements were taken for all exploration holes, but stopped for most infill holes from July 2019 onward. The drill helpers were responsible for marking the core using a Reflex Act III tool. All holes were drilled in NQ diametre unless noted otherwise in this report.

Core Logging Procedures

The drill core was transported to Barkerville's facility in Wells where it was cleaned of drilling additives and mud, and the metres were marked before collecting the data.

Geotechnical data collection includes RQD at 1-m intervals. Magnetic susceptibility data were not collected because it was concluded that such data are not relevant to the deposit. Geotechnicians performed hardness testing on all core.

Downhole orientation lines were connected where possible, and orientation measurements recorded.

All data were recorded using Datamine DHLogger software. Sample intervals and pertinent information regarding lithology, mineralization and alteration were marked on the core.

After recording the sampling information, drill core samples were sawn in half, labelled, and bagged. The remaining drill core is stored onsite in a secured location for future reference. Numbered security tags were applied to lab shipments for chain of custody requirements. Samples were then shipped to the laboratory of ALS Minerals in North Vancouver, British Columbia, for analysis.


2019 Drilling Program

The 2019 Program focused on the Cow-Island-Barkerville Corridor, as well as Proserpine Mountain.

Barkerville drilled 92,297 m in 264 surface holes at an average recovery rate of 96%. A summary of the drilling program is presented in Table 5.

Table 5 - Summary of Barkerville's 2019 Program

Deposit / Prospect

Total metres

Number of Holes

BCV

3,744

24

BM

36,376

87

LZ

8,422

24

WC

1,572

4

CM

16,137

72

MC

8,259

15

SZ

12,032

26

WLO

3,079

6

PSP

2,676

6

Totals

92,297

264

The 2019 Program at Island Mountain focused on the Shaft Zone, Mosquito Creek and the Willow Regional Target, totaling 23,370 m in 47 holes.

The drilling conducted at Shaft Zone and Mosquito Creek continued the category conversion work and followed up on the results from 2018 to expand known mineralized vein corridors. The Shaft Zone (12,032 m, 26 holes) was explored and defined from surface to a maximum vertical depth of 750 m, while drilling at Mosquito Creek (8,259 m, 15 holes) targeted shallow modelled vein corridors to a maximum vertical depth of 370 m and replacement-style mineralized zones. Infill drilling on these two deposits was designed to intercept modelled vein corridors with a 25-m spacing at depth in order to convert inferred resources to indicated.

Drilling at the Willow prospect tested the 2017 gold-in-soil anomalies in the northwest area of Island Mountain and followed up on 2018 mapping recommendations. Two (2) stratigraphic holes were drilled at an azimuth of 225° followed by four (4) holes drilled at an azimuth between 120° and 130° to test surface anomalies, for a total of six (6) drill holes and 3,079 m.

The 2019 Program at Cow Mountain continued the category conversion work on known vein corridors (inferred to indicated) and explored the down-dip extent of selected targets. The targeted vein corridors were drilled from surface to a maximum vertical depth of 280 m with a 25-m intercept spacing at depth. A total of 16,137 m was drilled in 72 holes. No new holes were drilled on the Valley deposit during the 2019 Program.

The aim of the 2019 Program at Barkerville Mountain was to provide infill data on the BC Vein and to explore targets identified during the 2018 mapping program on the KL Zone, Williams Creek, and Lowhee Zone prospects. Historical drilling and surface geochemical data also contributed to the generation of these exploration targets.

BC Vein drilling, totaling 3,744 m in 23 holes, improved block model confidence and further delineated the deposit. Drilling at the three exploration prospects targeted mineralized vein corridors within the prospective sandstone unit analogous to those on the Cow and Island mountains. In total, 86 holes (36,250 m) were drilled on the KL prospect, four (4) holes (1,572 m) on the Williams Creek prospect, and 24 holes (8,422 m) on the Lowhee prospect.


At the Proserpine prospect, a single drill rig tested surface geochemical results and the down-dip extent of mineralization reported from historical workings. One (1) stratigraphic hole was drilled at an azimuth of 210°, followed by five (5) holes drilled at 120° azimuth to intersect the anomalies. Six (6) drill holes were completed for 2,676 m.

No geotechnical or metallurgical holes were drilled in 2019.

Full details on the 2019 Program can be found in the Cariboo Technical Report.

2020 Drilling Program

Parallel to the Cariboo Technical Report, which includes all drilling to the end of 2019, Barkerville drilled a total of 57,078 meters in 201 holes in 2020.  The 2020 Program again focuses on the Cow-Island-Barkerville Corridor. Barkerville has currently drilled 25,397.7 metres in 82 holes at an average recovery rate of 97% (as of September 28, 2020). A summary of the Drilling Program is presented in Table 6.

Table 6 - Summary of Barkerville's 2020 Program

DEPOSIT

NUMBER OF
HOLES

METRES DRILLED

BC VEIN AND BONANZA LEDGE

3

560.60

LOWHEE ZONE

24

10,144.50

COW MOUNTAIN

48

12,596.05

VALLEY ZONE

56

17,558.85

SHAFT ZONE

15

3,909.00

MOSQUITO CREEK

50

9,392.40

PROSERPINE

5

2,917.40

TOTAL

201

57,078.80

The 2020 drilling has been focused in the Valley Zone to continue the category conversion work, expand known mineralized vein corridors, and follow up on results from the 2018 MRE. The targeted vein corridors are being drilled from surface to a maximum vertical depth of 825 m with a 25-m intercept spacing at depth. A total of 17,558.85m were drilled in 56 holes.

The 2020 Program at Cow Mountain continued the category conversion work on known vein corridors (inferred to indicated) and explored the down-dip extent of selected targets. The targeted vein corridors were drilled from surface to a maximum vertical depth of 350 m with a 25-m intercept spacing at depth. A total of 12,596.05 meters were drilled in 48 holes.

The aim of the 2020 Program at Barkerville Mountain was to provide infill data on the BC Vein and to further define the Lowhee Zone prospect.

BC Vein drilling, totaling 560.60 m in 3 holes, improved block model confidence and further delineated the deposit. Drilling at the Lowhee Zone targeted mineralized vein corridors within the prospective sandstone unit analogous to those on Cow and Island mountains. The targeted vein corridors were drilled from surface to a maximum vertical depth of 370 m with a 50-m intercept spacing at depth. A total of 10,144.50 m were drilled in 24 holes.


The 2020 Program at Island Mountain has so far consisted of 15 holes drilled at Shaft Zone for a total of 3,909 m. Further drilling at Shaft Zone is set to continue in the winter of 2020 and will continue the category conversion work.

Barkerville's 2020 Drilling Program was paused from March through June 2020 due to COVID-19.

The intersections were visually compared in 3D to the mineralized zones 3D solids and interpolated block grades of the 2020 MRE.

Overall, the visual inspection of the 2020 drilling results demonstrated that the thickness and the grade of the mineralized zones are in the same order of magnitude as the 2020 MRE. The 2020 drilling continues to confirm the geological and grade continuities that were demonstrated in the 2020 MRE.

For the purpose of the Cariboo Technical Report, InnovExplo is of the opinion that the gains and the losses would balance each other, and the resulting difference would not be material to the overall resource. According to the drilling results in the extension of the known mineralized zones and with the discovery of new zones, there is a potential to increase the mineral resources.

2021 Exploration activities

A total of 152,500 meters were drilled in 2021 on the Cariboo Gold Project as part of the exploration and category conversion drill program to support the ongoing technical work. The drilling commenced in January 2021 and was completed in October with up to 12 diamond drill rigs utilized during the campaign. By deposit, a total of 61,000 meters were drilled at Shaft, 50,000 meters at Valley, and 30,000 meters at Lowhee and 10,000 meters at Mosquito. An additional 1,500 meters were drilled at QR.  The drilling confirmed down dip extensions of mineralized vein corridors and high-grade intercepts within the current mineral resource estimate. The mineral resource estimate incorporates eight deposit areas; the Shaft and Mosquito Creek deposits on Island Mountain, Cow and Valley deposits on Cow Mountain, and Lowhee, KL, BC Vein and Bonanza Ledge deposits on Barkerville Mountain at a cut-off grade of 2.1 g/t Au ("grams per metric tonne"). The cut off for Bonanza Ledge Deposit is 3.5 g/t Au. The objective of the 2021 exploration and delineation program is to convert inferred resources to indicated resources to support reserves for the ongoing advanced technical studies and to increase overall ounces in the inferred and indicated resource categories by exploring the depth and strike potential of the known deposits.

Sample Preparation, Analyses and Security

The following paragraphs describe the sample preparation, analysis, and security procedures for all drill programs including in the current resource estimate. InnovExplo reviewed the QA/QC procedures and results.

Core Handling, Sampling and Security

Core handling, sampling, and security procedures are managed by Barkerville personnel. The procedures are described in detail below.

The drill core is placed into wooden core boxes at the drill site with the end of each drill run marked with a small wooden block displaying the depth of the hole. Box labels indicate the hole and box numbers. The boxes are racked and covered at the drill, secured with ratchet straps, and then transported daily from the drill site to Barkerville's core storage and logging facility by truck by the drilling contractor. The boxes are labelled in permanent marker with the hole and box number (e.g. GR-15-01 Bx 1). The secure core storage and logging facility is located in the town of Wells.

Upon receiving a load of core from the drill crew, the core is brought into the logging room. Metreage blocks are checked for errors, the core is oriented in the box and cleaned, and the metre-marks are drawn on the core before logging begins. The geological and geotechnical core logging data is collected with Datamine's DHLogger software.


The sample intervals are between 0.5 m and 1.5 m in length and do not cross geological contacts. A line is drawn with a pencil along the length of the core to indicate where the core will be sawn. Each sampling ticket is divided into three tags. One tag is stapled to the core box at the beginning of the interval to record the drill hole number and sample interval recorded. The second tag is placed in the sample bag, which is sent to the laboratory; this tag does not reference the drill hole or metreage. The last tag remains in the sample ticket book with the hole number and recorded interval. All samples are assigned a unique sample number.

After the core boxes with tags are photographed, the core boxes are moved to the cutting station. The core is cut lengthwise by diamond saw, with half the core submitted as the primary sample and the remaining half core retained in the core box for future reference.

The sample are individually bagged with the corresponding tag. The tag number is written on the bag and every bag is sealed. The bags are then placed on rice bags and the rice bags are sealed with numbered security tags for chain of custody requirements. If any tampering with security tags is suspected, the laboratory will communicate with Barkerville. Samples are transported to the ALS lab in Vancouver by Van Kam transport trucking service. The remaining drill core is subsequently stored on site at Barkerville's secure facility in Wells, British Columbia.

Laboratories Accreditation and Certification

The ISO and the International Electrotechnical Commission ("IEC") form the specialized system for worldwide standardization. ISO/IEC 17025 General Requirements for the Competence of Testing and Calibration Laboratories sets out the criteria for laboratories wishing to demonstrate that they are technically competent, operating an effective quality system, and able to generate technically valid calibration and test results. The standard forms the basis for the accreditation of competence of laboratories by accreditation bodies. ISO 9001 applies to management support, procedures, internal audits and corrective actions. It provides a framework for existing quality functions and procedures.

All the samples of the 2019 Program were submitted to the ALS Minerals laboratory in British Columbia. The ALS Minerals laboratory is ISO 9001 certified and accredited (ISO/IEC 17025) for the analytical methods used routinely on the samples from the Cow, Island and Barkerville Mountains. The ALS Minerals facility is a commercial laboratory independent of Barkerville and has no interest in the Cariboo Project.

Sample Preparation and Assay

Sample Preparation

Gold Assaying


Multi-element Assaying

Samples meeting these criteria are then analyzed by ICP-MS. Results are corrected for spectral interelement interferences.

Specific Gravity Measurements

Quality Assurance and Quality Control

A total of 84,039 samples (including QA/QC samples) were assayed during 2019 for the 2020 MRE. The 2019 QA/QC program included a routine insertion of standards and blanks. Barkerville included one (1) standard in every 20 samples and one (1) blank in every 40 samples. The 2019 QA/QC program did not include field or coarse reject duplicates.

Accuracy is monitored by adding standards at the rate of one CRM for every 20 samples. A total of 4,202 standards were analyzed during the 2019 Program, for an insertion rate of 5.0%. Eight different CRMs from mineralized material Research and Exploration Pty Ltd (ore assay standards were used). The average CRM results are all within ±1.5% of the expected values. Most assays were within ±3 standard deviations of the accepted value.

In 2019, 2,101 blanks were submitted to ALS Minerals with the core samples. All the blanks analyzed at ALS Minerals, except for the one high failure, assayed less than or equal to 0.1 g/t Au, which is 10 times the detection limit of 0.01 g/t Au, and are thus considered acceptable.

Conclusions

A total of 256 holes were drilled in 2019 on the Cariboo Project. InnovExplo is of the opinion that the sample preparation, analysis, QA/QC and security protocols used for the Cariboo Project follow generally accepted industry standards, and that the data is valid.

Data Verification

InnovExplo's data verification included the diamond drill hole databases used for the Cariboo Technical Report, as well as the review and validation of the geological models of each deposits, and the review of information on mined-out areas and the data for selected drill holes (assays, QA/QC program, downhole surveys, lithologies, alteration and structures).


The QPs also reviewed and validated the resource estimation process followed by Barkerville and Talisker Exploration Services Inc., including all parametres, geological interpretation, basic statistics, variography, interpolation parametres, block model construction, scripts that run the model, volumetric report, and the validation process.

Historical work subject to verification consisted of the holes used for the 2019 MRE. Basic cross-check routines were performed between the current Barkerville Databases and the previously validated database for the 2019 MRE.

InnovExplo was granted access to the assay certificates for all holes in the 2019 drilling programs. Assays were verified for 5% of the drill holes. No discrepancies were found.

Barkerville Drill Hole Collar and Downhole Surveys

The 2019 surface drill hole collars in the resource area were surveyed using a Trimble DGPS unit. InnovExplo 2019 verifications included a visit to an active drill site.

Downhole surveys (single shot and multi shots) were conducted on the majority of surface holes. The Reflex survey information was verified for 5% of the holes from the latest drilling programs. No discrepancies were found.

Assays

The author had access to the assay certificates for all historical and current holes in the Barkerville Databases. All assays were verified for selected drill holes from the latest drilling program, i.e., 5% of the 2019 drilling program. The assays recorded in the databases were compared to the original certificates from ALS Minerals (North Vancouver, British Columbia). The electronic transfer of the laboratory results via e-mail, followed by the electronic transfer directly into the databases by Barkerville staff, allowed for immediate error detection and prevented any typing errors.

No errors or discrepancies were found. The final databases are considered to be of good overall quality. InnovExplo considers the Barkerville Databases to be valid and reliable.

Discussions and reviews with Barkerville personnel during video conferencing convinced the author that the protocols and the QA/QC program in place are adequate.

Mined-out Voids

No underground activities were carried out in 2019. The 2019 voids model for Bonanza Ledge (all types of historical underground workings combined; see below) remains current and was used for the Cariboo Technical Report.

For the Cow, Valley, Shaft, Mosquito, KL, Lowhee and BC Vein & Splays deposits, the drilling program continues to intercept undocumented voids. To reduce the associated risk, a spherical buffer with a 10-m radius was applied around the intercepts to represent a potential stope of 20 m in diametre. These "buffer voids" were used to deplete the final resource estimate.

The voids are a combination of the historical underground workings (stopes, drifts and shafts) of the Cariboo Gold Quartz Mine (Cow Mountain), the Aurum and Mosquito Creek mines (Island Mountain), and the Barkerville Mountain Mine (Barkerville Mountain).


InnovExplo considers the level of detail in the void triangulation to be of good quality and reliable, despite some uncertainty related to previously undocumented voids.

Barkerville Logging, Sampling and Assaying Procedures

InnovExplo reviewed several sections of the mineralized core by comparing core photographs, drill logs and the database.

Mineral Processing and Metallurgical Testing

Sample Selection and Compositing

In 2019, BBA, Osisko and Barkerville developed a metallurgical testwork program to characterize the behaviour of mineralized material from the Cariboo Project during mineral processing and extraction. It included composite samples composed of NQ diamond drill core obtained from the Shaft, Cow, Valley and Mosquito zones during the 2016, 2017 and 2018 drilling programs. The results were presented in the 2019 PEA.

The metallurgical testwork program was developed by BBA, Osisko Gold Royalties and BGM in order to characterize Cariboo Gold mineralized material behaviour to mineral processing and extraction processes. It included composite samples from four zones; Shaft, Cow, Valley and Mosquito. The material for the composites was obtained from NQ drill core intervals from the diamond drill core of the drilling campaigns performed by BGM in 2016, 2017 and 2018.

The testwork program was designed to determine the mineralized material response to a preconcentration process and subsequently to the QR Mill process.

The selected mineralized intervals for the LOM composite included wall rock/shoulder samples from quartered NQ drill core and were separated on site into two size fractions: (-60 mm/+10 mm) sized material sent to Steinert in Kentucky, USA for mineral sorting testwork; and (-25 mm) sized material sent to SGS Burnaby, British Columbia, for compositing for metallurgical testwork.

A single composite of fines (-25 mm) fraction was prepared at SGS by blending the material from each zone to represent the expected LOM distribution. The testwork for the fines (-25 mm) fraction involved mineralized material characterization, grindability, gravity and flotation. Mineral sorting pre-concentration products received from Steinert were also blended to create composites, representing the expected LOM distribution and individual mineralized zones. Cyanide leaching response of pre-concentrates from both the mineral sorting and flotation samples were tested individually. A bulk sample representing the QR Mill feed blend of mineral sorter concentrate and flotation concentrate was prepared for leach optimization.

Drill core intervals for variability composites that represented Gold grade variation of each mineralized zone were selected by BGM, Osisko and BBA and sent to SGS for a second metallurgical testwork campaign. The material received for the variability testwork program was 1,243 kg from Shaft Zone, 728 kg from Cow Zone and 180 kg from Valley Zone (Table 13-2). The drill core intervals received were crushed to -35 mm and screened. The coarse fraction (-35+10 mm) of the material was sent to Steinert for mineral sorting testwork. (-10 mm) sized material was kept at SGS for metallurgical testwork. Mineral sorting products received back from Steinert were assayed and prepared for metallurgical testwork at SGS.

Comminution Testwork

Samples were submitted to crusher work index, Bond ball mill work index and abrasion index testing at SGS.


Mineral Sorting Testwork

Mineral sorting testwork was conducted at Steinert facilities in Kentucky, USA, in August 2018. The initial testwork program focused on 1,264 kg of drill core material, from all four deposits, crushed to -60 mm/+10 mm. The mineral sorting products of two samples from Shaft Zone and Cow Zone were recombined to reproduce the previously tested -60 mm/+10 mm feed, crushed to -35 mm/+10 mm and sent back to Steinert for mineral sorting.

The second mineral sorting testwork program involved the variability samples from three mineralized deposits. Ten variability samples sized -35 mm/+10 mm were mineral sorted at Steinert in January 2019.

Once the mineral sorting tests were completed, the mineral sorting products were sent to SGS for analysis along with the -8 mm fines generated during mineral sorting due to sample handling.

Flotation Testwork

Kinetic flotation tests were conducted on samples: fine fraction gravity tails, fine fraction of whole rock composites, OSC, and blend of mineral sorter concentrate with fines.

The gravity tails composites were produced from bulk gravity concentration tests, while the whole rock samples consisted of the -25 mm fines. The effect of grind size on flotation performance at target P80 values of 200, 150 and 100 microns was tested on these samples. Whole rock variability composites (SZ1, SZ2, SZ3 and SZ4) were tested at two target P80 values of 200 and 400 microns.

Mineral sorting concentrate of CZ and SZ variability samples were tested at 100 and 200 microns. The same mineral sorter concentrate samples were blended with their generated fines and tested at 100 and 200 microns.

Gravity Concentration

Gravity concentration tests were performed on the blend of mineral sorter concentrate and flotation concentrate prior to leach tests. The samples were first subjected to gravity concentration using a lab scale Knelson concentrator and further concentrated with Mozley table. The average gold recovery was 28.1%.

Leaching Testwork

A leaching program was conducted and included flotation rougher concentrates, OSC and blended flotation/mineral sorter concentrates at 70:30, 50:50 and 30:70 of fines-to-coarse ratios. The fines-to-coarse proportion for operations has not yet been established, the testwork program was designed to cover a range of scenarios. The samples were prepared to a pulp density of 45% (w/w) solids, with the exception of the flotation rougher concentrate leach tests that were run at 35% (w/w) solids. All leaching tests were conducted at a target pH of 11 to 11.5 and dissolved oxygen levels of 6 ppm to 8 ppm.

Fines flotation concentrate, mineral sorter concentrate flotation concentrate and mineral sorter concentrate of variability composites were blended in proportions, which would represent the preconcentrate production and leached at 45 and 75 microns with and without pre-treatment.

Cyanide Destruction Testwork

Cyanide destruction testwork was performed on a bulk gravity tailings sample of the 50:50 (fines to coarse ratio) blend of flotation concentrate and mineral sorter concentrate at Cyanco following cyanidation. To reduce the reagent consumption rates, a pre-aeration step added to leaching ahead of cyanide destruction. The addition of the pre-aeration step reduced the cyanide consumption and the amount of total cyanide in leach tails by reducing the formation of stable metal cyanide complexes, which were suspected to be cyanide consumers, and as a result reduced the detox reagent consumption rates. Targeted cyanide levels were successfully achieved with both conditions.


Thickening, Filtration and Rheology Testwork

Three samples were sent to Pocock Industrial in Salt Lake City, Utah for thickening, filtration and rheology testing; these included flotation tailings, pre-leach thickener feed and detoxed tailings.

All three samples were submitted to flocculant screening tests to identify the best reagent for flocculation of solids to promote rapid settling and reducing suspended solids concentration in overflow. The screening tests also provided an indication of the required reagent dosing. The selected flocculant for all three samples was a high molecular weight, 10% charge anionic polyacrylamide.

Once an appropriate flocculant was selected, static settling tests were conducted to provide an estimate of the optimized operating parametres, including feed slurry density and flocculant dosing, for dynamic testing. The recommended flocculant dosing for dynamic testing ranged between 24 g/t and 36 g/t.

Dynamic thickening tests were performed on each material to determine the recommended maximum hydraulic design basis for high rate thickener design. Expected underflow solids concentrations and overflow suspended solids concentrations were also determined in testing.

Pre-Concentration Recovery and Mass Pull Projection

The average recovery and mass pull results presented in this section were for the preconcentrate blends prepared for the testwork program. The blends were prepared using a fixed proportion of each mineralized zone considering the preliminary mine plan at the time. Annual recovery projections are expected to differ from the average testwork results according to the final mine plan proportions of mineralized zones. The average gold recovery and mass pull results from the testwork performed are summarized in Table 7. The projected pre-concentrate transferred to the QR Mill is 21.2% of the Mine site feed mass and the overall gold recovery is 92.2%.

Table 7 - Average gold recovery and mass pull for each process step

Process step

Average stage
mass recovery (%)

Average gold
stage recovery (%)

Crushing circuit fines

30.0

36.0

Crushing circuit coarse

70.0

64.0

Flotation concentrate

20.0

98.9

Coarse mineral sorting concentrate

42.6

93.9

Pre-concentrate (QR feed)

21.2

95.3

Gravity

NA

28.1

Leaching of pre-concentrate

NA

95.5

Overall Au Recovery

 

92.2

Mineral Resource Estimate

The Cariboo Technical Report encompasses updated resources for the deposits of Cow Mountain (Cow), Island Mountain (Shaft and Mosquito), and Barkerville Mountain (BC Vein (including the BC Vein Splays), KL and Lowhee). The updates were prepared by Talisker Exploration Services Inc., and reviewed and validated by InnovExplo, using all available information. No changes are reported for the Valley (Cow Mountain) and the Bonanza Ledge (Barkerville Mountain) deposits.


The 2020 MRE relied on information from the 2019 exploration program. The effective date of the 2020 MRE is April 28, 2020.

Methodology

The 2020 MRE covers all the deposits in the Cow-Island-Barkerville Mountain Corridor. The resource area for the Cow/Island segment covers a strike length of 3.7 km and a width of approximately 700 m, down to a vertical depth of 600 m below surface. The estimate for the Barkerville segment covers a strike length of 3 km and a width of approximately 700 m, down to a vertical depth of 500 m below surface.

The models for the Cow, Valley, Shaft, Mosquito, BC Vein, KL and Lowhee deposits were prepared using LeapFrog GEO v.5.0.4. and Datamine. Leapfrog GEO v.5.0.4. was used for the modelling, which included the construction of 334 mineralized solids: 101 for Cow; 39 for Valley; 74 for Shaft; 50 for Mosquito; 6 for BC Vein and five BC Vein splays; 40 for KL; and 24 for Lowhee. Datamine was used for the estimation, which consisted of 3D block modelling and the ordinary kriging interpolation method. Statistical studies, capping and variography were completed using Datamine, GSLIB and Excel. Capping and validations were carried out in Datamine and Microsoft Excel.

The Bonanza Ledge model was prepared using GEOVIA GEMS software v.6.7. Such software was used for the modelling, which included the construction of one (1) mineralized solid, and for the estimation, which consisted of 3D block modelling and ordinary kriging interpolation. Statistical studies and variography were done using Snowden Supervisor v.8.6 software. Capping and several validations were carried out in Microsoft Excel and Snowden Supervisor v.8.6 software.

The main steps in the methodology were as follows:

Drill Hole Database

Four (4) diamond drill hole databases cover the Cariboo Project: Cow Mountain (Cow and Valley deposits), Island Mountain (Shaft and Mosquito deposits), Barkerville Mountain (BC Vein, KL, and Lowhee deposits), and Bonanza Ledge. The Cow Mountain database contains 1,259 validated drill holes. The Island Mountain database contains 1,321 validated drill holes. The Barkerville Mountain database contains 535 validated surface DDH. The Bonanza Ledge database contains 213 validated holes.

All databases include lithological, alteration and structural descriptions taken from drill core logs. Oriented core data have been available since the 2016 Program. The databases cover the strike length of each resource area at variable drill spacings, ranging from 10 to 60 m for the Cow, Island and Barkerville mountains deposits, and from 5-15 m for the Bonanza Ledge deposit.


In addition to the tables of raw data, each database includes several tables of calculated drill hole composites and wireframe solid intersections, which are required for the statistical evaluation and resource block modelling.

Geological Model

Barkerville updated the 2020 geological models for the Cow, Valley, Shaft, Mosquito, and BC Vein deposits using historical data, the data from the 2015-2018 drilling programs, and new holes from the 2019 drilling program. Barkerville also modelled two additional deposits, KL and Lowhee, using the new 2019 DDH data. The Bonanza Ledge geological model was reviewed and validated by the QPs. No new data have been acquired at Bonanza Ledge since the technical report of Brousseau et al. (2017).

A total of 335 geological solids were created and/or updated for all the deposits.

The Cow, Valley, Shaft, Mosquito, Lowhee, and KL geological models consist of 328 mineralized solids representing axial planar veins. All geological solids were modelled in Leapfrog GEO v.5.0.4. The solids were designed with a minimum thickness of 2 m and based on a cut-off grade of 1.0 g/t Au. The solids veins extend to a radius of up to 50 m from the last selected intercept or are fixed at the mid-distance of an intercept that does not meet the minimum grade criterion. The solids were snapped to drill holes. The solids were created from the axial planar structural data using 3-g/t indicator interpolants.

The geological model for the BC Vein includes one (1) sheared solid representing the mineralized layer parallel vein, along with five (5) solids representing mineralized layer parallel splays. The solids were modelled in Leapfrog GEO v.5.0.4. The BC Vein and splays were modelled from geological logs and grade intervals. The BC Vein was designed with a minimum thickness of 2 m, controlled by the hanging and footwall of the shear, and was based on a cut-off grade of 1.0 g/t Au. Geological contacts were given precedent over grade. The splays were designed with a minimum thickness of 2 m and were based on a cut-off grade of 1.0 g/t Au. All solids were snapped to drill holes.

A geological structural contact was modelled between the BC Vein and the KL deposits. The surface is a major lithological contact between the brittle sandstone, which hosts the KL Axial Planar veins, and the more ductile carbonaceous mudstones and siltstones that host the BC Vein shear and layer parallel veins. This contact was used as a hard boundary to limit the extent of the mineralized geological models.

In 2017, InnovExplo created one (1) solid for the Bonanza Ledge deposit. Construction lines were created on cross-sections spaced 5 to 25 m apart, which were snapped to drill hole intercepts. The solid was inspired by a sulphide shell defined in Brousseau et al. (2017) using a threshold of 3% pyrite and clipped to the Footwall Fault to the southwest, which was modelled from drill hole logs. The authors reviewed and validated the 2017 model and concluded that the model remains accurate for the 2020 MRE update.

Two surfaces were created for each deposit to define the topography and the overburden/bedrock contact. The topography was created using LIDAR data from 2016, except for Bonanza Ledge, which used LIDAR data from 2000 (before the test pit was excavated at the Bonanza Ledge Mine). The overburden-bedrock contact was modelled using logged overburden intervals. A waste solid was also created for Bonanza Ledge corresponding to the block model limits.

Mineral Resource Estimate

The author has classified the resource in the Cariboo Technical Report as measured, indicated, and inferred mineral resources based on geological and grade continuity, data density, search ellipse criteria, drill hole density, and interpolation parametres. The author is of the opinion that the reasonable prospect for an eventual economic extraction requirement is met by having a minimum width for the modelling of the mineralized zones and with a cut-off grade that using reasonable input, both for a potential underground extraction scenario.


The Cariboo Technical Report is considered to be reliable and based on quality data and geological knowledge. The mineral resource estimate follow CIM Definition Standards.

InnovExplo is of the opinion that the current mineral resource estimate can be categorized as measured, indicated, and inferred mineral resources based on data density, search ellipse criteria, drill hole density, and interpolation parametres. InnovExplo considers the 2020 MRE to be reliable and based on quality data and geological understanding with parametres that follow CIM Definition Standards.

Table 8 displays the results of the 2020 MRE for the Cariboo Project at the official 2.1 g/t Au cut-off grade for all eight deposits: Cow, Valley, Shaft, Mosquito, KL, Lowhee, BC Vein and Bonanza Ledge.

Table 8 - 2020 Cariboo Project Mineral Resource Estimate at 2.1 g/t Au cut-off

Category

Deposit

Tonnes

Grade

Ounces

('000)

('000)

('000)

Measured

Bonanza Ledge

240

5.10

39

Indicated

Bonanza Ledge

86

3.88

11

BC Vein

1192

4.68

179

KL

393

3.32

42

Lowhee

381

3.72

46

Mosquito

783

5.95

150

Shaft

10889

4.70

1644

Valley

1744

4.49

251

Cow

5734

4.55

838

Total Indicated Resources

21,201

4.64

3,161

Inferred

BC Vein

472

3.94

60

KL

1926

2.93

181

Lowhee

1032

3.16

105

Mosquito

1348

4.79

208

Shaft

7913

4.25

1081

Valley

5683

3.95

722

Cow

3276

3.45

364

Total Measured and Indicated Resources

21,442

4.64

3,200

Total Inferred Resources

21,650

3.91

2,721

MRE Notes:

1. The independent and qualified persons for the mineral resource estimates, as defined by NI 43-101, are Christine Beausoleil, P.Geo., and Carl Pelletier, P.Geo. (InnovExplo Inc.). The effective date of the mineral resource estimate is October 5, 2020.

2. These mineral resources are not mineral reserves as they do not have demonstrated economic viability.

3. The mineral resource estimate follows CIM Definition Standards.

4. A total of 334 vein zones were modelled for the Cow Mountain (Cow and Valley), Island Mountain (Shaft and Mosquito), Barkerville Mountain (BC Vein, KL, and Lowhee) deposits and one (1) gold zone for Bonanza Ledge. A minimum true thickness of 2.0 m was applied, using the grade of the adjacent material when assayed or a value of zero when not assayed.


5. The estimate is reported for a potential underground scenario at cut-off grade of 2.1 g/t Au. The cut-off grades were calculated using a gold price of US$1,350 per ounce.

Interpretation and Conclusions

After conducting a detailed review of all pertinent information and completing the Cariboo Technical Report mandate, InnovExplo concludes the following:

In an underground scenario, the Cariboo Project contains an estimated Measured Resource of 240,000 tonnes grading at 5.1 g/t Au for a total of 39,000 ounces of gold, and Indicated Resource of 21,201,000 tonnes grading at 4.6 g/t Au for a total of 3,161,000 ounces, and an Inferred Resource of 21,649,000 tonnes grading 3.9 g/t Au for a total of 2,721,000 ounces.

InnovExplo considers the Cariboo Technical Report to be reliable, thorough, based on quality data, reasonable hypotheses, and parametres compliant with NI 43 101 requirements and CIM Definition Standards.

Recommendations

InnovExplo recommends: continuing the exploration program (see below for details); updating the existing PEA for new mining scenarios at lower grades using data from the geotechnical, hydrogeological and metallurgical studies; continuing the permitting process for an underground bulk sample; conducting a feasibility study after obtaining said permits; continuing the community outreach program; and conducting a characterization study of the mining project environment in tandem with these other projects.

It is recommended that the exploration program consist of drilling (infill and exploration), geological mapping and grab sampling to test the extensions of known higher-grade vein corridors and to identify new targets.



Osisko Development Corp.: Exhibit 99.2 - Filed by newsfilecorp.com

OSISKO DEVELOPMENT CORP.

Restated Management's Discussion and Analysis

For the three and twelve months ended December 31, 2021

Explanatory Note Regarding the Restatement of Previously Issued Annual Management Discussion and Analysis

Osisko Development Corp. has restated its annual management's discussion and analysis for 2021 to, as applicable, withdraw, or properly qualify certain technical information included in the original filing.  The information herein continues to be as of February 21, 2022, with the exception of amendments to technical disclosure which have been made current to May 19, 2022.

The following restated management discussion and analysis ("MD&A") of the operations and financial position of Osisko Development Corp. formerly Barolo Ventures Corp. and its subsidiaries, ("Osisko Development" or the "Company") for the three months and twelve months ended December 31, 2021 ("Q4 2021" and "YTD 2021", respectively) should be read in conjunction with the Company's audited consolidated financial statements and related notes for the year ended December 31, 2021.  The audited consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). Management is responsible for the preparation of the consolidated financial statements and other financial information relating to the Company included in this report. All monetary amounts included in this report are expressed in Canadian dollars, the Company's reporting and functional currency, unless otherwise noted. Assets and liabilities of the subsidiaries that have a functional currency other than the Canadian dollar are translated into Canadian dollars at the exchange rate in effect on the balance sheet date and revenues and expenses are translated at the average exchange rate over the reporting period. This MD&A contains forward-looking statements and should be read in conjunction with the risk factors described in the "Forward-Looking Statements" section. This MD&A is dated as of February 21, 2022, the date the Board of Directors approved the Company's audited consolidated financial statements for year ended December 31, 2021 following the recommendation of the Audit and Risk Committee.

The Company was continued as a federal corporation subject to the provisions of the Canada Business Corporations Act ("CBCA") in November 2020 and is focused on developing its cornerstone mining asset, the Cariboo Gold Project located in British Columbia, Canada. Osisko Development also owns a gold development project in Sonora, Mexico, known as the San Antonio gold project, prospective land packages in the James Bay region of Québec, Canada, Guerrero, Mexico and a portfolio of marketable securities. In conjunction with a reverse take-over and the spin-out of the mining assets and certain marketable securities from Osisko Gold Royalties Ltd ("Osisko Gold Royalties") in November 2020, the Company changed its name from Barolo Ventures Corp. ("Barolo") to Osisko Development Corp. Osisko Development's shares started trading on the TSX Venture Exchange ("TSX-V") on December 2, 2020 under the symbol "ODV".


Table of Contents

Our Business 2
Highlights -2021 2
Highlights - Subsequent to the year end 3
2020 Spin-out of Mining Assets from Osisko Gold Royalties and Creation of Osisko Development 3
Uncertainty due to COVID-19 5
Exploration and Evaluation / Mining Development Activities 6
Equity Investments 14
Sustainability Activities 15
Financings 15
Selected Financial Information 17
Results of Operations 17
Selected Quarterly Information 20
Liquidity and Capital Resources 20
Cash Flows 20
Related party transactions 22
Contractual Obligations and Commitments 22
Off-balance Sheet Items 23
Risks and Uncertainties 23
Disclosure Controls and Procedures 29
Basis of Presentation of the consolidated Financial Statements 29
Critical Accounting Estimates and Judgements 29
Financial Instruments 30
Technical Information 30
Share Capital Structure 30
Cautionary Note Regarding Forward-Looking Statements 30

 


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Our Business

Osisko Development is focused on becoming a North American intermediate producer of precious metals, through curating development projects and investments with potential for value creation. The primary projects held by the Company as of December 31, 2021 is the Cariboo Gold Project (Permitting - British Columbia, Canada), which hosts projects proceeding to permitting and possible development and test mining.  In addition, the Company holds the San Antonio Gold Project (Permit Amendment - Sonora, Mexico), which is subject to continued exploration and pending processing of stockpiled material.

While working through updating technical reporting and permitting stages for its Cariboo gold project, the Company will continue producing gold at its Bonanza Ledge II Project.  The Company cautions that the decision to undertake test mining at Bonanza Ledge II has been taken without the benefit of a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result there may be increased uncertainty of achieving any particular level of recovery of material or the cost of such recovery. The Company cautions that historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will continue as anticipated or at all or that anticipated production costs will be achieved.  The failure to continue production may have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations.  Failure to achieve the anticipated production costs may have a material adverse impact on the Company's cash flow and potential profitability.  In continuing current operations at Bonanza Ledge II, as contemplated, the Company will not be basing its decision to continue such operations on a feasibility study of mineral reserves demonstrating economic and technical viability. The Company cautions that test mining at Bonanza Ledge II could be suspended at any time.

On January 25, 2022, the Company entered into a definitive agreement to acquire 100% of Tintic Consolidated Metals LLC ("Tintic"), (the "Transaction").  On completion of the Transaction, the Company will acquire 100% ownership of the producing Trixie test mine, as well as mineral claims covering more than 17,000 acres in Central Utah's historic Tintic Mining District.  Tintic's recent discovery of an high grade structure and ongoing exploration work has demonstrated significant potential for expansion and further discovery both at the Trixie mine and the broader land package.  The imminent acquisition of Tintic, further accelerates Osisko Development's path towards becoming a mid-tier gold producer and adds another opportunity for the Company to develop another project in its portfolio, at a low capital cost given the infrastructure already in place. The Company cautions that the owners of Tintic have taken the decision to commence production at Trixie in the form of small scale underground mining and batch vat leaching without the benefit of a feasibility study, or reported mineral resources or mineral reserves, demonstrating economic and technical viability, and, as a result there may be increased uncertainty of achieving any particular level of recovery of material or the cost of such recovery. The Company cautions that historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will continue as anticipated or at all or that anticipated production costs will be achieved.  The failure to continue production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations.  Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and potential profitability. The Company cautions that historically, such projects have a much higher economic or technical risks. In continuing current operations at Trixie after closing, the Company will not be basing its decision to continue such operations on a feasibility study, or reported mineral resources or mineral reserves demonstrating economic and technical viability.

The evaluation and development of the Company's various projects is dependent on management's ability to secure additional financings in the future, refer to Liquidity and Capital Resources section below.

Highlights -2021


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Highlights - Subsequent to the year end

Each unit consists of one common share and one common share purchase warrant.  Each warrant is exercisable at a price of US$6.00 per common share for a period of 5 years from the date of closing.

The Company has granted the underwriters an option, exercisable in whole or in part up to 48 hours prior to the closing of the Offering, to purchase up to an additional aggregate amount of 3,033,750 subscription receipts and/or units at the Issue Price, for additional gross proceeds of up to $13.5 million.

The gross proceeds from the Offering, net of expenses of the underwriters and 50% of the commissions payable to the underwriters in respect of the subscription units, will be placed into escrow and will be released immediately prior to the completion of the Company's proposed acquisition of Tintic.

2020 Spin-out of Mining Assets from Osisko Gold Royalties and Creation of Osisko Development

On October 5, 2020, Osisko Gold Royalties and Barolo announced a binding letter agreement (the "Letter Agreement") outlining the terms upon which Osisko Gold Royalties would transfer certain mining properties (or securities of the entities that directly or indirectly own such mining properties), including the Cariboo Gold Project, and a portfolio of marketable securities, to Barolo in exchange for common shares of Barolo, which resulted in a "Reverse Take-Over" of Barolo (the "RTO") under the policies of the TSX-V.

As part of the RTO, Osisko Gold Royalties and Barolo entered into an engagement letter with Canaccord Genuity Corp. and National Bank Financial Inc., on behalf of a syndicate of underwriters (collectively, the "Underwriters"), pursuant to which the Underwriters agreed to sell, on a "bought deal" private placement basis, 13,350,000 subscription receipts of Osisko Subco (as defined below under the section Transaction Particulars) (the "Subscription Receipts") at a subscription price of $7.50 per Subscription Receipt for gross proceeds of $100.1 million (the "Financing"). Each Subscription Receipt entitled the holder thereof to receive, for no additional consideration and without further action on the part of the holder thereof, on or about the date that the RTO is completed, one common share of Osisko Development after giving effect to a 60:1 consolidation of the common shares of Barolo (each, a "Osisko Development Share") and one-half-of-one warrant to purchase an Osisko Development Share (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Osisko Development Share for $10.00 for an 18-month period following the closing of the RTO (the maturity date was subsequently extended to December 1, 2023).


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

The Underwriters received a cash commission equal to 5.0% of the gross proceeds of the Financing; provided that a reduced cash commission equal to 2.0% was payable to the Underwriters in respect of subscribers on the President's List.

The Financing was closed on October 29, 2020, with the gross proceeds of the Financing held in escrow until the closing of the transaction on November 25, 2020.

Prior to the closing of the RTO transaction, Osisko Gold Royalties acquired or retained, directly or through its subsidiaries, the following royalty or stream interests in the assets transferred to Osisko Development:

- 5% net smelter return ("NSR") royalty on the Cariboo gold project and Bonanza Ledge II Project

- 15% gold and silver stream on the San Antonio gold project ("Gold and Silver Stream")

- 3.0% NSR royalty on the James Bay and Guerrero exploration properties

The Cariboo Gold and Bonanza Ledge properties 5% NSR royalty is perpetual and is secured by a guarantee on all of Barkerville Gold Mines Limited ("Barkerville") movable and immoveable assets, including Barkerville's interest in the property and mineral rights, in an amount of not less than $150 million. The security shall be first ranking, subject to permitted encumbrances.

Osisko Gold Royalties was also granted the following rights by Osisko Development and its subsidiaries: (i) a right of first refusal on all future royalties and streams to be offered by them; (ii) a right to participate in buybacks of existing royalties held by them; and (iii) other rights customary with a transaction of this nature.

Osisko Gold Royalties facilitated the acquisition of the San Antonio gold project in the state of Sonora, Mexico for US$42.0 million to provide Osisko Development with near-term production and significant upside potential. In return, Osisko Gold Royalties, through its wholly owned subsidiary Osisko Bermuda Limited ("Osisko Bermuda"), acquired a 15% precious metal stream on the San Antonio gold project. Under the terms of the stream agreement, Osisko Bermuda will purchase 15% of the payable gold and silver from the San Antonio gold project at a price equal to 15% of the gold and silver daily market price. The initial term of the stream agreement is for 40 years and can be renewed for successive 10 year periods. The stream is also secured with a first priority lien of all the shares held in Sapuchi Minera by the Company.

The exploration package and equity portfolio contributed to Osisko Development provides further optionality and exposure to highly prospective projects in mining friendly jurisdictions.

Transaction Particulars

On October 23, 2020, a definitive amalgamation agreement (the "Amalgamation Agreement") in respect of the RTO was executed among Osisko Gold Royalties, Barolo, Osisko Development Holdings Inc. ("Osisko Subco"), a wholly-owned subsidiary of Osisko Gold Royalties incorporated under the Business Corporations Act (British Columbia) (the "BCBCA"), and a wholly-owned subsidiary of Barolo ("Barolo Subco").

The Amalgamation Agreement provided for, among other things, a three-cornered amalgamation (the "Amalgamation") pursuant to which (i) Osisko Subco amalgamated with Barolo Subco under Section 269 of the BCBCA to form one corporation ("Amalco"), (ii) the security holders of Osisko Subco received securities of Osisko Development in exchange for their securities of Osisko Subco, (iii) Amalco merged into Barolo (by way of a voluntary dissolution) to form Osisko Development, and (iv) the transactions resulted in a RTO of Barolo in accordance with the policies of the TSX-V, all in the manner contemplated by, and pursuant to, the terms and conditions of the Amalgamation Agreement.

The Amalgamation Agreement was negotiated at arm's length between representatives of Osisko Gold Royalties and Barolo. As part of the RTO, Barolo: (i) changed its name to "Osisko Development Corp."; (ii) changed its stock exchange ticker symbol to "ODV"; (iii) consolidated its common shares on a 60:1 basis; (iv) adopted new by-laws and other corporate policies; adopted new security-based compensation arrangements; (vi) reconstituted the board of directors and management of Osisko Development; and continued its corporate existence under the Canada Business Corporations Act.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Pursuant to the RTO, Osisko Gold Royalties received 100,000,100 Osisko Development Shares at a deemed price of $7.50 per share, in exchange for the transfer of the contributed assets (valued at approximately $750 million) to Osisko Development.

For further information on the particulars of the RTO, please refer to the joint news release of Osisko Gold Royalties and Barolo dated October 5, 2020. The full particulars of the RTO, the contributed assets and Osisko Development are described in a Filing Statement prepared in accordance with the policies of the TSX-V. A copy of the Filing Statement is available on SEDAR (www.sedar.com) under Osisko Development's profile.

Deemed acquisition of Barolo

The net assets of Barolo acquired were recorded at their estimated relative fair market value at the date of closing of the RTO and are summarized below:

(In thousands of dollars)      
Deemed consideration paid for the deemed acquisition of Barolo   $  
       
233,395 common shares of Osisko Development deemed issued   1,751  
Transaction fees   500  
    2,251  
       
Net liabilities deemed assumed      
       
Net liabilities of Barolo   (164 )
Net cost of listing   2,415  
    2,251  

Management and Board Composition

The Board of Directors of Osisko Development includes as elected at the Company's annual general meeting on May 13, 2021: Sean Roosen (Chair); Charles E. Page (Lead Director); John Burzynski; Joanne Ferstman; Michele McCarthy; Duncan Middlemiss; and Éric Tremblay.  Marina Katusa was subsequently appointed on May 26, 2021. Osisko Gold Royalties has the right to appoint nominees to the board of Osisko Development; such number of nominees will decrease if, as and when Osisko Gold Royalties decreases its ownership in Osisko Development over time.

Management of Osisko Development includes Sean Roosen (Chair and Chief Executive Officer); Chris Lodder (President); Luc Lessard (Chief Operating Officer); Alexander Dann (Chief Financial Officer & Vice President Finance); Andre Le Bel (Corporate Secretary); François Vézina (Senior Vice President, Project Development, Technical Services and Environment); Martin Ménard (VP, Engineering and Construction), Chris Pharness (Vice President, Sustainable Development); Maggie Layman (Vice President, Exploration); and a further technical team that was transferred from Osisko Gold Royalties to Osisko Development.

Uncertainty due to COVID-19

The duration and full financial effect of the COVID-19 pandemic is unpredictable at this time, as are the measures taken by governments, companies and others to attempt to address the spread and impact of COVID-19. Any estimate of the length and severity of these developments is therefore subject to significant uncertainty, and accordingly estimates of the extent to which the COVID-19 may materially and adversely affect the Company's operations, financial results and condition in future periods are also subject to significant uncertainty. In the current environment, the assumptions and judgements made by the Company are subject to greater variability than normal, which could in the future significantly affect judgments, estimates and assumptions made by management as they relate to potential impact of the COVID-19 and could lead to a material adjustment to the carrying value of the assets or liabilities affected. The impact of current uncertainty on judgments, estimates and assumptions extends, but is not limited to, the Company's valuation of its long-term assets, including the assessment for impairment and impairment reversal. Actual results may differ materially from these estimates.

As a result of the COVID-19 pandemic, the Company took action to protect its employees, contractors and the communities in which it operates.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Exploration and Evaluation / Mining Development Activities

Cariboo Gold Project

On November 21, 2019, Osisko Gold Royalties acquired the Cariboo Gold Project located in the historical Cariboo Mining District of central British Columbia, Canada, through the acquisition of Barkerville. The project was part of the Osisko Gold Royalties contributed assets that created the Company on November 25, 2020.

Exploration activities and mineral resource estimate

A total of 152,500 meters were drilled in 2021 on the Cariboo Gold Project as part of the exploration and category conversion drill program to support the ongoing technical work. The drilling commenced in January 2021 and was completed in October with up to 12 diamond drill rigs utilized during the campaign. By deposit, a total of 61,000 meters were drilled at Shaft, 50,000 meters at Valley, and 30,000 meters at Lowhee and 10,000 meters at Mosquito. An additional 1,500 meters were drilled at QR.  The drilling confirmed down dip extensions of mineralized vein corridors and high-grade intercepts within the current mineral resource estimate. The mineral resource estimate incorporates eight deposit areas; the Shaft and Mosquito Creek deposits on Island Mountain, Cow and Valley deposits on Cow Mountain, and Lowhee, KL, BC Vein and Bonanza Ledge deposits on Barkerville Mountain at a cut-off grade of 2.1 g/t Au ("grams per metric tonne"). The cut off for Bonanza Ledge Deposit is 3.5 g/t Au. The objective of the 2021 exploration and delineation program is to convert inferred resources to indicated resources to support reserves for the ongoing advanced technical studies and to increase overall ounces in the inferred and indicated resource categories by exploring the depth and strike potential of the known deposits.

In Q4 2021, the Company announced drilling results from the exploration and category conversion diamond drill program campaign which included assays on Mosquito and Shaft Zones (Island Mountain), Valley Zone (Cow Mountain) and Lowhee Zone (Barkerville Mountain). The drilling results are highlighted below:

HOLE ID

 

FROM (M)

TO (M)

LENGTH (M)

AU (G/T)

TARGET

IM-21-151

 

162.20

166.65

4.45

16.27

Shaft

IM-21-146

 

263.30

270.20

6.90

9.37

Shaft

IM-21-145

 

300.70

310.85

10.15

12.60

Shaft

IM-21-145

including

307.35

307.85

0.50

102.00

Shaft

IM-21-144

 

275.40

277.05

1.65

31.07

Shaft

IM-21-144

 

344.75

348.30

3.55

19.35

Shaft

IM-21-141

 

231.25

237.00

5.75

12.18

Shaft

IM-21-140

 

411.30

422.00

10.70

5.61

Shaft

IM-21-140

including

414.10

415.50

1.40

40.20

Shaft

IM-21-128

 

49.00

54.00

5.00

19.43

Shaft

IM-21-126

 

425.90

434.70

8.80

8.90

Shaft

IM-21-126

 

580.90

585.00

4.10

15.99

Shaft

IM-21-125

 

384.25

390.20

5.95

10.54

Shaft

IM-21-109

 

143.50

149.30

5.80

21.33

Shaft

IM-21-109

including

148.35

149.30

0.95

117.00

Shaft

IM-21-097

 

178.00

184.30

6.30

8.27

Shaft

IM-21-097

 

395.30

397.55

2.25

35.68

Valley

IM-21-097

Including

397.05

397.55

0.50

155.50

Valley

IM-21-093

 

402.20

408.00

5.80

9.85

Shaft

IM-21-090

 

200.60

203.00

2.40

48.10

Shaft

IM-21-090

Including

201.50

202.40

0.90

117.00

Shaft

IM-21-090

 

464.75

477.00

12.25

5.50

Valley

IM-21-089

 

31.20

37.75

6.55

20.40

Shaft

IM-21-089

Including

31.20

31.80

0.60

92.30

Shaft

IM-21-088

 

209.60

213.00

3.40

15.48

Mosquito



Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

CM-21-058

 

124.60

130.35

5.75

11.12

Valley

CM-21-056

 

159.70

163.20

3.50

27.24

Valley

CM-21-056

Including

160.25

161.45

1.20

74.10

Valley

CM-21-055

 

218.85

219.40

0.55

93.60

Valley

CM-21-051

 

255.25

259.35

4.10

28.45

Valley

CM-21-045

 

160.30

164.15

3.85

19.95

Valley

CM-21-045

 

241.00

247.20

6.20

12.12

Valley

CM-21-045

Including

241.55

242.25

0.70

93.30

Valley

CM-21-044

 

293.00

303.45

10.45

15.87

Valley

CM-21-044

Including

299.80

300.55

0.75

66.20

Valley

CM-21-044

Including

301.40

302.05

0.65

81.90

Valley

CM-21-044

and

302.65

303.45

0.80

62.30

Valley

CM-21-043

 

329.75

337.05

7.30

11.99

Valley

CM-21-043

 

481.20

493.90

12.70

7.09

Valley

CM-21-042

 

249.40

257.50

8.10

7.98

Valley

CM-21-041

 

244.80

245.30

0.50

112.5

Valley

CM-21-041

 

292.05

303.40

11.35

7.38

Valley

CM-21-041

 

308.80

309.75

0.95

115.5

Valley

CM-21-039

 

119.10

137.00

17.90

6.51

Valley

CM-21-038

 

293.95

296.55

2.60

19.37

Valley

CM-21-038

 

329.80

341.20

11.40

13.32

Valley

CM-21-038

including

337.70

339.00

1.30

47.4

Valley

CM-21-035

 

99.20

102.10

2.90

17.6

Valley

CM-21-034

 

153.20

154.30

1.10

84.1

Valley

CM-21-033

 

109.00

113.50

4.50

16.63

Valley

CM-21-033

including

110.15

110.65

0.50

100

Valley

CM-21-031

 

33.95

35.00

1.05

63.9

Valley

BM-21-049

 

198.80

214.00

15.20

19.03

Lowhee

BM-21-049

Including

204.85

205.35

0.50

482.00

Lowhee

BM-21-047

 

121.00

128.75

7.75

158.40

Lowhee

BM-21-047

Including

124.40

124.90

0.50

2420.00

Lowhee

BM-21-046

 

193.85

201.00

7.15

16.46

Lowhee

BM-21-046

Including

197.45

198.45

1.00

103.50

Lowhee

BM-21-039

 

253.10

253.60

0.50

157.50

Lowhee

BM-21-037

 

151.95

161.00

9.05

6.77

Lowhee

Further details on the exploration drilling results, can be viewed in the Company's press releases filed on SEDAR (www.sedar.com) dated April 12, 2021, May 19, 2021, June 15, 2021, June 24, 2021, June 29, 2021, July 6, 2021, July 21, 2021, August 11, 2021, August 25, 2021, October 5, 2021, October 19, 2021, October 26, 2021, November 11, 2021, November 24, 2021, December 7, 2021.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

In October 2020, Osisko Gold Royalties announced an updated mineral resource estimate in an underground scenario for the Cariboo Gold Project consisting of an estimated Measured Resource of 240,000 tonnes grading at 5.1 g/t Au for a total of 39,000 ounces of gold, and Indicated Resource of 21,201,000 tonnes grading at 4.6 g/t Au for a total of 3,161,000 ounces, and an Inferred Resource of 21,649,000 tonnes grading 3.9 g/t Au for a total of 2,721,000 ounces.. Resource grades have some built-in dilution integrated through the process of modelling of "vein corridors" as opposed to individual veins. Metallurgical testing has shown that the mineralization can be effectively upgraded by flotation and x-ray transmission ore-sorting, owing to the strong association of gold with pyrite. The concentrates can then be processed at the wholly-owned QR mill.

The mineral resource estimate is built upon nearly 500,000 meters of core from the 2015 to 2019 drill campaigns, and historically verified drill data using a total of 2,218 drill holes. A strong understanding of the controls of mineralization enabled Osisko Development's technical team to construct a mineral resource estimate constrained by lithology, alteration, structure and mineralization.

Cariboo Gold Project Mineral Resource Estimate at 2.1 g/t Au cut-off

Category

 Deposit

Tonnes

Grade

Ounces

('000)

(Au g/t)

('000)

Measured

Bonanza Ledge

240

5.10

39

 

Indicated

Bonanza Ledge

86

3.88

11

BC Vein

1,192

4.68

179

KL

393

3.32

42

Lowhee

381

3.72

46

Mosquito

783

5.95

150

Shaft

10,889

4.70

1,644

Valley

1,744

4.49

251

Cow

5,734

4.55

838

Total Indicated Resources

21,202

4.64

3,161

 

Inferred

BC Vein

472

3.94

60

KL

1,926

2.93

181

Lowhee

1,032

3.16

105

Mosquito

1,348

4.79

208

Shaft

7,913

4.25

1,081

Valley

5,683

3.95

722

Cow

3,276

3.45

364

Total Measured and Indicated Resources

21,442

4.64

3,200

Total Inferred Resources

21,650

3.91

2,721

Mineral Resource Estimate notes:

1. The independent and qualified persons for the mineral resource estimates, as defined by NI 43-101, are Christine Beausoleil, P.Geo., and Carl Pelletier, P.Geo. (InnovExplo Inc.). The effective date of the mineral resource estimate is October 5, 2020.

2. These mineral resources are not mineral reserves as they do not have demonstrated economic viability.

3. The mineral resource estimate follows CIM Definition Standards.

4. A total of 334 vein zones were modelled for the Cow Mountain (Cow and Valley), Island Mountain (Shaft and Mosquito), Barkerville Mountain (BC Vein, KL, and Lowhee) deposits and one (1) gold zone for Bonanza Ledge. A minimum true thickness of 2.0 m was applied, using the grade of the adjacent material when assayed or a value of zero when not assayed.

5. The estimate is reported for a potential underground scenario at cut-off grade of 2.1 g/t Au. The cut-off grades were calculated using a gold price of US$1,350 per ounce.

The vein corridors comprising the Cariboo gold resource estimate are modelled to an average depth of 350 meters and exploration drilling has intersected mineralization at depths below 700 meters from surface. The Company will continue with the systematic exploration to further define and expand the known zones and develop greenfield targets on the remaining land package. The Company intends to drill from the underground infrastructure once permitting and construction of an exploration drift is complete. The robust 3D litho-structural model that defines the controls of mineralization allows the exploration team to define additional mineral resources much more efficiently, with a high hit rate (80% of the drill holes intersect potentially economic mineralization), lowering the cost per discoverable ounce. This model can be applied to the remaining 65 kilometers of strike.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

For more information, refer to Barkerville Gold Mines NI 43-101 Technical Report entitled "NI 43-101 Technical Report and Mineral Resource Estimate for the Cariboo Gold Project, British Columbia, Canada" (the "Technical Report") filed on SEDAR (www.sedar.com) on November 25, 2020 under the Company's profile.

Permitting and Environmental Assessment ("EA") Process

On October 27, 2021 the Province of British Columbia, Lhtako Dené First Nation and the Company announced the approval of amendments to Mines Act Permits M-238 and M-198 allowing for the expansion of the existing Bonanza Ledge II underground mine. These amendments support the ongoing employment of 127 workers at the mine. The expansion of the Bonanza Ledge II Project allows for continuity of certain mining activities while the Cariboo Gold Project environmental assessment proceeds.  The permitting process is still on schedule with granting of the permits anticipated by September 2022.

Osisko Development started an Environmental Assessment Process in spring of 2019 for the Cariboo Gold Project located in British Colombia.  The project as completed several milestones to obtaining the EA Certificate planned in Q4 2022.  The following is a summary of the steps completed and to be completed to obtain the EA Certificate that will grant the Company the right to apply for the permit of the Cariboo Gold Project

The following is summary of steps towards EA certification in September 2022

 Early Engagement - Completed, initial project description and summary of engagement

 EA Readiness Decision - Completed, detailed project description, received notice of consent

 Processing planning - Completed

 Application Development & Review - Application submitted and under review

 Effects of Assessment

 Recommendation

 Decision

 Post Certificate

*CGP refers to the Cariboo Gold Project.
*EAO refers to Environmental Assessment Office


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Mineralized Material Sorting Technology and Advanced Mining Equipment

Osisko Development commissioned TOMRA in the last quarter of 2020 to complete material sorting tests using a XRT sensor (x-ray transmission) on a sample of approximately 2,200kg of mineralized material coming from the Cariboo Gold project. After screening to remove the fine particles (size less than 10mm), approximately 1,800kg of sample, corresponding to medium grade mineralized material typically encountered around high grade veins and replacements, was tested by the Tomra Sorter.  In April 2021, the Company announced positive results of the recent test work aimed at confirming the use of mineralized material sorting to improve the processed grade of mineral resources at the Cariboo Gold Project.  Details on the results of the test work can be viewed in the Company's press release dated April 22, 2021. In Q4 2021, the Company completed the mechanical installation of the Steinert Ore Sorter. Following the electrical installation to be done in February 2022, commissioning is expected to be completed by the beginning of Q2 2022. 

In Q4 2020, the Company leased a MT720 Roadheader for 12 months, which was used for testing purposes in the first half of 2021 at the Bonanza Ledge II Project. The Roadheader was re-purposed in the second half of 2021 to build the Cow Mountain Portal. Currently it is held in containment inside the portal along with winter protection awaiting the start of the development of the Lowhee underground exploration ramp. The Cow exploration ramp will gain access to a 10,000 tonne bulk sample that was permitted in 2021 under a mineral exploration (MX) permit MX-4-561. Underground development with the Roadheader is required to reach the bulk sample location and mineralized material is expected to be processed in Q4 2022. Underground exploration will also take place as part of this work. Benefits expected to be realized from the Roadheader include, safer development for operators, reduced overbreak, faster development rate, improved integrity of the Cariboo Gold ground and better drift profile and improved ground conditions.  The leased MT720 Roadheader was purchased in Q1 2022. Two additional Roadheaders (MH621) have also been ordered from Sandvik Canada in Q4 2021, which are expected to arrive on site in Q4 2022 and the first half of 2023.

Bonanza Ledge II Project

In March 2021, processing of mineralized material commenced at the Bonanza Ledge II Project, generating $7.7 million in revenues for the year ended December 31, 2021.  The Company recognized an impairment on its Bonanza Ledge II Project of $58.4 million during the year ended December 31, 2021, triggered by continuing operational challenges leading to lower production and revenues than originally planned.  The recoverable amount was assessed at $nil as of September 30, 2021 under the value-in-use using cash-flows approach. Significant judgement was involved in the assumptions used in the model, which includes but is not limited to gold price, average grade per tonne, and mining and milling recovery rates.

The Bonanza Ledge II Project is a small scale and short life project, which allows the Company to facilitate (i) opportunities for managing historical reclamation obligations inherited by the Company, (ii) hands on training and commissioning of the Company's mining and processing complex for the Cariboo Gold Project and (iii) maintain the economic and social benefits for the First Nations partners and communities.  As such, in the fourth quarter the Company continued with its operations at the Bonanza Ledge II Project.  Operating costs of $12.0 million, not attributable to the sales of refined precious metals sold during the year, have been recognized in other operating costs in the consolidated statement of loss.

Please see the caution below under "Risk Factors: Operations Not Supported by a Feasibility Study".

2022 Objectives

Regional Greenfield Exploration is planned for Q2 and Q3 2022 to continue the geochemical sampling and geological mapping of the Quesnel Terrane properties with focus on the Cayenne Property and the area between Burns and Yanks, known as the Yanks-Lightning Trend. 

The Company started mining operations at its Bonanza Ledge II Project in the first quarter of 2021 as it was granted in Q1 2021 a notice of departure from the Ministry of Energy, Mines and Low Carbon Innovation of British Columbia.  The Company announced on October 27, 2021 receipt of the final permits for the Bonanza Ledge II mine and QR mill. The Cow Mountain Underground Bulk Sample Permit was received in July 2021. The underground portal was completed in Q4 2021 and the Company anticipates commencing the bulk sample activities in the new year. The Company will be collecting the bulk sample from the Lowhee Deposit.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

San Antonio Gold Project

In 2020, Osisko Gold Royalties acquired Sapuchi Minera S. R.L de C.V. ("Sapuchi Minera") which holds the San Antonio gold project in Sonora, Mexico for US$42 million. An amount of US$30.0 million was paid in cash by Osisko Gold Royalties and the remaining US$12.0 million was paid through the issuance of common shares of Osisko Gold Royalties. A total of 1,011,374 Osisko Gold Royalties common shares were issued and valued at $15.8 million, based on the closing price of the common shares at the date of the transaction. The consideration paid by Osisko Gold Royalties was considered as an equity contribution in the Company. Transaction costs amounted to $5.9 million. The San Antonio gold project was subsequently transferred to Osisko Development as part of the RTO transaction.

In accordance with IFRS 3 Business Combinations, the transaction has been recorded as an acquisition of assets as the acquired assets and assumed liabilities did not meet the definition of a business.

The total purchase price of $68.1 million was allocated to the assets acquired and the liabilities assumed based on the relative fair value at the closing date of the transaction. All financial assets acquired and financial liabilities assumed were recorded at fair value.

The purchase price was calculated as follows:

(In thousands of dollars)
Consideration paid
  $  
         
  Issuance of 1,011,374 Osisko Gold Royalties common shares   15,846  
  Cash consideration paid by Osisko Gold Royalties   40,015  
  Value-added tax paid on acquisition of assets   6,328  
  Osisko Gold Royalties' transaction costs   5,865  
      68,054  
         
Net assets acquired   $  
         
  Inventories   7,899  
  Inventories - non-current (1)   16,129  
  Other non-current assets   6,328  
  Mining interests and plant and equipment   58,368  
  Accounts payable and accrued liabilities   (11,369 )
  Provision and other liabilities   (9,301 )
      68,054  

(1) The inventory balance associated with the mineralized material that is not expected to be processed within 12 months of the acquisition date was classified as non-current and is recorded in the other assets line item on the consolidated balance sheets.

The San Antonio gold project is a past-producing oxide copper mine. In 2020, following the acquisition, the Company concentrated its efforts in obtaining the required permits and amendments to the permits to perform its activities. The Company has filed preventive reports for the processing of the gold stockpile on site and for a drill program for the Sapuchi, Golfo de Oro and California zones.

In 2021, Sapuchi Minera focused on various activities that pertain to permitting, local community relations, exploration drilling and preparations towards the processing of the mineralized material stockpile on site.

Permitting

The Company continued the various permitting activities started in 2020. These activities consist of obtaining the permits for the MIA and the change of Use of Land while continuing the work required to complete the environmental baseline study.  Applications were submitted for four new mining claims, Sapuchi E-82/40881, Sapuchi 2 E-82/40882, Sapuchi 3 E-82/40883, Sapuchi 4 E-82/40888. 


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Exploration Program

A 2 phase 45,000-meter drilling campaign was initiated during Q2 2021. The objective of the drill program was to conduct exploration and resource drilling at a spacing of 25 meters and historic drilling validation for the three main target areas; Sapuchi, California and Golfo de Oro.  A total of 27,900 meters were drilled in 177 holes in 2021, representing 62% of the budgeted drill plan. The Company expects exploration potential to expand both oxide and sulphide resources as recent metallurgical testing has shown that the sulphide resources are amenable to heap leaching.

Stockpile

By the end of 2021, construction of the sodium cyanide heap leach pad ("heap leach pad") was complete.  As of December 31, 2021, 47,180 tonnes were crushed and placed on the heap leach pads. 

Installation of the carbon-in-column processing plant and installation of related equipment was completed in the Q4-2021 and commissioning was completed in January 2022.  The Company is on track to have loaded carbon available to be shipped and realize its first gold sales in the first half of 2022.

The stockpile inventory was revalued at its net recoverable amount, resulting in an impairment of $5.8 million in Q4 2021 and a total impairment of $21.2 million for the twelve months ended December 31, 2021.

The Company cautions that the decision to process the stockpile at Sapuchi Minera has been taken without the benefit of a feasibility study, or reported mineral resources or mineral reserves, demonstrating economic and technical viability, and, as a result there may be increased uncertainty of achieving any particular level of recovery of material or the cost of such recovery. The Company cautions that historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will continue as anticipated or at all or that anticipated production costs will be achieved.  The failure to continue production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations.  Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and potential profitability. The Company cautions that historically, such projects have a much higher economic or technical risks. In continuing current operations at Sapuchi Minera, the Company will not be basing its decision to continue such operations on a feasibility study, or reported mineral resources or mineral reserves demonstrating economic and technical viability.

Please see the caution below under "Risk Factors: Operations Not Supported by a Feasibility Study".

2022 Objectives

Sapuchi Minera will continue to focus its efforts on stockpile processing and continuing to advance its current permit applications. 

Prospective Tintic Project

Pursuant to the terms of the Transaction, Osisko Development will acquire 100% of Tintic through the purchase of: (i) IG Tintic's direct 75% ownership in Tintic; and (ii) all issued and outstanding stock of Chief Consolidated Mining Company ("Chief"), ("Chief Stock") from Ruby Hollow and other stockholders of Chief. Immediately following the closing of the Transaction, Chief will complete a merger with a newly-formed subsidiary of the Company (the "Merger"), such that, following completion of the Merger, Chief will be wholly owned by the Company. At closing, Osisko Development will make payments to the Vendors in the aggregate amount of approximately US$177 million (the "Closing Payments"), comprised of: (i) cash payments of approximately US$54 million, and (ii) the issuance of 35,099,611 common shares of the Company (the "Shares") for an aggregate value of approximately US$123 million.

A number of Tintic shareholders representing approximately 32.5% of the total ownership have entered into 12-month lock-up agreements, which provide that: (i) 33% of the Shares will be freely tradeable on the four-month anniversary of the Closing date of the Transaction (the "Closing Date"); (ii) an additional 33% of the Shares will be freely tradeable on the eight-month anniversary of the Closing Date; and (iii) the remaining 34% of the Shares will be freely tradeable on the first year anniversary of the Closing Date.

In addition to the Closing Payments, the Company will pay the vendors: (i) deferred payments of US$12.5 million payable in equal instalments annually over five years in cash or Shares at Osisko Development's election; (ii) two 1% NSR royalty grants, each with a 50% buyback right in favour of Osisko Development for US$7.5 million which is exercisable within 5 years; (iii) a right to receive the financial equivalent of 10% of the net smelter returns from stockpiled mineralized material extracted from Trixie since January 1, 2018 and sitting on surface; (iv) the set-off of a US$5 million loan owed to Osisko Development; and (v) US$10 million contingent upon commencement of production at the Burgin Mine.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

The Company, through a wholly-owned subsidiary, has entered into a non-binding metals stream term sheet ("Stream") with a wholly-owned subsidiary of Osisko Gold Royalties Limited.  The proceeds from the Stream will be used to fund a portion of the cash consideration payable on closing of the Transaction. The key terms of the Stream include:

 An upfront cash payment totaling at least US$20 million and up to US$40 million.

 In the event that the full amount of US$40 million is drawn, the Company will deliver a maximum of 5% of all metals produced from the Tintic property up to a maximum of 53,400 ounces of refined gold (the "Threshold Stream"). Thereafter, the Company will deliver 4.0% of all metals produced (the "Tail Stream").

 If the Company elects to draw less than US$40 million, the Threshold Stream and Tail Stream shall be reduced on a pro rata basis.

 The Company will receive ongoing payments for refined metal delivered in conjunction with the Stream equal to 25% of the spot prices.

 The Stream is anticipated to close concurrently with the close of the Transaction.

The Transaction is also subject to normal course regulatory approvals and the satisfaction of customary closing conditions, including the execution of ancillary agreements and acceptance of the TSX-V. The IG Tintic and Chief transactions are inter-conditional, meaning that closing of each transaction will happen simultaneously and one cannot close without the other. Subject to the satisfaction of these conditions, Osisko Development expects the Transaction to close in Q2 2022.

Please see the caution below under "Risk Factors: Operations Not Supported by a Feasibility Study".

2022 Objectives

It is expected that the production from the Trixie Mine will complement the near and medium-term development plans for the Cariboo and San Antonio projects. In the near term, the Company is proposing technical work at Trixie Mine with the objective that it will justify further development, targeting an increase in production from approximately 20 koz Au per annum to approximately 100 koz Au per annum by 2024 through a low-capital expenditure expansion.

Please see the caution below under "Risk Factors: Operations Not Supported by a Feasibility Study".

Other Exploration Properties

James Bay area properties

In 2016, Osisko Gold Royalties entered into earn-in agreements with Osisko Mining Inc. ("Osisko Mining") in regards to the James Bay properties. On July 5, 2019, Osisko Mining completed a spinout transaction, which resulted in, among other things, Osisko Mining transferring certain assets to O3 Mining Inc., including properties under earn-in agreements with Osisko Gold Royalties.

In October 2020, Osisko Gold Royalties announced the spin-out of its mining assets, including the properties in the James Bay area, to Osisko Development. As part of the transaction, the earn-in agreements between Osisko Gold Royalties and O3 Mining Inc. were terminated and therefore, Osisko Development has now control over the properties for their exploration and development activities. Osisko Development intends to review each property to maximize their potential value. Please refer to the section Spin-out of Mining Assets from Osisko Gold Royalties and Creation of Osisko Development of this MD&A for more details.

As at December 31, 2021, the net book value of the properties were impaired to $nil ($30.9 million as at December 31 2020), as the Company will be focusing on its development projects in the near term.

Coulon zinc project

The Coulon zinc project is located 15 kilometres north of the Fontanges Airport in northern Québec. It is close to a hydroelectric dam and the project can be accessed year-round via the Trans-Taïga road. In 2009, a NI 43-101 Technical Report and Resource Estimate was filed by Virginia Mines Inc.  in which Indicated resources were estimated at 3,675,000 tonnes grading on average 3.61% Zn, 1.27% Cu, 0.40% Pb, 37.2 g/t Ag et 0.25 g/t Au and inferred resources were estimated at 10,058,000 tonnes grading on average 3.92% Zn, 1.33% Cu, 0.19% Pb, 34.5 g/t Ag et 0.18 g/t Au.  This is a historic resource. Osisko Development believes that the historic resource continues to be relevant and reliable as an indication of the potential of the Coulon zinc project. The key assumptions, parameters and methods used to prepare the historic estimate are set out in the 2009 technical report which includes the historic resource. The Company is not aware of any more recent estimates or data in relation to the historic estimate. Further exploration work including drilling would be required to upgrade the historic resource to current. Osisko Development cautions sufficient work has not been done by a qualified person to classify the historic resources as a current resource and Osisko Development is not treating the historic resources as a current resource.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

The Coulon zinc project has been impaired to a net book value of $nil as at December 31, 2021 ($9.8 million as at December 31 2020), as the Company will be focusing on its development stage projects in the near term.

Equity Investments

The Company's assets include a portfolio of shares, mainly of Canadian publicly traded exploration and development mining companies. The Company may, from time to time and without further notice except as required by law or regulations, increase or decrease its investments at its discretion.

During the twelve months ended December 31, 2021, the Company acquired equity investments through private placements and warrants exercises resulting in a total cash outlay of $11.6 million (includes $6.4 of convertible debt) and divested of investments generating gross proceeds of $43.1 million and realized losses of $7.7 million.

Fair value of marketable securities

The following table presents the carrying value and fair value of the remaining investments in marketable securities (excluding warrants and convertible debt) as at December 31, 2021 and December 31, 2020 (in thousands of dollars):

 

 

December 31, 2021

 

December 31, 2020

 

 

 

 

 

Investments

 

Carrying
value(i)

 

Fair value(ii)

 

Carrying
value(i)

 

Fair
value(ii)

 

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

Associates

 

12,964

 

44,820

 

9,636

 

20,951

Other

 

42,564

 

42,564

 

98,616

 

98,616

 

 

55,528

 

87,384

 

108,252

 

119,567

(i) The carrying value corresponds to the amount recorded on the consolidated balance sheet, which is the equity method for investments in associates and the fair value for the other investments, as per IFRS 9, Financial Instruments.

(ii) The fair value corresponds to the quoted price of the investments on a recognized stock exchange for the respective period.

Main Investments

The following table presents the main investments of the Company in marketable securities as at December 31, 2021:

 

 

Company

 

 

Number of

Shares Held

 

 

 

Ownership

 

 

 

 

 

 

%

 

 

 

 

 

 

 

 

 

Falco Resources Limited (associate)

 

46,885,240

 

17.3

 

 

Falco Resources Limited ("Falco")

Falco's main asset is the Horne 5 gold project, for which the summarized results of an updated feasibility study were released on March 24, 2021. For more information, refer to Falco's press release dated March 24, 2021 entitled: "Updated Feasibility Study Confirms Significant Value of the Horne 5 Project" and filed on www.sedar.com.

In June 2021, Falco entered into an agreement in principle with Glencore Canada Corporation establishing the framework of the terms and conditions (the "Agreement in Principle") pursuant to which the parties will enter into the Principal Operating License and Indemnity Agreement (the "OLIA") in order to enable Falco to develop and operate its Horne 5 project. The Agreement in Principle outlines the terms to be included in the OLIA which will establish the framework to govern Falco's development and operation of its Horne 5 project.  For more information, refer to Falco's press release dated June 28, 2021 entitled "Falco Enters into an Agreement in Principle with Glencore Regarding Horne 5 Development and Operating License", filed on www.sedar.com.

Falco also entered into an option agreement granting Falco the sole and exclusive right to acquire an undivided one hundred percent ownership interest in the Norbec and Millenbach sites located in the vicinity of the City of Rouyn-Noranda. The properties will serve as the tailings management facilities and are located at a former tailings facility (the old Norbec Mine), which has already been impacted by historical mining activities and is situated approximately 11 kilometres from the Horne 5 project's mining complex site. The use of this previously impacted site is consistent with Falco's environmental, social and governance strategies. For more information, refer to Falco's press release dated June 30, 2021 entitled "Falco Enters into an Option Agreement with First Quantum for its Future Tailings Management Facility Site", filed on www.sedar.com.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

As at December 31, 2021, the Company holds 46,885,240 common shares representing a 17.3% interest in Falco (18.2% as at December 31, 2020). The Company concluded that it exercises significant influence over Falco and accounts for its investment using the equity method.

Sustainability Activities

The Company views sustainability as a key part of its strategy to create value for its shareholders and other stakeholders.

The Company focuses on the following key areas:

> Promoting the mining industry and its benefits to society;

> Maintaining strong relationships with the Federal, Provincial, Municipal and First Nations governments where the Company has activities and projects;

> Supporting the economic development of regions where it operates;

> Promoting diversity throughout the organization and the mining industry; and

> Encouraging investee companies and our contractors to adhere to the same areas of focus in sustainability.

The following are a few highlights from each of our operating sites:

Barkerville

 Installation of a water treatment plant to treat contact water and effluent completed;

 Historic 300,000 tonne PAG pile remediation in progress;

 Open and transparent dialogue with the Ministry Of Energy and Mines and The Ministry of the Environment to ensure positive relations;

 Reclamation work started on the Mosquito Creek old mine site;

 Positive relationship with Lhtako Dené Nation since 2015. Agreements include engagement protocol (signed in 2016), relationship agreements (2016) and life of project agreement (2020);

 Positive relationship with Xatsull First Nation and with Williams Lake Indian Band since 2016 and 2017 respectively;

 Funding provided to local organizations within the Wells and Barkerville communities to support various initiatives;

 The Company in collaboration with Lhtako Dené Nation, Federal Fisheries and Forest, Land and Natural Resource Operations, initiated the Bowron River Salmon Enhancement Project; and

 The Company in collaboration with Lhtako Dené Nation, Federal and Provincial Government, Towns of Barkerville and Bowron, initiated the Wells Gray Southern Mountain Caribou Project.

Sapuchi Minera

Financings

The Company has raised gross proceeds of approximately $253.7 million since its going public transaction. The following summarizes each of the financing events:

On March 18, 2021, the Company announced the completion of a bought deal brokered private placement for aggregate gross proceeds of approximately $33.6 million which included partial exercise of the underwriters option and consisting of; (i) 2,055,742 flow-through ("FT") Share at a price of $9.05 per FT Share and (ii) 1,334,500 Charity FT Share at a price of $11.24 per Charity FT Share. The gross proceeds will be used by the Company to incur eligible Canadian exploration expenses that will qualify as flow-through mining expenditures as such terms are defined in the Income Tax Act (Canada) related to the Cariboo Gold Project and other exploration assets of the Company located in British Columbia.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

On February 5, 2021, the Company closed the second and final tranche of the non-brokered private placement for 1,515,731 units for gross proceeds of $11.2 million. Each unit consists of one common share of the Company and one-half of one common share purchase warrant of the Company, which each whole warrant entitling the holder to acquire one common share of the Company at a price of $10.00 per share on or prior to December 1, 2023;

On January 8, 2021, the Company closed the first tranche of a non-brokered private placement of 9,346,464 units for gross proceeds of $68.6 million. Each unit consists of one common share of the Company and one-half of one common share purchase warrant of the Company, which each whole warrant entitling the holder to acquire one common share of the Company at a price of $10.00 per share on or prior to December 1, 2023.

On December 30, 2020, the Company closed a bought deal Private Placement of 5,367,050 units of the Company at a price of $7.50 per units for gross proceeds of $40.2 million. Each unit consists of one common share of the Company and one-half of one common share purchase warrant of the Company, which each whole warrant entitling the holder to acquire one common share of the Company at a price of $10.00 per share on or prior to December 1, 2023. Fees were paid by the Company to the underwriters and other issuance costs were paid by the Company in connection with the December 2020 bought deal Private Placement. The proceeds of the December 2020 bought deal Private Placement are to be used to further develop the Cariboo Gold Project, advance the San Antonio gold project towards production and for general corporate purposes.

On October 29, 2020, prior to the closing of the RTO, the Company closed an initial bought deal Private Placement of 13,350,000 units of the Company at a price of $7.50 per Common Share for gross proceeds of $100.1 million. Each unit consists of one common share of the Company and one-half of one common share purchase warrant of the Company, which each whole warrant entitling the holder to acquire one common share of the Company at a price of $10.00 per share on or prior to December 1, 2023. Fees were paid by the Company to the underwriters and other issuance costs were paid by the Company in connection with the October 2020 bought deal Private Placement. The proceeds of the October 2020 bought deal Private Placement are to be used to further develop the Cariboo Gold Project, advance the San Antonio gold project towards production and for general corporate purposes.

Summary of Use of Proceeds from financings
As at December 31, 2021 (in millions of dollars)

 

 

Description

Prior
Disclosure

Actual
Spent

Remaining

March 18, 2021
Cariboo Gold project, eligible flow-through expenditures

$33.6

$29.7

$3.9

February 5, 2021
Cariboo Gold project, San Antonio gold project and G&A

$11.2

$11.2

Nil

January 8, 2021
Cariboo Gold project, San Antonio gold project and G&A

$68.6

$68.6

Nil

December 30, 2020
Cariboo Gold project, San Antonio gold project and G&A

$40.2

$40.2

Nil

October 29, 2020
Cariboo Gold project, San Antonio gold project and G&A

$100.1

$100.1

$Nil



Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Selected Financial Information

(In thousands of dollars, except figures for ounces and amounts per ounce and per share) (1)

    Three months ended      Twelve months ended  
    December 31,
2021
    December 31,
20203
    December 31,
2021
    December 31,
2020
3
 
    $     $     $     $  
                         
Revenues   2,980     -     7,661     -  
Cost of sales   (2,980 )   -     (7,661 )   -  
Operating loss   (66,515 )   (4,873 )   (157,365 )   (8,301 )
Net loss   (56,453 )   (7,771 )   (133,302 )   8,072 )
Basic and diluted net loss per share (2)   (0.42 )   0.07     (1.01 )   0.07  
                         
                         
Cash flows used in operating activities   (22,349 )   (1,465 )   (41,414 )   (5,984 )
Cash flows used in investing activities   (18,655 )   (24,181 )   (156,982 )   (61,968 )
Cash flows provided by financing activities   2,431     219,662     34,738     257,615  
                         
Weighted average shares outstanding                        
    Basic and diluted (2) (3)   133,203,232     113,732,580     132,133,613     113,732,580  

As at,   December 31,
2021
    December 31,
2020
    December 31,
2019
 
    $     $     $  
                   
Total assets   703,124     802,144     397,257  
Total Liabilities   (118,922 )   (102,578 )   (42,243 )

(1) Unless otherwise noted, financial information is in Canadian dollars and prepared in accordance with IFRS.

(2) As a result of the net loss in each period, all potentially dilutive common shares are deemed to be antidilutive and thus diluted net loss per share is equal to the basic net loss per share.

(3) The information for periods and as at date prior to November 25, 2020 is presented on a carve-out basis.

Results of Operations

Three months ended December 31, 2021 and 2020

In Q4 2021, the Company incurred an operating loss of $66.5 million compared to $4.9 million in Q4 2020. This increase is due to an impairment of the assets of $47.8 million, of which $5.8 million related to the revaluation of Sapuchi Minera's stockpile inventory and $42 million related to certain exploration and evaluation properties, including the James Bay properties and the Coulon zinc project in Canada. The Company has determined that further exploration and evaluation expenditures are no longer planned in the near term on these properties and that the carrying amount of these assets are unlikely to be recovered from a sale of the project at the current time. As a result, these properties were written down to zero on December 31, 2021.The remaining loss is due to ramp up of activities at Barkerville and Sapuchi Minera.

In Q4 2021, the Company incurred a net loss of $56.4 million in 2021 compared to $7.8 million in 2020. The increase in net loss is primarily due to the reasons noted above.

The net cash flows used in operating activities in the fourth quarter of 2021 amounted to $22.3 million compared to $1.5 million in the fourth quarter of 2020, mainly as a result of cash used in  the operating activities at its Bonanza Ledge II Project.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Investments in mining interest, exploration and evaluation, and property, plant and equipment for Q4 2021 amounted to $38.4 million compared to $24 million for Q4 2020. The increase in 2021 is due to the ramp up of exploration and development activities related to Barkerville's Bonanza Ledge II and Cariboo Gold Projects and Sapuchi Minera's Oxide Stockpile and San Antonio Projects.

Twelve months ended December 31, 2021 and 2020

In YTD 2021, the Company incurred an operating loss of $157.3 million compared to $8.3 million in YTD 2020 and a net loss of $133.3 million compared to $8.1 million in YTD 2020. In both cases, the increase in losses is primarily due to asset impairments totalling$122 million and increased general and administrative expenditures of $27.6 million as the newly formed Company continues to scale its operating and administrative functions.

The net cash flows used in operating activities in YTD 2021 amounted to $41.4 million compared to $6.0 million in YTD 2020, mainly as a result of cash used in the production of gold from Bonanza Ledge II Project  and changes in non-cash working capital items of $19.6 million compared to $4.4 million in 2020. This change in non-cash working capital items was driven by a decrease in accounts receivable of $0.5 million, and increase in inventory of $13 million, other current assets of $4.8 million and accounts payable of $2.3 million.

Investments in mining interest, exploration and evaluation, and property, plant and equipment in YTD 2021 amounted to $188.2 million compared to $66.7 million in YTD 2020. The increase is related to the ramp up in exploration and development activities related to Barkerville's Bonanza Ledge II and Cariboo Gold Projects and Sapuchi Minera's Stockpile and San Antonio Projects.

In 2021, the Company successfully raised and closed $113.4 million in brokered and non brokered private placements, see Financing section.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Consolidated statements of loss

The following table presents summarized statements of loss for the three months and twelve months ended December 31, 2021 and 2020 (in thousands of dollars):

      Three months ended
December 31,
    Twelve months ended
December 31,
 
      2021     2020     2021     2020  
      $     $     $     $  
Revenue (a)   2,980     -     7,661     -  
Operating expenses                          
Cost of sales (a)   2,980     -     7,661     -  
Other operating costs (b)   12,919     -     12,919     -  
General and administrative (c)   6,122     4,850     21,655     8,170  
Exploration and evaluation     (321 )   23     1,197     131  
Impairment of assets (d)   47,795     -     121,594     -  
                           
Operating loss     (66,515 )   (4,873 )   (157,365 )   (8,301 )
                           
Other income, net of other expense (e)   3,787     3,476     11,092     7,035  
                           
Loss  before income taxes     (62,729 )   (1,397 )   (146,273 )   (1,266 )
                           
Income tax expense (f)   6,277     (6,374 )   12,971     (6,806 )
                           
Net loss     (56,452 )   (7,771 )   (133,302 )   (8,072 )

(a) The Company early adopted the amendment to IAS 16, Property, plant and equipment whereby proceeds from the sale of precious metals before the related property, plant and equipment is available for use should be recognized in profit or loss, together with the costs of producing those items.  As a result, the net proceeds of $2.9 million in Q4 2021 and $7.7 million for the twelve months ended December 31, 2021, received from selling recovered gold and silver from its Bonanza Ledge II Project has been recognized as revenue in the consolidated statement of loss. The related cost of sales in relation to the gold and silver sold of $2.9 million and $7.7 million was also recognized in the consolidated statement of loss for the three and twelve months ended December 31, 2021 in accordance with IAS 2, Inventories at the net realizable value of inventory sold.

(b) Other operating costs of $12.9 million were recognized in the three and twelve months ended December 31, 2021. These costs relate to the continuing operating activities at the Bonanza Ledge II Project. Refer to Exploration and Evaluation / Mining Development Activities section.

(c) General and administrative expenses increased to $21.7 million in YTD 2021 compared to $8.2 million in YTD 2020. In Q4 2021, these expenses amounted to $6.1 million compared to $4.9 million in Q4 2020.  The increase is the result of the increased activities and workforce following the spin-out of Osisko Development to support operational activities at Barkerville and Sapuchi Minera.

(d) Asset impairments were recognized in the amount of $47.7 million in Q4 2021 (Nil - 2020) of which $42 million related to certain exploration and evaluation properties, including the James Bay and Coulon zinc properties in Canada and Guerrero properties in Mexico. The Company has determined that further exploration and evaluation expenditures are no longer planned in the near term on these properties and that the carrying amount of these assets is unlikely to be recovered from a sale of the project at the current time. As a result, these properties were written down to $nil on December 31, 2021.The remaining $5.8 million impairment recognized in Q4 2021 is related to the revaluation of stockpile inventory held at Sapuchi Minera to its net realizable value.  The main assumptions that impacted the Sapuchi stockpile valuation were increased capital and processing costs.  For the year ended December 31, 2021, the Company recognized a total impairment of $121.6 million.

(e) Other income net of other expenses amounted to $3.7 million in the fourth quarter and $11 million in YTD 2021, compared to $3.4 million and $7 million in 2020 respectively. The increase in both periods is primarily due to the recognition of a premium on the FT and Charity FT share issuances in 2021, partially offset by share of losses from associates.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

(f) The elements that impacted the effective income taxes are the impairments on mining assets, for which no deferred tax liability was recorded due to the initial recognition exemption, to benefit of losses not recognized, to the recognition of previously unrecognized non-capital losses and to non-taxable premium on flow-through shares.

Selected Quarterly Information

Selected financial results for the previous quarters reported, which have been prepared in accordance with IFRS are shown in the table below:

In thousands of dollars,
except per share amounts
  2021
Q4
    2021
Q3
    2021
Q2
    2021
Q1
    2020
Q4
 
Net loss   (56,452 )   (31,745 )   (41,404 )   (3,701 )   (7,771 )
Net loss per share   (0.42 )   (0.24 )   (0.31 )   (0.03 )   (0.07 )
Net loss diluted per share   (0.42 )   (0.24 )   (0.31 )   (0.03 )   (0.07 )

Liquidity and Capital Resources

As at December 31, 2021, the Company's working capital was $19.6 million, which included cash of $33.4 million, and, the Company incurred a loss of $133.3 million for the year then ended. With the proposed financings announced in February 2022 (refer to Highlights subsequent to year end), management believes that the Company will have sufficient funds to meet its obligations and planned expenditures for the ensuing twelve months as they fall due. In assessing whether the going concern assumption is appropriate, management considers all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period. In order to execute on its planned activities, the Company will be required to close on the announced financings or to secure additional financing in the future, which may be completed in several ways including, but not limited to, a combination of project debt finance, offtake or royalty financing and other capital market alternatives. Failure to close on the announced financings within the expected timelines or at all, may impact and/or curtail the planned activities for the Company, which may include, but are not limited to, the suspension of certain development activities and the disposal of certain investments to generate liquidity.

Significant variations in the liquidity and capital resources for the quarter ended December 31, 2021 are explained below under the Cash Flows section. The Company is dependent upon raising funds in order to fund future capital expenditures and development programs. See the Risk and Uncertainties section of this MD&A for more details.

Cash Flows

The following table summarizes the cash flows (in thousands of dollars):

    Three months ended
December 31,
    Twelve months ended
December 31,
 
    2021     2020     2021     2020  
    $     $     $     $  
Cash flows                        
Operations   (14,640 )   (8,154 )   (21,828 )   (10,409 )
Working capital items   (7,709 )   6,689     (19,586 )   4,425  
Operating activities   (22,349 )   (1,465 )   (41,414 )   (5,984 )
Investing activities   (18,655 )   (24,181 )   (156,982 )   (61,968 )
Financing activities   2,431     219,662     34,738     257,615  
Decrease (increase) in cash before effects of exchange
        rate changes on cash
  (38,573 )   194,016     (163,658 )   189,663  
Effects of exchange rate on changes on cash   (171 )   (242 )   (362 )   242  
(Decrease) increase in cash   (38,744 )   193,774     (164,020 )   189,421  
Cash - beginning of period   72,151     3,653     197,427     8,006  
Cash - end of period   33,407     197,427     33,407     197,427  


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Operating Activities

Cash flows used in operating activities in YTD 2021 amounted to $41.4 million compared to $6.0 million in 2020. In Q4 2021 cash flows used in operating activities amounted to $22.3 million compared to $1.4 million in 2020. Refer to the Results of Operations section above.

Investing Activities

Cash flows used in investing activities amounted to $18.7 million in Q4 2021 compared to cash flows used in investing activities of $24.1 million in 2020. In Q4 2021, the Company invested $22 million for investments in mining interests and $18.6 million in property, plant and equipment, mainly on the Cariboo Gold Project, Bonanza Ledge II Project and Sapuchi Projects. The increase in investing activities is attributable to the ramp up of development activities at Barkerville and Sapuchi Minera.

For YTD 2021, the investing activities totalled $157 million compared to $62 million for the twelve months of 2020. The investments were mainly made in mining interests, exploration and evaluation, and property plant and equipment for $138.6 million, $2.1 million and $47.7 million respectively. These amounts are offset by the disposal of $43.1 million in investment holdings.

Financing Activities

Cash flows provided by financing activities amounted to a positive amount of $2.4 million in Q4 2021 compared to cash flows provided by financing activities of $219.7 million in 2020 and a positive amount of $34.7 million in YTD 2021 compared to $257.7million in YTD 2020. There were no significant financing activities in the fourth quarter of 2021. The total financing activities in YTD 2021 include private placement financings of $39.7 million offset by the payment of capital on lease liabilities of $5.7 million and the expenses on the issuance of shares of $3 million. 

In the first quarter of 2021, the Company closed a non-brokered private placement for 10,862,195 units for aggregate gross proceeds of $79.8 million of which $73.9 million was received in 2020 and the remaining $5.9 million was received in Q1 2021. In addition, the Company closed in March 2021, a bought deal private placement of FT Share and Charity FT Share for aggregate proceeds of $33.6 million.  See Financings section above for further details.

Segmented Disclosure

The Company operates under a single operating segment, being the acquisition, exploration and development of mineral properties.

The assets related to the exploration, evaluation and development of mining projects are located in Canada and in Mexico, and are detailed as follow as at December 31, 2021 (in thousands of dollars):

    December 31, 2021  
    Canada     Mexico     Total  
    $     $     $  
                   
Other assets (non-current)   2,664     12,484     15,148  
Mining interest1   394,329     81,292     475,621  
Property, plant and equipment   61,520     22.192     83,712  
Exploration and evaluation assets   3,635     -     3,635  
Total non-current assets   462,148     115,968     578,116  

1As of December 31, 2021, Mining interest was comprised of two projects, Cariboo Gold Project, which is located in Canada, and the San Antonio Project, which is located in Mexico.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

    Canada     Mexico     Total  
    $     $     $  
                   
For the year ended December 31, 2021                  
Revenues   7,661     -     7,661  
Cost of sales   (7,661 )   -     (7,661 )
Other operating cots   (12,919 )   -     (12,919 )
General and administrative expenses   (18,676 )   (2,979 )   (21,655 )
Exploration and evaluation   (1,073 )   (124 )   (1,197 )
Impairment of assets   (100,435 )   (21,159 )   (121,594 )
Operating Loss   (133,103 )   (24,262 )   (157,365 )

Related party transactions

During the three and twelve months ended December 31, 2021, the Company incurred expenses of $1.5 million and $3.5 million respectively for administrative, legal and technical expenses charged from associates, primarily reflected in the consolidated statement loss.

During the year end December 31, 2021, the Company contributed a donation of $0.5 million to Barkerville Heritage Trust, where an officer of Osisko Development holds a position on the board of directors.

As of December 31, 2021, amounts receivable from associates amounted to $0.1 million and amounts payable to associates totalled $0.3 million.

In November 2020, Sapuchi Minera completed a Gold and Silver Stream agreement with Osisko Bermuda Limited, a subsidiary of Osisko Gold Royalties for US$15.0 million ($19.1 million). An amount of US$10.5 million was paid in November 2020 and the remaining US$4.5 million was paid in February 2021.

Additional information on transactions with related parties can be found under note 32, Related party transactions in the notes to the consolidated financial statements.

Contractual Obligations and Commitments

As of December 31, 2021, the Company had the following minimum contractual obligations and commitments (in thousands of dollars):

    Total1     less than 1 year     1- 2 years  
Purchase obligations   6,535     6,535     -  
Capital commitments   34,348     26,800     7,548  
Total   40,883     33,335     7,548  

(1) The timing of certain capital payments are estimated based on the forecasted timeline of the projects. The majority of the commitments can be canceled at the discretion of the Company with little or no financial impact.

As of December 31, 2021, the Company's total lease obligations amounted to $9.9 million, of which $8.1M is payable within in 1 year.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Off-balance Sheet Items

There are no significant off-balance sheet arrangements, other than contractual obligations and commitments mentioned above.

Risks and Uncertainties

The Company's activities, being the acquisition, exploration, and development of mineral properties in Canada and worldwide, is speculative and involves a high degree of risk. Certain factors, including but not limited to the ones below, could materially affect the Company financial condition and/or future operating results, and could cause actual events to differ materially from those described in forward-looking statements made by or related to the Company. Refer to the "Cautionary Note Regarding Forward-Looking Information" for more information. The reader should carefully consider these risks as well as the information disclosed in the Company's consolidated financial statements.

There are important risks which management believes could impact the Company's activities. For information on risks and uncertainties, please also refer to the Risk Factors section of the restated Annual Information Form filed by the Company on May 24, 2022 that can be found on SEDAR (www.sedar.com) under Osisko Development's issuer profile.

Osisko Development's operations are subject to financing risks and additional financing may result in dilution or partial sale of assets

Osisko Development's operations are subject to financing risks. At the present time, the Company has exploration and development assets which may generate periodic revenues through test mining but has no mines in the commercial production stage. The Company cautions that test mining at its operations could be suspended at any time. The Company's ability to explore for and find potential economic projects, and then to bring them into production, is highly dependent upon its ability to raise equity and debt capital in the financial markets. Any projects that the Company develops will require significant capital expenditures. To obtain such funds, the Company may sell additional securities including, but not limited to, the Company's shares or some form of convertible security, the effect of which could result in a substantial dilution of the equity interests of the Company's Shareholders. Alternatively, the Company may also sell a part of its interest in an asset in order to raise capital. There is no assurance that the Company will be able to raise the funds required to continue its exploration programs and finance the development of any potentially economic deposit that is identified on acceptable terms or at all. The failure to obtain the necessary financing could have a material adverse effect on the Company's growth strategy, results of operations, financial condition and project scheduling.

Risks related to mining operations

Mining operations are and will be subject to all the hazards and risks normally incidental to exploration, development and production of mineral resources and mineral reserves including unusual or unexpected geological formations and other conditions such as formation pressures, fire, power outages, flooding, explosions, cave-ins, landslides and the inability to obtain suitable machinery, equipment or labour, any of which could result in work stoppages, damage to property, and possible environmental damage that even a combination of careful evaluation, experience and knowledge may not eliminate or adequately mitigate. The Company may be subject to liability for pollution, cave-ins or hazards against which it cannot insure or against which it may elect not to insure. The payment of such liabilities may have a material adverse effect on the financial position of the Company.

Major expenditures are required to develop metallurgical processes and to construct mining and processing facilities at a particular site. Whether a mineral deposit will be commercially viable depends on a number of factors, some of which are: the particular attributes of the deposit, such as size, grade and proximity to infrastructure; metal prices, which are highly volatile; and governmental regulations, including those relating to prices, taxes, royalties, land tenure, land use, allowable production, importing and exporting of minerals and environmental protection.

Operations Not Supported by a Feasibility Study

Certain operations described herein, including the test mining at Bonanza Ledge II, processing of the stockpile at the Sapuchi mine, and ongoing test mining being carried out by the current owners of the Trixie mine, have been operated without the benefit of a feasibility study including mineral reserves, demonstrating economic and technical viability (and in the case of Sapuchi and Trixie without the benefit of a technical report demonstrating the existence of a mineral resource), and, as a result there may be increased uncertainty of achieving any particular level of recovery of material or the cost of such recovery. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that commercial production will commence, continue as anticipated or at all or that anticipated production costs will be achieved.  The failure to commence or continue production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations.  Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and potential profitability.  In continuing current operations at Bonanza Ledge II, commencing processing at Sapuchi, and, if applicable, continuing operations at the Trixie mine, as contemplated, the Company will not be basing its decision to continue such operations on a feasibility study of mineral reserves demonstrating economic and technical viability (and in the case of Sapuchi and Trixie without the benefit of a technical report demonstrating the existence of a mineral resource).


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Operating Cash Flow

The Company has negative cash flow from operations. If additional funds are needed, there is no assurance that additional capital or other types of financing will be available or that these financings will be on terms at least as favourable to the Company as those previously obtained, or at all.

Industry Conditions

The exploration for and development of mineral deposits involve significant risks and while the discovery of an ore body may result in substantial rewards, few properties that are explored are ultimately developed into producing mines. All of the Company's properties are in the development or exploration stage and the Company is presently not exploiting any of its properties and its future success will depend on its capacity to generate revenues from an exploited property.

The discovery of mineral deposits depends on a number of factors, including the professional qualification of its personnel in charge of exploration. Whether a mineral deposit will be commercially viable depends on a number of factors, some of which are the particular attributes of the deposit, such as size, grade and proximity to infrastructure, as well as metal prices which are highly cyclical and government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and environmental protection. In the event that the Company wishes to commercially exploit one of its properties, the exact effect of these factors cannot be accurately predicted, but the combination of these factors may result in the Company not receiving an adequate return on invested capital. The Company's operations will be subject to all the hazards and risks normally encountered in the exploration and development of mineral deposits. Mining operations generally involve a high degree of risk, including unusual and unexpected geologic formations.

Regulatory Matters

The Company's activities are subject to governmental laws and regulations. These activities can be affected at various levels by governmental regulation governing prospecting and development, price control, taxes, labour standards and occupational health, expropriation, mine safety and other matters. Exploration and commercialization are subject to various federal, provincial and local laws and regulations relating to the protection of the environment. These laws impose high standards on the mining industry to monitor the discharge of wastewater and report the results of such monitoring to regulatory authorities, to reduce or eliminate certain effects on or into land, water or air, to progressively rehabilitate mine properties, to manage hazardous wastes and materials and to reduce the risk of worker accidents.

Failure to comply with applicable laws and regulations may result in civil or criminal fines or penalties or enforcement actions, including orders issued by regulatory or judicial authorities enjoining or curtailing operations or requiring corrective measures, installation of additional equipment or remedial actions, any of which could result in significant expenditures. The Company may also be required to compensate private parties suffering loss or damage by reason of a breach of such laws, regulations or permitting requirements. It is also possible that future laws and regulations, or more stringent enforcement of current laws and regulations by governmental authorities, could cause additional expense, capital expenditures, restrictions on or suspensions of the Company's activities and delays in the exploration and development of the projects and properties.

Amendments to current laws, regulations and permits governing operations and activities of mining companies, or more stringent implementation thereof, could have a material adverse impact on the Company and cause increases in capital expenditures or development costs or require abandonment or delays in development of new mining properties.

The Company is subject to currency fluctuations that may adversely affect the financial position of the Company.

The Company is subject to currency risks. The Company's functional currency is the Canadian dollar, which is exposed to fluctuations against other currencies. The Company's activities are located in Canada and Mexico, and as such many of its expenditures and obligations are denominated in U.S. dollars and Mexican pesos. The Company maintains its principal office in Montreal (Canada), maintains cash accounts in Canadian dollars, U.S. dollars and Mexican pesos and has monetary assets and liabilities in Canadian dollars, U.S. dollars and Mexican pesos.

The Company's assets and liquidities are significantly affected by changes in the Canadian/U.S. dollar and Canadian/Mexican peso exchange rates. Most expenses are currently denominated in Canadian dollars and Mexican pesos. Exchange rate movements can therefore have a significant impact on the Company's costs. The appreciation of non-Canadian dollar currencies against the Canadian dollar can increase the costs of the Company's activities.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

The Company is subject to taxation in multiple jurisdictions and adverse changes to the taxation laws of such jurisdictions could have a material adverse effect on its profitability

The Company has operations and conducts business in multiple jurisdictions and it is subject to the taxation laws of each such jurisdiction. These taxation laws are complicated and subject to change. The Company may also be subject to review, audit and assessment in the ordinary course. Any such changes in taxation law or reviews and assessments could result in higher taxes being payable or require payment of taxes due from previous years, which could adversely affect the Company's liquidities. Taxes may also adversely affect the Company's ability to repatriate earnings and otherwise deploy its assets.

The Company's exploration and developing properties that are located in jurisdictions that are subject to changes in economic and political conditions and regulations in those countries

The economics of the exploration and development of mining projects are affected by many factors, including the costs of exploration and development, variations of grade of ore discovered, fluctuations in metal prices, foreign exchange rates and the prices of goods and services, applicable laws and regulations, including regulations relating to royalties, allowable production and importing and exporting goods and services. Depending on the price of minerals, the Company may determine that it is neither profitable nor advisable to acquire or develop properties.

The Company's mineral properties are located in Canada and Mexico. Economic and political conditions in these countries could adversely affect the business activities of the Company. These conditions are beyond the Company's control, and there can be no assurances that any mitigating actions by the Company will be effective.

Changing laws and regulations relating to the mining industry or shifts in political conditions may increase the costs related to the Company's activities including the cost of maintaining its properties. Operations may also be affected to varying degrees by changes in government regulations with respect to restrictions on exploration and development activities, price controls, export controls, income taxes, royalties, expropriation of property, environmental legislation (including specifically legislation enacted to address climate change) and mine safety. The effect of these factors cannot be accurately predicted. Economic instability could result from current global economic conditions and could contribute to currency volatility and potential increases to income tax rates, both of which could significantly impact the Company's profitability.

The Company's activities are subject to extensive laws and regulations governing worker health and safety, employment standards, waste disposal, protection of historic and archaeological sites, mine development, protection of endangered and protected species and other matters. Regulators have broad authority to shut down and/or levy fines against facilities that do not comply with regulations or standards.

Risk factors specific to certain jurisdictions are described throughout, including specifically "Security in Mexico". The occurrence of the various factors and uncertainties related to economic and political risks of operating in the Company's jurisdictions cannot be accurately predicted and could have a material adverse effect on the Company.

Security in Mexico

In recent years, criminal activity and violence have increased and continue to increase in parts of Mexico. The mining sector has not been immune to the impact of criminal activity and violence, including in the form of kidnapping for ransom and extortion by organized crime, direct armed robberies of mining operations and the theft and robbery of supply convoys, including specifically for diesel. The Company takes measures to protect employees, property and production facilities from these and other security risks. There can be no assurance, however, that security incidents, in the future, will not have a material adverse effect on our operations.

Some of the Company's mineral assets are located outside of Canada and are held indirectly through foreign affiliates.

It may be difficult if not impossible to enforce judgments obtained in Canadian courts predicated upon the civil liability provisions of the securities laws of certain provinces against the Company's assets that are located outside of Canada.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Permits, Licences and Approvals

The operations of the Company require licences and permits from various governmental authorities. The Company believes it holds or is in the process of obtaining all necessary licences and permits to carry on the activities, which it is currently conducting under applicable laws and regulations. Such licences and permits are subject to changes in regulations and in various operating circumstances. There can be no guarantee that the Company will be able to obtain all necessary licences and permits that may be required to maintain its mining activities, construct mines or milling facilities and commence operations of any of its exploration properties. In addition, if the Company proceeds to production on any exploration property, it must obtain and comply with permits and licences which may contain specific conditions concerning operating procedures, water use, the discharge of various materials into or on land, air or water, waste disposal, spills, environmental studies, abandonment and restoration plans and financial assurances. There can be no assurance that the Company will be able to obtain such permits and licences or that it will be able to comply with any such conditions.

Any mergers, acquisitions or joint ventures would be accompanied by risks

The Company may evaluate from time to time opportunities to merge, acquire and joint venture assets and businesses or conduct any other type of transaction. Global landscape has changed and there are risks associated to such transactions due to liabilities and evaluations with the aggressive timelines of closing transactions from increased competition. There is also a risk that the review and examination process might be inadequate and cause material negative outcomes. These transactions may be significant in size, may change the scale of the Company's business and may expose it to new geographic, political, operating, financial and geological risks. Any transactions would be accompanied by risks, such as the difficulty of assimilating the operations and personnel; the potential disruption of the Company's ongoing business; the inability of management to maximize the financial and strategic position of the Company; the maintenance of uniform standards, controls, procedures and policies; the impairment of relationships with employees, customers and contractors as a result of any integration of new management personnel; dilution of the Company's present shareholders or of its interests in its assets or the decision to grant interests to a joint venture partner; and the potential unknown liabilities. There can be no assurance that the Company would be successful in overcoming these risks or any other problems encountered in connection with such transactions or joint ventures. There may be no right for shareholders to evaluate the merits or risks of any future transaction or joint venture undertaken except as required by applicable laws and regulations.

Proposed Tintic Transaction

The information about the timeline to complete the Transaction, ability to satisfy or waive on satisfactory terms any conditions to the completion of the Transaction (including but not limited to, TSX-V acceptance of the Transaction), the timeline to reach a definitive agreement with respect to the Stream (if at all), the ability to obtain the financing under the Stream and satisfy or waive on satisfactory terms any conditions to the completion of the Stream financing, the general prospects of Tintic, the utility of the existing infrastructure at Tintic, the utility of historic data, expected investor returns, target gold, the focus of Tintic on achieving gold production, the prospects of shallow mining at Tintic, the ability of exploration (including drilling) to accurately predict mineralization, base metal discoveries, ability to obtain additional financing for project development on satisfactory terms, the investment opportunities presented by Tintic, Tintic achieving production (including near-term timing, if at all), the opportunities presented by the Trixie Mine, its mineralized material deposit and its ability to be mined (including any potential value, if any), Tintic having a pipeline of projects, both historic and new, Tintic's ability to realize upon additional projects (if any), grade estimates, the speculative geology of inferred mineral resources, the ability, if any, to achieve the project economics described herein, the ability, if any, of selective mining methods to capture additional mineable resources and to optimize gold and silver recoveries, the mining and processing strategy; potential mineralization; the ability to realize upon any mineralization in a manner that is economic; the ability to complete any proposed exploration activities and the results of such activities, and any other information herein that is not a historical fact may be "forward-looking statements". These forward‐looking statements, by their nature, require Osisko Development to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward‐looking statements.

Indigenous title claims, rights to consultation/accommodation, and the Company's relationship with local communities may affect the Company's existing exploration and development projects.

Governments in many jurisdictions must consult with indigenous peoples and First Nations with respect to grants of mineral rights or surface rights and the issuance or amendment of project authorizations. Consultation and other rights of indigenous peoples and first nations may require accommodations, including undertakings regarding employment, royalty payments and other matters. This may affect the Company's ability to acquire, within a reasonable time frame, effective mineral titles or surface rights in these jurisdictions, including in some parts of Canada, in which indigenous or local communities' titles are claimed, and may affect the timetable and costs of development of mineral properties in these jurisdictions. The risk of unforeseen indigenous title claims also could affect exploration and development projects. These legal requirements may also affect the Company's ability to transfer existing projects or to develop new projects.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

The Company's relationship with the communities in which it conducts activities are critical to ensure the future success of its existing activities and the exploration and development of its projects. There is an increasing level of public concern relating to the perceived effect of mining activities on the environment and on communities impacted by such activities. Adverse publicity relating to the mining industry generated by non-governmental organizations and others could have an adverse effect on the Company's reputation or financial condition and may impact its relationship with the communities in which it conducts activities. While the Company is committed to working in a socially responsible manner, there is no guarantee that the Company's efforts in this regard will mitigate this potential risk.

The inability of the Company to maintain positive relationships with local communities may result in additional obstacles to permitting, increased legal challenges, or other disruptive operational issues at any of the Company's projects, and could have a significant adverse impact on the Company's share price and financial condition.

Competition

The Company activities are directed towards the exploration, evaluation and development of mineral deposits. There is no certainty that the expenditures to be made by the Company will result in discoveries of commercial quantities of mineral deposits. There is aggressive competition within the mining industry for the discovery and acquisition of properties considered to have commercial potential. The Company will compete with other interests, many of which have greater financial resources than it will have, for the opportunity to participate in promising projects. Significant capital investment is required to achieve commercial production from successful exploration efforts, and the Company may not be able to successfully raise funds required for any such capital investment.

The Company may be impacted by Anti-Bribery laws.

The Canadian Corruption of Foreign Public Officials Act and the U.S. Foreign Corrupt Practices Act and anti-bribery laws in other jurisdictions where we do business, prohibit companies and their intermediaries from making improper payments for the purposes of obtaining or retaining business or other commercial advantage. The Company's policies mandate compliance with these anti-bribery laws, which often carry substantial penalties. The Company operates in jurisdictions that have experienced governmental and private sector corruption to some degree, and, in certain circumstances, strict compliance with anti-bribery laws may conflict with certain local customs and practices. There can be no assurances that the Company's internal control policies and procedures will always protect it from reckless or other inappropriate acts committed by the Company's affiliates, employees or agents. Violations of these laws, or allegations of such violations, could have a material adverse effect on the Company's business, financial position and results of operations.

Osisko Development may experience difficulty attracting and retaining qualified management to grow its business, which could have a material adverse effect on the Company's business and financial condition.

The Company is dependent on certain members of Management, particularly its Chief Executive Officer. The loss of their services could adversely affect the Company.

The Company is dependent on the services of key executives and other highly skilled personnel focused on advancing its corporate objectives as well as the identification of new opportunities for growth and funding. The loss of these persons or its inability to attract and retain additional highly skilled employees required for its activities may have a material adverse effect on the Company's business and financial condition. Further, while certain of the Company's officers and directors have experience in the exploration, development and operation of mineral properties, the Company remains highly dependent upon contractors and third parties in the performance of their exploration and development activities. There can be no guarantee that such contractors and third parties will be available to carry out such activities on behalf of the Company or be available upon commercially acceptable terms.

Conflicts of Interest

Certain directors and officers of the Company also serve as directors and officers of other companies involved in natural resource exploration and development; consequently, there is a possibility that such directors and officers will be in a position of conflict of interest. Any decision made by such directors and officers involving the Company will be made in accordance with their duties and obligations to deal fairly and in good faith with the Company and such other companies. In addition, such directors and officers will declare, and refrain from voting on, any matter in which such directors and officers may have a material conflict of interest.

Uninsured Hazards

The Company could be held responsible for certain events including environmental pollution, cave-ins or other hazards against which a corporation such as the Company cannot insure or against which it may elect not to insure, taking into consideration the importance of the premiums or other reasons. The payment of amounts relating to liability of the aforementioned hazards could cause the loss of the Company's assets.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Mineral resource and mineral reserve estimates have inherent uncertainty

Mineral resource and mineral reserve figures are only estimates. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. While the Company believes that the mineral resource and mineral reserve estimates, as applicable, in respect of properties in which the Company holds a direct interest reflect best estimates, the estimating of mineral resources and mineral reserves is a subjective process and the accuracy of mineral resource and mineral reserve estimates is a function of the quantity and quality of available data, the accuracy of statistical computations, and the assumptions used and judgments made in interpreting available engineering and geological information. There is significant uncertainty in any mineral resource and mineral reserve estimate and the actual deposits encountered and the economic viability of a deposit may differ materially from estimates. Estimated mineral resources and mineral reserves may have to be re-estimated based on changes in prices of gold or other minerals, further exploration or development activity or actual production experience. This could materially and adversely affect estimates of the volume or grade of mineralization, estimated recovery rates or other important factors that influence such estimates. In addition, mineral resources are not mineral reserves and there is no assurance that any mineral resource estimate will ultimately be reclassified as proven or probable mineral reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability.

Economics of developing mineral properties

Mineral exploration and development is speculative and involves a high degree of risk. While the discovery of an ore body may result in substantial rewards, few properties which are explored are commercially mineable and ultimately developed into producing mines. There is no assurance that any exploration properties will be commercially mineable.

Should any mineral resources exist, substantial expenditures will be required to confirm mineral reserves which are sufficient to commercially mine and to obtain the required environmental approvals and permitting required to commence commercial operations. The decision as to whether a property contains a commercially viable mineral deposit and should be brought into production will depend upon the results of exploration programs, preliminary economic assessment and/or feasibility studies, and the recommendations of duly qualified engineers and/or geologists, all of which involves significant expense. This decision will involve consideration and evaluation of several significant factors including, but not limited to: (a) costs of bringing a property into production, including exploration and development work, preparation of, if applicable, preliminary economic assessment and production feasibility studies and construction of production facilities; (b) availability and costs of financing; (c) ongoing costs of production; (d) metal prices; (e) environmental compliance regulations and restraints (including potential environmental liabilities associated with historical exploration activities); and (f) political climate and/or governmental regulation and control. Development projects are also subject to the successful completion of engineering studies, issuance of necessary governmental permits, and availability of adequate financing. Development projects have no operating history upon which to base estimates of future cash flow.

Factors beyond the control of Osisko Development

The potential profitability of mineral properties is dependent upon many factors beyond the Company's control. For instance, world prices of and markets for minerals are unpredictable, highly volatile, potentially subject to governmental fixing, pegging and/or controls and respond to changes in domestic, international, political, social and economic environments. Another factor is that rates of recovery of minerals from mined ore (assuming that such mineral deposits are known to exist) may vary from the rate experienced in tests and a reduction in the recovery rate will adversely affect profitability and, possibly, the economic viability of a property. Profitability also depends on the costs of operations, including costs of labour, equipment, electricity, environmental compliance or other production inputs. Such costs will fluctuate in ways the Company cannot predict and are beyond the Company's control, and such fluctuations will impact on profitability and may eliminate profitability altogether. Additionally, due to worldwide economic uncertainty, the availability and cost of funds for development and other costs have become increasingly difficult, if not impossible, to project. These changes and events may materially affect the financial performance of the Company and they may also negatively impact the project schedule.

Osisko Development may be subject to liability or sustain loss for certain risks and hazards against which it does not or cannot economically insure

Mining is capital intensive and subject to a number of risks and hazards, including environmental pollution, accidents or spills, industrial and transportation accidents, labour disputes, changes in the regulatory environment, natural phenomena (such as inclement weather conditions, earthquakes, pit wall failures and cave-ins) and encountering unusual or unexpected geological conditions. Such risk and hazards might impact the Company's business. Consequently, many of the foregoing risks and hazards could result in damage to, or destruction of, the Company's mineral properties or future processing facilities, personal injury or death, environmental damage, delays in or interruption of or cessation of their exploration or development activities, delay in or inability to receive required regulatory approvals, or costs, monetary losses and potential legal liability and adverse governmental action. Osisko Development may be subject to liability or sustain loss for certain risks and hazards against which it does not or cannot insure or against which it may reasonably elect not to insure because of the cost. This lack of insurance coverage could result in material economic harm to the Company.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Environmental risks and hazards

Osisko Development is subject to environmental regulation in the jurisdictions in which it operates. These regulations mandate, among other things, the maintenance of air and water quality standards and land reclamation. They also set forth limitations on the general, transportation, storage and disposal of solid and hazardous waste. Environmental legislation is evolving in a manner which will require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. There is no assurance that future changes in environmental regulation, if any, will not adversely affect the Company's operations. Environmental hazards may exist on the properties which are unknown to the Company at present and which have been caused by previous or existing owners or operators of the properties. Reclamation costs are uncertain and planned expenditures estimated by management may differ from the actual expenditures required.

Fluctuation in market value of Osisko Development Common Shares

The market price of Osisko Development Common Shares is affected by many variables not directly related to the corporate performance of the Company, including the strength of the economy generally, the availability and attractiveness of alternative investments, and the breadth of the public market for the stock. The effect of these and other factors on the market price of the Osisko Development Shares in the future cannot be predicted and may cause decreases in asset values, which may result in impairment losses.

Disclosure Controls and Procedures

Management has established processes to provide them sufficient knowledge to support representations that they have exercised reasonable diligence that (i) the consolidated financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of and for the periods presented by the consolidated financial statements; and (ii) the consolidated financial statements fairly present in all material respects the financial condition, results of operations and cash flows of the Company, as of the date of and for the periods presented.

In contrast to the certificate required for non-venture issuers under National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures ("DC&P") and internal control over financial reporting ("ICFR"), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of:

i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's accounting policies.

The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.

Basis of Presentation of the consolidated Financial Statements

These accompanying consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The accounting policies, methods of computation and presentation applied in these consolidated financial statements are detailed in the financial statements notes.

The comparative financial information presented prior to November 25, 2020 represent the carve-out financial information of the mining assets of Osisko Gold Royalties and reflect the activities, assets and liabilities of the Osisko contributed assets on a "carved-out" basis, rather than representing the legal form applicable at the time.


Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Amendments to IAS 1 Presentation of Financial Statements

The IASB has made amendments to IAS 1 Presentation of Financial Statements which uses a consistent definition of materiality throughout IFRS and the Conceptual Framework for Financial Reporting, clarify when information is material and incorporate some of the guidance in IAS 1 about immaterial information. In particular, the amendments clarify that information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. Materiality depends on the nature or magnitude of information, or both. An entity assesses whether information, either individually or in combination with other information, is material in the context of its financial statements taken as a whole. The Company adopted IAS 1 on January 1, 2020, which did not have a significant impact on the consolidated financial statements disclosures.

Critical Accounting Estimates and Judgements

Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The determination of estimates requires the exercise of judgement based on various assumptions and other factors such as historical experience and current and expected economic conditions. Actual results could differ from those estimates.

Critical accounting estimates and assumptions as well as critical judgements in applying the Company's accounting policies are detailed in the consolidated financial statements for the year ended December 31, 2021 and 2020.

Financial Instruments

All financial instruments are required to be measured at fair value on initial recognition. The fair value is based on quoted market prices, unless the financial instruments are not traded in an active market. In this case, the fair value is determined by using valuation techniques like discounted cash flows, the Black-Scholes option pricing model or other valuation techniques. Measurement in subsequent periods depends on the classification of the financial instrument. A description of financial instruments and their fair value is included in the consolidated financial statements for the year ended December 31, 2021 and 2020.

Technical Information

The scientific and technical information contained in this MD&A has been reviewed and approved by Ms. Maggie Layman who is "Qualified Persons" ("QP") as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Share Capital Structure

As of the date of this MD&A, the following number of common shares of the Company and other securities of the Company exercisable for common shares of the Company are outstanding:

Securities

Common shares on exercise

Common shares

47,593,251

Stock options

674,334

RSU's

342,220

DSU's

79,784

Warrants

8,105,075

Fully diluted share capital

56,794,664



Osisko Development Corp. Management's Discussion and Analysis
For the three and twelve months ended December 31, 2021  

Cautionary Note Regarding Forward-Looking Statements

This MD&A may contain forward-looking statements and forward-looking information within the meaning of applicable Canadian securities legislation (collectively, "forward-looking information"), including, but not limited to, statements relating to the future financial or operating performance of the Company, the Company's mineral projects, the future price of metals, the estimation of mineral resources, the realization of mineral resource estimates, the timing and amount of estimated future production (if any), capital, operating and exploration expenditures, costs and timing of  the development of new deposits, costs and timing of future exploration, use of proceeds from financings, requirements for additional capital, government regulation of mining operations and mineral exploration activities, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage, development of the projects, timing (if at all) to complete a preliminary economic assessment and, if applicable,-feasibility study on the projects and the ability to complete pending acquisitions. Often, but not always, forward-looking information can be identified by the use of words and phrases such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking information reflects the Company's beliefs and assumptions based on information available at the time such statements were made. Actual results or events may differ from those predicted in forward-looking information. All of the Company's forward-looking information is qualified by (i) the assumptions that are stated or inherent in such forward-looking information, including the assumptions listed below, and (ii) the risks described in the section entitled "Risks and Uncertainties" in this MD&A, the financial statements of the Corporation, and the sections entitled "Risk Factors" and "Risk Factors" in the restated Annual Information Form of the Company, dated May 20, 2020, which are available electronically on SEDAR (www.sedar.com) under Osisko Development's issuer profiles.

Although the Company believes that the assumptions underlying the forward-looking information contained in this MD&A are reasonable, this list is not exhaustive of the factors that may affect any forward-looking information. The key assumptions that have been made in connection with forward-looking information include the following: the significance of drill results and ongoing exploration activities; timing to obtain assay results from labs; ability of exploration activities (including drill results) to accurately predict mineralization; the predictability of geological modelling; the accuracy of the Company's records of its property interests; the global economic climate; metal prices; environmental risks; community and non- governmental actions; that permits required for the Company's operations will be obtained on a timely basis in order to permit the Company to proceed on schedule with its planned drilling programs; that skilled personnel and contractors will be available as the Company operations continue to grow; that the price of gold will exceed levels that will render the project of the Company economical; the relevance of the assumptions, that the Company will be able to continue raising the necessary capital to finance its operations and that proposed transactions can be completed on the terms upon which they were entered into.

Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; errors in geological modelling; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; possible variations of grade or recovery rates; failure of plant and equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is given as of the date of this MD&A and the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

 



Osisko Development Corp.: Exhibit 99.36 - Filed by newsfilecorp.com

Consent of Independent Auditor

We hereby consent to the incorporation by reference in this Amendment No. 1 to the Registration Statement on Form 40-F of Osisko Development Corp. of our report dated February 24, 2022 relating to the consolidated financial statements as at December 31, 2021 and 2020 and for each of the years then ended, which appears in the Exhibit 99.3 to this Amendment No. 1 to the Registration Statement on Form 40-F.

We also hereby consent to the incorporation by reference in this Amendment No. 1 to the Registration Statement on Form 40-F of Osisko Development Corp. of our report dated February 24, 2021 relating to the consolidated financial statements as at December 31, 2020 and 2019 and for each of the years then ended, which appears in the Exhibit 99.11 to this Amendment No. 1 to the Registration Statement on Form 40-F.

We also consent to the reference to us under the heading "Interests of Experts", which appears in the Restated Annual Information Form included in the Exhibit 99.1 to this Amendment No. 1 to the Registration Statement on Form 40-F.

/s/ PricewaterhouseCoopers LLP

Montreal, Quebec, Canada

May 25, 2022



Osisko Development Corp.: Exhibit 99.38 - Filed by newsfilecorp.com

Exhibit 99.38

Consent of Carl Pelletier

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

 By: /s/ Carl Pelletier

 Carl Pelletier, P.Geo.

 Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.41 - Filed by newsfilecorp.com



Schedule / Annexe
Amendment Schedules / Annexes - Modification

1. The Articles of the Corporation are amended to consolidate the Corporation's issued and outstanding Common Shares on the basis of three (3) pre-consolidation Common Shares for one (1) post-consolidation Common Share (the "Consolidation"); and

2. Any fractional shares resulting from the Consolidation shall be rounded down to the nearest whole number.



Osisko Development Corp.: Exhibit 99.42 - Filed by newsfilecorp.com

OSISKO DEVELOPMENT CORP.

Management's Discussion and Analysis

For the three months ended March 31, 2022


The following management discussion and analysis ("MD&A") of the operations and financial position of Osisko Development Corp. and its subsidiaries, ("Osisko Development" or the "Company") for the three months ended March 31, 2022 ("Q1 2022" and "YTD 2022", respectively) should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements and related notes for the three months ended March 31, 2022 and with the audited consolidated financial statements for the fiscal year ended December 31, 2021 and 2020, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). Management is responsible for the preparation of the consolidated financial statements and other financial information relating to the Company included in this report. All monetary amounts included in this report are expressed in Canadian dollars, the Company's reporting and functional currency, unless otherwise noted. Assets and liabilities of the subsidiaries that have a functional currency other than the Canadian dollar are translated into Canadian dollars at the exchange rate in effect on the balance sheet date and revenues and expenses are translated at the average exchange rate over the reporting period. This MD&A contains forward-looking statements and should be read in conjunction with the risk factors described in the "Forward-Looking Statements" section. This MD&A is dated as of May 12, 2022, the date the Board of Directors approved the Company's unaudited condensed interim consolidated financial statements for the three months ended March 31, 2022 following the recommendation of the Audit and Risk Committee.

The Company was continued as a federal Company subject to the provisions of the Canada Business Corporations Act ("CBCA") in November 2020 and is focused on developing its cornerstone mining asset, the Cariboo Gold Project located in British Columbia, Canada. Osisko Development also owns a gold development project in Sonora, Mexico, known as the San Antonio gold project, prospective land packages in the James Bay region of Québec, Canada, Guerrero, Mexico and a portfolio of marketable securities. Osisko Development's common shares are traded the TSX Venture Exchange ("TSX-V") under the symbol ODV.

Table of Contents  
Our Business 2
Highlights -2022 3
Highlights - Subsequent to the period end 3
Uncertainty due to COVID-19 3
Exploration and Evaluation / Mining Development Activities 4
Equity Investments 9
Sustainability Activities 10
Financings 11
Selected Financial Information 13
Results of Operations 13
Liquidity and Capital Resources 15
Cash Flows 15
Related party transactions 17
Contractual Obligations and Commitments 17
Off-balance Sheet Items 18
Risks and Uncertainties 18
Disclosure Controls and Procedures 28
Basis of Presentation of the consolidated Financial Statements 29
Critical Accounting Estimates and Judgements 29
Financial Instruments 29
Technical Information 29
Share Capital Structure 30
Cautionary Note Regarding Forward-Looking Statements 30


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Our Business

Osisko Development is focused on becoming a North American intermediate producer of precious metals, through curating development projects and investments with potential for value creation. The primary projects held by the Company as of March 31, 2022 are as follows:

 Cariboo Gold Project (Permitting - British Columbia, Canada), owned and operated by Barkerville Gold Mines ("Barkerville")

 San Antonio Gold Project (Permit Amendment - Sonora, Mexico), owned and operated by Sapuchi Minera S. R.L de C.V. ("Sapuchi Minera")

The Cariboo Gold Project is advancing through the permitting process. While working through the environmental assessment review and the 43-101 Report for its Cariboo Gold Project, the Company is producing gold at its Bonanza Ledge II project. The Bonanza Ledge II project is anticipated to be fully mined by the end of the third quarter in 2022. The Company cautions that the decision to undertake test mining at Bonanza Ledge II has been taken without the benefit of a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result there may be increased uncertainty of achieving any particular level of recovery of material or the cost of such recovery. The Company cautions that historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will continue as anticipated or at all or that anticipated production costs will be achieved. The failure to continue production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and potential profitability. In continuing current operations at Bonanza Ledge II, as contemplated, the Company will not be basing its decision to continue such operations on a feasibility study of mineral reserves demonstrating economic and technical viability

On January 25, 2022, the Company entered into a definitive agreement to acquire 100% of Tintic Consolidated Metals LLC ("Tintic"), (the "Transaction"). On completion of the Transaction, the Company will acquire 100% ownership of the producing Trixie test mine, as well as mineral claims covering more than 17,000 acres in Central Utah's historic Tintic Mining District. Tintic's ongoing exploration work has demonstrated potential for expansion and further discovery both at the Trixie mine and the broader land package. It is hoped that the imminent acquisition of Tintic will further accelerate Osisko Development's path towards becoming a mid-tier gold producer and adds another opportunity for the Company to explore and develop another project in its portfolio, with a high grade potential and a low capital intensity. The Company cautions that the owners of Tintic have taken the decision to commence production at Trixie in the form of small scale underground mining and batch vat leaching without the benefit of a feasibility study, or reported mineral resources or mineral reserves, demonstrating economic and technical viability, and, as a result there may be increased uncertainty of achieving any particular level of recovery of material or the cost of such recovery. The Company cautions that historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will continue as anticipated or at all or that anticipated production costs will be achieved. The failure to continue production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and potential profitability. The Company cautions that historically, such projects have a much higher economic or technical risks. In continuing current operations at Trixie after closing, the Company will not be basing its decision to continue such operations on a feasibility study, or reported mineral resources or mineral reserves demonstrating economic and technical viability.

The evaluation and development of the Company's various projects is dependent on management's ability to secure additional financings in the future, refer to Liquidity and Capital Resources section below.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Highlights -2022

 On January 25, 2022, Osisko Development entered into definitive agreements to acquire 100% of Tintic for total consideration of US$177 million, of which approximately US$54 million will be paid in cash upon closing. In addition, the Company will pay to IG Tintic and Ruby Hollow (the "Vendors"): (i) US$12.5 million in deferred payments (ii) a 2% NSR royalty, with a 50% buyback right in favour of Osisko Development exercisable within 5 years; and (iii) other contingent payments, rights and obligations. Refer to Exploration and Evaluation / Mining Development Activities section.

 On March 2, 2022, the Company completed a Brokered Private Placement issuing 9,525,850 Brokered Units at a price of $4.45 for gross proceeds of $42.4 million and 13,732,900 Brokered Subscription Receipts at a price of $4.45 for gross escrowed proceeds of $61.1 million (refer to Financing section below). The gross proceeds from the Brokered Subscription Receipts, net of expenses of the underwriters, will be placed into escrow and will be released immediately prior to the completion of the Company's proposed acquisition of Tintic.

 On March 4, March 29 and April 21, 2022, the Company completed three tranches of a Non-Brokered Private Placement, issuing 34,093,768 Non-Brokered Subscription Receipts at a price of USD$3.50 for gross proceeds of US$119.3 million (CAD$151.3 million). The gross proceeds from the Non-Brokered Private Placement will be placed in escrow and released upon the Company listing its shares on the New York Stock Exchange ("NYSE") (refer to Financing section below).

 For the three months ended March 31, 2022, the Company earned $9.2 million in revenues from its Bonanza Ledge II operations.

 Proceeds of $21.1 million were received from disposition of certain investments.

 The cash position of the Company as at March 31, 2022 was approximately $56.8 million.

Highlights - Subsequent to the period end

 On April 13, 2022 the Company announced drilling results from its 2021 exploration and category conversion drill campaign on its Cariboo Gold Project.

 On April 26, 2022, the shareholders and board of directors of the Company approved a share consolidation on a 3 for 1 basis, subject to receipt of necessary approvals. The share consolidation was completed, effective May 4, 2022.

Management and Board Composition

The Board of Directors of Osisko Development includes as elected at the Company's annual and special meeting of shareholders on April 26, 2022: Sean Roosen (Chair); Charles E. Page (Lead Director); Michele McCarthy; Duncan Middlemiss; Marina Katusa; and Éric Tremblay. Osisko Gold Royalties Ltd ("Osisko Gold Royalties") has the right to appoint nominees to the board of Osisko Development; such number of nominees will decrease if, as and when Osisko Gold Royalties decreases its ownership in Osisko Development over time.

Management of Osisko Development includes Sean Roosen (Chair and Chief Executive Officer); Chris Lodder (President); Luc Lessard (Chief Operating Officer); Alexander Dann (Chief Financial Officer & Vice President Finance); Andre Le Bel (Corporate Secretary); François Vézina (Senior Vice President, Project Development, Technical Services and Environment); Martin Ménard (VP, Engineering and Construction), Chris Pharness (Vice President, Sustainable Development); and Maggie Layman (Vice President, Exploration).

Uncertainty due to COVID-19

The Company may face risks related to health epidemics and other outbreaks of communicable diseases, which could significantly disrupt its operations and may materially and adversely affect its business and financial conditions. To that end, the Company's operations could be adversely impacted by the effects of the coronavirus (COVID-19) or other epidemics.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

The extent to which COVID-19 impacts the Company's business, including its operations and the market for its securities, will depend on future developments, which are highly uncertain and cannot be predicted at this time, and include the duration, severity and scope of the outbreak and the actions taken to contain or treat the COVID-19 outbreak. In particular, the continued spread of COVID-19 globally could materially and adversely impact the Company's business including without limitation, employee health, workforce productivity, increased insurance premiums, continued limitations on travel, the availability of industry experts and personnel, restrictions to its drill program and/or the timing to process drill and other metallurgical testing, and other factors that will depend on future developments beyond the Company's control, which may have a material and adverse effect on the its business, financial condition and results of operations.

There can be no assurance that the Company's personnel or its contractors' personnel will not be impacted by these pandemic diseases and ultimately see its workforce productivity reduced or incur increased safety and medical costs / insurance premiums as a result of these health risks.

Exploration and Evaluation / Mining Development Activities

Cariboo Gold Project

On November 21, 2019, Osisko Gold Royalties acquired the Cariboo Gold Project located in the historical Cariboo Mining District of central British Columbia, Canada, through the acquisition of Barkerville. The project was part of the Osisko Gold Royalties contributed assets that created the Company on November 25, 2020.

Exploration activities and updated mineral resource estimate

A total of 152,500 meters were drilled in 2021 on the Cariboo Gold Project as part of the exploration and category conversion drill program to support the ongoing feasibility study. The drilling commenced in January 2021 and was completed in October with up to 12 diamond drill rigs utilized during the campaign. By deposit, a total of 61,000 meters were drilled at Shaft, 49,500 meters at Valley, and 30,000 meters at Lowhee and 10,700 meters at Mosquito. An additional 1,500 meters were drilled at QR. The drilling confirmed down dip extensions of mineralized vein corridors and high-grade intercepts within the current mineral resource estimate. The mineral resource estimate incorporates eight deposit areas; the Shaft and Mosquito Creek deposits on Island Mountain, Cow and Valley deposits on Cow Mountain, and Lowhee, KL, BC Vein and Bonanza Ledge deposits on Barkerville Mountain at a cut-off grade of 2.1 g/t Au ("grams per metric tonne"). The objective of the 2021 exploration and delineation program is to convert inferred resources to indicated resources to support reserves for the ongoing feasibility study and to increase overall ounces in the inferred and indicated resource categories by exploring the depth and strike potential of the known deposits.

The Company recommenced drilling in Q1, 2022 with one diamond drill rig at Lowhee Zone to further delineate vein corridors. In Q1 2022, the Company announced drilling results from the 2021 exploration and category conversion diamond drill program campaign which included assays on Lowhee Zone (Barkerville Mountain).

Further details on the exploration drilling results can be viewed in the Company's press releases filed on SEDAR (www.sedar.com) dated January 12, 2022, March 29, 2022, March 30, 2022 and April 13, 2022.

In October 2020, Osisko Gold Royalties announced an updated mineral resource estimate for the Cariboo Gold Projectdescribed in the following chart below.. Resource grades have some built-in dilution integrated through the process of modelling of "vein corridors" as opposed to individual veins. Metallurgical testing has shown that the mineralization can be effectively upgraded by flotation and x-ray transmission ore-sorting, owing to the strong association of gold with pyrite. The concentrates can then be processed at the wholly-owned QR mill.

The mineral resource estimate is built upon nearly 500,000 meters of core from the 2015 to 2019 drill campaigns, and historically verified drill data using a total of 2,218 drill holes. A strong understanding of the controls of mineralization enabled Osisko Development's technical team to construct a mineral resource estimate constrained by lithology, alteration, structure and mineralization.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Cariboo Gold Project Mineral Resource Estimate at 2.1 g/t Au cut-off

Category Deposit Tonnes
('000)
Grade
(Au g/t)
Ounces
('000)
Measured Bonanza Ledge 240 5.10 39
Indicated Bonanza Ledge 86 3.88 11
BC Vein 1,192 4.68 179
KL 393 3.32 42
Lowhee 381 3.72 46
Mosquito 783 5.95 150
Shaft 10,889 4.70 1,644
Valley 1,744 4.49 251
Cow 5,734 4.55 838
Total Indicated Resources 21,202 4.64 3,161
Inferred BC Vein 472 3.94 60
KL 1,926 2.93 181
Lowhee 1,032 3.16 105
Mosquito 1,348 4.79 208
Shaft 7,913 4.25 1,081
Valley 5,683 3.95 722
Cow 3,276 3.45 364
Total Measured and Indicated Resources 21,442 4.64 3,200
Total Inferred Resources 21,650 3.91 2,721

Mineral Resource Estimate notes:

1. The independent and qualified persons for the mineral resource estimates, as defined by NI 43-101, are Christine Beausoleil, P.Geo., and Carl Pelletier, P.Geo. (InnovExplo Inc.). The effective date of the mineral resource estimate is October 5, 2020.

2. These mineral resources are not mineral reserves as they do not have demonstrated economic viability.

3. The mineral resource estimate follows CIM Definition Standards.

4. A total of 334 vein zones were modelled for the Cow Mountain (Cow and Valley), Island Mountain (Shaft and Mosquito), Barkerville Mountain (BC Vein, KL, and Lowhee) deposits and one (1) gold zone for Bonanza Ledge. A minimum true thickness of 2.0 m was applied, using the grade of the adjacent material when assayed or a value of zero when not assayed.

5. The estimate is reported for a potential underground scenario at a cut-off grade of 2.1 g/t Au. The cut-off grades were calculated using a gold price of US$1,350 per ounce.

The vein corridors comprising the Cariboo gold resource estimate are modelled to an average depth of 350 meters and exploration drilling has intersected mineralization at depths below 700 meters from surface. The Company will continue with the systematic exploration to further define and expand the known zones and develop greenfield targets on the remaining land package. The Company intends to drill from the underground infrastructure once permitting and construction of an exploration drift is complete. The robust 3D litho-structural model that defines the controls of mineralization allows the exploration team to define additional mineral resources much more efficiently, with a high hit rate (80% of the drill holes intersect potentially economic mineralization), lowering the cost per discoverable ounce. This model can be applied to the remaining 65 kilometers of strike.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

For more information, refer to the NI 43-101 Technical Report entitled "NI 43-101 Technical Report and Mineral Resource Estimate for the Cariboo Gold Project, British Columbia, Canada" (the "Technical Report") filed on SEDAR (www.sedar.com) on November 17, 2020 under Osisko Gold Royalties' profile.

Permitting and Environmental Assessment ("EA") Process

On October 27, 2021 the Province of British Columbia, Lhtako Dené First Nation and the Company announced the approval of amendments to Mines Act Permits M-238 and M-198 allowing for the expansion of the existing Bonanza Ledge II underground mine. These amendments support the ongoing employment of 127 workers at the mine. The expansion of the Bonanza Ledge II Project allows for continuity of certain mining activities while the Cariboo Gold Project environmental assessment proceeds.

Osisko Development started an Environmental Assessment Process in the spring of 2019 for the Cariboo Gold Project. The project has completed several milestones furthering to obtain the EA Certificate planned in the fourth quarter of 2022. The following is a summary of the steps completed and to be completed to obtain the EA Certificate that will grant the Company the right to apply for the permit of the Cariboo Gold Project

The following is summary of completed and further steps required towards EA certification targeted in Q4 2022:

 Early Engagement - Completed, initial project description and summary of engagement

 EA Readiness Decision - Completed, detailed project description, received notice of consent

 Processing planning - Completed

 Application Development & Review - Application submitted and under review

 Effects of Assessment

 Recommendation

 Decision

 Post Certificate

*CGP refers to the Cariboo Gold Project.

*EAO refers to Environmental Assessment Office


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Bonanza Ledge II Project

The Bonanza Ledge II project is a small scale and short life project, which allows the Company to facilitate (i) opportunities for managing historical reclamation obligations inherited by the Company, (ii) hands on training and commissioning of the Company's mining and processing complex for the Cariboo Gold Project and (iii) maintain the economic and social benefits for the First Nations partners and communities. Operating costs of $7.1 million, not attributable to the sales of refined precious metals sold during the year, have been recognized in other operating costs in the consolidated statement of loss. The Bonanza Ledge II project is anticipated to be mined and all mineralized material processed by the end of the third quarter in 2022.

2022 Objectives

Regional Greenfield Exploration is planned for Q2 and Q3 2022 to continue the geochemical sampling and geological mapping of the Quesnel Terrane properties with focus on the Cayenne Property.

The Company started mining operations at its Bonanza Ledge II project in the first quarter of 2021 as it was granted in Q1 2021, a notice of departure from the Ministry of Energy, Mines and Low Carbon Innovation of British Columbia. The Company announced on October 27, 2021 receipt of the final permits for the Bonanza Ledge II mine and QR mill. The Cow Mountain Underground Bulk Sample Permit was received in July 2021. The underground portal was completed in Q4 2021 and the Company has commenced the bulk sample activities.

San Antonio Gold Project

The San Antonio gold project is a past-producing oxide copper mine. In 2020, following the acquisition, the Company concentrated its efforts in obtaining the required permits and amendments to the permits to perform its activities. The Company has filed preventive reports for the processing of the gold stockpile on site and for a drilling program for the Sapuchi, Golfo de Oro and California zones.

The Company also initiated the following activities:

o Commencement of the Environmental Impact Manifest (or Manifestacion de Impacto Ambiental ("MIA")) ;

o A baseline study;

o Awarding the Engineering, Procurement, Construction, Management contract for the process of the stockpile

In 2021, Sapuchi Minera focused on various activities that pertain to permitting, local community relations, exploration drilling and preparations towards the processing of the mineralized material stockpile on site.

Permitting

The Company continued the various permitting activities started in 2020. These activities consist of obtaining the permits for the MIA and the change of Use of Land while continuing the work required to complete the environmental baseline study. Applications were submitted for four new mining claims, Sapuchi E-82/40881, Sapuchi 2 E-82/40882, Sapuchi 3 E-82/40883, Sapuchi 4 E-82/40888.

Exploration Program

A 2 phase 45,000-meter drilling campaign was initiated during Q2 2021. The objective of the drill program was to conduct exploration and resource drilling at a spacing of 25 meters and historic drilling validation for the three main target areas; Sapuchi, California and Golfo de Oro. A total of 27,900 meters were drilled in 177 holes in 2021, representing 62% of the budgeted drill plan. The Company anticipates exploration potential to expand both oxide and sulphide resources.

Stockpile

In Q1 2022, Sapuchi Minera commenced processing its stockpile inventory through sodium cyanide heap leach pads ("heap leach pad") and carbon-in-column processing plant. As of March 31, 2022, the Company had loaded carbon concentrate ready for refining and expects to realize its first gold sales in May of 2022. The Company cautions that the decision to process the stockpile at Sapuchi Minera has been taken without the benefit of a feasibility study, or reported mineral resources or mineral reserves, demonstrating economic and technical viability, and, as a result there may be increased uncertainty of achieving any particular level of recovery of material or the cost of such recovery. The Company cautions that historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will continue as anticipated or at all or that anticipated production costs will be achieved. The failure to continue production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and potential profitability. The Company cautions that historically, such projects have a much higher economic or technical risks. In continuing current operations at Sapuchi Minera, the Company will not be basing its decision to continue such operations on a feasibility study, or reported mineral resources or mineral reserves demonstrating economic and technical viability. 


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

2022 Objectives

Sapuchi Minera will continue to focus its efforts on stockpile processing and continuing to advance its current permit applications. With the completion of the 2021 drill program, the Company intends to announce the results of a mineral resource estimate for the project by the end of Q2 2022.

Prospective Tintic Project

Pursuant to the terms of the Transaction, Osisko Development will acquire 100% of Tintic through the purchase of: (i) IG Tintic's direct 75% ownership in Tintic; and (ii) all issued and outstanding stock of Chief Consolidated Mining Company ("Chief"), ("Chief Stock") from Ruby Hollow and other stockholders of Chief. Immediately following the closing of the Transaction, Chief will complete a merger with a newly-formed subsidiary of the Company (the "Merger"), such that, following completion of the Merger, Chief will be wholly owned by the Company. At closing, Osisko Development will make payments to the Vendors in the aggregate amount of approximately US$177 million (the "Closing Payments"), comprised of: (i) cash payments of approximately US$54 million, and (ii) the issuance of 35,099,611 common shares (11,699,870 post share consolidation) of the Company (the "Shares") for an aggregate value of approximately US$123 million.

A number of Tintic shareholders representing approximately 32.5% of the total ownership have entered into 12-month lock-up agreements, which provide that: (i) 33% of the Shares will be freely tradeable on the four-month anniversary of the Closing date of the Transaction (the "Closing Date"); (ii) an additional 33% of the Shares will be freely tradeable on the eight-month anniversary of the Closing Date; and (iii) the remaining 34% of the Shares will be freely tradeable on the first year anniversary of the Closing Date.

In addition to the Closing Payments, the Company will pay the vendors: (i) deferred payments of US$12.5 million payable in equal instalments annually over five years in cash or Shares at Osisko Development's election; (ii) two 1% NSR royalty grants, each with a 50% buyback right in favour of Osisko Development for US$7.5 million which is exercisable within 5 years; (iii) a right to receive the financial equivalent of 10% of the net smelter returns from stockpiled mineralized material extracted from Trixie since January 1, 2018 and sitting on surface; (iv) the set-off of a US$5 million loan owed to Osisko Development; and (v) US$10 million contingent upon commencement of production at the Burgin Mine.

The Company, through a wholly-owned subsidiary, has entered into a non-binding metals stream term sheet ("Stream") with a wholly-owned subsidiary of Osisko Gold Royalties Limited. The proceeds from the Stream will be used to fund a portion of the cash consideration payable on closing of the Transaction. The key terms of the Stream include:

 An upfront cash payment totaling at least US$20 million and up to US$40 million.

 In the event that the full amount of US$40 million is drawn, the Company will deliver a maximum of 5% of all metals produced from the Tintic property up to a maximum of 53,400 ounces of refined gold (the "Threshold Stream"). Thereafter, the Company will deliver 4.0% of all metals produced (the "Tail Stream").

 If the Company elects to draw less than US$40 million, the Threshold Stream and Tail Stream shall be reduced on a pro rata basis.

 The Company will receive ongoing payments for refined metal delivered in conjunction with the Stream equal to 25% of the spot prices.

 The Stream is anticipated to close subsequently to the close of the Transaction.

The Transaction is also subject to normal course regulatory approvals and the satisfaction of customary closing conditions, including the execution of ancillary agreements and acceptance of the TSX-V. The IG Tintic and Chief transactions are inter-conditional, meaning that closing of each transaction will happen simultaneously and one cannot close without the other. Subject to the satisfaction of these conditions and securing financing, Osisko Development expects the Transaction to close in Q2 2022.

2022 Objectives

It is expected that the production from the Trixie Mine will complement the near and medium-term development plans for the Cariboo and San Antonio projects. In the near term, the Company is proposing technical work at Trixie Mine with the objective that it will justify further development.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

 Equity Investments

The Company's assets include a portfolio of shares, mainly of Canadian publicly traded exploration and development mining companies. The Company may, from time to time and without further notice except as required by law or regulations, increase or decrease its investments at its discretion.

During the three months ended March 31, 2022, the Company acquired equity investments through the issuance of convertible debt resulting in a total cash outlay of $4.4 million (US$3.5 million) and divested of investments generating gross proceeds of $21.1 million and realized gains of $12 million.

Fair value of marketable securities

The following table presents the carrying value and fair value of the remaining investments in marketable securities (excluding warrants and convertible debt) as at March 31, 2022 and December 31, 2021 (in thousands of dollars):

    March 31, 2022     December 31, 2021  
                         
Investments   Carrying     Fair value(ii)     Carrying     Fair  
    value(i)           value(i)     value(ii)  
    $     $     $     $  
Associates   12,633     39,628     12,964     44,820  
Other   32,156     32,156     49,516     49,516  
    44,789     71,784     62,480     94,336  

(i) The carrying value corresponds to the amount recorded on the consolidated balance sheet, which is the equity method for investments in associates and the fair value for the other investments, as per IFRS 9, Financial Instruments.

(ii) The fair value corresponds to the quoted price of the investments on a recognized stock exchange for the respective period.

Main Investments

The following table presents the main investments of the Company in marketable securities as at March 31, 2022:

 

 

Number of

 

 

Company

 

Shares Held

 

Ownership

 

 

 

 

%

Falco Resources Limited (associate)

 

46,885,240

 

17.3

Falco Resources Limited ("Falco")

Falco's main asset is the Horne 5 gold project, for which the summarized results of an updated feasibility study were released on March 24, 2021.

In June 2021, Falco entered into an agreement in principle with Glencore Canada Company establishing the framework of the terms and conditions (the "Agreement in Principle") pursuant to which the parties will enter into the Principal Operating License and Indemnity Agreement (the "OLIA") in order to enable Falco to develop and operate its Horne 5 project. The Agreement in Principle outlines the terms to be included in the OLIA which will establish the framework to govern Falco's development and operation of its Horne 5 project.

Falco also entered into an option agreement granting Falco the sole and exclusive right to acquire an undivided one hundred percent ownership interest in the Norbec and Millenbach sites located in the vicinity of the City of Rouyn-Noranda. The properties will serve as the tailings management facilities and are located at a former tailings facility (the old Norbec Mine), which has already been impacted by historical mining activities and is situated approximately 11 kilometres from the Horne 5 project's mining complex site. The use of this previously impacted site is consistent with Falco's environmental, social and governance strategies.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

As at March 31, 2022, the Company holds 46,885,240 common shares representing a 17.3% interest in Falco (17.3% as at December 31, 2021). The Company concluded that it exercises significant influence over Falco and accounts for its investment using the equity method.

Sustainability Activities

The Company views sustainability as a key part of its strategy to create value for its shareholders and other stakeholders.

The Company focuses on the following key areas:

> Promoting the mining industry and its benefits to society;

> Maintaining strong relationships with Indigenous nations, the Federal, Provincial and Municipal governments where the Company has activities and projects;

> Supporting the economic development of regions where it operates;

> Promoting diversity throughout the organization and the mining industry; and

> Encouraging investee companies and our contractors to adhere to the same areas of focus in sustainability.

The following are a few highlights from each of our operating sites:

Barkerville

 Positive relationship with Lhtako Dené Nation since 2015. Agreements include engagement protocol (signed in 2016), relationship agreements (2016) and life of project agreement (2020);

 Positive relationship with Xatsull First Nation and with Williams Lake Indian Band since 2016 and 2017 respectively;

 Positive relationship with the District of Wells in British Columbia since 2016 and a Memorandum of Understanding signed in early 2022 to facilitate discussions for a project agreement;

 Open and transparent dialogue with the Ministry of Energy Mines and Low Carbon Innovation and The Ministry of the Environment and Climate Change Strategy to ensure positive relations;

 Installation of a water treatment plant to treat contact water and effluent completed;

 Of the historic 300,000 tonne PAG pile inherited, approximately 250,000 tonnes remaining;

 Open and transparent dialogue with the Ministry Of Energy and Mines and The Ministry of the Environment to ensure positive relations;

 Reclamation work started on the Mosquito Creek old mine site;

 Initiation of the second Sustainable Workforce Initiative for underground miner training to provide skills training to support a local workforce;

 Funding provided to local organizations within the Wells and Barkerville communities to support various initiatives;

 The Company in collaboration with Lhtako Dené Nation, Federal Fisheries and Forest, Land and Natural Resource Operations, initiated the Bowron River Salmon Enhancement Project; and

 The Company in collaboration with Lhtako Dené Nation, Federal and Provincial Government, Towns of Barkerville and Bowron, initiated the Wells Gray Southern Mountain Caribou Project.

Sapuchi Minera

 Reached a long-term agreement with Eijdo San Antonio, one of the primary impacted local communities:

 Commencement of the MIA; and

 An environmental baseline study was completed.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Financings

Current year financings

2022 Brokered private placement

On March 2, 2022, the Company completed a Brokered Private Placement issuing 9,525,850 Brokered Units at a price of $4.45 for gross proceeds of $42.4 million and 13,732,900 Brokered Subscription Receipts at a price of $4.45 for gross escrowed proceeds of $61.1 million. Each Brokered Unit is comprised of one common share and one warrant, with each warrant entitling the holder to purchase one additional common share at a price of $7.60 per common share for a period of 5 years following the closing date of the Brokered Private Placement. Each Brokered Subscription Receipt will entitle the holder to receive, upon the satisfaction of the Brokered Escrow Release Condition (as defined below), and without payment of additional consideration, one Brokered Unit. Issuance costs related to the Brokered Units issued amounted to $2.1 million and have been allocated against the common shares and warrants issued. Issuance costs of $1.3 million related to the issuance of Brokered Subscription Receipts are recognized as deferred financing fees in the statements of financial position.

The fair value of the warrants issued was evaluated using the residual method and were valued at $0.6 million, net of issuance costs.

The Brokered Subscription Receipts will be automatically converted into Units, and the escrowed proceeds and interest earned thereon (less Underwriters' Fee payable in respect of the Subscription Receipts) will be released to the Company, provided that on or before June 15, 2022, the following Brokered Escrow Release Conditions have been satisfied: (a) the completion, satisfaction or waiver of all conditions precedent to the Tintic acquisition in accordance with the Tintic definitive agreements and all regulatory approvals; and (b) the Company and the Underwriters, having delivered a completion notice and direction to the Escrow Agent in accordance with the terms of the Subscription Receipt Agreement confirming that the condition set forth in (a) above has been met. The Brokered Private Placement is subject to regulatory approvals, including TSX-V approval.

2022 Non-Brokered private placements

The Company completed three tranches of the Non-Brokered Private Placements, issuing Non-Brokered Subscription Receipts at a price of USD$3.50 (i) the first tranche closed on March 4, 2022 issuing 24,215,099 Non-Brokered Subscription Receipts for gross proceeds of USD $84.8 million (CAD $108.1 million) (ii) the second tranche of the Non- Brokered Private Placement closed on March 29, 2022 issuing 9,365,689 Non-Brokered Subscription Receipts for gross proceeds of USD $32.8 million (CAD $41 million), and (iii) the third tranche of the Non-Brokered Private Placement closed on April 21, 2022 issuing 512,980 Non-Brokered Subscription Receipts for gross proceeds of USD $1.8 million (CAD $2.2 million).

Each Non-Brokered Subscription Receipt will entitle the holder to receive, upon the satisfaction of the Non-Brokered Escrow Release Condition (as defined below), and without payment of additional consideration, one Unit. Each Unit is comprised of one common share and one common share purchase warrant, with each warrant entitling the holder to purchase one additional common share at a price of USD$6.00 per common share for a period of 5 years from the date of issue. Issuance costs incurred as of March 31, 2022 amounted to $1.4 million related to the issuance of Non-Brokered Subscription Receipts are recognized as deferred financing fees in the statements of financial position.

The Non-Brokered Subscription Receipts will be automatically converted into Units, and the escrowed proceeds and interest earned thereon will be released to the Company, upon listing of the Company's common shares on the New York Stock Exchange on or before June 15, 2022 (the "Non-Brokered Escrow Release condition"). The Non-Brokered Private Placement is subject to regulatory approvals, including TSX-V approval.

Escrowed proceeds (net of Broker commissions paid) of $206.5 million from both the Brokered and Non-Brokered Private placements are reflected as restricted cash and a corresponding subscription receipt liability of $208 million has been recognized in the statement of financial position as of March 31, 2022.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Prior year financings

In 2020 and 2021, the Company raised gross proceeds of approximately $253.7 million. The following summarizes each of the financing events:

On March 18, 2021, the Company announced the completion of a bought deal brokered private placement for aggregate gross proceeds of approximately $33.6 million which included partial exercise of the underwriters option and consisting of; (i) 2,055,742 flow-through ("FT") Share at a price of $9.05 per FT Share and (ii) 1,334,500 Charity FT Share at a price of $11.24 per Charity FT Share. The gross proceeds will be used by the Company to incur eligible Canadian exploration expenses that will qualify as flow-through mining expenditures as such terms are defined in the Income Tax Act (Canada) related to the Cariboo Gold Project and other exploration assets of the Company located in British Columbia.

On February 5, 2021, the Company closed the second and final tranche of the non-brokered private placement for 1,515,731 units for gross proceeds of $11.2 million. Each unit consists of one common share of the Company and one- half of one common share purchase warrant of the Company, which each whole warrant entitling the holder to acquire one common share of the Company at a price of $10.00 per share on or prior to December 1, 2023;

On January 8, 2021, the Company closed the first tranche of a non-brokered private placement of 9,346,464 units for gross proceeds of $68.6 million. Each unit consists of one common share of the Company and one-half of one common share purchase warrant of the Company, which each whole warrant entitling the holder to acquire one common share of the Company at a price of $10.00 per share on or prior to December 1, 2023.

On December 30, 2020, the Company closed a bought deal Private Placement of 5,367,050 units of the Company at a price of $7.50 per units for gross proceeds of $40.2 million. Each unit consists of one common share of the Company and one-half of one common share purchase warrant of the Company, which each whole warrant entitling the holder to acquire one common share of the Company at a price of $10.00 per share on or prior to December 1, 2023. Fees were paid by the Company to the underwriters and other issuance costs were paid by the Company in connection with the December 2020 bought deal Private Placement. The proceeds of the December 2020 bought deal Private Placement are to be used to further develop the Cariboo Gold Project, advance the San Antonio gold project towards production and for general corporate purposes.

On October 29, 2020, prior to the closing of the RTO, the Company closed an initial bought deal Private Placement of 13,350,000 units of the Company at a price of $7.50 per Common Share for gross proceeds of $100.1 million. Each unit consists of one common share of the Company and one-half of one common share purchase warrant of the Company, which each whole warrant entitling the holder to acquire one common share of the Company at a price of $10.00 per share on or prior to December 1, 2023. Fees were paid by the Company to the underwriters and other issuance costs were paid by the Company in connection with the October 2020 bought deal Private Placement. The proceeds of the October 2020 bought deal Private Placement are to be used to further develop the Cariboo Gold Project, advance the San Antonio gold project towards production and for general corporate purposes.

Summary of Use of Proceeds from financings

As at March 31, 2022 (in millions of dollars)

Description Prior
Disclosure
Actual
Spent
Remaining
March 2, 2022 - Brokered Units      
Cariboo Gold project and G&A & Working Capital March 18, 2021 - $40.5 $nil $40.5

Cariboo Gold project, eligible flow-through expenditures February 5, 2021

$33.6 $31.2 $2.4
Cariboo Gold project, San Antonio gold project and G&A January 8, 2021 $11.2  $11.2 Nil

Cariboo Gold project, San Antonio gold project and G&A December 30, 2020

$68.6 $68.6  Nil
Cariboo Gold project, San Antonio gold project and G&A October 29, 2020 $40.2  $40.2 Nil
Cariboo Gold project, San Antonio gold project and G&A $100.1 $100.1 $Nil

 


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Selected Financial Information

(In thousands of dollars, except figures for ounces and amounts per ounce and per share) (1)

    Three months ended  
    March 31,     March 31,  
    2022     2021  
    $     $  
             
Revenues   9,167     -  
Cost of sales   (9,167 )   -  
Operating loss   (23,173 )   (5,201 )
Net loss   (22,332 )   (3,701 )
Basic and diluted net loss per share (2)   (0.49 )   (0.09 )
             
Cash flows used in operating activities   (16,896 )   (9,704 )
Cash flows used in investing activities   3,314     (21,708 )
Cash flows provided by financing activities   37,137     35,613  
             
Weighted average shares outstanding
    Basic and diluted (2)
  45,433,489     42,955,117  

As at,   March 31, 2022     December 31, 2021     December 31, 2020     December 31, 2019  
    $     $     $     $  
                         
Total assets   937,032     703,124     802,144     397,257  
                         
Total Liabilities   (332,708 )   (118,922 )   (102,578 )   (42,243 )

(1) Unless otherwise noted, financial information is in Canadian dollars and prepared in accordance with IFRS.

(2) As a result of the net loss in each period, all potentially dilutive common shares are deemed to be antidilutive and thus diluted net loss per share is equal to the basic net loss per share. The numbers for the average basic and diluted shares outstanding for all the periods presented in the consolidated statements of loss and comprehensive loss have been adjusted to reflect the effect of the 3:1 share consolidation that took place on May 4, 2022.

Results of Operations

Three months ended March 31, 2022 and 2021

 Operating loss of $23.1 million, compared to $5.2million in Q1 2021;

 Net loss of $22.3 million, compared to $3.7 million in Q1 2021.

 Net cash flows used in operating activities of $16.9 million compared to $9.7 million in Q1 2021;

 Net cash proceeds from investing activities of $3.3 million compared to cash used in investing activities of $21.7 million in Q1 2021.

In Q1 2022, the Company incurred an operating loss of $23.1 million compared to $5.2 million in Q1 2021. This increase is primarily due to the operating activities at the Bonanza Ledge II project, partially offset by $9.2 million in revenues earned, and due to the operating activities at the Sapuchi stockpile project. In Q1 2021 the activities at Bonanza Ledge II were to ramping up and Sapuchi had not started processing its stockpile.

In Q1 2022, the Company incurred a net loss of $22.3 million compared to $3.7 million in 2021. The increase in net loss is primarily due to the reasons noted above.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

The net cash flows used in operating activities in the first quarter of 2022 amounted to $16.9 million compared to $9.7 million in the first quarter of 2021, mainly as a result of cash used in the operating activities at its Bonanza Ledge II project and Sapuchi stockpile projects.

Increase in cash proceeds from investing activities of $3.3 million compared to cash used in investing activities of $21.7 million in Q1 2021 is primarily due to the increase in proceeds from disposal of certain portfolio investments of $6.1 million and reduction in mining development activities of $18.9 million.

In the first quarter of 2022, the Company successfully raised and closed $42.3 million in brokered private placements, see Financing section.

Consolidated statements of loss

The following table presents summarized statements of loss for the three months ended March 31, 2022 and 2021 (in thousands of dollars):

      Three months ended  
      March 31,  
      2022     2021  
      $     $  
               
Revenue (a)   9,167     -  
Operating expenses              
Cost of sales (a)   (9,167 )   -  
Other operating costs (b)   (15,246 )   -  
General and administrative (c)   (7,807 )   (4,864 )
Exploration and evaluation     (120 )   (337 )
               
Operating loss     (23,173 )   (5,201 )
               
Other income, net of other expense     810     318  
               
Loss before income taxes     (22,363 )   (4,883 )
               
Income tax expense     31     1,182  
               
Net loss     (22,332 )   (3,701 )

(a) The Company recognized $9.2 million in revenues from selling recovered gold and silver from its Bonanza Ledge II Project. The related cost of sales in relation to the gold and silver sold of $9.2 million was also recognized in the consolidated statement of loss for the three months ended March 31, 2022 in accordance with IAS 2, Inventories at the net realizable value of inventory sold.

(b) Other operating costs of $15.2 million were recognized in the three months ended March 31, 2022. These costs relate to the continuing operating activities at the Bonanza Ledge II Project and Sapuchi's stockpile operations.

(c) General and administrative expenses increased to $7.8 million in Q1 2022 compared to $4.8 million in Q1 2021, of which $2 million of the increase relates to expenses incurred in relation to pending transactions, including the proposed Tintic Acquisition.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Selected Quarterly Information

Selected financial results for the previous quarters reported, which have been prepared in accordance with IFRS are shown in the table below:

In thousands of dollars,   2022     2021     2021     2021     2021     2020  
except per share amounts   Q1     Q4     Q3     Q2     Q1     Q4  
Net loss   (22,332 )   (56,452 )   (31,745 )   (41,404 )   (3,701 )   (7,771 )
Net loss per share   (0.49 )   (1.27 )   (0.71 )   (0.93 )   (0.09 )   (0.20 )
Net loss diluted per share   (0.49 )   (1.27 )   (0.71 )   (0.93 )   (0.09 )   (0.20 )

The numbers for the average basic and diluted shares outstanding for all the periods presented in the consolidated statements of loss and comprehensive loss have been adjusted to reflect the effect of the 3:1 share consolidation effective May 4, 2022.

Significant losses incurred in Q2, Q3 and Q4 2021, where driven by impairment of assets related to the Company's Bonanza Ledge Phase II project, Sapuchi stockpile project and exploration and evaluation assets.

Liquidity and Capital Resources

As at March 31, 2022, the Company's working capital was $41.3 million, which included cash of $56.8 million, and, the Company incurred a loss of $22.3 million for the period ended March 31, 2022. With the pending 2022 financings (refer to Financing section), management believes that the Company will have sufficient funds to meet its obligations and planned expenditures for the ensuing twelve months as they fall due. In assessing whether the going concern assumption is appropriate, management considers all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period. In order to execute on its planned activities, the Company will be required to close on the announced financings, including all required regulatory approvals or to secure additional financing in the future, which may be completed in several ways including, but not limited to, a combination of selling investments from its existing portfolio, project debt finance, offtake or royalty financing and other capital market alternatives. Failure to close on the announced financings within the expected timelines or at all, may impact and/or curtail the planned activities for the Company, which may include, but are not limited to, the suspension of certain development activities and the disposal of additional investments to generate liquidity.

Significant variations in the liquidity and capital resources for the three months ended March 31, 2022 are explained below under the Cash Flows section. The Company is dependent upon raising funds in order to fund future capital expenditures and development programs. See the Risk and Uncertainties section of this MD&A for more details.

Cash Flows

The following table summarizes the cash flows (in thousands of dollars):

    Three months ended  
    March 31,  
    2022     2021  
    $     $  
Cash flows            
    Operations   (17,268 )   2,422  
    Working capital items   372     (12,126 )
    Operating activities   (16,896 )   (9,704 )
    Investing activities   3,314     (21,708 )
    Financing activities   37,137     35,613  
Decrease in cash before effects of exchange rate changes on cash   23,555     4,201  
Effects of exchange rate on changes on cash   (161 )   (648 )
Increase in cash   23,394     3,553  
Cash - beginning of period   33,407     197,427  
Cash - end of period   56,801     200,980  


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

 Operating Activities

Cash flows used in operating activities in Q1 2022 amounted to $16.9 million compared to $9.7 million in 2021. Refer to the Results of Operations section above.

Investing Activities

Cash inflows in investing activities amounted to $3.3 million in Q1 2022 compared to cash outflows used in investing activities of $21.7 million in Q1, 2021. Refer to Results of operations section above.

Financing Activities

Cash flows provided by financing activities amounted to $37.1 million in Q1 2022 compared to cash flows provided by financing activities of $35.6 million in 2021. The total financing activities in Q1 2022 include 40.3 million in net proceeds raised from the Brokered Private Placement and $3.9 million of mining equipment financing partially offset by the payment of lease liabilities of $5 million and $1.4M in deferred financing fees related Q1 2022 financings held in escrow (refer to Financing section).

Segmented Disclosure

The Company operates under a single operating segment, being the acquisition, exploration and development of mineral properties.

The assets related to the exploration, evaluation and development of mining projects are located in Canada (Barkerville) and in Mexico (Sapuchi), and are detailed as follow as at March 31, 2022 (in thousands of dollars):

          March 31, 2022  
    Canada     Mexico     Total  
    $     $     $  
Other assets (non-current)   4,264     12,888     17,152  
Mining interest   404,886     83,904     488,790  
Property, plant and equipment   59,360     22,281     81,641  
Exploration and evaluation assets   3,640     -     3,640  
Total non-current assets   471,150     119,073     591,223  


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 


    Canada     Mexico     Total  
    $     $     $  
For the three months ended March 31, 2022                  
Revenues   9,167     -     9,167  
Cost of sales   (9,167 )   -     (9,167 )
Other operating costs   (7,372 )   (7,874 )   (15,246 )
General and administrative expenses   (6,657 )   (1,150 )   (6,657 )
Exploration and evaluation   (120 )   -     (120 )
Impairment of assets   -     -     -  
Operating Loss   (14,149 )   (9,024 )   (23,173 )

Related party transactions

During the three months ended March 31, 2022, the Company incurred expenses of $1.4 million respectively for administrative, legal and technical expenses charged from associates, primarily reflected in the consolidated statement loss.

During the three months ended March 31, 2022, the Company contributed a donation of $0.5 million to Barkerville Heritage Trust, where an officer of Osisko Development holds a position on the board of directors.

As of March 31, 2022, amounts receivable from associates amounted to $0.01 million and amounts payable to associates totalled $0.5 million.

Contractual Obligations and Commitments

As of March 31, 2021, the Company had the following minimum contractual obligations and commitments (in thousands of dollars):

    Total1     less than 1 year     1- 2 years     1- 2 years  
Purchase obligations   11,945     11,945     -     -  
Capital commitments   35,512     35,512     -     -  
Total   47,457     47,457     -     -  

(1) The timing of certain capital payments are estimated based on the forecasted timeline of the projects. The majority of the commitments can be canceled at the discretion of the Company with little or no financial impact.

As of March 31, 2022, the Company's total lease obligations amounted to $3.3 million, of which $2.5 million is payable within 1 year.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Off-balance Sheet Items

There are no significant off-balance sheet arrangements, other than contractual obligations and commitments mentioned above.

Risks and Uncertainties

The Company's activities, being the acquisition, exploration, and development of mineral properties in Canada and worldwide, is speculative and involves a high degree of risk. Certain factors, including but not limited to the ones below, could materially affect the Company financial condition and/or future operating results, and could cause actual events to differ materially from those described in forward-looking statements made by or related to the Company. Refer to the "Cautionary Note Regarding Forward-Looking Statements" for more information. The reader should carefully consider these risks as well as the information disclosed in the Company's consolidated financial statements.

There are important risks which management believes could impact the Company's activities. For information on risks and uncertainties, please also refer to the Risk Factors section of the Filing Statement filed by the Company on November 23rd 2020 and the Company's Annual Information Form filed on April 21, 2022, that can be found on SEDAR (www.sedar.com) under Osisko Development's issuer profile.

Osisko Development's operations are subject to financing risks and additional financing may result in dilution or partial sale of assets

Osisko Development's operations are subject to financing risks. At the present time, the Company has exploration and development assets which may generate periodic revenues through test mining but has no mines in the commercial production stage. The Company's ability to explore for and find potential economic projects, and then to bring them into production, is highly dependent upon its ability to raise equity and debt capital in the financial markets. Any projects that the Company develops will require significant capital expenditures. To obtain such funds, the Company may sell additional securities including, but not limited to, the Company's shares or some form of convertible security, the effect of which could result in a substantial dilution of the equity interests of the Company's Shareholders. Alternatively, the Company may also sell a part of its interest in an asset in order to raise capital. There is no assurance that the Company will be able to raise the funds required to continue its exploration programs and finance the development of any potentially economic deposit that is identified on acceptable terms or at all. The failure to obtain the necessary financing could have a material adverse effect on the Company's growth strategy, results of operations, financial condition and project scheduling.

Risks Factors Related to the Company

Mineral Exploration and Development

Mineral exploration and development is speculative and involves a high degree of risk. While the discovery of an ore body may result in substantial rewards, few properties which are explored are commercially mineable and ultimately developed into producing mines. There is no assurance that any exploration properties will be commercially mineable.

Should any mineral resources exist, substantial expenditures will be required to confirm mineral reserves which are sufficient to commercially mine and to obtain the required environmental approvals and permitting required to commence commercial operations. The decision as to whether a property contains a commercially viable mineral deposit and should be brought into production will depend upon the results of exploration programs and/or feasibility studies, and the recommendations of duly qualified engineers and/or geologists, all of which involves significant expense. This decision will involve consideration and evaluation of several significant factors including, but not limited to: (a) costs of bringing a property into production, including exploration and development work, preparation of production feasibility studies and construction of production facilities; (b) availability and costs of financing; (c) ongoing costs of production; (d) metal prices; (e) environmental compliance regulations and restraints (including potential environmental liabilities associated with historical exploration activities); and (f) political climate and/or governmental regulation and control. Development projects are also subject to the successful completion of engineering studies, issuance of necessary governmental permits, and availability of adequate financing. Development projects have no operating history upon which to base estimates of future cash flow.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Operating Cash Flow

The Company has negative cash flow from operations. If additional funds are needed, there is no assurance that additional capital or other types of financing will be available or that these financings will be on terms at least as favourable to the Company as those previously obtained, or at all.

Mining Operations

Mining operations are and will be subject to all the hazards and risks normally incidental to exploration, development and production of mineral resources and mineral reserves including unusual or unexpected geological formations and other conditions such as formation pressures, fire, power outages, flooding, explosions, cave-ins, landslides and the inability to obtain suitable machinery, equipment or labour, any of which could result in work stoppages, damage to property, and possible environmental damage that even a combination of careful evaluation, experience and knowledge may not eliminate or adequately mitigate. The Company may be subject to liability for pollution, cave-ins or hazards against which it cannot insure or against which it may elect not to insure. The payment of such liabilities may have a material adverse effect on the financial position of the Company.

Industry Conditions

The exploration for and development of mineral deposits involve significant risks and while the discovery of an ore body may result in substantial rewards, few properties that are explored are ultimately developed into producing mines. All of the Company's properties are in the development or exploration stage and the Company is presently not commercially exploiting any of its properties and its future success will depend on its capacity to generate revenues from a commercially producing property.

The discovery of mineral deposits depends on a number of factors, including the professional qualification of its personnel in charge of exploration. Whether a mineral deposit will be commercially viable depends on a number of factors, some of which are the particular attributes of the deposit, such as size, grade and proximity to infrastructure, as well as metal prices which are highly cyclical and government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and environmental protection. In the event that the Company wishes to commercially exploit one of its properties, the exact effect of these factors cannot be accurately predicted, but the combination of these factors may result in the Company not receiving an adequate return on invested capital. The Company's operations will be subject to all the hazards and risks normally encountered in the exploration and development of mineral deposits. Mining operations generally involve a high degree of risk, including unusual and unexpected geologic formations.

Regulatory Matters

The Company's activities are subject to governmental laws and regulations. These activities can be affected at various levels by governmental regulation governing prospecting and development, price control, taxes, labour standards and occupational health, expropriation, mine safety and other matters. Exploration and commercialization are subject to various federal, provincial and local laws and regulations relating to the protection of the environment. These laws impose high standards on the mining industry to monitor the discharge of wastewater and report the results of such monitoring to regulatory authorities, to reduce or eliminate certain effects on or into land, water or air, to progressively rehabilitate mine properties, to manage hazardous wastes and materials and to reduce the risk of worker accidents. Failure to comply with applicable laws and regulations may result in civil or criminal fines or penalties or enforcement actions, including orders issued by regulatory or judicial authorities enjoining or curtailing operations or requiring corrective measures, installation of additional equipment or remedial actions, any of which could result in significant expenditures. The Company may also be required to compensate private parties suffering loss or damage by reason of a breach of such laws, regulations or permitting requirements. It is also possible that future laws and regulations, or more stringent enforcement of current laws and regulations by governmental authorities, could cause additional expense, capital expenditures, restrictions on or suspensions of the Company's activities and delays in the exploration and development of the projects and properties. Amendments to current laws, regulations and permits governing operations and activities of mining companies, or more stringent implementation thereof, could have a material adverse impact on the Company and cause increases in capital expenditures or development costs or require abandonment or delays in development of new mining properties.

Also, no assurance can be made that Canada Revenue Agency and provincial agencies will agree with the Company's characterization of expenses as Canadian exploration expenses or Canadian development expense or the eligibility of such expenses as Canadian exploration expense under the Tax Act or any provincial equivalent.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Environmental Risks and Hazards

The Company is subject to environmental regulation in the jurisdictions in which it operates. These regulations mandate, among other things, the maintenance of air and water quality standards and land reclamation. They also set forth limitations on the general, transportation, storage and disposal of solid and hazardous waste. Environmental legislation is evolving in a manner which will require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. There is no assurance that future changes in environmental regulation, if any, will not adversely affect the Company's operations. Environmental hazards may exist on the properties which are unknown to the Company at present and which have been caused by previous or existing owners or operators of the properties. Reclamation costs are uncertain and planned expenditures estimated by management may differ from the actual expenditures required.

Taxation Laws or Reviews

The Company has operations and conducts business in multiple jurisdictions and it is subject to the taxation laws of each such jurisdiction. These taxation laws are complicated and subject to change. The Company may also be subject to review, audit and assessment in the ordinary course. Any such changes in taxation law or reviews and assessments could result in higher taxes being payable or require payment of taxes due from previous years, which could adversely affect the Company's liquidities. Taxes may also adversely affect the Company's ability to repatriate earnings and otherwise deploy its assets.

Changes in Economic and Political Conditions and Regulations

The economics of the exploration and development of mining projects are affected by many factors, including the costs of exploration and development, variations of grade of ore discovered, fluctuations in metal prices, foreign exchange rates and the prices of goods and services, applicable laws and regulations, including regulations relating to royalties, allowable production and importing and exporting goods and services. Depending on the price of minerals, the Company may determine that it is neither profitable nor advisable to acquire or develop properties. The Company's mineral properties are located in Canada and Mexico. Economic and political conditions in these countries could adversely affect the business activities of the Company. These conditions are beyond the Company's control, and there can be no assurances that any mitigating actions by the Company will be effective. Changing laws and regulations relating to the mining industry or shifts in political conditions may increase the costs related to the Company's activities including the cost of maintaining its properties. Operations may also be affected to varying degrees by changes in government regulations with respect to restrictions on exploration and development activities, price controls, export controls, income taxes, royalties, expropriation of property, environmental legislation (including specifically legislation enacted to address climate change) and mine safety. The effect of these factors cannot be accurately predicted. Economic instability could result from current global economic conditions and could contribute to currency volatility and potential increases to income tax rates, both of which could significantly impact the Company's profitability.

The Company's activities are subject to extensive laws and regulations governing worker health and safety, employment standards, waste disposal, protection of historic and archaeological sites, mine development, protection of endangered and protected species and other matters. Regulators have broad authority to shut down and/or levy fines against facilities that do not comply with regulations or standards.

Risk factors specific to certain jurisdictions are described throughout, including specifically "Security in Mexico". The occurrence of the various factors and uncertainties related to economic and political risks of operating in the Company's jurisdictions cannot be accurately predicted and could have a material adverse effect on the Company.

Security in Mexico

In recent years, criminal activity and violence have increased and continue to increase in parts of Mexico. The mining sector has not been immune to the impact of criminal activity and violence, including in the form of kidnapping for ransom and extortion by organized crime, direct armed robberies of mining operations and the theft and robbery of supply convoys, including specifically for diesel. The Company takes measures to protect employees, property and production facilities from these and other security risks. There can be no assurance, however, that security incidents, in the future, will not have a material adverse effect on the Company's operations.

Mineral Assets outside of Canada

Some of the Company's mineral assets are located outside of Canada and are held indirectly through foreign affiliates. It may be difficult if not impossible to enforce judgments obtained in Canadian courts predicated upon the civil liability provisions of the securities laws of certain provinces against the Company's assets that are located outside of Canada.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Permits, Licences and Approvals

The operations of the Company require licences and permits from various governmental authorities. The Company believes it holds or is in the process of obtaining all necessary licences and permits to carry on the activities, which it is currently conducting under applicable laws and regulations. Such licences and permits are subject to changes in regulations and in various operating circumstances. There can be no guarantee that the Company will be able to obtain all necessary licences and permits that may be required to maintain its mining activities, construct mines or milling facilities and commence operations of any of its exploration properties. In addition, if the Company proceeds to production on any exploration property, it must obtain and comply with permits and licences which may contain specific conditions concerning operating procedures, water use, the discharge of various materials into or on land, air or water, waste disposal, spills, environmental studies, abandonment and restoration plans and financial assurances. There can be no assurance that the Company will be able to obtain such permits and licences or that it will be able to comply with any such conditions.

Mergers, Acquisitions or Joint Ventures

The Company may evaluate from time to time opportunities to merge, acquire and joint venture assets and businesses or conduct any other type of transaction. Global landscape has changed and there are risks associated to such transactions due to liabilities and evaluations with the aggressive timelines of closing transactions from increased competition. There is also a risk that the review and examination process might be inadequate and cause material negative outcomes. These transactions may be significant in size, may change the scale of the Company's business and may expose it to new geographic, political, operating, financial and geological risks. Any transactions would be accompanied by risks, such as the difficulty of assimilating the operations and personnel; the potential disruption of the Company's ongoing business; the inability of management to maximize the financial and strategic position of the Company; the maintenance of uniform standards, controls, procedures and policies; the impairment of relationships with employees, customers and contractors as a result of any integration of new management personnel; dilution of the Company's present shareholders or of its interests in its assets or the decision to grant interests to a joint venture partner; and the potential unknown liabilities. There can be no assurance that the Company would be successful in overcoming these risks or any other problems encountered in connection with such transactions or joint ventures. There may be no right for shareholders to evaluate the merits or risks of any future transaction or joint venture undertaken except as required by applicable laws and regulations.

Local Communities, Indigenous Peoples and First Nations

Indigenous title claims, rights to consultation/accommodation and the Company's relationship with local communities may affect the Company's existing exploration and development projects. Governments in many jurisdictions must consult with indigenous peoples and First Nations with respect to grants of mineral rights or surface rights and the issuance or amendment of project authorizations. Consultation and other rights of indigenous peoples and first nations may require accommodations, including undertakings regarding employment, royalty payments and other matters. This may affect the Company's ability to acquire, within a reasonable time frame, effective mineral titles or surface rights in these jurisdictions, including in some parts of Canada, in which indigenous or local communities' titles are claimed, and may affect the timetable and costs of development of mineral properties in these jurisdictions. The risk of unforeseen indigenous title claims also could affect exploration and development projects. These legal requirements may also affect the Company's ability to transfer existing projects or to develop new projects.

The Company's relationship with the communities in which it conducts activities are critical to ensure the future success of its existing activities and the exploration and development of its projects. There is an increasing level of public concern relating to the perceived effect of mining activities on the environment and on communities impacted by such activities. Adverse publicity relating to the mining industry generated by non-governmental organizations and others could have an adverse effect on the Company's reputation or financial condition and may impact its relationship with the communities in which it conducts activities. While the Company is committed to working in a socially responsible manner, there is no guarantee that the Company's efforts in this regard will mitigate this potential risk.

The inability of the Company to maintain positive relationships with local communities may result in additional obstacles to permitting, increased legal challenges, or other disruptive operational issues at any of the Company's projects, and could have a significant adverse impact on the Company's share price and financial condition.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Competition

The Company activities are directed towards the exploration, evaluation and development of mineral deposits. There is no certainty that the expenditures to be made by the Company will result in discoveries of commercial quantities of mineral deposits. There is aggressive competition within the mining industry for the discovery and acquisition of properties considered to have commercial potential. The Company will compete with other interests, many of which have greater financial resources than it will have, for the opportunity to participate in promising projects. Significant capital investment is required to achieve commercial production from successful exploration efforts, and the Company may not be able to successfully raise funds required for any such capital investment.

Potential Fraud and Corruption

The Company is subject to risks related to potential to gain benefits from improper transactions and financial reporting to hide operational deficiencies or enhance remuneration. Other risks include the potential for fraud and corruption by suppliers, personnel or government officials and which may implicate the Company, compliance with applicable anti- corruption laws.

Anti-Bribery Laws

The Canadian Corruption of Foreign Public Officials Act and the U.S. Foreign Corrupt Practices Act and anti-bribery laws in other jurisdictions where we do business, prohibit companies and their intermediaries from making improper payments for the purposes of obtaining or retaining business or other commercial advantage. The Company's policies mandate compliance with these anti-bribery laws, which often carry substantial penalties. The Company operates in jurisdictions that have experienced governmental and private sector corruption to some degree, and, in certain circumstances, strict compliance with anti-bribery laws may conflict with certain local customs and practices. There can be no assurances that the Company's internal control policies and procedures will always protect it from reckless or other inappropriate acts committed by the Company's affiliates, employees or agents. Violations of these laws, or allegations of such violations, could have a material adverse effect on the Company's business, financial position and results of operations.

Management

The Company is dependent on certain members of Management, particularly its Chief Executive Officer. The loss of their services could adversely affect the Company.

The Company may experience difficulty attracting and retaining qualified management to grow its business, which could have a material adverse effect on the Company's business and financial condition. The Company is dependent on the services of key executives and other highly skilled personnel focused on advancing its corporate objectives as well as the identification of new opportunities for growth and funding. The loss of these persons or its inability to attract and retain additional highly skilled employees required for its activities may have a material adverse effect on the Company's business and financial condition. Further, while certain of the Company's officers and directors have experience in the exploration, development and operation of mineral properties, the Company remains highly dependent upon contractors and third parties in the performance of their exploration and development activities. There can be no guarantee that such contractors and third parties will be available to carry out such activities on behalf of the Company or be available upon commercially acceptable terms.

Conflicts of Interest

Certain directors and officers of the Company also serve as directors and officers of other companies involved in natural resource exploration and development; consequently, there is a possibility that such directors and officers will be in a position of conflict of interest. Any decision made by such directors and officers involving the Company will be made in accordance with their duties and obligations to deal fairly and in good faith with the Company and such other companies. In addition, such directors will declare, and refrain from voting on, any matter in which such directors may have a material conflict of interest.

Labour Relations

While the Company has good relations with its employees, there can be no assurance that it will be able to maintain positive relationships with its employees. In addition, relations between the Company and its employees may be impacted by regulatory or governmental changes introduced by the relevant authorities in whose jurisdictions the Company carries on business as well as by the COVID-19 pandemic. Adverse changes in such legislations or in the relationship between the Company and its employees could have a material adverse impact on the Company's business, results of operations and financial condition.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Uninsured Hazards

The Company could be held responsible for certain events including environmental pollution, cave-ins or other hazards against which a Company such as the Company cannot insure or against which it may elect not to insure, taking into consideration the importance of the premiums or other reasons. The payment of amounts relating to liability of the aforementioned hazards could cause the loss of the Company's assets.

Uncertainty of Mineral Resource and Mineral Reserve Estimates

Mineral resource and mineral reserve figures are only estimates. Mineral resource and mineral reserve estimates have inherent uncertainty. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. While the Company believes that the mineral resource and mineral reserve estimates, as applicable, in respect of properties in which the Company holds a direct interest reflect best estimates, the estimating of mineral resources and mineral reserves is a subjective process and the accuracy of mineral resource and mineral reserve estimates is a function of the quantity and quality of available data, the accuracy of statistical computations, and the assumptions used and judgments made in interpreting available engineering and geological information. There is significant uncertainty in any mineral resource and mineral reserve estimate and the actual deposits encountered and the economic viability of a deposit may differ materially from estimates. Estimated mineral resources and mineral reserves may have to be re-estimated based on changes in prices of gold or other minerals, further exploration or development activity or actual production experience. This could materially and adversely affect estimates of the volume or grade of mineralization, estimated recovery rates or other important factors that influence such estimates. In addition, mineral resources are not mineral reserves and there is no assurance that any mineral resource estimate will ultimately be reclassified as proven or probable mineral reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability.

Unanticipated metallurgical processing problems

Unanticipated metallurgical processing problems may occur during operations, including, without limitation, mechanical problems with milling or extraction equipment, unexpected grade anomalies in processed material, contaminants in processing or processed material, and the inability to operate tested processes at scale which can lead to lower metallurgical recoveries than expected and delay and impede operations, which may affect the profitability of the Cariboo Project. In addition, further metallurgical testing or operations may determine that the metals cannot be extracted as economically as anticipated.

Financing Risks and Additional Financing

The Company's operations are subject to financing risks and additional financing may result in dilution or partial sale of assets. At the present time, the Company does not have any projects at the commercial production stage and no significant sources of revenue. The Company's ability to explore for and find potential economic projects, and then to bring them into production is highly dependent upon its ability to raise equity and debt capital in the financial markets. Any projects that the Company develops will require significant capital expenditures. Currently, the Company does not have any producing projects and no sources of revenue and any projects it develops will require significant capital expenditures. As a result, the Company may be required to seek additional sources of debt and equity financing in the near future. To obtain such funds, the Company may sell additional securities including, but not limited to, the Company's shares or some form of convertible security, the effect of which could result in a substantial dilution of the equity interests of the Company's shareholders. Alternatively, the Company may also sell a part of its interest in an asset in order to raise capital. There is no assurance that the Company will be able to raise the funds required to continue its exploration programs and finance the development of any potentially economic deposit that is identified on acceptable terms or at all. The failure to obtain the necessary financing could have a material adverse effect on the Company's growth strategy, results of operations, financial condition and project scheduling. The development of the Cariboo Project remains subject to, among other things, Osisko Development securing adequate financing on conditions acceptable to it.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Factors beyond the control of Osisko Development

The potential profitability of mineral properties is dependent upon many factors beyond the Company's control. For instance, world prices of and markets for minerals are unpredictable, highly volatile, potentially subject to governmental fixing, pegging and/or controls and respond to changes in domestic, international, political, social and economic environments. Another factor is that rates of recovery of minerals from mined ore (assuming that such mineral deposits are known to exist) may vary from the rate experienced in tests and a reduction in the recovery rate will adversely affect profitability and, possibly, the economic viability of a property. Profitability also depends on the costs of operations, including costs of labour, equipment, electricity, environmental compliance or other production inputs. Such costs will fluctuate in ways the Company cannot predict and are beyond the Company's control, and such fluctuations will impact on profitability and may eliminate profitability altogether. Additionally, due to worldwide economic uncertainty, the availability and cost of funds for development and other costs have become increasingly difficult, if not impossible, to project. These changes and events may materially affect the financial performance of the Company and they may also negatively impact the project schedule.

Lack of Insurance Coverage

The Company may be subject to liability or sustain loss for certain risks and hazards against which it does not or cannot insure or against which it may reasonably elect not to insure because of the cost. This lack of insurance coverage could result in material economic harm to the Company. Mining is capital intensive and subject to a number of risks and hazards, including environmental pollution, accidents or spills, industrial and transportation accidents, labour disputes, changes in the regulatory environment, natural phenomena (such as inclement weather conditions, earthquakes, pit wall failures and cave-ins) and encountering unusual or unexpected geological conditions. Such risk and hazards might impact the Company's business. Consequently, many of the foregoing risks and hazards could result in damage to, or destruction of, the Company's mineral properties or future processing facilities, personal injury or death, environmental damage, delays in or interruption of or cessation of their exploration or development activities, delay in or inability to receive required regulatory approvals, or costs, monetary losses and potential legal liability and adverse governmental action.

Reliance on Information

The Contributed Osisko Assets are not stand-alone publicly-listed entities. As a result, all historical information relating to the Contributed Osisko Assets presented in this MD&A has been provided in reliance on the information made available by Osisko Gold Royalties. Although the Company has no reason to doubt the accuracy or completeness of the information provided by Osisko Gold Royalties, any inaccuracy or omission in such information contained in this MD&A could result in unanticipated liabilities or expenses, increase the costs to expected to be borne by the Company or adversely affect the operational plans of the Company and its result of operations and financial condition.

Significant Influence of Osisko Gold Royalties Ltd

As a significant shareholder, Osisko Gold Royalties is entitled to exercise significant influence over all matters requiring approval of the shareholders of the Company, including the election of directors, determination of significant corporate actions, amendments to the Company's articles of incorporation and the approval of any business combinations, mergers or takeover attempts, in a manner that could conflict with the interests of other shareholders of the Company.

Risk related to the Contributed Osisko Assets and Reverse Takeover Transaction

The Company completed the Reverse Takeover Transaction to create a growth-oriented developer with prospective gold camps in Canada and Mexico. The Company may be unable to successfully integrate the businesses of the Contributed Osisko Assets and realize the anticipated benefits of the Reverse Takeover Transaction. Achieving the benefits of the Reverse Takeover Transaction will depend in part on the ability of the Company to effectively capitalize on its scale, to realize the anticipated capital, operating and financial synergies, to profitably sequence the growth prospects of its asset base and to maximize the potential of its improved growth opportunities and capital funding opportunities as a result of combining the businesses and operations the Contributed Osisko Assets. A variety of factors, including those risk factors set forth in this MD&A may adversely affect the ability of the Company to achieve the anticipated benefits of the Reverse Takeover Transaction.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Uncertainty of Ownership Rights and Boundaries of Resource Properties

There is no assurance that the rights of ownership and other rights in concessions held by the Company are not subject to loss or dispute, particularly because such rights may be subject to prior unregistered agreements or transfers or other land claims and may be affected by defects and adverse Laws and regulations which have not been identified by the Company. There is no guarantee that title to the properties will not be challenged or impugned. The Company's property interest may be subject to prior unregistered agreements or transfers or native land claims and title may be affected by undetected defects.

Third Party Approvals

The Company may require the consent or approval of third parties in order to enter into or complete certain agreements or transaction necessary in the course of its operations. There can be no assurance that such third parties, which may include shareholders, regulatory bodies or entities with an interest in the applicable property or others, will provide the required approval or consent in a timely manner, or at all. Failure to obtain such third party approval may result in a material adverse effect on the Company's operations and financial condition.

Community Relations, Social License and Land Claim

Maintaining a positive relationship with the communities in which the Company operates is critical to its business operations and the development of the Cariboo Project.

The Company may come under pressure to demonstrate that other stakeholders (including employees, communities surrounding operations and the countries in which they respectively operate) benefit and will continue to benefit from its commercial activities, and/or that it operates in a manner that will minimize any potential damage or disruption to the interests of those stakeholders.

Erosion of social licence or activities of third parties seeking to call into question social licence may have the effect of slowing down the development of new projects and potentially may increase the cost of constructing and operating these projects. Productivity may be reduced due to restriction of access, proceedings initiated or delays in permitting and there may also be extra costs associated with improving the relationship with the surrounding communities.

While the Company is committed to operating in a socially responsible manner and working towards entering into agreements in satisfaction of such requirements that its efforts will be successful, in which case interventions by third parties, there is no guarantee that its efforts will be successful, in which case interventions by third parties could have a material adverse effect on the Company's business, financial position and operations.

Permits, Licences and Approvals

The operations of the Company require licences and permits from various governmental authorities. Such licences and permits are subject to changes in regulations and in various operating circumstances. There can be no guarantee that the Company will be able to obtain all necessary licences and permits that may be required to maintain its business operations and mining activities including the development of the Cariboo Project. In addition, if the Company proceeds to production on any exploration property, it must obtain and comply with permits and licences which may contain specific conditions concerning operating procedures, water use, the discharge of various materials into or on land, air or water, waste disposal, spills, environmental studies, abandonment and restoration plans and financial assurances. There can be no assurance that the Company will be able to obtain such permits and licences or that it will be able to comply with any such conditions.

Reliance on Historical Data

Although the Company's normal data verification procedures have been employed in connection with the calculations of the mineral resource estimation on the Cariboo Project and sampling, analytical and test data underlying the estimated mineral resources have been verified by qualified persons, an extensive amount of historical data and records on the Cariboo Project was relied on in establishing these calculations. The Company cannot provide any comfort that it can rely upon, verify or necessarily authenticate such historical information in connection with its exploitation of the Cariboo Project. The Company cannot guarantee that the historical records that are available are free from material errors or inaccuracies. While the Company believes that the mineral resource and mineral reserve estimates in respect of its Cariboo Project reflect best estimates, the estimating of mineral resources is a subjective process and the accuracy of mineral resource estimate is a function of the quantity and quality of available data, the accuracy of statistical computations, and the assumptions used and judgments made in interpreting available engineering and geological information. There is significant uncertainty in any mineral resource estimate and the actual deposits encountered and the economic viability of a deposit may differ materially from estimates.

Reputational Risks

Reputational risk is the risk that an activity undertaken by an organization or its representatives will impair its image in the community or lower public confidence in it, resulting in loss of revenue, legal action or increased regulatory oversight and loss of valuation and share price. Possible sources of reputational risk could come from, but not limited to, operational failures, non-compliance with laws and regulations, or leading an unsuccessful financing. In addition to its risk management policies, controls and procedures, the Company has a formal Code of Ethics to help manage and support Osisko Development's reputation. 


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Infrastructure, Supplies and Inflation

The availability of skilled labour, electricity and other necessary supplies at an economic cost cannot be assured. These are integral requirements for exploration, development and production facilities on mineral properties. Prices for goods and services will fluctuate in relation to the level of investment in the mining sector; it is reasonable to expect that increased demand could impact the Company's future economic projections and competitiveness, as it may entail a meaningful increase in costs for various goods and services.

Improvements in the economic conditions for the mining industry as a whole will typically result in increases to both the costs of planned exploration and development activities, which must also be factored into economic models used in projections for future development and potential operations. Increased demand for, and costs of, goods or services could result in delays if they cannot be obtained in a timely manner due to inadequate availability, and may cause scheduling difficulties and delays due to the need to coordinate their availability, any of which could materially increase project exploration, development and/or construction costs. These factors could have a material adverse impact on the Company's operations and profitability.

Equipment shortages and access restrictions

The Company's interest in the Cariboo Project will require adequate infrastructure, such as roads, bridges and sources of power and water, for future exploration and development activities. The lack of availability of these items on terms acceptable to the Company or the delay in availability of these items could prevent or delay exploitation or development of the Company's mineral properties. Natural resource exploration, development, processing and mining activities are dependent on the availability of mining, drilling and related equipment in the particular areas where such activities are conducted. A limited supply of such equipment or access restrictions may affect the availability of such equipment to the Company and may delay exploration, development or extraction activities. Certain equipment may not be immediately available, or may require long lead time orders. A delay in obtaining necessary equipment could have a material adverse effect on the Company's operations and financial results.

Litigation and Other Legal Proceedings

Like most companies, the Company is subject to the threat of litigation and may be involved in disputes with other parties which may result in litigation or other proceedings. The Company's operations are subject to the risk of legal claims by employees, unions, contractors, debt holders, lenders, suppliers, future joint venture partners, shareholders, governmental agencies or others through private actions, class actions, administrative proceedings, regulatory actions or other litigation.

Proposed Tintic Transaction

The information about the timeline to complete the Transaction, ability to satisfy or waive on satisfactory terms and conditions to the completion of the Transaction (including but not limited to, TSX-V acceptance of the Transaction), the timeline to reach a definitive agreement with respect to the Stream (if at all), the ability to obtain the financing under the Stream and satisfy or waive on satisfactory terms and conditions to the completion of the Stream financing, the general prospects of Tintic, the utility of the existing infrastructure at Tintic, the utility of historic data, expected investor returns, target gold, the focus of Tintic on achieving gold production, the prospects of shallow mining at Tintic, the ability of exploration (including drilling) to accurately predict mineralization, base metal discoveries, ability to obtain additional financing for project development on satisfactory terms, the investment opportunities presented by Tintic, Tintic achieving production (including near-term timing, if at all), the opportunities presented by the Trixie Mine, its ore deposit and its ability to be mined (including any potential value, if any), Tintic having a pipeline of projects, both historic and new, Tintic's ability to realize upon additional projects (if any), grade estimates, the speculative geology of inferred mineral resources, the ability, if any, to achieve the project economics described herein, the ability, if any, of selective mining methods to capture additional mineable resources and to optimize gold and silver recoveries, the mining and processing strategy; potential mineralization; the ability to realize upon any mineralization in a manner that is economic; the ability to complete any proposed exploration activities and the results of such activities, and any other information herein that is not a historical fact may be "forward-looking statements". These forward‐looking statements, by their nature, require Osisko Development to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward‐looking statements.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Climate Change

The Company recognizes that climate change is as much an international as it is a community concern which may affect its business and operations, directly or indirectly. The continuing rise in global average temperatures has created varying changes to regional climates across the globe, resulting in risks to equipment and personnel. Governments at all levels are moving towards enacting legislation to address climate change by regulating carbon emissions and energy efficiency, among other things. Where legislation has already been enacted, regulation regarding emission levels and energy efficiency are becoming more stringent. The mining industry as a significant emitter of greenhouse gas emissions is particularly exposed to these regulations. Costs associated with meeting these requirements may be subject to some offset by increased energy efficiency and technological innovation; however, there is no assurance that compliance with such legislation will not have an adverse effect on the Company's business, results of operations, financial condition and its share price.

Extreme weather events (such as prolonged drought or freezing, increased flooding, increased periods of precipitation and increased frequency and intensity of storms) have the potential to disrupt operations and the transport routes. Extended disruptions could result in interruption to production which may adversely affect the Company's business, results of operations, financial condition and its share price.

Climate change is perceived as a threat to communities and governments globally. Stakeholders may increase demands for emissions reductions and call upon mining companies to better manage their consumption of climate-relevant resources (hydrocarbons, water etc.). This may attract social and reputational attention towards operations, which could have an adverse effect on the Company's business, results of operations, financial condition and its share price.

Coronavirus (COVID-19)

The Company may face risks related to health epidemics and other outbreaks of communicable diseases, which could significantly disrupt its operations and may materially and adversely affect its business and financial conditions.

To that end, the Company's business could be adversely impacted by the effects of the coronavirus or other epidemics. In December 2019, a novel strain of the coronavirus (COVID-19) emerged in China and the virus has now spread to several other countries, including Canada and the U.S., and infections have been reported globally. In March 2020, the World Health Organization recognized COVID-19 as a global pandemic, prompting many national, regional, and local governments, including ones in the markets in which the Company will operate, to implement preventive or protective measures, such as travel and business restrictions, temporary store closures, and wide-ranging quarantines and stay-at- home orders. The COVID-19 pandemic has resulted in a widespread global health crisis that adversely affects global economies and financial markets.

The extent to which COVID-19 impacts the Company's business, including its operations and the market for its securities, will depend on future developments, which are highly uncertain and cannot be predicted at this time, and include the duration, severity and scope of the outbreak and the actions taken to contain or treat the COVID-19 outbreak. In particular, the continued spread of COVID-19 globally could materially and adversely impact the Company's business including without limitation, employee health, workforce productivity, increased insurance premiums, continued limitations on travel, the availability of industry experts and personnel, restrictions to its drill program and/or the timing to process drill and other metallurgical testing, and other factors that will depend on future developments beyond the Company's control, which may have a material and adverse effect on the its business, financial condition and results of operations.

There can be no assurance that the Company's personnel or its contractors' personnel will not be impacted by these pandemic diseases and ultimately see its workforce productivity reduced or incur increased safety and medical costs / insurance premiums as a result of these health risks.

Currency Fluctuations

The Company is subject to currency risks. The Company's functional currency is the Canadian dollar, which is exposed to fluctuations against other currencies. The Company's activities are located in Canada and Mexico, and as such many of its expenditures and obligations are denominated in U.S. dollars and Mexican pesos. The Company maintains its principal office in Montreal, Québec, Canada, and maintains cash accounts in Canadian dollars, U.S. dollars and Mexican pesos and has monetary assets and liabilities in Canadian dollars, U.S. dollars and Mexican pesos.

The Company's assets and liquidities are significantly affected by changes in the Canadian/U.S. dollar and Canadian/Mexican peso exchange rates. Most expenses are currently denominated in Canadian and US dollars and Mexican pesos. Exchange rate movements can therefore have a significant impact on the Company's costs. The appreciation of non-Canadian dollar currencies against the Canadian dollar can increase the costs of the Company's activities.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Precious and Base Metal Prices

The development of the Company's properties is dependent on the future prices of minerals and metals. As well, should any of the Company's properties eventually enter commercial production, the Company's profitability will be significantly affected by changes in the market prices of minerals and metals.

The price of precious and base metal prices can fluctuate widely and is affected by numerous factors including demand, inflation, strength of the U.S. dollar and other currencies, interest rates, gold sales by the central banks, forward sales by producers, global or regional political or financial events, and production and cost levels in major producing regions. In addition, prices are sometimes subject to rapid short-term changes because of speculative activities. Even if the Company discovers commercial amounts of metals on its properties, it may not be able to place the property into commercial production if precious and base metal prices are not at sufficient levels.

Fluctuation in Market Value

The price of the Common Shares may be affected by global macroeconomic developments and market perceptions of the attractiveness of particular industries and location of assets, which may increase the volatility of Common Share prices. The price of the Common Shares will also be affected by the Company's financial conditions or results of operations as reflected in its liquidity position and earnings reports.

Other factors unrelated to the Company's operations and performance that may have an affect on the price of the Common Shares include: the lessening in trading volume and general market interest in the Company's securities may affect an investor's ability to trade significant numbers of shares; the size of the Company's public float may limit the ability of some institutions to invest in the Company's securities; and a substantial decline in the price of the Common Shares that persists for a significant period of time could cause the Company's securities to be delisted further reducing market liquidity.

As a result of any of these factors, the market price of the Common Shares at any given point in time may not accurately reflect the Company's long-term value. Securities class action litigation often has been brought against companies following periods of volatility in the market price of their securities. The Company may in the future be the target of similar litigation. Securities litigation could result in substantial costs and damages and divert management's attention and resources.

Dividend Policy

No dividends on the Common Shares have been paid to date. The Company anticipates that, for the foreseeable future, it will retain future earnings and other cash resources for the operation and development of its business. Payment of any future dividends will be at the discretion of the Board after taking into account many factors, including the Company's operating results, financial condition, and current and anticipated cash needs.

Public Company Obligations

As a publicly listed corporate entity, the Company is subject to evolving rules and regulations promulgated by a number of governmental and self-regulated organizations, including the Canadian Securities Administrators, the TSXV, and the International Accounting Standards Board, which govern corporate governance and public disclosure regulations. These rules and regulations continue to evolve in scope and complexity creating many new requirements, which increase compliance costs and the risk of non-compliance. The Company's efforts to comply with these rules and obligations could result in increased general and administration expenses and a diversion of management time and attention from financing, development, operations and, eventually, revenue-generating activities.

Disclosure Controls and Procedures

Management has established processes to provide them sufficient knowledge to support representations that they have exercised reasonable diligence that (i) the consolidated financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of and for the periods presented by the consolidated financial statements; and (ii) the consolidated financial statements fairly present in all material respects the financial condition, results of operations and cash flows of the Company, as of the date of and for the periods presented.

In contrast to the certificate required for non-venture issuers under National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures ("DC&P") and internal control over financial reporting ("ICFR"), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of:


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's accounting policies.

The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.

Basis of Presentation of the consolidated Financial Statements

These consolidated condensed interim financial statements have been prepared in accordance with the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The accounting policies, methods of computation and presentation applied in these consolidated financial statements are detailed in the financial statements notes.

Critical Accounting Estimates and Judgements

Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The determination of estimates requires the exercise of judgement based on various assumptions and other factors such as historical experience and current and expected economic conditions. Actual results could differ from those estimates.

Critical accounting estimates and assumptions as well as critical judgements in applying the Company's accounting policies are detailed in the consolidated financial statements for the year ended December 31, 2021 and 2020.

Financial Instruments

All financial instruments are required to be measured at fair value on initial recognition. The fair value is based on quoted market prices, unless the financial instruments are not traded in an active market. In this case, the fair value is determined by using valuation techniques like discounted cash flows, the Black-Scholes option pricing model or other valuation techniques. Measurement in subsequent periods depends on the classification of the financial instrument. A description of financial instruments and their fair value is included in the consolidated financial statements for the quarter ended March 31, 2022

Technical Information

The scientific and geological technical information contained in this MD&A has been reviewed and approved by Ms. Maggie Layman who is "Qualified Persons" ("QP") as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Share Capital Structure

As of the date of this MD&A, the following number of common shares of the Company and other securities of the Company exercisable for common shares of the Company are outstanding (adjusted for the 3:1 share consolidation):

Securities

Common shares on exercise

Common shares

47,593,473

Stock options

674,334

RSU's

342,220

DSU's

79,784

Warrants

8,105,075

Fully diluted share capital

56,794,886

Cautionary Note Regarding Forward-Looking Statements

Except for the statements of historical fact contained herein, the information presented in this MD&A constitutes Forward- Looking Information within the meaning of applicable Canadian Securities Laws concerning the business, operations, plans and financial performance and condition of the Company. Often, but not always, Forward-Looking Information can be identified by words such as "plans", "expects", "may", "should", "could", "will", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", or variations including negative variations thereof of such words and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved.

Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual plans, results, performance or achievements of the Company to differ materially from any future plans, results, performance or achievements expressed or implied by the Forward-Looking Information. Such factors include, among others, actual operating cash flows, operating costs, free cash flows, mineral resources, total cash, transaction costs, and administrative costs of the Company differing materially from those anticipated; project infrastructure requirements and anticipated processing methods, exploration expenditures differing materially from those anticipated; risks related to partnership or other joint operations; actual results of current exploration activities; variations in mineral resources, mineral production, grades or recovery rates or optimization efforts and sales; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; uninsured risks, including, but not limited to, pollution, cave-ins or hazards for which insurance cannot be obtained; regulatory changes, defects in title; availability or integration of personnel, materials and equipment; inability to recruit or retain management and key personnel; performance of facilities, equipment and processes relative to specifications and expectations; unanticipated environmental impacts on operations; market prices; production, construction and technological risks or capital requirements and operating risks associated with the operations or an expansion of the operations, dilution due to future equity financings, fluctuations in gold, silver and other metal prices and currency exchange rates; uncertainty relating to future production and cash resources; inability to successfully complete new development projects, planned expansions or other projects within the timelines anticipated; adverse changes to market, political and general economic conditions or laws, rules and regulations applicable to the Company; impact of the COVID-19 pandemic; changes in project parametres; the possibility of project cost overruns or unanticipated costs and expenses; accidents, labour disputes, community and stakeholder protests and other risks of the mining industry; failure of plant, equipment or processes to operate as anticipated; risk of an undiscovered defect in title or other adverse claim; factors discussed under the heading "Risk Factors"; and other risks, including those risks set out in the continuous disclosure documents of the Company, which are available on SEDAR (www.sedar.com) under the issuer profiles of the Company.

In addition, Forward-Looking Information herein is based on certain assumptions and involves risks related to the businesses of the Resulting Issuer. Forward-Looking Information contained herein is based on certain assumptions, including, but are not limited to, interest and exchange rates; the price of gold, copper and other metals; competitive conditions in the mining industry; title to mineral properties; financing and funding requirements; general economic, political and market conditions; and changes in laws, rules and regulations applicable to the Company.

Although the Company has attempted to identify important factors that could cause plans, actions, events or results to differ materially from those described in Forward-Looking Information in this MD&A, there may be other factors that cause plans, actions, events or results not to be as anticipated, estimated or intended. There is no assurance that such statements will prove to be accurate as actual plans, results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on Forward-Looking Information in this MD&A. All of the Forward-Looking Information in this MD&A are qualified by these cautionary statements.


Osisko Development Corp.

Management's Discussion and Analysis

For the three months ended March 31, 2022

 

Certain Forward-Looking Information and other information contained herein concerning the mining industry and the expectations of the Company concerning the mining industry and the Company are based on estimates prepared by the Company using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which the Company believes to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, this data is inherently imprecise. While the Company is not aware of any misstatement regarding any industry data presented herein, the mining industry involves risks and uncertainties that are subject to change based on various factors.

Readers are cautioned not to place undue reliance on Forward-Looking Information. The Company does not undertake any obligation to update any of the Forward-Looking Information in this MD&A, except as required by law.



Osisko Development Corp.: Exhibit 99.43 - Filed by newsfilecorp.com

 

OSISKO DEVELOPMENT CORP.

 

 

. . . . . . . . . . . . . . . . . .

Unaudited Condensed Interim

Consolidated Financial Statements

For the three months ended

March 31, 2022

 

 


Osisko Development Corp.

Consolidated Statements of Financial Position
As at March 31, 2022 and December 31, 2021
(Unaudited)

(Expressed in thousands of Canadian dollars)

      March 31,     December 31,  
      2022     2021  
  Notes   $     $  
Assets              
               
Current assets              
               
Cash 3   56,801     33,407  
Restricted cash 16   206,490     -  
Amounts receivable 4   7,737     7,951  
Inventories 5   25,053     18,596  
Other current assets     4,939     1,471  
      301,020     61,425  
Non-current assets              
               
Investments in associates 6   12,633     12,964  
Other investments 6   32,156     49,516  
Mining interests 7   488,790     475,621  
Property, plant and equipment 8   81,641     83,712  
Exploration and evaluation 9   3,640     3,635  
Other assets     17,152     16,251  
      937,032     703,124  
               
Liabilities              
               
Current liabilities              
               
Accounts payable and accrued liabilities 10   36,091     25,117  
Deferred premium on flow-through shares 14   573     914  
Lease liabilities 12   2,514     8,104  
Contract liability 13   3,800     3,822  
Current Portion of long term debt 11   3,181     1,610  
Subscription Receipt Liability 16   207,980     -  
Environmental rehabilitation provision 15   2,870     2,287  
      257,009     41,854  
               
Non-current liabilities              
               
Long term debt 11   3,848     2,154  
Lease liabilities 12   750     1,762  
Contract liability 13   22,482     20,998  
Environmental rehabilitation provision 15   47,465     50,949  
Deferred income taxes     1,154     1,205  
      332,708     118,922  
               
Equity              
               
Share capital 16   754,185     714,373  
Warrants 16   633     -  
Contributed surplus     8,401     6,436  
Accumulated other comprehensive income     (5,162 )   6,764  
Deficit     (153,733 )   (143,371 )
      604,324     584,202  
      937,032     703,124  

APPROVED ON BEHALF OF THE BOARD  
   
(signed) Sean Roosen, Director (signed), Charles Page, Director

 



Osisko Development Corp.

Consolidated Statements of Loss

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Expressed in thousands of Canadian dollars, except per share amounts)

      2022     2021  
  Notes   $     $  
               
Revenues     9,167     -  
Operating expenses              
Cost of sales 18   (9,167 )   -  
Other operating costs 18   (15,246 )   -  
General and administrative 19   (7,807 )   (4,864 )
Exploration and evaluation, net of tax credits     (120 )   (337 )
Operating loss     (23,173 )   (5,201 )
Accretion expense     (447 )   (114 )
Share of loss of associates     (331 )   (407 )
Other income, net 20   1,588     839  
Loss before income taxes     (22,363 )   (4,883 )
               
Income tax recovery (expense)     31     1,182  
               
Net loss     (22,332 )   (3,701 )
               
Basic and diluted loss per share     (0.49 )   (0.09 )


Osisko Development Corp.

Consolidated Statements of Comprehensive (Loss) Income
For the three months ended March 31, 2022 and 2021
(Unaudited)

(Expressed in thousands of Canadian dollars)

    2022     2021  
    $     $  
             
Net loss   (22,332 )   (3,701 )
             
Other comprehensive income (loss)            
Items that will not be reclassified to the consolidated statements of loss            
Changes in fair value of financial assets at fair value through comprehensive income   (361 )   1703  
Income tax effect   21     (476 )
Items that may be reclassified to the consolidated statements of loss            
Currency translation adjustments   384     (1,992 )
Other comprehensive (loss) income   44     (765 )
             
Comprehensive loss   (22,288 )   (4,466 )



Osisko Development Corp.

Consolidated Statements of Cash Flows

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Expressed in thousands of Canadian dollars)

      2022     2021  
  Notes   $     $  
Operating activities              
Net loss     (22,332 )   (3,701 )
Adjustments for:              
Share-based compensation     1,881     1,203  
Depreciation     3,447     21  
Accretion     447     120  
Share of loss of associates     331     407  
Change in fair value of financial assets at fair value through profit and loss     227     80  
Unrealized gain on dilution     -     (1,391 )
Foreign exchange loss (gain)     (524 )   744  
Deferred income tax expense (recovery)     (31 )   (1,182 )
Premium on flow-through shares 14   (341 )   -  
Proceeds from Contract liability 13   -     5,653  
Other     (373 )   468  
Net cash flows used in operating activities before changes in non-cash working capital items     (17,268 )   2,422  
Changes in non-cash working capital items 22   372     (12,126 )
Net cash flows used in operating activities     (16,896 )   (9,704 )
               
Investing activities              
Mining interests     (9,661 )   (28,532 )
Property, plant and equipment     (3,373 )   (7,267 )
Exploration and evaluation expenses     (5 )   (135 )
Proceeds on disposals of investments     21,055     14,897  
Acquisition of other investments     (4,438 )   (671 )
Other     (264 )      
Net cash flows used in investing activities     3,314     (21,708 )
               
Financing activities              
Private placements     42,390     38,841  
Share issue expense 16   (2,130 )   (2,581 )
Deferred Financing Fees     (1,396 )   -  
Capital payments on lease liabilities 12   (4,992 )   (647 )
Long-term debt 11   3,870     -  
Repayment of long-term debt 11   (605 )   -  
Net cash flows provided by financing activities     37,137     35,613  
               
Increase in cash before impact of exchange rate     23,555     4,201  
Effects of exchange rate changes on cash     (161 )   (648 )
Increase in cash     23,394     3,553  
               
Cash - Beginning of period     33,407     197,427  
Cash - End of period     56,801     200,980  



Osisko Development Corp.

Consolidated Statements of Changes in Equity
For the three months ended March 31, 2022
(Unaudited)

 
(Expressed in thousands of Canadian dollars except number of shares)

      Number of                       Accumulated              
      common                       other     Retained        
      shares     Share           Contributed     comprehensive     earnings        
  Notes   Outstanding     capital     Warrants     surplus     income (loss)     (deficit)     Total  
            ($)     ($)     ($)     ($)     ($)     ($)  
Balance - January 1, 2022     133,203,232     714,373     -     6,436     6,764     (143,371 )   584,202  
                                             
Net loss     -     -     -     -     -     (22,332 )   (22,332 )
Other comprehensive loss     -     -     -     -     44     -     44  
Comprehensive loss     -     -     -     -     44     (22,332 )   (22,288 )
Private placements - Brokered 16   9,525,850     41,723     667     -     -     -     42,390  
Share-issue costs     -     (2,096 )   (34 )   -     -     -     (2,130 )
Share options - Share-based
compensation
    -     -     -     888     -     -     888  
                                             
Equity-settled compensation plan     -     -     -     1,077     -     -     1,077  
                                             
Shares issued - employee share purchase plan     35,223     185     -     -     -     -     185  
Transfer of realized gain on financial assets at fair value through other comprehensive income, net of taxes     -     -     -     -     (11,970 )   11,970     -  
                                          -  
Balance - March 31, 2022     142,764,305     754,185     633     8,401     (5,162 )   (153,733 )   604,324  



Osisko Development Corp.

Consolidated Statements of Changes in Equity
For the three months ended March 31, 2022
(Unaudited)

 
(Expressed in thousands of Canadian dollars except number of shares)

      Number of                 Accumulated              
      common                 other     Retained        
      shares     Share     Contributed     comprehensive     earnings        
  Notes   Outstanding     capital     surplus     income (loss)     (deficit)     Total  
                 $      $      $      $  
Balance - January 1, 2021     118,950,545     687,072     69     15,018     (2,593 )   699,566  
                                       
Net loss     -     -     -     -     (3,701 )   (3,701 )
Other comprehensive loss     -     -     -     (765 )   -     (765 )
                                       
Comprehensive loss     -     -     -     (765 )   (3,701 )   (4,466 )
Transfer of realized loss on financial assets at fair value through other comprehensive income, net of taxes     -     -     -     18,529     (18,529 )   -  
Private placements - Non- brokered 16   10,862,195     6,157     -     -     -     6,157  
Private placements - Flow- through 16   3,390,242     25,257     -     -     -     25,257  
Issue costs on financings (net of income taxes)     -     (1,897 )   -     -     -     (1,897 )
Share options - Share-based compensation     -     -     623     -     -     623  
Restricted share units from parent company -                                      
Share-based compensation     -     -     541     -     -     541  
Deferred share units to be settled in common shares-                                      
Share-based compensation     -     -     235     -     -     235  
                                       
Balance - March 31, 2021     133,202,982     716,589     1,468     32,782     (24,823 )   726,016  

 


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

1. Nature of operations

Osisko Development Corp. ("Osisko Development" or "the Company") is a mineral exploration and development company focused on the acquisition, exploration and development of precious metals resource properties in North and Central America. The common shares of Osisko Development began trading on the TSX Venture Exchange ("TSX-V") on December 2, 2020 under the symbol "ODV". The Company's registered and business address is 1100, avenue des Canadiens-de-Montréal, suite 300, Montreal, Québec.

The principal subsidiaries of the Company and their geographic locations at March 31, 2022 were as follows:

Entity Jurisdiction % ownership
Barkerville Gold Mines Ltd. ("Barkerville") British Columbia 100%
Sapuchi Minera, S. de R.L. de C.V. ("Sapuchi") Mexico 100%

Osisko Development is focused on exploring and developing its mining assets, including the Cariboo Gold Project in British Columbia and the San Antonio gold project in Mexico.

As at March 31, 2022, the Company's working capital was $44.0 million, which included cash of $56.8 million, and, the Company incurred a loss of $22.3 million for the three months ended in March 31, 2022. With the financings in progress announced in February 2022 (note 16), management believes that the Company will have sufficient funds to meet its obligations and planned expenditures for the ensuing twelve months as they fall due. In assessing whether the going concern assumption is appropriate, management considers all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period. In order to execute on its planned activities, the Company will be required to close on the announced financings or to secure additional financing in the future, which may be completed in several ways including, but not limited to, a combination of selling additional investments from its portfolio, project debt finance, offtake or royalty financing and other capital market alternatives. Failure to close on the announced financings within the expected timelines or at all, may impact and/or curtail the planned activities for the Company, which may include, but are not limited to, the suspension of certain development activities and the disposal of certain investments to generate liquidity.

2. Basis of presentation

These unaudited condensed interim consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") applicable to the preparation of interim financial statements, including IAS 34 Interim Financial Reporting. The condensed interim consolidated financial statements should be read in conjunction with the Company's annual consolidated financial statements for the year ended December 31, 2021, which have been prepared in accordance with IFRS as issued by the IASB. The accounting policies, methods of computation and presentation applied in these unaudited condensed interim consolidated financial statements are consistent with those of the previous financial year, unless otherwise noted.

The Board of Directors approved these condensed interim consolidated financial statements on May 12, 2022.

3. Cash

As at March 31, 2022 and December 31, 2021, cash held in U.S. dollars amounted respectively to US$9.5 million (CAD$11.9 million) and US$15.8 million (CAD$20 million). 


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

4. Amounts receivable

    March 31,     December 31,  
    2022     2021  
    $     $  
             
Trade receivables   326     499  
Exploration tax credits   6,532     6,648  
Sales taxes   846     803  
Other   33     1  
    7,737     7,951  

5. Inventories

    March 31,     December 31,  
    2022     2021  
    $     $  
Current            
             
Ore in stockpiles   4,798     4,194  
Gold-in-circuit inventory   11,226     8,638  
Refined precious metals   4,302     1,113  
Supplies   4,727     4,651  
Total current inventories   25,053     18,596  
             
Non-current            
             
Ore in stockpiles (note 14)(i)   -     -  

(i) The non-current ore in stockpile is presented in other assets on the consolidated statements of financial position.

Refined precious metals, gold-in-circuit and ore in stockpiles are measured at the lower of weighted average production cost and net realizable value. Net realizable value is calculated as the difference between the estimated selling price and estimated costs to complete processing into a saleable form plus variable selling expenses. Production costs include the cost of materials, labour, mine site production overheads and depreciation to the applicable stage of processing. The cost of ore stockpiles is increased based on the related current cost of production for the period. Stockpiles are segregated between current and non-current based on the period of planned usage.


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

6. Investments in associates & other investments

Investments in associates

    March 31,     December 31,  
    2022     2021  
    $     $  
Balance - Beginning of period   12,964     9,636  
Acquisitions   -     1,748  
Exercise of warrants   -     1,437  
Share of loss and comprehensive loss, net   (331 )   (1,703 )
Net gain on ownership dilution   -     1,846  
Balance - End of period   12,633     12,964  

Other investments

    March 31,     December 31,  
    2022     2021  
    $     $  
Fair value through profit or loss (warrants & convertible loan)            
Balance - Beginning of period   6,952     1,892  
Acquisitions   4,438     6,915  
Exercises   -     (1,122 )
Change in fair value   (381 )   (733 )
Balance - End of period   11,009     6,952  
             
Fair value through other comprehensive income (shares)            
Balance - Beginning of period   42,564     98,616  
Acquisitions   -     2,850  
Change in fair value   (362 )   (15,847 )
Disposals   (21,055 )   (43,055 )
Balance - End of period   21,147     42,564  
             
Total   32,156     49,516  

Other investments comprise common shares and warrants, almost exclusively from Canadian publicly traded companies and a convertible loan receivable of $8.5 million USD (CAD $10.6 million).


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

7. Mining interests

    March 31,     December 31,  
    2022     2021  
    $     $  
Cost - Beginning of period   475,621     385,802  
Additions   13,079     136,492  
Mining tax credit   -     (1,585 )
Asset retirement obligation   (2,333 )   19,522  
Depreciation capitalized   140     4,136  
Share-based compensation capitalized   253     2,127  
Transfers   -     (11,221 )
Impairment   -     (58,417 )
Other adjustments   1,616     585  
Currency translation adjustments   940     (1,820 )
             
Cost - End of period   489,316     475,621  
             
Accumulated depreciation - Beginning of period   -     -  
Depreciation   517     -  
Currency translation adjustments   9     -  
Accumulated depreciation - End of period   526     -  
             
Cost   489,316     475,621  
Accumulated depreciation   (526 )   -  
Net book value   488,790     475,621  

Osisko Gold Royalties holds a 5% NSR royalty on the Cariboo and Bonanza Ledge properties and a 15% gold and silver stream on the San Antonio property. The Cariboo and Bonanza Ledge properties 5% NSR royalty is perpetual and is secured by a debenture on all of Barkerville movable and immovable assets, including Barkerville's interest in the property and mineral rights, in an amount of not less than $150 million. The security shall be first ranking, subject to permitted encumbrances.


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

8. Property, plant and equipment

    Land and
Buildings
    Machinery
and
Equipment
    Construction-
in-progress
    March 31,
2022
    December 31,
2021
 
    $     $     $     $     $  
                               
Cost- Beginning of period   18,859     50,133     24,249     93,241     25,713  
                               
Additions   347     2,413     787     3,547     58,153  
                               
Disposals   -     -     -     -     (166 )
                               
Write-off   (33 )   (349 )   -     (382 )   (4,293 )
                               
Other adjustments   -     (2,853 )   -     (2,853 )   2,506  
                               
Transfers   -     12,057     (12,057 )   -     11,221  
                               
Currency translation adjustments   3     320     (60 )   263     107  
                               
Cost - End of period   19,176     61,721     12,919     93,816     93,241  
                               
Accumulated depreciation - Beginning of period   2,385     7,144     -     9,529     4,515  
                               
Depreciation   331     2,732     -     3,063     6,754  
                               
Other adjustments   -     (355 )   -     (355 )   2,496  
                               
Write-off   -     (81 )   -     (81 )   (4,236 )
                               
Currency translation adjustments   -     19     -     19     -  
Accumulated depreciation - End of period   2,716     9,459     -     12,175     9,529  
                               
Cost   19,176     61,721     12,919     93,816     93,241  
                               
Accumulated depreciation   2,716     9,459     -     12,175     (9,529 )
                               
Net book value   16,460     52,262     12,919     81,641     83,712  

Property, plant and equipment includes right-of-use assets with a carrying value of $4.8 million as at March 31, 2022 ($12.9 million as at December 31, 2021).


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

9. Exploration and evaluation

    March 31,     December 31,  
    2022     2021  
    $     $  
             
Net book value - Beginning of period   3,635     41,870  
Additions   5     3,783  
Impairment   -     (42,018 )
Net book value - End of period   3,640     3,635  
             
Cost   103,847     103,842  
Accumulated impairment   (100,207 )   (100,207 )
Net book value - End of period   3,640     3,635  

10. Accounts payable and accrued liabilities

    March 31,     December 31,  
    2022     2021  
    $     $  
Trade payables   23,787     11,756  
Other payables   5,148     5,335  
Income taxes payable   -     65  
Accrued liabilities   7,156     7,961  
    36,091     25,117  


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

11. Long-term debt

    March 31,     December 31,  
    2022     2021  
    $     $  
             
Balance - Beginning of period   3,764     -  
Additions- mining equipment financing   3,870     4,015  
Repayment of liabilities   (605 )   (251 )
Balance - End of period   7,029     3,764  
             
Current long term debt   3,181     1,610  
Non-current long term debt   3,848     2,154  
    7,029     3,764  

12. Lease liabilities

The movement of the lease liabilities for the three months ended March 31, 2022 is as follows:

    March 31,     December 31,  
    2022     2021  
    $     $  
Balance - Beginning of period   9,866     2,035  
Additions   -     13,576  
Repayment of liabilities   (4,992 )   (5,745 )
Lease modifications and extinguishment   (1,610 )   -  
Balance - End of period   3,264     9,866  
             
Current liabilities   2,514     8,104  
Non-current liabilities   750     1,762  
    3,264     9,866  

13. Contract liability

On November 20, 2020, Sapuchi completed a gold and silver stream agreement with Osisko Bermuda Ltd, a subsidiary of Osisko Gold Royalties for US$15.0 million ($19.1 million). An amount of US$10.5 million was contributed in November 2020 and the remaining US$4.5 million was paid in February 2021.

Under the terms of the stream agreement, Osisko Bermuda Ltd will purchase 15% of the payable gold and silver from the San Antonio gold project at a price equal to 15% of the daily per ounce gold and silver market price. The initial term of the stream agreement is for 40 years and can be renewed for successive 10 year periods. The stream is also secured with (i) a first priority lien in all of the collateral now owned or hereafter acquired; (ii) a pledge by Osisko Development of its shares of Sapuchi Minera Holdings Two B.V. and (iii) a guarantee by Osisko Development. The interest rate used to calculate the accretion on the contract liability's financing component is 24%.


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

13. Contract Liability (continued)

The movement of the contract liability is as follows:

    March 31,     December 31,  
    2022     2021  
    $     $  
             
Balance - Beginning of period   24,820     14,007  
Deposits   -     5,652  
Accretion on the contract liability's financing component   1,518     5,169  
Cumulative catch-up adjustment   (351 )   507  
Currency translation adjustment   295     (515 )
Balance - End of period   26,282     24,820  
             
Current liabilities   3,800     3,822  
Non-current liabilities   22,482     20,998  
    26,282     24,820  

Under IFRS 15, the stream agreement is considered to have a significant financing component. The Company therefore records notional non-cash interest, which is subject to capitalization into Mining interests, as borrowing costs.

14. Flow-through shares liability

    March 31,     December 31,  
    2022     2021  
    $     $  
             
Balance - Beginning of period   914     -  
Deferred premium on flow-through shares issued, net of share issue costs   -     7,885  
Recognition of deferred premium on flow-through share   (341 )   (6,971 )
Balance - End of year   573     914  

The Company is committed to spending the proceeds on exploration activities by December 31, 2022. As at March 31, 2022, the balance remaining to be spent totals $2.4 million. 


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

15. Environmental rehabilitation provision

    March 31,     December 31,  
    2022     2021  
    $     $  
Balance - Beginning of period   53,236     34,601  
Acquisition of San Antonio gold project   -     -  
New liabilities   195     20,433  
Revision of estimates   (3,163 )   (1,457 )
Accretion expense   447     1,192  
Settlement of liabilities / payment of liabilities   (463 )   (1,240 )
Currency translation adjustment   83     (293 )
Balance - End of period   50,335     53, 236  
             
Current liabilities   2,870     2,287  
Non-current liabilities   47,465     50,949  
    50,335     53,236  

The environmental rehabilitation provision represents the legal and contractual obligations associated with the eventual closure of the Company's mining interests, property, plant and equipment and exploration and evaluation assets. As at March 31, 2022, the estimated inflation-adjusted undiscounted cash flows required to settle the environmental rehabilitation amounts to $62.6 million. The weighted average actualization rate used is 6.32% and the disbursements are expected to be made between 2022 and 2030 as per the current closure plans. 


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

16. Share capital and warrants

Shares

Authorized: unlimited number of common shares, without par value

Issued and fully paid: 142,764,305 common shares

2022 Brokered private placement

On March 2, 2022, the Company completed a Brokered Private Placement issuing 9,525,850 Brokered Units at a price of $4.45 for gross proceeds of $42.4 million and 13,732,900 Brokered Subscription Receipts at a price of $4.45 for gross escrowed proceeds of $61.1 million. Each Brokered Unit is comprised of one common share and one warrant, with each warrant entitling the holder to purchase one additional common share at a price of $7.60 per common share for a period of 5 years following the closing date of the Brokered Private Placement. Each Brokered Subscription Receipt will entitle the holder to receive, upon the satisfaction of the Brokered Escrow Release Condition (as defined below), and without payment of additional consideration, one Brokered Unit. Issuance costs related to the Brokered Units issued amounted to $2.1 million and have been allocated against the common shares and warrants issued. Issuance costs of $1.3 million related to the issuance of Brokered Subscription Receipts are recognized as deferred financing fees, included in other current assets in the statements of financial position. The fair value of the warrants issued was evaluated using the residual method and were valued at $0.6 million, net of issuance costs.

The Brokered Subscription Receipts will be automatically converted into Units, and the escrowed proceeds and interest earned thereon (less Underwriters' Fee payable in respect of the Subscription Receipts) will be released to the Company, provided that on or before June 15, 2022, the following Brokered Escrow Release Conditions have been satisfied: (a) the completion, satisfaction or waiver of all conditions precedent to the Tintic acquisition in accordance with the Tintic definitive agreements; and (b) the Company and the Underwriters, having delivered a completion notice and direction to the Escrow Agent in accordance with the terms of the Subscription Receipt Agreement confirming that the condition set forth in (a) above has been met. The Brokered Private Placement is subject to final acceptance of the TSX-V and other regulatory approvals.

2022 Non-Brokered private placements

The Company completed three tranches of the Non-Brokered Private Placements, issuing Non-Brokered Subscription Receipts at a price of USD$3.50 (i) the first tranche closed on March 4, 2022 issuing 24,215,099 Non-Brokered Subscription Receipts for gross proceeds of USD $84.8 million (CAD $108.1 million) (ii) the second tranche of the Non-Brokered Private Placement closed on March 29, 2022 issuing 9,365,689 Non-Brokered Subscription Receipts for gross proceeds of USD $32.8 million (CAD $41 million), and (iii) the third tranche of the Non-Brokered Private Placement closed on April 21, 2022 issuing 512,980 Non-Brokered Subscription Receipts for gross proceeds of USD $1.8 million (CAD $2.2 million).

Each Non-Brokered Subscription Receipt will entitle the holder to receive, upon the satisfaction of the Non-Brokered Escrow Release Condition (as defined below), and without payment of additional consideration, one Unit. Each Unit is comprised of one common share and one common share purchase warrant, with each warrant entitling the holder to purchase one additional common share at a price of USD$6.00 per common share for a period of 5 years from the date of issue. These warrants represent a financial liability as the exercise price per share is denominated in USD, different from the Company's CAD functional currency. As such, they will be recognized at fair value when the release condition is satisfied and will subsequently be re-measured with the change in fair value being recognized in the statement of loss. Issuance costs incurred as of March 31, 2022 amounted to $1.4 million related to the issuance of Non-Brokered Subscription Receipts are recognized as deferred financing fees included in other current assets the statements of financial position.

The Non-Brokered Subscription Receipts will be automatically converted into Units, and the escrowed proceeds and interest earned thereon will be released to the Company, upon listing the Company's common shares on the New York Stock Exchange on or before June 15, 2022 (the "Non-Brokered Escrow Release condition"). The Non-Brokered Private Placement is subject to final acceptance of the TSX-V and other regulatory approvals.

Escrowed proceeds (net of Broker commissions paid) of $206.5 million from both the Brokered and Non-Brokered Private placements are reflected as restricted cash and a corresponding subscription receipt liability of $208 million has been recognized in the statements of financial position as of March 31, 2022. In the event that Escrow Release Conditions are not met under the terms of the escrow agreements, all Subscription Receipt proceeds from both Brokered and Non-Brokered Financings are redeemable.


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

16. Share Capital and warrants (continued)

2021 Non-brokered private placement

In January and February 2021, Osisko Development closed the first and final tranches respectively of a non-brokered private placement for 10,862,195 units of Osisko Development at a price of $7.50 per unit (or the Canadian dollar equivalent of US$5.75 per unit) for aggregate gross proceeds of approximately $79.8 million. Each unit consists of one common share of Osisko Development and one-half of one common share purchase warrant of Osisko Development, with each whole warrant entitling the holder thereof to acquire one common share of Osisko Development at a price of $10.00 per share (or the prevailing U.S. dollar equivalent at the time of exercise) on or prior to December 1, 2023. Share issue expenses related to this private placement amounted to $1.1 million.

2021 Flow-Through and Charity Flow-Through financing

In March 2021, the Company closed a bought deal private placement of: (i) 2,055,742 flow-through shares ("FT Shares") of the Company at a price of $9.05 per FT Shares; and (ii) 1,334,500 charity flow-through shares of the Company ("Charity FT Shares") at a price of $11.24 per Charity FT Share, for aggregate gross proceeds of $33.6 million. The carrying value of the FT shares and the Charity FT shares is presented net of the liability related to the premium on FT shares of $7.9 million, which was recorded at the date of the issuance of the FT shares and the Charity FT shares. Share issue expenses related to this private placement amounted to $1.5 million.

Employee Share Purchase Plan

The Company offers an employee share purchase plan to its employees. Under the terms of the plan, the Company contributes an amount equal to 60% of the eligible employee's contribution towards the acquisition of common shares from treasury on a quarterly basis. Under this plan, no employee shall acquire common shares which exceeds 10% of the issued and outstanding common shares of the issuer at the time of the acquisition.

Warrants

The following table summarizes the Company's movements for the warrants outstanding:

          March 31, 2022     December 31, 2021  
          Weighted           Weighted  
    Number of     average     Number of     average  
    Warrants     exercise price     Warrants     exercise price  
          $           $  
                         
Balance - Beginning of period   14,789,373     10.00     9,358,525     10.00  
Issued - Brokered private placement (i)   9,525,850     7.60     -     -  
Issued - Non-brokered private placement(i)   -     -     5,431,098     10.00  
Warrants exercised   -     -     (250 )   10.00  
Balance - End of period (i)   24,315,223     9.06     14,789,373     10.00  

(i) The warrants have a maturity date of December 1, 2023 and March 2, 2027


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

17. Share-based compensation

Share options

The Company offers a share option plan to directors, officers, management, employees and consultants.

The following table summarizes information about the movement of the share options outstanding under the Company's plan:

    March 31, 2022     December 31, 2021  
          Weighted           Weighted  
    Number of     average     Number of     average  
          exercise           exercise  
    options     price     options     price  
          $           $  
                         
Balance - Beginning of period   2,093,600     7.07     1,199,100     7.62  
                         
Granted   -     -     1,005,600     6.47  
Forfeited   (28,000 )   5.40     (111,100 )   7.55  
Balance - End of period   2,065,600     7.09     2,093,600     7.07  
Options exercisable - End of period   -     -     -     -  

The following table summarizes the share options outstanding as at March 31, 2022:

                Options outstanding  
                Weighted  
                average  
          Exercise     remaining contractual  
Grant date   Number     price     life (years)  
          $        
December 22, 2020   1,102,100     7.62     3.73  
February 4, 2021   31,600     8.10     3.85  
June 23, 2021   547,100     7.10     4.23  
August 16, 2021   149,700     5.63     4.38  
November 12, 2021   235,100     5.40     4.62  
    2,065,600     7.09     4.01  

The fair value of the share options is recognized as compensation expense over the vesting period. During the three months ended March 31, 2022, the total share-based compensation related to share options granted under the Company's plan on the consolidated statements of loss amounted to $1.3 million ($0.4 million for the three months ended March 31, 2021) including $0.2 million capitalized to mining interests and exploration and evaluation assets ($0.2 million for the three months ended March 31, 2021).


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

17. Share-based compensation (continued)

Deferred and restricted share units ("DSU" and "RSU")

The Company offers a DSU plan and a RSU plan, which allow DSU and RSU to be granted to directors, officers and employees as part of their long-term compensation package. All such plans are classified as equity-settled plans.

The following table summarizes information about the DSU and RSU movements:

          March 31, 2022     December 31, 2021  
    DSU(i)     RSU     DSU(i)     RSU  
                         
Balance - Beginning of period   239,350     1,036,180     170,620     -  
Granted   -     -     68,730     599,000  
Replacement RSU granted(ii)   -     -     -     458,450  
Forfeited   -     -     -     (21,270 )
Balance - End of period   239,350     1,036,180     239,350     1,036,180  
Balance - Vested   -     -     -     -  

(i) Unless otherwise decided by the board of directors of the Company, the DSU vest the day prior to the next annual general meeting and are payable in common shares, cash or a combination of common shares and cash, at the sole discretion of the Company, to each director when he or she leaves the board or is not re-elected. The value of the payout is determined by multiplying the number of DSU expected to be vested at the payout date by the closing price of the Company's shares on the day prior to the grant date. The fair value is recognized over the vesting period. On the settlement date, one common share will be issued for each DSU, after deducting any income taxes payable on the benefit earned by the director that must be remitted by the Company to the tax authorities.

(ii) Following the launch of Osisko Development, Osisko Gold Royalties and Osisko Development mutually agreed that a pro-rata portion of the outstanding long-term equity incentive compensation awarded by Osisko Gold Royalties to their employees that transferred to Osisko Development would be exchanged for restricted shares units of Osisko Development ("Replacement RSU") and the related Osisko Gold Royalties RSUs would be cancelled. Accordingly, on June 1, 2021, 458,450 Replacement RSU were granted to officers and employees who held Osisko Gold Royalties RSUs that were cancelled. The maturity date is the same as the maturity date of the corresponding Osisko Gold Royalties RSUs cancelled. Replacement RSUs are payable in common shares, cash or a combination of common shares and cash, at the sole discretion of the Company.

The remaining RSUs granted vest and are payable in common shares, cash or a combination of common shares and cash, at the sole discretion of the Company, three years after the grant date, one half of which depends on the achievement of certain performance measures.

The total share-based compensation expense related to the Company's DSU and RSU plans for the three months ended March 31, 2022 amounted to $0.6 million ($0.2 million for three months ended March 31, 2021) and $0.1 million capitalized to mining interests (nil for the three months ended March 31, 2021).

Based on the closing price of the common shares at March 31, 2022 ($4.19) and considering a marginal income tax rate of 53.3%, the estimated amount that the Company is expected to transfer to the tax authorities to settle the employees' tax obligations related to the RSU and DSU outstanding amounts to $2.8 million ($2.7 million as at December 31, 2021).

Parent Company's share based compensation

Prior to the RTO transaction, the Parent Company offered a share option plan and a RSU plan for the benefit of the Company's senior management and directors. The fair value of the share options and RSU is recognized as compensation expense over the vesting period. For the three months ended March 31, 2022, the total share-based compensation related to share options and RSUs granted under the Parent Company's plan on the consolidated statements of loss was an expense of $0.1 million ($0.8 million for the three months ended March 31, 2021).


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

18. Cost of sales and other operating costs

    March 31,     March 31,  
    2022     2021  
    $     $  
Salaries and benefits   2,882     -  
Share-based compensation   125     -  
Royalties   458     -  
Contract services   8,956     -  
Raw materials and consumables   3,903     -  
Operational overhead and write-downs   4,682     -  
Depreciation   3,407     -  
    24,413     -  

19. General and administrative expenses

    March 31,     March 31,  
    2022     2021  
    $     $  
             
Salaries and benefits   1,368     1,787  
Share-based compensation   1,756     1,203  
Insurance   385     138  
Depreciation   40     21  
Other administrative expenses   4,258     1,715  
    7,807     4,864  

 


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

20. Other income, net

    March 31,     March 31,  
    2022     2021  
    $     $  
             
Interest income, net   83     312  
Foreign exchange gain (loss)   369     (1,065 )
Premium on flow-through shares   341     469  
Gain on dilution   -     1,391  
Other   795     (268 )
    1,290     839  

21. Loss per share


    March 31,     March 31,  
    2022     2021  
    $     $  
             
Net loss attributable to shareholders of the Company   (22,332 )   (3,701 )
             
Basic and diluted weighted average number of common shares outstanding   45,433,489     42,955,117  
             
Net loss per share, basic and diluted   (0.49 )   (0.09 )

The weighted average basic and diluted shares outstanding for all the periods presented have been adjusted to reflect the effect of the 3:1 share consolidation that took place on May 4, 2022.

Excluded from the calculation of the diluted loss per share for the three months ended March 31, 2022 are 24,315,223 (8,105,074 post share consolidation) common share purchase warrants and 2,065,600 (688,533 post share consolidation) stock options, as their effect would be anti-dilutive.

22. Supplementary cash flows information

    March 31,     March 31,  
    2022     2021  
    $     $  
Changes in non-cash working capital items            
Decrease (increase) in amounts receivable   214     (717 )
Increase in inventory   (6,417 )   (8,691 )
Increase (decrease) in other current assets   (1,005 )   358  
Increase (decrease) in accounts payable and accrued liabilities   7,580     (3,076 )
    372     (12,126 )

 


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

23. Fair value of financial instruments

The following table provides information about financial assets and liabilities measured at fair value in the consolidated statements of financial position and categorized by level according to the significance of the inputs used in making the measurements.

Level 1- Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2- Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and

Level 3-Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

                      March 31, 2022  
    Level 1     Level 2     Level 3     Total  
    $     $     $     $  
Recurring measurements                        
                         
Financial assets at fair value through profit or loss                        
Convertible loan receivable   -     -     10,622     10,622  
Warrants on equity securities                        
Publicly traded mining exploration and development companies                        
Precious metals   -     -     354     354  
Other minerals   -     -     33     33  
Financial assets at fair value through other comprehensive loss                        
Equity securities                        
Publicly traded mining exploration and development companies                        
Precious metals   14,674     -     -     14.674  
Other minerals   6,473     -     -     6,473  
    21,147     -     11,009     32,156  

 


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

23. Fair value of financial instruments (continued)

    December 31, 2021  
    Level 1     Level 2     Level 3     Total  
    $     $     $     $  
Recurring measurements                        
                         
Financial assets at fair value through profit or loss                        
Convertible loan receivable   -     -     6,339     6,339  
Warrants on equity securities                        
Publicly traded mining exploration and development companies                        
Precious metals   -     -     571     571  
Other minerals   -     -     42     42  
Financial assets at fair value through other comprehensive loss                        
Equity securities                        
Publicly traded mining exploration and development companies                        
Precious metals   35,714     -     -     35,714  
Other minerals   6,850     -     -     6,850  
    42,564     -     6,952     49,516  

During the period ended March 31, 2022 and 2021 there were no transfers among Level 1, Level 2 and Level 3.

The following table presents the changes in the Level 3 investments (warrants and convertible loan) for the three months ended March 31, 2022 and the year ended December 31, 2021:

    March 31,     December  
    2022     31, 2021  
    $     $  
             
Balance - Beginning of period   6,952     1,892  
Acquisitions   4,438     6,915  
Warrants exercised   -     (1,122 )
Change in fair value - warrants exercised (i)   -     300  
Change in fair value - expired (i)   (287 )   (15 )
Change in fair value - held at the end of the year (i)   (94 )   (1,018 )
             
Balance - End of period   11,009     6,952  

(i) Recognized in the consolidated statements of loss under other income, net.

The fair value of the financial instruments classified as Level 3 depends on the nature of the financial instruments.

The fair value of the warrants on equity securities of publicly traded mining exploration and development companies and the convertible debentures, classified as Level 3, is determined using the Black-Scholes option pricing model or discounted cash flows. The main non-observable input used in the model is the expected volatility. An increase/decrease in the expected volatility used in the models of 10% would lead to an insignificant variation in the fair value of the warrants as at March 31, 2022 and December 31, 2021.


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

24. Segmented information

The chief operating decision-maker organizes and manages the business under operating segments, being the acquisition, exploration and development of mineral properties.

The assets related to the exploration, evaluation and development of mining projects are located in Canada and in Mexico, and are detailed as follows as at March 31, 2022 and December 31, 2021:

    March 31, 2022  
    Canada     Mexico     Total  
    $     $     $  
Other assets (non-current)   4,264     12,888     17,152  
Mining interest   404,886     83,904     488,790  
Property, plant and equipment   59,360     22,281     81,641  
Exploration and evaluation assets   3,640     -     3,640  
Total non-current assets   472,150     119,073     591,223  
             
    December 31, 2021  
    Canada     Mexico     Total  
    $     $     $  
Other assets (non-current)   3,767     12,484     16,251  
Mining interest   394,329     81,292     475,621  
Property, plant and equipment   61,520     22,192     83,712  
Exploration and evaluation assets   3,635     -     3,635  
Total non-current assets   462,148     115,968     578,116  


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

24. Segmented information (continued)

    Canada     Mexico     Total  
    $     $     $  
                   
For the period ended March 31, 2022                  
Revenues   9,167     -     9,167  
Cost of sales   (9,167 )   -     (9,167 )
Other operating costs   (7,372 )   (7,874 )   (15,246 )
General and administrative expenses   (6,657 )   (1,150 )   (7,807 )
Exploration and evaluation   (120 )   -     (120 )
Operating Loss   (14,149 )   (9,024 )   (23,173 )
                   
For the period ended March 31, 2021                  
General and administrative expenses   (4,378 )   (486 )   (4,864 )
Exploration and evaluation   (337 )   -     (337 )
Operating Loss   (4,715 )   (486 )   (5,201 )

During the three months ended March 31, 2021, revenue, cost of sales and other operating costs were $nil.


Osisko Development Corp.

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021
(Unaudited)

(Tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

26. Proposed acquisition of Tintic Consolidated Metals

On January 25, 2022, Osisko Development announced that it had entered into definitive agreements with IG Tintic LLC and Ruby Hollow LLC (together the "Vendors") to acquire 100% of Tintic Consolidated Metals LLC (the "Tintic Acquisition"). On completion of the Tintic Acquisition, Osisko Development will acquire 100% ownership of the producing Trixie mine, as well as mineral claims covering more than 17,000 acres (including over 14,200 acres of which are patented) in Central Utah's historic Tintic Mining District.

Pursuant to the terms of the Tintic Acquisition, Osisko Development will acquire 100% of Tintic from the Vendors for aggregate payments at closing totaling approximately US$177 million, of which approximately US$54 million will be paid in cash and approximately US$123 million will be paid by the issuance of 35,099,611 common shares of Osisko Development at a price of C$4.3183 per share (as adjusted by the 3:1 share consolidation, effective in May 4, 2022).

In addition, Osisko Development will pay the Vendors: (i) deferred payments of US$12.5 million payable in equal instalments annually over five years in cash or common shares at Osisko Development's election; (ii) two 1% NSR royalty grants, each with a 50% buyback right in favour of Osisko Development for US$7.5 million which is exercisable within 5 years; (iii) a right to receive the financial equivalent of 10% of the net smelter returns from stockpiled ore extracted from the Trixie mine since January 1, 2018 and sitting on surface; (iv) the set-off of a US$5 million loan owed to Osisko Development; and (v) US$10 million contingent upon commencement of production at the Burgin Mine.

Osisko Bermuda Limited has entered into a non-binding metals stream term sheet (the "Tintic Stream") with a wholly- owned subsidiary of Osisko Development. The upfront cash payment under the Tintic Stream, of at least US$20 million and up to US$40 million, will be used by Osisko Development to fund a portion of the cash consideration payable on closing of the Tintic Acquisition. In the event that the full amount of US$40 million is drawn, Osisko Development will deliver to Osisko Bermuda a maximum of 5% of all metals produced from the Tintic property up to a maximum of 53,400 ounces of refined gold and 4.0% thereafter.

The Tintic Acquisition is expected to close in the second quarter of 2022, subject to satisfaction of regulatory approvals and customary closing conditions.

27. Subsequent events

Share Consolidation

On April 26, 2022, the shareholders and board of directors of the Company approved a share consolidation on a 3 for one basis, subject to receipt of necessary approvals. The share consolidation was effective May 4, 2022.

Private Placements

Refer note 16.



Osisko Development Corp.: Exhibit 99.44 - Filed by newsfilecorp.com

OSISKO DEVELOPMENT TO COMMENCE TRADING ON THE
NEW YORK STOCK EXCHANGE

Montréal, May 23, 2022 - Osisko Development Corp. ("Osisko Development" or the "Corporation") (ODV: TSX-V) is pleased to announce that it has been approved to list its common shares (the "Common Shares") on the New York Stock Exchange ("NYSE"). The Common Shares are expected to commence trading on the NYSE on May 27, 2022 under the trading ticker symbol "ODV". Osisko Development will retain its listing on the TSX Venture Exchange ("TSXV") under the symbol "ODV".

Upon the Common Shares commencing trading on the NYSE, the escrow release condition relating to the subscription receipts of the Corporation (the "Subscription Receipts") issued on March 4, 2022, March 29, 2022 and April 21, 2022 will be satisfied. Upon the satisfaction of such escrow release condition, a total of US$119.4 million in cash proceeds will be automatically released by TSX Trust Company, as subscription receipt agent, to the Corporation, and the Subscription Receipts will convert, without any action on the part of the holders thereof, into the underlying securities.

Sean Roosen, Chair and Chief Executive Officer of Osisko Development, stated: "We are very pleased to announce our listing on the NYSE, another milestone in positioning Osisko Development for growth. We continue to focus on value creation for our shareholders, and listing on the NYSE provides our U.S. based shareholders with direct trading while also improving our access to capital."

"We are excited to welcome Osisko Development to the NYSE community," said John Tuttle, Vice Chair and Chief Commercial Officer, NYSE Group. "We look forward to working with the company to deliver the benefits of our unique market model and world-class services."

About Osisko Development Corp.

Osisko Development Corp. is uniquely positioned as a premier gold development company in North America to advance the Cariboo Gold Project and other Canadian and Mexican properties, with the objective of becoming the next mid-tier gold producer. The Cariboo Gold Project, located in central British Columbia, is Osisko Development's flagship asset. The considerable exploration potential at depth and along strike distinguishes the Cariboo Gold Project relative to other development assets. Osisko Development's project pipeline is complemented by its interest in the San Antonio gold project, located in Sonora.



For further information about Osisko Development Corp., please contact:

   

Sean Roosen, CEO

Telephone: (514) 940-0685

Email: sroosen@osiskodev.com

Jean Francois Lemonde, VP Investor Relations

Telephone: (514) 299-4926
Email: jflemonde@osiskodev.com


Follow us on our Social Media Platforms:

Facebook:

https://www.facebook.com/osiskodev

Linked In:

http://www.linkedin.com/company/osisko-dev

Youtube:

https://www.youtube.com/channel/UC-1LPPhZ9WZnOuWsf6mRWhw

Twitter:

https://twitter.com/OsiskoDev

Cautionary Note Regarding Forward-Looking Information

This news release contains forward-looking statements within the meaning of applicable Canadian and U.S. securities laws. These forward-looking statements, by their nature, require the Corporation to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Words such as "may", "will", "would", "could", "expect", "believe", "plan", "anticipate", "intend", "estimate", "continue", or the negative or comparable terminology, as well as terms usually used in the future and the conditional, are intended to identify forward-looking statements.

Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection. The Corporation considers its assumptions to be reasonable based on information currently available, but cautions the reader that its assumptions regarding future events, many of which are beyond the control of the Corporation, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect the Corporation and its business.

For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made in this news release, refer to the Corporation's most recent Annual information Form filed on SEDAR (www.sedar.com) under the Corporation's issuer profile and available under the Corporation's profile at the U.S. Securities and Exchange Commission's EDGAR website (www.sec.gov). The forward-looking information set forth herein reflects the Corporation's expectations as at the date of this news release and is subject to change after such date. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.




Osisko Development Corp.: Exhibit 99.45 - Filed by newsfilecorp.com


Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

Date and Signature Page

This technical report is effective as of the 24th day of May 2022.

"Signed and Sealed original on file"

 

May 24, 2022

Colin Hardie, P.Eng.

 

Date

BBA Engineering Ltd.

 

 

 

"Signed and Sealed original on file"

 

May 24, 2022

Mathieu Bélisle, P.Eng.

 

Date

BBA Engineering Ltd.

 

 

 

"Signed and Sealed original on file"

 

May 24, 2022

Carl Pelletier, P.Geo.

 

Date

InnovExplo Inc.

 

 

 

"Signed and Sealed original on file"

 

May 24, 2022

Vincent Nadeau-Benoit, P.Geo.

 

Date

InnovExplo Inc.

 

 

 

"Signed and Sealed original on file"

 

May 24, 2022

Éric Lecomte, P.Eng.

 

Date

InnovExplo Inc.

 

 


MAY 2022

BBA Document No.: 3772035-000000-40-ERA-0001-R00



Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project


"Signed and Sealed original on file"   May 24, 2022

Tim Coleman, P.Eng.

SRK Consulting (Canada) Inc.

  Date
     
     
     
"Signed and Sealed original on file"   May 24, 2022

Paul Gauthier, P.Eng.

WSP Canada Inc. (WSP Golder)

  Date
     
     
     
"Signed and Sealed original on file"   May 24, 2022

Aytaç Göksu, P.Eng.

WSP Canada Inc. (WSP Golder)

  Date
     
     
     
"Signed and Sealed original on file"   May 24, 2022
Tom Rutkowski, P.Eng.
WSP USA Inc. (WSP Golder)
  Date
     
     
     
"Signed and Sealed original on file"   May 24, 2022

John Cunning, P.Eng.

WSP Canada Inc. (WSP Golder)

  Date

MAY 2022

BBA Document No.: 3772035-000000-40-ERA-0001-R00



Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project


"Signed and Sealed original on file"   May 24, 2022

Kristin Salzsauler, P.Geo.

WSP Canada Inc. (WSP Golder)

  Date
     
     
     
"Signed and Sealed original on file"   May 24, 2022
Éric Poirier, P.Eng., PMP
WSP Canada Inc. (WSP)
  Date
     
     
     
"Signed and Sealed original on file"   May 24, 2022

David Willms, P.Eng.

Klohn Crippen Berger

  Date
     
     
     
"Signed and Sealed original on file"   May 24, 2022

Michelle Liew, P.Eng.

Klohn Crippen Berger

  Date
     
     
     
"Signed and Sealed original on file"   May 24, 2022

Katherine Mueller, P.Eng.

Falkirk Environmental Consultants Ltd.

  Date

MAY 2022

BBA Document No.: 3772035-000000-40-ERA-0001-R00



Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

TABLE OF CONTENTS

1. SUMMARY 1-1
       
  1.1. Contributors 1-1
       
  1.2. Key Project Outcomes 1-3
       
  1.3.  Property Description and Ownership 1-4
       
  1.4. Geology and Mineralization 1-5
       
  1.5.  Status of Exploration and Drilling 1-6
       
  1.6. Mineral Resource Estimate 1-6
       
  1.7. Mining Methods 1-10
         
    1.7.1 Overview  1-10
    1.7.2 Geotechnical Evaluation  1-11
    1.7.3 Mining Method Description  1-12
    1.7.4 Mine Design  1-12
    1.7.5 Underground Infrastructure  1-12
    1.7.6 Development Schedule  1-13
    1.7.7 Electrical Distribution and Networks  1-13
    1.7.8 Mine Automation and Monitoring Systems 1-13
    1.7.9 Permanent Mine Pumping Network  1-14
    1.7.10 Ventilation  1-14
    1.7.11 Production Rate 1-14
    1.7.12 Production Plan  1-14
    1.7.13 Mine Equipment and Personnel 1-15
       
  1.8.  Mineral Processing and Metallurgical Testing 1-16
       
  1.9. Recovery Methods 1-16
       
  1.10.  Project Infrastructure 1-17
       
  1.11.  Environmental and Permitting 1-18
         
    1.11.1 Regulatory Context and Environmental Studies  1-18
    1.11.2 Considerations of Social and Community Impacts  1-19
    1.11.3 Mine Reclamation and Closure Plan  1-19
       
  1.12.  Capital and Operating Costs Estimates 1-20
         
    1.12.1 Capital Costs  1-20
    1.12.2 Operating Costs  1-21
       
  1.13.  Project Economics 1-23
       
  1.14.  Project Schedule and Organization 1-26
       
  1.15.  Interpretations and Conclusions 1-27
         
    1.15.1 Risks and Opportunities 1-29
       
  1.16.  Recommendations 1-30

MAY 2022

i



Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project


2. INTRODUCTION  2-1
       
  2.1.  Barkerville Gold Mines Division 2-1
       
  2.2.  Basis of Technical Report 2-1
       
  2.3.  Report Responsibility and Qualified Persons 2-2
       
  2.4.  Effective Dates and Declaration 2-5
       
  2.5. Sources of Information 2-5
         
    2.5.1. General 2-5
    2.5.2. BBA Engineering Ltd. 2-6
    2.5.3. InnovExplo Inc. 2-7
    2.5.4. SRK Consulting (Canada) Inc. 2-8
    2.5.5. WSP Golder 2-8
    2.5.6. WSP Canada Inc.  2-9
    2.5.7. Klohn Crippen Berger Ltd.  2-9
    2.5.8. Falkirk Environmental Consultants Ltd.  2-9
       
  2.6. Site Visits 2-10
       
  2.7.  Currency, Units of Measure and Calculations 2-11
       
  2.8. Acknowledgement 2-11
     
3. RELIANCE ON OTHER EXPERTS 3-1
       
  3.1.  Mineral Tenure and Surface Rights 3-1
       
  3.2. Taxation and Royalties 3-1
     
4. PROPERTY DESCRIPTION AND LOCATION 4-1
       
  4.1. Location 4-1
       
  4.2. Mineral Title Status 4-1
       
  4.3.  Acquisition of the Cariboo Gold Project 4-7
       
  4.4.  Agreement and Royalties with Osisko Gold Royalties Ltd. 4-7
       
  4.5.  Surface Rights Option Agreements 4-9
       
  4.6. Environment 4-12
       
    4.6.1. Environmental Liabilities  4-12
    4.6.2. Required Permits and Status  4-12
     
5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTION AND PHYSIOGRAPHY 5-1
       
  5.1. Accessibility 5-1
       
  5.2.  Infrastructure and Local Resources 5-2
       
  5.3. Climate 5-3
       
  5.4. Physiography 5-4

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Preliminary Economic Assessment for the Cariboo Gold Project


6. HISTORY 6-1
         
  6.1. Historical Mines 6-1
         
    6.1.1 Cariboo Gold Quartz Mine 6-1
    6.1.2 Island Mountain Mine (Aurum Mine)  6-2
    6.1.3 Mosquito Creek Mine 6-2
       
  6.2. Surface Work Programs 6-3
         
    6.2.1. Cariboo Gold Quartz Mining Company Ltd. (1968)  6-3
    6.2.2. Wharf Resources Ltd. (1980-1981)  6-3
    6.2.3. Blackberry Gold Resources Inc. (1988) 6-4
    6.2.4. Pan Orvana Resources Inc. (1989-1991) 6-4
    6.2.5. Gold City Mining Corp. (1994-1995) 6-4
       
  6.3.  International Wayside Gold Mines Ltd. (1999-2014) 6-5
       
  6.4. International Wayside Gold Mines Ltd. (1995-2009) 6-6
         
    6.4.1. 1995-1999 Work Programs  6-6
    6.4.2. 2000-2009 Work Programs  6-7
       
  6.5. Barkerville Gold Mines Ltd. (2010-2014)  6-11
         
    6.5.1. 2010-2011 Work Programs 6-12
    6.5.2. 2012 Work Program  6-12
    6.5.3. 2013 Work Program  6-13
    6.5.4. 2014 Work Program  6-14
       
  6.6.  Barkerville Gold Mines Ltd. (2015-2021) 6-14
         
7. GEOLOGICAL SETTING AND MINERALIZATION 7-1
         
  7.1. Introduction & Clarification 7-1
       
  7.2. Regional Geological Setting 7-1
         
    7.2.1. Snowshoe Group Stratigraphy  7-7
    7.2.2. Metamorphism  7-10
       
  7.3. Property Geology 7-10
       
  7.4. Structural Geology 7-18
         
    7.4.1. Deformation 1 7-18
    7.4.2. Deformation 2 7-19
    7.4.3. Deformation 3 7-19
    7.4.4. Deformation 4 7-21
       
  7.5. Mineralization and Alteration 7-21
         
    7.5.1. Vein-related Mineralization  7-22
    7.5.2. Replacement-style Mineralization  7-23
    7.5.3. Vein-related Alteration  7-26
       
  7.6. Age of Mineralization 7-28

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Preliminary Economic Assessment for the Cariboo Gold Project


8. DEPOSIT TYPES 8-1
         
  8.1. Vein Deposits 8-2
       
  8.2. Replacement Deposits 8-4
       
  8.3. Shear Zone Deposits 8-5
         
9. EXPLORATION 9-1
         
  9.1. 2020 and 2021 Purpose and Methodology 9-1
         
    9.1.1. Geologic Mapping  9-1
    9.1.2. Soil Sampling  9-1
       
  9.2. Program Objectives and Results 9-3
         
    9.2.1. 2015-2019 Geochemical and Mapping Programs  9-3
    9.2.2. 2016 Magnetic and VTEM Survey Program 9-6
    9.2.3. 2020 Geochemical and Mapping Programs  9-6
    9.2.4. 2021 Geochemical and Mapping Programs  9-7
     
10. DRILLING 10.1
     
  10.1.  Drilling Methodology 10-1
       
  10.2.  Core Logging Procedures 10-2
       
  10.3. 2015 to 2019 Drilling 10-3


   

10.4.  2020 Drilling Program 10-5
       
  10.5. 2021 Drilling Program 10-7
       
  10.6. 2022 Drilling Program 10-8
       
  10.7.  QPs Comments 10-8
     
11. SAMPLE PREARATION, ANALYSES AND SECURITY 11-1
     
  11.1.  Core Handling, Sampling and Security 11-1
       
  11.2.  Laboratories Accreditation and Certification 11-2
       
  11.3.  Sample Preparation and Assay 11-2
         
    11.3.1. Sample Preparation 11-2
    11.3.2. Gold Assaying 11-2
    11.3.3. Multi-element Assaying 11-3
    11.3.4. Specific Gravity Measurements 11-3
       
  11.4.  Quality Assurance and Quality Control  11-3
         
    11.4.1. Certified Reference Materials (Standards) 11-3
    11.4.2. 2020 Certified Reference Materials (Standards) Performance 11-4
    11.4.3. 2021 Certified Reference Materials (Standards) Performance 11-5
    11.4.4. Blank Samples 11-7
    11.4.5. 2020 Blank Samples Performance  11-7
    11.4.6. 2021 Blank Samples Performance 11-8

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Preliminary Economic Assessment for the Cariboo Gold Project


  11.5. Conclusions 11-9
     
12. DATA VERIFICATION 12-1
       
  12.1 Historical Work 12-2
       
  12.2. ODV Databases 12-2
         
    12.2.1. ODV Drill Hole Collar and Downhole 12-2
    12.2.2. Assays  12-2
       
  12.3. Mined-out Voids 12-3
       
  12.4. ODV Logging, Sampling and Assaying Procedures 12-3
       
  12.5. Mineral Resource Estimation Process 12-4
       
  12.6. Conclusion 12-5
     
13. MINERAL PROCESSING AND METALLURGICAL TESTING 13-1
       
  13.1. Testwork Campaign 13-1
         
    13.1.1. Sample Selection and Compositing 13-1
    13.1.2. Comminution Testwork  13-8
    13.1.3. Mineral Sorting Testwork 13-10
    13.1.4. Flotation Testwork  13-15
    13.1.5. Gravity Concentration 13-21
    13.1.6. Leaching Testwork 13-21
    13.1.7. Cyanide Destruction Testwork  13-27
    13.1.8. Thickening, Filtration and Rheology Testwork by Pocock Industrial  13-27
    13.1.9. Mass Pull Projection  13-31
       
  13.2. Shaft Zone Bulk Sample Testing 13-32
         
    13.2.1. Mineral Sorting Testwork 13-32
    13.2.2. Composite Development for SGS Program 13-36
    13.2.3. Rougher Flotation Testwork Results  13-37
    13.2.4. Cleaner Flotation Testwork Results 13-43
    13.2.5. Bulk Rougher Flotation Test  13-45
    13.2.6. Combined Flotation Concentrate Assay 13-45
    13.2.7. E-GRG Test Results  13-46
    13.2.8. Leaching Conditions  13-46
    13.2.9. Leaching Test Results 13-47
    13.2.10. Reagent Consumption  13-49
    13.2.11. Leach Condition Optimization 13-49
    13.2.12. Leaching Testwork Reagent Consumption 13-54
       
  13.3. Thickening and Filtration Tests 13-56
         
    13.3.1. Thickening Tests  13-56
    13.3.2. Filtration Tests  13-58

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Preliminary Economic Assessment for the Cariboo Gold Project


  13.4. Rheology Testwork by SGS 13-59
         
    13.4.1. Samples Tested  13-59
    13.4.2. Results 13-60
     
14. MINERAL RESOURCE ESTIMATES 14-1
         
  14.1. Methodology 14-1
       
  14.2. Drill Hole Database 14-2
       
  14.3. Geological Model 14-5
       
  14.4. Voids Model 14-9
       
  14.5. Compositing 14-11
       
  14.6. High-grade Capping 14-12
       
  14.7. Density 14-14
       
  14.8. Block Model 14-15
       
  14.9. Variography and Search Ellipsoids 14-17
       
  14.10. Grade Interpolation 14-18
       
  14.11. Block Model Validation 14-20
       
  14.12. Economic Parameters and Cut-off Grade 14-23
       
  14.13. Mineral Resource Classification 14-24
         
    14.13.1. Cow, Valley, Shaft, Mosquito, KL, Lowhee, and BC Vein deposits 14-24
    14.13.2. Bonanza Ledge deposit  14-25
         
  14.14.   Mineral Resource Estimate 14-26
         
15. MINERAL RESERVE ESTIMATES  15-1
     
16. MINING METHODS 16-1
         
  16.1. Introduction 16-1
       
  16.2. Rock Engineering 16-1
         
    16.2.1. Geotechnical Programs  16-1
    16.2.2. Structural Geology  16-7
    16.2.3. Geotechnical Design 16-7
    16.2.4. Ground Support Recommendations 16-11
         
  16.3. Mine Access 16-17
    16.3.1. Valley Portal  16-17
    16.3.2. Island Mountain Portal  16-19
    16.3.3. Cow Portal  16-19
    16.3.4. Access Ramps 16-20
         
  16.4. Mine Hydrogeology 16-20
         
    16.4.1. QR Mill Area Hydrogeology 16-23

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    16.4.2. Groundwater Inflow Predictions - Mine Site Complex Area 16-25
    16.4.3. Limitations of Inflow Predictions  16-27
       
  16.5. Underground Mining Method 16-28
         
    16.5.1. Selection of Economical Material for Life of Mine  16-29
    16.5.2. Cut-off Grade Calculation 16-30
       
  16.6. Mine Design 16-31
         
    16.6.1. Development Design  16-31
    16.6.2. Main Infrastructure  16-32
    16.6.3. Level Layout Design  16-33
    16.6.4. Production Stopes  16-35
    16.6.5. Shaft Zone  16-38
    16.6.6. Valley Zone  16-40
    16.6.7. Cow Zone 16-42
    16.6.8. Lowhee Zone  16-44
    16.6.9. Mosquito Zone  16-46
    16.6.10. Mine Dilution and Recovery 16-48
    16.6.11. Mine Physicals  16-50
       
  16.7. Material Handling 16-51
         
    16.7.1. Material Handling Infrastructure  16-52
    16.7.2. Backfill Strategy  16-57
    16.7.3. Cemented Rockfill 16-60
       
  16.8. Mine Schedule 16-61
         
    16.8.1. Mine Sequence Methodology 16-61
    16.8.2. Scheduling Rates 16-62
    16.8.3. Mine Production Schedule  16-64
       
  16.9. Mine Services 16-68
         
    16.9.1. Ventilation  16-68
    16.9.2. The Project Ventilation Network and Infrastructure Description 16-70
    16.9.3. Dewatering  16-71
    16.9.4. Electrical Distribution  16-74
    16.9.5. Underground Mine Equipment  16-75
    16.9.6. Communication Network Automation 16-76
       
  16.10. Mine Personnel 16-77
       
  16.11. Recommendations 16-78
     
17. RECOVERY METHODS 17-1
       
  17.1. Introduction 17-1
       
  17.2. Concentrator Process Design Criteria 17-2
       
  17.3. Pre-concentrator at the Bonanza Ledge Site 17-3
       
    17.3.1. Crushing and Screening 17-5

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Preliminary Economic Assessment for the Cariboo Gold Project


    17.3.2. Mineral Sorting Circuit 17-5
       
  17.4. Quesnel River Mill 17-5
         
    17.4.1. Concentrate Unloading, Storage, and Handling  17-7
    17.4.2. Grinding Circuit 17-7
    17.4.3. Thickening, Leaching, and Carbon-in-Pulp Circuits  17-7
    17.4.4. Elution and Carbon Regeneration Circuits 17-8
    17.4.5. Refinery Circuit 17-8
    17.4.6. Cyanide Destruction Circuit  17-9
    17.4.7. Tailings and Dry Stacking Circuit 17-9
    17.4.8. Water and Air Services 17-9
    17.4.9. Reagent System 17-10
       
  17.5. Concentrator at the Mine Site Complex 17-10
         
    17.5.1. Screening Circuit  17-12
    17.5.2. Mineral Sorting Circuit  17-12
    17.5.3. Grinding Circuit 17-12
    17.5.4. Flotation Circuit 17-12
    17.5.5. Flotation Concentrate Dewatering  17-13
   

17.5.6.

Flotation Tailings Dewatering  17-13
    17.5.7. Paste Production  17-13
    17.5.8. Water and Air Services 17-14
    17.5.9. Reagent System 17-14
       
  17.6. Concentrator Personnel 17-14
       
  17.7. Power, Reagents and Consumables 17-16
         
    17.7.1. Fuel 17-16
    17.7.2. Power 17-16
    17.7.3. Reagents, Cement, and Consumables  17-16
     
18. Project Infrastructure  18.1
       
  18.1. Overview Description 18-3
       
  18.2. Mine Site Complex 18-4
         
    18.2.1 Geotechnical Studies  18-5
    18.2.2 Existing/Available Infrastructures at Mine Site Complex  18-6
    18.2.3 Site Preparation at the Mine Site Complex 18-7
    18.2.4 Roads 18-7
    18.2.5 Diesel Mobile Equipment  18-8
    18.2.6 Mine Site Complex Operation Infrastructure  18-8
    18.2.7 Services Building  18-10
    18.2.8 Camp Infrastructure 18-12
    18.2.9 Surface Water Management Strategy  18-12
    18.2.10 Water Management Infrastructure  18-13
    18.2.11 Water Treatment  18-17
    18.2.12 Bulk Fill Area  18-19

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    18.2.13 Overburden  18-19
    18.2.14 Power Supply  18-19
       
  18.3 Bonanza Ledge Site 18-22
         
    18.3.1 Temporary Pre-Concentrator. 18-22
    18.3.2 Waste Rock Storage Facility 18-22
    18.3.3 Surface Water Management Strategy  18-23
    18.3.4 Water Management Infrastructure  18-24
    18.3.5 Water Treatment  18-24
       
  18.4 QR Mill 18-25
         
    18.4.1 Existing/Available Structures at QR Mill  18-26
    18.4.2 QR Mill Upgrade  18-27
    18.4.3 Filtered Stack Tailings Storage Facility for QR Mill  18-27
    18.4.4 Water Management Infrastructure for Filtered Stack Tailings Storage Facility  18-28
    18.4.5 QR Mill Geotechnical Investigation 18-29
    18.4.6 Water Treatment  18-29
    18.4.7 Telecommunications and IT Infrastructure 18-29
     
19. MARKET STUDIES AND CONTRACTS 19-1
       
  19.1.  Market Studies 19-1
       
  19.2.  Assumptions 19-1
       
  19.3.  Royalties 19-2
       
  19.4.  Contracts 19-2
     
20. ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT 20-1 
       
  20.1.  Environmental Studies 20-1
         
    20.1.1. Introduction 20-1
    20.1.2. Air Quality 20-1
    20.1.3. Land Capability and Use 20-1
    20.1.4. Terrain and Soils  20-2
    20.1.5. Vegetation 20-2
    20.1.6. Wildlife and Wildlife Habitat  20-2
    20.1.7. Fisheries and Aquatic Resources 20-3
       
  20.2.  Environmental Liabilities 20-4
       
  20.3.  Environmental Management and Monitoring 20-4
         
    20.3.1. Mineralized Material and Waste Rock Geochemistry  20-4
    20.3.2. Mineralized Material Management Strategy  20-6
    20.3.3. Waste Rock Management Strategy 20-6
    20.3.4. Tailings Geochemistry  20-7
    20.3.5. Tailings Management Strategy  20-7
    20.3.6. Water Management  20-8
    20.3.7. Water Treatment  20-15

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Preliminary Economic Assessment for the Cariboo Gold Project


    20.3.8. Historical Waste Disposal Activities 20-16
       
  20.4. Considerations of Social and Community Impacts 20-16
       
    20.4.1. Social Setting 20-16
    20.4.2. Engagement and Consultation 20-17
    20.4.3. Indigenous Nations 20-17
    20.4.4. Federal, Provincial and Municipal Governments 20-18
    20.4.5. Public Stakeholders 20-18
         
  20.5. Mine Closure Requirements 20-19
       
    20.5.1. Mine Reclamation and Closure Plan 20-19
    20.5.2. Regulatory Framework 20-19
    20.5.3. Mine Closure Planning Approach 20-20
       
  20.6. Permitting and Required Approvals 20-20
       
    20.6.1. Regulatory Context 20-20
    20.6.2. BC Environmental Assessment Regulations 20-21
    20.6.3. Federal Permits, Approvals, Licences and Authorizations 20-22
    20.6.4. Provincial Permits, Approvals and Licences 20-24
    20.6.5. Local Government Permits 20-26
       
  21.1. Capital Costs 21-1
       
    21.1.1. Summary 21-1
    21.1.2. Scope and Structure of Capital Cost Estimate 21-3
    21.1.3. Work Breakdown Structure (WBS) and Estimate Responsibilities 21-4
    21.1.4. Estimate Methodology 21-5
    21.1.5. Exclusions 21-6
       
  21.2. Operating Costs 21-7
       
    21.2.1. Summary 21-7
    21.2.2. Basis of Operating Cost Estimate 21-7
    21.2.3. Mining 21-9
    21.2.4. Mineralized Material Transport 21-10
    21.2.5. Processing 21-11
    21.2.6. Tailings, Water Treatment and Environment 21-15
    21.2.7. General and Administration 21-17
       
  21.3. Site Personnel Summary - All Areas 21-19
       
    22.1. Assumptions and Basis 22-2
    22.2. Royalties 22-4
    22.3. Taxation 22-4
    22.4. Financial Analysis Summary 22-5

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Preliminary Economic Assessment for the Cariboo Gold Project


  22.5. Production Costs 22-8
       
  22.6. Value Drivers 22-9
       
  22.7. Sensitivity Analysis 22-11
       
23. ADJACENT PROPERTIES 23-1
     
24. OTHER RELEVANT DATA AND INFORMATION  24-1
     
  24.1. Project Execution Plan 24-1
       
    24.1.1. Introduction 24-1
    24.1.2. Main Activities 24-1
    24.1.3. Project Organization  24-3
    24.1.4. Project Development Team  24-4
    24.1.5. Construction Management Team 24-5
    24.1.6. Site Services Team 24-5
         
  24.2. Project Execution Schedule 24-6
       
25. INTERPRETATION AND CONCLUSIONS 25-1
     
  25.1. Data Verification and Mineral Resources 25-1
       
  25.2. Mineral Processing and Metallurgical Testing 25-1
       
  25.3. Mining Methods 25-2
       
  25.4. Environmental Studies 25-3
       
  25.5. Infrastructure 25-3
       
  25.6. Capital and Operating Costs 25-3
       
  25.7. Indicative Economic Results 25-5
       
  25.8. Project Risks and Opportunities 25-5
       
26. RECOMMENDATIONS 26-1
     
  26.1. Drilling and Geology 26-2
       
  26.2. Underground Mining 26-3
       
  26.3. Mineral Processing and Metallurgical Testwork 26-5
       
  26.4. Tailings, Waste and Water Management 26-5
       
  26.5. Infrastructure 26-7
       
  26.6. Environment and Permitting 26-9
       
27. REFERENCES 27-1
     
  27.1. Mineral Processing and Metallurgical Testing 27-1
       
  27.2. Mineral Resources and Geology 27-1
       
  27.3. Mining Methods 27-10

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Preliminary Economic Assessment for the Cariboo Gold Project


  27.4.

Project Infrastructure 

27-11

       
  27.5.

Environmental Studies, Permitting, and Social or Community Impact

27-13

       
  27.6.

Mine Reclamation and Closure 

27-18

       
  27.7.

Surface Water Management 

27-18

       
APPENDIX 1:          LIST OF MINERAL CLAIMS AND LEASES  
   
APPENDIX 2:          LIST OF PLACER CLAIMS AND LEASES  
   
APPENDIX 3:          CROWN GRANTED MINERAL CLAIMS  

LIST OF TABLES

Table 1-1: Report contributors 

1-2

Table 1-2: Cariboo Gold Project 2022 Mineral Resource Estimate reported at a 2.0 g/t Au cut-off grade (except for Bonanza Ledge; reported at a 3.5 g/t Au cut-off grade)  1-9
Table 1-3: Mineralized material produced per year 1-15
Table 1-4: Project capital costs summary  1-20
Table 1-5: Total operating cost breakdown  1-22
Table 1-6: Employee summary - All areas Phase II  1-22
Table 1-7: Financial analysis summary 1-23
Table 1-8: Key milestones (preliminary)  1-27
Table 1-9: Work Program Budget  1-31
Table 2-1: Qualified Persons and areas of report responsibility 2-3
Table 4-1: BGM surface rights option agreements  4-10
Table 5-1: Summary of climate statistics  5-4
Table 6-1: Summary of diamond drilling on the Island Mountain Project from 1999 to 2014  6-5
Table 6-2: Summary of diamond drilling on the Cariboo Gold Project from 1995 to 1999  6-6
Table 6-3: Summary of diamond drilling on the Cariboo Gold Project from 2000 to 2009  6-7
Table 6-4: Summary of diamond drilling on the Cariboo Gold Project from 2010 to 2014  6-11
Table 6-5: 2018 Cariboo Gold Project Mineral Resource Estimate at a cut-off of 3.0 g/t Au 6-15
Table 6-6: 2019 Cariboo Gold Project Mineral Resource Estimate at a cut-off of 3.0 g/t Au 6-16
Table 6-7: 2020 Cariboo Gold Project Mineral Resource Estimate at 2.1 g/t Au cut-off 6-18
Table 9-1: Surface geochemical samples collected on the Cariboo Gold Project 2015-2019  9-3
Table 9-2: 2020 Soil, Rock Samples and Structural Station by Prospect  9-7

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Table 9-3: 2021 Soil, Rock Samples and Structural Station by Prospect 

9-8

Table 10-1: Summary of BGM's 2020 Program

10-5

Table 10-2: Summary of BGM's 2021 Program

10-7

Table 10-3: Summary of BGM's 2022 Program

10-8

Table 11-1: Results of standards used by ODV for the 2020 Program

11-4

Table 11-2: Results of standards used by ODV for the 2021 Program

11-6

Table 11-3: Results of blanks used by ODV for the 2020 Program 

11-7

Table 11-4: Results of blanks used by ODV for the 2021 Program 

11-8

Table 12-1: Results of the independent resampling of material from the Cow and Mosquito deposits

12-4

Table 13-1: Material received for LOM composites

13-2

Table 13-2: Material received for variability composites 

13-2

Table 13-3: LOM composite fines head assay

13-5

Table 13-4: LOM mineral sorting samples head assays 

13-5

Table 13-5: Variability composites - Fines (-10mm) head assays

13-6

Table 13-6: Variability composites - Mineral sorting samples head assays 

13-6

Table 13-7: Crusher work index

13-8

Table 13-8: Abrasion index

13-9

Table 13-9: Bond ball mill work index

13-9

Table 13-10: Mineral sorted LOM composites

13-10

Table 13-11: Mineral sorted variability composites 

13-11

Table 13-12: Mineral sorting test results - LOM composites

13-12

Table 13-13: Mineral sorting test results - Variability composites

13-13

Table 13-14: Summary - Average mineral sorting recoveries

13-15

Table 13-15: Flotation test results - Fines

13-16

Table 13-16 Flotation test results - Variability composite fines 

13-17

Table 13-17: Flotation test results - Mineral sorter concentrate 

13-20

Table 13-18: Summary of leaching results 

13-22

Table 13-19: Leaching results of flowsheet blends 

13-23

Table 13-20: Leach test result averages by sample type 

13-25

Table 13-21: Leach test result averages for flowsheet blends

13-26

Table 13-22: Sample characterization 

13-27

Table 13-23: Recommended high-rate thickener operating parameters

13-28

Table 13-24: Pressure filtration results and design parameters 

13-31


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Table 13-25: Average gold recovery and mass pull for each process step

13-31

Table 13-26: Mineral sorting results 

13-36

Table 13-27: Recipes of composite samples

13-37

Table 13-28: Head assays results summary 

13-37

Table 13-29: Rougher flotation test conditions 

13-38

Table 13-30: Rougher flotation test results

13-42

Table 13-31: Cleaner flotation test conditions

13-43

Table 13-32: Cleaner flotation test results 

13-44

Table 13-33: Bulk rougher flotation test results summary 

13-45

Table 13-34: Assay results summary - combined flotation concentrate

13-45

Table 13-35: E-GRG test results summary - gold and silver 

13-46

Table 13-36: General test conditions 

13-46

Table 13-37: Leaching test results for all conditions

13-48

Table 13-38: Test conditions and metal extractions 

13-49

Table 13-39: Additional assays on CIP feed

13-53

Table 13-40: Bulk CIP test conditions summary

13-54

Table 13-41: Bulk CIP test results summary 

13-54

Table 13-42: As-received sample characteristic summary 

13-56

Table 13-43: Evaluated flocculants

13-56

Table 13-44: Recommended thickener operating parameters

13-57

Table 13-45: Vacuum filtration test results 

13-58

Table 13-46: Pressure filtration test results 

13-59

Table 13-47: Rheology sample characterization 

13-60

Table 13-48: Summary of rheology results - Flotation concentrate underflow 

13-60

Table 13-49: Summary of rheology results - CIP detox tailings underflow 

13-61

Table 14-1: Number of drill holes in each database 

14-3

Table 14-2: Summary statistics for the DDH raw assays 

14-11

Table 14-3: Summary statistics for composites

14-12

Table 14-4: Bulk density by mineralized zone 

14-14

Table 14-5: Block model properties 

14-16

Table 14-6: Grade estimation parameters

14-19

Table 14-7: Input parameters used to calculate the underground cut-off grade for Cow, Valley, Mosquito, Shaft, Lowhee, KL, and BC Vein deposits

14-23


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Table 14-8: Input parameters used to calculate the underground cut-off grade for Bonanza Ledge

14-23

Table 14-9: Cariboo Gold Project 2022 Mineral Resource Estimate reported at a 2.0 g/t Au cut-off grade (except for Bonanza Ledge; reported at a 3.5 g/t Au cut-off grade)  14-27
Table 14-10: Cut-off grade sensitivity analysis for the Cow, Valley, Shaft, Mosquito, BC Vein, KL,and Lowhee deposits of the Cariboo Gold Project 14-29
Table 14-11: Cut-off grade sensitivity analysis for the Bonanza Ledge deposit of the Cariboo Gold Project 14-29
Table 16-1: TCS 2018 and 2021 test results  16-3
Table 16-2: Summary of Unit Weight, Intact Elastic Modulus, and Intact Poisson's Ratio based on 2018 and 2021 Laboratory Testing Results 16-4
Table 16-3: UCS estimates extrapolated from 2018 and 2021 TCS tests  16-4
Table 16-4: Direct UCS test results from 2021 field program 16-5
Table 16-5: Summary of length of core photo logged, by Zone  16-6
Table 16-6: Summary of rock mass properties for each qualitative geotechnical classification  16-8

Table 16-7: Stope design summary by mining zone 

16-10

Table 16-8: Ground support recommendations for long-term access and short-term production excavations

16-12

Table 16-9: Preliminary ground support recommendations for vertical infrastructure based on Alimak mining

16-13

Table 16-10: Predicted Mine groundwater inflows m3/day 

16-26

Table 16-11: MSO input parameters 

16-30

Table 16-12: Lateral development dimensions and cost category

16-32

Table 16-13: Lateral development of waste by zone

16-50

Table 16-14: Summary of total lateral development in mineralized material 

16-50

Table 16-15: Summary of total recovered production tonnes by zone 

16-51

Table 16-16: Paste fill network distribution summary 

16-59

Table 16-17: Paste plant design criteria 

16-60

Table 16-18: Schedule development rates

16-62

Table 16-19: Development resource rate scheduling parameters

16-63

Table 16-20: Summary of production rate tasks 

16-63

Table 16-21: Annual production of mineralized material

16-65

Table 16-22: Development meter breakdown per zone per year

16-68

Table 16-23: List of mobile equipment

16-69

Table 16-24: Fresh air and pressure requirement per zone 

16-70


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Table 16-25: Contractor workforce

16-78

Table 17-1: Design criteria

17-2

Table 17-2: Concentrator personnel 

17-15

Table 17-3: Consumption of reagents and consumables 

17-17

Table 18-1: Mine Site Complex Project components 

18-4

Table 18-2: Design requirements for sizing ditches and channels 

18-16

Table 18-3: Maximum available pond storage volume and design flood outflow capacity (to WTS) for the Mine Site Complex

18-17

Table 18-4: Maximum available pond storage volume and proposed design flood outflow capacity: Bonanza Ledge Site

18-24

Table 18-5: QR Mill Project components 

18-25

Table 18-6 Water management structure IDF 

18-28

Table 19-1: Refining and pricing assumptions 

19-1

Table 20-1: Mine Site water balance results: Base (upper) case U/G dewatering

20-11

Table 20-2: QR Mill site MZP water balance results 

20-14

Table 20-3 Potential Constituents of Concern

20-15

Table 20-4: Summary of Regulations Supporting the BCEAA (2018)

20-21

Table 20-5: Federal permits and approvals potentially applicable to the proposed Project

20-22

Table 20-6: Provincial permits and approvals potentially applicable to the proposed Project  20-24

Table 21-1: Project capital cost summary

21-2

Table 21-2: CAPEX estimate responsibilities by WBS 

21-4

Table 21-3: Cariboo Gold Project operating cost summary

21-7

Table 21-4: OPEX estimate responsibilities

21-8

Table 21-5: General rate and unit cost assumptions 

21-9

Table 21-6: Underground mining operating costs 

21-10

Table 21-7: Material transport operating costs

21-10

Table 21-8: Phase I Mill Operating Costs 

21-11

Table 21-9: Phase II Mill Operating Costs 

21-12

Table 21-10: Phase I and Phase II Reagent costs

21-13

Table 21-11: Tailings, water treatment and environment operating cost summary

21-16

Table 21-12: General administration operating costs 

21-18

Table 21-13: Summary of personnel - All areas 

21-19

Table 22-1: Financial model parameters 

22-3

Table 22-2: Financial analysis summary (pre-tax and after-tax) 

22-6


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Table 22-3: Summary of the Project discounted cash flow financial model 

22-7

Table 22-4: Production cost summary 

22-9

Table 22-5: NPV sensitivity results (after-tax) for metal price and exchange rate variations

22-11

Table 22-6: IRR sensitivity results (after-tax) for metal price and exchange rate variations 

22-11

Table 22-7: NPV sensitivity results (after-tax) for capital (LOM) and operating costs variations  22-12

Table 22-8: IRR sensitivity results (after-tax) for capital (LOM) and operating costs variations

22-12

Table 22-9: NPV sensitivity results (after-tax) for discount rate

22-12

Table 24-1: Project Key Milestones (preliminary) 

24-6

Table 25-1: Average gold recovery and process step

25-2

Table 25-2: Project capital cost summary

25-4

Table 25-3: Project operating costs 

25-5

Table 25-4: Project risks (Preliminary risk assessment)

25-7

Table 25-5: Project opportunities 

25-16

Table 26-1: Work program budget 

26-2

LIST OF FIGURES

Figure 1-1: Annual and cumulative Project capital costs 

1-21

Figure 1-2: After-tax sensitivity analysis - Net present value (NPV) 

1-25

Figure 1-3: After-tax sensitivity analysis - Internal rate of return (IRR) 

1-26

Figure 4-1: Location of the Cariboo Gold Project 

4-3

Figure 4-2: Mineral title and ownership map for the Cariboo Gold Project 

4-4

Figure 4-3: Map of placer claims and placer leases on the Cariboo Gold Project 

4-5

Figure 4-4: Map of Crown-granted mineral claims on the Cariboo Gold Project 

4-6

Figure 5-1: Access to the Cariboo Gold Project 

5-2

Figure 5-2: Aerial view of the town of Wells looking east 

5-6

Figure 7-1: BCGS bedrock geology of the Cariboo Gold Project area 

7-3

Figure 7-2: A) Morphogeological belts of the Canadian Cordillera with the northern (N) and southern (S) Lithoprobe transects; B) Simplified map of the distribution of granitic rocks and regional metamorphic grade

7-4

Figure 7-3: Lithospheric-scale cross-section of the southern Cordilleran Lithoprobe transect 

7-5

Figure 7-4: Tectonic architecture of the Cariboo Gold District 

7-6

Figure 7-5: Stratigraphic interpretations of the Snowshoe Group 

7-7


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Figure 7-6: Barkerville terrane nappe model 

7-9

Figure 7-7: Simplified BC Hanging-wall tectonostratigraphy for the Island, Cow, and Barkerville Mountain drill areas

7-12

Figure 7-8: Select rock-types observed on the Cariboo Gold Project 

7-13

Figure 7-9: Detailed tectonostratigraphic facies model for Island and Cow Mountains 

7-14

Figure 7-10: Detailed tectonostratigraphic facies model for Barkerville Mountain 

7-15

Figure 7-11: Geologic map of the core Cariboo Gold Project Area; corresponding sections presented below

7-16

Figure 7-12: Vertical strike-perpendicular (left) and down-plunge strike-parallel (right) cross- sections for the core Cariboo Gold Project area

7-17

Figure 7-13: Relative orientation of variable structures arising from polyphase deformation within the Wells-Barkerville area

7-18

Figure 7-14: Deformation phases and associated fabrics on the Cariboo Gold Project 

7-20

Figure 7-15: To scale schematic strike parallel Barkerville Mountain section illustrating the geometries of first and second order F3 folds

7-21

Figure 7-16: Mineralization styles observed on the Cariboo Gold Project 

7-24

Figure 7-17: Structural controls on the mineralization of the Cariboo Gold Project 

7-25

Figure 7-18: Schematic vertical section (looking NE) of vein alteration observed at the Cariboo Gold Project

7-26

Figure 7-19: Vein-related alteration styles at the Cariboo Gold Project 

7-27

Figure 7-20: Compilation plot of 39Ar/40Ar age data from white mica in veins and replacement bodies in the Cariboo Gold District 7-28
Figure 8-1: Tectonic settings of gold-rich epigenetic mineral deposits 8-1
Figure 8-2: Model for the formation of vertical AXPL veins in the hinges of F3 folds on the Cariboo Gold Project 8-3
Figure 8-3: Composite model of the mineralization styles on the Cariboo Gold Project 8-4
Figure 8-4: a) Formation of structural traps in F2 hinges as L-Tectonites; b) Replacement style mineralization (orange) fed by AXPL quartz veins (yellow) 8-5
Figure 9-1: Illustrates Barkerville's mineral prospects of the Cariboo Region 9-2
Figure 9-2: Cariboo Regional mapping and rock sampling overview from 2015 to 2021  9-4
Figure 9-3: Cariboo Regional soil sampling overview from 2016 to 2021  9-5
Figure 10-1: Cariboo Gold Project Diamond Drilling Program Overview  10-9
Figure 10-2: Island Mountain Drilling Program 2015-2021  10-10
Figure 10-3: Cross-section of Shaft Zone diamond drill holes with gold assay highlights  10-11
Figure 10-4: Cow Mountain Drilling Program 2015-2021  10-12
Figure 10-5: Cross-section of Cow Mountain diamond drill holes with gold assay highlights 10-13

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Figure 10-6: Barkerville Mountain Drilling Program 2015-2022

10-14

Figure 10-7: Cross-section of Barkerville Mountain diamond drill holes with gold assay highlights

10-15

Figure 10-8: Proserpine Mountain Drill Program 2015-2021 

10-16

Figure 10-9: Cross-section of Proserpine Mountain diamond drill holes with gold assay highlights

10-17

Figure 11-1: Example of results for standard OREAS 219 for the 2020 Program 

11-5

Figure 11-2: Example of results for standard OREAS 237 for the 2021 Program 

11-6

Figure 11-3: Results of blanks for the 2020 Program 

11-8

Figure 11-4: Results of blanks for the 2021 Program 

11-9

Figure 12-1: Site visit including core review (November 2021) 

12-6

Figure 13-1: Sample locations - Plan view 

13-3

Figure 13-2: Sample locations - Section view

13-3

Figure 13-3: Testwork program map and samples produced for extended testwork

13-4

Figure 13-4: Mineralogical distribution of gold occurrences 

13-7

Figure 13-5: Gold association by size

13-8

Figure 13-6: Mineral sorting grade recovery curves 

13-14

Figure 13-7: Gold recovery flotation kinetics 

13-18

Figure 13-8: Impact of flotation time on mass pull and gold recovery 

13-19

Figure 13-9: Leach recovery and residue grade as a function of grind size 

13-26

Figure 13-10: Yield value versus percent solids

13-30

Figure 13-11: Sample preparation flow diagram 

13-33

Figure 13-12: Mineral sorting testwork flowsheet 

13-35

Figure 13-13: Sample preparation - Mineral sorter concentrate 

13-37

Figure 13-14: Flotation time versus gold recovery - Blend 1 

13-38

Figure 13-15: Flotation time versus gold recovery - Blend 2 

13-39

Figure 13-16: Flotation time versus gold recovery - Blend 3 

13-39

Figure 13-17: Grind size versus gold recovery - Blend 1 

13-40

Figure 13-18: Grind size versus gold recovery - Blend 2 

13-41

Figure 13-19: Grind size versus gold recovery - Blend 3 

13-41

Figure 13-20: Effect of NaCN on gold recovery 

13-50

Figure 13-21: Leach kinetics for blend 1 at 1.0 g/L NaCN

13-51

Figure 13-22: Leach kinetics for blend 2 at 1.0 g/L NaCN

13-51

Figure 13-23: Leach kinetics for blend 3 at 1.0 g/L NaCN

13-52


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Figure 13-24: Gold extraction kinetics - CIP  13-55
Figure 13-25: Silver Extraction Kinetics - CIP 13-55
Figure 13-26: Settling rate vs Flocculant dosage  13-57
Figure 13-27: Yield stress versus solids density - Flotation concentrate underflow 13-61
Figure 13-28: Yield stress versus solids density - CIP detox tailings underflow  13-62
Figure 14-1: Surface plan view of the validated diamond drill holes used to in the 2022 MRE for the deposits of the Cow-Island-Barkerville Mountain Corridor 14-4
Figure 14-2: Surface plan view of the validated Bonanza Ledge diamond drill holes used for the 2022 MRE 14-5
Figure 14-3: Mineralized solids of the Cow, Valley, Shaft, Mosquito, Lowhee, BC Vein and KL models 14-7
Figure 14-4: Example of data used for the 3D Shaft deposit model 14-8
Figure 14-5: Isometric view of the BC Vein and KL deposit models, and the AXPL-LP contact surface 14-8
Figure 14-6: Isometric view of the BC Vein, Bonanza Ledge, and KL deposit models  14-9
Figure 14-7: Plan and longitudinal view of the 5-m buffer voids for Cow Mountain and Island Mountain 14-10
Figure 14-8: Longitudinal view of the 5-m buffer voids for the BC Vein, Bonanza Ledge, and KL deposits 14-11
Figure 14-9: Indicator variograms for the Shaft deposit  14-13
Figure 14-10: Grade log histogram and probability plot for the Shaft deposit  14-14
Figure 14-11: Variogram models of gold grade for the Cow deposit  14-17
Figure 14-12: Validation of the Valley block model, comparing drill hole composites and block model grade values 14-21
Figure 14-13: Cow model validation using three-direction swath plots comparing the different interpolation methods to the DDH composites 14-22
Figure 14-14: Example of a clipping boundary for classification  14-25
Figure 14-15: Longitudinal view showing the classified mineral resources of the Bonanza Ledge deposit 14-26
Figure 16-1: Plan view showing collar locations of 2018 and 2021 dedicated geotechnical drill holes for the Project 16-6
Figure 16-2: Schematic of the recommended general extraction sequence, with protection pillars being retained along the cross cuts 16-14
Figure 16-3: Existing underground workings - plan and section views 16-16
Figure 16-4: Cariboo Gold Project Portal locations  16-17
Figure 16-5: Plan view Valley proposed Portal 16-18

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Figure 16-6: Valley Portal cross-section  16-18
Figure 16-7: Cow Portal  16-19
Figure 16-8: Groundwater recharge and discharge - Mine Site area 16-22
Figure 16-9: Inferred groundwater flow direction - Mine Site area  16-22
Figure 16-10: Groundwater recharge and discharge - QR Mill area 16-24
Figure 16-11: Inferred groundwater flow direction - QR Mill area  16-25
Figure 16-12: Longitudinal longhole retreat - Long section 16-29
Figure 16-13: Cariboo Gold Project - Longitudinal Section Looking North 16-31
Figure 16-14: Location of crushing facility and vertical conveyor  16-33
Figure 16-15: Plan view of typical level layout  16-34
Figure 16-16: Isometric view of typical truck loading area  16-35
Figure 16-17: Typical drilling configuration for Valley Zone, plan view 16-36
Figure 16-18: Typical drilling configuration for Valley Zone, side view 16-37
Figure 16-19: Longitudinal section of Shaft Zone looking north 16-39
Figure 16-20: Perspective view of Shaft Zone showing traversing fault structures, looking north 16-40
Figure 16-21: Longitudinal section of Valley Zone looking north  16-41
Figure 16-22: View of Valley Zone showing traversing fault structures, looking north  16-42
Figure 16-23: Longitudinal section of Cow Zone looking north  16-43
Figure 16-24: Perspective view of Cow Zone looking northeast showing fault structures 16-44
Figure 16-25: Longitudinal section of Lowhee Zone looking north 16-45
Figure 16-26: Perspective view of Lowhee Zone looking northeast showing fault structures  16-46
Figure 16-27: Longitudinal section of Mosquito Zone looking north  16-47
Figure 16-28: Perspective view of Mosquito Zone looking northeast showing fault structure 16-48
Figure 16-29: Internal dilutions strategy for stopes wider than the minimum mining width  16-49
Figure 16-30: Elevation view of the U/G mineralized material and waste handling  16-53
Figure 16-31: Waste truck chute 16-56
Figure 16-32: Longitudinal View of Paste Network for Cariboo Project 16-58
Figure 16-33: Isometric view of typical network distribution - Level 1240 (Cow Zone) 16-58
Figure 16-34: Convertible shotcrete mobile unit  16-61
Figure 16-35: Annual total recovered tonnes of mineralized material 16-64
Figure 16-36: Annual production of mineralized material 16-66
Figure 16-37: Recovered mineralized material by year by extraction method  16-67
Figure 16-38: Total annual development by zone  16-67

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Figure 16-39: General view of the Cariboo ventilation network (N-E view)  16-71
Figure 16-40: Flooded historic workings and water level  16-72
Figure 16-41: TechnoSub proposed solution for flooded workings - Deepwell pump (left) and U/G pump station (right) 16-73
Figure 16-42: Clarification System Schematic (Partial)  16-74
Figure 17-1: Bonanza Ledge Site simplified process flow diagram 17-4
Figure 17-2: The QR Mill simplified process flow diagram 17-6
Figure 17-3: Mine Site Complex simplified flowsheet  17-11
Figure 18-1: Regional setting 18-2
Figure 18-2: Concentrator area of Services Building Layout  18-11
Figure 20-1: Flow diagram at Mine Site during operations 20-9
Figure 21-1: Annual and cumulative project capital costs  21-3
Figure 22-1: Overall Cariboo Gold Project capital cost profile  22-4
Figure 22-2: Life of mine cash flow projection (cumulative, pre-tax and after-tax)  22-8
Figure 22-3: Main value drivers (discounted at 5%)  22-10
Figure 22-4: Sensitivity of the net present value (after-tax) to financial variables  22-13
Figure 22-5: Sensitivity of the internal rate of return (after-tax) to financial variables  22-14

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 List of Abbreviations

Table of Abbreviations

Abbreviation

Description

3D

three dimensional

a

annum (year)

AACE

American Association of Cost Engineers

AAS

atomic absorption spectroscopy

ABA

acid-base accounting

Ag

Silver

Ai

Abrasion index

AIS

Air insulated switchgear

AISC

all-in sustaining cost

Al

Aluminum

ALR

Agricultural Land Reserve

ARD

acid rock drainage

ATV

all-terrain vehicle

Au

Gold

Au-in soil

Gold-in-soil

AXPL

Axial planar

B

billion

BBA

BBA Engineering Ltd.

BC

British Columbia

BCEAA

British Columbia Environmental Assessment Act, 2018

BCSC

BC Securities Commission

BCWQG-AL

British Columbia Water Quality Guideline for Freshwater Aquatic Life

BFA

bulk fill area

BGM

Barkerville Gold Mines Division

BL

Bonanza Ledge

BOE

Basis of Estimate

BWi

Bond work index

C

Carbon

CA

Channel aggregation

CAD or $

Canadian dollar

CAM

Chlumsky, Armbrust and Meyer LLC

CaO

Calcium oxide (lime)

CAPEX

Capital expenditure


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Table of Abbreviations
Abbreviation Description
CCLUP Cariboo Chilcotin Land Use Plan
CEAA Canadian Environmental Assessment Act
CGP Cariboo Gold Project
CIM Canadian Institute of Mining, Metallurgy and Petroleum
CIP Carbon-in-pulp
Cl Chloride
CLMV Calcareous Mafic Volcaniclastic
CLSI Calcareous siltstone
CLSS Calcareous sandstone
CM Cow Mountain
CMT Construction Management Team
CN Cyanide
CoA Certificate of authorization
CoG Cut-off grade
conc. Concentrate
COO Chief Operating Officer
COPC Constituent of potential concern
CPTu Cone penetration test
CRD Cariboo Regional District
CRF Cemented rockfill
CRM Certified reference material
CSI Carbonaceous siltstone
CTO Cease trade order
Cu Copper
CuSO4 Copper sulphate
CWi Crusher work index
CZ Cow Zone
Datamine Datamine Studio RM 1.9.36.0
DDH Diamond drill hole
DFO Department of Fisheries and Oceans
DMR Digital mobile radio
DRIPA BC's Declaration on the Rights of Indigenous Peoples Act
DSO Deswik Stope Optimizer
EA Environmental assessment
EAC Environmental assessment certificate

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Table of Abbreviations

Abbreviation

Description

EAO

Environmental Assessment Office

EBA

EBA Engineering Consultants Ltd.

EBIT

Earnings before interest and tax

ECCC

Environment and Climate Change Canada

EDF

Environmental Design Flood

EL

Elevation

ELOS

Estimated linear overbreak and sloughing

EMLI

BC Ministry of Energy, Mines and Low Carbon Innovation

ENV

Ministry of Environment and Climate Change Strategy

EOH

End of hole

EPCM

Engineering, Procurement, Construction Management

ESS

Electrical substation

ESSF

Engelmann Spruce-Subalpine Fir

et al.

et alla (and others)

EXT

Extensional

F80

80% passing - Feed size

FA

fire assay

Falkirk

Falkirk Environmental Consultants Ltd.

Fe

Iron

FIDQ

Fish Inventories Data Queries

FIFO

fly-in fly-out

FLNRORD

Forests, Lands, Natural Resource Operations, and Rural Development

FS

Feasibility study

FSR

Forest Service Road

FSTSF

Filtered stack tailings storage facility

G&A

General and Administration

GEMS

Geovia GEMS software

Geoex

Geoex Ltd.

GHG

Green House Gas

Gold City Mining

Gold City Mining Corp.

Golden Cariboo

Golden Cariboo Resources Ltd.

Golder

Golder Associated Ltd.

GSA

Gold stream agreement

HADD

Harmful alteration, disruption, or destruction

HCT

humidity cell test


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Table of Abbreviations

Abbreviation

Description

HDPE

High-density polyethylene

HQ

HQ - drill core diameter (63.5 millimetres)

HSE

Health, safety and environment

HSRC

Health, Safety, and Reclamation Code

Hudson Bay

Hudson Bay Mining and Smelting Co. Ltd.

HVAC

Heating, ventilation, and air conditioning

Hy-Tech

Hy-Tech Drilling Ltd.

ICP

Inductively coupled plasma

ID2

Inverse distance squared

IDF

Inflow Design Flood

IEC

International Electrotechnical Commission

IGM

Island Mountain Gold Mines Ltd.

IHA

Interior Health Authority

IM

Island Mountain

InnovExplo

InnovExplo Inc.

IP

Induced Polarization

IPT

Integrated Project Team

IRR

Internal rate of return

IRS

Intact rock strength

ISO

International Organization for Standardization

IT

Information technology

IWGM

International Wayside Gold Mines Ltd.

JOC

Jack of Clubs Lake

K

Potassium

K80

80% passing - Particle size

KCB

Klohn Crippen Berger Consultants

LBMA

London Bullion Market Association

LeapFrog

LeapFrog GEOTM v.2021.1.3

LED

Light-emitting diode

LHD

Load haul dump - scooptram

LOM

Life of mine

LP

Layer Parallel

LSA

Local Study Area

LST

Aurum Limestone

LTE

Long-term evolution


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Table of Abbreviations

Abbreviation

Description

M

Million

M&I

Measured and Indicated

Ma

Mega annum (Million years)

MAA

Multiple Account Analysis

MAG

Magnetic

masl

Metres above sea level

MBBR

Mix bed bioreactor

MC

Mosquito Creek

MDD

Maximum day demand

Mg

Magnesium

MIBC

Methyl isobutyl carbinol

MINFILE

Mineral Inventory of BC

Minimum NOWL

Minimum Normal Operating Water Level

ML

Metal leaching

MoF

Ministry of Forests

Mosquito Creek Gold

Mosquito Creek Gold Mining Company Ltd.

MOTI

Ministry of Transportation and Infrastructure

MPa

Megapascals

MRE

Mineral Resource Estimate

MS

Mass Spectrometry

MSC

Mineral sorter concentrates

msl

mean sea level

MSO

Minable Shape Optimiser®

Mtn

Mountain

MTO

Mineral Titles Online

MTOs

Material take-offs

MZ

Mosquito Zone

MZP

Main Zone Pit

Na

Sodium

Na2S2O5

Sodium metabisulphite

NaCN

Sodium cyanide

NAG

net acid generation

NaOH

Sodium hydroxide

NE

Northeast

Newmont

Newmont Mining Corporation


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Preliminary Economic Assessment for the Cariboo Gold Project


Table of Abbreviations

Abbreviation

Description

NHA

Northern Health Authority

NI

National Instrument

Ni

Nickel

No.

Number

NO2

Nitrogen dioxide

NPAG

Non-potentially acid generating

NPV

Net present value

NQ

NQ - drill core diameter (47.6 millimetres)

NS

no sample

NS

North-South orientated

NSCP

North Seepage Collection Pond

NSR

Net smelter return

NWP

Northwest Zone Pit

O2

Oxygen

ODV

Osisko Development Corp.

OGR

Osisko Gold Royalties Ltd.

OK

Ordinary kriging

OPEX

Operational expenditure

OREAS

Ore Research and Exploration Pty Ltd.

P80

80% passing - Product size

Pa

Pascal

PAG

Potentially acid generating

Pan Orvana

Pan Orvana Resources Inc.

PAX

Potassium amyl xanthate

Paycore

Paycore Drilling

Pb

Lead

PD

Project Description

PDT

Project Development Team

PEA

Preliminary Economic Assessment

PFS

Pre-feasibility study

pH

Potential of hydrogen

PLC

Programmable logic controller

PM

Particulate matter

PMP

Project Management Plan

PoC

Push-to-Talk over Cellular


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Table of Abbreviations

Abbreviation

Description

PQ

PQ - drill core diameter (85.0 millimetres)

PST

Pacific Standard Time

Q2

Second quarter

Q3

Third quarter

QA/QC

Quality Assurance / Quality Control

QP

Qualified person

QR

Quesnel River

RCP

Reclamation and Closure Plan

RDFFG

Regional District of Fraser Fort George

RFP

Request for Proposal

RISC

Resources Information Standards Committee

ROM

Run of mine

RQD

Rock quality designation

RSA

Regional Study Area

RSPCSR

Regulation for Soil Protection and Contaminated Sites Rehabilitation

RWi

Rod work index

S

Sulphur

S.U.

Standard Unit

SAG

Semi-autogenous grinding

SARA

Species at Risk Act

SBS

Sub-Boreal Spruce

SCP

Sediment control pond

SEDAR

System for electronic document analysis and retrieval

SESC

Surface Erosion and Sediment Control

SFE

Shake flask extraction

SG

Specific gravity

SGS

Société Générale de Surveillance

SI

Siltstone

SMBS

Sodium metabisulphite

Snowden

Snowden Mining Industry Consultants Pty

SO2

Sulphur dioxide

SO4

Sulphate

SP

Self-potential

SRK

SRK Consulting (Canada) Inc.

SS

Lower Sandstone Facies - Chap 16 - should it be LSSF


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Table of Abbreviations

Abbreviation

Description

SSCP

South Seepage Collection Pond

SST

Site Services Team

Std

Standard S.U.

Supervisor

Snowden Supervisor v.8.6 software

SWTS

 

SZ

Shaft Zone

TAC

Technical Advisory Committee

Talisker

Talisker Exploration Services Inc.

tCO2e

Tonne Carbon dioxide equivalent

TCS

Triaxial compressive strength

TL

Transmission Line

TMF

Tailings Management Facility

TNG

Tŝilhqot'in National Government

TSF

Tailings Storage Facility

TSS

Total suspended solids

TSX

Toronto Stock Exchange

TSX:V

TSX Venture Exchange

U/F

Underflow

U/G

Underground

UCS

Uniaxial compressive strength

USD or US$

United States dollar (examples of use: USD2.5M / US$2.5M)

UTM

Universal Transverse Mercator

UWR

Ungulate winter ranges

VFD

Variable frequency drives

VLF-EM

Very-low-frequency electromagnetic

vs.

Versus

VZ

Valley Zone

w/w

Weight per weight

WAD

Weak acid dissociable

WAN

Wide area network

WB

Water Balance

WBM

Water Balance Modelling

WBS

Work breakdown structure

WBWQM

Water Balance and Water Quality Model

Wells

District of Wells


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Table of Abbreviations

Abbreviation

Description

WGC

World Gold Council

WMP

Water Management Plan

WQM

Water Quality Model

WRP

Waste rock pile

WRSF

Waste Rock Storage Facility

WSP

WSP Canada Inc.

WTS

Water Treatment System

XRT

X-Ray Transmission

Zn

Zinc


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Table of Abbreviations - Units of Measurement

Unit

Description

$/t

dollars per metric tonne

%

percent

% solids

percent solids by weight

°C

degrees Celsius

°F

degrees Fahrenheit

µm

micron

A

ampere

cm

centimetre

d

day (24 hours)

deg. or °

angular degree

ft or '

feet (12 inches)

G

giga

g

gram

g/cm

grams per cubic centimetre

g/t

grams per tonne

GPa

gigapascal

Gt

gigatonne

h

hour (60 minutes)

ha

hectare

hp

horsepower

in. or "

inch

k

kips

K

Thousand (000)

kcfm

kilowatt cubic foot per minute

kg

kilogram

kg/m2

kilograms per metre square

kg/m3

kilograms per metre cube

kg/t

kilograms per tonne

km

kilometre

km/h

kilometre per hour

kt

kilotonne

kV

kilovolt

kW

kilowatt

kWh

kilowatt hour

kWh/t

kilowatt hour per tonne


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Table of Abbreviations - Units of Measurement

Unit

Description

L

Litre

L/min

Litres per minute

L/s

Litres per second

lb / lbs

pound / pounds

m

metre

m/h

metres per hour

m/s

metres per second

m2

square metre

m3

cubic metre

m3/d

cubic metres per day

m3/h

cubic metres per hour

m3/s

cubic metres per second

mesh

US Mesh

mH

metres high

min

minute (60 seconds)

mm

millimetre

Mm3

million cubic metres

MPa

megapascal

Mt

million tonnes

Mtpy

million tonnes per year

MVA

Mega volt ampere

MW

megawatt

mW

metres wide

Ø

diameter

oz

Troy ounce

ppm

parts per million

psi

pounds per square inch

s

second

st

short ton (2,000 lbs)

t

tonne (1,000 kg) (metric ton)

tpd

tonnes per day

tph

tonnes per hour

tpy

tonnes per year

V

volt

W

watt


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Preliminary Economic Assessment for the Cariboo Gold Project


Table of Abbreviations - Units of Measurement

Unit

Description

W/m2

watts per square metre

wk

week

y

year (365 days)


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Preliminary Economic Assessment for the Cariboo Gold Project

 

1. Summary

This NI 43-101 Technical Report Preliminary Economic Assessment for the Cariboo Gold Project ("the Report") Report was prepared and compiled by BBA Engineering Ltd. ("BBA") at the request of Osisko Development Corp. ("ODV"). The Cariboo Gold Project (the "Project") is an advanced stage gold exploration project located in the historic Wells-Barkerville mining camp, in the District of Wells ("Wells"), British Columbia ("BC"), Canada. The purpose of this Report is to summarize the results of the Preliminary Economic Assessment ("PEA") for the Project in accordance with the guidelines of the Canadian Securities Administrators National Instrument 43-101 ("NI 43-101") and Form 43101F1.

This report was prepared based on contributions from several independent consulting firms including, InnovExplo Inc. ("InnovExplo"), SRK Consulting (Canada) Inc. ("SRK"), WSP Canada Inc. ("WSP". "WSP-Golder"), BBA Engineering Ltd. ("BBA"), Falkirk Environmental Consultants Ltd. ("Falkirk"), and Klohn Crippen Berger Ltd. ("KCB"). This study provides a base case assessment for developing the Cariboo Gold deposit as an underground mine with a Services Building, including concentrator, located at the Mine Site Complex at Wells and further processing at the Quesnel River ("QR") QR Mill. The Services Building concentrator is designed to have a capacity of 8,000 tonnes per day ("tpd") whereas the QR Mill has a capacity of 1,040 tpd. The Mine Site Complex and QR Mill are separated by approximately 111 kilometres ("km"). Waste rock storage will be located at the Bonanza Ledge Site, 3.5 km from the Mine Site Complex in Wells, and will store 14 million tonnes ("Mt") of waste material from the Project.

All monetary units in the Report are in Canadian dollars ("CAD" or "$"), unless otherwise specified. Costs are based on second quarter (Q2) 2022 dollars. Quantity and grades are rounded to reflect that the reported values represent approximations.

1.1. Contributors

The major PEA contributors and their respective areas of responsibility are presented in Table 1-1.



Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

Table 1-1: Report contributors

Qualified Person

General overview of responsibilities

Klohn Crippen Berger Ltd. ("KCB")

 

David Willms, P.Eng.
Michelle Liew, P.Eng.

 David Willms is a professional engineer in good standing with EGBC (No. 33062). He is co-author of sections 1, 2, 18, 25 to 27.

 Michelle Liew is a professional engineer in good standing with EGBC (No. 49051). She is co-author of sections 1,2, 20, 25 to 27.

InnovExplo Inc. ("InnovExplo")

 

Carl Pelletier, P.Geo.
Vincent Nadeau-Benoit, P.Geo.
Éric Lecomte, P.Eng.

 Carl Pelletier is a professional geologist in good standing with the OGQ (No. 384), PGO (No. 1713), EGBC (No. 43167) and NAPEG (No. L4160). He is co-author of chapters 1 to 12, 14, 23 and 25 to 27.

 Vincent Nadeau-Benoit is a professional geologist in good standing with the OGQ (No. 1535), EGBC (No. 36156) and NAPEG (No. L4154). He is co-author of chapters 1 to 12, 14, 23 and 25 to 27.

 Éric Lecomte is a professional engineer in good standing with the OIQ (No. 122047). He is author of Chapters 14.12 and 16, except sections 16.2, 16.3, 16.4. He is also co-author for the relevant portions of chapters 1, 2, 21, 25, 26 and 27 of the Technical Report.

BBA Engineering Ltd. ("BBA")

 

Mathieu Belisle, P.Eng.
Colin Hardie, P.Eng.

 Mathieu Bélisle is a professional engineer in good standing with the OIQ (No. 128549), EGBC (No. 49319) and PEO (No. 100210246) He is co-author of Chapters 1, 2, 18, 21, and 25-27, and author of chapters 13 and 17.

 Colin Hardie is a professional engineer in good standing with the EGBC (No.216397). He is co-author of Chapters 1, 2, 18, 21 and 25, 26 and 27, and author of chapters 3,19,22 and 24.

SRK Consulting (Canada) Inc.

 

Tim Coleman, P.Eng.

 Tim Coleman is a professional engineer in good standing with EGBC (No. 46105). He is the co-author of chapters 1, 25 and 26, 27 and the author of the geotechnical components of item 16.

Falkirk Environmental Consultants Ltd.

 

Katherine Mueller, P. Eng.

 Katherine Mueller is a professional engineer in good standing with the EGBC (No. 40116). She is the co-author of chapters 4 and 20, 1, 21, 25, 26 and 27.



Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project


Qualified Person

General overview of responsibilities

WSP Canada Inc. "WSP"

 

Eric Poirier, P.Eng., PMP

 Eric Poirier is a professional engineer in good standing with OIQ (No. 120063), NAPEG (No. L2229), and PEO (No. 100112909). He is the co-author if sections 1, 2, 21, 25 to 27 and the author of Chapters 18.2.1.2, 18.2.2 to 18.2.6, 18.2.8, 18.2.13, and 18.2.14.3

WSP USA Inc. (WSP Golder)

 

Tom Rutkowski, P.Eng.

 Thomas Rutkowski is a professional engineer in good standing with EGBC (No. 203939) and NAPEG (No. L3936). He is the co-author of chapter 18.

WSP Golder

 

Paul Gauthier, P.Eng.
Aytaç Göksu, P.Eng.
John Cunning, P.Eng.
Kristin Salzsauler, P.Geo.

 Paul Gauthier is a professional engineer in good standing with OIQ (No. 31178), and PEO (No 100080984). He is co-author of Chapters 1, 2, 25 and 27 and author of sections 17.7.1, 17.7.2.

 Aytaç Göksu is a professional engineer in good standing with EGBC (No. 54787) and OIQ (No. 5033990). He is the co-author of chapters 16, 18 and 20.

 John Cunning is a professional engineer in good standing with EGBC (No. 110898) and NAPEG (No. L1870). He is the co-author of chapter 18.

 Kristin Salzsauler is a professional geologist in good standing with EGBC (No. 164602) and NAPEG (No. L3315). She is the co-author of Chapter 20 and contributed to section 26.

1.2. Key Project Outcomes

The reader is advised that the results of the PEA summarized in this Report are intended to provide an initial, high-level review of the Project and potential design options. The PEA mine plan and economic model include numerous assumptions and the use of Inferred resources. Inferred resources are considered to be too speculative to be used in an economic analysis, except as allowed for by Canadian Securities Administrators' National Instrument 43-101 in PEA studies. There is no guarantee that Inferred resources can be converted to Indicated or Measured resources and, as such, there is no guarantee the Project economics described herein will be achieved.

The following list details the key project outcomes of the Report:

 Cariboo Gold Project Resources: 27.1 Mt of gold ("Au") at 4.0 g/t Au (Measured and Indicated) and 14.4 Mt at 3.5 g/t Au (Inferred);

 Total mineralized material mined: 28.2 Mt at 3.40 g/t Au average diluted gold grade;



Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

 

 Mine life of 12 years, with peak year payable production of 315,806 ounces, average life of mine ("LOM") annual payable production of 236,381 ounces of gold;

 Gold payable recovery of 92.1%;

 Payable production (LOM) of 2.84 million ("M") Au ounces; 

 Initial capital costs of $121.5M;

 Expansion capital costs of $716.1M; 

 Sustaining costs of $527.2M;

 Reclamation costs of $18.5M, and a salvage value of $61.1M; 

 Operating costs (total) of $94.0 per tonne mined;

 All-in sustaining costs of USD 961.6/oz net of by-product credits, including royalties, over LOM;

 

 Gross revenue of $6.29 billion ("B") and an operating cash flow of $3.32B LOM;

 Net present value ("NPV") of $763.8M at a 5% discount rate, and an internal rate of return ("IRR") of 21.4% after taxes and mining duties;

 LOM taxes of $660.8M and royalties of $314.3M;

 NPV of $1,195.3M at a 5% discount rate, and an IRR of 26.7% before taxes and mining duties; 

 Pay-back period (after start of operations) of 5.8 years pre-tax and 6.0 years after-tax;

 Approximately 330 workers during the construction period and up to 592 employees will be required during operations for Phase II;

 

 Phase I of the Project will commence in 2024 with 2,000 tonnes per day ("tpd") production, ramping up to 8,000 tpd production in 2027 for Phase II;

  Concentrator construction starting in Q1 2025. Commercial production planned for Q1 2027.

1.3. Property Description and Ownership

The Project is located in ODV's Cariboo Gold Project Main Block, a group of claims located in the historical Wells-Barkerville mining camp of British Columbia that extends for approximately 77 km from northwest to southeast.

The Project falls within the Cariboo Regional District ("CRD"), a division of the local government system in BC, and Wells, BC. Wells is situated 74 km east of Quesnel, approximately 115 km southeast of Prince George, and approximately 500 km north of Vancouver.

ODV's land holdings consist of 412 mineral titles totalling 155,147.09 hectares ("ha") across two contiguous property blocks known as the Cariboo Main Block and the QR Property. These mineral titles include mineral claims, mineral leases, placer claims, and placer leases.



Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

Through its 100% owned subsidiary Barkerville Gold Mines Ltd. ("BGM"), ODV holds 100% interest in 56 Cariboo Main Block placer titles, 35 QR Mill Property mineral claims, the QR mineral lease No. 320752, and 359 of the 376 Cariboo Main Block mineral and placer claims and placer leases. 17 mineral claims are jointly owned with other companies and individuals: ODV holds a 97.5% interest in six mineral claims, and 85% interest in two mineral claims, and a 50% interest in the other nine mineral claims.

The Project also contains 248 private land parcels from Crown-granted mineral claims (3,423.03 ha) that overlap many of the mineral titles where BGM is the registered owner on the title of the surface and/or undersurface rights to the parcels. A net smelter return (NSR) royalty of 5% payable to Osisko Gold Royalties Ltd. ("OGR") is the only royalty that applies to the Project.

1.4. Geology and Mineralization

The Project lies within the Kootenay Terrane of the Omineca Tectonic Belt in the south-central Canadian Cordillera. The Omineca rocks were complexly deformed by Middle Jurassic to Early Tertiary compressional tectonics, and by Tertiary transtension and extension. The Kootenay Terrane in the vicinity of the Project is subdivided into the eastern Cariboo and western Barkerville subterranes. The Cariboo Subterrane is juxtaposed on the Barkerville Subterrane by the east- dipping Pleasant Valley Thrust.

The Snowshoe Group, central to the Barkerville Subterrane, hosts the Project.

The Barkerville and Cariboo Subterranes comprise metamorphosed equivalents of continent- derived siliciclastic protoliths with interlayered marble units and granitic orthogneiss. The subterranes are pericratonic in character and are thought to have formed near the current western margin of Laurentia. Various authors suggest that both Barkerville and Cariboo Subterranes share the same tectostratigraphic position and depositional environment.

The principal gold-producing areas in the Barkerville Subterrane are hosted in rocks metamorphosed to lower-greenschist facies (sub-biotite isograd); amphibolite-facies rocks are locally found on the project but are not associated with any significant mineralization. The S1 and S2 fabrics are defined by phyllosilicate minerals (sericite and chlorite); they generally define foliation suggesting that peak metamorphic temperature coincided with the formation of cleavage.

Lode-gold mineralization in the Wells-Barkerville mining camp (Cariboo Gold District) shares many characteristics with an orogenic gold deposit model. Gold mineralization is associated with orogenic silica-carbonate-sericite-pyrite stable fluids moving along secondary permeability controlled by metamorphic fabrics, vein arrays, faults, lithologic contacts, and rheological contrasts.


Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

Deposit types on the Project consist of vein and replacement-type mineralization grouped into five inter-related styles: 1) Fault-fill breccia veins subparallel to foliation (S1), hosted in carbonaceous mudstone; 2) Vertical NE-trending extensional ("AXPL") veins dominantly hosted in sandstone units in S3 cleavages; 3) Fractured moderately dipping ENE-trending shear veins, hosted in sandstone units; 4) Gold-bearing sulphide replacements hosted in fold hinges of calcareous sandstone units; and 5) Gold-bearing sulphide replacement mineralization hosted in fault-bounded calcareous siltstone units.

1.5. Status of Exploration and Drilling

ODV's exploration team executed a systematic methodology to the exploration program on the Project. The program included geological mapping, channel, soil, and underground sampling, and diamond drilling.

The exploration team continues its geological mapping across the Project to identify lithologic contacts, define alteration and geochemical signatures, record micro- and macro-scale structural data, and to collect select rock samples. The targeted deposit types within the Project are structurally and/or geochemically controlled, thus the mapping data continues to play a vital role in refining the geologic model of the area and defining mineralized zones.

The objectives for the 2020 and 2021 diamond drilling programs (the "2020 Program" and the "2021 Program") was to test new brownfields targets adjacent to known deposits, infill high-grade vein corridors modelled from the 2019 Preliminary Economic Assessment ("PEA") classified as inferred, and explore the depth potential of known deposits.

The focus of the 2022 diamond drilling program (the "2022 Program") is the infill of a proposed underground bulk-sampling area, the continued category conversion from inferred to indicated status of modelled vein corridors, and the delineation of additional vein corridors. The 2022 Program is ongoing as of May 12, 2022, and assay results are not yet received.

1.6. Mineral Resource Estimate

The 2022 Mineral Resource Estimate for the Project (the "2022 MRE") encompasses updated resources for the deposits of Cow Mountain (Cow Zone and Valley Zone), Island Mountain (Shaft Zone and Mosquito Zone), and Barkerville Mountain (Lowhee Zone). The updates were prepared by Leonardo de Souza, MAusIMM (CP), of Talisker Exploration Services Inc. ("Talisker"), and reviewed and validated by Carl Pelletier, P.Geo., and Vincent Nadeau-Benoit, P.Geo., both of InnovExplo Inc. ("InnovExplo"), using all available information. The KL Zone and BC Vein deposit were not drilled in 2021, but the search ellipse and distances were altered to match the other deposits. The BC Vein deposit has been depleted since the 2020 MRE. No changes are reported for Bonanza Ledge (Barkerville Mountain) deposit since the 2019 MRE. To report the 2022 MRE for the Project, conceptual mining shapes were used as constraints to demonstrate that the "reasonable prospects for eventual economic extraction" criteria is met; as defined in the CIM Definition Standards on Mineral Resources and Reserves (CIM Definition Standards; May 10, 2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (MRMR Best Practice Guidelines; November 29, 2019).


Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

The 2022 MRE covers all the deposits in the Cow-Island-Barkerville Mountain Corridor. The resource area for the Cow Mountain/Island Mountain segment covers a strike length of 3.7 km and a width of approximately 700 metres ("m"), down to a vertical depth of 600 m below surface. The estimate for the Barkerville Mountain segment covers a strike length of 3 km and a width of approximately 700 m, down to a vertical depth of 500 m below surface.

Two diamond drill hole databases cover the Project: Bonanza Ledge and BM-CM-IM (Barkerville Mountain including the BC Vein, KL, and Lowhee deposits, Cow Mountain including the Cow and Valley deposits, Island Mountain including the Shaft and Mosquito deposits). These databases were filtered by deposit (Cow, Shaft, Valley, Mosquito, BC Vein, KL or Lowhee) before working in Datamine. A subset of drill holes was used to generate the 2022 MRE database for each deposit The Cow deposit contains 1,252 validated drill holes. The Valley deposit contains 341 validated drill holes. The Shaft deposit database contains 805 validated drill holes. The Mosquito deposit contains 776 validated drill holes. The Lowhee deposit contains 372 validated drill holes. The BC Vein and KL deposits contain 295 validated drill holes.

The qualified professionals ("QP") data verification included the diamond drill hole databases used for the 2022 MRE (the "ODV Databases"), as well as the review and validation of the geological models of each deposit, and the review of information on mined-out areas and the data for selected drill holes (assays, quality assurance/quality control ["QA/QC"] program, downhole surveys, lithologies, alteration and structures).

The QPs also reviewed and validated the resource estimation process followed by ODV and Talisker Exploration Services Inc. ("Talisker"), including all parameters, geological interpretation, basic statistics, variography, interpolation parameters, block model construction, scripts that run the model, volumetric report, and the validation process.

Historical work subject to verification consisted of the holes used for the 2020 MRE (Beausoleil and Pelletier, 2020). Basic cross-check routines were performed between the current ODV Databases and the previously validated database for the 2020 MRE.

The QPs were granted access to the assay certificates for all holes in the 2021 drilling programs. Assays were verified for 5% of the drill holes. No discrepancies were found.


Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

Overall, the QPs data verification demonstrates that the data, protocols, and estimation process for the Project are acceptable. The QPs consider the ODV databases to be valid and of sufficient quality to be used for the mineral resource estimate herein.

ODV updated, in 2021, the geological models for the Cow, Valley, Shaft, Mosquito, and BC Vein deposits using historical data, the data from the 2015-2019 drilling programs, and new holes from the 2020-2021 drilling programs. The KL and BC Vein deposits were not drilled in 2021, though the geological model was reviewed by the QPs. The Bonanza Ledge geological model, initially from Brousseau et al. (2017), was reviewed and validated by the QPs.

A total of 471 geological solids were created and/or updated for all the deposits.

The QPs have classified the 2022 MRE as measured, indicated, and inferred mineral resources based on data density, search ellipse criteria, drill hole density, and interpolation parameters. The 2022 MRE is considered to be reliable and based on quality data and geological knowledge. The mineral resource estimate follow 2014 CIM Definition Standards on Mineral Resources and Reserves.

Table 1-2 displays the results of the 2022 Mineral Resource Estimate at the official 2.0 g/t Au cut-off grade for the eight deposits on the Project: Cow, Valley, Shaft, Mosquito, BC Vein and Splays, KL, Lowhee, and Bonanza Ledge deposits.


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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

Table 1-2: Cariboo Gold Project 2022 Mineral Resource Estimate reported at a 2.0 g/t Au cut-off grade

(except for Bonanza Ledge; reported at a 3.5 g/t Au cut-off grade) 

Category Deposit Tonnes Grade Ounces
'000 (Au g/t) '000
Measured Bonanza Ledge 47 5.1 8
Indicated Bonanza Ledge 32 4.0 4
BC Vein 1,030 3.1 103
KL 389 3.2 40
Lowhee 1,621 3.6 188
Mosquito 1,795 4.3 249
Shaft 11,139 4.3 1,531
Valley 4,403 3.8 536
Cow 6,645 3.8 811
Total Indicated Mineral Resources 27,055 4.0 3,463
Inferred BC Vein 461 3.5 53
KL 1,905 2.8 168
Lowhee 520 3.5 59
Mosquito 1,262 3.6 146
       
Shaft 5,730 3.9 725
Valley 2,135 3.4 235
Cow 2,394 3.1 236
Total Measured and Indicated Mineral Resources 27,102 4.0 3,470
Total Inferred Mineral Resources 14,407 3.5 1,621

Mineral Resource Estimate notes:

1. The independent and qualified persons for the Mineral Resource Estimates, as defined by NI 43-101, are Carl Pelletier, P.Geo., and Vincent Nadeau Benoit, P.Geo. (InnovExplo Inc.). The effective date of the 2022 Mineral Resource Estimate is May 17, 2022.

2. These mineral resources are not mineral reserves as they do not have demonstrated economic viability.

3. The Mineral Resource Estimate conforms to the 2014 CIM Definition Standards on Mineral Resources and Reserves and follows the 2019 CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.

4. A total of 471 vein zones were modelled for the Cow Mountain (Cow and Valley), Island Mountain (Shaft and Mosquito), Barkerville Mountain (BC Vein, KL, and Lowhee) deposits and one gold zone for Bonanza Ledge. A minimum true thickness of 2.0 m was applied, using the grade of the adjacent material when assayed or a value of zero when not assayed.

5. The estimate is reported for a potential underground scenario at a cut-off grade of 2.0 g/t Au, except for Bonanza Ledge at a cut-off grade of 3.5 g/t Au. The cut-off grade for the Cow, Valley, Shaft, Mosquito, BC Vein, KL, and Lowhee deposits was calculated using a gold price of USD1,600 per ounce; a USD/CAD exchange rate of 1.30; a global mining cost of $50.41/t; a processing & transport cost of $30.41/t; and a G&A + Environmental cost of $16.18/t. The cut-off grade for the Bonanza Ledge deposit was calculated using a gold price of USD1,600 per ounce; a USD/CAD exchange rate of 1.30; a global mining cost of $79.13/t; a processing & transport cost of $60.00/t; and a G&A + Environmental cost of $51.65/t. The cut- off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, mining cost, etc.).



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6. Density values for Cow, Shaft, and BC Vein were estimated using the ID2 interpolation method, with a value applied for the non-estimated blocks of 2.80 g/cm3 for Cow, 2.79 g/cm3 for Shaft, and 2.69 g/cm3 for BC Vein. Median densities were applied for Valley (2.81 g/cm3), Mosquito (2.79 g/cm3), KL (2.81 g/cm3) and Lowhee (2.75 g/cm3). A density of 3.20 g/cm3 was applied for Bonanza Ledge.

7. A four-step capping procedure was applied to composited data for Cow (3.0 m), Valley (1.5 m), Shaft (2.0 m), Mosquito (2.5 m), BC Vein (2.0 m), KL (1.75 m), and Lowhee (1.5 m). Restricted search ellipsoids ranged from 7 to 50 g/t Au at four different distances ranging from 25 m to 250 m for each deposit. High grades at Bonanza Ledge were capped at 70 g/t Au on 2.0 m composited data.

8. The mineral resources for the Cow, Valley, Shaft, Mosquito, BC Vein, KL, and Lowhee vein zones were estimated using Datamine StudioTM RM 1.9 software using hard boundaries on composited assays. The OK method was used to interpolate a sub-blocked model (parent block size = 5 m x 5 m x 5 m). Mineral resources for Bonanza Ledge were estimated using GEOVIA GEMSTM 6.7 software using hard boundaries on composited assays. The OK method was used to interpolate a block model (block size = 2 m x 2 m x 5 m).

9. Results are presented in situ. Ounce (troy) = metric tons x grade / 31.10348. Calculations used metric units (metres, tonnes, g/t). The number of tonnes was rounded to the nearest thousand. Any discrepancies in the totals are due to rounding effects. Rounding followed the recommendations as per NI 43-101.

10. The qualified persons responsible for this section of the technical report are not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant factors that could materially affect the mineral resource estimate.

1.7. Mining Methods

1.7.1.  Overview

The Project consists of three main zones (Cow, Shaft, and Valley) with two smaller satellite zones (Lowhee & Mosquito). The rate of exploitation of each deposit will change over time, while the overall steady state production rate is 8,000 tpd. In 2024, production will begin at 2,000 tpd for 2.5 years and will ramp up to 8,000 tpd (pending permitting) in 2027 for 9.5 years.

The selected mining method is long hole with longitudinal retreat. Primary materials handling fleet will comprise of 10 tonne (t) scooptram Load Haul Dump ("LHD") and 50 t haul trucks.

Pre-production of the underground workings is set to begin in 2023 with 2,000 tpd achieved in Q4 2024 and full production of 8,000 tpd at the Mine Site Complex in Q1 2027. Underground mine life is set to last until 2035.

A hydrogeological investigation program was completed to provide key groundwater related inputs to the PEA, namely, to estimate potential mine dewatering rates, to further understanding of the regional groundwater flow regime, and to characterize potential impacts of mine dewatering on groundwater and surface water systems.



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1.7.2.   Geotechnical Evaluation

SRK undertook two geotechnical field investigation programs on the Project designed to characterize the rock geotechnical conditions and support the underground mine and infrastructure designs, structural geology review, a detailed evaluation of geotechnical design domains, and the development of geotechnical design guidelines within each of these domains. These guidelines included excavation design parameters, estimates of dilution, as well as support requirements.

The 2018 geotechnical field data acquisition program included drilling and logging of 13 dedicated geotechnical drill holes. The 2021 geotechnical field data acquisition program included drilling and logging of 5 dedicated geotechnical drill holes. During both programs representative rock core samples from each geotechnical domain were collected from the geotechnical drill holes for laboratory testing.

A review of photographs taken of exploration drill holes was undertaken from 2020 to 2022 to build a bigger geotechnical understanding of the brock mass conditions across the Project site to optimize geotechnical design. A total of 83,047 m of photo-logging has been conducted to date.

In addition to the 3D structural model which had already been created to represent the major Regional Fault structures on the Cariboo Gold Project property, SRK also provided a 3D fault model that was created for the secondary structures.

The geotechnical evaluation focused on a qualitative drill hole based assessment of the rock mass forming the immediate hanging wall and footwall of the proposed mineable stopes in each vein. These drill holes were individually assessed based on the lithology logging data provided by ODV, the regional structural model provided by ODV, the secondary structural model provided by SRK, the geotechnical data acquired from the field program, and photographic review for the planned stopes in each major vein corridor, in each mining zone.

Excavation stability assessments have been completed using well-established empirical and semi- empirical relationships and engineering experience. The design procedure involves two steps: the quality of the rock mass is rated using a pre-defined classification system, and then the expected performance of the underground openings is predicted using an empirically derived stability correlation with the rock mass quality.

Sub-level open stoping with a sub-level spacing of 30 m is achievable in rock mass Class 1 to Class 3 lower by varying the open strike length and the use of two-phase backfill in the Class 3 lower rock mass in the Shaft Zone.



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1.7.3.   Mining Method Description

The long hole mining method was primarily selected due to the sub vertical geometry of mineralized vein corridors and the relatively lower cost. This method involves driving two drifts longitudinally along the mineralized vein corridors to define a stope. The top access serves as a drilling platform while the bottom access allows for mucking of drilled then blasted material. Once empty, these stopes are then backfilled with either pastefill or cemented rockfill. Stopes are mined retreating towards the access. This method allows for simultaneous mining of stopes along different vein corridors as well as along the same corridor if a pillar exists between active levels.

The minimum designed stope width for all zones is 3.7 m and the sill to sill stope height for all zones is 30 m. The maximum permissible strike length (the distance along strike that can be mined before backfilling is required) is a function of geotechnical constraints and differs by zone.

1.7.4.   Mine Design

There will be three portals accessing underground ramps: The Cow portal to access the Lowhee Zone, the Island Mountain portal to access the Shaft Zone and Mosquito Zone as well as access the Main Ramp, and the Valley portal to develop the Main ramp connecting to the Island Mountain portal and access the Cow Zone and Valley Zone. The Valley portal will be used as the main services access. The zones are accessed by main ramps connecting to haulage drift and each individual zone has an internal ramp system. The Mosquito zone is further west, connected to Shaft by a 1,150 m long haulage drift.

Each zone is planned to be mined with the longitudinal retreat long hole method. Sublevels for all zones are 30 m sill to sill and a combination of Cemented Rock Fill ("CRF") and pastefill are planned to backfill mined stopes. Stope strike lengths vary by zone based on geotechnical assessments of each zone. All zones are capped by a crown pillar (15 m for Cow and Valley and 20 m for Shaft and Mosquito) and vary in depth.

1.7.5.   Underground Infrastructure

A major piece of underground infrastructure for the Project is the underground crushing system (two lines in parallel). This crusher is located below the Services Building in a location which has been identified as geotechnically favourable for long term infrastructure. Mineralized material will be brought to the crusher by underground trucks from all mining zones.



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Mineralized material will ultimately be brought to surface using a vertical conveyor to be pre- concentrated by sorting and flotation. The material rejected by the sorter will be transferred back underground using a wastepass raise and then subsequently used as backfill material or hauled using automated trucks to the Bonanza Ledge Waste Rock Storage Facility ("WRSF").

The mine will include haulage drifts connecting the five separate zones, an underground garage, and pumping stations. The Valley portal will provide access for materials and the labour force.

1.7.6.   Development Schedule

The development schedule has been created with a combination of traditional jumbos' development and road headers. The road headers are scheduled to provide a lateral advance of 200 m per month in single heading conditions. The jumbos will provide an average overall lateral advance of 300 m per month per jumbo crew when multiple active headings are available. Lateral development will rely on contractors for initial pre-production phase, with a handover to mine personnel with the initiation of full production.

1.7.7.   Electrical Distribution and Networks

The mine will be supplied with a 13.8 kV line from a diesel generator before a connection to the local grid is established. Substations will transform the power to 600 or 1000 V depending on need or equipment to be supplied.

Fiber optics will be used to provide a data backbone to the mine. The mine network will then rely on 4G provided by radiant cables. This will allow for communication, automation of equipment as well as ventilation-on-demand.

1.7.8.   Mine Automation and Monitoring Systems

The layout of mine levels was designed to facilitate the automation of mucking and hauling. Each level will have one load out which will allow for tele-remote loading of haulage trucks or loading of dumped waste material. Automation, or tele-operation of haulage trucks will be limited to between shifts only. Automation and tele-remote for LHD will be available any time as production levels will be isolated with barricades. By the end of 2026, all mucking operation on the production levels will be fully automated, with one operator for two scooptrams.



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1.7.9.   Permanent Mine Pumping Network

The mine dewatering network was designed to handle 16,000 cubic metres per day ("m3/day"). This system will also contribute to the drawdown of historic excavations.

1.7.10. Ventilation

The ventilation system has been designed to comply with British Columbia regulations. Airflow required to ventilate diesel engines were compiled using a 0.06 cubic metres per second ("m3/s") / kilowatt ("kw") rate.

The system will be comprised of five independent intake fresh air raises that will all exhaust via the main ramps and portals. The total estimated airflow required to meet production is 920,000 cubic feed per minute ("cfm") (435 m3/s).

1.7.11. Production Rate

Beginning in 2024, the total production rate will be 2,000 tpd (Phase I), ramping up in 2027 to 8,000 tpd (Phase II) (mineralized material above cut-off grade) with each zone contributing a different ratio to production over time.

1.7.12. Production Plan

The life of mine plan ("LOM") has a 12-year mine life at approximately 8,000 tpd. Production ramp- up to steady state of 8,000 tpd is achievable in 2027, the third production year with completion of the flotation circuit. The overall mine plan comprises 28.2 million tonnes ("Mt") of mineralized material that will be processed with an average grade of 3.4 grams per tonne ("g/t") gold ("Au"). The mine will produce 8.3 Mt of waste from development over the life of mine.



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Table 1-3: Mineralized material produced per year

Year 2023 2024 2025 2026 2027 2028 2029
Lowhee t 53,099 616,301 186,095 348,999 403,789 - -
g/t 2.86 3.32 2.65 2.61 2.76 - -
Cow t - - - 57,647 684,812 730,964 811,506
g/t - - - 3.14 3.51 2.69 2.91
Valley t - - - 431,435 625,551 549,000 360,175
g/t - - - 2.88 3.45 3.45 3.49
Shaft t - 62,098 553,712 629,754 1,143,684 1,289,902 1,294,069
g/t - 3.59 4.14 3.70 3.51 3.39 3.56
Mosquito t - - - - 51,557 362,073 456,250
g/t - - - - 3.40 3.57 3.51
Year 2030 2031 2032 2033 2034 2035 2036
Lowhee t - - - - - - -
g/t - - - - - - -
Cow t 839,349 811,528 822,288 819,803 883,710 382,654 -
g/t 3.10 3.01 3.10 3.03 3.03 2.76 -
Valley t 365,000 365,000 366,000 339,430 541,043 484,111 -
g/t 3.24 3.88 3.61 3.19 3.11 2.95 -
Shaft t 1,292,372 1,307,471 1,294,350 1,504,505 1,424,625 977,577 -
g/t 4.19 3.84 3.86 4.13 3.41 3.21 -
Mosquito t 451,887 456,250 456,650 267,192 - - -
g/t 3.39 3.36 3.04 2.62 - - -

1.7.13. Mine Equipment and Personnel

During pre-production, all development will be conducted by mine contractors. These contractors will provide the equipment used to develop lateral advance with the exception of the road headers. The contractor will own the equipment and it will be leased by ODV.

The mine will operate 365 days/year. A total of 388 employees related to underground mining for operation and maintenance services for Phase II are anticipated in Wells.



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1.8. Mineral Processing and Metallurgical Testing

A preliminary metallurgical testwork program was previously undertaken to determine the metallurgical response on samples prepared from drill holes obtained from the Shaft, Cow, Valley and Mosquito deposits. The testwork consisted of an investigation into the amenability of mineral sorting to pre-concentrate the run of mine ("ROM") prior to milling, chemical characterization, a preliminary evaluation of comminution characteristics, a series of gravity, flotation and leaching tests, cyanide destruction testing as well as preliminary thickening and rheology tests. Additional testwork on samples from the Shaft deposit was performed during the Technical Report and Preliminary Economic Assessment for the Cariboo Gold Project. The new testwork consisted of metallurgical testing on mineral sorting test products, an extended gravity recoverable test, a series of flotation and cyanide leaching testing, a feasibility past fill test as well as a final dewatering and rheology test. Testwork data from the "NI 43-101 Technical Report, Preliminary Economic Assessment of the Cariboo Gold Project, Effective date: August 25, 2020", as well as new testwork with Effective date: April 25, 2022was considered for the process design.

1.9. Recovery Methods

The Cariboo Gold Project ("the Project") will ramp up tonnage in two phases, Phase I starting with a 2,000 tonnes per day ("tpd") mineral sorting and leaching flowsheet, followed by Phase II an 8,000 tpd mineral sorting, flotation, and leaching flowsheet.

In the first phase, the mineralized material will be processed in two stages at two sites. The Bonanza Ledge Site located at the current Bonanza Ledge Mine, and the Quesnel River ("QR") Mill located 116 kilometres ("km") from the Bonanza Ledge Site.

For the initial throughput of 2,000 tpd, a pre-concentrator, including mobile crushing and mineral sorting, will be built at the Bonanza Ledge Site. The use of the Bonanza Ledge Site will reduce the overall operation and transportation costs. The crushing operation will be a mobile unit, operated by a sub-contractor, and the crushed product will be processed in a mineral sorting circuit. The concentrate from the sorted concentrate will be trucked to the QR Mill for further comminution, leaching, and refining.

The QR Mill is an existing plant with a daily capacity to treat 850 tonnes ("t") of mineralized material. The QR Mill will require modifications to increase capacity up to 1,040 tpd and to process the higher concentrate feed grades from the Project.

In the second phase, the mineralized material will be processed in two stages at two sites. The Mine Site Complex, located in the District of Wells ("Wells"), and the QR Mill located 111 km west of the Mine Site Complex.



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For the expanded throughput of 8,000 tpd, crushing will occur underground and will then be conveyed to the surface, where mineral sorting, grinding and flotation will be conducted in a Services Building at the Mine Site Complex. It is expected that it will take six months from start-up to ramp up to the full throughput. The Mine Site Complex Services Building and underground facility will serve as a pre-concentration step to reduce the overall operation and transportation costs. The primary crushing operation will be located underground, and the crushed product will be conveyed to the surface to feed a sizing screen. The sizing screen undersize will be discharged into a fine storage bin and the oversize will be sent to the mineral sorting circuit. The sorted concentrate will be combined with the fine storage bin material to feed a grinding and flotation circuit. The flotation concentrate will be trucked to the QR Mill for further comminution, leaching, and refining. The overall gold recovery will be 92.1%.

1.10. Project Infrastructure

The Project includes the following major components within the Project Footprint:

 Underground extraction infrastructure, two access portals (Island Mountain and Valley), conveyor and crushing facility;

 A Services Building at the Mine Site Complex containing a Surface Concentrator, Paste Backfill Plant, maintenance shop, mine dry, mine rescue, offices, and warehouse facilities;

 Electrical Substation; Workers Accommodation;

 Potable water well, pumping, treatment, storage, and distribution system; Sewage treatment system;

 Diesel and propane storage and distribution; Security Facilities and Main Entrance Gate;

 Firewater Pumping Station and Firewater Distribution Piping System; Bulk fill Area (BFA);

 Water Treatment Plant (WTP);

 A waste rock storage facility (WRSF) located at the Bonanza Ledge Site near the District of Wells, and associated access roads;

 ODV's existing Quesnel River Mill (QR Mill) and associated infrastructure, including upgrades to the existing QR Mill and worker's accommodations, and construction of a filtered stack tailings storage facility (FSTSF);



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 Transportation Routes:

- Transportation of concentrate between the Mine Site Complex and the QR Mill site along 56 kilometres (km) of Highway 26 and 59 km of the 500 Nyland Lake Forest Service Road, a forest service road maintained by West Fraser Mills Ltd.;

- Transportation of workers, goods and service providers to Wells from Quesnel, BC, along Highway 26. A new highway bypass will be built before Wells to enable traffic to exit the highway before the community; and

- Transportation of workers and goods to the QR Mill from Quesnel along Highway 26 and the 500 Nyland Lake Road, and workers along the Quesnel Hydraulic Road to 2700 Road and the 500 Nyland Lake Road;

 Transmission Line: a new 138 kilovolt ("kV") transmission line, 69.3 km in length, from Barlow Substation, near Quesnel to the Mine Site Complex that follows a corridor north of Highway 26 along forest service roads or other disturbance areas where possible. In the Project EA, a 69 kV line was proposed. While there is a change in the kV requirements, no changes to right of way, footprint or pole size are anticipated. For the purposes of this Report, the transmission line will be referred to as a 69 kV/138 kV transmission line.

1.11. Environmental and Permitting

1.11.1.   Regulatory Context and Environmental Studies

An Environmental Assessment (EA) for the Project was initiated with the submission and acceptance of an initial project description (IPD) in 2020, as per the BC Environmental Assessment Act (2018), at a production rate of 4,750 tpd. Issuance of an Environmental Assessment Certificate ("EAC") is expected after successful review of the Application. The use of the updated resources in the PEA demonstrates the potential growth of the Project allowing for a scaled ramp up of activity to 8,000 tpd pending required permitting. Any changes to the Certified Project Description (or activities/works not authorized by the EAC), resulting from the increased production rate will first require an amendment to the Project EAC before proceeding to an updated detailed design and ensuing permit amendment applications.



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As part of the EA Application for the Project, site-specific environmental baseline modelling and existing conditions characterization has been ongoing since 2016, with updates made to various reports following comments from the Technical Advisory Committee and the Participating Indigenous nations. ODV has prepared a preliminary list of key provincial and federal authorizations, licenses and permits that may be required for the Project, following the EA process. The QR Mill and Bonanza Ledge Mine, constituent parts of the Project, are authorized under separate Mines Act and Environmental Management Act permits, and each have their own associated reclamation bonding and liability estimates. Extensive baseline data collection and monitoring occurred as part of permit amendment applications for these sites, and monitoring data continues to be collected in support of site-specific environmental management and permit requirements.

Environmental baseline studies and modelling for the CGP have been undertaken in the following areas: air quality, terrain and soils, vegetation, wildlife and wildlife habitat, climate and physiography, fisheries and aquatic resources, surface water, and groundwater. In addition, ODV has established environmental monitoring plans for a suite of valued components to respond to regulatory requirements and best management practices for the Project.

1.11.2.  Considerations of Social and Community Impacts

Since 2016, ODV has been undertaking meaningful and transparent engagement with Indigenous nations, the public, local community members, provincial and local government agencies and other stakeholders; and this engagement is ongoing. Positive relationships have been developed and maintained with three Participating Indigenous nations, Lhtako Dené Nation, Xat'śūll First Nation, Williams Lake First Nation, and ODV intends to maintain these relationships through all phases of the Project. CGP is in the asserted traditional territory of the Lhtako Dené Nation, while Xat'śūll First Nation territory overlaps the QR Mill, transportation routes and Mine Site areas, and Williams Lake First Nation's traditional territory is located to the southeast of the Project area overlapping the QR Mill and parts of the 500 Nyland Lake Forest Service Road.

1.11.3. Mine Reclamation and Closure Plan

ODV has prepared various Reclamation and Closure Plans (RCP) for the Project to detail how the sites will be reclaimed to a safe, stable, and non-polluting condition. An updated RCP was provided as an appendix to the Environmental Assessment (EA) for the Project. RCPs will continue to be updated as mine plans evolve, regulatory guidelines change, and in accordance with permit requirements. The Project footprint at each site has been divided into Master Areas to reflect disturbance type and proposed end land use. Detailed closure and reclamation prescriptions will be provided for each Master Area.



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1.12. Capital and Operating Costs Estimates

1.12.1.   Capital Costs

The total initial capital cost for the Cariboo Gold Project is estimated to be $121.5M and the total expansion capital cost is estimated to be $716.1M. The overall capital cost estimate developed in this PEA generally meets the American Association of Cost Engineers ("AACE") Class 4 requirements and has an accuracy range of between -30% and +30%. The capital cost estimate was compiled using mix of quotations and budgetary quotations, database costs, and database factors. Items such as sales taxes, land acquisition, permitting, licensing, feasibility studies and financing costs are not included in the cost estimate.

Costs are expressed in Q2 2022 Canadian dollars with an exchange rate of CAD 1.00 for USD 0.79 with no allowances for escalation, currency fluctuation or interest during construction.

The cumulative life of mine capital expenditures ("CAPEX"), including initial capital, expansion capital, sustaining capital, is estimated to be $1,364.8M. The Project's site reclamation and closure costs are estimated at 18.5M and it's salvage value is expected to be $61.1M.

Table 1-4: Project capital costs summary

Area Cost Area Description Initial capital
cost ($M)
Expansion
capital cost
($M)
Sustaining
capital cost
($M)
Total
cost (M$)
000 Mobile Equipment (non-mining) 3.2 1.8 5.6 10.6
200 Underground Mine 16.2 114.9 375.9 507.0
300 Water and Waste Management 2.6 88.6 9.9 101.1
400 Electrical & Communications 13.1 57.4 67.0 137.5
500 Surface Infrastructure 3.8 53.3 60.6 117.7
500 Mine Surface Infrastructure 2.1 2.5 5.7 10.4
600 Processing - Mine Site complex 1.5 189.1 - 190.6
600 Processing - QR Mill 37.6 17.1 2.4 57.0
700 Construction Indirect Costs 20.8 66.1 - 86.9
800 Owner's Costs 3.7 27.2 0.1 31.0
999 Contingency 0.5 98.1 - 98.7
  Capitalized Operating Costs 16.4 - - 16.4
  Total 121.5 716.1 527.2 1,364.8
  Site Reclamation and Closure     18.5 18.5
  Salvage Value - - -61.1 -61.1
  Total - Forecast to Spend 121.5 716.1 484.6 1,322.2



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All capital costs for the Project have been distributed against the development schedule to support the economic cash flow model. Figure 1-1 presents the planned annual and cumulative LOM capital cost profile.

Figure 1-1: Annual and cumulative Project capital costs

1.12.2.   Operating Costs

The operating cost expenditure ("OPEX") estimate is based on a combination of experience, reference projects, quotes and budgetary quotes and factors appropriate for a PEA study. The target accuracy of the operating costs is -/+30%. No cost escalation or contingency has been included within the operating cost estimate.

The operating cost estimate includes the costs to mine, transport and process the mineralized material to produce gold doré. It also includes costs for tailings management, water treatment and general and administration expenses ("G&A").

The average operating cost over the 12-year mine life is estimated to be $94.0/t mined. Total LOM and unit operating cost estimates are summarized in and are shown on a percentage basis in Table 1-5. Mining costs are presented inclusive of costs related to backfilling, including paste backfilling. Processing costs are presented inclusive of costs related to underground crushing and subsequent handling of ore during Phase II of the Project, as well as the costs related to mineral sorting for both phases of the Project.



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Table 1-5: Total operating cost breakdown

Area Cost area description LOM
($M)
Annual
average
cost ($M)
Average LOM
($/tonne
mined)
Average
LOM
($/oz)
OPEX
(%)
000 Mineralized material transport 108.5 9.0 3.9 38.2 4.1
200 Underground mining 1,499.9 125.0 53.3 528.8 56.7
300 Water and Waste Management 163.5 13.6 5.8 57.6 6.2
600 Processing - Mine Site Complex 675.8 56.3 24.0 238.2 25.5
and QR Mill
           
800 Owner's Costs (G&A) 216.0 18.0 7.7 76.2 8.2
  Capitalized Operating Costs -16.4 -1.4 -0.6 -5.8 -0.6
  Total 2,647.3 220.6 94.0 933.3 100

It is anticipated that 592 employees (staff and labour) will be required during the peak of operations during Phase II. Table 1-6 provides a summary of the employees by facility.



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Preliminary Economic Assessment for the Cariboo Gold Project

Table 1-6: Employee summary - All areas Phase II

Facility Area Role Total
General & Administration Administration & Management 13
Human resources and Community relations 3
Health and safety 10
Surface operations 11
Technical Services (mine and geology) 27
Subtotal 64
Underground Mine Staff & Supervision 32
Operations 250
Maintenance & Services 106
Subtotal 388
Processing Staff & Supervision 22
Operations and Maintenance 98
Subtotal 120
Tailings, Waste & Water management Staff & Supervision 10
Operations and Maintenance 10
Subtotal 20
Cariboo Gold Project Total 592

1.13.    Project Economics

The economic/financial assessment of the Project was carried out using a discounted cash flow approach on a pre-tax and after-tax basis, based on Q2 2022 metal price projections in US currency ("USD") and cost estimates capital expenditures ("CAPEX") and ("OPEX") in Canadian ("CAD" or "$") currency. Inflation or cost escalation factors were not taken into account. The base case gold price is USD $1,750/oz.

The economic analysis presented in this section contains forward-looking information with regard to the mineral resource estimates, commodity prices, exchange rates, proposed mine production plan, projected recovery rates, operating costs, construction costs and project schedule. The results of the economic analysis are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those presented here. The reader is cautioned that this revised PEA is preliminary in nature and includes the use of Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and, as such, there is no certainty that the revised PEA economics will be realized.



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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

The input parameters used and results of the financial analysis are presented in Table 1-7.

The pre-tax base case financial model resulted in an IRR of 26.7% and a NPV of $1,195.3M using a 5% discount rate. The pre-tax payback period after start of operations is 5.8 years.

On an after-tax basis, the base case financial model resulted in an IRR of 21.4% and a NPV of $763.8M using a 5% discount rate. The after-tax payback period after start of operations is 6.0 years.

The all-in sustaining costs ("AISC") over the LOM are USD 961.6/oz including royalties.

Table 1-7: Financial analysis summary

Description Unit Value
Total Tonnes Mined M tonne (Mt) 28.2
Average Diluted Gold Grade g/t 3.40
Total Gold Contained oz 3,079,705
Total Gold Payable oz 2,836,566
Average Annual Gold Produced Au oz per year 236,381
Total Initial Capital Cost $M 121.5
Total Expansion Capital Cost $M 716.1
Sustaining Capital $M 527.2
Site Reclamation Cost $M 18.5
Salvage Value $M 61.1


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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project


Description Unit Value
Operating Costs $/t mined 94.0
All-in Sustaining Costs (AISC) USD/oz 961.6
Total LOM NSR Revenue $M 6,286.3
LOM Royalties $M 314.3
Total LOM Operating Cash Flow $M 3,324.7
Total LOM Pre-Tax Cash Flow $M 2,002.5
Average Annual Pre-tax Cash Flow $M 166.9
LOM Taxes $M 660.8
Total LOM After-Tax Free Cash Flow $M 1,341.7
Average Annual After-Tax Free Cash Flow $M 111.8
Valuation Summary    
Pre-Tax NPV (@ 5% Discount Rate) $M 1,195.3
Pre-Tax IRR % 26.7
Pre-Tax Payback (after start of operations) year 5.8
After-Tax NPV (@ 5% Discount Rate) $M 763.8
After-Tax IRR % 21.4
After-Tax Payback (after start of operations) year 6.0

A financial sensitivity analysis was conducted on the Project's after tax NPV and IRR using the following variables: capital cost (pre-production and sustaining) operating costs, USD:CAD exchange rate, and the price of gold.

The graphical representations of the financial sensitivity analysis on NPV and IRR are depicted in Figure 1-2 and Figure 1-3. The sensitivity analysis reveals that the USD:CAD exchange rate and gold price have the most significant influence on both NPV and IRR compared to the other parameters, based on the range of values evaluated. After the USD:CAD exchange rates and gold price, NPV was most impacted by changes in operating costs and then, to a lesser extent, capital costs. It should be noted that the economic viability of the Project will not be significantly negatively impacted by variations in the capital cost, within the margins of error associated with the PEA capital cost estimate.

After the USD:CAD exchange rates and gold price, the Project's IRR was most impacted by variation in capital costs, and to a lesser extent by the operating costs.

Overall, the NPV and IRR of the Project are generally positive over most of the range of values used for the sensitivity analysis when analyzed individually.



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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

 

Figure 1-2: After-tax sensitivity analysis - Net present value (NPV)

 

Figure 1-3: After-tax sensitivity analysis - Internal rate of return (IRR)



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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

 

1.14. Project Schedule and Organization

ODV will assemble a team to manage the Project technical studies and Project construction. All Project phases including detailed engineering, procurement, pre-production and construction activities will be under the direction of the ODV Vice President of Engineering and Construction. Permitting and Project financing will be supported performed by ODV's Project Development Team and Financial teams respectively.

The preliminary on-site workforce requirement for construction, including infrastructure, concentrator, and development of the underground mine is expected to be 330 construction personnel to ramp up the Project to 8,000 tpd for 2027.

The major Project activity milestones are presented in Table 1-8.

Pending the completion of all studies and receipt of the required permits, the portal construction at Island Mountain is scheduled to begin in Q3 2023 while the concentrator and Mine Site Complex infrastructure construction is scheduled to begin in Q1 2025 with full capacity production beginning in Q1 2027.

Table 1-8: Key milestones (preliminary)

Activity Date
Complete revised PEA study Q2 2022
Collect bulk sample Q2 2022
The Project Environmental Assessment Certificate ("EAC") for 4,750 tpd application and reception of certificate Q4 2022
Start of dismantling activities as part of Care and Maintenance for Bonanza Ledge 3 Q4 2022
Start FS and Execution stage work (parallel activities) Q4 2022
Start of Major Construction at QR Mill Q1 2023
Transmission Line License of Occupation Q3 2023
Receive permits for the 4,750 tpd Project Q3 2023
Island Mountain Portal Construction & Development Q3 2023
Early Works at Mine Site Complex Q1 2024
Commissioning of QR Mill Q1 2024
Start of Transmission Line Clearing and Construction Q1 2024
Start of Major Construction at Mine Site Complex Q1 2025
CGP Phase I 2,000 tpd achieved Q4 2024
Commissioning of Mine Site Complex Q3 2026
CGP Phase II 8,000 tpd achieved (pending permit amendment) Q1 2027



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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

1.15. Interpretations and Conclusions

This PEA was prepared by BBA and other experienced consultants for ODV to demonstrate the economic viability of developing the Project resources as an underground mine, and pre- concentrating the mineralized material using a mineral sorter circuit followed by flotation and transportation from the Mine Site Complex to the QR Mill for further processing by gravity and leaching. This Report provides a summary of the results and findings from each major area of investigation. Standard industry practices, equipment and processes were used. To date, the QPs are not aware of any unusual or significant risks or uncertainties that could materially affect the reliability or confidence in the Project based on the information available.

The results of the Study indicate that the proposed Project has technical and financial merit using the base case assumptions. The QPs consider the PEA results sufficiently reliable and recommend that the Cariboo Gold Project be advanced to next stage of development through the initiation of a feasibility study.

The following conclusions are based on the QPs detailed review of all pertinent information:

 The results demonstrate the geological and grade continuities for all eight gold deposits in the Cow-Island-Barkerville Mountain Corridor.

 In a potential underground scenario, the Cariboo Gold Project contains an estimated Measured Resource of 8,000 ounces of gold, and Indicated Resource of 3,463,000 ounces, and an Inferred Resource of 1,621,000 ounces.

 The resource estimates for the Mosquito, Shaft, Valley, Cow, and Lowhee deposits were updated using the 2021 drill results. Additional diamond drilling on multiple zones would likely increase the Inferred Resources and upgrade some of the Inferred Resources to Indicated Resources.

 The selected flowsheet for processing material from the deposits includes mineral sorting, grinding, flotation and leaching. The process at the Mine Site Complex produces a pre- concentrate consisting of mineral sorting concentrate in Phase I and in Phase II mineral sorting and flotation concentrate both Phases concentrates are transported to the QR Mill for further milling and leaching. Based on the testwork results and the proposed mining plan at the time, the overall projected Au recovery is 92.1%.

 The Project mine layout demonstrates a development intensive stope access requirement and therefore has a high development meter per tonne of mineralized material ratio. These factors may pose a challenge to successful implementation of the mine plan given the restrictive geotechnical parameters and intrinsically lower productivities of the mining method. However, through diligent planning and adherence to proper work procedures, sufficient active headings and stoping areas should meet daily production requirements.



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Preliminary Economic Assessment for the Cariboo Gold Project

 The use of innovative technologies and techniques may improve productivity: Such as roadheaders, and the use of autonomous equipment.

 The environmental baseline work completed to date is sufficient to support a PEA. Further work is underway, as required, to support the Environmental Assessment process and permit applications for the Project.

 The information and assumptions used in the design of the Mine Site Complex infrastructure are sufficient to support a PEA. Further work is underway and recommended to support subsequent design phases.

 The total capital costs (initial, expansion and sustaining) for the Project were estimated at $1,365 million ("M"), the average operating costs over the 12-year mine life is estimated to be $94.0/tonne mined.

 The financial analysis performed as part of this revised PEA using the base case assumptions results in an after-tax NPV 5% of $763.8 M and an internal rate of return of 21.4% (base case exchange rate of 0.79 CAD for 1.00 USD). The cumulative cash flow for the Project (after-tax) is $1,342 M and the payback period after start of operations is 6.0 years over the planned mine life of 12 years.

The QPs considers the PEA to be reliable, thorough, based on quality data, reasonable hypotheses, and parameters compliant with NI 43-101 requirements and CIM Definition Standards.

1.15.1.   Risks and Opportunities

An analysis of the results of the investigations has identified a series of risks and opportunities associated with each of the technical aspects considered for the development of the Project.

Potential Risks

The most significant potential risks associated with the Project are:

 Transmission Line completion date delay will lead to an increase in operational cost as power costs with gensets are higher and require carbon taxes payment;

 High daily production rate from a narrow vein gold mine; potential for issues related to production capacity from each zone due to: geological continuity issues, geotechnical issues, interaction of equipment in each zone, any slowdown in mining cycle time (related to dewatering, backfill placement/curing, lead time for dewatering and materials handling);

 Greater water inflow than anticipated leading to an increase in water pumping and treatment capital cost;



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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

 

 The inability to locate an appropriate borrow source for aggregate material near the Mine Site would increase the cost and environmental impact of the Project due to transporting the material over a greater distance;

 Discovery of an unidentified contaminant that cannot be treated by the chosen mine water treatment systems (complexity of contaminants) may lead to increased water treatment costs.

Many of the previous noted risks are common to most mining projects, many of which may be mitigated, at least to some degree, with adequate engineering, planning and pro-active management.

Key Opportunities

There are a number of opportunities that could improve the economics, timing and/or permitting potential of the Project. The key opportunities that have been identified at this time are as follows:

 Additional exploration surface definition diamond drilling could identify new resource areas and upgrade Inferred resources to the Indicated category;

 Strategic placement of low grade pillars to forego backfill or increased use of unconsolidated rockfill;

 A geometallurgical system should be implemented that would gather and analyse data collected during definition drilling and mapping to collect geotechnical, rock mass, and mineralogical properties. This should allow optimization of the mine sequence and cost structure to maximize the economics of each individual stope within the life of mine;

 NPAG waste rock material, using appropriate covers and/or liners if required, could be mixed with borrow pit aggregate for the construction of some of the civil and water management infrastructure at the Mine Site Complex and Bonanza Ledge Site.

1.16. Recommendations

Based on the results of the 2022 MRE, The QPs recommend that the Project move to an advanced phase of development, which would involve the preparation of a feasibility study covering all eight deposits: Cow, Valley, Shaft, Mosquito, Bonanza Ledge, BC Vein, KL, and Lowhee.

Specifically, the QPs recommend continuing ODV's exploration program (see below for details); updating the existing PEA for new mining scenarios at lower grades using data from the geotechnical, hydrogeological and metallurgical studies; collecting the underground Cow Mountain Bulk Sample, conducting a feasibility study after collecting the bulk sample; continuing the community outreach program; and conducting a characterization study of the mining project environment in tandem with these other projects.



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Preliminary Economic Assessment for the Cariboo Gold Project

It is recommended that the drilling (infill and exploration), geological mapping, and grab sampling test the extensions of known high-grade vein corridors and identify new targets.

The recommended work program is detailed below:

A) Exploration Work

 Infill drilling in high-grade vein corridors (> 6.0 g/t Au) to potentially convert inferred resources to the indicated category;

 Exploration drilling on all zones to explore the true depth potential of high-grade vein corridors using 50 m step-outs downdip;

 Continue geological mapping and surface sampling programs to identify and define new targets;

 NI 43-101 MRE update on the Project.

 

B) Complete the bulk sample

 Underground bulk sampling program to test geological and grade continuities, metallurgical and geotechnical parameters.

C) Feasibility Study- Further advanced studies on:

 Detailed mine and process design; 

 Metallurgy;

 Infrastructure;

 Environmental management including tailings and water; 

 Economic analysis.

A cost estimate for the proposed program was proposed by the QPs to serve as a guideline for the Project. The budget is presented in Table 1-9. and amounts to a total budget of $64.8 million. The QPs believe the recommended work program and proposed expenditures are appropriate and well thought out, and that the proposed budget reasonably reflects the contemplated activities.

Additional recommendations and further details on those can be found in Chapter 26.



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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

Table 1-9: Work Program Budget

Work Program Cost Estimate ($)
Infill and exploration drilling (130,000m) 30,000 000
Surface mapping and sampling 500,000
Bulk Sample 15,000,000
Feasibility Study 8,500,000
Contingency (20%) 10,800,000
Total 64,800,000


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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

2. Introduction

This Report was prepared and compiled by BBA Engineering Ltd. ("BBA") at the request of Osisko Development Corp. ("ODV"). The purpose of this Report is to summarize the results of the Preliminary Economic Assessment ("PEA") for the Cariboo Gold Project ("the Project") in accordance with the guidelines of the Canadian Securities Administrators National Instrument 43-101 ("NI 43-101") and Form 43101F1.

BBA is an independent engineering consulting firm headquartered in Mont-Saint-Hilaire, Québec with mining groups based in Montréal, Vancouver, Toronto, and Sudbury. The Vancouver team led the overall integration of this Report. This Report was prepared under ODV's Project Manager, François Girard, and the ODV team based on contributions from several independent consulting firms including, InnovExplo Inc. ("InnovExplo"), SRK Consulting (Canada) Inc. ("SRK"), WSP Canada Inc. ("WSP", "WSP Golder"), BBA Engineering Ltd. ("BBA"), Falkirk Environmental Consultants Ltd. ("Falkirk"), and Klohn Crippen Berger Ltd. ("KCB").

2.1. Barkerville Gold Mines Division

Barkerville Gold Mines Division ("BGM") is a 100%-owned subsidiary of ODV, focused on the development of over 2,000 square kilometres ("km2") of mineral tenures in the Cariboo Mining District in British Columbia, Canada. The land holdings consist of a 67 kilometre ("km") long and 25 km wide belt that contains historically producing mines, including Mosquito Creek Mine, Aurum Mine, and Cariboo Gold Quartz Mine. The current resource development is focused on the Island Mountain, Cow Mountain, and Barkerville Mountain corridor (collectively, the "Cow-Island- Barkerville Mountain Corridor"), where gold had been extracted from both pyrite replacement and quartz vein ores.

2.2. Basis of Technical Report

The following Report presents the results of the PEA for the development of the Project. As of the date of this Report, Osisko Development Corp. ("ODV") is a North American mine development company with a focus towards becoming a mid-tier gold miner with opportunities for immediate production. ODV is listed on the TSX Venture Exchange ("TSXV") under the symbol "ODV" with its head office situated at:

1100, av des Canadiens-de-Montréal
Suite 300, P.O. Box 211

Montréal, QC H3B 2S2



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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

 

This Report, titled, "NI 43-101 Technical Report Preliminary Economic Assessment for the Cariboo Gold Project (BBA, May 24, 2022)", was prepared following the guidelines of the NI 43-101 and in conformity with the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Reserves ("CIM Definition Standards").

2.3. Report Responsibility and Qualified Persons

The following individuals, by virtue of their education, experience, and professional association, are considered Qualified Persons ("QPs") as defined in the NI 43-101 and are members in good standing of appropriate professional institutions.

 Colin Hardie, P.Eng.

BBA Engineering Ltd.

 Mathieu Belisle, P.Eng.

BBA Engineering Ltd.

 Carl Pelletier, P.Geo

InnovExplo Inc.

 Vincent Nadeau-Benoit, P.Geo

InnovExplo Inc.

 Éric Lecomte, P.Eng.

InnovExplo Inc.

 Tim Coleman, P.Eng.

SRK Consulting (Canada) Inc.

 Paul Gauthier, P.Eng.

WSP Golder

 Aytaç Göksu, P.Eng.

WSP Golder

 Tom Rutkowski, P.Eng.

WSP Golder

 John Cunning, P.Eng.

WSP Golder

 Kristin Salzsauler, P.Geo.

WSP Golder

 Éric Poirier, P.Eng., PMP

WSP Canada Inc.

 David Willms, P.Eng.

Klohn Crippen Berger Ltd.

 Michelle Liew, P.Eng.

Klohn Crippen Berger Ltd.

 Katherine Mueller, P. Eng.

Falkirk Environmental Consultants Ltd.

The preceding QPs have contributed to the writing of this Report and have provided QP certificates, included at the beginning of this Report. Table 2-1 outlines the responsibilities for the various sections of the Report and the name of the corresponding Qualified Person.



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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

Table 2-1: Qualified Persons and areas of report responsibility

Chapter Description Qualified Person Company Comments and exceptions
1. Executive Summary C. Hardie BBA All QPs contributed based on their respective scope of work and the Chapters/Sections under their responsibility.
2. Introduction C. Hardie BBA All QPs contributed based on their respective scope of work and the Chapters/Sections under their responsibility.
3. Reliance on other Experts C. Hardie BBA All QPs contributed based on their respective scope of work and the Chapters/Sections under their responsibility.
4. Project Property Description
and Location
V. Nadeau-Benoit
C. Pelletier
InnovExplo Sections 4.1-4.5.
K. Mueller Falkirk Section 4.6.
5. Accessibility, Climate, Local
Resource, Infrastructure and
Physiography
V. Nadeau-Benoit
C. Pelletier
InnovExplo All Chapter 5; Updated from 2020 InnovExplo MRE update.
6. History V. Nadeau-Benoit
C. Pelletier
InnovExplo All Chapter 6; Updated from 2020 InnovExplo MRE update.
7. Geological Setting and
Mineralization
V. Nadeau-Benoit
C. Pelletier
InnovExplo All Chapter 7.
8. Deposit Types V. Nadeau-Benoit
C. Pelletier
InnovExplo All Chapter 8.
9. Exploration V. Nadeau-Benoit
C. Pelletier
InnovExplo All Chapter 9.
10. Drilling V. Nadeau-Benoit
C. Pelletier
InnovExplo All Chapter 10.
11. Sample Preparation, Analyses and Security V. Nadeau-Benoit C. Pelletier InnovExplo All Chapter 11.
12. Data Verification V. Nadeau-Benoit
C. Pelletier
InnovExplo All Chapter 12.
13. Mineral Processing and Metallurgical Testing M. Belisle BBA All Chapter 13.
14. Mineral Resource Estimate V. Nadeau-Benoit
C. Pelletier
InnovExplo All Chapter 14, except for Chapter 14.12.
E. Lecomte InnovExplo Chapter 14.12.
15. Mineral Reserve Estimate E. Lecomte InnovExplo All Chapter 15.
16. Mining Methods E. Lecomte InnovExplo Section 16.1, 16.5, 16.6, 16.8, 16.9, 16.10, 16.11.
A. Göksu WSP Golder Section 16.4.
T. Coleman SRK Sections 16.2.
P. Gauthier WSP Golder Sections 16.3, 16.7.



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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project


Chapter Description Qualified Person Company Comments and exceptions
17. Recovery Methods M. Belisle BBA All Chapter 17.
18. Project Infrastructure E. Poirier WSP 18.2.1.2, 18.2.2 to 18.2.6, 18.2.8, 18.2.13 & 18.2.14.3
T. Rutkowski WSP USA
Inc. (WSP
Golder)
Sections 18.2.11, 18.3.5 and 18.4.6
J. Cunning WSP Golder Sections 18.2.12, 18.2.13, and 18.3.2
A. Göksu WSP Golder Sections 18.2.9, 18.2.10, 18.3.3 and 18.3.4
D. Willms KCB Sections 18.4.3, 18.4.4 and 18.4.5
C. Hardie BBA Sections 18.1, 18.2.14, 18.4.7
M. Belisle BBA Sections 18.3.1, 18.4.2
19. Market Studies and Contracts C. Hardie BBA All Chapter 19
20. Environmental Studies,
Permitting, and Social or
Community Impact
K. Mueller Falkirk All Chapter 20, except 20.3.1 to 20.3.7
M. Liew KCB Co-Author of 20.3.5; Sections 20.3.6.2 and 20.3.6.3
A. Göksu WSP Golder Section 20.3.6.1
K. Salzsauler WSP Golder Co-Author of 20.3.5; Sections 20.3.1 to 20.3.4, and 20.5
T. Rutkowski WSP USA
Inc. (WSP
Golder)
Section 20.3.7
21. Capital and Operating Costs C. Hardie BBA All QPs listed here contributed based on their respective scope of work and the Chapters/Sections under their responsibility.
E. Poirier WSP
P. Gauthier WSP Golder
M. Belisle BBA
E. Lecomte InnovExplo
T. Rutkowski WSP USA
Inc. (WSP
Golder)
J. Cunning WSP Golder
A. Göksu WSP Golder
K. Salzsauler WSP Golder
D. Willms KCB
K. Mueller Falkirk
M. Liew KCB
22. Economic Analysis C. Hardie BBA All Chapter 22
23. Adjacent Properties V. Nadeau-Benoit
C. Pelletier
InnovExplo All Chapter 23


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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

 

Chapter Description Qualified Person Company Comments and exceptions
24. Other Relevant Data and Information C. Hardie BBA All Chapter 24
25. Interpretation and Conclusions C. Hardie BBA All QPs contributed based on their respective scope of work and the Chapters/Sections under their responsibility.
26. Recommendations C. Hardie BBA All QPs contributed based on their respective scope of work and the Chapters/Sections under their responsibility.
27. References C. Hardie BBA All QPs contributed based on their respective scope of work and the Chapters/Sections under their responsibility.

2.4. Effective Dates and Declaration

The overall effective date of the Report is May 24, 2022.

The Report has several effective dates for information:

 Effective date of the Cariboo Gold Project Mineral Resource Estimate used as the basis for the life of mine ("LOM") Plan: May 17, 2022;

 Date of last supply of laboratory testwork and investigations: April 25, 2022

 Date of the financial analysis: May 24, 2022.

This Report was prepared as a National Instrument 43-101 Standards of Disclosure for Mineral Projects Technical Report for ODV by QPs, collectively the "Report Authors". The quality of information, conclusions, and estimates contained herein is consistent with the level of effort involved in the Report Authors' services, based on: i) information available at the time of preparation, ii) data supplied by outside sources; and iii) the assumptions, conditions, and qualifications set forth in this Report. This Report is intended for use by ODV subject to the terms and conditions of its respective contracts with the Report Authors, and relevant securities legislation.

This Report is intended for use by ODV subject to the terms and conditions of its contract with the report authors and relevant securities legislation.

The contract allows ODV to file this Report as a Technical Report with Canadian Securities Regulatory Authorities pursuant to National Instrument 43-101. Except for the purposes legislated under provincial securities law, any other uses of this Report by any third party is at that party's sole risk. The responsibility for this disclosure remains with ODV. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new Technical Report has been issued.



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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

2.5. Sources of Information

2.5.1.   General

This Report is preliminary in nature, and is based in part on internal company reports, maps, published government reports, company letters and memoranda, and public information, as listed in Chapter 27 "References" of this Report.

The Report is based on numerous assumptions and Inferred Mineral Resources. Inferred Mineral Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves except as allowed for by Canadian Securities Administrators' National Instrument 43-101 in PEA studies. No mineral reserves have been estimated. There is no guarantee that Inferred resources can be converted to Indicated or Measured resources and, as such, there is no guarantee that the Project economics described herein will be achieved.

Sections from reports authored by other consultants may have been directly quoted or summarized in this Report and are so indicated, where appropriate.

This PEA has been completed using available information contained in, but not limited to, the following reports, documents and discussions:

 Technical discussions with ODV personnel; 

 QPs' personal inspection of the Project site(s);

 Report of mineralogical, metallurgical and grindability characteristics of the Island Mountain, Cow Mountain, and Barkerville Mountain deposits, and Bonanza Ledge Site conducted by industry recognized metallurgical testing laboratories on behalf of ODV;

 The Project resource block model and estimate provided by InnovExplo are effective as of May 17, 2022;

 Internal and commercially available databases and cost models;

 Various reports covering site hydrology, hydrogeology, geotechnical, and geochemistry;

 Various reports covering site physical and biological environment;

 Internal unpublished reports received from ODV; 

 Additional information from public domain sources.

 

The QPs have no known reason to believe that any of the information used to prepare this Report and evaluate the mineral resources presented herein is invalid or contains misrepresentations.

The authors have sourced the information for this Report from the collection of documents listed in Chapter 27 (References).



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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

2.5.2.   BBA Engineering Ltd.

The following entities or individuals provided specialist input to Mathieu Belisle, QP:

 Helin Girgin (BBA) provided data analysis and interpretation of the metallurgical testwork (Chapter 13) as well as inputs for the development of the process plant operating cost estimate in Chapter 21 (Capital and Operating Costs).

The following entities or individuals provided specialist input to Colin Hardie, QP:

 Gilles Léonard (BBA) and Yves Bouchard (BBA) provided the design and cost estimates for the mine site communications infrastructure;

 Yves Robitaille (BBA) provided the design and cost estimates for the Mine Site Complex electrical substation, power line and electrical power distribution;

 ODV and its external advisors have provided an estimate for the owner's costs and contingencies used in the development of the Project's baseline capital cost estimate found in Chapter 21 (Capital and Operating Costs);

 ODV provided an estimate for the General & Administration costs of the Project's operating cost estimate found in Chapter 21 (Capital and Operating Costs);

 Claude Catudal (BBA) and Jocelyn Marcoux (BBA) provided inputs for the industrial standards and norms for the various material, manpower and construction costs used in the development of the process plant capital costs (Chapter 21);

 Claude Catudal (BBA) provided input to the Project execution strategy and schedule as summarized in Chapter 24 (Other Relevant Data and Information);

These specialists are not considered as QPs for the purposes of this NI 43-101 Report.

2.5.3.   InnovExplo Inc.

The following individuals provided specialist input to Éric Lecomte, QP:

 Sébastien Tanguay (InnovExplo), and Jean-Olivier Brassard (InnovExplo) provided designed underground workings, and scheduled mine plan;

 Yolaine Lavoie (Meglab) provided underground electrical and communication design, cost estimates for related materiel and electrical charge. She also provided electrical and communication sections of Chapter 16;

 Pierre Marquis (Technosub) provided underground dewatering design, cost estimates for related materials and provided the dewatering sections of Chapter 16;

 Robert Hamilton (InnovExplo) provided the mobile equipment rebuild schedule and related personnel and material cost estimates for major maintenance of mobile fleet. He also contributed purchasing schedule and yearly operating hours;



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Preliminary Economic Assessment for the Cariboo Gold Project

 Hugo Della Sbarba (Howden) provided ventilation design, underground heating demand, cost estimates, and hardware requirements. He also provided ventilation sections of Chapter 16.

These specialists are not considered as QPs for the purposes of this NI 43-101 Report.

2.5.4.   SRK Consulting (Canada) Inc.

The following individual provided specialist input to Tim Coleman, QP:

 Olga Gibbons and Adrienne Joaquim (SRK) provided design inputs into the geotechnical assessments found in Chapter 16 (Mining Methods).

These specialists are not considered as QPs for the purposes of this NI 43-101 Report.

2.5.5.   WSP Golder

The following individuals provided specialist input to Paul Gauthier, QP, Aytaç Göksu, QP, Tom Rutkowski, QP, John Cunning, QP, and Kristin Salzsauler, QP:

 Isaac Ahmed (WSP Golder) provided the design estimation for underground paste backfill design;

 Jeffery Gaudette (WSP Golder) provided underground mineral handling design and cost estimation;

 Darlene Nelson (WSP) provided the design and cost estimate for the Valley and Island Mountain portal;

 Lisa May (WSP Golder) on reclamation and mine closure;

 Fernando Ascencio, on waste rock storage facilities;

 Darryl Howard,Joanna Stec, Marcus Yu and Jeff Macsween (WSP Golder) on water treatment;

 Izak Green and Sailesh Singh (WSP Golder) for mine water pipeline design;

 Donald Kidd and Cameron Ofsoske(WSP Golder), on diffuser into Jack of Club Lake; Alison Snow (WSP Golder) on site water quality modelling;

 Philippe Benoît (WSP Golder) on water management strategy and water management infrastructure at Wells Mine Site Complex and Bonanza Ledge Site;

 Nick Gorski (WSP Golder) on hydrogeology at the Mine Site Complex and Bonanza Ledge Site.

 Jennifer Levenick (WSP Golder) on groundwater inflows modelling predictions.

These specialists are not considered as QPs for the purposes of this NI 43-101 Report.



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2.5.6.   WSP Canada Inc.

The following individuals provided specialist input to Éric Poirier (WSP), QP:

 Ian Hunsche (WSP) and Trent Purvis (WSP) provided design for roads and infrastructure civil design;

 Joske Whiteside (WSP) provided design and cost estimation for piping works related to infrastructure connections;

 Donald Kaluza (WSP) provided guidance on geotechnical requirements for roads, portals, pads, and buildings installations;

 Suchit Kaila (WSP) provided design for the fire protection system;

 Kirollos Shenouda (WSP) provided design for electrical distribution of the surface infrastructure and site lighting;

 Calvin Goldschmidt (JDS) and Thomas Gobeil (JDS) provided design and construction unit costs for earthworks, roads and infrastructure.

These specialists are not considered as QPs for the purposes of this NI 43-101 Report.

2.5.7.   Klohn Crippen Berger Ltd.

The following individuals provided specialist input for the QR Mill to David Willms, QP, and Michelle Liew, QP:

 Drew Hegadoren (KCB), Maxwell Cronk (KCB), and Trisha Yang (KCB) on geotechnical design, construction staging planning and material takeoff for the proposed Filtered Stack Tailings Storage Facility;

 Adrian Moreau (KCB), Jiajia Zheng (KCB), and Alex Fitzpatrick (KCB) on surface water management and water quality predictions.

These specialists are not considered as QPs for the purposes of this NI 43-101 Report.

2.5.8.   Falkirk Environmental Consultants Ltd.

The following individuals provided specialist input to Katherine Mueller, QP:

 Kristin Salzsauler (WSP Golder) and Philippe Benoit (WSP Golder) provided guidance, review and edits on geochemical and surface water management;

 Michelle Liew (KCB) provided guidance, review and edits on TSF design;

 Claudia Castro and Jennifer Gebert (Falkirk) on permitting, approvals, and social considerations.

These specialists are not considered as QPs for the purposes of this NI 43-101 Report.



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2.6. Site Visits

The following bulleted list describes which Qualified Persons visited the site(s) (Mine Site Complex in Wells, Quesnel River Mill [QR Mill], and Bonanza Ledge Site), the date of the visit, and the general objective of the visit:

 Carl Pelletier (InnovExplo) conducted a site visit from February 1 to 4, 2016, and from May 3 to 12, 2016. The first visit included the Bonanza Ledge pit, the Cow Mountain area and the Island Mountain area. The second involved a visit to the core logging facilities and several drill hole collars. While on site, he also reviewed selected core intervals from the Barkerville Mountain and Cow Mountain deposits, performed an independent resampling program of said core and verified the Project databases;

 Vincent Nadeau-Benoit (InnovExplo) conducted a site visit from November 1 to 5, 2021. The visit included a tour and review of the core logging facilities, drill pads and mineralized outcrops as well as a review of drill hole cores from the 2020 and 2021 drilling programs;

 Tim Coleman (SRK) visited the proposed Mine site in Wells and the Bonanza Ledge Site on February 25, 2022, to conduct a review of the Project site, geotechnical review of drill cores, and observe ground conditions and excavation behaviour at the Bonanza Ledge Site;

 Éric Lecomte (InnovExplo) visited the proposed Mine Site Complex in Wells and the Bonanza Ledge Site, on February 25, 2022, to conduct a review of the Project site and observe ground conditions and excavation behaviour at the Bonanza Ledge Site;

 Mathieu Bélisle (BBA) visited the QR Mill on July 8 to 11, 2019 to conduct a review of the actual installation;

 Éric Poirier (WSP) visited the QR Mill on July 8 to 11, 2019, to conduct a review of the actual installation;

 John Cunning (WSP Golder) visited the site between August 17 and 18, 2021, to carry out a personal inspection of the proposed waste rock storage areas at Wells Mine site and Bonanza Ledge Site;

 Kristin Salzsauder (WSP Golder) visited the site between September 27 and 28, 2021, to conduct a personal review of the Project site, including a review of the visible geologic and geochemical characteristics of active and former mining areas at the Wells Mine Site, Bonanza Ledge Site and QR Mill;

 Katherine Mueller (Falkirk) visited the site between July 28 and July 29, 2021, to discuss all of the environmental management, compliance, and water management activities on site as it related to the current and future permitting requirements for the Project;

 David Willms and Michelle Liew (KCB) visited the QR Mill on July 26 to 28, 2021, to conduct dam safety inspection of the Tailings Storage Facility and Main Zone Pit.



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As of the effective date of this report, the following QPs have not visited the Project site(s):

 Colin Hardie (BBA);

 Paul Gauthier (WSP Golder);

 Tom Rutkowski (WSP Golder);

 Aytaç Göksu (WSP Golder).

2.7. Currency, Units of Measure and Calculations

Unless otherwise specified or noted, the units used in this Report are metric. Every effort has been made to clearly display the appropriate units being used throughout this Report:

 Currency is in Canadian dollars ("CAD" or "$");

 All ounce units are reported in troy ounces, unless otherwise stated:

1 oz (troy) = 31.1 g = 1.1 oz (Imperial);

 All metal prices are expressed in US dollars ("USD" or "US$");

 A Canadian dollar ("CAD" or "$") to United States dollar (USD) exchange rate of 0.79 USD for 1.00 CAD was used;

 All cost estimates have a base date of the second quarter ("Q2") of 2022.

This Report includes technical information that required subsequent calculations to derive subtotals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, the QPs consider them immaterial.

2.8. Acknowledgement

BBA and the other study contributors would like to acknowledge the general support provided by the following personnel during this assignment:

The Project benefitted from the specific input of François Vézina, François Girard, Victor Gauthier, Alexandre Burelle, Christian Laroche, Christopher Waite, Sylvie St-Jean, Daniel Mathieu, Walter Dorn, John-Paul McGrath, Martin Ménard, Maggie Layman, Ryan Friesen, Kevin Pinkerton, Luc Lessard, Kelsey Dodd, Hayley Archer, Julia Gartley, Amanda Fitch and Manon Dussault. Their contributions are greatly appreciated.



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3. Reliance on Other Experts

The Qualified Persons ("QPs") have relied upon reports, information sources and opinions provided by outside experts related to the Cariboo Gold Project's ("the Project") mineral rights, surface rights, property agreements, royalties, and fiscal situation.

As of the date of this Preliminary Economic Assessment for the Cariboo Gold Project ("Report"), Osisko Development Corp. ("ODV") indicates that there are no known litigations potentially affecting the Project.

A draft copy of the Report has been reviewed for factual errors by ODV. Any changes made as a result of these reviews did not involve any alteration to the conclusions made. Hence, the statements and opinions expressed in this document are given in good faith and in the belief that such statements and opinions are neither false nor misleading at the date of this Report.

3.1. Mineral Tenure and Surface Rights

ODV supplied information about mining titles, option agreements, environmental liabilities, permits and First Nations negotiations. Carl Pelletier, QP, and Vincent Nadeau-Benoit, QP, of InnovExplo consulted British Columbia's internet-based electronic mineral titles administration system (Mineral Titles Online) (https://www.mtonline.gov.bc.ca/mtov/home.do) for the latest status regarding ownership and mining titles. Although the QPs have reviewed the option agreements and available claim status documents, they are not qualified to express any legal opinion with respect to the property titles, current ownership, or possible litigation. A description of such agreements, the property, and ownership thereof, is provided for general information purposes only. In this regard, the QPs have relied on information supplied by ODV and the work of experts they understand to be appropriately qualified.

This information is used in Chapter 4 of the Report. The information is also used in support of the Mineral Resource Estimate in Chapter 14.

3.2. Taxation and Royalties

Colin Hardie, QP, from BBA has relied upon ODV for guidance on applicable taxes, royalty agreements, and other government levies or interests, applicable to potential revenue or income from the Project. This information is used in Chapter 19 (Market Studies and Contracts) and Chapter 22 (Economic Analysis) of the Report.



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4. Property Description and Location

4.1. Location

The Cariboo Gold Project ("the Project") is located in the historic Wells-Barkerville mining camp of British Columbia and extends for approximately 60 km from northwest to southeast.

The Project falls within the Cariboo Regional District ("CRD"), a division of the local government system in British Columbia ("BC"). The main towns in the Project area are the District of Wells ("Wells") and Barkerville Historic Town & Park. Wells is situated 74 kilometres ("km") east of Quesnel, approximately 115 km southeast of Prince George, and approximately 500 km north of Vancouver (Figure 4-1).

The coordinates of the centre of the Project are 121°34'46"W and 53°06'07"N (UTM coordinates: 595102E and 5884577N, NAD 83, Zone 10). The Project lies on National Topographic System ("NTS") maps sheets 93A/12/13/14, 93G/08, and 93H/03/04/05.

4.2. Mineral Title Status

Osisko Development Corp. ("ODV") supplied all mineral title maps and tables. ODV's Barkerville Gold Mines Division Free Miner Certificate number is 110263668 and their Mineral Title Branch Client ID is 104256. InnovExplo verified the status of all mineral titles using Mineral Titles Online ("MTO"), British Columbia's internet-based electronic mineral titles administration system (MTO, 2022).

ODV's land holdings consist of 412 mineral titles totalling 155,147.09 hectares ("ha") across two contiguous property blocks known as the Cariboo Main Block and the QR Property. The reader is reminded that the land holdings are registered in the names of Barkerville Gold Mines Ltd. ("BGM") and will be referred to as such in the following sections. These mineral titles include mineral claims, mineral leases, placer claims and placer leases. Whereas BGM is a wholly owned subsidiary of ODV, these titles grant ODV the rights to explore for metal mineralized material in bedrock or talus rock, including rock and other materials from mine tailings, dumps, and previously mined deposits of minerals, as set out in the Mineral Tenure Act. The breakdown according to type of mineral title is as follows:

Cariboo Main Block: 376 mineral titles (142,342.63 ha):

 320 mineral claims totalling 135,402.04 ha (Figure 4-2);

 43 placer claims totalling 4,544.84 ha (Figure 4-3); and

 13 placer leases totalling 2,395.74 ha (Figure 4-3).



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QR Property: 36 mineral titles (12,804.46 ha):

 35 mineral claims totalling 9,640.06 ha (Figure 4-2); and

 1 mineral lease (QR Mineral Lease #320752) totalling 3,164.40 ha (Figure 4-2).

BGM holds 100% interest in 56 Cariboo Main Block placer titles, 35 QR Property mineral claims and the QR mineral lease # 320752. BGM holds 100% interest in 359 of the 376 Cariboo Main Block mineral and placer claims and placer leases. There are 17 mineral claims jointly owned with other companies and individuals: BGM holds a 97.5% interest in six mineral claims, an 85% interest in two mineral claims, and a 50% interest in the other nine mineral claims.

A map showing mineral title distribution and ownership is presented in Figure 4-2.

The Project also contains 248 private land parcels from Crown-granted mineral claims (3,423.03 ha) that overlap many of the mineral titles, where BGM is the registered owner on title of the surface and/or undersurface rights to the parcels. (Figure 4-4:).

All placer claims and leases, and 303 out of 320 mineral claims within the Cariboo Main Block, are registered in the name of BGM. The remaining 17 mineral claims are registered jointly with various other companies and individuals. All mineral titles held entirely or partially by BGM are in good standing according to the MTO database.

There are no known significant factors or risks that may affect access, title, or the right or ability to perform work on the Project.

The Project is subject to various royalties, agreements, and encumbrances, as discussed below. A detailed list of mineral titles, ownership, royalties, and expiration dates is provided in Appendices 1, 2 and 3.



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Figure 4-1: Location of the Cariboo Gold Project



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Figure 4-2: Mineral title and ownership map for the Cariboo Gold Project



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Figure 4-3: Map of placer claims and placer leases on the Cariboo Gold Project



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Preliminary Economic Assessment for the Cariboo Gold Project

 

Figure 4-4: Map of Crown-granted mineral claims on the Cariboo Gold Project



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Preliminary Economic Assessment for the Cariboo Gold Project

4.3. Acquisition of the Cariboo Gold Project

BGM began acquiring land in Wells, B.C. and surrounding areas in the Cariboo Regional District in 1994. Under an option agreement dated October 4, 1994 (the "Cariboo Option Agreement"), BGM was granted an option to acquire a 50% interest in the Cariboo Gold Quartz Property in the Cariboo Gold District. In 2009, BGM completed the consolidation of the land package by acquiring contiguous projects belonging to Island Mountain Gold Mines Ltd. ("IGM") and Golden Cariboo Resources Ltd. ("Golden Cariboo"), both related parties to BGM and listed on the TSX Venture Exchange.

On May 12, 1999, BGM optioned to IGM a 50% interest in the Island Mountain/Aurum Gold Mine and the properties belonging to Mosquito Creek Gold Mining Company Limited. That option was then renegotiated in October 2004. In January 2006, BGM agreed to buy back the 50% interest in the optioned lands and purchase all of IGM's land holdings northwest of the District of Wells, B.C. This was approved by the TSX Venture Exchange on May 2, 2006.

To finalize the consolidation of the major land holdings in the Cariboo Gold District, BGM acquired all of the lands controlled by Golden Cariboo that lay along strike of the known mineralized trend for some 25 km from Barkerville Historic Town & Park, southeast of the Cariboo Hudson Mine. The acquisition of Golden Cariboo's mineral tenure holdings was approved by the TSX Venture Exchange on April 9, 2009, resulting in BGM's land tenure extending 60 km and encompassing the majority of the known strike length of the Barkerville Gold Belt.

Since 1994, BGM has acquired many mineral titles by staking and through agreements with other owners of titles within the Cariboo Gold District. Several claim groups are subject to net smelter return ("NSR") royalties (see Appendices 1, 2 and 3 for details).

Surface and undersurface rights to Crown Granted surveyed land parcels within the Project have also been acquired by the Company as per Table 4-1.

4.4. Agreement and Royalties with Osisko Gold Royalties Ltd.

On November 30, 2015, BGM entered into a letter agreement with Osisko Gold Royalties Ltd. ("OGR") whereby OGR agreed to purchase 32 million common shares of BGM (the "Private Placement") and a 1.5% NSR royalty on the Project (the "Royalty Financing"). Pursuant to the Private Placement, OGR agreed to acquire 32 million flow-through common shares of BGM at a price of $0.32 per share, for total proceeds to BGM of $10,240,000. Following the Private Placement, OGR expected to have ownership over 47,625,000 common shares of BGM, representing approximately 19.9% of the issued and outstanding BGM shares.



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OGR also agreed to acquire a 1.5% NSR royalty on the Project for a cash consideration of $25 million. As part of the Royalty Financing, OGR and BGM also agreed to negotiate a gold stream agreement ("GSA") following the completion by BGM of a feasibility study on the Project. According to the terms, following a 60-day negotiation period, if OGR and BGM had not entered into a Gold Stream Agreement, BGM would either grant a right to OGR to purchase an additional 0.75% NSR royalty for consideration of $12.5 million or make a payment of $12.5 million to OGR.

On March 27, 2017, BGM announced it had entered into a letter agreement with OGR whereby OGR agreed to purchase an additional 0.75% NSR royalty on the Project for a cash consideration of $12,500,000 (paid). At the time, OGR owned a total NSR royalty of 2.25% on all mineral current rights held by BGM. The grant of the additional royalty would cancel OGR's royalty right, which was granted pursuant to the investment agreement between OGR and BGM dated February 5, 2016; however, OGR would retain a right of first refusal relating to any gold stream offer received by BGM with respect to the Project.

On September 05, 2018, BGM entered into the Second Amended and Restated Royalty Purchase Agreement whereby OGR purchased an additional 1.75% NSR royalty on the Project for a cash consideration of $20,000,000 (paid), with an option for OGR to purchase an additional 1.0% NSR royalty for $13,000,000 to bring the Cariboo NSR to 5.0%.

On September 23, 2019, BGM and OGR entered into a definitive agreement, pursuant to which OGR acquired all of the issued and outstanding common shares of BGM that it did not already own by way of a plan of arrangement (the "Arrangement"). Under the terms of the Arrangement, each shareholder of BGM (excluding OGR) received 0.0357 (the "Exchange Ratio") of a common share of OGR for each share of BGM held. The Exchange Ratio implied a consideration of $0.58 per BGM share, based on the closing price of OGR shares on the Toronto Stock Exchange ("TSX ") on September 20, 2019. The Exchange Ratio implied an equity value of approximately $338 million on a fully diluted in-the-money basis, inclusive of BGM shares held by OGR.

On November 21, 2019, the Arrangement became effective at 12:01 a.m. ("PST") and resulted in BGM becoming a wholly-owned subsidiary of OGR.

On October 5, 2020, OGR announced a spin out of mining assets and the creation of Osisko Development Corp. ("ODV") and exercised the 1.0% NSR purchase option on the Project, bringing the total royalty held by OGR on the Project to 5.0%. The Project is now operated by ODV (formerly Barolo Ventures Corp.), with BGM now a wholly-owned subsidiary of ODV. BGM no longer trades publicly on the TSX or any other stock exchange, pursuant to the earlier definitive agreement dated September 23, 2019, and the Arrangement whereby all the issued and outstanding shares of BGM were acquired by OGR. ODV trades publicly under the symbol ODV on the TSX.

OGR's 5.0% NSR royalty is the only royalty that applies to the mineral resource area of the Project.



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4.5. Surface Rights Option Agreements

Table 4-1 lists properties where BGM owns the surface rights as well as the underlying option agreements under which the properties were acquired.



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Table 4-1: BGM surface rights option agreements

PID CG # DISTRICT LOT FEE SIMPLE OWNER TITLE # AGREEMENT NAME VENDEE VENDOR
008-218-803 5313/624 (U),
5763/628 (S)
10518 BARKERVILLE GOLD MINES LTD. CA3393918 Island Mountain & Mosquito Creek Properties
(MCG - IWG)
International Wayside Gold Mines Ltd. Mosquito Consolidated Gold Mines
008-801-908 35/36 (B),
2672/597 (U)
93 BARKERVILLE GOLD MINES LTD. CA3322180 Wells - Barkerville Cariboo Claims Mosquito Creek Gold Mining Company Ltd. Wharf Resources Ltd. / Peregrine
Petroleum Ltd.
004-056-582 41F/34 41F BARKERVILLE GOLD MINES LTD. BB1960681 Myrtle-Proserpine Property (Newmont - GC) Gold City Mining Corp. Newmont Exploration Inc.
004-056-710 1F/34 1F BARKERVILLE GOLD MINES LTD. CA6623323 Williams Creek Crown Grants Barkerville Gold Mines Ltd. Williams Creek Gold
004-056-736 1B/35 1B BARKERVILLE GOLD MINES LTD. CA6623292 Derrien Road Access Agreement Charls Derrien Barkerville Gold Mines Ltd.
004-056-752 32F/34 32F BARKERVILLE GOLD MINES LTD. CA4347922 Williams Creek Crown Grants Barkerville Gold Mines Ltd. Williams Creek Gold
004-056-787 4B/35 4B BARKERVILLE GOLD MINES LTD. CA4347919 Derrien Road Access Agreement Charls Derrien Barkerville Gold Mines Ltd.
004-078-543 2F/34 2F BARKERVILLE GOLD MINES LTD. CA3322186 Blackbull & Camusa Crown Grants International Wayside Gold Mines Ltd. Grand Lowhee Mining Co. Ltd.
004-078-560 42F/34 42F BARKERVILLE GOLD MINES LTD. CA332187 Blackbull & Camusa Crown Grants International Wayside Gold Mines Ltd. Grand Lowhee Mining Co. Ltd.
004-078-578 17F/34 17F BARKERVILLE GOLD MINES LTD. &
GOLDEN CARIBOO RESOURCES LTD.
CA3322185 Xmas Crown Grants International Wayside Gold Mines Ltd. and
Golden Cariboo Resources Ltd.
P. Wright Contracting Ltd.
004-078-608 35F/34 35F BARKERVILLE GOLD MINES LTD. CA5682814 35F St George Crown Grant Barkerville Gold Mines Ltd. Prairie Flower Company Inc.
004-078-632 5F/34 5F BARKERVILLE GOLD MINES LTD. FB503371 Derrien Road Access Agreement Charls Derrien Barkerville Gold Mines Ltd.
004-086-627 2B/35 2B BARKERVILLE GOLD MINES LTD. CA3393199 Wells - Barkerville Cariboo Claims Mosquito Creek Gold Mining Company Ltd. Wharf Resources Ltd. / Peregrine
Petroleum Ltd.
004-086-872 20F/34 20F BARKERVILLE GOLD MINES LTD. PT5233, PC16246 Island Mountain & Mosquito Creek Properties (MCG - IWG) International Wayside Gold Mines Ltd. Mosquito Consolidated Gold Mines
004-086-902 30F/34 30F BARKERVILLE GOLD MINES LTD. PT5234, PC16247 Island Mountain & Mosquito Creek Properties
(MCG - IWG)
International Wayside Gold Mines Ltd. Mosquito Consolidated Gold Mines
004-087-054 39F/34 39F BARKERVILLE GOLD MINES LTD. PT5232, PC16245 Island Mountain & Mosquito Creek Properties
(MCG - IWG)
International Wayside Gold Mines Ltd. Mosquito Consolidated Gold Mines
004-087-097 38F/34 38F BARKERVILLE GOLD MINES LTD. PT5235, PC16248 Island Mountain & Mosquito Creek Properties
(IWG - IMG)
Island Mountain Gold Mines Ltd. International Wayside Gold Mines
Ltd.
014-385-643 5436/625 7795 BARKERVILLE GOLD MINES LTD. CA3322188 P Wright Mosquito Crown Grants International Wayside Gold Mines Ltd. P. Wright Contracting Ltd.
014-385-686 5439/625 7798 BARKERVILLE GOLD MINES LTD. CA3322189 Wells - Barkerville Cariboo Claims Mosquito Creek Gold Mining Company Ltd. Wharf Resources Ltd. / Peregrine
Petroleum Ltd.
014-385-741 535/92 318 BARKERVILLE GOLD MINES LTD. CA3322182 Wells - Barkerville Cariboo Claims Mosquito Creek Gold Mining Company Ltd. Wharf Resources Ltd. / Peregrine
Petroleum Ltd.
014-385-759 4614/617 (S),
35/36 (B)
92 BARKERVILLE GOLD MINES LTD. CA3322179 Cariboo Gold Quartz Property International Wayside Gold Mines Ltd. Mosquito Consolidated Gold Mines
Ltd.
014-982-013 35/36 94 BARKERVILLE GOLD MINES LTD. CA3322181 Cariboo Gold Quartz Property International Wayside Gold Mines Ltd. Mosquito Consolidated Gold Mines
Ltd.
015-289-681 385/674 10467 BARKERVILLE GOLD MINES LTD. CA4347921 Williams Creek Crown Grants Barkerville Gold Mines Ltd. Williams Creek Gold
014-385-732 2517/101 391 BARKERVILLE GOLD MINES LTD. CA3322183 P Wright Mosquito Crown Grants International Wayside Gold Mines Ltd. P. Wright Contracting Ltd.
006-787-592 4215/55 131 BARKERVILLE GOLD MINES LTD. CA3322184 12422 Barkerville Hwy (Parcel B Block 7 DL 131) International Wayside Gold Mines Ltd. Kenneth James Pollock and Dianne
Lee Verne Pollock



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PID CG # DISTRICT LOT FEE SIMPLE OWNER TITLE # AGREEMENT NAME VENDEE VENDOR
026-025-906 2517/101 391 BARKERVILLE GOLD MINES LTD. BB1991819 BGM Apartments (Lot 1 DL 391) Barkerville Gold Mines Ltd. Standard Drilling & Engineering Ltd.
017-589-517 2517/101 391 BARKERVILLE GOLD MINES LTD. CA4545743 LV Fuel Tank Lot (Lot 1 DL 391) & Lot 2 DL 391 Barkerville Gold Mines Ltd. Pete Wright (017-589-517)
018-685-056 1036/97 289 BARKERVILLE GOLD MINES LTD. CA6190280 4270 Sanders Ave (Community Relations Office) Barkerville Gold Mines Ltd. Dennis Wayne Manuel
005-537-541 5313/624 (U),
5763/628 (S)
10518 BARKERVILLE GOLD MINES LTD. CA8578737 4192 Davies Rd. (House Purchase) Barkerville Gold Mines Ltd. Robin Sharpe
006-773-931 1036/97 289 BARKERVILLE GOLD MINES LTD. CA9231853 4206 & 4215 Margaret Ave Barkerville Gold Mines Ltd. Kelsey Dodd
009-497-463 2517/101 391 BARKERVILLE GOLD MINES LTD. CA6851547 Merrick Wells Lots Barkerville Gold Mines Ltd. Estate of Douglas Warren Merrick
018-847-340 1036/97 289 BARKERVILLE GOLD MINES LTD. BX36213 Merrick Wells Lots Barkerville Gold Mines Ltd. Estate of Douglas Warren Merrick
013-100-572 2517/101 391 BARKERVILLE GOLD MINES LTD. CA6670546 Merrick Wells Lots Barkerville Gold Mines Ltd. Estate of Douglas Warren Merrick
013-778-366 1036/97 289 BARKERVILLE GOLD MINES LTD. CA9229300 4206 & 4215 Margaret Ave Barkerville Gold Mines Ltd. Kelsey Dodd
018-328-288 1036/97 289 BARKERVILLE GOLD MINES LTD. CA8802577 Blair Ave Subdivided Lots (House Purchase) Barkerville Gold Mines Ltd. Sharon Brown
019-113-854 2517/101 391 BARKERVILLE GOLD MINES LTD. CA6881775 Merrick Wells Lots Barkerville Gold Mines Ltd. Estate of Douglas Warren Merrick
023-677-007 4215/55 131 BARKERVILLE GOLD MINES LTD. PM47667 Cariboo RV Park Barkerville Gold Mines Ltd. Joy Stepan
018-856-870 4215/55 131 BARKERVILLE GOLD MINES LTD. CA801713 12438 Barkerville Hwy (Hubs Motel Purchase) Barkerville Gold Mines Ltd. Harald Dietrich Andreesen and
Dianne Elaine Andreesen
015-300-226 2099/1091 12634 BARKERVILLE GOLD MINES LTD. CA2741385 Lightning Hotel / Stanley Road Barkerville Gold Mines Ltd. Karen Olsen
024-954-527 3417/306 363 BARKERVILLE GOLD MINES LTD. FB488576 Bowron Lake Cabin Barkerville Gold Mines Ltd. Pete Wright
031-410-821 1036/97 289 BARKERVILLE GOLD MINES LTD. CA9059927 Blair Ave Subdivided Lots (House Purchase) Barkerville Gold Mines Ltd. Sharon Brown
031-410-812 1036/97 289 BARKERVILLE GOLD MINES LTD. CA9505757 Blair Ave Subdivided Lots (House Purchase) Barkerville Gold Mines Ltd. Sharon Brown


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4.6. Environment

Environmental reclamation securities or bonds are posted for each of the areas where mining or exploration has been approved. ODV also maintains regular water, environmental, and wildlife monitoring activities as part of their permitting requirements within the Project area.

4.6.1.   Environmental Liabilities

Environmental liabilities associated with the development and operation of the Project must be addressed for each disturbance associated with the proposed operations by posting new reclamation bonds, or updates to existing bonds for the QR Mill and Bonanza Ledge waste dump, and by the active management and reclamation/closure of the Project sites as the operation winds down.

Both the QR Mill ("QR") and Bonanza Ledge ("BL") sites are currently approved under separate Environmental Management Act and Mines Act permits, with associated, detailed Reclamation and Closure Plans ("RCP") and closure bonds in place. The liability estimate for the Project reclamation and closure will be provided during permitting processes at a later date.

A site-specific RCP for the Mine Site Complex, located at Wells, will be submitted to the BC Ministry of Energy, Mines, and Low Carbon Innovation ("EMLI"), in accordance with the application requirements for a Mines Act permit pursuant to the Mines Act (Government of BC, 1996), and Parts 10.6 and 10.7 of the revised Health, Safety, and Reclamation Code ("HSRC") for Mines in British Columbia (EMLI, 2021).

ODV has estimated that a cash reclamation bond for $18,484,755 will be required for the Project and will be posted to the BC Ministry of Finance as part of the permit process. This estimate does not include the current QR Mill and Bonanza Ledge Mine, which are currently approved under separate Mines Act permits, M-198 and M-238 respectively. Separate, detailed reclamation and closure plans and bonding estimates are maintained for those sites. This bond can be progressively recovered pending satisfactory completion of reclamation and closure objectives.

4.6.2.   Required Permits and Status

In 2019, permitting for the Project at a production rate of 4,000 tonnes per day ("tpd") commenced. This production rate was based on the mineral resource estimate provided in "NI 43-101 Technical Report - Preliminary Economic Assessment (PEA) of the Cariboo Gold Project" (August 18, 2019).



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The Project was subject to a provincial environmental assessment ("EA") as it exceeded the following threshold under the Reviewable Projects Regulation (B.C. Reg. 243/2019): "A new mine facility that, during operations, will have a production capacity of >75,000 tonnes per year ("t/yr") of mineral ore".

In October 2019, the EA process commenced with the submission of an initial Project Description and Engagement Plan, to the BC Environmental Assessment Office (the "EAO"), under the former BCEAA (2002). Following guidance from the EAO, in collaboration with ODV, and following regulatory requirements, it was decided the Project would continue the EA process under the new 2018 BCEAA. Subsequently, the Project Description submitted in October 2019 was accepted as fulfilling the requirements of the Initial Project Description as part of the new Act, in February 2020.

As the EA process continued, further exploration work and updates to the mineral resource estimate ("NI 43-101 Technical Report and Mineral Resource Estimate for the Cariboo Gold Project" (October 5, 2020)) supported an increase in the proposed production rate to 4,750 tpd.

The Project, at a production rate of 4,750 tpd, is currently undergoing review as per the BC Environmental Assessment Act ("BCEAA") 2018, with issuance of an Environmental Assessment Certificate ("EAC") expected after successful review of the application.

Since submission of the EAC Application in July 2021, ongoing exploration work and updating of the mineral resource estimate supports an increase in the production rate to 8,000 tpd after the first 3 years of operations. Any changes to the Certified Project Description, resulting from the increased production rate will first require an amendment to the Project EAC before proceeding to an updated detailed design and ensuing permit amendment applications.

A number of regulations establish the legal framework for the EA process under the BCEAA, and are detailed in Chapter 20, Section 20.6.2 (BC Environmental Assessment Regulations). In addition to the provincial EAC approval, the Project is expected to require federal and provincial permits, approvals and authorizations As the Project proceeds, specific permit requirements will be determined based on discussions with the regulatory agencies. These permits are further detailed in Chapter 20, Section 20.6.3 (Federal Permits, Approvals, Licences and Authorizations) and Section 20.6.4 (Provincial Permits, Approvals and Licences).

ODV has Mines Act and Environmental Management Act permits for the Bonanza Ledge Mine (M238, and PE-17876) and the QR Mill (M-198, PE-12601and Air permit 18124) which will be amended for the Project.



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Preliminary Economic Assessment for the Cariboo Gold Project

The Project facilities include areas within the jurisdictions of the CRD and the District of Wells, for the Mine Site Complex specifically. Both jurisdictions have passed bylaws that may pertain to Project activities/operations and property ownership or business operations and these further discussed in Chapter 20, Section 20.6.5 (Local Government Permits).

Other Wells bylaws are applicable to utility connections and municipal service fees related to property development (water, sewer, garbage). These bylaws would be addressed through direct applications with the District of Wells.



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5. Accessibility, Climate, Local Resources, Infrastructure and Physiography

Osisko Development Corp. ("ODV") is committed to communicating and engaging with stakeholders in the District of Wells ("Wells") and the surrounding Cariboo Gold Project ("the Project") area, including but not limited to the provincial government, third party mineral and placer owners operating in the area, neighbouring property owners, Barkerville Historic Town & Park, and Indigenous nations communities.

Wells is a mining town with a rich history of mineral exploration and production and is also a regional centre and tourist attraction for artists and outdoor enthusiasts. ODV maintains and fosters relationships with the community through public and stakeholder meetings (see Section 4.7), and through recruiting employees and sponsoring community events. The City of Quesnel, with a population of 23,000, is located 80 kilometres ("km") to the west. It has an airport and can provide the goods and services ODV requires. Williams Lake and Prince George are the nearest other major transportation and logistical hubs in the federal electoral district of Cariboo-Prince George, located 193 km and 175 km from Wells, respectively.

The following descriptions of the accessibility, climate, local resources, infrastructure and physiography for the Project and the Cariboo Gold District are taken from Georges et al. (2013) and Dzick (2015). Slight modifications have been made to adapt the text to the style of this report.

5.1.    Accessibility

The Project is located in Wells, British Columbia (BC), roughly 80 km east of the City of Quesnel. The Project is accessible via Highway 26, which branches off Provincial Highway 97 at Quesnel (Figure 5-1). A network of gravel roads provides access to Cow Mountain, Island Mountain and Barkerville Mountain. ODV's project offices and related facilities are located in the town of Wells.

The QR Mill is a wholly-owned and fully permitted milling and tailings facility approximately 110 km from Wells. The 500 Nyland Lake Forest Service Road, an all-season road, provides access to the site.



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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

5.2.    Infrastructure and Local Resources

The City of Quesnel is the primary supply, service and population centre for natural resource industries in the area and has the closest regional hospital. Manpower is also available in the region and many current employees live in Wells or Quesnel.

The region has the availability of power and water to support a mining operation that will be accessed by the Project. Canadian National Railway provides rail access from Quesnel to the Port of Vancouver and Highway 97 travels north-south through Quesnel.

 

Figure 5-1: Access to the Cariboo Gold Project



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Preliminary Economic Assessment for the Cariboo Gold Project

 

ODV has sufficient surface rights in the Project area for mineral exploration and development operations. These rights are generally conveyed by ODV's Crown-granted mineral claims or by specific permits, like those related to tailings and waste disposal areas, or water and timber use.

Currently, local resources include single-phase 7.2 kilovolt ("kV") power, potable water from the District of Wells public works (supplying roughly 985,000 litres ["L"] per day to the town), local sewage treatment, waste disposal sites, and high-speed internet and telecommunication services, including radio communication towers maintained by ODV for use by company personnel and site contractors.

The Project infrastructure includes an upgrade to the potable water supply and the construction of a 138 kV Transmission Line, connecting to the Barlow Creek Substation and terminating at the Mine Site in Wells.

ODV completed an assessment of the Project areas and have determined availability of a tailings storage area at he QR Mill, waste disposal areas at the Mine Site and Bonanza Ledge, and a location for the processing plant at the Mine Site and the QR Mill. Further information on this infrastructure can be found in Chapter 18 (Project Infrastructure).

ODV holds seven water licences: one for Willow River, three at the QR Mill site, one at the Ballarat temporary work camp, one unused licence on Island Mountain, and one for a well at the geological compound and field offices at Lowhee Creek. The climate allows for year-round mining operations, and there is enough readily available water to conduct diamond drilling.

5.3.    Climate

The Cariboo Region experiences a dry continental climate due to the coastal mountains influencing the westerly flow of winds and moisture coming from the Pacific Ocean. The climate at the site is characterized by relatively cold winters and mild summers. The annual precipitation is moderate and there is comparatively little variation over the year in monthly precipitation. The Project is able to operate 365 days a year.

Historical trend analysis and climate change predictions were used to evaluate the likelihood of the historical measurements to represent future climate conditions. Climate existing condition studies for the project were conducted by Golder. Table 5-1 consolidates the main climate statistics obtained from the Mine Site and QR Mill existing conditions report (Golder, 2021a; Golder, 2021b).



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Table 5-1: Summary of climate statistics

Variable Mine Site
Golder, 2021a)
QR Mill
(Golder, 2021b)
Mean annual total precipitation (mm) 1,034 671
Mean annual rainfall (mm)(1) 530 -
Mean annual snowfall (mm)(1) 504 -
1:2-year 24-hour rainfall (mm) 30.4 21
1:100-year 24-hour rainfall (mm) 66.4 41
Mean annual temperature for the LSA and RSA (ºC) 1.7
(1,460 m mean
elevation)
3.2
(949 m mean
altitude)
Mean annual temperature lapse rate (ºC change per 100 m altitude increase) -0.38 -0.37
Average winter season (sub-zero mean monthly temperatures) November to November to
  March March
Mean annual relative humidity (%) 72 68.3
Mean annual solar radiation (W/m2) 130 136
Mean annual shallow lake evaporation for the LSA and RSA(2) (mm) 630 676
Mean annual potential evapotranspiration for the LSA and RSA(2) (mm) 737 862
Difference in mean annual shallow evaporation and potential 2% to 3% -
evapotranspiration between the LSA and RSA (%)(1)    
Mean snow depth for the month of March (cm) 96 63
Mean snow density for the month of March (g/cm3) 0.29 0.30

Note: Statistics are based on reviewed historical records from multiple climate stations and measured and derived data (where applicable).

(1) Data point only for the Mine Site.

(2) Data point only for the RSA of QR Mill.

5.4.    Physiography

The topography in the Project area is mountainous (Figure 5-2), rising from a low point of approximately 1,190 metres above sea level ("masl") in the incised river valleys around Wells and Barkerville Historic Town & Park to a peak of 2,060 masl at Roundtop Mountain located 25 km south of Wells. Mount Proserpine, 11 km south of the town, summits at 1,830 masl.



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Preliminary Economic Assessment for the Cariboo Gold Project

Mountain summits are generally rounded, reflecting the passage of continental ice sheets during the Pleistocene Epoch. Pleistocene glacial till and clay are widespread. Moderately drained and well-drained morainal and colluvial materials dominate at higher elevations. Valley bottoms are overlain by very poorly drained organic deposits or moderately drained fluvial sands adjacent to the Willow River, downstream of Jack of Clubs Lake, lower Lowhee Creek, and the Willow River. Ice direction is generally to the northwest near Wells, and glacial till is the most widespread surficial deposit in the area.

The relatively small drainage basins of Jack of Clubs Lake and Williams Creek converge at Wells and together compose the upper headwaters of Willow River. They represent a combined catchment area of approximately 100 kilometres squared ("km2") at the southern extremity of the Willow River Basin and together embody roughly 3% of the total area of the basin. The Willow River flows into Fraser River east of Prince George.

The area is well forested, and the mountains are typically covered with subalpine forests, except near their peaks. Vegetation is dominated by Engelmann Spruce (Picea engelmann), Lodgepole Pine (Pinus contorta var. latifolia) and Subalpine Fir (Abies lasiocarpa), accompanied by alders and other deciduous varieties on lower wetter slopes flanking river valleys. Prominent in the subalpine flora is the shrub Rhododendron albiflorum (Rhodoendron). Bedrock exposure is poor, except along creeks, ridgelines and logging roads.



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Figure 5-2: Aerial view of the town of Wells looking east

Photograph looking east from above Island Mountain. Mount Murray (left) and Mt. Waverly (right) are the highest peaks in the distance, with the Cariboo Mountains beyond. Island Mountain forms the foreground with Valley Mountain to the left and Cow Mountain to the right, on the south side of the town of Wells (centre). Barkerville Mountain is located beyond Cow Mountain to the right of the photo. The southeastern part of Wells is built on a fan of placer tailings that issued from Lowhee Creek (right) into Jack of Clubs Lake (bottom right). (Photo from Google Earth, 2020)



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6. History

The Cariboo Gold Project ("the Project") contains several historical mines, including Cariboo Gold Quartz Mine, Aurum Mine/Island Mountain Mine, and Mosquito Creek Mine. The local placer claims highlight the general endowment of the Cariboo Gold Project ("the Project") camp but, for the purposes of this Report, they are not discussed in detail.

For the purposes of this Chapter, the term "ore" is being used in historical context.

6.1. Historical Mines

6.1.1. Cariboo Gold Quartz Mine

Fred Wells purchased the Rainbow claim group from A.W. Sanders and formed Cariboo Gold Quartz Mining Company Ltd. ("Cariboo Gold Quartz Mining") in 1927. The Cariboo Gold Quartz Mine operated from 1927 to 1959 at Cow Mountain.

In October 1942, gold mining was classified as a non-war industry by the federal government and received no priority for labour or supplies. As a result, gold mines in British Columbia were unable to hire replacement labour for the duration of the war. The mining operation never recovered from the loss of revenue caused by a 50% reduction in production and the depletion of reserves in the absence of exploration drilling and only minor development during this period.

Following the purchase of the Island Mountain Mine in 1954, Cariboo Gold Quartz Mining focused on developing higher grade pyrite-type replacement ore.

The Cariboo Gold Quartz Mine closed on August 31, 1959.

In 1959, in its 33rd Annual Report, the company reported book reserves of 95,265 tonnes ("t") of ore, including a 1952 reserve write-down of 42,275 t of 9.26 grams per tonne ("g/t") gold ("Au") and another 52,990 t of 12.69 g/t Au scattered in 51 ore remnants through 13 levels and across a distance of 10,500 feet ("ft") (3,200 metres ["m"]).

These "Reserves" are historical in nature and should not be relied upon. It is unlikely they comply with current NI 43-101 requirements or follow Canadian Institute of Mining ("CIM") Definition Standards, and their relevance and reliability have not been verified. They are included in this section for illustrative purposes only and should not be disclosed out of context.

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The Cariboo Gold Quartz Mill continued processing ore from the Aurum Mine on Island Mountain until March 1967. During the period between 1933 and 1967, a total of 1,951,944 t of ore was mined, yielding 863,307 ounces ("oz") of gold and 91,652 oz of silver. (MINFILE number 093H 019); the average recovery during that period was 95.3%.

6.1.2. Island Mountain Mine (Aurum Mine)

In 1925, C.J. Seymour Baker acquired the original five Crown-granted mineral claims (later known as the Aurum Group), which he worked until 1932.

In 1932, Newmont Mining Corporation ("Newmont") acquired the Aurum Group and eight adjacent claims to form Island Mountain Mines Company Ltd.

Milling commenced in 1934 at a rate of 50 short tons ("st") per day and reached a peak of 149 st/d in 1941. Quartz-type ore in diagonal vein structures and pyrite-type ore in the Aurum limestone unit were both extracted. The mine was developed over a strike length of 4,500 ft (1,371.6 m). After 1945, no further exploration or development was carried out west of the Aurum Fault, and in 1952 the mine suspended active exploration and development.

Under Newmont's ownership, production from the mine was 770,093 st (699,536 t) from which 333,705 oz of gold and 48,130 oz of silver were recovered (MINFILE number 093H 006). The mill also recovered 531 lb of zinc and 134 lb of lead.

Cariboo Gold Quartz Mining purchased the mine and equipment from Newmont in 1954 for a sum of CAD305,000. Underground workings extending northwest from the Island Mountain Mine into the Mosquito Group are formally known as the Aurum Mine. The Cariboo Gold Quartz Mine and Island Mountain Mine do not connect below Jack of Clubs Lake.

6.1.3. Mosquito Creek Mine

Andrew H. Jukes, of Calgary, acquired the Mosquito Creek claim group and formed Mosquito Creek Gold Mining Company Ltd. ("Mosquito Creek Gold") in 1971 to explore the ground above the Aurum Mine. Surface exploration drilling and underground development from 1971 to 1975 were financed by a joint venture agreement with the Home Oil Company Ltd. of Calgary. They conducted an extensive surface and underground exploration and development program on the property. In 1975, Mosquito Creek Gold purchased all of Home Oil Company's interest in the property. Subsequently, Peregrine entered into a joint venture agreement with Mosquito Creek Gold, whereby it ultimately earned a 50% working interest in the property.

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A total of 27,384 oz of gold were recovered from 86,248 t of mostly pyrite-type ore milled during the main production period (1980 to 1983). The operation failed due to low initial reserves and a low discovery rate of new ore. The latter was the result of insufficient development at depth and northwest of the Mosquito Fault.

In 1984, Hudson Bay Mining and Smelting Co. Ltd. ("Hudson Bay") optioned the property but dropped it after earning a 10% interest. Hudson Bay sold its interest back to Mosquito Creek Gold, and Peregrine sold its 50% interest to Mosquito Creek Gold.

In 1986, the property was optioned by Hecla Mining Company of Canada Ltd. who conducted underground exploration work and then dropped their interest in the company.

Mining operations were intermittent until 1987 when Mosquito Creek Gold became Mosquito Creek Consolidated Gold Mines Ltd. After the gold price dropped, and new ore became hard to find, the mine closed in 1987. During the period between 1980 and 1987, a total of 92,826 t of ore were mined from which 35,054 oz of gold and 9,750 oz of silver were recovered (MINFILE number 093H 010).

In 1988, Lyon Lake Mines Ltd. optioned the property and earned a 50% interest after performing underground exploration.

6.2. Surface Work Programs

6.2.1. Cariboo Gold Quartz Mining Company Ltd. (1968)

In 1968, Dolmage Campbell and Associates Ltd. carried out 5 km of bulldozer trenching on behalf of Cariboo Gold Quartz Mining.

A total of 17 trenches, approximately 2 m to 2.5 m deep, were excavated across the Baker- Rainbow contact over a strike length of 1.6 km on Island Mountain. Pyritic mineralization, 6 m long by 1 m wide, was discovered in Trench J.

6.2.2. Wharf Resources Ltd. (1980-1981)

In 1972, Cariboo Gold Quartz Mining amalgamated with Coseka Resources Ltd. to form a company with the name of the latter. In April 1973, Wharf Resources Ltd. (formerly Plateau Metals and Industries) amalgamated with French Exploration Ltd. (a wholly owned subsidiary of Coseka Resources).

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Wharf Resources carried out surface drilling programs in 1980 and 1981 to search for near-surface ore on the Cariboo and Island Mountain claim groups. A total of 7,010 m of percussion drilling and 1,219 m of diamond drilling were completed in 1980 and 1981 (Bolin, 1984).

6.2.3. Blackberry Gold Resources Inc. (1988)

In 1987, Blackberry Gold Resources Inc. completed several work programs on the ARCH 1-4 claim group located on Cow Mountain and Richfield Mountain. The objective of the work was to discover gold mineralization associated with the system of north-striking fault structures. Very-low- frequency electromagnetic ("VLF-EM") geophysical surveys were used to define conductors inferred to be the strike extension of major faults on the Cariboo Group of Crown-granted mineral claims. Four strong conductive trends were tested along six fences of percussion drill holes for a total of 2,424 m of drilled in 79 holes. This was followed by 2,465 m of diamond drilling in 19 holes.

6.2.4. Pan Orvana Resources Inc. (1989-1991)

On July 12, 1985, Mosquito Creek Gold purchased the Cariboo and Island Mountain claim groups from Wharf Resources Ltd. Pan Orvana Resources Inc. ("Pan Orvana") signed the Cariboo Gold Option Agreement on May 20, 1988, obtaining the right to earn a 50% interest in the Cariboo Group, but terminated the agreement in 1991 without exercising the option.

Pan Orvana excavated 20 surface trenches, drilled four holes, and conducted ground geophysical surveys, geochemical sampling programs, and geological mapping.

6.2.5. Gold City Mining Corp. (1994-1995)

In 1994 and 1995, Gold City Mining Corp. ("Gold City Mining") assembled a large land position consisting of 13,000 hectares ("ha") of mineral titles between Mount Tom and the Cariboo Hudson Mine to form the Welbar Gold Project.

Doing so involved seven option agreements, including one that covered the Mosquito Creek, Island Mountain, and Cariboo claim groups. The latter was subject to the Cariboo Option Agreement between Mosquito Creek Consolidated Gold Mines Ltd. and International Wayside Gold Mines Ltd. lntera Information Technologies Corp. flew a synthetic aperture radar survey in July 1995. DIGHEM I Power completed a regional airborne radiometric-Mag-EM survey of 1,280 line-km, as well as trenching and diamond drilling on some of their properties, including one drill hole on the Mosquito Creek Group.

From October 1 to November 30, 1995, Gold City Mining conducted a 13-hole (1,865 m) diamond drilling program on the Cariboo-Hudson Property (Chapman, 1996a).

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Gold City Mining optioned the Cariboo-Hudson Property from Cathedral Gold Corp. in 1994.

In November 1995, Gold City Mining sunk four diamond drill holes (560 m) on the Williams Creek Property (Chapman, 1996b). That same month, Gold City Mining drilled two holes (390 m) on the Island Mountain Property (Chapman, 1997).

6.3. International Wayside Gold Mines Ltd. (1999-2014)

Table 6-1 summarizes the work conducted by International Wayside Gold Mines Ltd. ("IWGM") on the Island Mountain Project between 1999 and 2014, as documented in Pickett (2000; 2001; 2002; 2003), Pautler (2003; 2004), Johnson (2005), Moore (2006), Yin and Daignault (2007a) and Yin (2011), as well as Management Discussion and Analysis reports ("MD&A") from Island Mountain Gold Mines Ltd. ("IGM"), International Wayside Gold Mines Ltd. ("IWGM") and Barkerville Gold Mines Ltd. ("BGM").

Table 6-1: Summary of diamond drilling on the Island Mountain Project from 1999 to 2014

Year Zone/Area Surface diamond drilling
    (drill hole) (m)
1999 Footwall of the West Fault 10 902.2
2000 Northwest of the Mosquito Creek Mine 10 1,750.5
2001 Gold-in-soil anomaly 2 367.3
Favourable stratigraphy 1 183.8
Kutney Zone 4 672.7
2002 Gold-in-soil anomaly and IP anomaly 2 191.7
Gold-in-soil anomaly 2 210.3
2003 2003 trenching program 13 1,397.5
2004 Snapjack Zone 3 303.9
Teapot Vein 3 555.0
2005 Snapjack Zone 9 906.1
Southern soil anomaly 4 780.3
Channel sample anomaly 2 202.1
2006-2009 No drilling 0 0.0
2010 Reconnaissance exploration 1 178.6
2011-2014 No drilling 0 0.0
Total 66 8,602.0

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6.4. International Wayside Gold Mines Ltd. (1995-2009)

The following descriptions cover the history of exploration work conducted by IWGM on the Cariboo Gold Quartz Project between 1995 and 2009 and are taken from Lord and Reid (1997), Reid (1999), Hall (1999), Lord and Hall (2001), Walton (2002a; 2002b; 2003a; 2003b), Gates (2005), Duba (2005), Daignault and Moore (2006), Sandefur and Stone (2006), Yin and Daignault, (2007; 2008), Brown (2009), Fier et al. (2009) and Yin (2010a; 2010b). The text retains the references therein.

6.4.1. 1995-1999 Work Programs

IWGM worked the Project area continuously from May 1, 1995. Most of the work was carried out on the main mine trend, either from the surface or underground from the 1200 level adit.

In 1998 and 1999, a secondary target, the BC Vein, was explored over a strike length of 384 m by 31 surface drill holes totalling 2,245.2 m. The goal of this program was to find high-grade ore shoots of the kind located by Cariboo GoId Quartz Mining in the 1940s. Table 6-2 summarizes IWGM's drilling on the Project between 1995 and 1999.

In the summer of 1997, IWGM carried out a geochemical and prospecting program to find new mineralized showings and generate targets for further exploration. The geochemical surveys yielded 1,079 soil samples, 59 stream sediment samples, and 121 rock samples.

Table 6-2: Summary of diamond drilling on the Cariboo Gold Project from 1995 to 1999

Year Zone Surface diamond
drilling
Underground diamond
drilling
Underground percussion
drilling
(drill hole) (m) (drill hole) (m) (drill hole) (m)
1995 Rainbow 17 844.0 12 496.5 6 96.9
1996 Rainbow 8 424.0 5 157.6 38 867.8
Pinkerton 5 385.3 - - 25 998.5
1997 Rainbow 20 1,617.6 - - - -
Pinkerton 17 1,359.4 - - 9 481.5
Sanders 2 170.1 - - 33 2,023.6
1998 Pinkerton - - - - 5 307.2
Sanders 2 157.9 - - 19 964.4
Butts 2 146.0 - - - -
BC Vein 13 846.7 - - - -
1999 BC Vein 18 1,398.4 - - - -
Total 104 7,349.4 17 654.1 135 5,739.9

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6.4.2. 2000-2009 Work Programs

IWGM carried out extensive work from 2000 to 2009. Table 6-3 summarizes the drilling by year and area of interest.

Table 6-3: Summary of diamond drilling on the Cariboo Gold Project from 2000 to 2009

Year Zone/Area Surface diamond drilling Underground diamond drilling
(drill hole) (m) (drill hole) (m)
2000 BC Vein 48 6,227.4 - -
Bonanza Ledge
2001 BC Vein 22 5,145.9 - -
Bonanza Ledge
Cow Mountain 3 653.8 - -
2002 BC Vein 18 3,394.0 - -
Bonanza Ledge
Myrtle Property 5 1,206.1 - -
2003 Bonanza Ledge 26 3,037.3 3 203.3
Myrtle Property 4 781.5 - -
2004 Bonanza Ledge 60 7,788.6 73 5,974.1
Bonanza Ledge - engineering 17 1,899.5 - -
Myrtle Property 5 861.4 - -
Goldfinch Target 6 826.6 - -
Groundwater monitoring well holes 2 120.1 - -
2005 Lowhee Creek 23 4,422.4 - -
Black Bull 3 474.9 - -
2006 Mucho Oro 31 4,682.1 - -
2007 Cow Mountain 15 1,463.6 - -
2008 Goldfinch and Bonanza Ledge 10 1,762.1 - -
2009 Cow Mountain 11 1,900.2 - -
Lowhee Creek 2 329.8 - -
Bonanza Ledge 18 1,781.5 - -
Groundwater monitoring well holes 7 362.7 - -
Total 336 47,222.0 76 6,177.4

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6.4.2.1. 2000 Work Program

On March 23, 2000, IWGM announced the discovery of a new mineralized zone while drilling the BC Vein. The type of mineralization encountered had not previously been identified in the region. The new zone was named the Bonanza Ledge Zone.

Subsequent geochemical, geophysical, and diamond drilling programs explored the Bonanza Ledge and BC Vein zones to look for new Bonanza Ledge-type targets away from the initial discovery. The work program consisted of 48 drill holes for 6,227.4 m and focused on area adjacent to the BC Vein. Surface exploration, completed mainly between August and October 2000, included geological mapping, prospecting, 44.2 line-km of soil sampling (2,400 samples on cut grid lines, spacing of 61 m by 15.2 m), and 32.9 line-km of ground geophysical surveys including self-potential ("SP"), Induced Polarization ("IP"), VLF-EM, and ground Mag surveys. To provide an accurate topographic base map for IWGM's claims, an aerial photographic survey was flown in August and September 2000, covering its full extent. Historical mineral resource estimates from this period are superseded by those reported herein. They are described in detail in a previous technical report (Beausoleil and Pelletier, 2018) available on SEDAR.

In 2000, IWGM hired an independent consultant, R.G. Simpson (P.Geo.), to review the Cow Mountain data and the 1999 Resource (Dykes, 1999). Simpson estimated an Inferred resource (see IWGM's 2000 AIF) for Cow Mountain and following the recommendations from Simpson, another mineral resource estimate was completed by G.H. Giroux in 2000 (Giroux, 2000).

6.4.2.2. 2001 Work Program

The program in 2001 included diamond drilling, 20 line-km IP survey along 22 lines on Cow Mountain, 24.3 line-km of SP surveying, and 7.2 line-km of brushing out of lines for the IP survey on 11 lines.

6.4.2.3. 2002 Work Program

Diamond drilling was carried out in 2002, along with a mineral resource estimate by Giroux Consulting (the "2002 Estimate"; Giroux, 2002).

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6.4.2.4. 2003 Work Program

The 2003 work program involved 70 m of trenching in six trenches. The work concentrated on the Bonanza Ledge Zone, the adjacent Myrtle Group, and the Sanders Zone. The program also included surface and underground drilling. Historical mineral resource estimates from this period are superseded by those reported herein. They are described in detail in a previous technical report (Beausoleil and Pelletier, 2018) available on SEDAR.

In 2003, an independent preliminary economic assessment ("PEA") completed by DJP Consultants Ltd. (Pow, 2003) concluded that the 2002 Estimate yielded a probable reserve of 3,109,000 t grading 2.95 g/t Au for 294,700 oz of contained gold, and that there were sufficient reserves to supply an on-site processing plant with 1,359 tonnes per day ("tpd") using open pit mining methods over 6.5 years, for life of mine ("LOM") production of 261,900 oz of gold. The PEA was based upon a pre-tax initial rate of return ("IRR") of 29.5% (used equipment) at a gold price of US$340/oz.

This "PEA" is historical in nature and should not be relied upon. In 2003, it was compliant with NI 43-101 requirements. Since 2003, more drilling has been added, and more geological information has become available. Additionally, the assumptions for the cut-off grade calculations, as well as the estimated capital and operating costs, are likely to have changed since 2003. Consequently, the DJP Consultants Ltd. PEA cannot be considered as current. It is included in this section for illustrative purposes only and should not be disclosed out of context.

6.4.2.5. 2004 Work Program

The work program in 2004 focused mainly on the Bonanza Ledge Zone. The Bonanza Ledge Zone was drilled from the surface and underground.

Underground development at Bonanza Ledge started in late 2003 and continued into 2004.

Exploration activities also included underground and surface drilling, geological mapping, trenching, a soil grid extension, and channel sampling along road exposures.

6.4.2.6. 2005 Work Program

In March 2005, 10,000 dry tonnes of concentrate from Bonanza Ledge were shipped via CN Rail to Noranda Inc.'s smelter in Rouyn-Noranda, Québec, for refining into gold bullion. IWGM received net proceeds before royalties of $1,505,720 for 5,200 oz recovered post-milling from the Bonanza Ledge bulk sample collected in 2004.

The exploration program included surface drilling, surface mapping, and sampling.

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A gravity geophysical survey was planned to cover the Bonanza Ledge and Lowhee Creek areas. The survey was initiated in November 2005 but only covered the grid on the Bonanza Ledge deposit.

6.4.2.7. 2006 Work Program

The work program in 2006 consisted of surface drilling, prospecting, surface mapping, and sampling.

IWGM retained Chlumsky, Armbrust and Meyer LLC ("CAM") of Lakewood, Colorado to prepare a public PEA (the "2006 PEA"). Prior to the 2006 PEA, CAM and Minefill Services Inc. had completed an internal "scoping study" for IWGM on the Bonanza Ledge Zone. CAM advanced this internal study to comply with NI 43-101 standards. The study used the 2002 Estimate of Giroux (2002).

IWGM intended to process the material mined from Bonanza Ledge at a nearby facility, in particular, the Quesnel River Mill ("QR Mill") facility belonging to Cross Lake Minerals. Testing showed good amenability to cyanidation with recoveries ranging from 93% to 97%. These recoveries were attained rapidly, with 98% of the recovery occurring in the first six hours of the 72- hour leach.

The economic analysis of this scenario reported an estimated net present value ("NPV") of $10.7 million, assuming a discount rate of 5%, and total expenditures of approximately $23.0 million. The sensitivity analyses carried out on the cash flow model determined that the project was most sensitive to changes in recovery and gold price, and the project was least sensitive to changes in capital costs.

6.4.2.8. 2007-2008 Work Programs

The work programs in 2007 and 2008 consisted of surface drilling. In 2007, 1,463.54 m were drilled on Cow Mountain in 15 holes to test the Rainbow and Sanders zones. In 2008, 1,762.07 m were drilled in 10 holes to further define the Bonanza Ledge Zone and test the adjacent Goldfinch Target.

6.4.2.9. 2009 Work Program

Surface drilling was conducted during the 2009 work program.

In 2009, an NI 43-101 technical report was prepared for IWGM and Barkerville. It addressed the geology and exploration history for gold on properties in the IWGM land package comprising the Cariboo Gold Project. The scope of the technical report included an update and compilation of recent exploration activities completed by IWGM on the land tenure of the Cariboo Gold Project from 2006 to 2008. This report built on previous technical reports that outlined gold mineral resources contained in the Project area, with mineral resource calculations specific to the Cow Mountain area (Giroux, 2006) and the Bonanza Ledge Zone area (Sandefur and Stone, 2006).

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A pre-feasibility study ("PFS") was prepared for the Bonanza Ledge Project by EBA Engineering Consultants Ltd. ("EBA") of Vancouver, British Columbia, and several independent professionals and consultants. The study used the mineral resource and mineral reserve evaluation (the "2009 Estimate") of Mintec Inc. of Tucson, Arizona, as the basis of its economic analysis. The PFS was an update of the previously disclosed mineral resource (Sandefur and Stone, 2006). An NI 43-101 technical report was prepared by EBA. Historical mineral resource estimates from this period are superseded by those reported herein and described in detail in these previous technical reports available on SEDAR.

In late 2009, International Wayside Gold Mines purchased the QR Mine and Mill from Cross Lake Minerals Ltd. and in January 2010, changed their name to Barkerville Gold Mines Ltd (BGM).

6.5. Barkerville Gold Mines Ltd. (2010-2014)

The following description of work conducted by BGM on the Project between 2010 and 2014 is taken from Yin (2011; 2013), Georges (2012), Georges et al. (2013), Dzick (2015), Layman (2015), and BGM's MD&A reports. The text retains the references therein.

Table 6-4 outlines the drilling on the Project from 2010 to 2014.

Table 6-4: Summary of diamond drilling on the Cariboo Gold Project from 2010 to 2014

Year Zone/Area Surface Diamond Drilling
(drill hole) (m)
2010 Bonanza Ledge 17 2,918.2
Cow Mountain 45 5,792.3
Island Mountain 1 178.6
2011 Pit Vein Zone 10 1,045.2
BC Vein 30 9,284.6
Bonanza Ledge (ARD samples) 5 943.1
Cow Mountain 163 43,410.6
Stouts Gulch and Myrtle Property 2 212.2
Groundwater monitoring well holes 21 3,019.9
2012 Cow Mountain 14 2,753.2
2013 No drilling 0 0
2014 Cow Mountain 10 4,142.2
Total 318 73,700.1

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6.5.1. 2010-2011 Work Programs

Surface trenching and sampling work were completed in 2010. A total of 175 samples were collected from 18 channels. The channels were spaced approximately 6 m apart along a 125 m long trench.

The work program in 2011 included surface drilling and trenching. A total of 66 channel samples were collected from the trenches.

6.5.2. 2012 Work Program

All historical estimates are superseded by the current mineral resource estimate reported in Chapter 14 of this report.

On June 28, 2012, BGM announced a public mineral resource estimate for the Gold Quartz open pit model on Cow Mountain (the "Gold Quartz Estimate") and the geological potential of the 6.4-km Cow-Island-Barkerville Mountain Corridor (BGM news release of June 28, 2012). Geoex Ltd. ("Geoex") prepared the independent estimate. The announcement of the estimate led to a request for a supporting technical report within 45 days from the BC Securities Commission ("BCSC") and initiated a request for further information from the Geoex QP (Peter T. George). The BCSC was provided with a draft technical report. Upon review of the draft technical report, the BCSC expressed concerns about certain methods, parameters, and assumptions used to estimate the mineral resources and potential exploration targets at Cow Mountain, as well as the estimates themselves. The final version of the NI 43-101 technical report was filed on SEDAR on August 13, 2012 (Georges, 2012).

On August 14, 2012, the BCSC issued a cease trade order ("CTO") against BGM, stating that the report was not in the required form under NI 43-101 (BGM press release of August 15, 2012). BGM was advised that the CTO would remain in place until BGM filed an NI 43-101 report acceptable to the BCSC, addressing all technical disclosure concerns.

On October 19, 2012, BGM retained Snowden Mining Industry Consultants Pty ("Snowden") to review the report in question and help satisfy the CTO conditions. On November 5, 2012, BGM provided an additional update on its technical review. As requested by Snowden, 14 twin holes had been drilled on Cow Mountain between September 22, 2012 and October 14, 2012 (drill holes CM12-01A to CM12-09C), for a total of 2,759.4 m. The total meterage included five drill holes that had to be abandoned after hitting shafts and/or underground workings before reaching their target. Channel samples were also collected from the 2012 trenches on Cow Mountain. This data was used to verify the results of the report in question.

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During its review of the NI 43-101 report, Snowden examined historical samples not included in the original Gold Quartz Estimate. Snowden recommended that these samples be included in the ongoing mineral resource estimate for Cow Mountain after being validated. The Gold Quartz Estimate was based on a database containing 619 drill holes. About 2,142 holes had been drilled on the property of which more than 1,464 had been verified by Mintec.

In July 2012, BGM received an amendment to Mines Act Permit M-198 for the QR Mill to allow the custom milling of up to 300,000 t of ore from the Bonanza Ledge Mine, as well as the disposal of associated mine tailings in the QR Main Zone Pit. In December 2012, BGM received an amended Environmental Management Act Permit, PE-17876, to allow effluent discharge associated with active mining at Bonanza Ledge.

6.5.3. 2013 Work Program

In June 2013, BGM filed an NI 43-101 technical report to present and support the updated mineral resource estimate for Cow Mountain (the "2013 Estimate"; Georges et al., 2013). As part of the mandate, Snowden assisted Geoex and BGM in the review and audit of the data validation and verification aspects of the Cow Mountain data, the determination of the most appropriate estimation method for Cow Mountain, and the preparation of the independent mineral resource estimate for the Cow Mountain area.

The 2013 estimate was reported at a range of cut-off grades for the Indicated and Inferred categories (Georges et al., 2013). No Measured mineral resources were estimated.

On July 15, 2013, the BCSC Rescinded the CTO issued on August 14, 2012. On October 9, 2013, common shares of BGM resumed trading on the Toronto Stock Exchange ("TSX:V").

To satisfy some of the recommendations of the last technical report (Georges et al., 2013), BGM reviewed core sampling records for all drill holes in the Cow Mountain mineral resource model. A core sampling and assaying program was conducted to provide assays for any previously unsampled drill core intervals. The infill sampling program (55,698.6 m) was conducted on 250 holes drilled in 2007, 2009, 2010 and 2011 on Cow Mountain (BGM press release of January 20, 2014). The program was completed in January 2014. Available reject samples for all the Cow Mountain drill holes were shipped to Acme Labs for fire assay-metallic screen analysis. In total, 25,280 samples were sent to Acme Labs.

Historical mineral resource estimates from this period are superseded by the 2021 Mineral Resource Estimate ("2021 MRE") reported herein. They are described in detail in previous technical reports available on SEDAR.

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6.5.4. 2014 Work Program

BGM conducted surface drilling in 2014.

In March 2014, BGM announced the commencement of operations at the Bonanza Ledge Mine. The first production blast was on March 12, 2014. Over the course of the year, BGM milled 53,090 t of ore at an average head grade of 6.23 g/t Au and a recovery rate of 90%. The average net operating cost was $1,669 per ounce.

6.6. Barkerville Gold Mines Ltd. (2015-2021)

All exploration and drilling results from 2015-2021 are summarized in Chapters 9 and 10. Production and historical mineral resource estimates are summarized below.

For the purposes of this Report, Barkerville Gold Mines Ltd., as it operated from 2015-2021, will be referred to as Osisko Development Corp. ("ODV"). Current ODV management has been in place since 2015 and on November 21, 2019, Osisko Gold Royalties acquired the Cariboo Gold Project through the acquisition of Barkerville Gold Mines Ltd. The Project was part of the Osisko Gold Royalties contributed assets that created the Osisko Development Corp. on November 25, 2020.

During 2015, ODV milled 11,275 t of Bonanza Ledge ore at an average head grade of 10.14 g/t Au, a recovery rate of 94%, and an average net operating cost of $877/oz. Based on the results as of February 28, 2015, management decided to cease production and place Bonanza Ledge under care and maintenance.

In 2016, ODV mandated InnovExplo Inc. ("InnovExplo") (Brousseau et al., 2017) to complete an NI 43-101 technical report and Mineral Resource Estimate (the "2017 MRE") for the Barkerville Mountain deposit. GEOVIA GEMS™ was used for modelling purposes and the estimation approach, which consisted of 3D block modelling and the ordinary kriging interpolation method. The close-out date of the database was July 18, 2016, and the effective date of the 2017 MRE was March 21, 2017 (Brousseau et al., 2017).

In January 2017, ODV began commissioning its wholly owned QR Mill using the low-grade stockpile at the Bonanza Ledge open pit. Material sorting was done at the stockpile, producing relatively high-grade pre-concentrate. By the end of February 2017, 2,860 t of ore was transported to the QR Mill for an average grade of 2.94 g/t Au. During the second quarter of 2017, portal and underground development began at the Bonanza Ledge Mine to prepare for the processing of in-situ Bonanza Ledge material. A total of 470 m of underground development was completed in 2017, resulting in the processing of approximately 7,000 t of both low- and high-grade development material at the QR Mill for commissioning and training purposes.

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In 2017, ODV mandated InnovExplo (Beausoleil and Pelletier, 2018) to update the 2017 MRE and perform a review and validation of the maiden mineral resource estimate for the Cow Mountain and Island Mountain deposits combined (the "2018 MRE"). The ordinary kriging ("OK") grade interpolation method was used. The results of the in situ 2018 MRE at the 3.0 g/t cut-off grade are presented in Table 6-5.

The close-out date of the database was December 31, 2017, and the effective date for the 2018 MRE was May 2, 2018.

Table 6-5: 2018 Cariboo Gold Project Mineral Resource Estimate at a cut-off of 3.0 g/t Au

(Beausoleil and Pelletier, 2018)

Deposit by Categories Tonnes Au (g/t) Au (Oz)
Measured (total)      
Bonanza Ledge 264,000 7.3 61,900
Indicated      
Bonanza Ledge 63,400 4.8 9,700
BC Vein 444,900 6.4 91,600
Mosquito 247,000 9.5 75,700
Shaft 4,373,200 5.9 835,600
Valley 769,600 5.8 142,700
Cow 1,947,800 6.1 381,800
Total Indicated Mineral Resources 7,845,900 6.1 1,537,100
Total Measured and Indicated Mineral Resources 8,109,900 6.1 1,599,000
Inferred      
BC Vein 173,400 4.6 25,400
Mosquito 699,200 6.0 135,600
Shaft 7,357,000 5.1 1,213,000
Valley 2,454,300 5.4 423,400
Cow 2,047,300 5.4 358,300
Total Inferred Mineral Resources 12,731,200 5.2 2,155,700

Notes to Table 6-5:

1. The official underground mineral resource is reported at a cut-off grade of 3.00 g/t Au based on CAD1,664 per troy ounce gold and gold metallurgical recoveries of 87.4%.

2. Cut-off grades must be re-evaluated in light of prevailing market conditions (gold price, exchange rate and mining cost).

These "Mineral Resources" are historical in nature and should not be relied upon. Although they comply with current NI 43-101 requirements and follow CIM Definition Standards, they are included in this section for illustrative purposes only and should not be disclosed out of context.

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Test Mining at Bonanza Ledge was completed in December 2018. The objective was to gain technical information and train personnel to aid in future studies, permitting, and future mining. A total of 1,900 m of development took place at the Bonanza Ledge Mine in 2018. Approximately 120,000 t of ore were extracted and processed at an average grade of 5.94 g/t Au. Bonanza Ledge Mine was placed on care and maintenance in December 2018.

In 2019, ODV mandated InnovExplo (Beausoleil and Pelletier, 2019) to review, validate and update the 2018 MRE ("2019 MRE"). The OK grade interpolation method was used. The overall results of the 2019 MRE at the official 3.0 g/t cut-off grade are presented in Table 6-6.

Table 6-6: 2019 Cariboo Gold Project Mineral Resource Estimate at a cut-off of 3.0 g/t Au

(Beausoleil and Pelletier, 2019)

Category Deposit Tonnes
(000)
Grade
(Au g/t)
Ounces
(000)
Measured Bonanza Ledge 175 6.1 34
Indicated Bonanza Ledge 55 4.6 8
BC Vein 734 5.6 132
Mosquito 542 7.1 124
Shaft 7,200 5.6 1,300
Valley 1,212 5.3 208
Cow 3,578 5.5 637
Total Indicated Mineral Resources 13,266 5.63 2,401
Inferred BC Vein 87 3.6 10
Mosquito 690 6.5 144
Shaft 5,817 5.0 941
Valley 3,475 4.9 545
Cow 1,867 4.7 282
Total Measured and Indicated Mineral Resources 13,495 5.6 2,443
Total Inferred Mineral Resources 11,936 5.0 1,922

Notes to Table 6-6:

The estimate is reported for a potential underground scenario at cut-off grades of 3.0 g/t Au.

3. The cut-off grades were calculated using a gold price of USD1,300 per ounce, a CAD:USD exchange rate of 1.3; a mining cost of $42/t; a processing cost of $75/t; and G&A of $22/t.

4. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, mining cost, etc.).

These "Mineral Resources" are historical in nature and should not be relied upon. Although they comply with current NI 43-101 requirements and follow CIM Definition Standards, they are included in this section for illustrative purposes only and should not be disclosed out of context.

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Based on the results of the 2019 MRE, ODV mandated BBA Engineering Ltd. ("BBA") to prepare a technical report and PEA for the Cariboo Gold Project (Morgan et al., 2019). A number of specialized consultants assisted BBA with the PEA: Allnorth Consultants Ltd., Golder Associates Ltd., InnovExplo Inc., Mining Plus Canada Consulting Ltd., SRK Consulting (Canada) Inc., and WSP Canada Inc. The effective date of the PEA was August 18, 2019. The purpose was to complete a review and compilation of the mineral resources, mining designs, processing options, and preliminary economics of the Project, and to support the results disclosed in ODV's press release entitled "Barkerville Gold Mines Delivers Positive PEA for Cariboo Gold Project" dated August 19, 2019.

The PEA provided a base case assessment for developing the Cariboo Gold Project as a 4,000 tpd underground mine, with a concentrator located at the Mine Site at Wells and further processing at the QR Mill. The Project defined 13.3 million tonnes ("Mt") of mineralized material at an average of 5.6 g/t Au Indicated and 11.9 Mt at 5.0 g/t Au Inferred. The mine life was estimated to be 11 years. These results are described in detail in the PEA (Morgan et al., 2019) available on SEDAR.

In 2020, ODV mandated InnovExplo (Beausoleil and Pelletier, 2020) to complete an NI 43-101 technical report to present an updated mineral resource estimate and geological model (the "2020 MRE") for the Cariboo Gold Project. Leapfrog Geo was used for modelling purposes (GEOVIA GEMS™ was used for Bonanza Ledge) and the estimation approach, which consisted of 3D block modelling in Datamine Studio RM (Block modelling was completed using GEOVIA GEMS™ for Bonanza Ledge) and using OK grade interpolation method. The results of the in-situ 2020 MRE for the Barkerville Mountain deposit at a 2.1 g/t cut-off grade are presented in Table 6-7.

The close-out date of the database was January 29, 2020, and the effective date of the 2020 Estimate was April 28, 2020 (Beausoleil and Pelletier, 2020).

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Table 6-7: 2020 Cariboo Gold Project Mineral Resource Estimate at 2.1 g/t Au cut-off

(Beausoleil and Pelletier 2020)

Category Deposit Tonnes Grade Ounces
    * 1000 (Au g/t) * 1000
Measured Bonanza Ledge 240 5.1 39
Indicated Bonanza Ledge 86 3.9 11
BC Vein 1,192 4.7 179
KL 393 3.3 42
Lowhee 381 3.7 46
Mosquito 783 6.0 150
Shaft 10,889 4.7 1,644
Valley 1,744 4.5 251
Cow 5,734 4.5 838
Total Indicated Mineral Resources 21,201 4.6 3,160
Inferred BC Vein 472 3.9 60
KL 1,926 2.9 181
Lowhee 1,032 3.2 105
Mosquito 1,348 4.8 208
Shaft 7,913 4.2 1,081
Valley 5,683 4.0 722
Cow 3,276 3.5 364
Total Measured and Indicated Mineral Resources 21,441 4.6 3,200
Total Inferred Mineral Resources 21,649 3.9 2,721

Notes to Table 6-7:

1. The estimate is reported for a potential underground scenario at cut-off grade of 2.1 g/t Au;

2. The cut-off grades were calculated using a gold price of USD1,350 per ounce; a USD/CAD exchange rate of 1.31; a mining cost of $65.39/t; a processing, environment & transport cost of $28.67/t; and G&A cost of $11.07/t.

3. The cut-off grade should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, mining cost, etc.).

These "Mineral Resources" are historical in nature and should not be relied upon. Although they comply with current NI 43-101 requirements and follow CIM Definition Standards, they are included in this section for illustrative purposes only and should not be disclosed out of context.

The Bonanza Ledge Mine resumed development in mid-2019 and in 2020, 3,268 t of ore was extracted at an average grade of 2.58 g/t Au. In 2020, the underground focus was the development of drifts to access the BC Vein. In 2021, 98,786 t of ore was extracted at an average grade of 4.48 g/t Au (as of December 31, 2021). Development of a new portal to access and develop a bulk sample at the Cow Mountain portion of the mineral resource was completed in December 2021.

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7. Geological Setting and Mineralization

7.1. Introduction & Clarification

For the purposes of this Report, Barkerville Gold Mines Ltd. ("BGM"), as it operated from 2015 to 2020, will be referred to as Osisko Development Corp. ("ODV"). Current ODV management is a merger of the BGM management team that has been in place since 2015 and select Osisko Gold Royalties ("OGR") team members after OGR acquired the Cariboo Gold Project ("the Project") through the acquisition of Barkerville Gold Mines Ltd. on November 21, 2019. The Project was part of the OGR assets that created the Osisko Development Corp. on November 25, 2020.

In addition, the Cariboo Gold Project as described geologically refers to the entirety of the ODV land package in British Columbia. Within this land package, a proposed project ("the Project") is currently undergoing an Environmental Assessment under the BC Environmental Assessment Act (2018) with the addition of the Lowhee Zone discovered in 2019. The Project mining zones are limited to the Cow Zone, Lowhee Zone, Valley Zone, Shaft Zone, and Mosquito Creek.

7.2. Regional Geological Setting

The principal vein and gold-rich replacement-style deposits of the Cariboo Gold Project are hosted within Neoproterozoic to Paleozoic off-shelf siliciclastic and lesser carbonate facies rocks belonging to the Snowshoe Group of the peri-cratonic Barkerville terrane (e.g., Monger and Berg, 1984; Struik, 1986;1988; Schiarizza and Ferri, 2003; Ferri and Schiarizza, 2006). The Barkerville terrane, or sub-terrane, has several stratigraphic correlatives within the more southerly Kootenay terrane (Struik,1986;1988; Ferri and Schiarizza 2006) and may likewise correlate in part with the Yukon- Tanana terrane of northern BC, Yukon, and Alaska (Struik, 1986; Monger and Berg, 2002). Within central BC, the Barkerville terrane represents the westernmost component within the Omineca morphogeological belt of the Canadian Cordillera (Figure 7-1).

The Omineca Belt, relative to the more easterly Foreland Belt, is characterized by elevated metamorphic grades, Paleozoic through early Tertiary granitoid intrusions, and protracted polyphase deformation beginning by the Middle Jurassic (e.g., Monger and Price, 2002) (Figure 7-2). Physiographic domains of the Omineca Belt include the Purcell, Selkirk, Monashee, Cariboo, Omineca, Cassiar, and Selwyn mountains (Monger and Price, 2002). Across the Cariboo Mountains, the Omineca Belt can be described as consisting of the following tectonostratigraphic elements:

1. Neoproterozoic rift-related clastic and minor volcanic rocks deposited on continental basement attenuated during break-up of the supercontinent Rodinia (e.g., Monger and Price, 2002; Hoffman, 1991) (basal Barkerville and Cariboo terrane sequences);

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2. Paleozoic peri-cratonic off-shelf siliciclastic rocks, with lesser volcanic, volcaniclastic, and carbonate facies rocks (characteristic Barkerville terrane sequences) (e.g., Struik 1988; Ferri and Schiarizza, 2003);

3. More proximal Paleozoic platformal carbonate facies and siliciclastic rocks (characteristic Cariboo terrane sequences) (e.g., Ferri and Schiarizza, 2003);

4. Large-scale klippe including Late Paleozoic mafic volcanic rocks, ultramafic to mafic intrusive rocks, and deep sea pelagic sedimentary rocks often interpreted as representing a partial ophiolite sequence (Slide Mountain terrane) (e.g., Struik, 1988; Nelson, 1993).

Proximal and off-shelf sequences of the Cariboo and Barkerville terranes are interpreted to have been deposited on and adjacent to the continental margin of ancestral North America (Laurentia). This idea is supported by deep-crustal geophysical data collected through the National Lithoprobe Geoscience Project (Monger and Price, 2002; Cook, 1995) (Figure 7-3), and by locally exhumed windows of Paleoproterozoic continental basement of North American affinity occurring within the Omineca Belt of south-central BC (e.g., the Monashee core complex) (Monger and Berg, 2002).

The metamorphism and magmatism that characterize the Omineca Belt are superimposed across the interface between peri-autochthonous terranes (e.g., Barkerville, Kootenay) and allochthonous terranes of the more westerly Intermontane Belt. The boundary between the two belts can thus be placed somewhat arbitrarily, unless coincident with a major fault (Monger and Price, 2003). Within the Cariboo terrane, the Omineca-Intermontane Belt boundary is coincident with the Barkerville-Quesnellia terrane boundary along the Jurassic aged Eureka thrust (e.g., Struik, 1988; Schiarizza and Ferri, 2003; Ferri and Schiarizza, 2006). Figure 7-4, modified from Struik (1988), details the inferred tectonic architecture across the Omineca Belt in the Cariboo Gold District.

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Figure 7-1: BCGS bedrock geology of the Cariboo Gold Project area

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(A) Approximate location of the Cariboo Gold Project indicated by the star

(B) Sg - sub-greenschist facies; G - greenschist facies; A - amphibolite facies; B - Blueschist facies (dots); Gr - granitic rocks

 

 Figure 7-2: A) Morphogeological belts of the Canadian Cordillera with the northern (N) and southern (S) Lithoprobe transects; B) Simplified map of the distribution of granitic rocks and regional metamorphic grade (Monger and Price, 2002)

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Figure 7-3: Lithospheric-scale cross-section of the southern Cordilleran Lithoprobe transect

(Monger and Price, 2002)

The Cariboo terrane represents the easternmost component of the Omineca Belt within the Cariboo district; its boundary with the Foreland Belt coincides with the eastern limit of the Cariboo Mountains at the Rocky Mountain Trench. The Cariboo terrane is juxtaposed atop the Barkerville terrane along the E-dipping Pleasant Valley Thrust. The age of formation of the thrust must post- date the youngest rocks within the Barkerville and Cariboo terranes, which fossil age constraints place within the Lower Permian (Struik, 1986; 1988). While stratigraphic similarities certainly exist between sections of the Barkerville and Cariboo terranes (e.g., Monger and Berg, 1984; Struik, 1986) the more carbonate-rich stratigraphy of the Cariboo suggests a setting proximal to the Laurentian margin, and it is commonly classified as a sub-terrane of the more northerly Cassiar (Struik, 1986; Ferri and Schiarizza, 2006). Significant (≥500 km) relative-northward Cretaceous through Eocene translation of the Cassiar terrane along the Northern Rocky Mountain - Tintina fault system is believed to disperse and step westward at the northern limits of the Cariboo mountains. The more southerly accommodation of this translation is believed to have occurred along the intra-Omineca Matthew and McLeod Lake faults, with comparatively minor displacements experienced along the Rocky Mountain Trench (Gabrielse et al., 2006).

The allochthonous Quesnel terrane, or Quesnellia, consists primarily of Middle Triassic to Lower Jurassic sedimentary, volcanic, and intrusive rocks formed in an island arc - arc-marginal basin setting (Struik, 1988; Panteleyev et al., 1996). These rocks represent the easternmost component of the Intermontane Belt and were emplaced above the Barkerville terrane along the east-vergent Eureka Thrust during the Early to Middle Jurassic (e.g., Schiarizza and Ferri, 2003). The thrust itself was folded not long after its formation (Struik, 1988; Schiarizza and Ferri, 2003), and is marked by lenses of variably sheared mafic and serpentinized ultramafic rocks collectively described as the Crooked Amphibolite (Struik, 1988; Schiarizza and Ferri, 2003; Ferri and Schiarizza, 2006). The Crooked Amphibolite represents an ophiolitic sliver (e.g., Pantaleyev et al., 1996), and is commonly viewed as a correlative of a potential root to the shallowly emplaced Slide Mountain terrane (Pantaleyev et al., 1996, Struik, 1986; Ash, 2001; Ray et al., 2001; Ferri and Schiarizza, 2006). Quesnel terrane accretion, perhaps co-eval with the emplacement of the Slide Mountain terrane, has been linked with the development of the earliest recognizable phases of deformation and accompanying regional metamorphism within the Cariboo and Barkerville terranes (Ferri and Schiarizza, 2003). Metamorphic cooling ages of 174+\- 4 Ma obtained from U-Pb dating of metamorphic sphene from the Quesnel Lake area (Mortensen et al., 1987) constrain peak metamorphism to the Middle Jurassic.

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The Slide Mountain terrane structurally overlies both the Cariboo and Barkerville terranes along the sub-horizontal, broadly warped and locally folded Pundata Thrust (Struik, 1986). In the Wells- Barkerville area, the Slide Mountain klippe consists of Lower-Mississippian to Lower Permian meta- basalt and chert of the Antler Formation (e.g., Schiarizza and Ferri, 2002). The structural relationship between the Pleasant Valley and Pundata thrusts seems to suggest that the latter post-dates the former and that, therefore, Slide Mountain emplacement post-dates Cariboo-Barkerville terrane amalgamation (Struik 1986, 1988). However, Schiarizza and Ferri (2003) note that it is in fact unclear whether the Pleasant Valley thrust cuts up-section through the Pundata to affect Antler Formation rocks of the Slide Mountain terrane.

Smaller-scale klippen of amphibolite facies metabasaltic and metasedimentary rocks of uncertain terrane affiliation overlie lower greenschist facies rocks of the Barkerville terrane at both Mount Tom and Island Mountain (Struik, 1988; Ferri and Schiarizza, 2006).

 

Figure 7-4: Tectonic architecture of the Cariboo Gold District

Modified from Struik (1986)

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7.2.1. Snowshoe Group Stratigraphy

Siliciclastic and carbonate sequences, volcanic and volcaniclastic rocks of the Barkerville terrane collectively comprise the Snowshoe Group, a singular formal unit proposed by Struik (1986). Stratigraphic subdivisions of the Snowshoe Group proposed by Struik (1986) were qualified as "informal", given uncertainties regarding relative stratigraphic order. A final re-interpretation, as presented in Ferri and Schiarizza (2006) goes hand in hand with a new model for the fundamental structural architecture within the Barkerville terrane allowing for large-scale structural repetitions of a simplified stratigraphic sequence. See Struik (1988) for further discussion of earlier stratigraphic interpretations across the Barkerville and Cariboo terranes. The simplified stratigraphy of Ferri and Schiarizza (2006) divides the Snowshoe Group into three major successions, from oldest to youngest: the Downey, Harveys Ridge and Goose Peak successions (Figure 7-5).

 

Figure 7-5: Stratigraphic interpretations of the Snowshoe Group

Modified from Ferri and Scharizza (2006)

The revised Downey succession of Ferri and Schiarizza (2006) outcrops within two separate belts in the Barkerville terrane. An eastern belt corresponds to the original Downy succession of Struik (1988); a western belt corresponds to and includes the Tregillus clastic rocks, Kee Khan marble, Keithley, and Ramos successions as defined by Struik (1988). Siliciclastic rocks within the Downey succession of Ferri and Schiarizza (2006) consist of green-grey micaceous to feldspathic quartzite and phyllite or schist, depending on metamorphic grade. Ferri and Schiarizza retain the name 'Keithley Quartzite' to describe a localized marker orthoquartzite occurring near the top of the sequence. The Downey succession commonly includes relatively thick and discontinuous carbonate units, including the Kee Khan marble of Struik (1988), which are found most often in association with alkali mafic metavolcanic and volcaniclastic rocks (e.g., Mt. Barker Volcanics). Metavolcanic rocks range from thin horizons of chloritic phyllite in the Wells-Barkerville area, to thick, regional-scale exposures of chlorite±actinolite phyllite and schist north of Cariboo Lake (Allan et. al., 2017). Ferri and Schiarizza (2006) constrain the depositional age range for the Downey succession to Late Proterozoic through Early Cambrian. The geochemical nature of Downey volcanic rocks and the immature nature of its siliciclastic sequences are consistent with deposition in a continental rift environment (Ferri and Schiarizza, 2006). Depositional onset is consistent with the timing of Rodinia break-up (e.g., Hoffman, 1991).

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The revised Harveys Ridge succession of Ferri and Schiarizza (2006) includes rocks grouped by Struik (1988) into the separate Harveys Ridge and Hardscrabble Mountain successions. The sequence consists predominantly of dark grey to black carbonaceous and locally pyritic siltstone to phyllite and variably carbonaceous dark to pale grey quartzite. The term 'Hardscrabble facies' is still employed to describe the finer grained rocks in the succession, though facies changes between carbonaceous siltstones and quartzites occur both in section and laterally. The Harveys ridge succession also includes intervals of dark grey to black (carbonaceous) limestone and minor mafic metavolcanic rocks. The Agnes Conglomerate of Struik (1988) forms discontinuous lenses at the uppermost levels of the succession. The Bralco Limestone of Struik (1988) is found at the base of the succession but is believed to occur only within its eastern exposures. Rocks of the Harveys Ridge succession are believed to be in sharp contact with rocks of the underlying Downey, though Harveys Ridge is transitional into the overlying Goose Peak succession, grading from carbonaceous to clean quartzites in its upper reaches.

The Goose Peak succession of Ferri and Schiarizza (2006) consists predominantly of light grey to grey-green quartzite to feldspathic quartzite with lesser interbedded dark grey phyllite and siltstone. The redefined sequence includes both the Goose Peak and Eaglesnest successions of Struik (1988).

Ferri and Schiarizza (2006) constrain the Harveys Ridge and Goose Peak successions as Early Cambrian or younger, based on correlations with similar units within the Cariboo terrane to the east. Lower Permian conodont ages are determined for the Sugar Limestone, which unconformably overlies Hardscrabble facies rocks at Sugar Creek on Hardscrabble Mountain (Struik, 1988). While the upper age limits of the Harvey's Ridge and Goose Peak successions are otherwise poorly constrained, the age gap represented by the unconformity at the base of the Sugar Limestone may be quite profound (Ferri and O'Brein, 2002).

Snowshoe group rocks are locally intruded by dikes and sills of varying composition and relative timing of emplacement (e.g., Struik 1988).

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In tandem with the revised Snowshoe Group stratigraphy, Ferri and Schiarizza (2006) present a model within which Snowshoe Group rocks, along with the overriding Eureka Thrust, are folded into a terrane-scale SW-vergent nappe (Figure 7-5). The nappe is overridden in the NE by the Cariboo terrane along the Pleasant Valley Thrust, beneath which Downey succession rocks are interpreted to represent the core of an early recumbent anticline. The nappe itself is then subjected to another phase of upright folding about a horizontal axis to produce a broad antiform with the youngest Snowshoe group rocks of the Goose Peak succession exposed at its core. The broad antiform, known as the Lightning Creek Anticlinorium, was recognized by Struik (1988) as a domain across which orogenic vergence transitions from NE to SW. In a transect along the Barkerville Highway (BC 26) the domain is characterized by predominantly subhorizontal regional foliation. Further south, i.e., in the Yanks Peak area north of Cariboo Lake, the domain is characterized by tight upright folds.

 

Note: Section line approximately equivalent to a transect along the Barkerville Highway (BC 26). The approximate location of Wells is indicated by the star.  

Figure 7-6: Barkerville terrane nappe model

Modified from Ferri and Schiarizza (2006)

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7.2.2. Metamorphism

All known gold mineralization within the Barkerville trend is hosted in rocks metamorphosed to lower-greenschist facies (sub-biotite isograd). The principal metamorphic minerals largely depend on the protolith but generally include sericite, chlorite, quartz, and iron-carbonate. A regional S1 foliation is defined by the alignment of metamorphic micas, suggesting that peak metamorphic temperature coincided with the D1 deformation with possible overprinting during D2 (Struik, 1988). Peak metamorphism is thought to have occurred at approximately 174±4 Ma, based on a U-Pb age for metamorphic titanite (sphene) collected near Quesnel Lake (Mortensen et al., 1987). Andrew et al. (1983) reported a similar K-Ar whole-rock age of 179±8 Ma for phyllite at the Cariboo Gold Quartz Mine. However, more recent dating by Rhys et al. (2009) constrained the age of the metamorphism at Cariboo Gold Quartz and Bonanza Ledge Mines between 146.6±1.1 and 151.5±0.8 Ma, which is significantly closer to the age of mineralization.

Amphibolite-facies rocks are found within a klippe atop Island Mountain but are not associated with any significant mineralization and their origin is not well understood. Rocks within the klippe at Island Mountain include both amphibolite and garnet-mica (white mica ± biotite) schist. They have been postulated as correlative with the Slide Mountain terrane and/or Crooked Amphibolite but may alternatively represent more deeply rooted rocks of Barkerville terrane affinity (e.g., Schiarizza and Ferri, 2003). Amphibolite-facies rocks are also found at the western margin of the Barkerville terrane, where Snowshoe Group rocks consist of garnet-biotite schists and micaceous quartzites (Moynihan & Logan, 2009; Struik et al., 1992).

7.3. Property Geology

Detailed surface mapping conducted at a 1:2,000 scale and the collection of high-density structural data was completed within the core of the Cariboo Gold Project area covering the Island Mountain, Cow Mountain, Barkerville Mountain, and Mount Proserpine prospect areas during the 2018-2019 field seasons. The following synthesis is based largely on that work. Culminating map and cross-section products are presented in Figure 7-13 and Figure 7-14 at the end of this section.

Snowshoe Group rocks within the Cariboo Gold Project consists of an internally deformed sequence of siliciclastic, carbonate, and lesser volcaniclastic rocks that correspond with both the Downey and Harveys Ridge (including Hardscrabble facies) successions of Ferri and Schiarizza (2006). Historical workings in the Cariboo Gold District along with active brownfields exploration of approximately 13 km in strike length define a strike-parallel belt of lode gold deposits hereafter and historically referred to as the Barkerville trend. Within the Barkerville trend, Snowshoe Group rocks are deformed within a close to tightly folded northwest-southeast striking and northeast-dipping tectonostratigraphic sequence regionally metamorphosed to greenschist facies and locally disrupted by strike-parallel shear structures of varying thickness and undetermined offset (e.g., BC Vein). Given the consistency of low metamorphic grades within deposit hosting rocks of the Cariboo Gold Project, all Snowshoe Group lithologies are referenced using protolith terminology in both core logging and surface mapping. These pre-established protocols will be followed herein.

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Each of the vein-related deposits within the Cariboo Gold Project (Mosquito Creek, Shaft, Valley, Cow Mountain, Lowhee, and KL) are hosted in Snowshoe Group rocks within the hanging-wall to the BC Vein shear structure. A large-scale (ca. 300 m wavelength) D2 fold pair, consisting of the Mosquito Creek antiform and Barkerville synform, is exposed at different structural levels across Island Mountain, Cow Mountain, and Barkerville Mountain drill areas. Most of the diamond drilling at the Cariboo Gold Project takes place within the shared overturned limb of the Mosquito Creek- Barkerville antiform-synform pair. Despite complexities of finer-scale structural repetition and lateral facies changes, the tectonostratigraphy in this shared overturned limb can be described in terms of a simplified five-member sequence (Figure 7-7) that can be applied across the Island Mountain, Cow Mountain, and Barkerville Mountain drill areas. From top to bottom (oldest to youngest) this sequence includes:

1. Calcareous facies rocks including limestone (LST), characteristically chloritic and effervescent volcaniclastic rocks with varying degrees of intermixed carbonates classified within the Project as calcareous mafic volcaniclastic rocks (CLMV), and lesser occurrences of dominantly sericitic to weakly chloritic calcareous siltstones (CLSI).

2. Transitional calcareous siliciclastic facies rocks including dominantly sericitic to locally chloritic and less commonly fuchsite-bearing calcareous sandstone (CLSS) and sericitic siltstone (SI).

3. A sandstone dominant facies characterized by generally weakly carbonaceous pale to medium-grey, fine to locally coarse-grained, quartz-dominant to sub-arkosic sandstone (SS) with varying scales of intercalated carbonaceous siltstone (CSI) horizons (interlaminations to map-scale interbeds) and less common discontinuous lenses of quartz to locally polymictic quartz-plagioclase-lithic pebble conglomerate (CGL).

4. A laterally extensive siltstone facies generally characterized by iron-carbonate porphyroblastic sericitic to locally weakly chloritic siltstone (SI).

5. A carbonaceous siltstone facies correlative to the Hardscrabble facies of Ferri and Schiarizza (2006) and characterized by moderate to strongly carbonaceous siltstone (CSI) with locally characteristic euhedral diagenetic pyrite and variable intercalations of very fine to fine-grained carbonaceous sandstone.

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The highest density and largest scale veins at the Cariboo Gold Project are hosted within the rheologically favourable central sandstone facies, sometimes referred to as the "Target Sandstone". It should be noted that rocks of both the sericitic siltstone and carbonaceous siltstone facies gradually coarsen moving laterally to the southeast, respectively correlating with micaceous sandstone and carbonaceous sandstone dominant facies in the Mount Proserpine area.

 

Note that the sequence, presented as commonly drilled, is overturned.

Figure 7-7: Simplified BC Hanging-wall tectonostratigraphy for the Island, Cow, and

Barkerville Mountain drill areas

Photographic examples of select lithologies encountered at the Cariboo Gold Project are presented in Figure 7-8. More detailed tectonostratigraphic facies models prepared by Harbort (2017) for Island Mountain - Cow Mountain and Barkerville Mountain sequences are presented (likewise overturned) in Figure 7-9 and Figure 7-10, respectively. Specific details of these models will not be discussed herein.

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a) carbonaceous siltstone; b) interlaminated carbonaceous siltstone and fine-grained sandstone;

c) coarse-grained sandstone; d) calcareous mafic volcaniclastic; e) calcareous siltstone; f) micritic limestone

Figure 7-8: Select rock-types observed on the Cariboo Gold Project

(Barkerville Gold Mines, 2018)

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Figure 7-9: Detailed tectonostratigraphic facies model for Island and Cow Mountains

(Harbort, 2017)

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Figure 7-10: Detailed tectonostratigraphic facies model for Barkerville Mountain

(Harbort, 2017)

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Figure 7-11: Geologic map of the core Cariboo Gold Project Area; corresponding sections presented below

(Shaw and Prince, 2019)

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a) Island Mountain sections; b) Cow Mountain sections; c) Barkerville Mountain sections; d) Mount Proserpine sections

Figure 7-12: Vertical strike-perpendicular (left) and down-plunge strike-parallel (right) cross-sections for the core Cariboo Gold Project area

(Shaw and Prince, 2019)

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7.4. Structural Geology

A minimum of four phases of deformation are recognized within the Cariboo Gold Project area, resulting in a complex array of intersecting and cross-cutting deformational fabrics (Figure 7-13).

 

Figure 7-13: Relative orientation of variable structures arising from polyphase deformation

within the Wells-Barkerville area

(Shaw, 2018)

7.4.1. Deformation 1

The earliest recognizable phase of deformation (D1) in the Cariboo Gold District is best evidenced by the presence of a penetrative slaty to phyllitic cleavage (S1) developed axial planar ("AXPL") to rarely observed transpositional folds (F1). The S1 foliation is the generally the dominant fabric throughout the area and is predominantly defined by phyllosilicate minerals (sericite and chlorite). F1 folds are rarely observed, expressed as highly asymmetric and isoclinal isolated hinges of rootless folds (Figure 7-14a). The D1 event is commonly attributed to emplacement of the Slide Mountain allochthon and is believed to be transitional into D2.

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7.4.2. Deformation 2

A secondary phase of deformation (D2) accommodated northeast-southwest shortening with the development of close to locally isoclinal F2 folds moderately inclined with vergence toward the SW in the Barkerville trend. Folding was accompanied by the development of a disjunctive to locally phyllitic axial planar crenulation cleavage (S2) (Figure 7-14b) striking west-northwest with an average dip ~50° to the northeast within the Barkerville trend. A well-developed S1-S2 intersection lineation (Figure 7-14c) approximates the F2 axis. The S2 foliation becomes more penetrative where proximal to F2 hinge zones, making it difficult to discern between S1 and S2 foliations locally. Rod-shaped L-tectonites developed under uniaxial strain (Figure 7-14d) are also observed within F2 hinge zones and are particularly well-formed within the carbonaceous siltstone facies. The long axes of replacement mineralization at Mosquito Creek and Island Mountain are parallel to these lineations, within the hinge zones and parallel to the axes of F2 folds.

This second phase of deformation is likely related to the progressive collision of the Quesnel terrane. The final phase of northeast-southwest shortening (D3 of Ferri and Schiarizza, 2003) is characterized by the local development of a steeply dipping S2-strike parallel, disjunctive fracture set within the Barkerville trend and is grouped within the D2 event at the Cariboo Gold Project.

7.4.3. Deformation 3

A tertiary phase of deformation (D3) accommodated strike-parallel (northwest-southeast) shortening with the development of gentle F3 folds with a generally disjunctive sub-vertical axial planar cleavage (S3). The geometry, scale, and deformation mechanics involved with the formation of F3 folds are significant contributors to structural control and distribution of vein-hosted Au-mineralization within the Barkerville trend. With continued shortening under more brittle crustal conditions, local extension in the hinge zones of F3 antiforms resulted in the opening of S3-parallel Mode 1 fractures. The primary Au-bearing vein systems in the region are classified as axial planar because they parallel the S3 disjunctive cleavage and are believed to have exploited and/or contributed to the progressive opening of these fracture systems.

F3 folds are observable at the hand sample and outcrop scale but can also reach wavelengths exceeding 1km (Figure 7-14e,f and Figure 7-15). The geometry of the larger-scale F3 folding is best recognized by changing dip angles through S3 cleavage fanning, folding of the L21 intersection lineation, and by deflections in S1 strike (Shaw and Prince, 2019).

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a) F1 isoclinal fold hinges attributed to remnant transposed layering during D1; b) F2 folds with weakly developed S2 foliations AXPL to folds; c) L21 intersection lineation; d) rod-shaped L- tectonite fold hinge structure of F2 fold axis; e) Open gentle F3 folds with weakly developed spaced AXPL cleavage; f) Weakly developed F3 crenulation cleavage.

Figure 7-14: Deformation phases and associated fabrics on the Cariboo Gold Project

(Barkerville Gold Mines, 2018)

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Figure 7-15: To scale schematic strike parallel Barkerville Mountain section illustrating the geometries of

first and second order F3 folds

(Shaw and Prince 2019)

7.4.4. Deformation 4

A final brittle phase of deformation (D4) is recognized by the development of both S3-parallel and N-S trending faults with constrained relative surface offsets (most commonly dextral) locally exceeding 1,000 m (e.g., Grouse Creek and Williams Creek faults). The S3-parallel D4 faults may be post-orogenic relaxation structures reactivating and inverting D3 reverse faults, or simply normal faults exploiting zones of high density S3 fractures. The N-S striking D4 faults may likewise form as normal structures linking pre-existing fracture systems but are locally characterized by dominant components of dextral strike-slip. This latter observation suggests either a syn-relaxation component of dextral transtension, or an independent, post-relaxation phase of dextral transpression.

The presence of brecciated mineralized quartz vein material within D4 structures has been observed in drill core (Figure 7-15a) and was reported by Skerl (1948), indicating that at least some of the movement on D4 faults must postdate mineralization. D4 structures (e.g., Lowhee fault) are also observed to cross-cut and offset mineralized corridors. Many of the best-mineralized prospects within the Barkerville Trend are formed adjacent to the D4 faults, e.g., Shaft Zone, Valley Zone, Lowhee Zone. The observed spatial association between vein zones and major D4 structures may simply reflect the preferential formation of each within zones of high S3 fracture density.

7.5. Mineralization and Alteration

Gold-bearing veins and replacement-style mineral deposits in the Cariboo Gold Project are inter- related but can be subdivided into five principal types:

1. Fault-fill shear veins in fractured early-phase quartz lenses within carbonaceous mud and silt- rich, foliation sub-parallel (northwest-southeast trending) shear zones (BC Vein-style).

2. Sub-vertical, foliation-perpendicular (northeast-southwest trending) so-called axial-planar ("AXPL") veins structurally controlled by late-stage extensional fractures preferentially formed in rheologically brittle sandstone units.

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3. Foliation-oblique so-called extensional ("EXT") veins characterized by greatest mineral potential where in association with AXPL vein systems.

4. Sulphide-replacement bodies structurally controlled by and elongate parallel to the hinges of F2 folds within calcareous sandstones and limestones (Mosquito Creek-style).

5. Fault bound sulphide-replacement bodies within calcareous siltstones (Bonanza Ledge- style).

Photographic examples of varying mineralization styles are presented in Figure 7-16 and Figure 7-17

7.5.1. Vein-related Mineralization

Axial planar quartz veins are the primary source of vein hosted Au within the Barkerville trend, defining the fundamental architecture of the Mosquito Creek, Shaft, Valley, Cow Mountain, Lowhee, and KL deposits. Individual veins range in width from millimeters to several meters. Where density is high, AXPL veins form mineralized corridors extending for up to a few hundred meters along strike and down-dip within rheologically prospective units. Though often advantageous to model and describe AXPL veins as tabular bodies, their morphologies are generally more complex. They are often observed to pinch and swell in thickness with undulatory margins, and commonly network with (and/or refracture and cross-cut) earlier extensional ("EXT") vein systems. Au-bearing EXT veins and Au-rich sulphide replacement bodies are intimately related to AXPL vein systems, both spatially and presumably in terms of mineralizing fluid dynamics.

The composition of both the AXPL and EXT veins is quartz dominant. Lesser iron carbonate usually occurs as vein-marginal or clustered intergrowths and vein-hosted sericite is also common. Pyrite is the most prevalent sulphide mineral across all deposits, with vein content ranging from trace amounts to tens of percent (Figure 7-16b). Pyrite content appears to have a direct association with gold content within veins. Galena (Figure 7-16c) and arsenopyrite are also common vein- hosted sulphides, occurring in individual veins in amounts up to several percent and locally exceeding pyrite content. Additional sulphide minerals generally occurring in trace amounts include pyrrhotite, sphalerite (Figure 7-16d), chalcopyrite and (rarely) argentite. Pb-Ag-Bi sulphosalts including cosalite are found in trace amounts within veins and generally have a close association with elevated Au grades (Figure 7-16g). Scheelite is also locally observed, generally as secondary fill within quartz vein vugs.

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Veining can be subdivided into at least two temporally separate events. Both events are characterized by a quartz - iron carbonate ± sericite hydrothermal fluid, but they differ greatly in their Au potential. Early veins may host sulphides (mostly Py, Po, Gal, Sph ± Cpy) but tend to be barren of Au except were mineralized by later fluids. The later, Au bearing veins tend to be more sulphide rich (mostly Py, Aspy, Gal, Sph ± Arg ± Cos) and cross-cut earlier veining (Figure 7-16e). In these cases, sulphides may be observed filling void space or occasionally replacing the iron- carbonate within the early veins (Figure 7-16f), a reaction which is known to precipitate Au from solution:

FeCO3 + Au(HS)2- = FeS2 + CO2 + H2 O + Au (Zhu et al., 2011)

7.5.2. Replacement-style Mineralization

Replacement mineralization (Figure 7-16h) in calcareous siliciclastic and carbonate facies rocks varies from fine to coarsely crystalline pyrite with rare arsenopyrite. This style of mineralization is thought to be the result of a reaction between the slightly acidic, Au bearing hydrothermal fluid and carbonate minerals within the host rocks which results in the simultaneous dissolution of carbonate and precipitation of gold-rich sulphide. Bonanza Ledge-style replacement mineralization is hosted in calcareous siltstone and consists entirely of fine-grained pyrite mineralized material' . Sulphide content in replacement mineralized material' types is generally high, ranging from 10% (replacing thin calcareous bands) to massive (replacing entire beds). Mosquito Creek-style replacement bodies in limestones and calcareous sands contain the most consistently high Au grades in the Cariboo Gold Project. These replacement bodies are thought to be both spatially and temporally related to mineralized AXPL vein systems (Figure 7-17b).

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a) BC Vein-style fault-fill (breccia annealing) mineralization; b) Pyrite in quartz vein; c) Galena in quartz vein; d) Sphalerite in quartz vein; e) Pyrite deposition along the centerline of veins in pre-existing inter-crystal void space; f) Pyrite replacement of iron-carbonate; g) Cosalite in quartz vein; h) Sulphide replacement mineralization.

Figure 7-16: Mineralization styles observed on the Cariboo Gold Project

(Barkerville Gold Mines, 2018)

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a) Vertical S3 structures bounding sericite-Fe-carbonate alteration; b) Vertical AXPL veins acting as multiple feeders to sulphide replacement body; c) Diffuse AXPL vein boundary with silica bleeding into replacement band; d) Outgrowths of pyrite from vein into carbonate replacement bands; e) Semi-vertical AXPL vein cutting across boudinaged layer-parallel vein; f) Vertical AXPL vein cross-cutting oblique-dipping shear veins.

 Figure 7-17: Structural controls on the mineralization of the Cariboo Gold Project
(Barkerville Gold Mines, 2018)

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7.5.3. Vein-related Alteration

A schematic illustrating the relationships between mineralized quartz veins and their associated alteration halos as observed within the Cariboo Gold Project is presented in Figure 7-18. Large veins tend to exhibit a strong silica alteration halo with associated vein halo pyrite (Figure 7-19a). Stepping outward, moderate silicification persists, accompanied by moderate sericite, with pyrite present only in trace amounts (Figure 7-19b). A widespread moderate silica envelope with patchy but intense silica closer to the veins is observed within high density vein corridors. Moving further from the fluid source, silicification becomes weak and sericite is present as the dominant alteration mineral (Figure 7-19). The distal-most alteration halo is characterized by iron carbonate and lesser sericite (Figure 7-19d). Clay minerals (e.g., illite, smectite) and chlorite may be presented as vein forming minerals outside of mineralized corridors (Figure 7-19e, f).

 

Figure 7-18: Schematic vertical section (looking NE) of vein alteration observed at the Cariboo Gold Project

(Barkerville Gold Mines, 2018)

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a) Intense silica alteration with boxwork textures after pyrite in vein margin; b) Intense silica alteration with trace pyrite adjacent to vein margin; c) Moderate sericite alteration distal from vein array; d) Iron carbonate alteration distal from vein array; e) Late argillic alteration in vertical AXPL vein; f) Late chlorite alteration in vertical AXPL vein

Figure 7-19: Vein-related alteration styles at the Cariboo Gold Project

(Barkerville Gold Mines, 2018)

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7.6. Age of Mineralization

Age of mineralization in the Cariboo Gold District is currently constrained to an approximate 20 m.y. window straddling the Jurassic-Cretaceous boundary. 40Ar-39Ar dates obtained from white mica in Au-bearing veins and replacement bodies by Rhys et al. (2009), Mortensen et. al. (2011) and Allen et al. (2017) are presented in Figure 7-19)

 

Figure 7-20: Compilation plot of 39Ar/40Ar age data from white mica in veins and replacement bodies in the

Cariboo Gold District

Green blocks from Rhys et al. (2009); blue blocks from Mortenson et al. (2011); red blocks from Allen et al. (2017)

Modified from Mortensen et. al. (2011).

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8. Deposit Types

The Cariboo Gold Project shares many characteristics with an orogenic gold deposit model (Chapman and Mortensen, 2016). This class of deposit is typified by deformed and metamorphosed mid-crustal blocks and major structures, inherent products of orogenesis (Figure 8-1). Orogenic gold deposits span the entire breadth of the province of British Columbia, occurring predominantly within two main belts. The westerly belt is associated with accreted pericratonic terranes linked to Late Cretaceous to Paleocene movement on crustal-scale dextral strike-slip fault systems along the western margin of the Stikine terrane, and eastern Coast Belt (e.g., Bralorne-Pioneer, Atlin, Cassiar). The easterly belt is crudely cospatial with the Jurassic to Cretaceous accretion of the Intermontane terranes and autochthonous strata of the ancestral North American (e.g., Cariboo, Sheep Creek) (Allan, 2017). Orogenic deposits have significant economic importance, as they are known to host auriferous mineralization as high-grade vein deposits, low-grade bulk-tonnage lode deposits, and are intimately linked with substantial placer accumulations (Goldfarb et al., 2001; 2005).

 

Figure 8-1: Tectonic settings of gold-rich epigenetic mineral deposits

Orogenic gold deposits are emplaced during compressional to transpressional regimes and throughout

much of the upper crust, in deformed accretionary belts adjacent to continental magmatic arcs.

(Modified after Groves et al. 1998)

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The majority of orogenic gold deposits in metamorphic terranes, such as the Barkerville terrane, are found adjacent to first-order, deep-crustal fault zones, which show complex structural histories and may extend along strike for hundreds of kilometres with widths of as much as a few thousand metres (Goldfarb et al., 2005). Most orogenic gold deposits occur in greenschist facies rocks, but significant orebodies can be present in both lower and higher-grade rocks (Phillips and Powell, 2010). Hydrothermal fluids are generated from metamorphic dehydration reactions along deep- crustal fault zones, driven by episodes of major pressure fluctuations during seismic events (Cox et al., 2005). Gold mineralization is associated with orogenic silica-carbonate-sericite-pyrite stable fluids moving along secondary permeability controlled by metamorphic fabrics, vein arrays, faults, lithologic contacts, and rheological contrasts (Groves et al., 2003). Gold deposits form as simple to complex networks of gold-bearing, laminated quartz-carbonate shear veins along second- and third-order faults, particularly at jogs or changes in strike along major deformation zones. Mineralization styles vary from stockworks and breccias in shallow, brittle regimes, through laminated crack-seal veins and sigmoidal vein arrays in brittle-ductile crustal regions, to replacement- and disseminated-type orebodies in deeper, ductile environments (Groves et al., 2003). Mineralization is syn- to late-deformation and typically post-peak metamorphism, and commonly associated with silica-carbonate-sericite-pyrite alteration. Gold is largely confined to the quartz-carbonate vein network, but may also be present in significant amounts within iron-rich sulphidized wall-rock selvages, or within silicified and sulphide-rich replacement zones (Dubé and Gosselin, 2007). One of the key structural factors for gold mineralization emplacement is often a late strike-slip movement event that reactivates earlier-formed structures within the developing orogen (Goldfarb et al., 2001). The following aims to highlight economically significant deposit types within the Cariboo Gold Project.

8.1. Vein Deposits

Inter-related vein systems are the principal source of gold within the Barkerville trend and are a key fluid pathway for sulphide mineralization. Axial planar ("AXPL") quartz veins represent the dominant vein system hosting gold-rich sulphide mineralization for the Mosquito Creek, Shaft, Valley, Cow Mountain, Lowhee, and KL zone deposits. AXPL veins are classified as such since they are believed to have exploited and/or contributed to the progressive opening of axial planar fracture systems in the hinge zones of F3 folds. AXPL veins parallel the sub-vertical F3 axial planar disjunctive cleavage (S3) and are classifiable by a perpendicular relationship with S1 foliation (Figure 8-2).

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Figure 8-2: Model for the formation of vertical AXPL veins in the hinges of F3 folds on the

Cariboo Gold Project

(Harbort, 2017a)

Extensional ("EXT") veins are classified by an orientation oblique to S1-foliation (Figure 8-3). Significant scatter in both drill hole and surface datasets suggests that veins classified as EXT may represent multiple variably oriented S1-oblique sub-populations. At least one population of EXT veins is parallel to the S2 cleavage and suggests veins classified as EXT may have exploited S2 surfaces.

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Figure 8-3: Composite model of the mineralization styles on the Cariboo Gold Project

Illustrating oblique EXT quartz veins (dark red), Massive replacement style in the hinges of F2 folds (orange),
sub vertical AXPL quartz veins along S3 surfaces (light red), D2 related Fault. Shear hosted (BC Vein) and
semi massive replacement (Bonanza Ledge) (modified after Harbort, 2017a).

Veins range in width from millimetres to several metres and are termed vein corridors when highly concentrated over 2 metres ("m") in width and up to hectometers in strike. Vein corridors are planar structures, typified as steeply dipping, striking N020-N050, 100-700 m downdip and extending 100-300 m along strike. The principal aims of exploration and infill drilling programs involve testing the extent and concentrations of AXPL vein corridor deposits, with targeting based in part on proximity to identifiable large-scale F3 hinge zones (Shaw and Prince, 2019).

8.2. Replacement Deposits

Replacement-style gold mineralization contains the most consistently high gold grades in the Cariboo Gold Project and were the main target for the historic underground Mosquito Creek Mine on Island Mountain. Semi-massive replacement style mineralization observed at the historically mined Bonanza Ledge is fault-bounded in the footwall of the BC Vein shear. The replacement deposits observed at Island Mountain and Mosquito Creek are thought to be structurally controlled in the hinges of F2 folds and the formation of L-tectonites and considered contemporaneous with the AXPL veining (Figure 8-4). These rod-like structures which parallel F2 fold axis' act as conduits for hydrothermal fluids which react with the pH buffered calcareous sediments. This reaction simultaneously creates pore space and precipitates gold-rich sulphides.

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Figure 8-4: a) Formation of structural traps in F2 hinges as L-Tectonites; b) Replacement style mineralization

(orange) fed by AXPL quartz veins (yellow)

8.3. Shear Zone Deposits

Steep, orogen-parallel, D2-parallel faults, and damage zones act as fluid pathways for crustal fluids. The BC Vein is a poly-deformed, steeply-dipping, and S1 strike-parallel shear zone of unknown relative offset. The structure is internally characterized by strongly carbonaceous to graphitic siltstone fault breccia, discontinuous pods of brecciated milky white quartz and later stage grey quartz which has, in places, annealed the breccia matrix. Fine-grained pyrite and gold are associated with the annealing late-stage grey quartz. The Wells Shear is interpreted as the offset Cow Mountain equivalent of BC Vein owing to its similar strike, deformational style, and position within tectonostratigraphic sequence. The BC Vein-Wells Shear structure is highly variable in thickness both along strike and down dip. The close geographic association between this structure and the locations of highest density axial planar veining as well as the highest gold grades in both soil and rock geochemical assays is taken to reflect its importance as a fluid pathway at the time of mineralization.

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9. Exploration

For the purposes of this Report, Barkerville Gold Mines Ltd. ("BGM"), as it operated from 2015 to 2020, will be referred to as Osisko Development Corp. ("ODV"). Current ODV management is a merger of the BGM management team that has been in place since 2015 and select Osisko Gold Royalties ("OGR") team members after OGR acquired the Cariboo Gold Project ("the Project") through the acquisition of Barkerville Gold Mines Ltd. on November 21, 2019. The Project was part of the OGR assets that created the Osisko Development Corp. on November 25, 2020.

ODV carried out work on the Cariboo Gold Project yearly from 2015 to 2021. These programs consisted of geologic mapping, surface rock sampling and soil sampling. The field programs typically ran from April to October, depending on the weather, with the soil program occurring towards the middle of that period. Mapping and sampling efforts targeted the northwest and southeast extensions of the known mineralized corridor in the Wells area, as well as a parallel trend, at Mount Burns (Lightning Creek Trend). These prospect areas are displayed in Figure 9-1.

9.1. 2020 and 2021 Purpose and Methodology

9.1.1. Geologic Mapping

Geological mapping was conducted to identify lithologic contacts, define alteration and geochemical signatures, record structural data and collect select rock samples. The scale of mapping was conducted at 1:2000. Mapping of an area was classified as complete when all roads, trails and stream valleys were traversed. Rock samples were taken when significant veining and/or sulphide mineralization occurred. These samples were sent to be fire assayed to provide gold-grade and multi-element data to aid in future exploration programs.

9.1.2. Soil Sampling

Soil sampling was conducted to identify gold-in-soil anomalies, which were then used to target prospective bedrock. Dutch augers were used to taking 500-gram ("g") soil sample from the B soil horizon. If the B horizon was not present, a C horizon sample was taken. If insufficient sample material was available, a no sample ("NS") point was marked and noted. Soil samples were collected every 50 metres ("m") along north-south oriented lines spaced 200 m apart. The sample lines were oriented to best test for gold mineralization hosted in quartz lenses oriented parallel to stratigraphy and northeast-southwest trending quartz veins noted throughout the Cariboo Gold prospect. At any outcrop or historical working site observed in the field, geologic information was collected, and a rock sample was taken if the material yielded possible mineralization. Soil samples returned with gold ("Au") values in the 90th percentile and above were considered anomalous. Anomalous samples were used to guide further exploration.

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Note: The grey outlines the Cariboo claims boundary. The prospects are broken down by region with its associated name and acronym

Figure 9-1: Illustrates Barkerville's mineral prospects of the Cariboo Region

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9.2. Program Objectives and Results

For Barkerville Gold Mines ("BGM") and previous operators' works prior to 2015 refer to Chapter 6.

9.2.1. 2015-2019 Geochemical and Mapping Programs

From 2015 to 2019, ODV executed a systematic approach with surface mapping and geochemical sampling. From 2015 to 2017, sampling efforts specifically targeted the Barkerville Trend, a major deep-seated shear that trends 60 kilometres ("km") northwest-southeast through the central of the project area, called the Cariboo Break at the time. In 2018 and 2019, the focus shifted to the northwest and southeast extensions of known mineralization around the Wells area within the Barkerville Trend. Further exploration was conducted along the parallel Lightning Creek Trend. A summary of the samples collected from mapping and geochemical sampling is summarized in Table 9-1. Figure 9-2 and Figure 9-3 illustrate the locations of the work programs. Results from these programs generated drill targets for past and current drilling.

Table 9-1: Surface geochemical samples collected on the Cariboo Gold Project 2015-2019

Year Rock Samples (qty) Structural
Stations
(qty)
Soil Samples
(qty)
Grab Select Float Linear Channel Panel
2015 - 25 - - - 111 1,875 -
2016 81 75 1 17 341 50 704 4,928
2017 121 42 - 10 11 - 439 3,775
2018 108 182 25 8 26 4 4,961 6,307
2019 52 139 - 1 - 8 1,291 -
Total 362 463 26 36 378 173 9,270 15,010

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Figure 9-2: Cariboo Regional mapping and rock sampling overview from 2015 to 2021

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Figure 9-3: Cariboo Regional soil sampling overview from 2016 to 2021

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9.2.2. 2016 Magnetic and VTEM Survey Program

In 2016, a helicopter-borne Magnetic and VTEM Survey was conducted by Geotech Ltd. over ODV's Cariboo Gold Project. The principle geophysical sensors used were a VTEM Plus system and a horizontal magnetic gradiometer with two caesium sensors. The sensors were tested daily to verify data integrity. The survey was flown in southwest to northeast lines spaced 200 m apart. A total of 7,024 line-km of data was acquired. The data was corrected against a base station. The program resulted in 1,308 km2 of geophysical data that confirmed a northwest-southeast anomaly associated with magnetic anomalies.

9.2.3. 2020 Geochemical and Mapping Programs

Geological surface mapping took place on the Burns Mountain prospect from June 22 to August 4, 2020. Geochemical surveying coincided with mapping on the Yanks Peak prospect from August 18 to September 10, 2020. The geochemical survey then moved to Burns Mountain from September 10 to 29, 2020. The objective at Yanks Peak prospect was designed to expand upon the results derived from the 2017 and 2018 geochemical survey completed by ODV. The grid at the Burns Mountain prospect was designed to infill a gap in the geochemical grid and expand to the south of Lightning Creek to Chisholm Creek.

The 2020 geochemical sampling program was designed to primarily test for soil geochemical signatures in an area known to host several mineral occurrences which lay within a quartzite dominant lithology. A secondary objective was to collect stratigraphic and structural geologic information with emphasis on structural control and the structural relation to mineralization on the properties. A total of 429 soil samples and seven rock samples were collected on the Burns Mountain prospect; 1,187 soil samples and 56 rock samples were collected on the Yanks Peak prospect in 2020. These results are summarized in Table 9-2.

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The principal aims of the 2020 mapping program were to refine the understanding of local stratigraphy and structure, with emphasis on the structural controls on mineralization. Additionally, another goal of the program was to delineate highly prospective target areas for future brownfields exploration and provide recommendations for targeting methodology. The program consisted of detailed geologic mapping at a 1:2000 scale at the Burns Mountain, Yanks Peak and Cunningham Creek prospects. A total of 43 rock samples were collected at the Burns Mountain prospect, 12 rock samples at the Cunningham Creek prospect and 42 rock samples at the Yanks Peak prospect. The 2020 program collected an additional 3,060 structural measurement at 905- point locations on the Burns Mountain prospect, 1,036 structural measurements at 341-point locations on the Cunningham Creek prospect, and 2,318 structural measurements at 706-point locations on Yanks Peak prospect. The results from the mapping program are summarized in Table 9-2 The anomalous gold-in-soil values along with the data gleaned from the geologic mapping program on these prospects indicated stratigraphy and veining similar to those which are gold-bearing in the Wells-Barkerville area. Exploratory drilling in this area is recommended in the future to test the area's viability.

Table 9-2: 2020 Soil, Rock Samples and Structural Station by Prospect

Prospect Soil
Samples
Grab
Samples
Select
Mineralized
Samples
Panel
Samples
Linear
Samples
Channel
Samples
Structural
Stations
Burns 429 15 32 2 1 - 905
Cunningham - - 12 - - - 341
Yanks Peak 1,187 34 63 - - 1 706
Total 1,616 49 107 2 1 1 1,952

9.2.4. 2021 Geochemical and Mapping Programs

Geological surface mapping took place on the Burns Mountain prospect from June 1 to July 25, 2021, and September 18 to October 3, 2021, and on the Cunningham Creek prospect from August 12 to October 21, 2021. The geochemical survey took place on the Burns Mountain, Cow Mountain, and Mount Agnes prospects from June 26 to July 21, 2021, and July 25 to August 31, 2021.

The primary objective of the 2021 Soil program was to connect the Burns Mountain and Yanks Peak soil sampling grids along the Lightning Creek Trend. This will be the goal of soil sampling programs for the next few years on the Cariboo Gold claim block. A secondary objective was to begin closing the gap in the soil data between Cow Mountain and Burns Prospects, following up on anomalies seen in the eastern portion of Burns Mountain and western portion of Cow Mountain.

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In total, 651 soil samples were collected on the Burns Mountain prospect, 682 on the Mount Agnes prospect and 20 on the Cow Mountain prospect areas. In addition, a total of e rock samples were collected on the Mount Agnes prospect and eight on the Burns Mountain prospect by the geochemical sampling team in 2021. These results are summarized in Table 9-3. The 2021 Geologic mapping programs principal aims were to delineate and provide detailed exploration strategies for greenfield-brownfield exploration targets within both Burns Mountain and Cunningham Creek prospects. The focus of the mapping efforts in the Burns Mountain area was on Mount Nelson and Oregon Gulch. The efforts on Mount Nelson were in following up on geochemical anomalies found in previous years' soil programs. Oregon Gulch has many historic showings that suggest mineralization in a style comparable to what ODV is targeting. On the Cunningham Creek prospect mapping was focused on the historic Cariboo-Hudson Mine and along the trend of it. Detailed geologic mapping was conducted at a 1:2000 scale. A total of 244 rock samples were collected on Burns Mountain, eight rock samples on Mount Agnes, and 97 rock samples on the Cunningham Creek prospects. The 2021 mapping team collected an additional 3,509 structural measurements at 844-point locations on the Burns Mountain prospect, and 1,390 structural measurements at 407-point locations on the Cunningham Creek prospect. These results are summarized in Table 9-3. The anomalous gold-in-soil values along with the data collected from the geologic mapping program on both prospects indicated stratigraphy and veining similar to those which are gold-bearing in the Wells-Barkerville area. Exploratory drilling in this area is recommended in the future to test the area's viability.

Table 9-3: 2021 Soil, Rock Samples and Structural Station by Prospect

Prospect Soil
Samples
Grab
Samples
Select
Mineralized
Samples
Panel
Samples
Linear
Samples
Channel
Samples
Structural
Stations
Agnes 682 1 7 - - - -
Burns 651 105 127 10 1 1 844
Cunningham - 41 51 1 1 3 407
Cow Mountain 20 - - - - - -
Total 1,353 147 185 11 2 1 1,251

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10. Drilling

This chapter focuses mainly on Osisko Development Corp.'s ("ODV") 2020, 2021 and 2022 diamond drilling programs (the "2020 Program", "2021 Program" and "2022 Program") and Barkerville Gold Mines Ltd. ("BGM") 2015 to 2019 diamond drilling programs. Drilling prior to 2015 is summarized in the history chapter (Chapter 6). Meterage summaries by prospect may differ from those reported in previous NI 43-101 reports, as drill holes have been re-assigned to prospects based on the target deposit rather than their collar location.

The objectives for the 2020 and 2021 programs were to test new brownfields targets adjacent to known deposits, infill high-grade vein corridors modelled from the 2019 preliminary economic assessment ("PEA") currently classified as Inferred and explore the depth potential of known deposits. The focus of the on-going "2022 Program" is the infill of a proposed underground bulk- sampling area, the continued category conversion from inferred to indicated status of modeled vein corridors, and the delineation of additional vein corridors. Previous drilling programs are summarized in Chapter 6. Figure 10-1 shows an overview map of the 2015 through 2022 Programs.

From 2015 to 2022, BGM/ODV drilled a total of 2,280 diamond drill holes, totalling 695.08 kilometres ("km") of drill core. While surface data continues to inform the geologic model, diamond drill core is the primary source of geological information for the Project.

The current mineral resource estimate update (the "2022 MRE") presented in Chapter 14, with an effective date of May 19, 2022, includes assay results from up to November 23, 2021. The potential impact on the 2022 MRE of the assay results received after this date is also commented below.

10.1. Drilling Methodology

Drills were aligned using a Suunto compass. The downhole dip and azimuth were surveyed using a REFLEX EZ-TRAC tool or Minnovare's Azimuth Aligner (for a part of the 2021 drilling campaign). Collar locations are determined using a Trimble DGPS. The first survey was usually measured 9 metres ("m") below the casing, and readings were then taken every 30 m downhole. A survey was also taken at the bottom of the hole if the end of hole ("EOH") depth was 15 m or more from the previous test. The instrument was handled by the drilling contractors, and survey information was digitally recorded using IMDEX's IMDEXHUB-IQ, as well as transcribed and provided in paper format to ODV geologists.

At the drill rig, the drill helpers placed core into core boxes and marked off every 3-m drill run using a labeled wooden block. The drill helpers were also responsible for marking orientation information on the core using either the Reflex Act III tool or the DeviCo DeviHead orientation tool. All holes were drilled in NQ diameter unless noted otherwise in this report.

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All drill hole casings collared at an elevation similar to Jack of Clubs Lake were cemented into bedrock. Special consideration was given to the Valley Zone due to the local groundwater conditions, whereby a cementing procedure was deployed to ensure no groundwater would escape the drill hole once plugged: A first hole was drilled through the overburden and cased (HWT size) 6 m to 9 m into competent bedrock. HQ drill rods were then drilled 1 m beyond casing. Once the geologist and drill foreman inspected the rock to ensure the rock was competent bedrock, casing was reamed to the bottom of the hole and cemented with the drill foreman present. A PQ displacement plug was then pushed downhole until cement came up around the casing, leaving it to set. After at least 24 hours, 250 pounds per square inch ("psi") of water pressure was applied to the drill hole. If, during the pressure test, the pressure decreased and water was able to escape the cement, the drill hole was either abandoned or recemented. If no issues were experienced during the pressure test, drilling would then commence, and this process was repeated for any additional holes. Upon completion of the drill hole, a safety plug was placed 24 m past the shoe and the hole cemented. The HQ drill rods were then removed, and a displacement plug was pumped down the hole. One additional batch of cement was then pumped downhole, and a wait time of 45 minutes was observed, ensuring no water was seen exiting the hole.

10.2. Core Logging Procedures

The drill core was transported to ODV's facility in the District of Wells ("Wells") where it was cleaned of drilling additives and mud, and the metres were marked before collecting the data. Recovery for each 3-m drill run was noted. When recovery was less than 2.50 m (>0.5 m of loss), loss was recorded on a separate block as a "lost core interval".

Geotechnical data collection included Rock Quality Designation ("RQD"), Intact Rock Strength ("IRS"), and fracture counts at 1-3 m intervals. Magnetic susceptibility data were not collected because it was concluded that such data are not relevant to the deposit. Downhole orientation lines were connected where possible, and orientation off-set measurements were recorded.

All data (lithology, alteration, mineralization, structures, interval structures, and veins less than and greater than 5 centimetres ["cm"]) were recorded using Datamine DHLogger software. Sample intervals and pertinent information regarding lithology, mineralization and alteration were marked on the core.

After recording the sampling information, drill core samples were cut in half using a diamond- blade table mounted rock saw. Half the sample was bagged and labelled, then packaged for shipment to an assay lab. Numbered security tags were applied to lab shipments for chain of custody requirements. Samples were then shipped to the laboratory of ALS Minerals in North Vancouver, British Columbia, for analysis. The remaining half-core samples are stored on-site in a secured location for future reference.

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The QPs have not identified drilling, sampling, or recovery factors that could materially impact the accuracy and reliability of the results. In the opinion of the QPs, the core logging and sampling procedures used by ODV are consistent with generally accepted industry best practices and are, therefore, adequate for an advanced exploration project.

10.3. 2015 to 2019 Drilling

In 2015, drilling was focused on Barkerville Mountain (Figure 10-6) with 180 holes drilled on the BC Vein and Bonanza Ledge deposit, totalling 35,848.5 m; eight drill holes on the KL Zone totalling 1,675 m, and 12 dill holes on the Barkerville Mountain deposit totalling 3,626.7 m. The 2015 diamond drill program was designed to drill the BC Vein structure at a spacing of 25 m to 50 m to a depth of 250 m from surface, and a spacing of 100 m down to a depth of 450 m below surface (Brousseau et al., 2017).

In 2016, drilling on Barkerville Mountain (Figure 10-6) consisted of 53 holes on the BC Vein and Bonanza Ledge deposit, totalling 8,605.5 m, and 10 holes on the KL Zone deposit, totalling 2,621.18 m. The BC Vein area was drilled to infill high-grade areas at 12.5 m to 25 m spacing (Brousseau et al., 2017) while the KL Zone was drilled to test an 800 m-long gold-in-soil ("Au-in soil") anomaly (Beausoleil and Pelletier, 2018). Cow Mountain drilling produced 233 drill holes on the Cow prospect, and drill holes on the Valley Zone prospect, totalling 31,157.07 m and 1,023.5 m, respectively. The Cow Mountain drilling program (Figure 10-4) was designed to upgrade areas of geological uncertainty as well as constrain the geological model in areas devoid of historical drilling on Cow Mountain. It also focused on confirming historical gold intersections using modern drilling techniques. The 2016 campaign tested depths of approximately 300 m. Drill holes were completed on approximately 50 m centres in selected areas (Beausoleil and Pelletier, 2018). Drilling in the Valley Zone tested the lateral extents of AP veins and refined the stratigraphic model. Results showed denser than expected vein occurrences. As a result, three more rigs were added to the program and collar locations were stepped out to expand the intersected vein corridors (Beausoleil and Pelletier, 2018). On Island Mountain, 33 holes were drilled on the Shaft Zone prospect, and 50 holes on the Mosquito Creek prospect, totalling 11,289.5 m and 16,026.75 m, respectively. Drilling on Island Mountain (Figure 10-2) was conducted in order to better understand the structural and lithological controls on gold mineralization, as well as to test the down-plunge extent of sulphide replacement zones.

In 2017, drilling was again conducted on Barkerville Mountain (BC Vein and Bonanza Ledge, KL Zone, and Barkerville Mountain deposits), Cow Mountain (Cow and Valley Zone deposits), and Island Mountain (Shaft Zone and Mosquito Creek deposits) (Figure 10-6, Figure 10-4, and Figure 10-2, respectively). Barkerville Mountain drilling produced 25 holes at BC Vein, seven at Bonanza Ledge, and one drill hole at KL Zone, totalling 4,412.7 m, 3,388 m, and 530.15 m, respectively. It should be noted that the diamond drill hole ("DDH") on the BC Vein of Barkerville Mountain were drilled for geotechnical purposes only and were therefore not assayed or included in the resource estimate database (Beausoleil and Pelletier, 2018). The 2017 drilling program on Barkerville Mountain explored the Au-in-soil anomaly adjacent to the KL Zone, investigating the 2016 identified targets. Cow Mountain had a total of 17 drill holes at the Cow prospect, and 80 drill holes at the Valley Zone prospect, totalling 6,034.7 m, and 38,872.96 m, respectively. Cow Mountain drilling continued the goals of the 2016 drilling program. Island Mountain had a total of 211 holes at the Shaft Zone prospect, and 44 dill holes at the Mosquito Creek prospect, totalling 93,733.12 m and 13,455.7 m, respectively. Drilling on Island Mountain during 2017 was primarily designed to define the extent of recently discovered vein systems and to discover new vein corridors and sulphide replacement. Early in the program, holes were drilled on 100 m drill centres with dice-five infill patterns concentrated in the Shaft Zone. As the geologic understanding of the controls on mineralization improved, a tighter infill of approximately 25 m spacing began in August to expand known corridors (Beausoleil and Pelletier, 2018).

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In 2018, drilling was conducted on Barkerville Mountain (BC Vein and Bonanza Ledge deposits), Cow Mountain (Cow and Valley Zone deposits), and Island Mountain (Shaft Zone and Mosquito Creek deposits) (Figure 10-6, Figure 10-4, and Figure 10-2, respectively). Barkerville Mountain had a total of ten drill holes on the BC Vein and Bonanza Ledge deposits totalling 1,683.8 m. The aim of the 2018 Program at Barkerville Mountain was to provide infill data on the BC Vein. In addition, the program expanded upon data collected in 2017 and also targeted vein mineralization concentrated within the hanging wall of the BC Vein.

Cow Mountain had a total of 246 drill holes on the Cow prospect, and two drill holes on the Valley Zone prospect, totalling 67,715.05 m and 401.9 m, respectively. The aim of the 2018 Program at Cow Mountain was to infill and expand the high-grade gold-bearing vein corridors (Beausoleil and Pelletier, 2018). Drilling on Island Mountain produced 168 drill holes on the Shaft Zone prospect, and 20 drill holes on the Mosquito Creek prospect, totalling 53,731.29 m and 4,597 m, respectively. The 2018 Program at Island Mountain focused on targets generated by underground mapping and sampling data, as well as historical data compiled from smaller scale mapping, trenching, soil sampling and drilling programs. The program aimed to demonstrate continuity and expand on known mineralized vein corridors. Infill drilling was designed to intercept modelled vein corridors with a 25-m spacing at depth in order to convert Inferred resources to the Indicated category (Beausoleil et al., 2019).

Also, in 2018, in addition to the main Cariboo Gold Project claim group detailed above, Grouse Creek had a total of 14 drill holes, totalling 4,903.2 m (Figure 10-8). The aim of the drilling program was to identify the potential source of a Au-in-soil anomaly and subsequent gold rich placer deposits in the Discovery Claim and Shy Robin Gulch. (Filgate, 2018).

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In 2019, drilling was conducted on Barkerville Mountain (BC Vein and Bonanza Ledge, KL Zone, Williams Creek, and Lowhee Zone deposits), Cow Mountain (Cow prospect), and Island Mountain (Shaft Zone, Mosquito Creek, and Willow prospects) (Figure 10-6, Figure 10-4, and Figure 10-2, respectively). Barkerville Mountain had a total of 36 drill holes on the BC Vein and Bonanza Ledge deposit, 73 on the KL Zone, four on Williams Creek, and 24 holes on the Lowhee zone, totalling 7974.2 m, 31,974.62 m, 1,572 m, and 8,422 m, respectively. The 2019 Program on Barkerville Mountain focused on exploration for mineralized vein corridors analogous to those on Cow and Island Mountains within the prospective sandstone unit, with drilling on BC Vein to increase confidence in the block model (Beausoleil et al., 2019). Cow Mountain had a total of 72 drill holes on the Cow prospect, totalling 16,136.6 m and was primarily focused on infill drilling and testing down dip extents of mineralized vein corridors. Island Mountain had a total of 26 drill holes on the Shaft Zone prospect, 15 on the Mosquito Creek prospect, and six on the Willow prospect, totalling 12,032.45 m, 8,258.89 m, and 3,078.9 m, respectively. The objective of the 2019 Program on Island Mountain was to infill high-grade areas currently classified as Inferred on the Mosquito and Shaft Zones and to test the strike and depth extent of the mineralized vein corridors. Exploration to the northwest of Mosquito Creek also occurred on what is known as the Willow Target, a Au-in-soil geochemical anomaly identified from 2018 soil sampling (Beausoleil et al., 2019). Additionally, the Proserpine property had a total of six holes drilled, totalling 2,676.25 m. This program was aimed at testing Au-in-soil anomalies and historical gold occurrences, as well as historical underground workings.

10.4. 2020 Drilling Program

The 2020 drilling program (the "2020 Program") was conducted between January 16, 2020, and December 14, 2020, by Smithers, B.C. based Hy-Tech Drilling Ltd. ("Hy-Tech") and its primary focus was delineating the Cow-Island-Barkerville corridor. A total of 57,078.8 m was drilled in 196 surface holes, as summarized in Table 10-1. The objective of this program was to further delineate mineralized vein corridors within all deposits and intercept veins with a 25 m spacing from previously drilled holes in order to convert Inferred resources to the Indicated category.

Table 10-1: Summary of BGM's 2020 Program

Deposit Number of Holes Metres Drilled
BC Vein and Bonanza Ledge 3 560.60
Lowhee Zone 24 10,144.50
Cow Mountain 48 12,596.05
Valley Zone 56 17,558.85
Shaft Zone 15 3,909.00
Mosquito Creek 50 9,392.40
Proserpine 5 2,917.40
Total 201 57,078.80

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The 2020 Program at Island Mountain focused on Shaft Zone with 3,909 m drilled in 15 holes and Mosquito Creek, totalling 9,392.4 m drilled in 50 holes (Figure 10-2), further continuing the category conversion work from Inferred to Indicated status within known vein corridors.

The 2020 Program at Cow Mountain (Figure 10-4) was primarily focused in the Valley Zone to continue category conversion work and expand known mineralized vein corridors, with a total of 12,596.05 m drilled in 56 holes. Target vein corridors are being drilled from surface to a maximum vertical depth of 600 m. Additional infill drilling on Cow Mountain was conducted (Figure 10-4), furthering category conversion on known vein corridors (Inferred to Indicated) and exploring the down-dip extent of selected targets. The targeted vein corridors were drilled from surface to a maximum vertical depth of 350 m with a 25 m intercept spacing at depth. A total of 12,596.05 m was drilled in 48 holes.

A bulk core sampling program to test the feasibility of the mineral sorter was conducted during the 2020 and 2021 drill program on both Cow Mountain and Island Mountain, totalling 168 m and 513 m, respectively. A total of 2,000 kilograms ("kg") of material was collected. Samples were selected based on modelled vein corridors hosting ore grades inferred to be representative of the overall deposit. Selected samples were then shipped to Société Générale de Surveillance ("SGS") for metallurgical analysis.

The aim of the 2020 Program at Barkerville Mountain (Figure 10-6) was to provide infill data on the BC Vein and to further define the Lowhee Zone prospect.

BC Vein drilling, totalling 560.6 m in three holes, improved block model confidence and further delineated the deposit. Drilling at the Lowhee Zone targeted mineralized vein corridors within the prospective sandstone unit analogous to those on Cow and Island mountains. The targeted vein corridors were drilled from surface to a maximum vertical depth of 370 m with a 25 m intercept spacing at depth. A total of 10,144.5 m was drilled in 24 holes.

The intersections were visually compared in 3D to the mineralized zones 3D solids and interpolated block grades of the 2020 MRE.

Overall, visual inspection of the 2020 drilling results demonstrated that the thickness and the grade of the mineralized zones were in the same order of magnitude as the 2020 MRE. The 2020 drilling continued to confirm the geological and grade continuities that were demonstrated in the 2020 MRE (Beausoleil et al., 2019).

In addition, 2020 also saw drilling on the Proserpine prospect (Figure 10-8), with five drill holes totalling 2,917.4 m. The program consisted of one stratigraphic drill hole and four holes drilled orthogonal to known surface mineralization within the Proserpine prospect from September 13, 2020, to November 16, 2020. The objective of the stratigraphic hole was to constrain stratigraphy, understand F2 relationships, and target strike parallel shear structures, while the objective of the remaining holes was to explore for NE-SW-striking, AXPL oriented vein structures, and to create an Inferred resource by stepping out from 2019 drilling (Yao and Doyle, 2020).

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10.5. 2021 Drilling Program

Table 10-2: Summary of BGM's 2021 Program

Deposit Number of Holes Metres Drilled
Lowhee Zone 95 29,860.9
Cow Zone 6 1,988.5
Valley Zone 108 47,484.92
Shaft Zone 162 60,990.8
Mosquito Creek 42 10,710.65
Total 413 151,035.77

The 2021 drilling program (the "2021 Program") was conducted by Hy-Tech between January 4, 2021, and October 20, 2021. The 2021 Program also saw the addition of Paycore Drilling ("Paycore"), based in Valemount, British Columbia, between August 18, 2021, and October 16, 2021.

The 2021 Program at Island Mountain focused on Shaft Zone with 60,990.8 m drilled in 162 holes, and Mosquito Creek totalling 10,710.65 m drilled in 42 holes (Figure 10-2), further continuing the category conversion work from Inferred to Indicated status within known vein corridors.

The 2021 Program at Cow Mountain (Figure 10-4) was primarily focused in the Valley Zone to continue category conversion work and expand known mineralized vein corridors with a total of 47,484.92 m drilled in 108 holes. Minor drilling on Cow Mountain was conducted, totalling 1,988.5 m drilled in six holes (Figure 10-4). The purpose of this drilling was to conduct metallurgical testing of modelled vein corridors.

The 2021 Program at Lowhee Zone (Figure 10-6) continued to define the prospect, targeting mineralized vein corridors within the prospective sandstone unit analogous to those on Cow Mountain and Island Mountain. A total of 29,860.9 m was drilled in 95 holes. Drill hole spacing along the modelled vein corridors was kept to a distance of 25 m.

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10.6. 2022 Drilling Program

Table 10-3: Summary of BGM's 2022 Program

Deposit Number of Holes Metres Drilled
Lowhee Zone 19 4,829.9
Total 19 4,829.9

The 2022 drilling program (the "2022 Program") was conducted by Hy-Tech at the Lowhee Zone on Barkerville Mountain (Figure 10-6). The 2022 Program started on March 25, 2022, and was on-going as of May 12, 2022.

The focus of the 2022 Program at the Lowhee Zone was the infill of a proposed underground bulk- sampling area, the continued category conversion from Inferred to Indicated status of modelled vein corridors, and the delineation of additional vein corridors.

As of May 12, 2022, 19 diamond drill holes of the 2022 Program had been completed, totalling 4,829.9 metres. As of May 12, 2022, assay results for the 2022 Program were not yet received.

10.7.    QPs Comments

As of May 12, 2022, assay results from 85 holes were received after November 23, 2021, representing 36,150.65 m of assays. Overall, the visual inspection of the 2022 drilling results demonstrated that the thickness and the grade of the mineralized zones are in the same order of magnitude as the 2022 MRE. The 2022 drilling continues to confirm the geological and grade continuities that were demonstrated in the 2022 MRE.

For the purpose of this Report, the QP is of the opinion that the gains and the losses would balance each other, and the resulting difference would not be material to the overall resource. According to the drilling results in the extension of the known mineralized zones and with the discovery of new zones, there is a potential to increase the mineral resources.

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Figure 10-1: Cariboo Gold Project Diamond Drilling Program Overview

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Figure 10-2: Island Mountain Drilling Program 2015-2021

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Figure 10-3: Cross-section of Shaft Zone diamond drill holes with gold assay highlights

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Figure 10-4: Cow Mountain Drilling Program 2015-2021

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Figure 10-5: Cross-section of Cow Mountain diamond drill holes with gold assay highlights

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Figure 10-6: Barkerville Mountain Drilling Program 2015-2022

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Figure 10-7: Cross-section of Barkerville Mountain diamond drill holes with gold assay highlights

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Figure 10-8: Proserpine Mountain Drill Program 2015-2021

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Figure 10-9: Cross-section of Proserpine Mountain diamond drill holes with gold assay highlights

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11. Sample Preparation, Analyses and Security

This chapter describes the sample preparation, analysis, and security procedures for the 2020 and 2021 diamond drill holes programs ("2020 and 2021 Programs") included in the current resource estimate. The qualified professionals ("QP") reviewed the quality assurance-quality control ("QA/QC") procedures and results. The reader is referred to Beausoleil and Pelletier (2020) for details of the 2019 drilling program, to Beausoleil and Pelletier (2019) for details of the 2018 drilling program, and to Beausoleil and Pelletier (2018) for the 2016 and 2017 programs.

11.1. Core Handling, Sampling and Security

Core handling, sampling, and security procedures are managed by Osisko Development Corp. ("ODV") personnel. The procedures are described in detail below.

The drill core is placed into wooden core boxes at the drill site with the end of each drill run marked with a small wooden block displaying the depth of the hole. Box labels indicate the hole and box numbers. The boxes are racked and covered at the drill, secured with ratchet straps, and then transported daily from the drill site to ODV's core storage and logging facility. The boxes are labelled in permanent marker with the hole and box number (e.g., GR-15-01 Bx 1). The core is transported by truck during the drilling programs. The slogging facility is located within the District of Wells, British Columbia ("Wells"). There are two secure core storage areas, one in the District of Wells near the core logging facility and a second is located near the Ballarat Camp, approximately five km east of Wells.

Upon receiving a load of core from the drill crew, the core is brought into the logging room. Meterage blocks are checked for errors, the core is oriented in the box and cleaned, and the metre marks are drawn on the core before logging begins. The geological and geotechnical core logging data is collected with Datamine's DHLogger software.

The sample intervals are between 0.5 metres ("m") and 1.5 m in length and do not cross geological contacts. A line is drawn with a pencil along the length of the core to indicate where the core will be sawed. Each sampling ticket is divided into three tags. One tag is stapled to the core box at the beginning of the interval to record the drill hole number and sample interval recorded. The second tag is placed in the sample bag, which is sent to the laboratory; this tag does not reference the drill hole or meterage. The last tag remains in the sample ticket book with the hole number and recorded intervals. All samples are assigned a unique sample number.

After the core boxes with tags are photographed, the core boxes are moved to the cutting station. The core is cut lengthwise by diamond saw, with half the core submitted as the primary sample and the remaining half core retained in the core box for future reference.

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The samples are individually bagged with the corresponding tag. The tag number is written on the bag and each bag is sealed. The bags are then placed in rice bags and the rice bags are sealed with numbered security tags for the chain of custody requirements. If any tampering with security tags is suspected, the laboratory will communicate with ODV. Samples are transported to the ALS Minerals ("ALS") laboratory in Vancouver, British Columbia ("BC") and the remaining drill core is subsequently stored on site at ODV's secure facilities in Wells and at a second location near the Ballarat camp, approximately 5 km east of Wells.

11.2. Laboratories Accreditation and Certification

The International Organization for Standardization ("ISO") and the International Electrotechnical Commission ("IEC") form the specialized system for worldwide standardization. ISO/IEC 17025 General Requirements for the Competence of Testing and Calibration Laboratories set out the criteria for laboratories wishing to demonstrate that they are technically competent, operating an effective quality system, and able to generate technically valid calibration and test results. The standard forms the basis for the accreditation of competence of laboratories by accreditation bodies. ISO 9001 applies to management support, procedures, internal audits, and corrective actions. It provides a framework for existing quality functions and procedures.

All the samples of the 2020 and 2021 Programs were submitted to the ALS laboratory in BC. The ALS laboratory is ISO 9001 certified and accredited (ISO/IEC 17025) for the analytical methods used routinely on the samples from Cow Mountain, Island Mountain, and Barkerville Mountain. The ALS facility is a commercial laboratory independent of ODV and has no interest in the Cariboo Gold Project ("the Project").

11.3. Sample Preparation and Assay

11.3.1. Sample Preparation

 Samples are sorted and logged into the ALS LIMS program;

 Samples are dried and weighed;

 Samples are crushed to +70% passing 2 millimetres ("mm") (CRU-31);

 The crushed sample split of up to 500 grams ("g") is pulverized to +85% passing 75 microns ("μm") screen (PUL 32m);

 Samples containing visible gold or cosalite mineralization are assayed by metallic screen method; a crushed sample split of 1,000 g is pulverized (method PUL-32) to pass 100 μm (Tyler 150 mesh) stainless steel screen to separate the oversize fractions (method SCR-21).

11.3.2. Gold Assaying

 A 50 g‐pulp aliquot is analyzed by Au-AA26: fire assay followed by aqua regia digestion (HNO3 HCl) with an atomic absorption spectroscopy finish ("AAS");

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 When assay results are higher than 100 grams per tonne ("g/t") gold ("Au"), a second 50 g pulp aliquot is analyzed by Au-GRA22: fire assay, parting with nitric acid (HNO3) with a gravimetric finish;

 All samples containing visible gold or cosalite mineralization are assayed by the metallic screen method (method Au-SCR21). At the request of ODV, any sample exceeding 100 g/t Au (Au-AA26) is rerun with the screen method following the procedure below;

 For visible gold assays or cosalite mineralization, the +100 μm fraction (Au+) is analyzed in its entirety by fire assay ("FA") with gravimetric finish. The 100 μm fraction (minus) is homogenized and two subsamples are analyzed by FA with AAS (Au-AA25) or gravimetric finish (Au-GRA21). The average of the two minus fraction subsamples are taken and reported as the Au-fraction result. The gold content is then determined by the weighted average of the Au+ and Au- fractions.

11.3.3. Multi-element Assaying

 Some samples are analyzed by trace-level‐ multi‐-element‐ method ME‐MS61: a 0.25 g aliquot is digested by four-acid digestion (HNO3 HClO4 HF HCl) and HCl leach (method GEO-4A01) and analyzed by ICP-AES.

 Following this analysis, the results are reviewed for high concentrations of bismuth, mercury, molybdenum, silver, and tungsten and diluted accordingly. Samples meeting these criteria are then analyzed by ICP-MS. Results are corrected for spectral interelement interferences.

11.3.4. Specific Gravity Measurements

 Before crushing and pulverizing, the specific gravity of selected samples is determined by the bulk sample method (water displacement, OA GRA08).

11.4. Quality Assurance and Quality Control

This section summarizes the reviews of ODV's 2020 and 2021 assay QA/QC program.

A total of 49,243 and 111,361 samples (including QA/QC samples) were assayed during 2020 and 2021. The 2020 and 2021 QA/QC programs included a routine insertion of standards and blanks. ODV included one standard in every 20 samples and one blank in every 40 samples. The 2020 and 2021 QA/QC programs did not include field or coarse reject duplicates.

11.4.1. Certified Reference Materials (Standards)

Accuracy is monitored by adding standards at the rate of one certified reference materials ("CRM") for every 20 samples. Standards are used to detect assay problems with specific sample batches and any possible long-term biases in the overall dataset. ODV's definition of a quality control failure is when:

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 Assays for a CRM are outside plus or minus three standard deviations (±3SD) or ±10%; or

 Assays for two consecutive CRMs are outside ±2SD, if one of them is outside ±3SD.

11.4.2. 2020 Certified Reference Materials (Standards) Performance

A total of 2,458 standards were analyzed during the 2020 Program, for an insertion rate of 5.0%. Five different CRMs from Ore Research and Exploration Pty Ltd. ("OREAS") were used.

In 2020, a total of 22 QC failures were recognized, and reruns were requested in 17 cases. Reruns were not requested for the other five cases, as per ODV's protocol, because the surrounding samples were assayed at or below the lower detection limit (0.01 g/t Au). A total of 18 corrected certificates were issued, and the corrected assays were loaded into the database.

The 2020 average CRM results are all within ±0.4% of the expected values (Table 11-1). Most assays were within ±3SD of the accepted value (Figure 11-1).

Table 11-1: Results of standards used by ODV for the 2020 Program

CRM Count Expected Au (g/t) Observed Au (g/t) Percent of
Expected (%)
Average SD Average SD
OREAS 218 113 0.531 0.017 0.533 0.013 100.3%
OREAS 219 506 0.76 0.024 0.760 0.019 100.0%
OREAS 226 609 5.45 0.126 5.448 0.083 100.0%
OREAS 228b 612 8.57 0.199 8.583 0.134 100.2%
OREAS 237 618 2.21 0.054 2.219 0.044 100.4%
Total 2,458   Weighted Average   100.15%

 

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Figure 11-1: Example of results for standard OREAS 219 for the 2020 Program

11.4.3. 2021 Certified Reference Materials (Standards) Performance

A total of 5,571 standards were analyzed during the 2021 Program, for an insertion rate of 5.0%. Eight different CRMs from OREAS were used.

In 2021, a total of 75 QC failures were recognized, and reruns were requested in 63 cases. Reruns were not requested for the other 12 cases, as per ODV's protocol, because the surrounding samples were assayed at or below the lower detection limit (0.01 g/t Au). A total of 50 corrected certificates were issued, and the corrected assays were loaded into the database. Two standards failed again on the rerun, but the samples that were rerun along with the standards were within 10% of the original values.

The 2021 average CRM results are all within ±1.8% of the expected values, except for OREAS 217 which had a small sample size (Table 11-2). Most assays were within ±3SD of the accepted value (Figure 11-1).

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Table 11-2: Results of standards used by ODV for the 2021 Program

CRM Count Expected Au (g/t) Observed Au (g/t) Percent of
Expected (%)
Average SD Average SD
OREAS 217 2 0.338 0.010 0.345 0.007 102.1%
OREAS 219 1,207 0.76 0.024 0.758 0.019 99.7%
OREAS 226 1,083 5.45 0.126 5.417 0.101 99.4%
OREAS 228b 640 8.57 0.199 8.553 0.159 99.8%
OREAS 232 267 0.902 0.023 0.901 0.020 99.9%
OREAS 237 1,477 2.21 0.054 2.216 0.047 100.3%
OREAS 240 353 5.51 0.139 5.427 0.104 98.5%
OREAS 242 542 8.67 0.215 8.516 0.171 98.2%
Total 5,571 Weighted Average 99.60%

Figure 11-2: Example of results for standard OREAS 237 for the 2021 Program

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11.4.3.1. Comment for Monitoring Accuracy

The QP is of the opinion that ODV's quality control program for monitoring accuracy using standards is reliable and valid based on the results presented by ODV personnel.

11.4.4. Blank Samples

Contamination during preparation is monitored by the routine insertion of coarse barren material (a "blank") that goes through the same sample preparation and analytical procedures as the core samples. Elevated values for blanks may indicate sources of contamination in the fire assay procedure (contaminated reagents or crucibles) or sample solution carry-over during instrumental finish.

11.4.5. 2020 Blank Samples Performance

In 2020, 1,235 blanks were submitted to ALS with the core samples. ODV personnel identified two cases of contamination for gold in coarse blank material, and both cases were sent for repeat assaying. Both cases passed on the rerun. The corrected assay certificates were loaded into the database.

All the blanks analyzed at ALS assayed less than or equal to 0.1 g/t Au, which is 10 times the detection limit of 0.01 g/t Au and are thus considered acceptable. Table 11-3 summarizes the performance of the blanks. Figure 11-3 shows the results over the year.

Table 11-3: Results of blanks used by ODV for the 2020 Program

Total blanks 1,235
Minimum Au g/t <0.01
Maximum Au g/t 0.09
Below detection limit (# and %) 1073 (86.9%)
QC Failures (# and %) 2 (0.16%)

 

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Figure 11-3: Results of blanks for the 2020 Program

11.4.6. 2021 Blank Samples Performance

In 2021, 2,789 blanks were submitted to ALS with the core samples. ODV personnel identified two cases of contamination for gold in coarse blank material, and both cases were sent for repeat assaying. Both cases passed on the rerun. The corrected assay certificates were loaded into the database.

All the blanks analyzed at ALS, assayed less than or equal to 0.1 g/t Au, which is 10 times the detection limit of 0.01 g/t Au, and are thus considered acceptable. Table 11-4 summarizes the performance of the blanks. Figure 11-4 shows the results over the year.

Table 11-4: Results of blanks used by ODV for the 2021 Program

Total blanks

2,789

Minimum Au g/t

<0.01

Maximum Au g/t

0.09

Below detection limit (# and %)

2,315 (83.0%)

QC Failures (# and %)

2 (0.07%)

 

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Figure 11-4: Results of blanks for the 2021 Program

11.4.6.1. Comment on Monitoring Contamination

The QP is of the opinion that ODV's quality control program for monitoring contamination using blanks is reliable and valid based on the results presented by ODV personnel.

11.5. Conclusions

A total of 564 holes from the 2020 and 2021 Programs were included in the current resource. The QP is of the opinion that the sample preparation, analysis, QA/QC, and security protocols used for the Project follow generally accepted industry standards, and that the data is valid.

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12. Data Verification

This chapter covers the data verification of the diamond drill hole databases used for the 2022 mineral resource estimate ("MRE") (the "ODV Databases"), as well as the review and validation of the geological models of each deposit, and the review of information on mined-out areas and the data for selected drill holes (assays, QA/QC program, downhole surveys, lithologies, alteration, and structures).

The Qualified Persons ("QP") also reviewed and validated the resource estimation process followed by ODV and Talisker Exploration Services Inc. ("Talisker"), including all parameters, geological interpretation, basic statistics, variography, interpolation parameters, block model construction, scripts that run the model, volumetric report, and the validation process.

The ODV Databases contain the 2,730 completed and validated diamond drills holes ("DDH") used for the 2020 MRE. They are divided among four databases covering the eight deposits as follows:

 Cow Mountain database for the Cow and Valley deposits (1,201 holes);

 Island Mountain database for the Shaft and Mosquito deposits (867 holes);

 Barkerville Mountain database for the BC Vein and Splays, the KL, and the Lowhee deposits (500 holes);

 Bonanza Ledge database (162 holes).

Since the 2020 MRE, no drilling has been carried out on the KL, BC Vein, and the Bonanza Ledge deposits. The 2020 MRE for the Bonanza Ledge deposit as published in both technical reports (Beausoleil and Pelletier, 2020), remains current for the 2022 MRE. The 2022 MRE results for the KL and the BC Vein deposits are different from the 2020 MRE results; search ellipses and interpolation parameters were modified to be consistent with the other five deposits.

The verification for this Technical Report also included a site visit conducted by the QP, Mr. Vincent Nadeau-Benoit, from November 1 to 5, 2021. The site visit included a visit and review of the core logging facilities, drill pads, and mineralized outcrops. The QP also examined core from drill holes from the 2020 Program and 2021 Program. Core logging and sampling procedures were discussed with the ODV's geologists Ms. Tessa Scott, Ms. Natalie Cook, Ms. Tezla Hayduk, and Ms. Katherine Gleadow. Discussions covered collar locations, drilling protocols, downhole surveys, logging protocols, oriented core, structural measurements, sampling protocols and QA/QC protocols. Mr. Nadeau-Benoit, QP, is of the opinion that the site visit and validation exercises demonstrated the validity of the protocols in place and their use during the 2020 Program and 2021 Program.

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Mr. Carl Pelletier, QP, also previously conducted site visits; from February 1 to 4, 2016, and from May 3 to 12, 2016. The first included the Bonanza Ledge pit, the Cow Mountain area, and the Island Mountain area. The second involved a visit to the core logging facilities and several drill hole collars.

12.1. Historical Work

Historical work subject to verification consisted of the holes used for the 2020 MRE (Beausoleil and Pelletier, 2020). Basic cross-check routines were performed between the current ODV Databases and the previously validated database for the 2020 MRE; i.e., collars, downhole surveys, assay fields. No discrepancies with the current database were found.

12.2. ODV Databases

The ODV Databases were verified for consistency against the Datamine DHLogger export.

The final databases are considered to be of good overall quality. The QPs consider the ODV Databases to be valid and reliable.

12.2.1. ODV Drill Hole Collar and Downhole

The 2020 and 2021 surface drill hole collars were surveyed using a Trimble DGPS unit.

The collar survey information was verified for 5% of the holes from the latest drilling programs, using the raw survey files. The QP verifications also included numerous field checks on collar location (using a handheld GPS). No discrepancies were found.

Downhole surveys (single shot and multi-shots) were conducted on the majority of surface holes. The Reflex survey information was verified for 5% of the holes from the latest drilling programs. No discrepancies were found.

12.2.2. Assays

The QPs had access to the assay certificates for all historical and current holes in the ODV Databases. All assays were verified for selected drill holes from the latest drilling programs, i.e., 5% of the 2020 Program. The assays recorded in the databases were compared to the original certificates from ALS Minerals (North Vancouver, BC). The electronic transfer of the laboratory results via e-mail, followed by the electronic transfer directly into the databases by the issuer's staff, allowed for immediate error detection and prevented any typing errors.

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No errors or discrepancies were found. The final databases are considered to be of good overall quality. The QPs consider the ODV Databases to be valid and reliable.

Discussions and reviews with the issuer's personnel convinced the QPs that the protocols and the QA/QC program in place are adequate.

12.3. Mined-out Voids

Only BC Vein is currently being mined. The resource for this deposit is depleted with a solid representing the latest surveyed underground workings (as of December 31, 2021) with a 5 metre ("m") buffer around them.

The 2020 voids model for Bonanza Ledge (all types of historical underground workings combined; see below) remains current and was used for the 2022 MRE.

The "buffer voids" are a combination of the historical underground workings (stopes, drifts and shafts) of the Cariboo Gold Quartz Mine (Cow Mountain), the Aurum Mine and Mosquito Creek Mine (Island Mountain), and the Barkerville Mountain Mine (Barkerville Mountain) with a 5 m buffer around them.

These "buffer voids" were used to deplete the final resource estimate.

For the Cow, Valley, Shaft, Mosquito, Lowhee, and BC Vein deposits, the drilling program continues to intercept undocumented voids. To reduce the associated risk, a spherical buffer with a 10 m radius was applied around the intercepts to represent a potential stope of 20 m in diameter. These spherical buffers were also used to deplete the final resource estimate.

The QPs consider the level of detail in the void triangulation to be of good quality and reliable, despite some uncertainty related to previously undocumented voids.

12.4. ODV Logging, Sampling and Assaying Procedures

The QP examined drill holes from the 2020 Program and 2021 Program.

All core boxes were labelled and properly stored on core racks or on pallets. Sample tags are present in the boxes and it was possible to validate sample numbers and confirm the presence of mineralization in the reference half-core samples from mineralized sections.

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Independent resampling was also completed by the QP of mineralized intervals from the Cow deposit and Mosquito deposit. The results show that low-grade samples yielded grade that are consistent with the original results and more variable results for higher-grade samples (although gold ["Au"] values still considered high), reflecting a nugget effect commonly related to this type of deposit.

Table 12-1 shows the results of the independent resampling.

The pictures in Figure 12-1 document the site visit and core review.

Table 12-1: Results of the independent resampling of material from the Cow and Mosquito deposits

Hole Information Original (ODV) 1/4-Split (InnovExplo) Litho. Code
(Deposit)
Hole ID From To Sample
Number
Au
(ppm)
Sample
Number
Au (AA26)
(ppm)
CM-21-010 94.80 95.85 B859968 0.03 2155817 0.03 SS (V8-Cow)
CM-21-010 95.85 96.85 B859969 4.05 2155818 5.78 SS (V8-Cow)
CM-21-010 96.85 97.65 B859971 1.18 2155819 0.66 SS (V8-Cow)
CM-21-010 97.65 98.85 B859972 1.20 2155820 0.75 SS (V8-Cow)
CM-21-010 98.85 100.00 B859973 3.02 2155821 1.51 SS (V8-Cow)
CM-21-010 100.00 101.50 B859974 0.12 2155822 0.08 SS (V8-Cow)
IM-21-005 204.00 205.40 C235583 Below DL 2155823 0.02 SS (V39-Mosquito)
IM-21-005 205.40 206.05 C235584 1.94 2155824 2.10 SS (V39-Mosquito)
IM-21-005 206.05 207.15 C235585 17.95 2155825 18.85 SS (V39-Mosquito)
IM-21-005 207.15 208.00 C235586 0.02 2155826 0.03 SS (V39-Mosquito)
IM-21-005 208.00 209.50 C235587 0.02 2155827 0.02 SS (V39-Mosquito)

12.5. Mineral Resource Estimation Process

The 2022 MRE for the Cow, Shaft, Valley, Mosquito, BC Vein, KL, and Lowhee deposits were prepared by Talisker. The geological interpretation and 3D geological model were prepared by ODV. The QPs reviewed and validated all the parameters for the seven updated models including: geological interpretation, basic statistics, variography, interpolation parameters, block model construction, scripts running the model, volumetric report, and the validation process.

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Since the 2020 MRE, no exploration and definition drilling have been carried out on the KL, BC Vein, and Bonanza Ledge deposits. The 2020 MRE for the Bonanza Ledge deposit as published in both technical reports (Beausoleil and Pelletier, 2020), remains current for the 2022 MRE. The 2022 MRE results for the KL and the BC Vein deposits are different from the 2020 MRE results; search ellipses and interpolation parameters were modified to be consistent with the other five deposits.

The QPs reviewed the estimation process described in Chapter 14 for the eight deposits and considers these models to be acceptable.

12.6. Conclusion

Overall, the QPs data verification demonstrates that the data, protocols interpretation, and estimation process are acceptable. The QPs consider the ODV Databases to be valid and of sufficient quality to be used for the mineral resource estimate herein.

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Figure 12-1: Site visit including core review (November 2021)

A) Review of hole BM-21-001 (Lowhee deposit); B) Review of hole CM-21-010 (Cow and Valley deposit);

C) Review of hole IM-21-067 (Shaft deposit); D) Field check by QP on collar location; E) External core storage

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13. Mineral Processing and Metallurgical Testing

13.1. Testwork Campaign

The metallurgical testwork program was developed by BBA Engineering Ltd. ("BBA") and Osisko Development Corp. ("ODV") in order to characterize the Cariboo Gold Project ("the Project") mineralized material behaviour to mineral processing and extraction processes. The testwork program was designed to determine the mineralized material response to a pre-concentration process and subsequently to the cyanide leach process. The testwork was conducted in 2018 at Steinert, SGS, Cyanco, and Pocock.

13.1.1. Sample Selection and Compositing

The program included composite samples from four zones: Shaft Zone ("SZ"), Cow Zone ("CZ"), Valley Zone ("VZ"), and Mosquito Zone ("MZ"). The material for the composites was obtained from NQ drill core intervals from the diamond drill core of the drilling campaigns performed by ODV in 2016, 2017 and 2018. The spatial distribution of the selected intervals is represented in Figure 13-1 and Figure 13-2.

The selected mineralized intervals for the life of mine ("LOM") composite included wall rock/shoulder samples from quartered NQ drill core and were separated on site into two size fractions: coarse (-60 millimetres ["mm']/+10 mm) sized material sent to Steinert in Kentucky, USA for mineral sorting testwork; and fines (-25 mm) sized material sent to SGS Burnaby, British Columbia, for compositing for metallurgical testwork. The amount of material received by each is presented in Table 13-1.

A single composite of fines (-25 mm) fraction was prepared at SGS by blending the material from each zone to represent the expected LOM distribution. The testwork for the fines (-25 mm) fraction involved mineralized material characterization, grindability, gravity, and flotation. Mineral sorting pre-concentration products received from Steinert were also blended to create composites, representing the expected LOM distribution and individual mineralized zones. Cyanide leaching response of pre-concentrates from both the mineral sorting and flotation samples were tested individually. A bulk sample representing the QR Mill feed blend of mineral sorter concentrate and flotation concentrate was prepared for leach optimization.

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Table 13-1: Material received for LOM composites

Zone Weight (kg)
Fines Coarse
Cow 257.8 365.2
Valley 59.4 172.4
Mosquito 81.0 33.2
Shaft 287.8 237.2
Shaft 2 411.8 590.8
Total 1,097.8 1,398.8

Drill core intervals for variability composites that represented gold ("Au") grade variation of each mineralized zone was selected by ODV and BBA and sent to SGS for a second metallurgical testwork campaign. The material received for the variability testwork program was 1,243 kilograms ("kg") from Shaft Zone, 728 kg from Cow Zone, and 180 kg from Valley Zone (Table 13-2). The drill core intervals received were crushed to -35 mm and screened. The coarse fraction (35+10 mm) of the material was sent to Steinert for mineral sorting testwork. Material sized 10 mm was kept at SGS for metallurgical testwork. Mineral sorting products received back from Steinert were assayed and prepared for metallurgical testwork at SGS. A map of the testwork program and samples produced for extended testwork- is provided in Figure 13-3.

Table 13-2: Material received for variability composites

Zone Composite
Name
Weight (kg)
Fines Coarse Total
Shaft Zone SZ-LOM 157 370 527
SZ-High 89 160 249
SZ-Low 87 174 261
SZ-Deep 64 142 206
Cow Zone CZ-LOM 58 167 225
CZ-High 70 139 209
CZ-Low 78 216 294
Valley Zone VZ-LOM 18 38 56
VZ-High 14 29 43
VZ-Low 17 64 81

 

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Figure 13-1: Sample locations - Plan view

(Source: Morgan et al, 2019)

Figure 13-2: Sample locations - Section view

(Source: Morgan et al, 2019)

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Figure 13-3: Testwork program map and samples produced for extended testwork

(Source: Morgan et al, 2019)

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13.1.1.1. Composite Characterization

Head Assays

The composites were submitted to screened metallic analysis for gold at +150 (oversize) and -150 (undersize) meshes and subjected to semi-quantitative inductively coupled plasma ("ICP") scan for multi element analysis. Table 13-3 summarizes the results of LOM composite fines and Table 13-4 summarizes the results of LOM composite mineral sorting samples for major elements.

Table 13-3: LOM composite fines head assay

Sample Oversize
mass (%)
Undersize
mass (%)
Au grade of
oversize (g/t)
Au grade of
undersize (g/t)
Calculated
total Au grade
(g/t)
Total S
grade
(%)
Fines composite 3.77 96.23 15.70 2.94 3.42 2.62

Table 13-4: LOM mineral sorting samples head assays


Zone Sample ID Oversize
mass (%)
Undersize
mass (%)
Au grade
of oversize
(g/t)
Au grade of
undersize
(g/t)
Calculated
total Au
grade(1)
(g/t)
Total S
grade(1)
(%)
Shaft SZ1 3.5 96.5 24.29 6.88 7.48 4.38
Cow CZ 3.6 96.4 40.62 3.31 4.67 2.28
Valley VZ1 3.9 96.1 10.80 3.47 3.77 3.07
Mosquito MC 5.1 94.9 5.36 4.93 4.91 4.93
Run of Mine ROM 1-1 4.4 95.6 18.87 4.66 5.19 3.97
Shaft SZ2 2.1 97.9 120.26 6.65 7.35 4.49
Run of Mine ROM-2 2.4 97.6 24.76 4.85 5.30 4.31
Run of Mine ROM 1-2 2.8 97.2 59.46 6.20 6.89 4.08
Valley VZ2 2.3 97.7 28.31 3.24 3.77 3.23
Shaft LOM-SZ 3.6 96.4 81.57 6.01 9.27 3.12
Shaft SZ(2) 3.3 96.7 26.41 5.45 5.94 3.24
Cow CZ(2) 4.3 95.7 62.15 4.41 7.10 2.76

(1) Head grades calculated using mineral sorting product assays.

(2) Feed crushed to -38 mm.

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The variability composites were also submitted to screened metallic analysis for gold at +150 (oversize) and -150 (undersize) meshes and subjected to semi-quantitative ICP scan for multi element analysis. Table 13-5 summarizes the results of variability composite fines and Table 13-6 summarizes the results of variability mineral sorting samples for major elements.

Table 13-5: Variability composites - Fines (-10mm) head assays

Sample
ID
Oversize
mass
(%)
Undersize
mass (%)
Oversize
Au (g/t)
Undersize
Au (g/t)
Calculated
Total Au
grade (g/t)
Total TOC
grade
(%)
Total S
grade
(%)
Total
Cu
(g/t)
Total Fe
(g/t)
SZ LOM 3.7 96.3 10.9 9.3 9.4 0.1 7.4 <40 71,287
SZ High 3.6 96.4 30.0 20.5 20.9 0.1 10.4 140 102,439
SZ Low 3.7 96.3 79.5 8.2 10.8 0.2 7.8 <40 80,090
SZ Deep 3.9 96.1 7.0 2.7 2.9 0.5 2.3 121 35,611
CZ LOM 3.7 96.3 20.0 3.2 3.8 0.4 2.8 <40 50,877
CZ Low 3.9 96.1 46.9 5.7 7.4 0.5 6.7 <40 74,497
CZ High 2.3 97.7 283.0 14.9 21.2 0.7 8.1 <40 83,066
VZ LOM 2.9 97.1 89.7 5.1 7.7 1.4 3.5 87 89,018
VZ Low 96.9 3.1 14.9 3.5 3.9 0.7 5.4 162 43,225
VZ High 96.7 3.3 48.9 9.5 10.9 0.8 9.3 117 51,286

Table 13-6: Variability composites - Mineral sorting samples head assays


Sample
ID
Oversize
mass (%)
Undersize
mass (%)
Oversize
Au (g/t)
Undersize
Au (g/t)
Calculated total
Au grade(1)
(g/t)
Total TOC
grade (%)
Total S
grade
(%)
Total Cu
(g/t)
Total Fe
(g/t)
SZ LOM 3.1 96.9 9.4 6.4 6.5 0.2 4.2 105.6 46,736
SZ High 3.1 96.9 55.0 8.9 9.7 0.1 4.3 278.8 52,407
SZ Low 3.4 96.6 17.1 4.3 4.7 0.1 3.1 33.9 41,011
SZ Deep 3.0 97.0 88.4 1.5 3.4 0.5 1.4 49.8 29,508
CZ LOM 3.2 96.8 62.6 2.1 4.0 0.3 1.7 52.5 34,771
CZ Low 3.3 96.7 15.8 3.0 3.5 0.3 2.9 <40 37,368
CZ High 3.4 96.6 208.4 6.8 14.1 0.5 5.7 <40 57,561
VZ LOM 4.0 96.0 18.7 5.3 5.8 0.9 4.8 118.2 58,423
VZ Low 3.6 96.4 5.4 2.7 2.9 0.5 3.5 63.3 43,225
VZ High 5.4 94.6 14.6 5.7 6.0 1.2 3.2 108.7 48,112

(1) Head grades calculated using mineral sorting product assays.

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Gold deportment

A sample of LOM fines composite was submitted for gold deportment analysis at SGS. The study reported 13.8% of total liberated gold (liberated and pure gold minerals) and 86.2% gold associated with other minerals. 59.9% of the gold was associated with pyrite, 7.3% with heavy silicates, and 2.5% with complex sulphides (Figure 13-4).

Figure 13-4: Mineralogical distribution of gold occurrences

The gold association by size is presented in Figure 13-5. Approximately 43% of pure gold was found in the coarse size range of 125-180 μm and gold associated with heavy silicates was under 20 μm.

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Figure 13-5: Gold association by size

(Source: Morgan et al, 2019)

13.1.2. Comminution Testwork

Samples were submitted to crusher work index ("CWi"), Bond ball mill work index ("BWi"), and abrasion index ("Ai") testing at SGS. The test results are presented in Table 13-7, Table 13-8 and Table 13-9. CWi and BWi results categorize the hardness of the mineralized material as medium, and the abrasiveness of the mineralized material is categorized as medium to moderately abrasive based on Ai.

Table 13-7: Crusher work index

Sample ID

CWi (kWh/t)

SZ-Deep MSC

6.9

SZ-High MSC

7.3

SZ-LOM MSC

5.7

SZ-Low MSC

6.5

CZ High

12.4

CZ Low

18.5

CZ LOM

15.8

 

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Table 13-8: Abrasion index

Sample ID Ai (g) Ai Category
SZ-Deep MSC 0.227 Medium
SZ-High MSC 0.250 Medium
SZ-LOM MSC 0.283 Medium
SZ-Low MSC 0.229 Medium
CZ High 0.341 Moderately Abrasive
CZ Low 0.390 Moderately Abrasive
CZ LOM 0.309 Moderately Abrasive

Grindability testwork was performed on the fines and mineral sorter concentrates ("MSC") individually.

Table 13-9: Bond ball mill work index

Sample ID Mesh of grind Bond Work index (kWh/t)
-25 mm (Sample #1) / Fines 150 10.7
-25 mm (Sample #1) / Fines 230 14.2
CZ Low Fine 150 12.0
CZ LOM Fine 150 11.2
CZ High Fine 150 11.4
SZ Low Fine 150 11.6
SZ High Fine 150 11.8
SZ Deep Fine 150 12.1
VZ-21 ROM 150 11.7
VZ-22 ROM 150 13.9
VZ-23 ROM 150 11.3
VZ-24 ROM 150 14.5
CZ Comp MSC 230 14.0
SZ Comp MSC 230 14.0
MSC LOM Comp 230 14.2
SZ LOM MSC 230 15.0
SZ High MSC 230 14.9
SZ Low MSC 230 15.7
SZ Deep MSC 230 14.7
CZ LOM MSC 230 15.4
CZ Low MSC 230 16.4
CZ High MSC 230 17.0

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13.1.3. Mineral Sorting Testwork

Mineral sorting testwork was conducted at Steinert facilities in Kentucky, USA, in August 2018. The initial testwork program focused on 1,264 kg of drill core material, from all four deposits, crushed to -60 mm/+10 mm. The mineral sorting products of two samples from Shaft Zone and Cow Zone were recombined to reproduce the previously tested -60 mm/+10 mm feed, crushed to -35 mm/+10 mm and sent back to Steinert for mineral sorting. A summary of these samples is presented in Table 13-10.

Table 13-10: Mineral sorted LOM composites

Zone Sample ID Mass (kg) Size fraction
Shaft SZ1 239 -60 mm/+10 mm
Shaft SZ2 252
Cow CZ 325
Valley VZ1 46
Mosquito MC 8
Run of Mine ROM 1 30
Run of Mine ROM 2 70
Run of Mine ROM 1-2 62
Valley VZ2 70
Shaft LOM-SZ 178
Shaft SZ 66 -35 mm/+10 mm
Cow CZ 58

The second mineral sorting testwork program involved the variability samples from three mineralized deposits. Ten variability samples sized -35 mm/+10 mm were mineral sorted at Steinert in January 2019. The summary of the variability samples is presented in Table 13-11.

Once the mineral sorting tests were completed, the mineral sorting products were sent to SGS for analysis along with the -8 mm fines generated during mineral sorting due to sample handling.

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Table 13-11: Mineral sorted variability composites

Zone Sample ID Mass (kg) Size fraction
Shaft SZ LOM 330 -35 mm/+10 mm
SZ High Grade 149
SZ Low Grade 158
SZ Deep 129
Cow CZ LOM 161
CZ Low Grade 208
CZ High Grade 134
Valley VZ LOM 36
VZ Low Grade 61
VZ High Grade 27

Sensor Evaluation

In order to determine the best sensor suited to the Project material, hand-picked core samples representing mineralized rock and waste rock were prepared. The response of these two groups of rocks to X-Ray Transmission ("XRT"), colour camera, induction, and XRT/laser combination scanners were evaluated.

An XRT/laser combination was used for the testing based on the results of the evaluation.

Flowsheet Tests and Results

The tests on each sample were run in a five-stage process. The first four stages were "rougher" stages consisting of XRT only at different scanner settings. The purpose of the XRT scanner is to collect the sulphide minerals. The fifth stage was a laser scanner "scavenger" to collect quartz bearing particles.

The XRT rougher stage conditions were set up to be highly selective at first to produce the highest grade concentrate with the least amount of mass pull. With each additional stage, the conditions became less selective, increasing recovery but decreasing concentrate grade. Conditions for maximum gold recovery and simultaneous waste rejection were selected based on the analysis of the results. A summary of the results for each sample tested is presented in Table 13-12. The "Fines" in the table refers to the fines generated during the sorting test manipulation. According to the mineral sorter strategy, they can be combined with concentrate. The "grade vs. recovery" curves for each sample are illustrated in Figure 13-6.

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Table 13-12: Mineral sorting test results - LOM composites

Zone Sample ID Feed
grade
(Au, g/t)
Mass pull
(%)
Au distribution
(%)
Product grade
(Au, g/t)
Conc.(1) Waste Fines Conc.(1) Waste Fines Conc.(1) Waste Fines
Shaft SZ1 7.48 70.4 29.6 4.2 99.2 0.8 3.7 10.8 0.2 6.6
Shaft SZ2 7.35 60.7 39.3 2.6 98.2 1.8 4.5 11.9 0.3 12.7
Cow CZ 4.67 48.7 51.3 4.1 97.4 2.6 5.6 9.6 0.2 6.4
Valley VZ1 3.77 78.1 21.9 3.1 99.0 1.0 7.9 4.6 0.2 9.7
Mosquito MC 4.92 86.1 13.9 6.7 99.1 0.9 8.9 5.6 0.3 6.3
Run of Mine ROM 1 5.19 82.2 17.8 3.8 99.2 0.8 7.9 6.0 0.2 10.7
Run of Mine ROM 2 5.3 52.4 47.6 11.2 95.1 4.9 10.9 10.8 0.5 5.2
Run of Mine ROM 1-2 6.89 42.4 57.6 0.1 96.9 3.1 0.2 15.8 0.4 9.6
Valley VZ2 3.77 44.2 55.8 0.9 97.4 2.6 1.1 8.4 0.2 4.5
Shaft LOM-SZ 9.27 65.2 34.8 1.9 98.9 1.1 1.4 14.3 0.3 6.8
Shaft SZ (-35 mm/+10 mm) 5.94 44.2 55.8 0.9 96.6 3.4 1.2 13.1 0.4 7.8
Cow CZ (-35 mm/+10 mm) 7.10 65.2 34.8 1.9 77.5 22.5 2.8 8.4 4.6 10.9
Global Average 5.97 61.7 38.4 3.5 96.2 3.8 4.7 9.9 0.7 8.1
Minimum - 42.4 13.9 0.1 77.5 0.8 0.2 4.6 0.2 4.5
Maximum - 86.1 57.6 11.2 99.2 22.5 10.9 15.8 4.6 12.7

(1) Concentrate mass recovery, gold distribution, and grade values include fines.

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Table 13-13: Mineral sorting test results - Variability composites

Zone Sample ID Feed
grade
(Au, g/t)
Mass pull Au distribution Product grade
(%) (%) (Au, g/t)
Conc.(1) Waste Fines Conc.(1) Waste Fines Conc.(1) Waste Fines
Shaft SZ LOM 6.47 33.6 66.4 0.1 86.8 13.2 0.2 16.73 1.28 9.66
SZ High Grade 9.74 44.5 55.5 0.1 92.0 8.0 0.3 20.17 1.40 18.60
SZ Low Grade 4.68 34.8 65.2 0.1 93.5 6.5 0.2 12.58 0.46 8.99
SZ Deep 3.41 32.4 67.6 0.1 35.6 64.4 0.2 3.74 3.25 6.32
Cow CZ LOM 3.95 65.7 34.3 6.8 64.0 36.0 5.6 3.85 4.14 3.24
CZ Low Grade 3.45 65.6 34.4 4.7 96.2 3.8 7.1 5.06 0.38 5.21
CZ High Grade 14.05 70.0 30.0 9.1 99.7 0.3 5.3 20.01 0.15 8.14
Valley VZ LOM 5.77 61.2 38.8 5.8 98.4 1.6 11.1 9.27 0.24 5.77
VZ Low Grade 2.90 56.3 43.7 5.4 95.5 4.5 7.3 4.92 0.29 3.86
VZ High Grade 5.96 43.0 57.0 6.3 97.6 2.4 8.0 13.53 0.25 7.65
SZ Average 6.07 36.3 63.7 0.1 77.0 23.0 0.2 13.30 1.60 10.89
CZ Average 7.15 67.1 32.9 6.9 86.6 13.4 6.0 9.64 1.56 5.53
VZ Average 4.88 53.5 46.5 5.8 97.2 2.8 8.8 9.24 0.26 5.76
Global Average 6.04 50.7 49.3 3.9 85.9 14.1 4.5 10.99 1.18 7.74

(1) Concentrate mass recovery, gold distribution, and grade values include fines.

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Figure 13-6: Mineral sorting grade recovery curves

The XRT was successful in recovering 70% to 94% of the gold after four roughing stages targeting sulphide bearing rock with only 23% to 37% mass pull. The implementation of a laser scavenging step to collect quartz particles increased gold recovery on average by approximately 2% for Shaft samples and approximately 9% for Cow and Valley samples. However, the associated mass recovery increased by 19% on average; ranging between 7% and 32%. In general, Shaft Zone samples had lower mass recoveries at the laser stage. With further testing, it may be possible to optimize the mineral sorter setting for quartz recovery to maintain gold recovery and limit mass pull.

The samples prepared and sent to Steinert were screened to the designated feed sizes (-60 mm/+10 mm or -35 mm/+10 mm), however there were fines generated during transport, material handling, and testing. The mass and gold recoveries of the generated fines (-8 mm) collected at the end of the tests were included in the total recovery and grade. It is critical to consider the fines during circuit design as they represent an average of 5% of the gold fed at the mineral sorting stage. In the testwork, the concentrate was targeted for separation by air jet while the fines reported with the waste to the conveyor belt and then were screened out. In operations, the waste will be removed by air jetting and the fines will report with the concentrate (Steinert, 2019).

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Mineral sorter Performance

Table 13-14: Summary - Average mineral sorting recoveries

Zone Feed grade
(Au, g/t)
Mass recovery
(%)
Au recovery (%) Conc. grade
(Au, g/t)
Waste grade
(Au, g/t)
Shaft Zone 6.8 48.2 87.6 12.9 0.9
Cow Zone 6.6 63.0 87.0 9.4 1.9
Valley Zone 4.4 56.6 97.6 8.1 0.2

The average mass recovery of the Cow Zone and Valley Zone mineral sorting concentrates were higher than the Shaft Zone mineral sorting concentrates. Although gold recoveries for the majority of the tested samples were higher than 87%, SZ Deep, CZ LOM and CZ (-35 mm/+10 mm) samples were outliers with lower recoveries. The global average recovery increases to 95.7% excluding these outlying data points. Further testwork is required to determine the response to mineralogical variation and to optimize the mineral sorting settings.

Effect of Particle Size

The Shaft Zone and Cow Zone samples of -60 mm/+10 mm size fraction, which were outside the recommended top size to minimum size range of 3:1, were re-crushed to -35 mm/+10 mm and re-submitted to the mineral sorting procedure. The results of re-runs are presented in Table 13-12. For the Shaft Zone, the mass recovery improved significantly from an average of 65% to 44% without compromising the gold recovery. However, for the Cow Zone, gold recovery dropped unexpectedly. Although the mass pull was higher, 4.6% of gold was reported to waste. The testwork on the -35mm/+10mm size range with the variability samples followed the same trend for Shaft Zone.

13.1.4. Flotation Testwork

Samples

Kinetic flotation tests were conducted on: fine fraction gravity tails, fine fraction of whole rock composites, mineral sorter concentrate, and a blend of mineral sorter concentrate with fines.

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The gravity tails composites were produced from bulk gravity concentration tests, while the whole rock samples consisted of the -25 mm fines. The effect of grind size on flotation performance at target P80 values of 200, 150 and 100 μm was tested on these samples. Whole rock variability composites (SZ1, SZ2, SZ3 and SZ4) were tested at two target P80 values of 200 and 400 μms. The results of the flotation tests on the fines are provided in Table 13-15. Variability fines of CZ and SZ were also tested at 100 μm and 200 μm (Table 13-16).

Mineral sorting concentrate of CZ and SZ variability samples were tested at 100 μm and 200 μm. The same mineral sorter concentrate samples were blended with their generated fines and tested at 100 μm and 200 μm. The results are provided in Table 13-17.

Table 13-15: Flotation test results - Fines

Test ID Feed type Grind size
(P
80, μm)
Au grade
(g/t)
Mass pull
(%)
Au recovery
(%)
Target Actual Head Conc.(1) Tails 9 min 20 min 9 min 20 min
F1 Gravity tails 200 248 2.11 13.5 0.04 15.4 21.0 98.4 98.9
F2 Gravity tails 150 205 2.56 14.0 0.05 18.0 23.9 98.5 98.8
F3 Gravity tails 100 131 2.57 11.2 0.04 22.7 31.0 98.9 99.2
F10 Whole rock 200 178 3.18 14.11 0.03 18.3 22.5 99.3 99.5
F11 Whole rock 150 123 3.58 16.42 0.04 17.2 21.6 99.1 99.3
F12 Whole rock 100 75 3.20 12.24 0.03 20.5 26.0 99.3 99.5
F-SZ1-A Whole rock 200 221 12.04 47.24 0.06 22.9 25.4 99.6 99.8
F-SZ1-B Whole rock 400 351 10.75 44.73 0.21 21.2 23.9 98.4 99.4
F-SZ2-A Whole rock 200 131 15.46 35.42 0.10 37.7 43.5 99.6 99.6
F-SZ2-B Whole rock 400 211 14.34 36.80 0.06 33.9 38.9 99.7 99.8
F-SZ3-A Whole rock 200 144 7.01 30.23 0.06 19.1 23.1 99.3 99.5
F-SZ3-B Whole rock 400 234 5.41 27.73 0.02 15.6 19.4 99.7 99.7
F-SZ4-A Whole rock 200 89 2.74 9.61 0.01 21.7 28.4 99.6 99.7
F-SZ4-B Whole rock 400 156 2.86 11.84 0.03 18.7 24.0 99.1 99.2
Minimum 15.4 19.4 98.4 98.8
Average 21.2 26.1 99.1 99.4
Maximum 37.7 43.5 99.7 99.8
Standard deviation 6.3 6.7 0.5 0.3

(1) Concentrate and tailings grades presented are at 9 min.

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Table 13-16 Flotation test results - Variability composite fines

Test ID Feed type Grind size
(P80, μm)
Au grade
(g/t)
Mass pull
(%)
Au recovery
(%)
Target Actual Head Conc.(1) Tails 9 min 20 min 9 min 20 min
CZ-LOM-F1 Fines 200 180 4.51 38.6 0.11 11.4 13.5 97.8 98.1
CZ-LOM-F2 Fines 100 205 4.07 18.5 0.29 20.8 25.0 94.3 95.2
CZ-Low-F1 Fines 200 131 6.90 33.5 0.07 20.4 23.8 99.2 99.4
CZ-Low-F2 Fines 100 178 6.27 22.2 0.05 28.1 31.8 99.5 99.6
CZ-High-F1 Fines 200 123 21.68 91.2 0.15 23.7 25.1 99.5 99.7
CZ-High-F2 Fines 100 75 13.60 40.6 0.15 33.2 38.9 99.3 99.6
SZ-LOM-F1 Fines 200 300 10.97 67.0 0.12 16.1 17.0 98.1 99.1
SZ-LOM-F2 Fines 100 133 9.74 44.6 0.08 21.7 24.3 99.3 99.4
SZ-Low-F1 Fines 200 182 7.35 34.3 0.04 21.3 23.4 99.4 99.6
SZ-Low-F2 Fines 100 124 7.54 27.9 0.09 26.8 30.3 99.1 99.2
SZ-High-F1 Fines 200 213 18.20 75.3 0.11 24.0 28.3 99.1 99.6
SZ-High-F2 Fines 100 128 19.78 67.2 0.08 29.3 32.9 99.7 99.7
SZ-Deep-F1 Fines 200 214 3.02 19.2 0.02 15.6 18.5 99.2 99.5
SZ-Deep-F2 Fines 100 127 3.08 13.3 0.04 22.9 26.4 98.9 99.0
Minimum 15.4 19.4 98.4 98.8
Average 21.2 26.1 99.1 99.4
Maximum 37.7 43.5 99.7 99.8
Standard deviation 6.3 6.7 0.5 0.3

(1) Concentrate and tailings grades presented are at 9 min.

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Fines Flotation

As seen in Table 13-15 and Table 13-16, regardless of grind size, the average gold recovery of fines flotation achieved was approximately 99% after 9 minutes ("min") flotation. In general, an increase in mass pull was observed with decreasing grind size, with no discernible improvement in recovery. It is therefore recommended to use a flotation time of 9 min at a targeted grind size of 200 μm for fines fraction.

A graph of the gold recovery as a function of flotation time is presented in Figure 13-7. The plot illustrates that gold recovery reaches a plateau after 9 minutes beyond which additional flotation time does not improve recovery. While gold recovery is not improved, Figure 13-8 illustrates that increasing flotation time from 9 min to 20 min results in an average increase of approximately 5% in mass pull for an average 0.2% increase in gold recovery.

Figure 13-7: Gold recovery flotation kinetics

(Hansuld and Gajo, 2019)

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Figure 13-8: Impact of flotation time on mass pull and gold recovery

(Hansuld and Gajo, 2019)

Mineral Sorter Concentrate Flotation

Table 13-17 shows that the mineral sorter concentrate flotation average gold recovery was higher than 98.6% after 9 min of flotation. In general, an increase in mass pull was observed with decreasing grind size, without any noticeable improvement in recovery. CZ-LOM blend of mineral sorter concentrates, and fines achieved 72% and 78% at 9 min flotation and >99% at 15 min. Further testwork is recommended on mineral sorter concentrate and fines blend.

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Table 13-17: Flotation test results - Mineral sorter concentrate

Test ID Feed type Grind size
(P80, μm)
Au grade
(g/t)
Mass pull
%
Au recovery
(%)
Target Actual Head Conc.(1) Tails 9 min 15 min 9 min 15 min
CZ-LOM-MSC-F1 MSC 100 116 2.08 9.2 0.04 22.2 29.1 98.6 99.3
CZ-LOM-MSC-F2 MSC 200 200 2.06 14.1 0.03 14.4 19.6 98.6 98.8
CZ-LOM-Blend-F1 MSC + Fines 100 101 9.06 24.1 3.43 27.3 36.3 72.4 99.8
CZ-LOM-Blend-F2 MSC + Fines 200 174 4.76 18.3 1.32 20.2 26.0 77.9 99.7
VZ-LOM-MSC-F1 MSC 100 101 8.49 24.5 0.02 34.6 42.3 99.8 99.9
VZ-LOM-MSC-F2 MSC 200 197 10.15 32.9 0.04 30.8 34.7 99.7 99.8
VZ-LOM-Blend-F1 MSC + Fines 100 97 6.88 20.1 0.04 34.2 38.7 99.6 99.7
VZ-LOM-Blend-F2 MSC + Fines 200 201 1.21 3.1 0.06 37.9 43.4 96.9 97.7
Minimum 14.4 19.6 72.4 97.7
Average 27.7 33.8 93.0 99.3
Maximum 37.9 43.4 99.8 99.9
Standard deviation 7.63 7.74 10.40 0.71

(1) Concentrate and tailings grades presented are at 9 min.

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13.1.5. Gravity Concentration

Gravity concentration tests were performed on the blend of mineral sorter concentrate and flotation concentrate prior to leach tests. The samples were first subjected to gravity concentration using a lab scale Knelson concentrator and further concentrated with Mozley table. The average gold recovery was 28.1%.

13.1.6. Leaching Testwork

A leaching program was conducted and included flotation rougher concentrates, mineral concentrate, and blended flotation/mineral sorter concentrates at 70:30, 50:50 and 30:70 of fines- to-coarse ratios. The fines-to-coarse proportion for operations had not been established when the tests were performed, the testwork program was designed to cover a range of scenarios. The samples were prepared to a pulp density of 45% (weight/weight ["w/w"]) solids, with the exception of the flotation rougher concentrate leach tests that were run at 35% (w/w) solids. All leaching tests were conducted at a target pH of 11 to 11.5 and dissolved oxygen levels of 6 parts per million ("ppm") to 8 ppm. A summary of the leaching conditions and results for individual tests are presented in Table 13-18 and averages by sample type are presented in Table 13-19.

Fines flotation concentrate, mineral sorter concentrate flotation concentrate and mineral sorter concentrate of variability composites were blended in proportions, which would represent the pre-concentrate production and leached at 45 μm and 75 μm with and without pre-treatment. Results of the leach tests are presented in Table 13-19 and the averages are presented in Table 13-21.

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Table 13-18: Summary of leaching results

Test ID Sample ID Test conditions Results
 Feed K80 Leach K80 Leach time Pb(NO3)2  NaCN  Adjusted
NaCN cons.
 CaO cons. Au grade    Au recovery Ag grade    Ag recovery
Residue Calc. head Residue Calc. head
µm µm hr g/t g/L kg/t kg/t g/t g/t % g/t g/t %
CN-1 F4-G Rougher Conc. 75 ~71 72 0 2.0 0.55 1.23 1.34 12.64 89.4 4.40 14.48 69.6
CN-2 F4-G Rougher Conc. 30 29.8 72 0 2.0 0.83 1.89 0.82 15.05 94.6 3.00 15.37 80.5
CN-3 F4-G Rougher Conc. 45 ~45 72 0 2.0 0.48 1.72 1.13 15.94 92.9 3.30 16.22 79.7
CN-77A-1 77A MSC 45 53 48 0 0.5 0.28 2.40 0.64 15.84 96.0 1.53 12.47 87.7
CN-77A-2 77A MSC 45 52 48 200 0.5 0.32 1.48 0.72 17.02 95.8 1.60 13.39 88.1
CN-77A-3 77A MSC 45 54 48 200 0.5 0.35 1.34 0.65 15.92 95.9 1.50 12.36 87.9
CN-77B-1 77B MSC 45 46 48 0 0.5 0.20 0.87 0.34 7.77 95.7 0.65 6.03 89.2
CN-77B-2 77B MSC 30 35 48 0 0.5 0.19 0.93 0.17 7.92 97.8 0.73 6.43 88.6
CN-77C-1 77C MSC 45 47 48 0 0.5 0.10 0.67 0.06 2.38 97.3 0.50 2.14 76.7
CN-79A-1 79A MSC 45 44 48 0 0.5 0.22 0.97 0.31 12.67 97.6 0.50 9.46 94.7
CN-79B-1 79B MSC 45 43 48 0 0.5 0.16 0.79 0.20 7.70 97.5 0.55 5.69 90.3
CN-79B-2 79B MSC 30 32 48 0 0.5 0.21 0.83 0.14 7.27 98.1 0.63 5.88 89.2
CN-79C-1 79C MSC 45 49 48 0 0.5 0.09 0.61 0.05 1.46 96.8 0.50 1.49 66.4
CN-5050-1 Sample 1 (50:50) 45 48 48 0 0.54 0.24 0.85 0.40 9.30 95.7 1.50 2.80 46.4
CN-5050-2 Sample 1 (50:50) 45 45 48 0 0.35 0.18 0.79 0.41 9.42 95.7 1.50 2.74 45.3
CN-7030-1 Sample 2 (70:30) 45 42 48 0 0.64 0.33 0.83 0.44 9.12 95.1 1.67 3.12 46.5
CN-7030-2 Sample 2 (70:30) 45 43 48 0 0.45 0.23 0.83 0.45 9.28 95.1 1.67 3.01 44.6
CN-7030-3 Sample 2 (70:30) 45 42 48 0 0.35 0.17 0.90 0.46 9.18 95.0 1.63 2.99 45.4
CN-3070-1 Sample 3 (30:70) 45 49 48 0 0.47 0.21 0.74 0.27 8.43 96.8 1.20 2.17 44.8
CN-3070-2 Sample 3 (30:70) 45 51 48 0 0.35 0.16 0.74 0.28 8.58 96.7 1.13 2.14 47.2

 

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Table 13-19: Leaching results of flowsheet blends

Test ID Sample ID Test conditions Results
Feed K80  Leach K80  Pre-aeration time  Leach time  NaCN  Adjusted NaCN
cons. 
CaO cons.  Au grade Au recovery
Residue Calc. head
µm µm hr hr g/L kg/t kg/t g/t g/t %
CN-CZ-LOM-1 CZ-LOM Gravity Tails 45 51 10 30 0.50 0.13 1.4 0.15 2.0 92.7
CN-CZ-LOM-2 45 50 0 40 0.50 0.27 0.7 0.11 2.0 94.5
CN-CZ-LOM-3 75 64 0 40 0.50 0.22 0.6 0.18 2.3 92.3
CN-CZ-Low-1 CZ-Low Gravity Tails 45 52 10 30 0.50 0.22 1.3 0.21 3.0 93.0
CN-CZ-Low-2 45 51 0 40 0.50 0.30 0.8 0.32 4.4 92.7
CN-CZ-Low-3 75 77 0 40 0.50 0.33 0.9 0.42 4.3 90.3
CN-CZ-High-1 CZ-High Gravity Tails 45 51 10 30 0.50 0.26 1.5 0.50 8.0 93.8
CN-CZ-High-2 45 53 0 40 0.50 0.35 1.1 0.57 9.1 93.8
CN-CZ-High-3 75 75 0 40 0.50 0.21 0.8 0.56 6.7 91.6
CN-VZ-LOM-1 VZ-LOM Gravity Tails 45 51 10 30 0.50 0.20 1.3 0.34 8.1 95.8
CN-VZ-LOM-2 45 51 0 40 0.50 0.27 0.9 0.42 7.8 94.6
CN-VZ-LOM-3 75 71 0 40 0.50 0.21 0.8 0.51 8.3 93.9
CN-VZ-Low-1 VZ-Low Gravity Tails 45 52 10 30 0.50 0.18 1.3 0.26 4.9 94.7
CN-VZ-Low-2 45 55 0 40 0.50 0.25 0.8 0.24 4.2 94.3
CN-VZ-Low-3 75 73 0 40 0.50 0.23 0.7 0.39 5.0 92.3
CN-VZ-High-1 VZ-High Gravity Tails 45 52 10 30 0.50 0.18 1.2 0.85 12.7 93.3
CN-VZ-High-2 45 50 0 40 0.50 0.26 1.1 0.87 12.2 92.9
CN-VZ-High-3 75 65 0 40 0.50 0.28 1.0 1.07 12.8 91.6
CN-SZ-LOM-1 SZ-LOM Gravity Tails 45 48 10 30 0.50 0.55 3.0 0.62 21.8 97.2
CN-SZ-LOM-2 45 53 0 40 0.50 0.37 1.5 0.73 21.0 96.6
CN-SZ-LOM-3 75 71 0 40 0.50 0.36 1.4 0.87 20.3 95.7
CN-SZ-Low-1 SZ-Low Gravity Tails 45 47 10 30 0.50 0.29 2.6 0.56 15.3 96.4
CN-SZ-Low-2 45 51 0 40 0.50 0.28 1.6 0.29 8.8 96.7
CN-SZ-Low-3 75 66 0 40 0.50 0.32 1.3 0.56 13.6 95.9
CN-SZ-High-1 SZ-High Gravity Tails 45 51 10 30 0.50 0.25 1.7 1.15 26.4 95.7
CN-SZ-High-2 45 52 0 40 0.50 0.44 1.3 0.58 14.7 96.0
CN-SZ-High-3 75 62 0 40 0.50 0.50 1.2 1.46 28.7 94.9
CN-SZ-Deep-1 SZ-Deep Gravity Tails 45 49 10 30 0.50 0.17 1.5 0.15 3.4 95.6
CN-SZ-Deep-2 45 50 0 40 0.50 0.25 1.1 0.17 4.7 96.4
CN-SZ-Deep-3 75 64 0 40 0.50 0.23 1.1 0.36 18.5 98.1

 

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Results

In general, excellent gold leaching recoveries between 95% and 98% were observed for all tests performed on MSC and blended MSC/flotation concentrate samples. A 3-4% decrease in recovery was observed for the rougher flotation concentrates when leached alone.

Silver ("Ag") recoveries were quite variable averaging 77% and 86% for the flotation concentrates and mineral sorter concentrates respectively. While gold recoveries were excellent for the blended samples, silver recoveries for the same samples averaged 46%.

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Table 13-20: Leach test result averages by sample type

Sample ID Results
Feed
K80
Adjusted
NaCN cons.
CaO
cons.
Au grade Au recovery Ag grade Ag recovery
Residue Calc.
head
Residue Calc.
head
µm kg/t kg/t g/t g/t % g/t g/t %
Fines flotation Concentrate Average 50 0.62 1.61 1.1 14.54 92.3 3.57 15.4 76.6
Mineral sorter Concentrate Average 42 0.21 1.09 0.33 9.59 96.8 0.87 7.53 85.9
50:50 Blend Average 45 0.21 0.82 0.40 9.36 95.7 1.50 2.77 45.9
70:30 Blend Average 45 0.24 0.85 0.45 9.20 95.1 1.66 3.04 45.5
30:70 Blend Average 45 0.19 0.74 0.28 8.51 96.8 1.17 2.16 46.0

 

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Leaching of blended pre-concentrates at approximately 50 μm on average resulted in 94% gold recovery. A range of 0.8-2.4% decrease in recovery was observed for leaching at 75 μm compared to 45 μm. In general, the pre-aeration stage decreased cyanide consumption insignificantly; however, lime consumption increased 0.6 kilograms per tonne ("kg/t") on average.

Table 13-21: Leach test result averages for flowsheet blends

Sample ID Targeted
feed F80
Results
Leach
K80
Adjusted
NaCN cons.
CaO
cons.
Au grade Au
recovery
Residue Calc.
head
µm µm kg/t kg/t g/t g/t %
Pre-aeration Average 45 50 0.24 1.7 0.48 10.6 94.8
45 μm Average 45 51 0.30 1.1 0.43 8.9 94.8
75 μm Average 75 69 0.29 1.0 0.64 12.0 93.7

The fines flotation concentrates were leached at three grinding sizes: 75 μm, 45 μm and 30 μm. With decreasing particle size, gold recovery improved, reagent consumption of lime (CaO) and cyanide (NaCN) increased as expected with the exposure of additional mineral surfaces produced by finer grinding. The flotation concentrates were leached for 72 hours while the mineral sorting products and blended samples were leached for 48 hours.

Figure 13-9: Leach recovery and residue grade as a function of grind size

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Reagent Consumption

When comparing the tests conducted at a P80 of 45 μm, the highest lime and cyanide consumptions of 0.48 kg/t and 1.72 kg/t respectively, were in the tests where the fines flotation concentrates were leached on their own. The average lime and cyanide consumptions when leaching the mineral sorting concentrates were considerably lower at 0.21 kg/t and 1.09 kg/t respectively. The lime consumption of the blends was lower than either the mineral sorter concentrate, and fines flotation concentrate consumptions. The cyanide consumption of the blends was equivalent to that of the mineral sorter concentrates when leached on their own.

13.1.7. Cyanide Destruction Testwork

Cyanide destruction testwork was performed on a bulk gravity tailings sample of the 50:50 (fines to coarse ratio) blend of flotation concentrate and mineral sorter concentrate at Cyanco following cyanidation. To reduce the reagent consumption rates, a pre-aeration step was added to leaching ahead of cyanide destruction. The addition of the pre-aeration step reduced the cyanide consumption and the amount of total cyanide in leach tails by reducing the formation of stable metal cyanide complexes, which were suspected to be cyanide consumers, and as a result reduced the detox reagent consumption rates. Targeted cyanide levels were successfully achieved with both conditions.

13.1.8. Thickening, Filtration and Rheology Testwork by Pocock Industrial

13.1.8.1. Samples Tested

Three samples were sent to Pocock Industrial in Salt Lake City, Utah for thickening, filtration and rheology testing; these included flotation tailings, pre-leach thickener feed and detoxed tailings. The characteristics of the as-received materials are summarized in Table 13-22.

Table 13-22: Sample characterization

Sample

Particle size
(P80, μm)

pH
(as received)

SG for
calculations

Flotation Tailings

105

7.8

2.76

Pre-leach Thickener Feed

41

10.9

2.88

Detoxed Tailings

36

9.2

2.97

 

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13.1.8.2. Thickening

Flocculant Screening

All three samples were submitted to flocculant screening tests to identify the best reagent for flocculation of solids to promote rapid settling and reducing suspended solids concentration in overflow. The screening tests also provided an indication of the required reagent dosing. The selected flocculant for all three samples was a high molecular weight, 10% charge anionic polyacrylamide.

Once an appropriate flocculant was selected, static settling tests were conducted to provide an estimate of the optimized operating parameters, including feed slurry density and flocculant dosing, for dynamic testing. The recommended flocculant dosing for dynamic testing ranged between 24 grams per tonne ("g/t") and 36 g/t.

Dynamic Testing

Dynamic thickening tests were performed on each material to determine the recommended maximum hydraulic design basis for high-rate thickener design. Expected underflow solids concentrations and overflow suspended solids concentrations were also determined in testing. Table 13-23 provides high-rate thickener design criteria and operating parameters for each material.

Table 13-23: Recommended high-rate thickener operating parameters

Sample Feed pulp
density
(%, w/w)
Flocculant
dose
(g/t)
Design net
feed loading
(m3/m2/h)
Predicted
TSS
(mg/L)
Predicted
U/F density
(%, w/w)
Flotation Tailings 14.8 24 - 26 3.7 150-250 71%
Pre-leach Thickener Feed 15.0 27 - 30 4.0 150-250 62%
Detoxed Tailings 17.2 32 - 36 3.8 150-250 64%

The overflow clarities achieved were shown to be in the range of what is generally acceptable. For further reduction of overflow suspended solids concentration, a polish filtration step may be required to treat the thickener overflow.

Each of the three thickening applications requires dilution of feed to between 13% and 17% (w/w) solids.

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The suggested maximum design hydraulic loading rate is as follows:

 The flotation tailings material is 3.7 m3/m2/h with a maximum recommended underflow density of 71% (w/w);

 The pre-leach thickener feed material is 4.0 m3/m2/h with a maximum recommended underflow density of 62% (w/w);

 The detoxed tailings material is 3.8 m3/m2/h with a maximum recommended underflow density of 64% (w/w).

13.1.8.3. Rheology

Rheological measurements were performed on thickened samples on each of the flotation tailings, pre-leach thickener feed and detoxed tailings materials. A typical yield stress vs. percent solids is presented in Figure 13-10.

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Figure 13-10: Yield value versus percent solids

(Source: Pocock Industrials, 2019)

Rheology results indicate that for each of the materials, the yield value was less than 30 pascals ("Pa") at the maximum thickened underflow density recommended from the thickening tests. For these materials, a heavy-duty thickener rake mechanism is recommended to minimize the thickener underflow density due to insufficient rake torque.

13.1.8.4. Filtration Tests

Pressure filtration tests were conducted on both flotation and detox tailings. The tests were done in a 60 mm chamber, using air blow with and without membrane squeeze. The test conditions and main filtration results are presented in Table 13-24.

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Table 13-24: Pressure filtration results and design parameters

Sample Membrane
squeeze
Feed pulp
density
(%, w/w)
Dry bulk
density
(t/m3)
Cake
thickness
(mm)
Cycle time
(min)
Cake
moisture
(%)
Flotation Tailings N 68.3 1.49 60.0 12.0 8.5
Flotation Tailings Y 68.3 1.53 58.3 12.5 8.0
Detoxed Tailings N 62.7 1.50 60.0 12.0 13.9
Detoxed Tailings Y 62.7 1.57 57.4 12.5 12.7

The results demonstrate that both with and without the membrane squeeze, both tailings materials dewatered well within an acceptable cycle time (12 min to 12.5 min). The cake moisture achieved for the flotation tailings and detoxed tailings ranged from 8.0% to 8.5% and from 12.7% to 13.9%, respectively. Obtained results for detoxed tailings are in the industry standard for tailings dry stacking (above 80% solid w/w).

13.1.9. Mass Pull Projection

The average recovery and mass pull results presented in this section were for the pre-concentrate blends prepared for the testwork program. The blends were prepared using a fixed proportion of each mineralized zone considering the preliminary mine plan at the time. Annual recovery projections are expected to differ from the average testwork results according to the final mine plan proportions of mineralized zones.

The average gold recovery and mass pull results from the testwork performed are summarized in Table 13-25. The projected pre-concentrate transferred to the QR Mill is 21.2% of the Mine Site Complex feed mass and the overall gold recovery is 92.2%.

Table 13-25: Average gold recovery and mass pull for each process step

Process step Average stage
mass pull (%)
Average Au stage
recovery (%)
Crushing circuit fines 30.0 36.0
Crushing circuit coarse 70.0 64.0
Flotation concentrate 20.0 98.9
Coarse mineral sorting concentrate 42.6 93.9
Pre-concentrate (QR Feed) 21.2 95.3
Gravity N/A 28.1
Leaching of pre-concentrate N/A 95.5
Overall Au Recovery   92.2

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13.2. Shaft Zone Bulk Sample Testing

The metallurgical testwork program was developed by BBA and ODV in order to confirm mineral sorter performance and mineralized material behaviour to mineral processing and extraction processes. This program included one bulk sample from Shaft Zone. The testwork was conducted in 2020 at Tomra, and 2021-2022 at SGS.

13.2.1. Mineral Sorting Testwork

Mineral sorting testwork was conducted in Wedel, Germany by Tomra in 2020. The initial sample was 2,213 kg from the Shaft Zone. The sample was screened, the undersize material (-10 mm) was removed, and two ranges of grain sizes, +10-25 mm and +25 mm, were generated. In Test Series 1, the material +25 mm was sorted, while in Test Series 2 the fine-grained material +10-25 mm was sorted. The sample preparation flowsheet is shown in Figure 13-11. Tomra used XRT sensors to detect sulphides, and laser sensors to detect quartz particles.

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'Figure 13-11: Sample preparation flow diagram

(Source: Shibistova, 2021)

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Flowsheet and Results

The flowsheet used to produce the mineral sorter concentrates is a "cascade" method, where the sorting is conducted in series with increased sorting sensitivity. The first two sorting steps were performed with the XRT sensor to produce a high-medium grade concentrate and a low-grade concentrate. The waste from the XRT tests was sorted with the laser sensor in scavenger tests. The Series 1 sample underwent additional screening and a second laser sorting stage after the first scavenger test to produce a massive quartz and a quartz vein product. The flowsheet used can be seen in Figure 13-12.

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Figure 13-12: Mineral sorting testwork flowsheet

(Source: Shibistova, 2021)

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The testwork showed that, in both tests, significant upgrading was achieved in the first sorting stage, regardless of the particle size. Both high-medium grade sulphide concentrates achieved gold grades of 6.1-6.2 g/t in mass pulls ranging from 35-42% with 93-96% recovery. The addition of the second stage of XRT sorting combined with screening was able to increase the mass pulls by 10-12%, for total mass pull to mineral sorting concentrates of 48-53%, and total gold recoveries of 99.2-99.6%. Detailed results of the products are shown in Table 13-26Error! Reference source not found..

Table 13-26: Mineral sorting results

    Sample
+25mm
Sample
+10-25mm
Screened fines -10mm Au (g/t) 6.3
5.6
Feed Au (g/t) 2.3 2.8
2.3 2.3
Set 1-Waste Au (g/t) 0.1 0.3
0.5 0.6
Au (g/t) 6.2 6.1
Set 1- Conc. 5.8 4.5
Mass pull % 35.5 42.4
96.4 93.3
Set 2-Waste Au (g/t) 0.0 0.0
0.3 0.3
Screened fines Au (g/t) 1.7 4.0
0.1 0.6
Set 2-Conc S (%) 0.6 0.6
47.5 52.7
Total Au Recovery (%) 99.2 99.6

13.2.2. Composite Development for SGS Program

Three composite samples were prepared by combining the undersize material with combined concentrates from the Tomra mineral sorting testwork. Figure 13-13 shows how the mineral sorter concentrate samples were combined to create the mineral sorter concentrate ("OS Conc") sample. Each composite has the same total mass and it is the ratio of undersize ("Prep fines") to OS Conc that varies. Mineral sorter concentrate represents 67.9% of blend 1, 45% of blend 2, and 27.8% of blend 3.

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Figure 13-13: Sample preparation - Mineral sorter concentrate

(Source: Sun, 2022)

Table 13-27: Recipes of composite samples

Sample ID Weight, kg Total mass, kg
Prep fines OS conc
Blend 1 78.1 165.4 243.5
Blend 2 133.9 109.6 243.5
Blend 3 175.7 67.8 243.5

Sample head assays are presented in Table 13-28. Blend 1 has the highest gold grade with 8.81 g/t, blend 2 has the second highest with 6.95 g/t, and blend 3 has the lowest with 6.22 g/t, making the overall average grade of 7.33 g/t Au. All three blends have similar silver grades leading to an average of 4.44 g/t Ag.

Table 13-28: Head assays results summary

Sample ID Au
g/t
Ag
g/t
Cu
%
Fe
%
Zn
%
S
%
TC
%
TOC
%
Blend 1 8.81 4.28 0.02 5.90 0.14 5.48 0.54 0.11
Blend 2 6.22 4.61 0.02 6.21 0.13 6.22 0.49 0.12
Blend 3 6.95 4.42 0.02 6.79 0.11 6.38 0.47 0.12
Average 7.33 4.44 0.02 6.30 0.13 6.03 0.50 0.12

13.2.3. Rougher Flotation Testwork Results

The samples were tested under three different grind sizes: 150 μm (F1), 100 μm (F2), and 75 μm (F3). The effect of the grinding size on rougher flotation was observed while keeping the same reagent dosages, pH, rougher stages, and flotation durations. These conditions are shown in Table 13-29.

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Table 13-29: Rougher flotation test conditions

Test # Grind size
K80
µm
Reagent pH Rougher
Stages
Time
min
PAX
g/t
MIBC
g/t
F1 150 30 19 natural 4 8
F2 100 30 19 natural 4 8
F3 75 30 19 natural 4 8

Figure 13-14, Figure 13-15, and Figure 13-16 present the flotation kinetics for each blend and each rougher flotation test condition. These figures show that all samples reach 97%+ recovery in eight minutes of flotation.

Figure 13-14: Flotation time versus gold recovery - Blend 1

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Figure 13-15: Flotation time versus gold recovery - Blend 2


 

Figure 13-16: Flotation time versus gold recovery - Blend 3

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Figure 13-17, Figure 13-18, and Figure 13-19 show the effects of the grind sizes on the flotation gold recoveries. For blend 1, F1 (150 μm) has the highest gold recovery with 99.3%, while F2 (100 μm) has the lowest gold recovery with 97.6%. For blend 2, F2 (100 μm) has the highest gold recovery with 99.3%, while F3 (75 μm) has the lowest gold recovery with 98.2%. For blend 3, F2 (100 μm) has the highest gold recovery with 99.3% while F3 (75 μm) has the lowest gold recovery with 98.6%. Based on these results, the design grind size is determined to be 100 μm.


Figure 13-17: Grind size versus gold recovery - Blend 1

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Figure 13-18: Grind size versus gold recovery - Blend 2


Figure 13-19: Grind size versus gold recovery - Blend 3

Rougher flotation test results for each blend at 100 μm grind size are shown in Table 13-30. Gold recovery ranged from 97.6-99.3% with grades from 44.3-52.8 g/t at mass pulls of 13.9-16.1%.

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Table 13-30: Rougher flotation test results

Test # Grind Size
µm
Weight
%
Assays, g/t, % Distribution
Au Ag Cu Fe S TOC Au Ag Cu Fe S TOC
g/t g/t % % % % g/t g/t % % % %
Blend-1-F2 100 13.9 52.8 27.9 0.06 32.8 38.4 0.34 97.6 94.7 64.3 82.0 98.1 36.3
Blend-2-F2 100 15.3 44.3 26.4 0.04 33.5 38.5 0.31 99.3 95.0 60.5 83.7 98.4 40.0
Blend-3-F2 100 16.1 45.8 25.9 0.04 34.7 39.9 0.28 99.3 95.2 62.2 85.8 98.4 44.5

 

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13.2.4. Cleaner Flotation Testwork Results

The cleaner flotation samples were tested under three different grind sizes: 100 μm, 45 μm, and 25 μm. The effect of regrinding on cleaner flotation was observed while keeping the same reagent dosages, pH, cleaner stages, and flotation durations. These conditions are shown in Table 13-31.

Table 13-31: Cleaner flotation test conditions

Grind size
K80
µm
Reagent pH Cleaner
Stages
Time
min
PAX
g/t
MIBC
g/t
No 5 2 natural 2 8
45 5 2 natural 2 8
25 5 2 natural 2 8

Table 13-32 shows that regrinding has a negative effect on gold and silver recoveries for blend 1 and blend 2. However, for blend 3, regrinding the sample to 46 μm improved the gold recovery by 11.1% with little impact on the silver recovery.

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Table 13-32: Cleaner flotation test results

Sample
ID
Re-
grind
Weight Assays, g/t, % Distribution
Au Ag Cu Fe S TOC Au Ag Cu Fe S TOC
K80 % g/t g/t % % % % g/t g/t % % % %
Blend-1 - 10.8 62.3 34.6 0.06 39.4 46.0 0.32 96.4 86.2 41.5 75.5 91.9 23.0
Blend-1 40 8.65 76.7 39.2 0.07 41.4 48.0 0.27 95.3 83.1 39.3 63.5 77.6 17.1
Blend-1 24 3.62 153 89.0 0.14 36.7 43.3 0.57 88.4 76.1 33.8 23.8 29.5 14.8
Blend-2 - 11.8 58.6 31.1 0.06 39.9 47.0 0.31 97.1 87.2 44.6 78.6 93.6 25.0
Blend-2 40 9.43 66.0 34.0 0.07 42.6 49.2 0.23 92.6 80.3 40.9 66.8 79.1 17.2
Blend-2 22 2.97 190 107 0.15 38.2 44.6 0.47 79.4 73.2 30.1 19.1 22.6 10.4
Blend-3 - 12.4 53.1 31.1 0.05 40.7 47.1 0.25 82.0 89.0 41.3 76.5 90.1 23.7
Blend-3 46 10.7 77.9 34.6 0.06 43.4 49.0 0.21 93.3 87.5 39.0 70.5 81.5 18.8
Blend-3 24 4.64 136 68.0 0.11 38.7 44.6 0.37 85.9 76.4 33.7 27.3 31.9 13.8

 

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13.2.5. Bulk Rougher Flotation Test

The three blend's rougher flotation samples were mixed and their test results of the 3 series of 22 tests were averaged. The blend mixes were used for the subsequent extended gravity recoverable gold test ("E-GRG") and leaching tests. Table 13-33 shows the average weight recovery, Au rougher concentrate grade, Au rougher tailings grade, and Au recovery for each blend average. The blend weight recovery averages vary between 16.9% and 18.5%; Au recovery averages vary between 98.2% and 99.5%; Au rougher concentrate grade averages vary between 37.4 g/t and 38.0 g/t.

Table 13-33: Bulk rougher flotation test results summary

Test # Mass
Pull
Au, g/t Au
Recovery
% Ro Conc Ro Tailings %
Blend -1-Average 16.9 38.0 0.04 99.5
Blend -2-Average 18.0 37.4 0.17 98.2
Blend -3-Average 18.5 37.8 0.05 99.4

13.2.6. Combined Flotation Concentrate Assay

The assay results of the combined flotation concentrate are shown below. In addition to having 39.2 g/t of gold and 26.7 g/t of silver, the combined concentrate has high amounts of iron, sulphur, and copper.

Table 13-34: Assay results summary - combined flotation concentrate

Elements Assay Results
Au, g/t 39.2
Ag, g/t 26.7
Fe, % 30.9
Cl, g/t <50
S, % 34.9
Hg, g/t <0.3
F, % 0.074
Ca, g/t 1060
Cu, g/t 349
Mg, g/t 1840

 


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Elements Assay Results
Ni. g/t <300
As, g/t 4490
Bi, g/t 51.1
Cd, g/t 85.9
Pb, g/t 4790
Sb, g/t 38.6
Se, g/t <10
Te, g/t <4

13.2.7. E-GRG Test Results

The E-GRG test on the combined flotation sample was performed to understand the amenability of the sample to gravity concentration as a function of size distribution. The test results are shown in Table 13-35. The overall gold and silver gravity recoveries for the combined flotation sample are 31.8% and 14.2%, respectively.

Table 13-35: E-GRG test results summary - gold and silver

Sample
ID
P80, µm Mass, % Cumulative
Recovery, %
Concentrate
grade, g/t
Head Grade, g/t
Stage 1 Stage 2 Stage 1 Stage 2 Stage 1 Stage 2 Direct Calculated
Fconc -
Gold
112  50  0.62  0.55  17.9  31.8  1,028  39.2  37.8 
Fconc -
Silver
112  50  0.62  0.55  9.4  14.2  291  26.7  23.9 

13.2.8. E-GRG Leaching Conditions 

The leach tests were performed at 45 μm grind size, 50 wt % slurry density, and 10.8-11 pH for 48 hours.

Table 13-36: General test conditions

Grind Size, K80
µm
Pulp Density
wt %
pH Leach Time
h
45 50 10.8 - 11 48

 

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13.2.9. Leaching Test Results

The overall leaching test results for various testing conditions are shown in Table 13-37. Regardless of the testing conditions, gold recoveries varied between 95.7% and 96.8%; silver recoveries varied between 44.8% and 55.5%. The highest gold recovery was observed for B2-Fconc-L6; the highest silver recovery was observed for B3-Fconc-L4; the lowest gold recovery was observed for B1-Fconc-L1; the lowest silver recovery was observed for B2-Fconc-L5. The effects of pre- conditioning, dissolved oxygen content, and NaCN concentration are compared in more detail in the following sections.

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Table 13-37: Leaching test results for all conditions

Test # Sample ID K80
µm
Pulp
Density
%
Precondition pH DO NaCN Concentration Retention
Time
hr
Consumption Extraction
NaCN CaO Au Ag
  Period
hr  
Air/O2 Added
g/L
Maintained
g/L
kg/t kg/t % %
B1-Fconc-L1 B1-FConc 54 0.5 12 hr O2 10.8-11 >20 0.5 0.5 48 1.47 1.64 95.7 49.6
B1-Fconc-L2 B1-FConc 54 0.5 12 hr O2 10.8-11 >20 1.0 1.0 48 1.76 1.62 95.9 52.4
B1-Fconc-L3 B1-FConc 54 0.5 12 hr O2 10.8-11 >20 1.5 1.5 48 1.80 1.58 96.0 51.6
B1-Fconc-L4 B1-FConc 54 0.5   - 10.8-11 5.75 1.0 1.0 48 1.79 0.92 96.3 52.0
B1-Fconc-L6 B1-FConc 54 0.5 12 hr Air 10.8-11 5.05 1.0 1.0 48 1.67 1.52 96.7 51.5
B2-Fconc-L1 B2-FConc 57 0.5 12 hr O2 10.8-11 14.6 0.5 0.5 48 1.40 1.92 95.7 48.4
B2-Fconc-L2 B2-FConc 57 0.5 12 hr O2 10.8-11 13.54 1.0 1.0 48 1.84 1.83 95.9 52.8
B2-Fconc-L3 B2-FConc 57 0.5 12 hr O2 10.8-11 12.83 1.5 1.5 48 1.69 1.60 96.5 54.7
B2-Fconc-L4 B2-FConc 57 0.5   - 10.8-11 4.93 1.0 1.0 48 1.81 1.06 96.5 52.7
B2-Fconc-L5 B2-FConc 57 0.5 12 hr Air 10.8-11 7.39 0.5 0.5 48 0.83 1.81 95.9 44.8
B2-Fconc-L6 B2-FConc 57 0.5 12 hr Air 10.8-11 5.23 1.0 1.0 48 1.55 1.63 96.8 50.5
B3-Fconc-L1 B3-FConc 53 0.5 12 hr O2 10.8-11 13.35 0.5 0.5 48 1.30 1.75 95.6 49.7
B3-Fconc-L2 B3-FConc 53 0.5 12 hr O2 10.8-11 13.19 1.0 1.0 48 1.45 1.62 96.0 48.0
B3-Fconc-L3 B3-FConc 53 0.5 12 hr O2 10.8-11 14.49 1.5 1.5 48 1.52 1.56 95.9 48.7
B3-Fconc-L4 B3-FConc 53 0.5   - 10.8-11 5.7 1.0 1.0 48 1.53 1.39 96.0 55.5
B3-Fconc-L5 B3-FConc 57 0.5 12 hr Air 10.8-11 6.05 0.5 0.5 48 0.92 2.01 96.7 49.6
B3-Fconc-L6 B3-FConc 57 0.5 12 hr Air 10.8-11 4.78 1.0 1.0 48 1.66 1.52 96.5 49.9

 

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13.2.10. Reagent Consumption

The highest cyanide consumption of 1.84 kg/t was a result of NaCN dosage maintained at 1.0 grams per litre ("g/L") and oxygen pre-conditioning, while the lowest cyanide consumption of 0.832 kg/t was a result of NaCN dosage maintained at 0.5 g/L and air pre-conditioning, and both resulted in a 95.9% gold recovery. The highest lime consumptions of 2.01 kg/t, respectively, was a result of a NaCN dosage maintained at 0.5 g/L and air pre-conditioning, while the lowest lime consumption of 0.92 kg/t was a result of a NaCN dosage maintained at 1.0 g/L and no pre- conditioning, and the gold recoveries were 96.7% for the high consumption and 96.3% for the low consumption.

13.2.11. Leach Condition Optimization

The leach conditions were optimized around pre-conditioning, using air or oxygen, and cyanide dosages. The conditions and results are shown in Table 13-38.

Table 13-38: Test conditions and metal extractions

Test # Precondition DO NaCN Concentration Retention
Time
hr
Metal Extraction
Au Ag
Period Air/O2 Added Maintained 48 hr 48 hr
hr   g/L g/L % %
B1-Fconc-L1 12 hr O2 >20 0.5 0.5 48 95.7 49.6
B1-Fconc-L2 12 hr O2 >20 1.0 1.0 48 95.9 52.4
B1-Fconc-L3 12 hr Air >20 1.5 1.5 48 96.0 51.6
B1-Fconc-L4 - - 5.75 1.0 1.0 48 96.3 52.0
B1-Fconc-L6 12 hr Air 5.05 1.0 1.0 48 96.7 51.5
B2-Fconc-L1 12 hr O2 14.6 0.5 0.5 48 95.7 48.4
B2-Fconc-L2 12 hr O2 13.5 1.0 1.0 48 95.9 52.8
B2-Fconc-L3 12 hr O2 12.8 1.5 1.5 48 96.5 54.7
B2-Fconc-L4 - - 4.93 1.0 1.0 48 96.5 52.7
B2-Fconc-L5 12 hr Air 7.39 0.5 0.5 48 95.9 44.8
B2-Fconc-L6 12 hr Air 5.23 1.0 1.0 48 96.8 50.5
B3-Fconc-L1 12 hr O2 13.4 0.5 0.5 48 95.6 49.7
B3-Fconc-L2 12 hr O2 13.2 1.0 1.0 48 96.0 48.0
B3-Fconc-L3 12 hr O2 14.5 1.5 1.5 48 95.9 48.7
B3-Fconc-L4 - - 5.7 1.0 1.0 48 96.0 55.5
B3-Fconc-L5 12 hr Air 6.05 0.5 0.5 48 96.7 49.6
B3-Fconc-L6 12 hr Air 4.78 1.0 1.0 48 96.5 49.9

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Figure 13-20: Effect of NaCN on gold recovery

 

For all blends, increasing the NaCN dosage from 0.5 g/L to 1.0 g/L improved the gold recovery, regardless of the use of air or oxygen for pre-conditioning; however, increasing to 1.5 g/L only improved the recovery for blend 2. The impact of pre-conditioning was most apparent in the leach kinetics, as shown in Figure 13-21, Figure 13-22, and Figure 13-23.

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Figure 13-21: Leach kinetics for blend 1 at 1.0 g/L NaCN


Figure 13-22: Leach kinetics for blend 2 at 1.0 g/L NaCN

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Figure 13-23: Leach kinetics for blend 3 at 1.0 g/L NaCN

For blends 1 and 2, after 24 hours, the gold recoveries were about the same, regardless of pre- conditioning, or with air or oxygen. In blend 3, the use of air significantly impacted the overall gold recovery.

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Table 13-39: Additional assays on CIP feed

Test # Metal Extraction Additional Assays on Final Solutions
Au Ag
48 hr 48 hr CN(T) CNWAD CN(F) CNO CNS Cu Fe Zn
% % mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L
B1-Fconc-L4 96.3 52.0 649 649 569 51 820 237 14.4 139
B1-Fconc-L6 96.7 51.5 761 587 449 41 630 173 4.1 86.4
B2-Fconc-L4 96.5 52.7 724 624 569 61 860 137 6.12 119
B2-Fconc-L6 96.8 50.5 599 574 439 38 630 156 4.3 71.2
B3-Fconc-L4 96.0 55.5 574 574 499 52 710 119 6.27 95.8
B3-Fconc-L6 96.5 49.9 649 624 449 37 570 170 5.8 70.7

 

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13.2.12. Leaching Testwork Reagent Consumption

13.2.12.1. Bulk CIP Test Results

Two carbon-in-pulp ("CIP") tests were conducted on 10 kg sample of the combined flotation concentrate from the three composites. The CIP tests were performed with two carbon concentrations, 30 g/L and 50 g/L. Both tests showed good gold recoveries. With 50 g/L carbon, the gold and silver extractions were 93.6% and 58.1%. With 30 g/L carbon, the gold and silver extractions were 93.2% and 58.1%.

Table 13-40: Bulk CIP test conditions summary

    Test #      K80
µm
 Pulp
Density
%
Precondition       pH          DO      NaCN 
Concentration
 Carbon
Conc.
g/L
   Period hr      Air/O2     Added
g/L
  Maintained
g/L
Fconc-
CIP
48  50%  12 hr  O2  10.8-11  10  1.0  1.0  50 
Fconc-
CIP 2
48  50%  12 hr  O2  10.8-11  11  1.0  1.0  30 

Table 13-41: Bulk CIP test results summary

Test # Head Assays Residue Assays Consumption Gold Extraction Silver Extraction
Direct
Au
g/t
Calc'ed
Au
g/t
Direct
Ag
g/t
Calc'ed
Ag
g/t
Au g/t Ag g/t NaCN
kg/t
CaO
kg/t
Leach
(48 hr)
%
on
Carbon
%
Leach
(48 hr)
%
on
Carbon
%
Fconc-
CIP
37.7  32.2  22.3  20.5  1.18  8.2  1.74  1.52  96.6  93.6  60.9  58.1 
Fconc-
CIP 2
37.7  33.4  22.3  20.7  1.26  8.0  1.86  1.59  96.6  93.2  62.1  58.0 

 

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Figure 13-24: Gold extraction kinetics - CIP

Figure 13-25: Silver Extraction Kinetics - CIP

The CIP kinetics show that for both carbon dosages, gold extraction was relatively similar, and there were only small differences for silver extraction.

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13.3. Thickening and Filtration Tests

The objective of the thickening, filtration and rheology testing is to measure solid-liquid separation rates to predict sizing and operating parameters for full-scale dewatering equipment. Tests were performed at FLS laboratory in Midvale, Utah, on a flotation tailings composite. Process water from the flotation testing was used to represent full scale slurry sample. Characteristics are summarized in Table 13-42.

Table 13-42: As-received sample characteristic summary

Description Flotation Tailings Solid Sample Process Water
Suspended solids, wt % 84.0 -
Dissolved solids, wt % 0.00 0.01
Solids Specific Gravity 2.70 -
Liquor Specific Gravity - 1.00
pH - 8.1
D80, µm 101 -
D50, µm 37.5 -
D20, µm 11 -
D10, µm 5.7 -

13.3.1. Thickening Tests

As part of the thickening tests, five different flocculants were tested, and BASF Magnafloc MF10 was selected for the remaining tests, as it performed the best. All the tests generated clear overflow and good settling rates.

Table 13-43: Evaluated flocculants

Flocculant Charge Molecular Weight Charge Density
AN 923 VHM Anionic Medium Low
AN 910 Anionic Low Low
MF 351 Non-ionic Medium None
MF 1011 Anionic High Medium
MF 10 Anionic High Very low

 

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Figure 13-26: Settling rate vs Flocculant dosage

(Source: De Paula, 2022)

Additional tests were performed to determine the maximum flux rate and the corresponding percent solids, which were then used for the 2 litre ("L") static tests to represent a high-rate thickener, and continuous fill tests to determine the underflow density. These tests showed that at a feed percent solids of 12% and flocculant dosage of 12 g/t an underflow percent solids of 68% can be achieved. The recommended thickener operating parameters are shown in Table 13-44.

Table 13-44: Recommended thickener operating parameters

Description Value
Recommended Feed Solids Density, wt % 12
Underflow Characteristics
Design Underflow Solids, wt % 68
Minimum Mud Residence Time Required, min 60
Underflow Yield Stress, Pa 35
Overflow Characteristics
Overflow Clarity, ppm 100

 

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Description

Value

Flocculant

Recommended Flocculant

MF 10

Recommended Total Flocculant Dose, g/t

12

Recommended Flocculant Concentration, g/L

0.1

Thickener Sizing

Solids Unit Area (m2/tpd)

0.03

Recommended Rise Rate (m/h)

12

13.3.2. Filtration Tests

There were two types of filtration tests conducted to simulate both a vacuum disc filter and pressure filter. Both filter tests were performed at 68% solids to represent flotation tailings thickener underflow. The vacuum filter was able to achieve a cake moisture of 18-22% with thicknesses ranging from 19-44 mm, in 14-126 seconds. The pressure filter was able to achieve a cake moisture of 10.4% at both 32 mm and 50 mm thicknesses, with a blow time of 8-10 minutes at a pressure of 10 Bar.

Table 13-45: Vacuum filtration test results 

Process Parameter Flotation Tailings
Filter Media Paste Backfill
Feed Solids Density, wt % 68
Form Vacuum, kPa 68
Dry Vacuum, kPa 68
Cake Thickness, mm 34
Dry Cake Weight, kg/m2 54
Formation Time, min 0.7
Dry Time, min 1.1
Cake Moisture, wt % 19
Filtration rate, kg/m2/h 1,056

 

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Table 13-46: Pressure filtration test results

Process Parameter

Flotation Tailings

Test ID

1

2

Chamber Type

Recessed

Filter Media

POPR 966

Filter Feed Suspended Solids, wt%

68.0

Chamber Thickness, mm

50

32

Feed Pressure, Bar

10.0

10.0

Drying Pressure, Bar

7.0

7.0

Fill Time, min

0.33

0.17

Air Blow Time, min

10.0

8.0

Ultimate Cake Moisture, wt%

10.4

10.4

Dry Cake Density, kg/m3

1,543

1,521

Filtration Rate (kg/m2/h)

168

123

13.4.   Rheology Testwork by SGS

13.4.1. Samples Tested

Two samples were sent to SGS in Lakefield, Ontario, for rheology testing, one from the flotation concentrate thickener underflow and one from the CIP detoxified tailings. The characteristics of the as-received material are summarized in Table 13-47.

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Table 13-47: Rheology sample characterization

Sample ID Test
Code
K80
μm
ASG SG α
ASG/SG
Temp
ºC
Solids
% w/w
Density
g/L
Flotation
Concentrate
Underflow
T5 117 3.87 3.89 1.00 22 78.9 2402
T1 3.86 0.99 78.1 2377
T2 3.83 0.98 74.4 2231
T3 3.91 1.01 70.5 2088
T4 3.84 0.99 66.0 1966
CIP Detox
Tailings
Underflow
T7 52 3.76 3.71 1.00 21 71.1 2093
T8 3.72 1.00 69.1 2021
T9 3.58 0.97 67.1 1937
T10 3.70 1.00 65.1 1906
T11 3.70 1.00 62.6 1842
T12 3.70 1.00 60.1 1782

13.4.2. Results

The results from the rheological testing show that for the flotation concentrate thickener underflow, a percent-solids of 75% could be expected, while for the detoxified tailings, a percent- solids of 68% could be expected from commercial thickeners. A summary of the results for the flotation concentrate is shown in Table 13-48 and Figure 13-27, and Table 13-49 and Figure 13-28 provide a summary for the detoxified tailings.

Table 13-48: Summary of rheology results - Flotation concentrate underflow

Test
Code
Solids
% w/w
Unsheared Sample Unsheared Sample Observations
Shear
Rate
ϒ
range, 1/s
Yield Stress
τyB
Pa
Plastic
Viscosity
ηP
mPa.s
Shear
Rate
ϒ
range, 1/s
Yield
Stress
τyB
Pa
Plastic
Viscosity
ηP
mPa.s
T5 78.9 100-300 114 724 100-300 72 614 Thixotropic
T1 78.1 100-300 80 546 100-300 61 411 Thixotropic
T2 74.4 100-300 35 87 100-300 18 86 Thixotropic
T3 70.5 100-300 9.9 30 100-300 5.9 32 Minor Settling
T4 66.0 100-300 3.3 14 Not available Fast Settling

 

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Figure 13-27: Yield stress versus solids density - Flotation concentrate underflow

(Source: Liu and Ashbury, 2022)

Table 13-49: Summary of rheology results - CIP detox tailings underflow

Test
Code
Solids
% w/w
Unsheared Sample Unsheared Sample Observations
Shear Rate
ϒ
range, 1/s
Yield Stress
τyB
Pa
Plastic
Viscosity
ηP
mPa.s
Shear
Rate
ϒ
range, 1/s
Yield
Stress
τyB
Pa
Plastic
Viscosity
ηP
mPa.s
T7 71.1 200-400 112 33 200-400 44 87 Thixotropic
T8 69.1 200-400 57 25 200-400 25 45 Thixotropic
T9 67.1 200-400 30 22 200-400 16 27 Thixotropic
T10 65.1 200-400 17 19 200-400 11 19 Thixotropic
T11 62.6 200-400 9.2 14 200-400 6.5 14 Minor Settling
T12 60.1 200-400 4.8 12 200-400 3.2 13 Settling

 

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Figure 13-28: Yield stress versus solids density - CIP detox tailings underflow

(Source: Liu and Ashbury, 2022)

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14. Mineral Resource Estimates

The 2022 Mineral Resource Estimate ("MRE") for the Project (the "2022 MRE") encompasses updated resources for the deposits of Cow Mountain (Cow Zone and Valley Zone), Island Mountain (Shaft Zone and Mosquito Zone), and Barkerville Mountain (Lowhee Zone). The updates were prepared by Leonardo de Souza, MAusIMM (CP), of Talisker Exploration Services Inc. ("Talisker"), and reviewed and validated by Carl Pelletier, P.Geo., and Vincent Nadeau-Benoit, P.Geo., both of InnovExplo Inc. ("InnovExplo"), using all available information.

The KL Zone and BC Vein deposit were not drilled in 2021, but the search ellipse and distances were altered to match the other deposits. The BC Vein deposit has been depleted since the 2020 MRE. No changes are reported for Bonanza Ledge (Barkerville Mountain) deposit since the 2019 MRE.

To report the 2022 MRE for the Project, conceptual mining shapes were used as constraints to demonstrate that the "reasonable prospects for eventual economic extraction" criteria is met; as defined in the CIM Definition Standards on Mineral Resources and Reserves (CIM Definition Standards; May 10, 2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (MRMR Best Practice Guidelines; November 29, 2019).

The mineral resource updates include information from the 2020 and 2021 exploration programs.

The effective date of the 2022 MRE is May 17, 2022.

14.1. Methodology

The 2022 MRE covers all the deposits in the Cow-Island-Barkerville Mountain Corridor. The mineral resource area for the Cow/Island segment covers a strike length of 3.7 kilometres ("km") and a width of approximately 700 metres ("m"), down to a vertical depth of 600 m below surface. The estimate for the Barkerville segment covers a strike length of 3 km and a width of approximately 700 m, down to a vertical depth of 500 m below surface.

The models for the Cow, Valley, Shaft, Mosquito, BC Vein, KL and Lowhee deposits were prepared using LeapFrog GEO v.2021.1.3 ("LeapFrog") and Datamine Studio RM 1.9.36.0 ("Datamine"). Leapfrog was used for the modelling, which included the construction of 470 mineralized solids: 109 for Cow; 100 for Valley; 93 for Shaft; 75 for Mosquito; 6 for BC Vein including five BC Vein splays; 40 for KL; and 47 for Lowhee. Datamine was used for the estimation, which consisted of 3D block modelling and the ordinary kriging ("OK") interpolation method. Statistical studies, capping and variography were completed using Datamine, GSLIB and Excel. Capping and validations were carried out in Datamine and Microsoft Excel.

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The Bonanza Ledge model was prepared using GEOVIA GEMS software v.6.7 ("GEMS"). GEMS was used for the modelling, which included the construction of one mineralized solid, and for the estimation, which consisted of 3D block modelling and OK interpolation. Statistical studies and variography were done using Snowden Supervisor v.8.6 software ("Supervisor"). Capping and several validations were carried out in Microsoft Excel and Supervisor.

The main steps in the methodology were as follows:

 Compile and validate the diamond drill hole databases used for mineral resource estimation;

 Validate the geological model and interpretation of the mineralized zones based on lithological and structural information, historical underground mapping and general orientation of stopes, and metal content;

 Validate the drill hole intercepts database, compositing database, and capping values, for the purposes of geostatistical analysis and variography;

 Validate the block models and grade interpolation;

 Revise the classification criteria and validate the clipping areas for mineral resource classification;

 Assess the mineral resources with "reasonable prospects for economic extraction" and select appropriate cut-off grades and produce "resources-level" optimized underground mineable shapes; and

 Generate a mineral resource statement.

14.2. Drill Hole Database

Two diamond drill hole databases cover the Project: Bonanza Ledge and BM-CM-IM (Barkerville Mountain including the BC Vein, KL, and Lowhee deposits, Cow Mountain including the Cow and Valley deposits, Island Mountain including the Shaft and Mosquito deposits).

These databases were filtered by deposit (Cow, Shaft, Valley, Mosquito, BC Vein, KL or Lowhee) before working in Datamine. A subset of drill holes was used to generate the 2022 MRE database for each deposit (Table 14-1 and Figure 14-1).

The close-out date for the Cow deposit is August 25, 2021. It contains 1,252 validated drill holes (1,100 surface DDH and 152 DDH).

The close-out date for the Valley deposit is November 9, 2021. It contains 341 validated surface drill holes.

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The close-out date for the Shaft deposit is November 23, 2021. It contains 805 validated drill holes (646 surface DDH and 159 underground DDH).

The close-out date for the Mosquito deposit is July 19, 2021. It contains 776 validated drill holes (520 surface DDH and 256 underground DDH).

The close-out date for the Lowhee deposit is November 17, 2021. It contains 372 validated drill holes (333 surface DDH and 39 underground DDH).

The close-out date for the BC Vein and KL deposits is February 14, 2020. It contains 295 validated drill holes (236 surface DDH and 59 underground DDH).

The close-out date for the Bonanza Ledge GEMS database is July 18, 2016. It contains 213 validated holes, of which a subset of 162 was used as the mineral resource database (103 surface DDH and 59 underground DDH) (Table 14-1and Figure 14-2). The database also contains 7,432 blast holes that were used to guide the interpretation only.

All databases include lithological, alteration and structural descriptions taken from drill core logs. Oriented core data have been available since the 2016 Program.

The databases cover the strike length of each mineral resource area at variable drill spacings, ranging from 10 m to 60 m for the Cow, Island and Barkerville mountain deposits, and from 5-15 m for the Bonanza Ledge deposit.

In addition to the tables of raw data, each database includes several tables of calculated drill hole composites and wireframe solid intersections, which are required for the statistical evaluation and mineral resource block modelling.

Table 14-1: Number of drill holes in each database

Deposit Validated Drill Holes used for the 2022 MRE
Surface Underground Total
Cow 1,100 152 1,252
Valley 341 0 341
Shaft 646 159 805
Mosquito 520 256 776
KL 133 0 133
Lowhee 333 39 372
BC Vein 372 0 372
Bonanza Ledge 103 59 162

 

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Figure 14-1: Surface plan view of the validated diamond drill holes used to in the 2022 MRE for the deposits

of the Cow-Island-Barkerville Mountain Corridor

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Figure 14-2: Surface plan view of the validated Bonanza Ledge diamond drill holes used for the 2022 MRE

The inset figure shows the location of Bonanza Ledge (red) along the BC Vein (blue)

14.3. Geological Model

ODV updated, in 2021, the geological models for the Cow, Valley, Shaft, Mosquito, and Lowhee deposits using historical data, the data from the 2015-2019 drilling programs, and new holes from the 2020-2021 drilling program.

The KL and BC Vein deposit were not drilled in 2021, the geological model was reviewed and validated by the QPs.

The Bonanza Ledge geological model, same as documented in Brousseau et al. (2017), was reviewed and validated by the QPs. No new data have been acquired at Bonanza Ledge since the technical report of Brousseau et al. (2017).

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The data used to update the geological models consists of drill hole data (including oriented core), underground mapping from historical level plans, and stope orientations. Oriented core data have been available since 2016 for all the deposits.

A total of 471 geological solids were created and/or updated for all the deposits.

The Cow, Valley, Shaft, Mosquito, Lowhee, and KL geological models consist of 464 mineralized solids representing axial planar ("AXPL") veins (Figure 14-3). All geological solids were modelled in Leapfrog. The solids were designed with a minimum thickness of 2 m and based on a cut-off grade of 2.0 g/t Au. The solids veins extend to a radius of up to 50 m from the last selected intercept or are fixed at the mid-distance of an intercept that does not meet the minimum grade criterion. The solids were snapped to drill holes. The solids were created from the AXPL structural data using indicator interpolants.

Figure 14-4 shows an example of a modelled solid representing AXPL veins from the Shaft deposit model.

The geological model for the BC Vein includes one sheared solid representing the mineralized Layer Parallel ("LP") vein, along with five solids representing mineralized LP splays (Figure 14-5). The solids were modelled in Leapfrog. The BC Vein and splays were modelled from geological logs and grade intervals. The BC Vein was designed with a minimum thickness of 2 m, controlled by the hanging and footwall of the shear, and was based on a cut-off grade of 1.0 g/t Au. Geological contacts were given precedent over grade. The splays were designed with a minimum thickness of 2 m and were based on a cut-off grade of 1.0 g/t Au. All solids were snapped to drill holes.

A geological structural contact was modelled between the BC Vein and the KL deposits. The surface is a major lithological contact between the brittle sandstone, which hosts the KL AXPL veins, and the more ductile carbonaceous mudstones and siltstones that host the BC Vein shear and LP veins. This contact was used as a hard boundary to limit the extent of the mineralized geological models (Figure 14-5).

In 2017, InnovExplo created one solid for the Bonanza Ledge deposit (Brousseau, 2017). Construction lines were created on cross-sections spaced 5 to 25 m apart, which were snapped to drill hole intercepts. The solid was inspired by a sulphide shell defined in Brousseau et al. (2017) using a threshold of 3% pyrite and clipped to the Footwall Fault to the southwest, which was modelled from drill hole logs (Figure 14-6). The authors reviewed and validated the 2017 model and concluded that the model remains accurate for the 2022 MRE update.

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Two surfaces were created for each deposit to define the topography and the overburden/bedrock contact. The topography was created using LIDAR data from 2016, except for Bonanza Ledge, which used LIDAR data from 2000 (before the test pit was excavated at the Bonanza Ledge mine). The overburden-bedrock contact was modelled using logged overburden intervals. A waste solid was also created for Bonanza Ledge corresponding to the block model limits.

Figure 14-3: Mineralized solids of the Cow, Valley, Shaft, Mosquito, Lowhee, BC Vein and KL models
a) Surface plan view; b) Section view looking NNE

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Figure 14-4: Example of data used for the 3D Shaft deposit model

Vein solid (yellow); 3.0-g/t Au indicator interpolant (cyan); oriented core AXPL veins (blue);

25-m-thick cross-section

 

Figure 14-5: Isometric view of the BC Vein and KL deposit models, and the AXPL-LP contact surface

BC Vein (dark red); KL (blue); AP-LP contact (yellow)

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Figure 14-6: Isometric view of the BC Vein, Bonanza Ledge, and KL deposit models

BC Vein (dark red); Bonanza Ledge (red); KL (blue)

14.4. Voids Model

Current drifts and stopes are mined at Bonanza Ledge and BC Vein by ODV. These voids are modelled and updated by ODV. The voids are used to deplete the final mineral resource for these deposits.

A 5-m buffer was applied to the modelled voids of the Cow, Valley, Shaft, Mosquito, Lowhee, and BC Vein deposits to compensate for the uncertainty in void locations.

Drilling continues to intercept undocumented voids. To reduce the associated risk, a spherical buffer with a 10-m radius was applied around the intercepts to represent a potential stope of 20 m in diameter. These "buffer voids" were used to deplete the final mineral resource estimate only when the drilled void was not intersecting the stopes buffer.

In 2022, for the purpose of the PEA update, InnovExplo and ODV reviewed historical data and were able to model and recover additional historical stopes, mainly, and other underground infrastructure that were added to the voids model used in the previous MRE. These historical infrastructure additions were mainly at the Cow deposit, but some were also added to the voids model of the Mosquito and Shafts deposits. Many voids intercepts (previously undocumented) are now explained by the updated voids model. Uncertainty in void locations remains, locally, as some voids intercepted remain unexplained by the void model.

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Based on the available data, the voids in the Datamine and GEMS projects are considered accurate.

Figure 14-7 and Figure 14-8 show the voids used to deplete the current mineral resource estimate.

Figure 14-7: Plan and longitudinal view of the 5-m buffer voids for Cow Mountain and Island Mountain

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Figure 14-8: Longitudinal view of the 5-m buffer voids for the BC Vein, Bonanza Ledge, and KL deposits

5-m buffer voids (green); BC Vein (transparent red); Bonanza Ledge (red); KL (blue); looking NNE

14.5. Compositing

Codes were automatically attributed to DDH assay intervals intersecting the mineralized veins. Codes use the name of the corresponding 3D solid. The coded intercepts were used to analyze sample lengths and generate statistics for raw assays and composites. Table 14-2 summarizes the statistical analysis of the original (raw) assays for each deposit. The raw sample statistics used for composite length, capping and variograms were defined by deposit and not individual veins due to the paucity of data.

Table 14-2: Summary statistics for the DDH raw assays

Deposits Number of
samples
Max (Au g/t) Mean
(Au g/t)
Standard
Deviation
Coefficient of
Variation
Cow 14,876 6,590 4.31 56.54 13.12
Valley 10,765 1,870 3.20 20.44 6.39
Shaft 22,035 3,780 4.02 30.01 7.46
Mosquito 4,103 1,965 4.58 33.72 7.36
BC Vein 3,919 309 2.76 11.07 4.01
KL 2,413 145 1.88 6.09 3.23
Lowhee 4,850 2,420 3.78 38.37 10.15
Bonanza Ledge 3,062 234.5 7.08 15.35 2.17

 

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The DDH gold assays were composited within each of the mineralized veins to minimize any bias introduced by variable sample lengths. Vein thickness, proposed block size, and original sample length were taken into consideration when calculating the composite length for each deposit:

3.0 m at Cow, 1.5 m at Valley, 2.0 m at Shaft, 2.5 m at Mosquito, 2.0 m at BC Vein, 1.5 m at Lowhee and 2.0 m at Bonanza Ledge. The composite length of 1.75 m for KL is the best-fit to assay sample lengths based on histograms and probability plots.

Tails were redistributed for all intervals less than half the composite length. A grade of 0.00 g/t Au was assigned to missing sample intervals from historical holes (pre-2016) within the solids. Missing samples from the 2016-2019 drilling programs due to lost core, voids or lost samples were ignored. A few holes from the 2016-2021 programs were only partially sampled; a value of 0.00 g/t Au was assigned to these missing intervals.

Table 14-3 presents the summary statistics by deposit.

Table 14-3: Summary statistics for composites

Deposits Number of
samples
Max
(Capped)
(Au g/t)
Mean
(Au g/t)
Standard
Deviation
Coefficient of
Variation
Cow 5,811 50 2.76 5.99 2.17
Valley 6,535 40 2.25 5.02 2.23
Shaft 10,806 50 2.87 6.74 2.35
Mosquito 1,897 50 3.09 6.96 2.26
BC Vein 2,040 40 2.30 5.45 2.37
KL 1,294 20 1.39 2.66 1.91
Lowhee 2,872 40 2.13 5.28 2.47
Bonanza Ledge 2,602 70 5.98 10.77 1.80

14.6. High-grade Capping

Although the indicator variograms suggest that high-grade continuity ranges increase with decreasing grade, the lack of detailed underground mapping and sampling is an obstacle to defining the most suitable grade ranges in areas with wider drilling grids.

Multiple capping (capping at different ranges in each deposit) was selected as the capping methodology for the Cow, Valley, Shaft, Mosquito, KL, Lowhee, and BC Vein models (see below for Bonanza Ledge).

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For these deposits, the highest selected capping value corresponds to the grade at 99% of the total variance on indicator variograms. The highest grades vary from 20 to 70 g/t Au. The second and third grades were selected based on the probability plot and vary from 7 to 30 g/t Au. The Shaft deposit is shown as an example in Figure 14-9 and Figure 14-10.

The maximum range for high-grade connectivity was established using the indicator variograms, which suggest a loss of connectivity after 17 to 33 m, depending on the mineralized zone. A range of 25 m was selected and applied to all zones as a general average, given the lack of detailed information for each deposit.

 

Figure 14-9: Indicator variograms for the Shaft deposit

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Figure 14-10: Grade log histogram and probability plot for the Shaft deposit

For Bonanza Ledge, basic univariate statistics were performed on individual composited gold assay datasets. The capping applied for Bonanza Ledge was a single top cap of 70 g/t Au on the composited data.16 samples were capped with this value, which was selected by combining the dataset analysis with the probability plot and log-normal grade distribution.

14.7. Density

Bulk densities were determined by standard water immersion methods on half-core samples. ODV's mineral resource databases contain 7,233 measurements taken on samples from all deposits. Table 14-4 provides a breakdown of bulk density measurements in modelled mineralized solids by zone.

Table 14-4: Bulk density by mineralized zone

Deposit Number of Samples Median SG Method
Cow 1,109 2.80 ID2 and Median
Valley 1,262 2.81 Median
Shaft 2,206 2.79 ID2 and Median
Mosquito 515 2.79 Median
BC Vein 323 2.69 ID2 and Median
KL 437 2.81 Median
Lowhee 1,176 2.75 Median
Bonanza Ledge 205 3.20 Median

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For the Cow, Shaft and BC Vein models, the bulk density was estimated by the Inverse Distance Squared ("ID2") interpolation method in the block model. The median bulk density was applied to non-estimated blocks: 2.80 g/cm3 at Cow, 2.79 g/cm3 at Shaft, and 2.69 g/cm3 at BC Vein.

Due to the paucity of data, the median value of the bulk density measurements was applied to all blocks in the Valley (2.81 g/cm3), Mosquito (2.79 g/cm3), KL (2.81 g/cm3) and Lowhee (2.75 g/cm3) deposits.

For Bonanza Ledge, the average value of 3.20 g/cm3 from Sandefur and Stone (2006) was applied. In 2017, InnovExplo confirmed this value with 23 bulk density measurements during the independent resampling program, returning an average of 3.19 g/cm3 (Brousseau et al., 2017).

A density of 2.00 g/cm3 was assigned to the overburden, 2.70 g/cm3 to the waste rock and 0.00 g/cm3 to the 5-m buffer voids (including underground drifts and stopes). The 3D mineralized zones were clipped at the overburden.

Bulk densities were used to calculate tonnages from the volume estimates in the block model.

14.8. Block Model

A block model was created for each of the deposits.

For the Cow, Valley, Shaft, Mosquito, Lowhee, KL, and BC Vein models, unrotated sub-block models were used in Datamine. The sub-blocks were created within each mineralized vein zone.

The Bonanza Ledge block model corresponds to an unrotated percent block model in GEMS. All blocks with more than 0.01% of their volume falling within a selected solid were assigned the corresponding block code for that solid in their respective folder. A percent block model was generated, reflecting the proportion of each block inside every solid (i.e., individual mineralized zones, overburden, voids and waste).

The origin of each block model is the lower-left corner. Block dimensions reflect the sizes of mineralized zones and plausible mining methods.

Table 14-5 shows the properties of each block model.

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Table 14-5: Block model properties

Deposits

Description

Easting (m)

Northing (m)

Elevation (m)

Cow

Block Model Origin

595,500

5,883,000

850

Parent Block Dimension

5

5

5

Number of Parent Blocks

190

190

128

Sub-block Dimension

0.625

0.625

0.5

Valley

Block Model Origin

595,000

5,883,700

600

Parent Block Dimension

5

5

5

Number of Parent Blocks

160

160

130

Sub-block Dimension

0.625

0.625

0.5

Shaft

Block Model Origin

594,160

5,884,000

690

Parent Block Dimension

5

5

5

Number of Parent Blocks

212

164

154

Sub-block Dimension

0.625

0.625

0.5

Mosquito

Block Model Origin

593,250

5,884,850

800

Parent Block Dimension

5

5

5

Number of Parent Blocks

150

140

130

Sub-block Dimension

0.625

0.625

0.5

BC Vein

Block Model Origin

596,500

5,880,800

940

Parent Block Dimension

5

5

5

Number of Parent Blocks

370

284

118

Sub-block Dimension

1.0

1.0

1.0

KL

Block Model Origin

597,500

5,880,900

1,000

Parent Block Dimension

5

5

5

Number of Parent Blocks

210

190

130

Sub-block Dimension

0.5

0.5

0.5

Lowhee

Block Model Origin

596,300

5,882,450

1,000

Parent Block Dimension

5

5

5

Number of Parent Blocks

90

140

100

Sub-block Dimension

0.5

0.5

0.5

Bonanza
Ledge

Block Model Origin

596,700

5,880,800

1,600

Block size

2

2

5

Block extent (m)

1,300

1,200

620

 

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14.9. Variography and Search Ellipsoids

For the Cow, Valley, Shaft, Mosquito, KL, Lowhee, and BC Vein models, the 3D directional-specific search ellipses were guided by the hanging wall and footwall of each vein for an anisotropic search. The search radii were determined by the indicator variograms in Section 14.6.

Variogram models were designed for gold using composited assay data. Spherical variograms were modelled for each of these deposits.

Figure 14-11 shows an example of the variogram models used in the mineral resource estimation for the Cow model.

 

Figure 14-11: Variogram models of gold grade for the Cow deposit

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For the Bonanza Ledge model, a 3D directional variography was completed on DDH composites of capped gold assay data. The study was carried out in Supervisor software. The 3D directional- specific investigations yielded the best-fit model along an orientation that corresponds to the strike and dip of the mineralized zones.

The downhole variograms suggest a low nugget effect of 3% for the Bonanza Ledge zones. Two sets of search ellipsoids were built from the variogram analysis, corresponding to 1x the results and 1.5x the results.

14.10. Grade Interpolation

The interpolation profiles were customized for each vein of each deposit to estimate grades with hard boundaries.

For the Cow, Valley, Shaft, Mosquito, KL, Lowhee, and BC Vein deposits, the mineralized vein blocks were estimated independently, with an anisotropic three-pass search to estimate all blocks within the veins. For each pass, the high grades were restricted, as determined in Section 14.6. The first pass range and distance for the restricted search grade (high-grade capping) correspond to a maximum of 25 m, as determined in Section 14.6. For the second and third passes, the ranges increased (respectively 2x and 2.5x the previous pass ranges) but the restricted search grade values decreased. These grade values were determined from indicator variograms and the geological knowledge for each deposit. The fourth interpolation pass was used to fill the wireframes with grade.

For the Bonanza Ledge deposit, passes ranges were derived from the variography using capped composites. The interpolation was run on a point area workspace extracted from the DDH dataset in GEMS. A two-pass search was used for the mineral resource estimate. The ellipsoid radii for Pass 1 were the same as the variography results (1x). The ellipsoid radii from Pass 2 were 1.5x the results for blocks not interpolated during Pass 1.

The OK method was selected for the final mineral resource estimation as it better honours the grade distribution for all the deposits.

The grade estimation parameters are summarized in Table 14-6.

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Table 14-6: Grade estimation parameters

Deposit Pass Min
Cmp
Max
Cmp
Min
DDH
Orientation Ranges  
Azi Dip Azi X (m) Y (m) Z (m) Au g/t
Cap
Cow 1 4 12 2 Anisotropic 25 25 25 50
2 4 12 2 Anisotropic 50 50 50 25
3 4 12 2 Anisotropic 125 125 125 15
4 3 12 2 Anisotropic 250 250 250 10
Valley 1 4 12 2 Anisotropic 25 25 25 40
2 4 12 2 Anisotropic 50 50 50 25
3 4 12 2 Anisotropic 125 125 125 15
4 3 12 2 Anisotropic 250 250 250 10
Shaft 1 4 12 2 Anisotropic 25 25 25 50
2 4 12 2 Anisotropic 50 50 50 30
3 4 12 2 Anisotropic 125 125 125 15
4 3 12 2 Anisotropic 250 250 250 10
Mosquito 1 4 12 2 Anisotropic 25 25 25 50
2 4 12 2 Anisotropic 50 50 50 30
3 4 12 2 Anisotropic 125 125 125 15
4 3 12 2 Anisotropic 250 250 250 10
BC Vein 1 4 12 2 Anisotropic 25 25 25 40
2 4 12 2 Anisotropic 50 50 50 30
3 4 12 2 Anisotropic 125 125 125 10
4 4 12 2 Anisotropic 250 250 250 5
KL 1 4 12 2 Anisotropic 25 25 25 20
2 4 12 2 Anisotropic 50 50 50 10
3 4 12 2 Anisotropic 125 125 125 7
4 3 12 2 Anisotropic 250 250 250 7
Lowhee 1 4 12 2 Anisotropic 25 25 25 40
2 4 12 2 Anisotropic 50 50 50 20
3 4 12 2 Anisotropic 125 125 125 15
4 NA - All blocks were estimated with the first 3 passes
Bonanza Ledge 1 4 12 2 Anisotropic 25 12.5 25 50
2 4 12 2 Anisotropic 50 25 50 30
3 4 12 2 Anisotropic 100 50 100 15

 

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14.11. Block Model Validation

The block models were validated visually and statistically. The visual validation confirmed that each block models honour the drill hole composite data and justifies the multiple capping for the second, third and fourth passes (Figure 14-12).

ID2 and NN models were produced to check for local bias in the models. The ID2 models matched well with the OK models, and the differences in the high-grade composite areas are within acceptable limits. The trend and local variation of the estimated ID2 and OK models were compared with the NN models and composite data using swath plots in three directions (North, East and Elevation) for the first pass. The ID2, NN and OK models show similar trends in grades with the expected smoothing for each method when compared to the composite data. Figure 14-13 shows the swath plot in the three principal directions of the Shaft deposit as an example.

The Bonanza Ledge model of Brousseau et al. (2017) was reviewed and validated, and a reconciliation exercise performed, but no changes were made to the block model. According to the reconciliation results of the 2018 development in the Bonanza Ledge mine, grade produced versus estimated is 87.5% for a combined dilution-recovery rate of 14.3%. No activities were carried out at the Bonanza Ledge mine in 2019-2020. The author believes the Bonanza Ledge block model reconciliation results were acceptable for the 2019 MRE given the nature of the deposit, and the data can be used to update the 2022 MRE.

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Figure 14-12: Validation of the Valley block model, comparing drill hole composites and

block model grade values

a) Cross-section looking northeast (±5 m); b) Long section of Vein 12 showing all blocks

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Figure 14-13: Cow model validation using three-direction swath plots comparing the different interpolation methods to the DDH composites

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14.12. Economic Parameters and Cut-off Grade

Cut-off grade ("CoG") parameters were determined by ODV and QP, Éric Lecomte, using the parameters presented in Table 14-7 and Table 14-9. All deposits except for Bonanza Ledge are reported at a CoG of 2.0 g/t Au. Bonanza Ledge is reported at a CoG of 3.5 g/t Au.

Table 14-7: Input parameters used to calculate the underground cut-off grade for Cow, Valley, Mosquito,

Shaft, Lowhee, KL, and BC Vein deposits

Input parameter

Value

Gold price (US$/oz)

1,600.00

Exchange rate (USD:CAD)

1.30

Gold Price ($/oz)

2,080

Royalty (%)

5.0%

Recovery (%)

91.8%

Global mining costs ($/t)

50.41

Processing & transport costs ($/t)

30.41

G&A + Environmental costs ($/t)

16.18

Total cost ($/t)

116.50

Mineral resource cut-off grade (g/t Au)

2.0

Table 14-8: Input parameters used to calculate the underground cut-off grade for Bonanza Ledge

Input parameter Value
Gold price (US$/oz) 1,600.00
Exchange rate (USD:CAD) 1.30
Gold Price ($/oz) 2,080
Royalty (%) 5.0%
Recovery (%) 86.0%
Global mining costs ($/t) 79.13
Processing & transport costs ($/t) 60
G&A + Environmental costs ($/t) 51.65
Total cost ($/t) 190.78
Mineral resource cut-off grade (g/t Au) 3.5

 

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The QP considers the selected cut-off grades of 2.0 g/t Au and 3.5 g/t Au to be adequate based on the current knowledge of the Project and to be instrumental in outlining mineral resources with reasonable prospects for eventual economic extraction for an underground mining scenario in each deposit.

The Deswik Stope Optimizer ("DSO") parameters used a minimum mining shape of 10.0 m along the strike of the deposit, a height of 10.0 m and a width of 2.0 m. The maximum shape measures 10.0 m x 10.0 m x width of the mineralized zone. The typical shape was optimized first. If it was not potentially economical, smaller stope shapes were optimized until it reached the minimum mining shape.

The use of those conceptual mining shapes as constraints to report mineral resource estimates demonstrate that the "reasonable prospects for eventual economic extraction" meet the criteria defined in the CIM Definition Standards; May 10, 2014, and the MRMR Best Practice Guidelines; November 29, 2019.

14.13. Mineral Resource Classification

14.13.1. Cow, Valley, Shaft, Mosquito, KL, Lowhee, and BC Vein deposits

No Measured mineral resources were defined.

Indicated mineral resources were defined for blocks estimated with a minimum of 2 DDH and within 25 m of a drill hole. The classification can extend up to 35 m if the mineralized trend is demonstrated by multiple adjacent holes.

Inferred mineral resources were defined for blocks estimated with a minimum of 2 DDH and within 50 m of a drill hole. The classification can extend to 60-65 m from a hole if the mineralized trend is demonstrated by multiple adjacent holes.

Based on the criteria described above, the final classification, for all deposits, was obtained after applying a series of outline rings (clipping boundaries) created in longitudinal views, keeping in mind that a significant cluster of blocks would be necessary to obtain an Indicated mineral resource. Within the Indicated category outlines, some Inferred blocks were upgraded into Indicated, whereas some Indicated blocks outside of these outlines were downgraded to Inferred category. The QPs consider this a necessary step to homogenize (smooth out) the mineral resource volumes in each category and to avoid the inclusion of isolated blocks in the Indicated category.

Figure 14-14 shows an example of the mineral resource classification for the Cow deposit.

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Figure 14-14: Example of a clipping boundary for classification

Indicated category clip (red); Inferred category clip (green) for the V11 vein of the Cow deposit

14.13.2.  Bonanza Ledge deposit

Measured mineral resources were defined for blocks showing geological and grade continuity interpolated during Pass 1 only, with a minimum of three drill holes and a closest distance of less than 10 m, and for blocks no more than 40 m below the pit.

Indicated mineral resources were defined for blocks showing geological and grade continuity interpolated with a minimum of two drill holes during Pass 1 and a closest distance of less than 20 m.

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Inferred mineral resources were defined by the remaining blocks interpolated from Pass 1 and Pass 2.

Figure 14-15 shows the mineral resource classification for the Bonanza Ledge deposit.

In some areas, interpolated blocks remained unclassified due to the lack of confidence in grade and/or continuity; these are kept as exploration potential.

 

Figure 14-15: Longitudinal view showing the classified mineral resources of the Bonanza Ledge deposit

14.14. Mineral Resource Estimate

The QPs have classified the 2022 MRE as Measured, Indicated, and Inferred mineral resources based on data density, search ellipse criteria, drill hole density, and interpolation parameters. The 2022 MRE is considered to be reliable and based on quality data and geological knowledge. The mineral resource estimate follow 2014 CIM Definition Standards on Mineral Resources and Reserves.

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Table 14-9 displays the results of the 2022 MRE for the Project at the official 2.0 g/t Au cut-off grade for all eight deposits: Cow, Valley, Shaft, Mosquito, KL, Lowhee, BC Vein and Bonanza Ledge.

Table 14-10 and Table 14-11 shows the cut-off grade sensitivity analysis of the 2022 MRE. The reader should be cautioned that the figures provided in Table 14-10 and Table 14-11 should not be interpreted as a mineral resource statement. The reported quantities and grade estimates at different cut-off grades are presented for the sole purpose of demonstrating the sensitivity of the mineral resource model to the selection of a reporting cut-off grade.

Table 14-9: Cariboo Gold Project 2022 Mineral Resource Estimate reported at a 2.0 g/t Au cut-off grade

(except for Bonanza Ledge; reported at a 3.5 g/t Au cut-off grade)

Category Deposit Tonnes Grade Ounces
'000 (Au g/t) '000
Measured Bonanza Ledge 47 5.1 8
Indicated Bonanza Ledge 32 4.0 4
BC Vein 1,030 3.1 103
KL 389 3.2 40
Lowhee 1,621 3.6 188
Mosquito 1,795 4.3 249
Shaft 11,139 4.3 1,531
Valley 4,403 3.8 536
Cow 6,645 3.8 811
Total Indicated Mineral Resources 27,055 4.0 3,463
Inferred BC Vein 461 3.5 53
KL 1,905 2.8 168
Lowhee 520 3.5 59
Mosquito 1,262 3.6 146
Shaft 5,730 3.9 725
Valley 2,135 3.4 235
Cow 2,394 3.1 236
Total Measured and Indicated Mineral Resources 27,102 4.0 3,470
Total Inferred Mineral Resources 14,407 3.5 1,621

Mineral Resource Estimate notes:

1. The independent and qualified persons for the Mineral Resource Estimates, as defined by NI 43-101, are Carl Pelletier, P.Geo., and Vincent Nadeau Benoit, P.Geo. (InnovExplo Inc.). The effective date of the 2022 Mineral Resource Estimate is May 17, 2022.

2. These mineral resources are not mineral reserves as they do not have demonstrated economic viability.

3. The Mineral Resource Estimate conforms to the 2014 CIM Definition Standards on Mineral Resources and Reserves and follows the 2019 CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.

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4. A total of 471 vein zones were modelled for the Cow Mountain (Cow and Valley), Island Mountain (Shaft and Mosquito), Barkerville Mountain (BC Vein, KL, and Lowhee) deposits and one gold zone for Bonanza Ledge. A minimum true thickness of 2.0 m was applied, using the grade of the adjacent material when assayed or a value of zero when not assayed.

5. The estimate is reported for a potential underground scenario at a cut-off grade of 2.0 g/t Au, except for Bonanza Ledge at a cut-off grade of 3.5 g/t Au. The cut-off grade for the Cow, Valley, Shaft, Mosquito, BC Vein, KL, and Lowhee deposits was calculated using a gold price of USD1,600 per ounce; a USD/CAD exchange rate of 1.30; a global mining cost of $50.41/t; a processing & transport cost of $30.41/t; and a G&A + Environmental cost of $16.18/t. The cut-off grade for the Bonanza Ledge deposit was calculated using a gold price of USD1,600 per ounce; a USD/CAD exchange rate of 1.30; a global mining cost of $79.13/t; a processing & transport cost of $60.00/t; and a G&A + Environmental cost of $51.65/t. The cut- off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, mining cost, etc.).

6. Density values for Cow, Shaft, and BC Vein were estimated using the ID2 interpolation method, with a value applied for the non-estimated blocks of 2.80 g/cm3 for Cow, 2.79 g/cm3 for Shaft, and 2.69 g/cm3 for BC Vein. Median densities were applied for Valley (2.81 g/cm3), Mosquito (2.79 g/cm3), KL (2.81 g/cm3) and Lowhee (2.75 g/cm3). A density of 3.20 g/cm3 was applied for Bonanza Ledge.

7. A four-step capping procedure was applied to composited data for Cow (3.0 m), Valley (1.5 m), Shaft (2.0 m), Mosquito (2.5 m), BC Vein (2.0 m), KL (1.75 m), and Lowhee (1.5 m). Restricted search ellipsoids ranged from 7 to 50 g/t Au at four different distances ranging from 25 m to 250 m for each deposit. High grades at Bonanza Ledge were capped at 70 g/t Au on 2.0 m composited data.

8. The mineral resources for the Cow, Valley, Shaft, Mosquito, BC Vein, KL, and Lowhee vein zones were estimated using Datamine StudioTM RM 1.9 software using hard boundaries on composited assays. The OK method was used to interpolate a sub-blocked model (parent block size = 5 m x 5 m x 5 m). Mineral resources for Bonanza Ledge were estimated using GEOVIA GEMSTM 6.7 software using hard boundaries on composited assays. The OK method was used to interpolate a block model (block size = 2 m x 2 m x 5 m).

9. Results are presented in situ. Ounce (troy) = metric tons x grade / 31.10348. Calculations used metric units (metres, tonnes, g/t). The number of tonnes was rounded to the nearest thousand. Any discrepancies in the totals are due to rounding effects. Rounding followed the recommendations as per NI 43-101.

10. The qualified persons responsible for this section of the technical report are not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant factors that could materially affect the mineral resource estimate.

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Table 14-10: Cut-off grade sensitivity analysis for the Cow, Valley, Shaft, Mosquito, BC Vein, KL,

and Lowhee deposits of the Cariboo Gold Project

Cut-off
Grade
Indicated Inferred
Tonnes
('000)
Grade
Au g/t
Ounces
('000)
Tonnes
('000)
Grade
Au g/t
Ounces
('000)
1.90 28,550 3.9 3,543 15,429 3.4 1,683
2.00 27,022 4.0 3,458 14,407 3.5 1,622
2.10 25,548 4.1 3,371 13,438 3.6 1,560

Table 14-11: Cut-off grade sensitivity analysis for the Bonanza Ledge deposit of the Cariboo Gold Project

Cut-off
Grade
Measured Indicated
Tonnes
('000)
Grade
Au g/t
Ounces
('000)
Tonnes
('000)
Grade
Au g/t
Ounces
('000)
3.20 65 4.5 9 38 3.6 4
3.50 47 5.1 8 32 4.0 4
3.70 43 5.2 7 21 4.3 3

 

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15. Mineral Reserve Estimates

Not applicable at the current stage of the Project.

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16. Mining Methods

16.1. Introduction

Underground longhole longitudinal retreat with a combination of paste fill and cemented rockfill ("CRF") mining methods will be used for the extraction of the economic mineable inventory, as it is the most economic, and sustainable methodology. The Cariboo Gold Project ("the Project") is planned in two phases, Phase 1 is at 2,000 tonnes per day ("tpd") for 2.5 years, increasing during Phase II to an average production of 8,000 tpd over a 9.5-year life of mine ("LOM"). This Report has focused on five underground zones: Shaft Zone, Valley Zone, Cow Zone, Mosquito Zone and Lowhee Zone. The mining zones are accessed via three main portals (Cow, Valley [Main], and Island Mountain) and are connected by an internal ramp system.

16.2. Rock Engineering

SRK Consulting (Canada) Inc. ("SRK") performed a geotechnical evaluation of the Project which included data from two geotechnical field investigation programs designed to characterize the geotechnical conditions of the rock and support the underground mine and infrastructure design, structural geology review, a detailed evaluation of geotechnical design domains, and the development of geotechnical design guidelines within each of these domains. These guidelines included excavation design parameters, estimates of dilution, as well as ground support requirements. The various elements of the geotechnical evaluation and findings are discussed in more detail in the following sections. 

16.2.1.  Geotechnical Programs

Two geotechnical field data acquisition programs were completed, the first taking place during late summer and fall of 2018, and the second taking place in the summer of 2021.

Both involved quality assurance and quality control ("QA/QC") by SRK to ensure a high quality of data collected.

SRK's 2018 field geotechnical data acquisition/investigation program comprised of geotechnical logging of oriented triple tube HQ core. Thirteen geotechnical drill holes were logged using RMR89 and Q' rock mass classification systems for a total length of 4,180.8 metres ("m"). Basic geotechnical data (recovery, fracture count, rock quality designation ("RQD"), and estimated intact rock strength) were collected for the 2016 to 2021 resource exploration drill holes. This program focused on the Shaft, Cow, and Valley Zones, as well as the Valley (Main) Portal location.

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Representative rock core samples from each geotechnical domain were collected from the geotechnical drill holes in the 2018 field program to complete 96 multi-stage triaxial compressive strength tests ("TCS") at the Queen's University laboratory. 

The 2021 field program comprised of geotechnical logging of oriented triple tube HQ core from five geotechnical specific holes with a total length of 880.95 m using the same logging guidelines as 2018. This program focused on the expanded Mosquito Zone and new Lowhee Zone, as well as the proposed Island Mountain Portal location. 

During the 2021 field program, core samples were collected to complete four unconfined compressive strength ("UCS") tests and nine TCS tests.

The results of the TCS test results are summarized in Table 16-1. The tests included Intact Elastic Modulus (Young's Modulus) data. The samples were referenced to each logged lithology as well as lithological facies and representative averages for the rock physical properties were determined for each facies. Poisson's ratio data was collected as part of the 2021 lab testing but is limited in quantity and is too variable to make any definitive conclusions. Representative unit weights and Intact Elastic Modulus', based on laboratory testing, for each of the lithological facies are summarized in Table 16-2. Should numerical stress modelling be required for the Project, it is recommended that estimated values for the lithologies are benchmarked against values from similar rock types.

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Table 16-1: TCS 2018 and 2021 test results

Confining Pressures σ3 = 5 MPA σ3 = 10 MPA σ3 = 15 MPA σ3 = 20 MPA σ3 = 25 MPA
Logged Lithology Number of
samples
Average
σ1
(MPa)
Standard
Deviation
σ1 (MPa)
Average
σ1
(MPa)
Standard
Deviation
σ1 (MPa)
Average
σ1
(MPa)
Standard
Deviation
σ1 (MPa)
Average
σ1
(MPa)
Standard
Deviation
σ1 (MPa)
Average
σ1
(MPa)
Standard
Deviation
σ1 (MPa)
Calcareous Mafic
Volcaniclastic
("CLMV")
7 59.9 19.3 73.6 24.8 83.7 33.0 90.0 36.0 110.4 37.5
Calcareous Siltstone
("CLSI")
1 42.4   59.4   72.7   88.5   100.3  
Calcareous Sandstone
("CLSS")
36 60.1 34.5 75.7 34.4 88.9 38.6 101.9 39.3 116.5 36.3
Carbonaceous
Siltstone ("CSI")
9 43.4 15.4 57.6 18.6 71.9 19.8 80.5 20.8 95.2 18.5
Aurum Limestone
("LST")
6 48.2 28.6 63.0 30.3 75.8 33.1 84.7 35.1 104.5 35.8
Siltstone ("SI") 28 53.6 29.9 65.0 32.9 75.1 33.9 86.7 35.8 99.5 33.9
Lower Sandstone
Facies ("SS")
9 9 70.8 37.2 90.1 42.4 108.8 51.7 122.4 60.3 143.9 62.1

 

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Table 16-2: Summary of Unit Weight, Intact Elastic Modulus, and Intact Poisson's Ratio based

on 2018 and 2021 Laboratory Testing Results

Modelled Lithological Facies Design Unit Weight, g
(tonnes/m3)
Intact Rock Elastic Modulus
(GPa)
Calcareous Siltstone Facies 2.80 25.74
Calcareous Sandstone Facies  2.78 43.3
Aurum Limestone  2.77 35.84
Upper Sandstone Facies  2.74 29.65
Mafic Volcanic Facies 2.80 25.74
Lower Sandstone Facies 2.81 27.47
Basal Transitional Facies 2.86 30.70
Basal Facies 2.77 45.14

TCS results were also used to extrapolate UCS values to allow for comparison to strengths obtained using direct UCS tests and estimated using point load tests ("PLT") tests. UCS estimates from TCS tests are summarized in Table 16-3. The limited UCS test results are summarized in Table 16-4.

Table 16-3: UCS estimates extrapolated from 2018 and 2021 TCS tests

Zone Lithological Facies Triaxial Testing Results (2018 & 2021)
No. Valid
Tests
Extrapolated UCS (MPa)
Min Average Max StdDev
Cow Calcareous Silstone Facies  11 10 24 57 13
Calcareous Sandstone Facies  2 32 33 34 1
Aurum Limestone 3 32 37 45 6
Upper Sandstone Facies 13 7 26 47 15
Mafic Volcaniclastic 3 33 47 69 16
Lower Sandstone Facies 7 21 45 97 27
Basal Transitional 1 72 72 72 0
Basal 3 20 38 68 21
Shaft Calcareous Silstone Facies 0 - -  - -
Calcareous Sandstone Facies 3 23 66 102 33
Aurum Limestone 0 - - - - -
Upper Sandstone Facies 10 15 44 107 28
Mafic Volcaniclastic 7 10 60 102 30
Lower Sandstone Facies 13  12 36 114 27
Basal Transitional 3 16 49 78 25
Basal  0 - - - -

 

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Zone Lithological Facies Triaxial Testing Results (2018 & 2021)
No. Valid
Tests
Extrapolated UCS (MPa)
Min Average Max StdDev
Valley Calcareous Silstone Facies 0 - - - -
Calcareous Sandstone Facies 1 46 46 46 0
Aurum Limestone 1 32 32 32 0
Upper Sandstone Facies 1 24 24 24 0
Mafic Volcaniclastic 1 38 38 38 0
Lower Sandstone Facies 0 - - - -
Basal Transitional 0 - - - -
Basal 0 - - - -
Mosquito Calcareous Silstone Facies 2 4 12 21 8
Calcareous Sandstone Facies 0 - - - - - - -
Aurum Limestone 2 39 42 45 3
Upper Sandstone Facies 1 21 21 21 0
Mafic Volcaniclastic 1 59 59 59 0
Lower Sandstone Facies 0 - - - -
Basal Transitional 0 - - - -
Basal 0 - - - -
Island
Mountain
Portal
Calcareous Silstone Facies 0 18 20 22 2
Calcareous Sandstone Facies 0 - - - -
Aurum Limestone 0 - - - -
Upper Sandstone Facies 0 - - - -
Mafic Volcaniclastic 0 - - - -
Lower Sandstone Facies 0 - - - -
Basal Transitional 0 - - - -
Basal 0 - - - -

Table 16-4: Direct UCS test results from 2021 field program

  Unit Count of
UCS
Min of UCS Average of
UCS
Max of UCS StdDev of
UCS
Mosquito MPa 3 22 49   67 19
Calcareous Siltstone Facies  MPa 3 22 49   67 19
Island Mountain Portal MPa 1 17 17   17 0
Calcareous Siltstone Facies MPa 1 17 17   17 0
Total MPa 4 17 41   67 22

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Table 16-5 shows the total length of core by zone that was reviewed and assigned a rock mass quality rating.

Table 16-5: Summary of length of core photo logged, by Zone

Zone Length of core
quantified 2020 (m)
Length of core
quantified 2021/22 (m)
Length of core
quantified total (m)
Length of core
quantified total (km)
Valley  2,332  774  3,106  3.1 
Shaft  37,984  5,054  43,038  43.0 
Cow 20,652  6,330  26,982  27.0 
Mosquito  2,685  3,814  6,499  6.5 
Lowhee  - 3,422  3,422  3.4 

The location of the 2018 and 2021 dedicated geotechnical drill holes used for assessment of the Project deposit are shown in Figure 16-1.

Figure 16-1: Plan view showing collar locations of 2018 and 2021 dedicated geotechnical

drill holes for the Project

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16.2.2.  Structural Geology

A 3D structural model had already been created to represent the major Regional Fault structures on the Project property. SRK provided a 3D fault model that was created for the secondary structures for the Project property, where information existed to extend these faults. This model was based on the integration of drill hole data and underground mapping in the old mine- workings. Each of the mineralized zones were modelled separately. Modelling of the secondary faults in the Cow, Valley, Shaft, and Mosquito Zones took place in 2019. Secondary faults in the Mosquito Zone were updated in 2021 and secondary faults in the Lowhee Zone were modelled in 2022.

16.2.3.  Geotechnical Design

16.2.3.1. Geotechnical Design Classifications

A thorough evaluation of geotechnical parameters, laboratory strength testing, kinematic, and empirical analyses have been conducted to support the underground mine design. The deposit lithological facies have been modelled and initial assessments considered the geotechnical characteristics of the facies. The result of this assessment show that the main indicator for rock mass quality on the Project site is the presence of faults and the width of the damage zones associated with each fault or fault intersection.

Based on this assessment, five rock mass classifications with unique geotechnical characteristics were defined. Due to the variability in the Shaft and Mosquito Zones Class 3 Lower was broken out from the upper end of the Class 4 domain to better represent site specific ground conditions. The geotechnical characteristics for these domains are:

 Class 1 and 2: Open Stoping: represents the most competent rock mass in the deposit. It is comprised of massive rock mass, with high intact rock strength. Foliation parallel fractures are less pervasive in this domain.

 Class 3: Open Stoping - Reduced Strike Length: is characterized by moderately jointed rock mass. Foliation is well developed in this domain.

 Class 3 Lower ("Class 3L"): Open Stoping - Further Reduced Strike Length: is characterized by lower RQD. Foliation is well developed in this domain, and the rock tends to break along the foliation planes.

 Class 4: Cut and Fill: represents a rock mass which is not deemed suitable for massive mining due to increased fracture frequency and weak intact rock strength. Excavations in this domain will require limited spans and appropriate support to maintain stability.

 Class 5: Cut-and-Fill: represents the least competent rock mass which is not deemed suitable for massive mining due to increased fracture frequency and weak intact rock strength. Excavations in this domain will require limited spans and appropriate support to maintain stability.

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Stopes in the proven and indicated resource in each vein were reviewed individually and the anticipated distribution of the stopes in each geotechnical class was determined. Ratios of the different classes in each zone were then used to extrapolate classes for the inferred resource.

Rock mass properties for each zone are summarized in Table 16-6.

Table 16-6: Summary of rock mass properties for each qualitative geotechnical classification

Qualitative Geotechnical
Classification

RMR89
(Bieniawski, 1989)

Q'
(Grimstad and Barton, 1993)

Class 1 and 2

55 - 65
(Fair to Good rock mass)

6.67 to 25.00

Class 3

50 - 55
(Fair rock mass)

1.39 to 3.13

Class 3 Lower

35 - 50
(Fair rock mass)

0.37 to 1.67

Class 4

33 - 40
(Poor rock mass)

0.28 to 0.74

Class 5

14 - 33
(Very poor rock mass)

0.09 to 0.28

16.2.3.2. Geotechnical Design Approach

Excavation stability assessments have been completed using well-established empirical and semi- empirical relationships and engineering experience. These relationships enable estimates to be made of the expected mining conditions and support requirements based on a detailed description of the rock mass, excavation geometry, and prevailing stress conditions. The design procedure involves two steps: the quality of the rock mass is rated using a pre-defined classification system, and then the expected performance of the underground openings is predicted using an empirically derived stability correlation with the rock mass quality.

16.2.3.3. Geotechnical Design Criteria (Personnel Access)

Design spans (3 m to 5 m) for which personnel access is required have been reviewed based on the critical span design curve presented by Ouchi et al. (2004). In the static stress condition, the excavations in the Class 1, Class 2, and Class 3 domains are expected to remain stable with standard ground support (i.e., rockbolts and mesh). Additional ground support (i.e., rockbolts, mesh, and shotcrete) will be required in the Class 3L, Class 4, and Class 5 domains to maintain a stable operating span. In some cases, shorter round lengths and spiling may be required in Class 4 and Class 5 ground, determining exact ground support specifications for such situations should be used site specific assessment by site rock mechanics personnel.

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16.2.3.4. Geotechnical Design Criteria (Stope Design and Dilution)

For excavations in which personnel access is not required, such as longhole stopes, designs were assessed using the modified Matthews stability curve after Stewart and Forsyth (1995), and the failure iso-probability curves developed by Mawdesley and Trueman (2003). A range of stope dimensions were evaluated for stability and dilution. A fixed sub-level spacing of 30 m (floor to floor) was used for all mining zones with maximum strike length, stope span, and geotechnical dilution determined for each of the mining zones.

Empirical estimates using the estimated linear overbreak and sloughing ("ELOS") approach and benchmarking have been used to come up with the dilution estimates for the various geotechnical domains in each Zone considering the variation in stope heights (Clark, 1998).

Based upon the rock mass conditions, the stope dimensions and geotechnical dilution estimations presented in Table 16-7 are considered appropriate for each of the Mining Zones.

In all cases, the stope lengths should be adjusted based on varying steepness of mineralized veins and acceptable hanging wall and footwall dilution. Open stoping mining methods are considered high risk in the Class 4 and Class 5 domains for all zones and are not recommended. During the construction of underground development ongoing rock mass and geotechnical assessment has the potential to allow the development of alternative mining methods as the geological and geotechnical understanding of the area improves.

16.2.3.5. Backfill Design

Longhole stoping requires backfill to manage stability and achieve the planned extraction. Paste fill produced from the processed tailings and binding agents is required in longitudinal stopes and closure areas where mining progresses towards previously mined areas. The closure areas will require placement of a higher strength plug or slab where the backfill will be undermined, with regular backfill in the rest of the stope. All excavations should be tight filled to minimize the space for potential failure and rock settlement that could result in surface subsidence. This requirement is especially critical in the shallow areas of the mine where stope failure is more likely to cause surface subsidence.

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Table 16-7: Stope design summary by mining zone

Geotechnical Domain Qualitative rock mass
classification
Mosquito Zone Shaft Zone Valley Zone Cow Zone Lowhee Zone
Good Rock Class 1 Strike length = 15 - 20m
Max width = 15m
Dilution(1) = 0.6 - 1.0m
n/a Strike length = 15 - 20m
Max width = 10m
Dilution(1) = 0.6 - 1.0m
Strike length = 15 - 20m
Max width = 10m
Dilution(1) = 0.6 - 1.0m
Strike length = 15 - 20m
Max width = 10m
Dilution(1) = 0.6 - 1.0m
Strike length = up to 15 m
Max width = 22m
Dilution(1) = 0.6 - 1.2m
Strike length = up to 15 m
Max width = 22m
Dilution(1) = 0.6 - 1.2m
Strike length = up to 15 m
Max width = 22m
Dilution(1) = 0.6 - 1.2m
Class 2
Strike length = 15 - 20m
Max width = 15m
Dilution(1) = 0.6 - 1.0m
n/a Strike length = 15 - 20m
Max width = 10m
Dilution(1) = 0.6 - 1.0m
Strike length = 15 - 20m
Max width = 10m
Dilution(1) = 0.6 - 1.0m
Strike length = 15 - 20m
Max width = 10m
Dilution(1) = 0.6 - 1.0m
Strike length = up to 15 m
Max width = 22m
Dilution(1) = 0.6 - 1.2m
Strike length = up to 15 m
Max width = 22m
Dilution(1) = 0.6 - 1.2m
Strike length = up to 15 m
Max width = 22m
Dilution(1) = 0.6 - 1.2m
Fair Rock Class 3 Strike length = 10 - 15m
Max width = 15m
Dilution(1) = 0.8 - 1.5m
Strike length = 10 - 15m
Max width = 5m
Dilution(1) = 0.8 - 1.5m
Strike length = 10 - 15m
Max width = 5m
Dilution(1) = 0.8 - 1.8m
Strike length = 10 - 15m
Max width = 5m
Dilution(1) = 0.8 - 1.8m
Strike length = 10 - 15m
Max width = 5m
Dilution(1) = 0.8 - 1.8m
Strike length = up to 10m
Max width = 15m
Dilution(1) = 0.8 - 1.5m
Strike length = up to 10m
Max width = 22m
Dilution(1) = 0.8 - 2.5m
Strike length = up to 10m
Max width = 22m
Dilution(1) = 0.8 - 2.5m
Strike length = up to 10m
Max width = 22m
Dilution(1) = 0.8 - 2.5m
Class 3L Strike length = 8 - 10m
Max width = 4m
Dilution(1) = 1.5 - 3.0m
Mining Factor(2) = 50  %, requires leaving rib pillar of 8-10m
Strike length = 8 - 10m
Max width = 4m
Dilution(1) = 1.5 - 3.0m
Mining Factor(2) = 50  %, requires leaving
rib pillar of 8 - 10m
n/a n/a n/a
Strike length = 8 - 10m
Max width = 15m
Dilution(1) = 1.5 - 4.4m
Mining Factor(2) = 50  %, requires leaving rib pillar of 10m
Strike length = up to 8m
Max width = 15m
Dilution(1) = 1.5 - 4.0m
Mining Factor(2) = 50  %, requires leaving
rib pillar of 8 - 10m
Poor to Very Poor Rock Class 4 No bulk mining - over hand cut and fill    
Class 5 No bulk mining - under hand cut and fill    

Notes:

(1) Dilution; indicates the total dilution (hanging wall + footwall dilution).

(2) Mining Factor; indicates the percentage of stopes that are estimated to be recovered at this sub-level spacing and rock mass classification. This percentage is to be applied to the inventory in advance.

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16.2.4.  Ground Support Recommendations

16.2.4.1. Lateral Development

Ground support requirements have been determined using several widely accepted empirical design charts including Barton et al. (1974), Grimstad and Barton (1993), Laubscher (1990), previous SRK experience and experience gained in the Bonanza Ledge Mine, presently in operation, adjacent to the Project. The empirical design recommendations have been adjusted based on SRK's understanding of the expected rock mass conditions within the various geotechnical domains. Table 16-8 lists ground support recommendations for the anticipated range of conditions in geotechnical domains for varying development spans and orientations. Wider mining spans than those considered will require ground support designed on a case-by- case basis, including those for the underground crusher.

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Table 16-8: Ground support recommendations for long-term access and short-term production excavations

Type of Excavation Excavation
Dimensions
Ground Support Classification (Geotechnical Domains)
Good Rock Fair Rock Poor to Very Poor Rock
Class 1 and 2 Class 3 Class 3L Class 4 Class 5
Long Life
Excavations
Main Ramp,
Ramp Re-muck,
Level Access
5.8 mH x 5.3 mW 1.8 m resin
rebar bolts on
1.5 m square
pattern and
#6 galvanized
wire mesh to
1.5 m from the
floor
2.4 m resin rebar
bolts on 1.2 m
square pattern
and #6
galvanized wire
mesh to 1.5 m
from the floor
2.4 m coated
Swellex bolts on 1.0
m square pattern,
#6 galvanized wire
mesh and 50 mm
shotcrete to as
close to the floor as
possible.
2.4 m coated
Swellex bolts on
1.0 m square
pattern, #6
galvanized wire
mesh and 50 mm
shotcrete to as
close to the floor
as possible.
2.4 m coated
Swellex bolts on 1.0
m square pattern,
#6 galvanized wire
mesh and 100 mm
shotcrete to as
close to the floor as
possible.
Other service
drifts
4.3 mH x 4.3 mW
Truck Turn-
around
6.5 mH x 6.0 mW As per above with the addition of:
4.0 m cable bolts (or coupled
Swellex or coupled rebar) on 2.0m
square pattern
As per above with
the addition of:
4.0 m coupled
Swellex on 2.0m
square pattern
n/a n/a
Open
Stoping
In ore
development
4.0 mH x 3.7 mW 1.8 m Swellex
bolts on 1.5 m
square pattern
and #6
galvanized
wire mesh to
1.5 m from the
floor
1.8 m Swellex
bolts on 1.2 m
square pattern
and #6
galvanized wire
mesh to 1.5 m
from the floor
1.8 m Swellex bolts
on 1.0 m square
pattern, #6
galvanized wire
mesh and 50 mm
shotcrete to as
close to the floor as
possible.
1.8 m Swellex bolts
on 1.0 m square
pattern, #6
galvanized wire
mesh and 50 mm
shotcrete to as
close to the floor
as possible.
1.8 m Swellex bolts
on 1.0 m square
pattern, #6
galvanized wire
mesh and 75 mm
shotcrete to as
close to the floor as
possible.

Note: All development through the regional faults and Class 5 ground will require spiling.

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16.2.4.2. Vertical Infrastructure

Existing nearby resource exploration drill holes were photo-logged and used as a guide to the potential local rock mass conditions. These data were used to develop the ground support requirements for the vertical infrastructure per rock mass classification. The McCracken and Stacey (1989) empirical method of assessing raise stability was utilized.

Based on the assessment of the planned locations, the raises are not expected to remain stable if left unsupported through the faults and weaker zones. Ground support is necessary for the raise development and long-term stability. Table 16-9 summarizes the support recommendations based on the planned ventilation raise locations and stability assessment.

It is considered essential to drill a diamond core geotechnical raise pilot hole at the location of each of the proposed raises to confirm the rock quality and unit thicknesses prior to excavation.

Table 16-9: Preliminary ground support recommendations for vertical infrastructure based on Alimak mining

Geotechnical
Domain
Ventilation Raise Dimensions
3.0 m Radius 4.0 m Radius
Class 1-2 No support required. 1.5 m #8 resin rebar on a 1.2 m square
pattern with wire mesh
Class 3 1.5 m #8 resin rebar on a 1.0 m square
pattern with wire mesh
1.8 m #8 resin rebar on a 1.0 m square
pattern with wire mesh
Class 3 Lower 1.8 m #8 resin rebar on a 1.0 m square
pattern with wire mesh and 50 mm
shotcrete
2.4 m #8 resin rebar on a 1.0 m square
pattern with wire mesh and 50 mm
shotcrete
Class 4 1.8 m #8 resin rebar on a 1.0 m square
pattern with wire mesh and 50 mm
shotcrete
2.4 m #8 resin rebar on a 1.0 m square
pattern with wire mesh and 50 mm
shotcrete
Class 5 Avoid development in Class 5 ground.

16.2.4.3. Extraction Sequencing

The overall sequence of veins extraction is recommended to be broadly based on using a footwall to hanging wall approach retaining protection pillars on the cross-cuts, see Figure 16-2. These protection pillars would then be extracted on a hanging wall to footwall approach, retreating out of the cross-cuts. The cross-cut protection pillars need to be of sufficient strike length to prevent over-stressing as the extent of extraction increases.

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Figure 16-2: Schematic of the recommended general extraction sequence, with protection pillars being

retained along the cross cuts

16.2.4.4. Crown Pillar Requirements

Crown pillar assessments have been completed using the Scaled Span method after Carter (2008) for proposed excavation within 50 vertical metres from surface that consists of development drives (cross-cuts, strike drives), underground infrastructure (backfill chamber), and mining blocks (longhole stoping, cut-and-fill). Rock mass characteristics of the Class 3 domain for the Cow Zone, Valley Zone, and Lowhee Zone, and Class 3L domain for the Shaft Zone and Mosquito Zone were used. These parameters are not inclusive of fault zones and crown pillars within fault zones will require further assessment specific to each fault.

The crown pillar is considered a quasi-permanent long-term crown pillar, Class F as per Carter (2008). To achieve a crown pillar with this classification, a minimum rock crown pillar thickness of 15 m below the modelled overburden surface is required in the Cow, Valley, and Lowhee Zones, and 20 m below the modelled overburden surface in the Shaft and Mosquito Zones. Stopes immediately below the crown pillar should be tight filled with cemented rock fill or paste to meet the Class F long-term crown pillar designation.

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16.2.4.5. Existing Underground Infrastructure

Historic mine workings consist of decommissioned portals, decline ramps, drifts, and stopes. ODV has built a 3D model of these mine workings (Figure 16-3). The model of historic workings has been incorporated into the assessment. Required stand-off distances from these workings have been set based on the rock mass quality surrounding these workings. When old workings are anticipated to be intersected, cover holes must be drilled in advance of the development to confirm their location and to determine if they are filled, what they are filled with and to determine if these excavations have been dewatered.

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Figure 16-3: Existing underground workings - plan and section views

Solids provided by ODV, 2018

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16.3. Mine Access

There will be three portals accessing underground ramps: the Cow Portal, the Island Mountain Portal, and the Valley (Main)Portal. Figure 16-4 shows the location of these in relation to the District of Wells.

 

Figure 16-4: Cariboo Gold Project Portal locations

16.3.1. Valley Portal

The preliminary portal box cut excavation slope design parameters and ground support recommendations for the Valley (Main) Portal ("Valley Portal") have been provided based on data collected from two vertical geotechnical drill holes within the proposed box cut location and surface geotechnical investigations for the plant site and rock dumps near the portal.

The design basis includes:

 Permanent slopes in the overburden should be excavated at 2H:1V (30°);

 Slopes within weathered rock should be excavated at 1H:1V (45°);

 The slopes should be vegetated to manage water runoff and prevent erosion;

 A minimum 10 m rock face of Fair rock (RMR 50 to 60) is recommended to establish a 10 m (vertical thickness) brow above the portal;

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 A 3 m catch berm should be maintained at the overburden-weathered rock contact to protect equipment and personnel from local bench instability and loose rock;

Cut-off and toe drains will be installed around the perimeter of box cut at the toe of overburden slope, and at the portal;

Figure 16-5 and Figure 16-6 show the proposed portal design for Valley.

 

Figure 16-5: Plan view Valley proposed Portal

 

Figure 16-6: Valley Portal cross-section

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Excavation support recommendations include self-drilling spiling, rebar, cables, and shotcrete in the brow area and at the start of the decline. Exposed benches will likely need to be shotcreted to maintain long term integrity.

A steel cover (corrugated culvert) will be installed to protect the access against weather conditions and potential falling boulders. Crushed rock around the culvert will stabilize the infrastructure at long term

16.3.2.  Island Mountain Portal

The proposed conceptual design for Island Mountain Portal will be very similar to the Valley Portal, with same slopes for temporary slope stability and Factor of Safety of 1.3. Future work will be required to validate the current assumption.

16.3.3.  Cow Portal

The Cow Portal is already in place for ODV's exploration Cow Mountain Bulk Sample and gives access to the underground ramp. No feature work is required on this existing portal.

 

Figure 16-7: Cow Portal

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16.3.4.  Access Ramps

The planned footwall access ramp locations should be further geotechnically assessed once the decline is developed close to the ore body. This will need to consider the location of the major structures in the footwall relative to the vein system.

16.4. Mine Hydrogeology

16.4.1.  Mine Site Area Hydrogeology

The conceptual hydrogeology for the Mine Site area can be described as a mountain-valley hydrogeological system that has been altered by historical and current mining processes. The conceptual flow system for the Mine Site Complex is shown on Figure 16-8 and the conceptual flow system for the Historical Tailings Deposit Area is shown on Figure 16-9.

The overburden of the Jack of Clubs Valley is a sequence of interlayered aquifers and aquitards deposited during previous glaciations. Overall, the Mine Site hydrostratigraphy has been sub- divided into 10 hydrostratigraphic units, consisting of:

 Four local or regional overburden aquifers (Fill, Placer Outwash, Alluvium / Alluvial Fans, and Wells Aquifer),

 Three local or regional overburden aquitards (Till/Lowlands, Historical Mill Tailings, Glaciolacustrine), and

 Four bedrock units (Siltstone, Mine Area Bedrock, Regional Bedrock, and the Jack of Clubs Fault Zone).

In a broad sense, groundwater flow in the overburden near Jack of Clubs Valley can be classified into two systems: a deep groundwater system (i.e., Wells Aquifer hydrostratigraphic unit) and a shallow groundwater system (i.e., Alluvium / Alluvial Fans and Placer Outwash hydrostratigraphic units), which are separated by a thick package of low permeability clays and silts (Glaciolacustrine hydrostratigraphic unit). The Wells Aquifer is the principal groundwater source for municipal water supply for the District of Wells.

Groundwater elevations can generally be considered a subdued reflection of topography, with higher groundwater elevations in the upland areas and lower groundwater elevations in the lowland areas. Similarly, regional groundwater flow directions are generally from areas of high elevation to areas of low elevation. Both groundwater elevations and flow directions are locally influenced by underground mine workings.

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Within the Mine Site Complex area, there are over 180 km of historical underground mine workings that strike perpendicularly beneath the mountains that straddle the main Jack of Clubs Valley. These historical underground mine workings act as hydrogeological controls (local sinks), influencing the groundwater flow in the area and contributing to a downward hydraulic gradient near the underground workings. The historical underground mine workings are partially flooded, with the flooded water level controlled predominantly by adits in the valley walls located approximately 5 m to 20 m above the surface of the valley floor. These adits connecting with the valley walls are free draining and discharge groundwater seepage locally to the margins of the valley. Historical mine workings above the adit elevations daylighting in the valley walls are assumed to be predominantly dry and contributing to localized depressurization of the surrounding bedrock. The extent of depressurization is interpreted to be small based on hydraulic head data that shows saturated bedrock at higher elevations, and in consideration of the low bedrock hydraulic conductivity.

Groundwater seepage from the mine openings is observed and is greater in spring and early summer during the high water freshet period, and declining or ceasing during the drier summer and in the winter. The flooded workings are not known to have bulkheads and therefore will influence hydraulic heads by equalizing the hydraulic head across the flooded interconnected workings. Other groundwater seepages have been observed in the Wells Historical Tailings Deposit, in the area delineated as "Groundwater Seepage Area" on Figure 16-8. This seepage area is planned for investigation to evaluate if its associated with an exploration hole that encountered artesian conditions.

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Figure 16-8: Groundwater recharge and discharge - Mine Site area

(Golder, 2021a)

 

Figure 16-9: Inferred groundwater flow direction - Mine Site area

(Golder, 2021a)

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16.4.2.  QR Mill Area Hydrogeology

The QR Mill area is located on a relatively exposed bedrock plateau, with a steep (greater than 300 m) topographic decline along the southern side, down to the Quesnel River. The plateau, being exposed during the period of the last glaciation, had much of its overburden eroded and removed by the glaciers, resulting in a relatively thin overburden layer, comprised predominantly of glacial till overlying bedrock. The thickest overburden is located in a small, north-south oriented depression located to the east of the QR Mill. Historical and current mining activities have altered the area, with three small networks of historical underground mine workings, several small open pit mines, and the QR Mill tailings storage facility ("TSF"), which sits in the saddle of the north-south oriented depression between areas of higher elevation to the east and west.

The hydrostratigraphy of the QR Mill area has been seperated into four hydrostratigraphic units:

 Thin overburden (glacial till);

 Shallow weathered bedrock (upper 35 m of bedrock);

 Deep Bedrock; and

 Wally's Fault, located under the western portion of the QR TSF with an apporixately north- south orientation.

The groundwater levels across the area are a subdued reflection of topography and are consistently close to the ground surface, with inferred preferential flow through the shallow weathered bedrock. The hydraulic properties of Wally's Fault are untested, but it is possible the fault acts as a preferential flow zone. Groundwater recharge occurs primarily in upland areas of higher elevation and groundwater discharge occurs in areas of lower elevation. Shallow groundwater levels across the area vary seasonally and experience two groundwater peaks during the year: one during the snowmelt/freshet period and one in the fall. Figure 16-10 shows a conceptual interpretation of the groundwater recharge and discharge within the QR Mill area.

The pond levels of the QR TSF, which sits above the saddle of the north-south oriented topographic depression, provide a driver for groundwater flow. Seepage from the QR TSF is collected in ponds to the north and south of the dams, with further seepage to the north to the Rudy Creek Valley and to the south via water management infrastructure and ultimately to Creek #3. The Main Zone Pit ("MZP") acts as a local sink for groundwater and outflows to Creek #3 as part of the local water management. Two other flooded pits are present in the area (North Lobe Pit and Northwest), which may locally affect groundwater flow, though they have no defined outflow. Shallow groundwater quality downgradient of the QR TSF shows less influence of mine activities compared to shallow groundwater quality in closer vicinity to the QR TSF.

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Three historical underground workings are present in the QR Mill area, with portals connected to surface (Midwest Portal, West Portal, and North Portal). Groundwater levels in the West and Midwest Portal are either near ground surface or there is observed seepage discharging to ground surface. The orientation of the underground connected to the North Portal suggests this underground is free draining, with discharge at the portal. The inferred groundwater flow directions within the QR Mill area are presented in Figure 16-11.

 

Figure 16-10: Groundwater recharge and discharge - QR Mill area

(Golder, 2021a)

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Figure 16-11: Inferred groundwater flow direction - QR Mill area

(Golder, 2021a)

16.4.3.  Groundwater Inflow Predictions - Mine Site Complex Area

Two groundwater numerical flow models were developed for the Project to quantify changes in groundwater quantity within the Mine Site Complex area (Mine Site Model) and the QR Mill area (QR Model). The Mine Site Model (Golder 2021b), which was calibrated to hydraulic head and stream base flow estimates for existing conditions, was used to estimate groundwater discharge to the underground workings during the mine construction and operations.

 Transient model simulations were prepared to simulate the progressive development of the underground mine over the LOM for a 6,000 tpd scenario, with the prediction results presented in Table 16-6. Although the transient simulations of the 8,000 tpd mine plan has not been completed, a steady-state simulation was prepared for the ultimate mine extent and the more conservative alternative scenario. Predicted inflow was within approximately 3% of the predicted values in Table 16-6 (12,500 m3/day respectively). Considering that the method used to simulate the underground biases the flow high (See Section 16.4.3) this is considered a negligible change. The predictions were made for two scenarios:

 Base Case - Model simulation with calibrated model values.

 Alternative Scenario - Hydraulic conductivity of bedrock increased by a factor of two.

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Dewatering of the existing underground was assumed to occur concurrent with the development of the proposed underground. It was assumed that the dewatering target for the existing underground would be 50 m lower than the maximum depth of the Project underground to minimize groundwater inflows to the new workings. The mine plan development and changes in dewatering were implemented on an annual basis.

A summary of average dewatering rates for the mine workings is provided in Table 16-6 for each year of development. Inflows to the underground ramp up quickly as the maximum depth of dewatering/mine development is reached, and then decrease and stabilize as storage effects diminish.

Inflow estimates were made for the development of a starter zone in Shaft and Mosquito zones from the Island Mountain portal and the advancement of a ramp from the Cow Mountain area's Valley Portal to wards Island Mountain prior to the operational mine plan. For this period of development a combined inflow of up to 910 m3/day was estimated.

At the end of mining, operation of the mine will result in pressure drawdown of approximately 450 m in the immediate vicinity of the mine workings compared to existing conditions and diminish away from the mine workings. In the area of the Wells Aquifer, water level drawdown is predicted to change by 5 m or less, and is mitigated by the valley being a groundwater discharge zone, and recharge from Jack of Clubs Lake and Willow River.

Table 16-10: Predicted Mine groundwater inflows m3/day

Year Base Case Alternative Scenario (Higher
Bedrock Hydraulic
Conductivity)
1 8,650 11,925
2 9,650 12,775
3 9,250 12,375
4 9,375 12,650
5 9,275 12,600
6 9,200 12,525
7 9,175 12,500
8 9,150 12,500
9 9,150 12,500
10 9,175 12,500
11 9,150 12,500
12 9,150 12,500
Note: predictions are for 6000 tons per day Mine Plan

 

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The following is noted regarding the change in the simulated hydrogeological conditions because of the development of the Project:

 The dewatering of the historical workings, and excavation and dewatering of the new underground development, are expected to lower groundwater levels in the Mine Site Complex area, with local depressurization of over 450 m near the workings.

 The underground workings will act as a hydraulic sink, reducing baseflow to some surface water features.

 The annual average for year 2, representing the highest inflows were predicted to be 9,650 m3/day (402 m3/hr) for the Base Case and 12,775 m3/day (532 m3/hr) for the alternative scenario with higher assumed bedrock hydraulic conductivity.

The presented seepage estimates are based on assumed conditions during development of the Project. The actual groundwater inflows could however vary from those presented due to general uncertainty associated with the subsurface conditions in the Mine Site Complex area, and recognized gaps in the data.

16.4.4.  Limitations of Inflow Predictions

Key assumptions and limitations relevant to the numerical groundwater model of mine dewatering include the following:

 The historical and Project workings have been represented using discrete feature elements of high hydraulic conductivity (1 m/s). This method effectively simulates the connection of flooded mine workings across the study area; however, use of discrete feature elements can result in artificially high negative pressures in the unsaturated zone through the equalization of hydraulic head across both the saturated and unsaturated workings. The negative pressure can increase flow to the underground above that which would occur and result in lower hydraulic heads. This will bias changes in streamflow and flow to the underground to be conservatively high (i.e., overestimate groundwater inflow to the underground and overestimate baseflow loses). To understand environmental effects of the Project (maximum underground water management and stream base flow changes), the limitation of the adopted method is considered conservative.

 Inflow predictions were completed for the 6,000 tpd mine plan. When defined, the transient 8,000 tpd mine plan should be simulated and used to verify life of mine groundwater inflow and changes in groundwater flow conditions. Although the transient simulations of the 8,000 tpd mine plan has not been completed, a steady-state simulation was prepared for the ultimate mine extent and the more conservative alternative scenario. Predicted inflow was within approximately 3% of the predicted values in Table 16-6 (12,500 m3/day respectively). Considering that the method used to simulated the underground biases the flow high this is considered a negligible change.

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 It is assumed that all mapped historical workings remain open, and water may flow unimpeded through the network, which represents a worst-case scenario in terms of dewatering. 

 The simulated mine dewatering rates represent the rates required to maintain a dry working environment throughout the entire extent of both the historical and new mine workings. 

The simulated mine dewatering rates represent the rates required to maintain a dry working environment throughout the entire extent of both the historical and new mine workings. 

16.5. Underground Mining Method

The mining method is longitudinal retreat long-hole stoping using a combination of cemented rockfill ("CRF") and paste fill. This decision was driven by the average vein width, contained metal (value), and ground conditions. See Figure 16-12 for an illustration of the selected method.

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Figure 16-12: Longitudinal longhole retreat - Long section

The range of stope dimensions for the mine is shown in Table 16-11.

16.5.1.  Selection of Economical Material for Life of Mine

Minable Shape Optimiser® ("MSO") was used to determine the correlation between cut-off grade and the resulting mineable envelope. The optimization is driven by the following inputs:

 Cut-off grade;

 Mining extents;

 Min and max stope width;

 Level spacing;

 Min and max dip angle;

 Dilution Parameters.

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Table 16-11 illustrates general input parameters used in the MSO runs.

Table 16-11: MSO input parameters

Parameters Unit Value
Cut-off grade g/t Au 1.7
Min mining width m 3.7
Level spacing m 30
Section spacing m 5
Min trans pillar width m 5
Min dip angle deg 45
Max dip angle deg 135
Max strike angle deg 45
Max strike angle change deg 45

MSO shapes were generated by InnovExplo Inc. ("InnovExplo"). Internal checks on the stope shapes were made to account for proximity to mined old workings and maintaining an adequate buffer for surface crown pillars. The refined MSO results were used for mine development design using Deswik CAD and integrated in an Excel spreadsheet to sequence and schedule the mine life. Final mine design and scheduling was revised by InnovExplo. Inventory quantities along with cut-off grade and modifying factors can be found in Section 16.8.

16.5.2.  Cut-off Grade Calculation

The following cut-off grades were used for the final mine design:

 2.5 grams per tonne ("g/t") gold ("Au") mineralized material envelopes for potential minable stopes design. These core envelopes were used for the main mine design (ramps, access, etc.).

 1.7 g/t Au mineralized material - included if only additional minor developments in mineralized material were required.

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16.6. Mine Design

The Project comprises five main zones:

 Shaft Zone;

 Valley Zone;

 Cow Zone;

 Mosquito Zone;

 Lowhee Zone.

The vertical extent of all mineable blocks is 660 m and is open at depth and along strike. The mineralized zone is comprised of discrete, parallel mineralized material lenses. These lenses strike northwest and dip predominantly sub-vertically. The mine is accessed by three portals from surface directly connecting to Cow Zone, Shaft Zone, and Valley Zone. A series of internal ramps connected to the main ramps provide access to all mining zones, as illustrated in Figure 16-13.

 

Figure 16-13: Cariboo Gold Project - Longitudinal Section Looking North

16.6.1.  Development Design

Level accesses and development will be excavated using conventional drill and blast techniques and decline and inter-zone ramp development will be developed with road headers.

Declines and inter-zone ramps linking the different portals to the five main mining zones are strategically placed throughout the mine to facilitate efficient material movement by trucks. The development profiles by type are listed below in Table 16-12.

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Table 16-12: Lateral development dimensions and cost category

Development type Development profile Capital/ Operating
Main ramp 5.8mH x 5.3mW Capital
Ramp re-muck 5.8mH x 5.3mW Capital
Level access 5.8mH x 5.3mW Capital
Truck Loading/Unloading bay 7.5mH x 5.3mW Capital
Level haulage 4.3mH x 4.3mW Capital
Paste transfer bay 5.3mH x 5.3mW Capital
Pump station 5.3mH x 5.3mW Capital
Refuge station 5.3mH x 5.3mW Capital
Level re-muck 5.3mH x 5.3mW Capital
Sump 5.3mH x 5.3mW Capital
Vent access 4.3mH x 4.3mW Capital
Truck load-out 5.3mH x 5.3mW Capital
Electrical sub station 5.3mH x 6.0mW Capital
Mineralized material drift 4.0mH x 3.7mW Operating

16.6.2.  Main Infrastructure

The main infrastructures for the Project include the main ramp, the maintenance shop, the battery service bay, the sumps and pumping stations, electrical substations, powder and cap magazines, rock breaker and crushing facility, and the material sorter waste handling facility.

The crushing facility is designed to handle 8,000 tonnes ("t") of mineralized material per day. It is located along the main Valley ramp in the eastern extent of Valley Zone, as shown in Figure 16-14.

The Mine Site Complex will include two tunnel portals to access the underground mine. Valley Portal is located on the southern limit of the Mine Site Complex while Island Mountain Portal is located across the Willow River Bridge and on the north side of Highway 26. The development of both portals will require excavation of overburden and rock, and the Valley Portal will require the removal of historic concrete structures including a foundation and tunnel portal.

The Valley Portal ramp will be used for development in pre-production mode and as an access road for material sorter waste transportation to the BFA. Valley Portal excavation slopes will include a series of benches and may require rock support measures. The ramp progresses direct to the Cow Zone with a ninety-degree, three-way intersection leading to the Valley Zone. This layout allows for traffic alleviation after the intersection proceeding to the two zones. This ramp will be the main access ramp for services. A backfilled multi-plate arch structure will provide tunnel access, as a mitigation of surface water ingress and snow accumulation along the length of the portal excavation.

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The Island Mountain Portal will be the main underground access for Shaft Zone and Mosquito Zone during the initial phase of mine development. Once the Valley Portal is connected to the Island Mountain Portal via the underground ramp, the Valley Portal will become the main access portal for production. Subsequently, use of the Island Mountain Portal will be for an emergency egress.

The associated infrastructure at each portal during the development period will include an electrical substation, temporary ventilation fans and heater, and water management infrastructure.

 

Figure 16-14: Location of crushing facility and vertical conveyor

16.6.3.  Level Layout Design

The typical level layout of the mine consists of the level access, ventilation access, loading bay, sump, electrical substation ("ESS"), refuge station, haulage drift, and mineralized material drift. The typical mine level is shown in Figure 167. Minor variations exist between levels due to the trend of the mineralized material veins, logistic, or needed infrastructure.

Specific areas mainly pertaining in the vicinity of the level access will be capitalized as per Figure 16-15 (blue, green, and cyan), with remaining development categorized as operating development (pink).

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Figure 16-15: Plan view of typical level layout

The level access will be excavated to the same dimensions as the main ramp, 5. 8 metres high ("mH") x 5.3 metres wide ("mW") to allow for truck access. The typical electrical substation is located near the level entrance, with a sump located further into the level along the level access.

The level access typically intersects the haulage drift (4.3 mH x 4.3 mW), allowing for access of a 10-t capacity scooptram load haul dump ("LHD") into the mineralized material drives. The smaller profile dimension serves as a safeguard restricting haul trucks to operating in the level access and truck loading complex.

The haul drift is typically linked to mineralized material drives (4.0 mH x 3.7 mW), providing access to the production stopes. These drifts are generally positioned in the center of the veins to allow maximum stopes availability for production. The production drilling equipment has been selected to allow operation within the smaller profile dimensions and minimize dilution.

Operating development portions of levels were designed with no gradient for the purposes of this PEA evaluation, while the capital portions of levels were designed with gradients. Sumps were placed at a low point along the access to facilitate drainage. Both sumps and electrical substations will be 5.3 mH x 5.3 mW, however, the sump will have a length of 12 m and a gradient of -15%; while the electrical substations will have a length of 18 m.

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A truck loading and unloading area is planned for all levels that will produce mineralized material. This area includes a 33 m long truck turnaround and dumping (7.5 mH x 5.3 mW), with a parallel 33 m long loading access drift (5.3 mH x 5.3 mW) and one perpendicular drift (6.0 mH x 5.3 mW) serving as a loading bay.

The truck loading access drift will be excavated at a +2% gradient with the parallel loading access drift to be excavated at a 2% gradient. The loading bay will be excavated at a +8% gradient to provide an elevated offset allowing a loaded LHD to dump material directly into a truck from above. Figure 16-16 provides a typical truck loadout area.

Figure 16-16: Isometric view of typical truck loading area

16.6.4.  Production Stopes

Production stopes will consist of a set of 89 millimetres ("mm") or 102 mm blasthole rings configured on a dice five pattern adapted for each zone. All blastholes will be loaded with emulsion along with detonator, booster and stemming in each hole. A slot area consisting of a slot raise utilizing a contractor V30 and 102 mm raise holes drilled is located in the middle of the stopes. Blastholes will be drilled using a longhole drill from the top sill down to the undercut drift. Figure 16-17 and Figure 16-18 details the specific drill configuration for production stopes in each zone. Typical stope blasting will be in two blasts: a primary opening to achieve 20% void indices and a final blast.

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Figure 16-17: Typical drilling configuration for Valley Zone, plan view

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Figure 16-18: Typical drilling configuration for Valley Zone, side view

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16.6.5.  Shaft Zone

The largest zone of the Project (by inventory tonnage) is the Shaft Zone. This zone encompasses 20 levels from Level 760 to Level 1370 at a sublevel spacing of 30 m floor-to-floor, with its lowest level currently reaching a mean sea level ("msl") depth of approximately 760 m. Given the mountainous terrain above the zone, the depth from surface is highly variable. The zone's horizontal extent stretches approximately 1 kilometre ("km") along strike.

The average stope widths in this zone is 4.3m with a lengths from 8 m to 15 m on strike. Stope strike length refers to the length of the stope along the strike of the mineralized zone that can remain open for a certain period before being backfilled, due to geomechanical considerations. This is most often due to maximum hydraulic radius dictated by local ground conditions surrounding the stopes.

Shaft Zone is expected to contribute 12.7 million tonnes ("Mt") at an average grade of 3.72 g/t to the mine production over the life of the mine. Additional information on stope dimensions can be found in Section 16.2-Rock Engineering. A longitudinal view of the zone is included in Figure 16-19 below. The Shaft Zone is intersected along strike by the Aurum Fault dipping approximately 50 degrees northeast; flanked by the Shaft Zone Fault 1 to the east and the Jack of Clubs Fault to the southeast as shown in Figure 16-20.

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Figure 16-19: Longitudinal section of Shaft Zone looking north

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Figure 16-20: Perspective view of Shaft Zone showing traversing fault structures, looking north

16.6.6.  Valley Zone

The Valley Zone comprises 15 levels from Level 740 to Level 1160 at 30 m floor-to-floor and reaches a depth of around 740 m msl. The Valley Zone spans 570 m along strike. Stope widths in Valley Zone average 4 m in the upper section and average 4.4m in the lower section. Stope length on strike averages 16 m for all veins in the zone. The Valley Zone is expected to contribute 4.4 Mt at an average grade of 3.31g/t to production over the life of the mine. A longitudinal view of the zone is included in Figure 16-21.

The Valley Zone is bisected horizontally at its mid elevation by Shaft Zone Fault 1 dipping at approximately 75 degrees east; and has minor intersection with the Jack of Clubs Fault Damage Zone on the western extent, while the Aurum Fault crosses the lower five levels of the zone. The fault structures are shown in Figure 16-22.

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Figure 16-21: Longitudinal section of Valley Zone looking north

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Figure 16-22: View of Valley Zone showing traversing fault structures, looking north

16.6.7.  Cow Zone

The Cow Zone encompasses 13 levels from Level 1040 to Level 1385 at 30 m spacing floor-to-floor to a depth of approximately 1,040 m msl. The zone spans almost a kilometre along strike with stope widths averaging 4 m. Stope length on strike averages 15 m for all veins. The Cow Zone is expected to contribute 6.8 Mt at an average grade of 3.03 g/t to production over the life of the mine. A longitudinal view of the zone is included in Figure 16-23.

The levels are intersected by four distinct faults striking offset by about 25 to 35 degrees from the zone axis as shown in Figure 16-24. The No1 Fault cuts across the northwest corner of the zone, intersecting the six lower levels of Cow North and creating the least amount of contact out of the four traversing faults. The Lowhee Fault, Sanders Fault, and Rainbow Fault cut across most of the zone and access ramp.

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Figure 16-23: Longitudinal section of Cow Zone looking north

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Figure 16-24: Perspective view of Cow Zone looking northeast showing fault structures

16.6.8.  Lowhee Zone

The Lowhee Zone encompasses 10 levels from Level 1160 to Level 1430 at 30 m spacing floor-to- floor to a depth of approximately 1,160 m msl. The zone spans almost a kilometre along strike with stope widths averaging 4 m. Stope length on strike averages 15 m for all veins. The Lowhee Zone is expected to contribute 1.6 Mt at an average grade of 2.93 g/t to production over the life of the mine (see Figure 16-25 and Figure 16-26)

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Figure 16-25: Longitudinal section of Lowhee Zone looking north

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Figure 16-26: Perspective view of Lowhee Zone looking northeast showing fault structures

16.6.9.  Mosquito Zone

The Mosquito Zone encompasses 11 levels from Level 1050 to Level 1340 at 30 m spacing floor-to- floor to a depth of approximately 1,050 m msl. The zone spans over 700 m along strike. Stope length on strike averages 13 m for all veins. The Mosquito Zone is expected to contribute 2.5 Mt at an average grade of 3.29g/t to production over the life of the mine. A longitudinal view of the zone is included in Figure 16-27. The zone is traversed diagonally along strike by the Mosquito Fault running NW-SE. The fault dips approximately 45 degrees northeast as shown in Figure 16-28.

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Figure 16-27: Longitudinal section of Mosquito Zone looking north

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Figure 16-28: Perspective view of Mosquito Zone looking northeast showing fault structure

16.6.10.  Mine Dilution and Recovery

In accordance with the geotechnical guidance developed by SRK (see Section 16.2), a strategy of under-drilling narrow stopes to experience 'internal' dilution within mineralized zones (sloughage will be mineralized) as part of the "total" dilution will be pursued. External mining dilution has been evaluated for each zone and considered by adding a specific ELOS distance in metres (Equivalent Linear Overbreak Sloughing) on the hanging wall and footwall. This strategy can be seen in Figure 16-29.

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Figure 16-29: Internal dilutions strategy for stopes wider than the minimum mining width

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Geotechnical considerations prevent some fraction of mineralization from being mined with the longhole method. As per Section 16.2, mineralization, categorized as Class 4 or Class 5, cannot be mined with longhole stoping. This categorization was provided as a systematic review of photo- logging for each zone. As these bad ground areas are disseminated in all veins, this tonnage was then removed to longhole stope tonnes, but not development tonnes, under the assumption that in practice a stope would be deemed un-mineable after top and bottom access has been established.

A mining recovery factor was then applied to the mined tonnes; mining recovery of all development was assumed to be 100% and mining recovery factor of stopes was applied at 95%.

16.6.11.  Mine Physicals

The Project required approximately 242 km of development, including 2 km of vertical development. Of this development, 162 km occurs in mineralized material and 80 km in material considered as waste. The waste lateral development metres by zone are shown in Table 16-13. Lateral development metres occurring in material above cut-off grade ("CoG") are shown in Table 16-14.

Table 16-13: Lateral development of waste by zone

Zone Metre Tonne
Cow 37 044 1 976 419
Valley 22 524 1 158 638
Shaft 56 001 3 239 067
Mosquito 19 317 1 153 991
Lowhee 9 765 561 132
Infrastructure 2 630 197 642
Total 147 281 8 286 890

Table 16-14: Summary of total lateral development in mineralized material


Zone Metre Tonne G/t Au
Cow 21 779 902 505 3.14
Valley 13 504 559 604 3.60
Shaft 44 494 1 843 824 3.59
Mosquito 7 987 330 995 3.40
Lowhee 5 317 220 327 2.86
Total 93 080 3 857 255 3.43

 

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The Project has approximately 28.2 Mt of mineralized material. Of this material, approximately 24.3 Mt are from longhole production. The production distribution is illustrated in Table 16-15.

Table 16-15: Summary of total recovered production tonnes by zone

Zone

Tonne

g/t Au

Cow

6 844 260

3.03

Valley

4 426 745

3,31

Shaft

12 774 118

3,72

Mosquito

2 501 858

3,29

Lowhee

1 608 283

2,93

Total

28 155 264

3.40

16.7. Material Handling

The haul truck and LHD fleet will handle mineralized and waste rock material. Development headings on levels will be mucked with the 10 t scooptram LHDs. This material will be taken to level re-mucks where they will be transferred to the 50 t haulage trucks. Main decline or ramp headings will be mucked with the 14 t LHD fleet directly as they can accommodate the larger equipment. Waste material will be used as backfill material wherever possible, stored underground for later use ore hauled to the Bonanza Ledge Site waste rock storage facility ("WRSF").

Stopes will be mucked using the 10 t LHD fleet. Similarly, to development headings, the excavated material will be transferred to a level re-muck whereupon the material will be transferred to 50 t trucks using the 14 t LHD fleet. Mineralized material will be taken to the underground crusher. This crushed material will be transferred to the material sorting facility on surface using a vertical conveyor.

If required, the material sorting will produce waste material that will be returned underground, using a waste pass. This crushed waste material will be either used in cemented waste rock backfill or hauled to the Bonanza Ledge Site WRSF.

All LHDs and trucks will include automation options. LHDs will include tele-operated capability to allow mucking and re-handling operations to continue between shifts. Trucks will include autonomous driving mode to operate through shift changes. Mine communication system will enable tele-operated loading, autonomous hauling and autonomous dumping. This autonomous capability is expected to realize higher daily trucking productivities.

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16.7.1.  Material Handling Infrastructure

Haulage distances between zones and crushing facilities are long and autonomous truck haulage will be used. Mineralized material passes will store the feed for two parallel Valley crushing circuits. This system is designed to convey 8,000 tpd of mineralized material to the vertical conveyor. The infrastructure required to support the processing rate and the overall material handling is listed below:

 Grizzly and rock breaker stations;

 Mineralized Material Silos;

 Mineralized Material Chutes;

 Waste pass;

 Waste Pass Chute;

 Vibrating grizzly feeders;

 Pan Feeders;

 Belt Magnets;

 Dust Collectors;

 Electrical distribution and communication;

 Jaw crusher (x2);

 Cone crusher (x2);

 Vibrating screen deck (x2);

 Conveyors (x9);

 Vertical Conveyor.

Waste coming from the material sorting process on surface will return underground via a waste pass. This waste will be hauled to stopes as backfill or hauled to the Bonanza Ledge Site waste rock storage facility ("WRSF") using an additional 50 t truck fleet. Figure 16-30 is an elevation view of the mineralized material and waste handling facilities.

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Figure 16-30: Elevation view of the U/G mineralized material and waste handling

Grizzly and Rock Breaker Stations

The material handling infrastructure includes two identical grizzly and rock breaker stations both with a capacity of 4,000 tpd. Both dump stations will be situated above the crusher level. Dump Station One will handle material from the Shaft and Mosquito Zones and Dump Station Two will handle material from Valley and Cow Zones.

The grizzly and rock breaker stations are designed for simultaneously dumping two trucks. Each opening of the grizzly has a dimension of 400 mm x 400 mm. Each of the dump stations will have 3 m diameter silo excavated below to feed ore to the primary crushing circuits. Each station is equipped with hydraulic hammers designed to fully cover the grizzly. The operator's cab will be installed to ensure the operator has an unobstructed view of the whole grizzly.

The rock breaker power unit is fed 600 Volt ("V") power from the crusher substation via boreholes. All electrical and control equipment will be in the workplace. The local loads are fed from a 400A distribution panel. The electrical loads in the area will be comprised of lighting, welding plugs and 120V outlets. The programmable logic controller ("PLC") control system has a local HMI, instrumentation, and fiber optic communication. A radar level transmitter provides the actual level of mineralized material to the control system and operator. Communication infrastructure will have sufficient bandwidth to permit remotely teleoperated and fully autonomous rock breaker operation.

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Mineralized Material Feed Chute

The mineralized material feed chutes are located below their respective silos and ahead of the comminution circuits. The choke gates control the flow rate from the silo to the vibrating grizzly feeder.

Primary Crusher Station

The Primary Crusher consists of a Jaw Crusher that will reduce material to less than 90 mm in size. The system is designed for 240 tonnes per hour ("tph") to achieve an average daily production of 4,000 tpd circuit.

The crushed material is discharged onto a conveyor that delivers it to the screen decks. The material travels past a belt magnet to remove tramp steel while enroute to screening.

Sizing Station

A vibrating multi deck screen separates the mineralized material into oversize and undersize fractions. The undersize fraction discharges into the top of the crushed mineralized material silo. The oversize stream is conveyed to the secondary crushing stage for further size reduction.

Secondary Crushing Station

The Secondary Crushing station has a Cone Crusher reducing the material size to 22 mm or less. The secondary crusher products are conveyed to the Primary Crusher product conveyor and undergo sizing once again.

Crushed Mineralized Material Feed Chute

The Crushed Mineralized Material Feed chutes are located below their respective silos. The press frame gate controls the material flow rate from the silo to the vibrating pan feeder. The vibrating pan feeder metres the feed rate onto the Crushed Mineralized Material Feed Conveyor.

Crushed Mineralized Material Feed Conveyor

The Crushed Mineralized Material Feed Conveyor brings material from either, or both, Crushed Mineralized Material Feed Chutes moving the material to the second to last belt underground, the Crushed Mineralized Material Transfer Conveyor.

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Crushed Mineralized Material Transfer Conveyor

The Crushed Mineralized Material Transfer Conveyor discharges into the Crushed Mineralized Material Transfer Chute feeding the vertical conveyor.

Vertical Conveyor

The Vertical Conveyor delivers mineralized material to surface from underground.

Dust Collection

Dust Collection and suction points will be located strategically along the processing to limit airborne dust contaminants.

Control System

All equipment will have local manual start, stop, and auto control stations. The stations connect to the larger command and remote-control system.

Fire Detection and Suppression

Fire detection and suppression system will be installed at critical points of the material handling system components.

Electrical Distribution and Communication

The power for the material sizing and handling system will be fed at 13.8 kilovolt ("kV") from the mine distribution. The power can be fed to junction boxes at 13.8 kV from two directions (Valley Zone and Shaft Zone), providing supply redundancy.

Three electrical rooms (one at the crushing stations, one in the middle on the ramp, and one close to the dump area) each includes a 2 megavolt-amperes ("MVA") 13.8/0.6 kV transformer, distribution panel, control cabinet and communication equipment. These substations provide the electrical and communication infrastructure necessary for the proper functioning of the rock breaker, loading station. The equipment and work included are those represented on the drawing and described in this section.

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The main communication equipment includes fiber cables between each electrical room. The fiber optic cables serve the PLC system for rock breaker, loading station communication. At each electrical room, a communication panel will feed the local equipment.

For each area, a phone is provided, camera for remote monitoring, and minimal fire alarm system.

Waste Truck Chute

The truck chute is located at the bottom of the waste silo and is used to load trucks transporting waste from underground to Bonanza Ledge Waste Pile for final disposal, see Figure 16-31. The truck chute is designed to reduce the required infrastructure while increasing the capacity. The chute's flow is regulated by a press-frame with an arc gate. The press-frame is mounted to the excavation roof to maintain ease of access to the room.

 

Figure 16-31: Waste truck chute

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The waste chute area is fed 600 V power from the local substation and all electrical and control equipment will be in the field. A 400 A distribution panel will feed local loads.

Electrical loads in the area include lighting, welding plugs and 120 V outlets. The PLC based control system will have local HMI, communication with fiber optic and instrumentation. The HMI provides the truck operator information and control of the chute.

16.7.2.  Backfill Strategy

Work relating to backfill operations was completed by WSP-Golder.

The mining method recommended is longitudinal retreat long hole mining. All stopes will be backfilled with a combination of cemented rock fill (CRF) or paste fill. Paste will also be used to fill old working area.

16.7.2.1. Pastefill

The paste primary network consists of cascading boreholes between levels and lateral level pipelines and will connect the surface paste plant to the secondary network of Valley Zone, Cow Zone, Shaft Zone, and Mosquito Zone. The primary network will have a total length of 9.4 km, approximately, and will allow the pastefill to be delivered to mine levels then to the mined-out stopes through the secondary and tertiary network. First, the primary network comprises a main fill line from the surface pastefill plant to the Valley Zone. Then, from the Valley Zone, piping will be installed in the connection ramps to send fill to the Shaft Zone and Cow Zone. A schematic of the paste distribution system is shown on Figure 16-32.

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Figure 16-32: Longitudinal View of Paste Network for Cariboo Project

The piping system underground is comprised of 203 mm Schedule 80 piping for the primary network and 200 mm Schedule 80 piping for the secondary network, whereas the tertiary network (final pipe runs to stopes) will use 203 mm HDPE DR9 pipe. Knowing that no tailings ponds are planned for this project, paste productivity must be optimal. In order to facilitate paste fill operation readiness, the tertiary network will consist in HDPE pipe with Victaulic couplings. These pipes are easy to move and reinstall in the next sequenced stopes. Figure 16-33 shows a plan view of typical level paste line configuration of the Cow Zone with vertical the primary network in green, the lateral primary network in red, the secondary network in cyan, and the tertiary network in magenta.

 

Figure 16-33: Isometric view of typical network distribution - Level 1240 (Cow Zone)

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The paste fill will be extensively used and will have to be operated without any downtimes. The main and secondary lines will be doubled, in the event of breakdowns. These additional lines will allow operations continuity and avoid an expensive process plant shutdown. In case of site unavailability, the old historical workings will serve as backup. Table 16-16 presents a summary of pipe lengths by zone.

Table 16-16: Paste fill network distribution summary

Pastefill Network Type Backup Infr. Valley
(m)
Shaft
(m)
Cow
(m)
Mosquito
(m)
Total
(m)
Principal paste fill
network - Vertical
203 mm
Schedule 80
Double line 1,189 1,645 641 - 3,476
Principal paste fill
network - Lateral
203 mm
Schedule 80
Double line 4,46 6,8 4,099 - 15,359
Secondary paste
fill network
203 mm
Schedule 40
Double if length
>200 m
4,806 14,321 10,441 1,287 30,855
Tertiary pastefill network (in sills) 203 mm HDPE DR9 Single 29,502 10,402 11,818 - 51,722

16.7.2.2. Network Pressure Loss

To validate the network's ability to reach the most remote stopes, pressure loss calculations were carried out. A loop test has been completed to validate the pressure loss in piping. Requirements for the booster stations and their positions will have been assessed.

In general, for a flow of 135 m3/h, and with a 203 mm steel pipe we assume that the pressure loss will be about 6.3 kPa/m of piping. According to these calculations, no pressure drop issues are envisaged for the Valley zone at this step. This zone will be paste backfilled by gravity, meaning gravity in the vertical line develops enough load to allow the backfill to be displaced afterwards easily on the horizontal line.

To be able to backfill everywhere in the Shaft and Cow and Mosquito zones, three booster stations are needed (one for each zone). The typical booster station recommended for this matter is a Putzmeister stationary pump (Concrete pump 39Z.13 HDP) fully autonomous that can be powered by fuel or electricity. This pump will provide an output up to 138 m3/h and a delivery pressure 85 bar. The booster station for the Shaft Zone will be installed at Level 1160 (Shaft Zone) and will allow the paste, at the exit of the connection ramp between Valley and Shaft, to regain speed and to be able to backfill stopes up to Level 1340. Meanwhile, the booster station for Cow Zone will be installed at Level 1210 (Cow Zone) and will allow backfilling of mined out stopes up to Level 1360. A third booster will be required for the Mosquito Zone to have full coverage of the mineralized zones.

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The network below the booster stations will be gravity backfilled and will not require pumping. Also, in order to flush the backfill lines and keep an operational network, a high-pressure flush system will be needed (booster pump on a mobile equipment), plugged on existing water line distribution to flush the backfill line. A quick flush plug is needed on each level to be effective when changing sites and to prevent clogging the line.

16.7.2.3. Design Criteria

It must be noted that a conservative approach has been considered at this stage of the Project for the paste plant design criteria. Preliminary testing results show some issues and risks to the paste production and distribution. Further exhaustive testing and a mitigation plan must be evaluated to confirm the paste plant design (see Section 25 Risks and Opportunities).

The conceptual design is based on the amenability to produce paste by using similar technologies as those used in comparable projects and on the main results obtained by WSP-Golder. The design criteria assumptions are provided in Table 16-7, below.

Table 16-17: Paste plant design criteria

Description Unit Value
Tailings production tpd 4,144
Paste plant availability % 92
Paste solid content % 75
Paste binder content % 2.75
Paste binder   Cement General Use (GU10)
Paste strength after 7 days kPa 150
Paste production m3/d 2,962

16.7.3.  Cemented Rockfill

Cemented Rockfill ("CRF") will be used for stope backfilling complementary to the paste network.

A small mixing bay will be excavated on each level access will mix 4% of cement slurry. The mixing process will sufficiently coat the waste material with CRF, which will be delivered to the stopes via an LHD.

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The choice for the mobile plant was supported by the forecasted demand for CRF; close to 23% of stopes will be backfilled using CRF/ uncemented rockfill ("URF") combination backfill. The Project is estimated to require approximately 680 tpd of CRF in the early production year when backfilling old workings with paste. This will decrease to an estimated 50 tpd when paste is fully available.

Sufficient curing time will be required for the CRF wedge prior to blasting an adjacent stope. This curing time has been assumed of 7 days and incorporated into the final production schedule. Shotcrete mobile equipment that possesses the flexibility to be converted for batching CRF is shown in Figure 16-34.

 

Figure 16-34: Convertible shotcrete mobile unit

16.8. Mine Schedule

16.8.1.  Mine Sequence Methodology

The objectives of the mine sequencing have been to high-grade early in the LOM, and to expedite full production. The extraction sequence ensures a relatively clustered 'core' of the Valley Zone, Cow Zone, Shaft Zone, Lowhee Zone and Mosquito Zone are mined earliest which allows for full production as soon as possible. Later in the mine life, the sequence aims to balance extraction from the main zones and to maintain a smooth and constant production sequence. The scheduling goal was to maintain approximately a production of 3,500 tpd in Shaft Zone, complemented by 4,500 tpd with the remaining zones (Valley/Cow/Mosquito). Lowhee will be depleted by 2027, which will overlap with the start of the Mosquito Zone.

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Further along in the mine sequence, development headings are prioritized to connect the Shaft / Mosquito Zone to the Valley /Cow Zone infrastructure. The first year of production (2024) will start with mining of Lowhee and Shaft Zones at 2,000 tpd and then, simultaneously extract from Shaft /Valley/Cow/Mosquito/Lowhee Zones to reach the 8,000 tpd production. Mining of Cow Zone starts in 2027.

All zones include multiple veins, which extend to the surface, though the highly uneven topography causes this to be variable between and within zones. Veins do not reliably extend the entire height of a zone. When a vein extends more than four sublevels, they are interrupted with a 5-m pillar for geotechnical stability. The mining sequence within a vein is bottom up, though along veins with pillars it is possible to open multiple mining fronts. Stopes along a vein on a level are universally mined in the retreat direction toward main access and then retreating to access level. Pillar levels are mined with blind uppers on retreat after the stopes above and below have been mined leaving a 5 m skin.

Stope sequencing per level is controlled by access constraints between veins. For pre-production and early in the mine life, veins with a higher grade were assigned a correspondingly higher priority.

Stopes are to be drilled from the top access, with the exception of pillars, which applies to both production drilling and V30 slot raise. Development on the top and bottom access is therefore required to be completed before the initiation of production drilling tasks.

16.8.2.  Scheduling Rates

Daily production targets were specified at 2,000 tpd in the Phase I of production and at 8,000 tpd when flotation circuit is available in Phase II of production. Total economic material tonnage is therefore targeted to satisfy this daily production rate. All scheduling rates are based on experienced mining contractor feedback or typical rates for similar operations. Task rates referred to the productivity rate at which any given task can complete its operational scenario. Table 16-18summarizes the development task rates applied to the schedule.

Table 16-18: Schedule development rates

Development type Task rate
Lateral jumbo development multi heading (5.3mx5.8m) 8.0 m/d
Lateral jumbo development multi heading (3.7m x 4.0m) 10.5 m/d
Lateral roadheader development single heading 6.7 m/d
Vertical development (average) 2.9m/d

 

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All main ramp and level access development are planned to be excavated with a roadheader at a rate of 200 m per month per crew. All multi-heading development is planned to be excavated with jumbos at a rate of 239 m per month per crew for infrastructures and access and at a rate of 314 m per month per crew for haulage and mineralized drifts. This is illustrated in Table 16-19.

A Roadheader is already used for development in the operation of the Bonanza Ledge Mine and Cow Mountain Bulk Sample. Pre-production development and Phase I of production will be completed with a mining contractor, and in-house crews will begin to phase in as production ramps up at the end of the mine construction period. Between three and five standard development crews and two roadheader crews per day will be needed over the course of the LOM.

Table 16-19: Development resource rate scheduling parameters

Type

Rate (m/month)

Multi Face

314 or 239

Roadheader

200

Vertical (average)

86

Production tasks involving mucking, such as backfilling or mucking stopes, are based on the maximum rate a loader can operate in a day. The rate is based on an LHD being assigned the singular task. Production drilling and V30 slot raise are similarly based on the assignment of a single resource to complete a single task. The production rates are shown in Table 16-20.

Table 16-20: Summary of production rate tasks

Production task Rate
Production drilling 194 m/d
Slot raising 10.7 m/d
Backfilling (Paste fill) 4,700 tpd
Mucking 1,004 tpd
Backfill curing time (CRF and paste) 7 days

 

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16.8.3.  Mine Production Schedule

The LOM production plan represents a 12-year mine life. Production ramp-up to steady state of 8,000 tpd is achievable in 2027, the third production year with completion of the flotation circuit. The average head grade for the LOM averages 3.4 g/t Au. All scheduled physicals and summary data presented in this section represents mined and recovered values. Figure 16-35 shows mined and recovered economic material tonnage and grade on an annual basis.

 

Figure 16-35: Annual total recovered tonnes of mineralized material

Table 16-21 presents a summary of mineralized material tonnage and grade by zone by year.

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Table 16-21: Annual production of mineralized material

Year   2023 2024 2025 2026 2027 2028 2029
Lowhee t 53,099 616,301 186,095 348,999 403,789 0.00 0.00
g/t 2.86 3.32 2.65 2.61 2.76 0.00 0.00
Cow t 0.00 0.00 0.00 57,647 684,812 730,964 811,506
g/t 0.00 0.00 0.00 3.14 3.51 2.69 2.91
Valley Upper t 0.00 0.00 0.00 0.00 0.00 0.00 0.00
g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Valley Lower t 0.00 0.00 0.00 431,435 625,551 549,000 360,175
g/t 0.00 0.00 0.00 2.88 3.45 3.45 3.49
Shaft t 0.00 62,098 553,712 629,754 1,143,684 1,289,902 1,294,069
g/t 0.00 3.59 4.14 3.70 3.51 3.39 3.56
Mosquito t 0.00 0.00 0.00 0.00 51,557 362,073 456,250
g/t 0.00 0.00 0.00 0.00 3.40 3.57 3.51
Year   2030 2031 2032 2033 2034 2035 2036
Lowhee t 0.00 0.00 0.00 0.00 0.00 0.00 0.00
g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cow t 839,349 811,528 822,288 819,803 883,710 382,654 0.00
g/t 3.10 3.01 3.10 3.03 3.03 2.76 0.00
Valley Upper t 0.00 0.00 0.00 130,263 541,043 484,111 0.00
g/t 0.00 0.00 0.00 3.16 3.11 2.95 0.00
Valler Lower t 365,000 365,000 366,000 209,167 0.00 0.00 0.00
g/t 3.24 3.88 3.61 3.22 0.00 0.00 0.00
Shaft t 1,292,372 1,307,471 1,294,350 1,504,505 1,424,625 977,577 0.00
g/t 4.19 3.84 3.86 4.13 3.41 3.21 0.00
Mosquito t 451,887 456,250 456,650 267,192 0.00 0.00 0.00
g/t 3.39 3.36 3.04 2.62 0.00 0.00 0.00

The Figure 16-36 below shows annual tonnes of mineralized material extracted by zone by year, while Figure 16-37 shows the pre-production period of the mine colour coded by year.

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Figure 16-36: Annual production of mineralized material

Approximately 24.3 Mt of mineralized material is derived from stoping activity, with the remaining 3.9 Mt derived from development activity (14% of material generated). Figure 16-36 shows the annual potentially economic material tonnage production versus development. Lateral development averages 1,200 m per month mine wide for the LOM. Figure 16-36 shows annual development per zone per annum for the LOM. Development metres per zone per time span changes throughout the LOM. Table 1626 shows the development meter breakdown per zone from pre-production over the life of the mine.

 

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Figure 16-37: Recovered mineralized material by year by extraction method

Figure 16-38: Total annual development by zone

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Table 16-22: Development meter breakdown per zone per year

Year   2023 2024 2025 2026 2027 2028 2029
Lowhee m 4 279 3 076 2 987 3 512 1 228 - -
Cow m 508 2 105 575 4 432 8 048 3 008 4 441
Valley
Upper
m - - 1 457 1 442 63 - -
Valler Lower m - - - 3 768 3 581 6 967 3 540
Shaft m 660 6 977 8 220 8 335 8 440 11 430 11 534
Mosquito m - - - 1 201 5 230 3 562 4 733
Main Infra m - - 663 869 1 098 - -
Year 2030 2031 2032 2033 2034 2035 2036
Lowhee m - - - - - - -
Cow m 4 171 3 124 3 658 8 337 10 337 6 079 -
Valley
Upper
m - - - 1 452 3 238 7 814 -
Valler Lower m - - 760 1 946 - - -
Shaft m 11 161 11 966 10 701 7 110 2 709 1 252 -
Mosquito m 4 703 3 812 3 826 237 - - -
Main Infra m - - - - - - -

16.9. Mine Services

16.9.1.  Ventilation

InnovExplo in collaboration with ODV was responsible for developing the strategy and estimating associated costs for an underground ("U/G") ventilation system. Howden were engaged to assist InnovExplo with the ventilation design work.

The fresh air requirement has been established for each of the mining zones: Cow, Valley, Shaft, Mosquito and Lowhee. The air requirement complies with the CSA prescribed ventilation rate plus a 20% contingency factor (leakage included). The minimum requirement to dilute emissions from the mobile machinery listed in Table 16-23 is 0.06 cubic metres per second per kilowatt ("m3/s/kW") of diesel-powered equipment. In estimating the aggregate rate of fresh airflow for the entire mine, a utilization rate has been applied to account when machines may be mechanically unavailable, or simply not in use. ODV has chosen to use electric vehicles during production. This initiative enables to improve air quality underground while maintaining airflow requirements as per regulations.

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Table 16-23: List of mobile equipment

Multiple iterations to the mine plan and equipment list were considered. The utilization rates are, 80% for production equipment, 50% for most service equipment, and 25% for machinery that operates primarily with electricity. Based on this utilization rate and the production rate per year, we established the total fan capacity and the fresh air demand. The fan capacity, which meets the demand required for all five zones, is 434.5 cubic metres per second ("m3/s") (920.2 thousand cubic feet per minute ["kcfm"]). The fresh air demand for the years with greater production rate is 167.9 m3/s (355.6 kcfm). This air requirement was scaled proportionally to all zones according to their tonnes percentage contribution to the production rate.

Two methods were analyzed to determine the worst-case scenario of each zone: maximum number of active levels per zone assuming a worst-case truck air demand of 15.6 m3/s (33 kcfm) and the percentage of the maximum production rate per year ("tpy") per zone multiplied by the total air demand based on the machinery with the above-mentioned utilization rate.

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The different fan operating points for each zone are shown in Table 16-24.

Table 16-24: Fresh air and pressure requirement per zone

Zone Max Fresh Air Req Max Collar Pressure Req
m3/s (kcfm) Pa (in. w.g.)
Cow 62 (132) 896 (3.6)
Valley 66 (139) 423 (1.7)
Shaft 116 (245) 747 (3)
Mosquito 78 (165) 623 (2.5)
Lowhee 113 (239) 797 (3.2)
Total 435 (920) -

16.9.2.  The Project Ventilation Network and Infrastructure Description

The Project ventilation system consists of five independent air intakes for the five mining areas: Cow, Valley (Upper and Lower Valley), Shaft, Mosquito, and Lowhee. Each zone is supplied with fresh air through a raise breaking through each production level. Bulkheads with drop board regulators and automated regulators will control the fresh air entering the production levels. The exhaust air will be directed towards the portals at Valley, Shaft and Lowhee.

Figure 16-39 shows a longitudinal view of the Project ventilation network.

The ventilation raises have been sized as follows:

 Cow, Upper Valley, and Mosquito Zones, 2.4 m (7.9 feet [ft]) diameter.

 Shaft and Lower Valley Zone, 3.5 m (11.5 ft) diameter.

 Lowhee Zone, 2.8 m (9.2 ft) diameter.

 Cow, Shaft, and Mosquito Zone escape ways, 3 m (9.8 ft) diameter

All the raises are equipped with ladder escape ways (in a duct enclosure).

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Figure 16-39: General view of the Cariboo ventilation network (N-E view)

The network was created to meet the total fresh air requirement. Given the shifting production profile from each zone, the total required airflow in each zone changes over time. Fans will therefore be equipped with variable speed drives to be able to accommodate advanced ventilation controls to optimize its speed and consequently reduce energy costs.

16.9.3.  Dewatering

InnovExplo, in collaboration with the pump distributor Technosub, and ODV, was responsible for establishing a dewatering strategy for the Project.

The design basis, assumptions, and work performed by InnovExplo as it relates to dewatering operations has been summarized as follows. The dewatering solution must incorporate strategies for management of all sources of water:

 Flooded historic workings - It is assumed that all old workings are flooded below 1,202 m elevation ("EL"). It is estimated to contain a total of ~685,000 cubic metres ("m3") of water based on water level observed on the field (Figure 16-40). Technosub, in collaboration with ODV team, did a water level measurement in the historic Mosquito shaft and InnovExplo revised old working excavation volumes;

 Groundwater inflow - all existing and new excavations are assumed to be drain cells into which groundwater can flow;

 Process water - all water required for mine operations; including water requirements for mobile equipment, backfilling, U/G crushing and mineral sorting, dust suppression, etc.

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Figure 16-40: Flooded historic workings and water level

For the permanent dewatering solution, excess water that cannot be re-used underground will be pumped to surface where it will feed into a water treatment facility. Surface infrastructure associated with water management was developed by WSP-Golder and shown in Chapter 18.

Two separate dewatering strategies were considered for old workings dewatering: Surface and Underground.

 Surface dewatering: Initial dewatering from surface via existing shaft(s) or via a borehole. It was also deemed as valuable to keep the system as a backup during operation; however, this method fell out of favour due to poor conditions of the existing shafts.

 Underground dewatering: This was the preferred method for dewatering old workings. It will be carried out one level ahead of capital development using boreholes drilled from underground and a mobile pumping station.

Initial dewatering regiment of flooded workings proposed by TechnoSub operates by means of deep well pumping via boreholes. Underground dewatering occurs through a series of sump pumps in conjunction with larger mobile Pump Stations at specific levels as shown in Figure 16-41. The proposed mud handling solution to filter dirty water prior to recirculation of process water will be achieved by Mudwizard™ equipment.

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Figure 16-41: TechnoSub proposed solution for flooded workings -

Deepwell pump (left) and U/G pump station (right)

16.9.3.1. General Dewatering Design

The levels having pumps are referred as "Pumping Levels". Pumping Levels have different kinds of sumps than other levels.

 Sumps with drain holes (water drains into a lower sump);

 Sump with submersible 15 horsepower ("hp") pumps (water could be pumped on another sump or another level through the ramp (on a shorter distance);

 Portable sumps with tank on a skid with stationary pumps from 60-350 hp (this kind of sump collects the water from higher and lower levels from secondary sumps and sends the water to higher levels.

16.9.3.2. Water Clarification System

Water from the pumping stations is delivered to a set of settling cones connected to the dewatering reticulation through the MudWizard™ system. This system is designed to reduce the ratio of mine sludge in the water by a factor of 10 to 1 allowing for water to be re-used in mine processes. From there, the discharge reports to the settling cones, which are equipped with peristaltic pumps feeding the slurry discharge.

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Figure 16-42: Clarification System Schematic (Partial)

16.9.4.  Electrical Distribution

InnovExplo was responsible for developing the strategy for the U/G electrical distribution system. Meglab Electronique were engaged to assist InnovExplo with the electrical design work.

U/G power distribution will be distributed at 13.8 kV throughout the mine. The U/G power distribution topology will be implemented as a redundant system. A 13.8 kV feeder from the main substation will feed the electrical loads for the Valley and Cow zone, and a separate 13.8 kV feeder will feed the electrical loads of the Mosquito and Shaft zone. An interconnecting 13.8 kV tie feeder will interconnect the two zones, and allow redundancy and load balancing in the mine.

For the various equipment of the mine, the voltages required are 600 V and 1,000V. For low voltage, lighting and services, 120V/208V was used. The Project scope for the PEA included high- level single line drawings, load list, bill of material listing the major equipment and major cabling with their associated costs.

The design basis for the underground mine electrical equipment and systems is as follows:

 U/G main distribution voltage: 13.8 kV equipment;

 U/G equipment (fixed equipment, pumps, fans, mobile equipment and charging station) utilization voltage: 600 V and 1 000 V;

 U/G services voltage: 120/208 V;

 Junction boxes, starters, variable frequency drives, grounding, cables and auxiliaries for the above;

 Load List, Bill of Materials ("BOM"), costs, and cable run distances for the above, conformance to all applicable codes, standards and regulations.

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The equipment electrical loads are assembled into the electrical load list assuming a reasonable amount of mining activity in all zones and most levels. Actual mining activity will be better defined as the mine production plan is developed and this will affect the load list moving forward to the next design stage. The present electrical load list reflects a high, but not excessive activity level and is a suitable model for moving forward with the design. Switchgears on surface and on levels were estimated. The PEA design includes 13.8 kV-600/1000V, 1.5 MVA or 2 MVA mine unit substations allocated for each level. As the mine development and production plan is further developed, the quantity and arrangement the unit substations can be better defined.

16.9.5.  Underground Mine Equipment

Equipment selection was carried out based on the following criteria:

 Suitability for the planned size of the excavations;

 Ability to automate;

 Power output (kW) and associated ventilation requirements;

 Productivity;

 Average Mechanical Availability (%);

 Capital and operating costs.

InnovExplo, in collaboration with an independent, external consultant, Robert Hamilton, worked on the equipment selection. Robert Hamilton has a background in maintenance and equipment supply and created a Mobile Equipment Selection Matrix. An assessment matrix was used to compare various equipment companies' products with one another. It was expected that two variants would be required for selecting equipment types, i.e., to service both small and large excavation profiles.

A list detailing the equipment choices can be found in Table 16-23 Section 16.9.1 Ventilation. Equipment quantities have been estimated to achieve the steady state mining rate of 8,000 tpd with allowances for spares of critical equipment types.

Five, two-boom jumbos will be used to drill all rounds less than 5.3 m wide. Decline development, for main haulage and zone access, as well as capital level development will be handled by two roadheaders. Samples of different lithologies were sent to Sandvik laboratory in Austria to test and validate rock cutting performance with the road header. On that base, a conservative performance of 200 m per month was assumed taking account mucking, hauling and ground support cycle.

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Mineralized material and waste will be hauled using 50 t electrical trucks. A fleet totalling 17 trucks will be required to satisfy material movement requirements. Five trucks will be used for development, four for production. Two fully automated trucks for mineralized material and waste transfer between Shaft Zone and Valley Zone, and four fully automated trucks for material sorter waste handling to surface. Operations will employ two types of LHD's. To accommodate for the smaller drift profile size 10 t LHD's will be used to move mineralized material or waste rock from the stope draw point or development heading into a re-muck stockpile. 18 t LHDs will then transport and load material from the re-muck to 50 t trucks at the truck turnaround area. All trucks, including eleven 10 t LHDs and three 18 t LHD's, from the fleet, will be equipped with automation hardware.

Stopes will be drilled using a longhole drill capable of drilling 89 mm blastholes up to 30 m. Contractor services will be employed to drill V30 slot raises and adjacent square holes.

All equipment productivities will be applied to nine hours of effective hours per shift (18 hours per day), except for load haul dump ("LHD") and trucks in automation mode where 20 hours per day will be accounted.

16.9.6.  Communication Network Automation

As the Project is highly automated, the communication network is very important. Two master networks will be deployed from the surface by Island Portal and Valley Portal to every underground level. The first one is the LTE network which supports voice and data communication and will be deployed everywhere in the mine, where the second is the "FEMCO" security system deployed at every refuge and strategic site.

Fiber-Optic network who will be brought in every electrical substation, pumping stations, crushing stations and conveying site. Each level will have LTE distribution: LTE radio head connected to high quality Radiating cable (supporting till 2 GHz radio frequency). This one can support Channel aggregation ("CA") LTE exceeding 40 Mbps upstream bitrate for data and voice communication. Many options can be deployed like cameras, tracking, blasting with "SMART BLAST", Telemetry of heavy equipment and production, autonomous vehicles, teleoperated equipment, automation and others.

That will give a full control of pump stations, ventilation on demand, electrical station remote control operation (SCOOP, Drill, haul trucks, etc.) and monitoring.

In addition, the security asset will be higher when equipped with a tagging system that can give the position of every equipment and worker or visitor underground.

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The main data network combined with the PLC and LTE system bring all the information and control signals in both ways from the surface to everywhere underground. This will be made possible to optimize the operation and cost.

The envisioned automation strategy for LHD units at the Cariboo mine encompasses teleoperated mucking from the stopes and level loading bay that includes a re-muck as transitional mineralized material storage. The concept of the loading bay separates the teleoperated equipment from the man operated equipment, thus respecting regulations and allowing teleoperation for extraction and also the loading of trucks at the load-out bays. This set-up can be seen in Section 16.6.3 Figure 16-16.

Truck hauling from the production levels will work autonomously during the 2-hour shift change when no personnel is in the mine. Automated trucks, controlled from surface by the LHD operators will travel to the load-out area where they will be remotely loaded with mineralized material and sent back to the dump point. By the end of 2026, all mucking operation on the production levels will be fully automated, with one operator for two scooptrams.

The basis for automation places strict demands on a robust communications network.

16.10. Mine Personnel

The Mine Site Complex will operate on two 12-hour shifts per day for automated operations and two10-hr shift per day for other underground activities. Operations will be carried through 7 days a week, 2 shifts per day. It was assumed that the mine will operate 365 days per year.

The mine will be operated using three different rosters. A combination of a 4/3 and 5/2 (days working/days off) will be used for salaried personnel. Hourly employees are scheduled on 14 days on, 14 days off roster on a fly-in fly-out ("FIFO") schedule. The workforce will consist of maintenance crews, operating personnel, and contractor personnel.

The salaried staff will consist of 171 people per rotation, including 15 office personnel, 110 operators, and 46 maintenance personnel. At the peak point in the life, this results in 32 office personnel, 216 operators and 92 maintenance. This results in a maintenance: operator ratio of 43%. The contractor workforce will consist of 24 people per rotation, and a total of 48 (Table 16-25).

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Table 16-25: Contractor workforce

Contractor Workforce Schedule Per rotation Req. rotation Number
Mine
V30 14/14 D&N 2 4 8
Mobile backfill unit and shotcrete 14/14 D&N 2 2 4
Diamond Drilling 14/14 D&N 3 4 12

16.11. Recommendations

The opportunity exists to examine alternative mining methods that could be considered in certain areas of the mine. In veins of sufficient width and continuity, application of transverse longhole stoping could be considered. Investigation is also on-going of possibly mining high value areas with ground conditions not suitable for longhole mining using a cut & fill method.

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17. Recovery Methods

17.1. Introduction

The Cariboo Gold Project ("the Project") will ramp up tonnage in two phases: Phase I, starting with a 2,000 tonnes per day ("tpd") mineral sorting and leaching flowsheet, followed by Phase II, an 8,000 tpd mineral sorting, flotation, and leaching flowsheet.

In CGP Phase I, the mineralized material will be processed in two stages at two sites. The Bonanza Ledge Site located at the current Bonanza Ledge Mine, and the Quesnel River Mill ("QR Mill") located 116 kilometres ("km") from the Bonanza Ledge Site.

For the initial throughput of 2,000 tpd, a pre-concentrator, including mobile crushing and mineral sorting, will be built at the Bonanza Ledge Site. The use of the Bonanza Ledge Site will reduce the overall operation and transportation costs. The crushing operation will be a mobile unit, operated by a sub-contractor, and the crushed product will be processed in a mineral sorting circuit. The concentrate from the sorted concentrate will be trucked to the QR Mill for further comminution, leaching, and refining.

The QR Mill is an existing plant with a daily capacity to treat 850 tonnes ("t") of mineralized material. The QR Mill will require modifications to increase capacity up to 1,040 tpd and to process the higher concentrate feed grades from the Project.

In CGP Phase II, the mineralized material will be processed in two stages at two sites. In CGP Phase II, the mineralized material will be processed in two stages at two sites. The Mine Site Complex, located in the District of Wells, British Columbia ("Wells"), and the QR Mill located 111 km west of the Mine Site Complex.

For the expanded throughput of 8,000 tpd, crushing will occur underground and will then be conveyed to the surface where mineral sorting, grinding, and flotation will be conducted in a Services Building at the Mine Site Complex. It is expected that it will take six months from start-up to ramp up to the full throughput. The Mine Site Complex, Services Building, and underground facility will serve as a pre-concentration step to reduce the overall operation and transportation costs. The primary crushing operation will be located underground, and the crushed product will be conveyed to the surface to feed a sizing screen. The sizing screen undersize will be discharged into a fine storage bin and the oversize will be sent to the mineral sorting circuit. The sorted concentrate will be combined with the fine storage bin material to feed a grinding and flotation circuit. The flotation concentrate will be trucked to the QR Mill for further comminution, leaching, and refining.

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17.2. Concentrator Process Design Criteria

The process design criteria are presented in Table 17-1.

Table 17-1: Design criteria

Process design criteria Unit Design value
Phase I Phase II
Bonanza Ledge Site      
Average feed grade g Au/t 3.58 -
ROM tonnage tpd 2,000 -
Fine mineralized material abrasion index g 0.26 -
Mineral sorter concentrate abrasion index g 0.34 -
Crushing fines content % 30 -
Mineral sorter concentrate mass pull % 40 -
Crushing and mineral sorting circuit gold recovery % 97.0 -
Mine Site Complex      
Average feed grade g Au/t - 3.37
ROM tonnage tpd - 8,000
Fine mineralized material abrasion index g - 0.26
Mineral sorter concentrate abrasion index g - 0.34
Fine mineralized material bond ball mill work index kWh/t - 12.1
Mineral sorter concentrate bond ball mill work index kWh/t - 15.9
Crushing fines content % - 30
Mineral sorter concentrate mass pull % - 50
Crushing and mineral sorting circuit gold recovery % - 96.4
Mill throughput (design) tpd - 5,200
Mill availability % - 92
Grind size to flotation µm - 100
Flotation concentrate mass pull % - 20
Flotation Au recovery % - 99.2
Mine Site Complex Au recovery % - 95.6

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Process design criteria Unit Design value
Phase I Phase II
QR Mill      
Mill throughput tpd 1,040 1,020
Mill availability % 92 92
Grind size µm 45 45
Leach retention time hrs 40 40
Leach and CIP Au recovery % 95.4 96.5
Stripping Au recovery % 99 99
Carbon stripping, regeneration capacity tonnes C 6 6
Overall Au recovery % 92.3 92.2

17.3. Pre-concentrator at the Bonanza Ledge Site

The surface infrastructure at the Bonanza Ledge Site will be composed of three main areas: crushing and screening, mineral sorting, and stockpiling. The Bonanza Ledge Site concentrator simplified flowsheet is presented in Figure 17-1.

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Figure 17-1: Bonanza Ledge Site simplified process flow diagram

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17.3.1. Crushing and Screening

The crushing and screening circuit will be a mobile unit supplied by a sub-contractor. The unit will consist of a jaw crusher, two cone crushers, a vibrating grizzly, two screens, and the associated conveyors.

The run of mine ("ROM") material will be dumped into a hopper that will feed onto the vibrating grizzly. The grizzly oversize will be fed to a jaw crusher and the product will be fed into the first sizing screen. The secondary cone crusher will operate in a closed circuit. The secondary cone crusher will discharge into the first sizing screen, with the screen oversize feeding the crusher, and the screen undersize feeding the second sizing screen. The targeted particle size is 40 millimetres ("mm"). The second sizing screen has two decks: the top deck will have an opening size of 45 mm, and the bottom deck will have an opening size of 15 mm. The second sizing screen oversize will feed the mineral sorters, and the undersize will be combined with the mineral sorter concentrate and fed to the tertiary cone crusher. The tertiary cone crusher, targeted particle size of 10 mm. The tertiary crusher product will be stockpiled and hauled by truck to QR Mill.

17.3.2. Mineral Sorting Circuit

One existing mineral sorter from pilot unit and one new mineral sorter will be used. The mineral sorter technology used will be a twin sensor x-ray and laser technology. The mineral sorter concentrate will be sent to the tertiary crusher.

17.4. Quesnel River Mill

The QR Mill is located near the municipality of Quesnel. The plant started operation in the mid- 1990s, with an initial flowsheet using grinding, gravity concentration, cyanide leaching, and carbon-in-pulp adsorption. The QR Mill will be upgraded to process the pre-concentrated material from both the Bonanza Ledge Site and Mine Site Complex concentrators. The QR Mill concentrator simplified flowsheet is presented in Figure 17-2.

The Carbon-in-Pulp Circuit and the tailings dewatering circuit will install a new building located at the side of the actual leach and detox circuit to allow gravity flow between the different circuit.

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Figure 17-2: The QR Mill simplified process flow diagram

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17.4.1. Concentrate Unloading, Storage, and Handling

The pre-concentrated material will be dumped by truck into a new storage shed with capacity to store 5 days worth of feed to the QR Mill. The material in the storage shed will be used to feed the QR Mill when the road between Wells and QR Mill is closed. A loader will be used to load the concentrate from the storage shed into the feed hopper.

The feed system includes a hopper and a feeder. The existing hopper will discharge directly onto the existing belt conveyor that feeds the primary ball mill.

17.4.2. Grinding Circuit

The grinding circuit is composed of two existing identical 3.96 metres ("m") long by 3.05 m diameter ball mills with single-pinion 450 kilowatt ("kW") motors, running in series and a new ball mill 350 kW in parallel of the secondary ball mill. The primary ball mill operates in open circuit is fed from the concentrate feed hopper and discharges into the cyclone feed pump box. The secondary circuit is composed of two ball mills in parallel operates in closed circuit with three new cyclones of 375 mm diameter. Two cyclones operating and one cyclone standby.

The average cyclone overflow product is designed to be a P80 of 45 microns ("µm") at a circulating load of 200% of fresh feed. The cyclone overflow is piped to flows by gravity to the pre- leaching thickener. The cyclone underflow will be returned to the secondary ball mills.

17.4.3. Thickening, Leaching, and Carbon-in-Pulp Circuits

The cyclone overflow flows to a new 10 m diameter high-rate thickener. Flocculant is added to the thickener feed box.

The thickener underflow will be pumped to the leaching circuit. The leaching circuit consisting of four existing 9.1 m diameter tanks where cyanide and lime are added. Slurry will flow from one tank to the other by gravity and each tank can be by-passed for maintenance. Each tank is equipped with an agitator mechanism and compressed air lines. The leach tanks will be refurbished at the rate of one per year for the first four years of the Project. The thickener overflow will be used as process water.

The discharge of the leaching circuit will feed by gravity into a new carousel-type carbon-in-pulp ("CIP") circuit. The circuit is composed of ten tanks. The carousel-type circuit allows the carbon to be removed from one single tank once per shift, for a total of two carbon removals per day with a total of six tonnes of carbon. The advantage of the carousel-type CIP is that it will reduce carbon attrition and allow for lower gold losses.

The CIP tails flow over a vibrating safety screen to recover any carbon particles before proceeding to detoxification.

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17.4.4. Elution and Carbon Regeneration Circuits

The entire elution and carbon regeneration circuit will be replaced to increase the gold treatment capacity, except for the regeneration kiln and heating skid, which were replaced in early 2020.

This upgrade includes the following major equipment: the acid wash column, elution column, fine carbon tank, barren solution tank, acid wash tank, acid neutralization tank, quench tank, fine carbon filter press, attrition tank, and electrowinning cells.

The loaded carbon from the offline CIP tank will be pumped onto a screen, which returns the underflow slurry back to the CIP feed tank. The overflow carbon falls into a loaded carbon holding tank that will feed the acid wash column, which uses nitric acid to eliminate carbonates. The washed carbon will be transferred to one of two operating elution columns.

The elution column will operate in batch cycles using the ZADRA process which uses a high- temperature, high-pressure solution of sodium cyanide and caustic soda to desorb gold from the carbon. The elution solution will be prepared in the elution solution tank. The elution solution will be pumped through a lab heating heat exchanger and feed the elution column. Under the right temperature and pressure conditions in the elution column, gold desorbs from the loaded carbon and dissolves in the elution solution. The pregnant solution will flow out from the top of the elution column and will be cooled through the trim heat exchanger before being pumped to the electrowinning cells.

Carbon from the elution column is pumped to a dewatering screen where the oversize feeds the regeneration kiln and the undersize flows to the carbon fines tank. The regenerating kiln burns off organic contaminants absorbed onto the carbon surface.

The regenerated carbon from the kiln is cooled in a quench tank and returned to the carbon sizing screen that feeds the offline CIP tank. Fresh carbon will be fed to an agitated carbon attrition tank and pumped to carbon sizing screen as required. Carbon fines are collected in the fine carbon tank. Carbon fines are recovered at the bottom of the tank, filtered using a filter press, and bagged to be sold.

17.4.5. Refinery Circuit

The cooled pregnant solution from elution is pumped to the gold refinery into four new electrolysis cells running in parallel.

The electrowinning cells will operate at 9 volts ("V"). A fan will be used to evacuate fumes from both electrowinning cells.

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The gold sludge from the electrowinning cells will be removed from the cathodes in a wash booth and will be pumped to the new sludge filter press. The filter cake will be dried and melted with flux in a propane furnace to produce doré.

17.4.6. Cyanide Destruction Circuit

The CIP tails from the safety screen underflow pump box will be pumped to two new cyanide destruction tanks where sodium metabisulfite and air are used to destroy the cyanide in solution. The new tanks will be installed in the same location of the existing tank.

SO2/Air cyanide destruction method will be used to reduce cyanide concentrations to environmentally acceptable levels. Sodium metabisulphite ("SMBS") will be used as the SO2 source oxygen as oxidation agent, copper sulfate as a catalyst and lime to control pH. Once the cyanide levels are reduced, the tailings slurry will be pumped in the dry stacking area.

17.4.7. Tailings and Dry Stacking Circuit

The new dry stacking circuit will be composed of one filter press, conveyors, and a clarifier. The Filter is equipped with two air compressors and an air receiver.

The tailings from the cyanide destruction circuit will be pumped to an agitated filter feed tank. Filtration will increase the slurry weight percent solid from 48% to 89%.

Filter cake will be discharged onto a belt conveyor located under the filter. From this conveyor, the filtered cake is discharged into a tailings storage building where it will be loaded by a loader into trucks to be hauled to the filtered stack tailings storage facility.

Reclaim water will be used to wash the press filter cloths. The cloth wash and the core wash water will be provided via the reclaim water tank. All water used for core and cloth wash is returned to the filtrate tank and sent to the clarifier.

The existing pre-leach thickened will be refurbished and repurposed to serve as a clarifier for the tailings filtrate water. The clarifier underflow will be pumped to the filter feed tank and the overflow will report to the process water tank.

17.4.8. Water and Air Services

The process water tank will collect water from the pre-leach thickener and clarifier overflow and supplemented with reclaim water when required. Process water will be used for the grinding circuit, flocculant and thickener dilution, screen wash water, carbon quench water, and for electrowinning tails.

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The reclaim water tank will receive water from the water treatment plant, the south seepage pond, and the heat exchangers. Reclaim water will be used in the tailings filter as manifold and cloth wash water, gland seal water, reagent mixing, acid dilution, and for spray bars.

One new air dryer and instrument air receiver will be added to the existing process air system.

17.4.9. Reagent System

Anti-scalant will be received in totes and will be pumped by three pumps to the elution solution tank and the process and reclaim water tanks. The totes will be located near the delivery points to reduce the piping requirements.

The flocculant, copper sulphate, and SMBS systems will include a preparation unit consisting of an agitated mixing tank, a transfer pump, a distribution tank, and two operating metering pumps; the flocculant system will include one standby pump. The flocculant system will be used for both the pre-leach thickener and the clarifier.

Nitric acid will be delivered in drums and transferred into a storage tank. Any fumes will be exhausted with a fan to the atmosphere and a dedicated spillage pump will pump any spills back into the storage tank. A single pump will pump the acid to the acid wash tank.

The existing lime and cyanide circuits will be used.

17.5. Concentrator at the Mine Site Complex

The surface infrastructure at the Mine Site Complex is composed of four main areas: mineral sorting, grinding-flotation, concentrate dewatering, and the paste plant. The Mine Site Complex concentrator simplified flowsheet is presented in Figure 17-3.

The grinding-flotation concentrator is designed for a throughput up to 230 tonnes per hour ("tph"). The concentrate from the grinding-flotation circuits of Mine Site Complex will be discharged into trucks and transported to the QR Mill.

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Figure 17-3: Mine Site Complex simplified flowsheet

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17.5.1. Screening Circuit

The screening circuit consists of a vibrating screen that will be installed before the mineral sorting circuit. The vibrating screen will be fed with the crushed product from the underground crushers. The screen undersized portion (<15 mm) will fall on a belt conveyor to a fines storage bin. The screen oversized portion will be sent to the mineral sorter feed bin.

17.5.2. Mineral Sorting Circuit

The mineral sorting circuit is designed to sort up to 417 tph of coarse crushed mineralized material. The mineral sorter technology used will be a twin sensor x-ray and laser technology. The mineral sorter feed bin will discharge into six chutes, each chute will discharge onto its own belt feeder into a head chute and into one of six mineral sorters. Two of the six mineral sorters will be repurposed from the Bonanza Ledge Site and will be installed during the ramp up period. The mineral sorter concentrate mass pull is designed for 40%. The mineral sorter concentrate will be sent to the fine storage bin and feed the grinding circuit.

17.5.3. Grinding Circuit

The grinding circuit will be composed of a 3.12 m long by 6.70 m diameter semi-autogenous grinding ("SAG") mill with a 2,500 kW motor and an 8.23 m long by 4.57 m diameter ball mill with a 2,500 kW single motor. The ball mill will be operated in closed circuit with three cyclones of 720 mm diameter (two cyclones operating and one cyclone standby).

The grinding circuit will be fed by the fines from the screening circuit and mineral sorting concentrate. The production rate and availability are designed to be 230 tph and 92%.

The average cyclone overflow product is designed to be a P80 of 100 µm at a circulating load of 250% of fresh feed. The cyclone overflow gravity feed a conditioning tank prior to the flotation circuit. The cyclone underflow will be returned to the ball mill.

17.5.4. Flotation Circuit

Flotation reagents will be added to a conditioning tank. The conditioning tank retention time is designed at 4 minutes. From the conditioning tank, the slurry overflow by gravity into eight 30 cubic metre ("m3") flotation tank cells with a total of 28 minutes retention time. The flotation circuit is designed to recover 20% of the feed mass.

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The reagents used in the pyrite flotation process are MIBC (methyl isobutyl carbinol) as frother and PAX (potassium amyl xanthate) as collector. The flotation is performed at natural pH, which is between 7.5 to 8.5, no lime is added to the flotation.

The concentrate will be dewatered prior to trucking to QR Mill. The flotation tailings will be pumped to the paste plant thickener and used as paste backfill for the mine.

17.5.5. Flotation Concentrate Dewatering

The flotation concentrate will be pumped to a 15 m diameter high-rate thickener where the slurry will be thickened to 62% solids. A flocculant preparation system will supply flocculant to both the concentrate and paste plant thickeners.

The thickener supernatant water will overflow to the process water tank to be recycled into the process.

The thickened concentrate will be pumped to a filter feed tank. One vertical filter press operating in parallel will be used to dewater the concentrate to approximately 92% solids. The filter cake will be conveyed to the flotation concentrate stockpile. The concentrate will be loaded with a loader into trucks and sent to QR Mill. The filtrate will flow into the filtrate tank and will be pumped back to the thickener feed box.

17.5.6. Flotation Tailings Dewatering

The flotation tailings will be pumped to a 20 m diameter high-rate thickener where the slurry will be thickened to 62% solids. The flocculant will be supplied from the same system as for the concentrate dewatering.

The thickener supernatant water will overflow to the process water tank to be recycled into the process.

The thickened tailings will be pumped to a filter feed tank. Two operating and one standby by disc filters will be used to dewater the tailings to approximately 82% solids. The filtered cake will be conveyed directly into the paste mixer.

17.5.7. Paste Production

The filtered flotation tailings will be mixed with cement slurry to form a paste that will be pumped underground by one operating one standby piston pumps.

The dry cement will be stored in a silo outside and will be conveyed into a cement mixing tank where process water is added to create the cement slurry.

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The paste mixer has a minimum residence time of 3 minutes and will discharge by overflow into the paste hoppers above the paste pumps. The paste hoppers have a residence time of 1 hour. The paste piston pumps have an operating pressure of 90 bar. The paste pumps will pump to one operating and two standby boreholes.

17.5.8. Water and Air Services

The process water tank will collect water from the paste plant and concentrate thickener overflow and supplemented with fresh water when required. Process water will be used for the grinding circuit (make-up water, trommel sprays), flotation launder water, flocculant dilution, filter press core and wash water, and paste plant (cement mix and make-up water). Any excess process water will be sent to the water treatment plant.

The freshwater tank will receive water from the underground mine. Fresh water will be used in the concentrate filters as compression water, gland seal water, reagent mixing, and for washing in the paste mixer.

One duty and one standby high-pressure air compressor will be installed to supply concentrator air. Instrumentation air will be supplied from the same air compressors connected to a common air dryer. Compressed air for each mineral sorter will be supplied by a dedicated air compressor, dryer, and receiver set. Compressed air for each concentrate filter press will be supplied by a dedicated air compressor and receiver set. One duty and one standby air compressor will be installed to supply the tailings disc filter air receivers, and one air receiver will be installed for each disc filter. Flotation air will be supplied by one duty and one standby air blower.

17.5.9. Reagent System

Flocculant and PAX systems will include a preparation unit consisting of an agitated mixing tank, a transfer pump, a distribution tank, and three metering pumps (two operating and one standby). The MIBC will be received in totes and will be distributed to the flotation circuit by three metering pumps (two operating and one standby).

17.6. Concentrator Personnel

A list of the planned concentrator personnel for the two concentrators is provided in Table 17-2.

The QR Mill will share staff with the Mine Site Complex concentrator. The superintendent, general foreman, metallurgist, and project engineers will be located at the QR Mill and will supervise the Mine Site Complex team in their respective fields of expertise.

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Table 17-2: Concentrator personnel

Description Total Total Bonanza
Ledge Site
Wells Mill QR mill
(Phase I) (Phase II)
Mill Superintendent 1 2 - 1 1
Maintenance Superintendent - 1 - 1 -
General Foreman 2 1 1 - 1
Administrative Support 1 2 - 1 1
Metallurgist 2 2 - - 2
Metallurgical technician 2 4 - 2 2
Supervisor operation and maintenance 3 5 - 2 3
Mechanical planner 1 2 - 1 1
Automation and control technician 1 3 - 2 1
Subtotal staff 13 22 1 10 12
Mill shift leader (solutions) 4 4 - - 4
Refiner 2 2 - - 2
Mineral sorter operator 4 4 4 4 -
Grinding operator 4 8 - 4 4
Flotation operator - 4 - 4 -
Dewatering and paste plant operator - 4 - 4 -
Dewatering and tailings pond operator 4 4 - - 4
Control Room operator 4 8 - 4 4
Mill helper 12 14 4 6 8
Loading station operator 4 6 - 2 4
Subtotal operations 38 58 8 28 30
Mechanic 14 32 2 20 12
Electrician 5 8 1 4 4
Subtotal maintenance 19 40 3 24 16
Total 70 120 12 62 58

 

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17.7. Power, Reagents and Consumables

17.7.1. Fuel

The mobile crushing and screening circuit at Bonanza site will be operated on self-sufficient power and will not be connected to the grind power. Fuel consumption has been estimated 3,050 liter per day. Mineral sorter area will be connected to electrical distribution network.

17.7.2. Power

Power consumption for the concentrators has been estimated with new and existing equipment power.

Power consumption for Bonanza mineral sorter area and at the Wells Site pre-concentrator has been estimated using the load list and the expected utilization factors.

Historical power consumption at QR Mill has been used to estimate power consumption of existing equipment that will remain in the flowsheet. The power consumption of new equipment has been estimated using the load list, using expected utilization factors. Where new equipment is replacing existing equipment, the power consumption is estimated using the load list and the expected utilization factors.

The average power consumption has been estimated annual electrical consumption 240 kilowatt hours ("KWh") for the Bonanza Ledge Site, 24.5 gigawatt hours ("GWh") for QR Mill, and 106 GWh for the Mine Site Complex.

17.7.3. Reagents, Cement, and Consumables

Estimated consumption rates of reagents and consumables are listed in Table 17-3. It should be noted that the consumption has been estimated based on laboratory testwork and QR mill historical data.

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Table 17-3: Consumption of reagents and consumables

Reagent or Consumable Unit Phase I Phase II
Grinding media (4.5 in) kg/t - 0.56
Grinding media (2 in) kg/t - 0.81
Grinding media (1 in) kg/t 3.10 1.70
Sodium cyanide (100% NaCN) kg/t 0.91 1.23
Lime (CaO) kg/t 0.71 1.48
Flocculant kg/t 0.03 0.05
Carbon kg/t 0.04 0.04
Caustic soda (NaOH 50%) kg/t 0.97 0.97
Sodium metabisulphite (SMBS) kg/t 1.30 1.30
(Na2S2O5)
     
Nitric acid (HNO3) kg/t 0.58 0.58
Copper sulphate (CuSO4.5H2O) kg/t 0.03 0.03
MIBC kg/t - 0.04
PAX kg/t - 0.10
Oxygen kg/t 1.20 1.20
Anti-scalant kg/t 0.02 0.02
Cement (paste backfill) kg/t tailings - 29.8

 

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18. Project Infrastructure

Osisko Development Corp.'s ("ODV") Cariboo Gold Project ("the Project") surface infrastructure and services are designed to support the operations at the Mine Site Complex and at the Quesnel River Mill ("QR Mill"). The Project also includes off-site infrastructure, such as a new 66 kV / 138 kV transmission line between the Barlow substation, near Quesnel, British Columbia ("BC"), and the Mine Site Complex, as well as a 66 kV / 138 kV step-up substation just outside of Quesnel, and within the proposed right of way. Warehousing for major components and consumables will be provided by third parties in Quesnel and / or Prince George.

The Project will be comprised of three different sites: the Mine Site Complex, near the District of Wells, BC ("Wells"), the Bonanza Ledge Site, and the QR Mill Figure 18-1. The Mine Site Complex is located 111 kilometres ("km") east of QR Mill and a distance of 3.5 km separates the Mine Site Complex from the Bonanza Ledge Site.

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Figure 18-1: Regional setting

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18.1 Overview Description

The Project envisions the construction and upgrades of the following key infrastructure items:

 Mine Site Complex (Wells):

- Camp Access Road and Parking Areas;

- Tunnel portals and arch structures for the underground mine;

- Main Ventilation and Mine Heating Infrastructure;

- A Services Building area including:

o Vertical Conveyor moving material from the underground Crusher to surface;

o Mineral Sorter;

o Concentrator capable of producing a gold flotation concentrate;

o Site offices;

o Maintenance Shop and Warehouse Facilities;

o Mine Dry and Mine Rescue Services.

- Fuel Storage (diesel and propane) and Handling Facilities;

- Worker Accommodation;

- Electrical Substation;

- Security Facilities and Main Entrance Gate;

- Firewater Pumping Station and Firewater Distribution Piping System;

- Treated Discharge Line from the Mine Site Water Treatment System ("WTS"), connecting to a diffuser in Jack of Clubs Lake;

- New bridge over the Willow River ("Willow River Bridge");

- Fiber Optic Network interconnecting the main areas of the Mine Site Complex;

- New Potable Water Well and associated Potable Water Pipeline;

- Sewage treatment system;

- Island Mountain Portal Access Road;

- Valley Portal and Island Mountain Portal;

- Surface Water Diversion Channels, Collection Channels, Ponds, Pumping Stations, and Pipelines;

- Bulk Fill Area ("BFA");

- Site electrical distribution and lighting;

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 Bonanza Ledge Site:

- Waste rock storage facility ("WRSF");

- Water management infrastructure - surface water diversion channels, collection channels, pumping stations, and pipelines;

- Water treatment systems (expected to be retained from current operations), with appropriate upgrades, and revised water management plan.

 QR Mill:

- Upgrade of the existing QR Mill to process the high-grade flotation concentrate from the concentrator at the Mine Site Complex;

- Filtered Stack Tailings Storage Facility ("FSTSF");

- Water management - surface water diversion channels and collection channels;

- Water treatment systems (expected to be retained from current operations), with appropriate upgrades.18

18.2 Mine Site Complex

The Mine Site Complex is located in Wells, BC, approximately 80 km east of Quesnel, and approximately 350 metres ("m") west of the nearest permanent residents in Wells. A new camp is planned to be constructed for employees and contractors. Existing infrastructure that ODV owns in Wells will be used to accommodate the workforce required during construction and during operations. Access to the Mine Site Complex will be from Quesnel on Highway 26.

The following Table 18-1 summarizes the main Mine Site Complex surface components and their associated sub-components.

Table 18-1: Mine Site Complex Project components

Components

Sub-Components

Surface

Fuel storage and handling facilities
Worker accommodation
Sewage and potable water treatment
Mine dry and mine rescue services
Maintenance shop and warehouse
Offices & Dry

Main ventilation and mine heating infrastructure
Main access road
Security facilities and main entrance gate
Fire water pumping station and fire water distribution piping system

 

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Components

Sub-Components

Mineral Processing

Surface concentrator, including mineral sorting, grinding and flotation process equipment, concentrate dewatering equipment, paste backfill plant, binder silo, and mineralized material

Metallurgical Lab to support process operations

Mine Waste Management Facilities

Overburden and soil stockpile

Bulk Fill Area;

Water Management
Facilities:

Water storage and supply (potable and non-potable)
Non-contact water diversions
Contact water management structures

Pumps, pipelines, and collection systems for the water management systems
Water treatment facilities
Treated Water discharge

Power supply, IT & Telecom

Connection of the regional power grid through a 66 kV / 138 kV Transmission Line A 66kV / 138 kV substation at kilometer seven of the transmission line A 138 kV / 13.8 kV substation at the Mine Site Complex

Temporary Power Supply via diesel generator
Emergency generators to maintain minimal site and underground services during a power outage
A high-speed internet fibre optic connection
An Integrated Local Operation Centre

18.2.1 Geotechnical Studies

18.2.1.1 Surficial Geology

The surficial geology of the Mine Site Complex, as well as most of the Canadian Cordillera, is controlled by the processes resulting from the piedmont glaciers.

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18.2.1.2 Mine Site Complex Geotechnical Investigation

At the Mine Site Complex, a geotechnical site investigation was conducted, which included desktop study, intrusive drilling, and test pitting. Interpretation of results focused on the geochemical characterization of overburden, historical waste (waste rock and tailings) and in situ bedrock as well as to establish the depth and profiles of all of these material units to determine the suitability of such materials for foundation assessment and stability of both excavated and fill slopes. Geotechnical drilling and test pitting generally confirmed in situ surficial sediments are till. Historic waste rock is piled near the planned tunnel portal elevation. Beyond the toe of the pile, the low wetland area consists of a surficial layer of outwash material and deposited historic mill tailings.

18.2.2 Existing/Available Infrastructures at Mine Site Complex

ODV is currently operating the Bonanza Ledge Mine from an office complex set across Lowhee Creek from the District of Wells.

Existing infrastructure related to the Mine Site Complex include:

 Access road: In general, access to the site is from Highway 26, travelling east from Quesnel to Wells, BC. The Project access will require a new intersection located before the entrance of the community. The access road will cross the Willow River to the south over a new bridge structure ("Willow River Bridge") and then climb to the Services Building area and Workers Accommodation over a distance of 900 m. The new access road will provide two-lane access from Highway 26 to the Mine Site Complex.

 Mine Site Complex camp and offices: ODV has existing Worker Accommodations close to the current ODV office on Ski Hill Road and plans to use this accommodation area during Project construction.

 First Aid/Emergency service: The ODV First Aid/Emergency Services office will be located in the office complex of the Services Building. The existing First Aid/Emergency Services office located on Ski Hill Road in Wells will be used during construction until the new Services Building is operational. Bulk explosive storage and magazines: ODV has an existing explosive storage with adequate capacity to support exploration and pre-production development of the Project. Once the underground storage is built, the existing explosive storage area will no longer be used for operations.

 Telecommunication services: ODV's Bonanza Ledge Mine operations has existing telecommunication services available for construction activities at the Bonanza Ledge Site, including internet, telephone, and fibre optic, and they are available for the start of mine construction. Mine operating requirements and capacity have been defined and will require new communications services, described in Section 18.2.14.6.

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18.2.3 Site Preparation at the Mine Site Complex

The Mine Site Complex is proposed to be constructed on site of the historical Cariboo Gold Quartz Mine. The site is covered by vegetation with limited immature coniferous and deciduous trees. All infrastructure will be new and will require minimal clearing to establish the Mine Site Complex footprint. Where possible, excavated material from the Services Building, Valley Portal, and Camp Access Road will be placed as backfill for civil works including the Camp Access Road, the Services Building pad, and water management infrastructure.

18.2.4 Roads

18.2.4.1 Camp (Main) Access Road

Following the Willow River Bridge, the Camp Access Road will be capped with gravel and will span to reach the Services Building area, where visitors and vehicles will go through a security check point before being granted access to the premises. Design of the Camp Access Road will account for on-highway rated traffic only; no off-road vehicle loading is expected.

The approximate total length of the Camp Access Road is 900 m, from Highway 26 through the Services Building area and ending at the Camp.

18.2.4.2 Crossing Structure

The Willow River Bridge is designed as a single span bridge made of steel girders with precast concrete deck of approximately 24 m.

18.2.4.3 Access Gate

The access gate will be located near the Services Building. The purpose of the access gate is to control incoming and outgoing traffic to/from the Mine Site Complex.

18.2.4.4 Light Vehicle Roads

The Camp Access Road from the Services Building area will climb past the Valley portal to the Workers Accommodation area. This portion of the Camp Access Road will be constructed as a local road for light vehicle traffic only.

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18.2.4.5 Parking Area

Development of the Services Building area will include provision for parking of personnel vehicles. The parking area will be constructed according to applicable BC provincial regulation and safety standards.

The parking area will be located outside of the perimeter fence next to the Services Building.

18.2.5 Diesel Mobile Equipment

Mine Site Complex operations will require a select fleet of diesel mobile equipment on surface for the construction of the BFA, general maintenance of the site roads and operating spaces, the loading of concentrate into concentrate trucks, and for the other miscellaneous tasks in support of the underground mining operations. The following equipment are considered to support the operations:

 Front-end loader;

 Track Dozer;

 Motor Grader;

 Bobcat or skid steer;

 Forklift; Telehandler;

 Lighting Towers.

18.2.6 Mine Site Complex Operation Infrastructure

Mine Site Complex operation infrastructure will serve during mine construction and operation with sufficient area for material receiving and storage, tools, and work areas. The principal infrastructure includes:

 Valley Portal and Island Mountain Portal;

 Air Intake Raises;

 Services Building: Concentrator, Offices, Dry, Maintenance shop, and warehouse;

 Fuel storage and distribution (diesel and propane);

 Firewater for the Mine Site Complex.

 Sewage Treatment; and

 Potable Water Treatment and distribution.

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18.2.6.1 Air Intake Raises

Ventilation raises will be installed for each of the underground zones. Each raise will include a fresh air intake fan and heater, a propane tank, and a concrete slab. Each ventilation raise area will be fenced for safety purposes. They will also serve as emergency egresses for the underground mine.

Existing access roads will be used to access the ventilation raises.

18.2.6.2 Fuel

The Mine Site Complex will be serviced by a 70,000 liter ("L") diesel fuel tank. The tank will be equipped with a pumping skid and a fuel unloading / loading concrete area to contain minor spills. The tank will be double-walled and a fuel metering system will allow the dispatch of fuel by operation area. A small 1,000 L gasoline tank will also be installed.

Propane tanks will be installed at multiple locations on site for to heat Worker Accommodation, the Services Building, and mineair. At the Services Building area, two tanks of 30,000 United States Water Gallons ("USWG") will be installed and used to feed Valley Portal fresh air intake heater and the Services Building with propane through underground buried propane lines. The following areas will also be equipped with propane tanks:

 Workers Accommodation - 1,000 USWG;

 Island Mountain Portal - 30,000 USWG;

 Mosquito Air Intake - 1,000 USWG; and

 Cow Air Intake - 1,000 USWG.

Arrangement of fuel storage will consider applicable regulations, such as required offsets, tertiary containment, and be covered by a prefabricated structure to mitigate accumulation of snow.

18.2.6.0 Firewater

A fire pump station will be located in the water treatment plant building. The water source for the fire water protection system will be the effluent of the water treatment plant, which will feed a 900 cubic metre ("m3") steel tank, which will be equipped with a mechanical overfill to ensure the tank is always full. The tank will be connected to a pumping system comprised of a jockey pump, an electrical fire pump, and a diesel fire pump. A buried pipeline will distribute water to all main buildings, notably the Workers Accommodation and the Services Building.

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18.2.6.1 Sewage Treatment

The sewage treatment system will be located south of the Services Building area. An underground sewage piping system will be established to collect sewage wastewater from the Workers Accommodation and the Services Building for treatment. A buried equalization tank next to the modularized sewage treatment system will collect wastewater from the underground piping system as well as from a vacuum truck. A feed pump will then pump the contents of the equalization tank to the sewage treatment plant, which will employ the membrane biological reactor ("MBR") technology with submerged ultrafiltration membranes. The effluent will meet the effluent standard limits of British Columbia.

18.2.6.2 Potable Water Treatment and Distribution

The Mine Site Complex will be serviced through an underground potable water distribution system. Raw water from a well located near the existing ODV exploration offices will provide the water source for potable water requirements for the Mine Site Complex. A submerged pump in the raw water well will pump raw water to a series of buffer tanks located in the potable water treatment plant. Water from the buffer tanks will then be treated with coagulant and sodium hypochloride, pressurized and sent to vessels containing greensand media. Following treatment through the sand filter, water will then undergo an ultraviolet ("UV") reactor treatment before being stored as potable water in distribution tanks. A set of pumps will pressurize the system and distribute water throughout the site via the underground buried piping network.

18.2.7 Services Building

The Services Building area on the Mine Site Complex houses the Concentrator, Offices, Dry, Maintenance shop, and warehouse.

18.2.7.1 Concentrator

The concentrator includes the following processing circuits: mineral sorting, milling, flotation, concentrate dewatering, paste backfill, and concentrate storage and loading for transportation of flotation concentrate to the QR Mill. The concentrator will be connected to the pre-fabricated offices and dry building through a corridor.

Figure 18-2 shows the layout of the concentrator area of the Services Building.

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Figure 18-2: Concentrator area of Services Building Layout

18.2.7.2 Offices and Dry

The Services Building will be a two-storey, pre-engineered, and pre-fabricated modular building that will include site offices and dry. The offices, located on the first floor, will have an overall surface area of 1,400 square metres ("m2"). Process and Mining operations will be headquarted in this building and supported by other departments such as health and safety, Information Technologies (IT), accounting, procurement, and security. The dry, having a surface area of 800 m2, will be located on the second floor. The dry will be the buffer area between the process and mine facilities and the Workers Accommodation, which will be connected to the dry through an elevated walkway and staircase.

18.2.7.3 Maintenance shop and Warehouse

The surface maintenance shop and warehouse will be located in the Services Building. The building has a length of 36 m, and separated in two with a partition wall to separate the maintenance area from the warehousing area. The structure will be sized to provide working areas and space for secondary equipment. Both sections of the building will house offices and the maintenance shop will be serviced by a 5 tonne ("t") overhead crane.

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18.2.8 Camp Infrastructure

Workers at the Mine Site Complex will be accommodated in a new camp ("Workers Accommodation") to be constructed on ODV property. The Workers Accommodation will be located uphill of the Services Building, to the southeast, and will be connected to the Services Building facilities through an elevated walkway. The Workers Accommodation will consist of 275 executive rooms, each with its own bathroom. There will be a main kitchen and dining room, a laundry facility, and a recreation center. The camp will be connected to services such as potable water, sewage, power and propane by buried services.

The planned location for the Worker Accommodations is currently occupied by ODV's drill core storage area. The banks of pallets with boxed drill core will be relocated to a new storage location to allow for the construction of the new camp.

18.2.9 Surface Water Management Strategy

The site is comprised of two main general areas:

 The Island Mountain Portal area, located north of the Highway 26 divide, which will include an access road up to the portal and an entry pad area next to the portal with separate lined area to be used as a temporary rock stockpile laydown area. This infrastructure will be constructed on partially exposed historical mine waste rock.

 The main Mine Site Complex / Valley Portal area, located south of the Highway 26 divide, which will include the BFA, the north and central mitigation berms, the proposed Mine Site Sediment Pond with retention dike and pump station, the proposed Camp Access Road (including the proposed bridge over the Willow River) and ramps that surround the BFA and provide entry to the Valley Portal, the Services Building (with associated concentrator), the WTS and nearby Workers Accommodation. The area will also include the downstream section of the proposed WRSF contact water pipeline from the Bonanza Ledge Site, which will ultimately discharge into the Mine Site Complex Sediment Pond, and the WTS diffuser pipeline that discharges treated effluent into Jack of Clubs Lake. The majority of Project infrastructure at this location will be located on brownfield sites that have been previously disturbed by historical mining operations; the water management layout will be designed such that existing patterns of seepage for the historical mine tailings and waste rock will remain separated from the project's proposed infrastructure as much as practical.

Both main areas within the Mine Site Complex will include surface water management systems, containing diversion channels to deflect upslope non-contact water from entering the site and collection channels to direct contact water within the site either to the proposed Mine Site Sediment Pond or other sumps. A Linear Low Density Polyethylene (LLDPE) liner will be installed at the contact between the existing ground and the proposed BFA, providing a low-permeability barrier as part of seepage and runoff management. The liner will extend to the sediment pond retention dike and is expected to be installed in advance of the BFA.

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Contact water channels will be differentiated into either NPAG (Non-Potentially Acid Generating) or PAG (Potentially Acid Generating) pathways, depending on the type of material used to construct infrastructure within the catchments draining into these channels. PAG water will be directed to the proposed Mine Site Sediment Pond, while NPAG water will be monitored through smaller contact water sumps and may be discharged into the Willow River if relevant water quality criteria are met. For the purposes of this document however, NPAG water is assumed to be pumped to the proposed Mine Site Sediment Pond to be treated. The Mine Site Sediment Pond arrangement will include a pump station allowing water to be pumped to the WTS for treatment.

The proposed contact water treatment infrastructure for the Mine Site Complex at the WTS will be comprised of two specific treatment paths: a new proposed plant at the Mine Site Complex (referred to as Mine Site Complex WTS) with contact water treatment capacity of 600 m3/hr primarily designed for treatment of the contact water pumped from the underground mine (see Section 18.2.11) as well as the surface contact water and the material sorter outflow, and the relocated Bonanza Ledge WTS (treatment capacity of 180 m3/hr) that will be transferred to the Mine Site Complex once the Bonanza Ledge Site pipeline becomes operational, and will assist in the treatment of water on site. A combined maximum water treatment capacity of 780 m3/hr will thus be available on site for both surface and underground water. Two main constant underground (U/G) dewatering rate scenarios for the underground workings were assessed in the preliminary water management structure design and water balance model: the average base case estimate of 382.5 m3/hr and an upper hydraulic conductivity case of 532 m3/hr (see Section 16.5).

The WTS will discharge treated water through a pipeline to the diffuser location, located approximately 200 m offshore into Jack of Clubs Lake. An emergency spillway channel will be constructed for the Mine Site Sediment Pond to safely discharge flows to Jack of Clubs Lake in the event of extreme conditions where the pond storage capacity would be exceeded. An option to discharge the treated effluent into Willow River near the outlet of the lake as a contingency in the event that there is interest in reducing loadings to Jack of Clubs Lake will be considered for the detailed design phase of the Project.

18.2.10 Water Management Infrastructure

This section summarizes the preliminary design basis for the proposed water management infrastructure needed to support the Project and preliminary sizing for the main basins proposed.

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18.2.10.1 Design Events

18.2.10.1.1 Mine Site Water Conveyance Structures

Both the Joint Application Information Requirements and BC ENV Sediment Pond Design Guidelines (BC ENV 2015) identify the ability to convey the surface runoff from a 200-year return period storm event as a critical design criterion for mine surface water infrastructure. For the Mine Site Complex area of the Project, Golder (2021) compiled the maximum annual 24-hr precipitation depths from the ECCC published data for the Barkerville station (ECCC 2019a) and ran a frequency analysis to determine return period events for several yearly periods. Rainfall on snowmelt statistics are typically greater than rainfall only statistics at the Barkerville station, thus the 200-year return period rain on snow 24-hr event was retained as the criterion for the design of the surface water conveyance infrastructure.

18.2.10.1.2 Mine Site Water Retention Structures

The selection of an appropriate Environmental Design Flood (EDF) for contact water retention basins is site-specific according to the Canadian Dam Association (CDA) dam safety guidelines (CDA, 2019). The EDF return periods should typically range from 50 years to 200 years with no hard guideline on the specific event duration to use; the design criteria ultimately chosen depends on the assimilative capacity of the receiving environment and the capacity of the water treatment system.

The EDF design criteria chosen for the Mine Site Complex was a 200-year return period, rainfall on snowmelt event that will be managed within the Mine Site Sediment Pond, the Bonanza Ledge SCP and the Bonanza Ledge South Sump without overflow to the environment. A synthetic 200- year / 30-day duration rain on snowmelt event was created using the 200-year sub-daily to 30-day statistics in order to ensure the design would be based on the most critical event duration for each component of the water management system. Critical events duration for the three main ponds were found to be ranging from 3 to 15 days.

18.2.10.1.3 Climate Change Considerations

The climate resilience of the Project is currently being addressed by developing detailed, site- specific climate change projections for the Project and by using this climate information to develop modelling scenarios as part of the water balance work that will be prepared during the design and permitting stage, given that the majority of the infrastructure will likely remain active for several decades through post-closure.

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At this preliminary stage of the Project, the potential climate change impact on the design event for the Mine Site Complex water conveyance structures was assessed by accounting for a 20% increase to the historical 200-year rainfall event, following Engineers & Geoscientists British Columbia (EGBC) Professional Practice Guidelines documentation for infrastructure design criteria influenced by climate change (EGBC 2020). Similarly, a 20% increase to the climate wet year determined from local historical daily precipitations was chosen to an additional climate change- inspired precipitation scenario was added to the Mine Site water balance simulations (wet-CC climate year; see Section 20 for more details), to test the modelled infrastructure under precipitation elevated beyond established historical levels.

For the Mine Site Complex water retention structures, the EDF criteria will be revisited once the climate change projections for the Project are finalized, during the detailed engineering phase of the Project.

18.2.10.2 Design Criteria

The following design criteria apply to the proposed bridges, collection ditches/channels, culverts, underdrain, sediment ponds and sumps at the Mine Site Complex.

18.2.10.2.1 Bridges

Bridges at river-road crossings will be designed based on the following hydraulic design criteria:

 Design flood of 100 years average recurrence interval (ARI).

 Freeboard between the Q200 water surface elevation (WSE) and bottom of the bridge girders: 0.5 m

 Flow reduction area: less than 20% of the river width at high water level.

18.2.10.2.2 Culverts

Culverts at channel/river-road crossings within the mine boundaries will be designed based on the following hydraulic design criteria:

 Design flood - surface runoff reporting from a 200-year, 24-hour storm event (i.e., rainfall on snowmelt, see Section 18.2.10.1.1), in accordance with BC ENV Sediment Pond Design Guidelines (BC ENV 2015).

 All culverts will be flowing at a maximum of 70% of their diameter for the design event (instantaneous flow).

 Embedment will be 150 mm: upstream and downstream inverts shall be 150 mm lower than channel bed.

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 Minimum culvert diameter shall be 900 mm for ease of cleaning.

 Minimum culvert cover requirement to be evaluated based on maximum truck axle load design.

18.2.10.2.3 Contact Water Collection Ditches and Non-Contact water diversions

The ditch and channel design criteria presented in Table 18-2 apply to both contact and non- contact water infrastructure. The hydraulic capacity of all diversion and collection channels will safely convey the surface runoff reporting from a 200-year, 24-hour storm event (i.e., rainfall on snowmelt, see Section 18.2.10.1.1), in accordance with BC ENV Sediment Pond Design Guidelines (BC ENV 2015). Channel side slopes and invert will be designed to resist erosion for the same event.

Table 18-2: Design requirements for sizing ditches and channels

Parameter Unit Value
Minimum base width m 0.5
Minimum freeboard m 0.3
Minimum longitudinal slope m/m 0.003
Maximum side slope (soil) H:V 2.0:1
Maximum side slope (rock) H:V 0.1:1
Maximum flow velocity m/s erosion protection dependant

18.2.10.2.4 Contact Water Sumps

 The Mine Site Complex contact water sumps will be designed to manage runoff from the 200-year, 24-hour storm event (i.e., rainfall on snowmelt, see Section 18.2.10.1.1) without overflowing to the environment.

 The sump pump system will be designed to dewater the sump over a maximum period of 24hrs following the end of the design event.

18.2.10.2.5 Sediment Pond and Spillway

 Environmental Design Flood ("EDF"): The Mine Site Complex and Bonanza Ledge Sediment Ponds will provide sufficient capacity to manage surface runoff reporting from a 200-year, 30- day storm event (i.e., rainfall on snowmelt, see Section 18.2.10.1.2), without overflow to the environment.

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 The minimum design flow for settlement of the total suspended solids ("TSS") in the sediment pond water will correspond to the surface runoff reporting from a 10-year, 24-hour storm event.

 The inflow design flood (IDF) for pond emergency spillway design will be the surface runoff reporting from a 200-year, 24-hour storm event or longer return period, depending on the dam classification and according to the CDA guidelines.

The proposed Mine Site Sediment Pond will be located directly at the toe of the BFA and will include a perimeter dike, a pumping station with pipeline to the WTS and an armoured emergency spillway. The maximum available basin storage volume (i.e., the volume available at the spillway invert elevation) and outflow rate resulting from the preliminary EDF design modelling are presented in Table 18-3 for the Mine Site Sediment Pond. Note that the upper case U/G dewatering rate scenario was used for the EDF design modelling, which conservatively limits the outflow pumping rate from the sediment pond to the WTS (see Section 18.2.9).

Table 18-3: Maximum available pond storage volume and design flood outflow capacity (to WTS) for the

Mine Site Complex

Basin Receiving Structure Basin Dead
Storage (m3)
Basin Maximum
Available Storage
Volume (m3)(1)
Design Flood
Outflow Capacity
(m3/hr - L/s)
 Mine Site
Sediment Pond 
 Mine Site WTS    1,500    65,000    291 - 81 (2)  

(1) Based on total available storage volume, including dead storage.

(2) Refers to pumping capacity from the Mine Site Complex sediment pond to the WTS considering the upper-case dewatering flow rate.

18.2.11 Water Treatment

During the early works phase of the Project (prior to pre-operational and operational mine dewatering), a temporary water treatment system will be provided at the Mine Site Complex. The temporary water treatment system will be used to treat water collected from the Island Mountain portal (Starter and Ramp flows) and Mine Site (MS) sediment pond. It is assumed that the peak design flow of the temporary treatment system will be 69 cubic metres per hour ("m3/h") for the first year of operation, and 138 m3/h for the second year of operation, subject to further work. It is expected that the water that requires treatment will be of similar quality to the water being treated by the existing water treatment system at Bonanza Ledge Mine; therefore, the temporary water treatment system will use the same process as the current Bonanza Ledge Water Treatment System ("WTS"): sulphate precipitation, organo-sulphide precipitation, iron coprecipitation, lamella clarification, multimedia filtration, and sludge dewatering via geotubes.

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The permanent Mine Site Complex water treatment system ("Mine Site Complex WTS") will consist of a conventional high-density sludge (HDS) lime neutralization, ferric coprecipitation, and organosulphide precipitation system, at a centralized location, with the former Bonanza Ledge modular water treatment system ("Bonanza Ledge WTS"). The former Bonanza Ledge WTS will be relocated to the central location at the Mine Site Complex (once the pipeline from Bonanza Ledge to Mine Site Complex is installed) and will be incorporated within the Mine Site Complex WTS process. In addition to the aforementioned, the Mine Site Complex WTS will include both nitrification and denitrification unit operations for the treatment of nitrogenous species.

The Mine Site Complex WTS system will predominantly treat the underground water for both pre- operational and operational mine dewatering. Other sources that will be treated (where the flows are more seasonal or inconsistent) are the surface contact water from the Mine Site Complex area, including historical and new waste rock storage facilities, excess process water from the concentrator facilities, and the residual drainage from the Bonanza Ledge Site via a gravity-fed pipeline once the Bonanza Ledge WTS is relocated from the Bonanza Ledge Site to the Mine Site Complex.

The underground dewatering flow at the Mine Site Complex for the fully developed mine is estimated at 372 m3/h (Golder 2021a). The flow of contact surface water from the Mine Site Complex sedimentation pond is estimated to be 331 m3/h in peak flow conditions in a wet year and 43 m3/h in annual average flow conditions (Golder 2021a). The flow from the Bonanza Ledge Site to the central water treatment systems via the pipeline is expected to reach a peak of 163 m3/h in average year, with an annual average flow of 16 m3/h (Golder 2021b). The design flow for the pipeline from the Bonanza Ledge Site to the Mine Site Complex WTS is 450 m3/h. The Mine Site Complex WTS is designed for a flow rate of 600 m3/h, which allows for the underground dewatering flow from the fully developed mine and the attenuated contact surface water flows in a wet year.

The Mine Site Complex WTS will consist of three agitated tank reactors to allow for the oxidation of iron and arsenic species, the neutralization of acidity and precipitation of gypsum, and the precipitation of metal hydroxides, and organosulphide metals. The tank reactors are followed by a conventional clarifier to separate the precipitated materials from the treated water. Gypsum sludge from the process will be dewatered with two conventional filter presses. The clarifier overflow will be directed to MBBRs (for nitrification), followed by a Fluidized Bed Reactor (for denitrification). The effluent from the Fluidized Bed Reactor will be sent to a polishing MBBR to remove residual biochemical oxygen demand. The biosolids from the bioreactors will be removed by a Dissolved Air Flotation unit operation. A water treatment building will house the system that will include chemical dosing skids and chemical storage tanks.

Final treated effluent will be discharged to either the Jack of Clubs Lake or Willow River.

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18.2.12 Bulk Fill Area

Waste rock from mine development during pre-production and during initial years of operations will be placed as a bulk fill material to add laydown space on the Mine Site Complex. Within the Mine Site Complex, a designated Bulk Fill Area ("BFA") will be prepared to accommodate approximately 1.1 million tonnes ("Mt") of waste rock material. The Services Building area and the BFA will be constructed on a liner to ensure separation from historic waste rock below.

A liner will be placed under the BFA and the sediment pond. The liner will be extended and keyed- in to the historic waste rock surface.

18.2.13 Overburden

Excavation of overburden will be required to construct surface infrastructure. Excavated overburden material will be reused as backfill during infrastructure construction. If any, excess excavated overburden will be placed within a designated portion of the BFA or at the Bonanza Ledge Site Waste Rock Storage Facility ("WRSF").

18.2.14 Power Supply

The power demand at the Mine Site Complex is approximately 25 megawatt ("MW") average power, and nearly 30 MW peak power. Electricity will be supplied to the site via a new transmission line of approximately 70 km of length which is supplied with electrical power from BC Hydro's Barlow substation near Quesnel. The Northern Transmission Line Route, located primarily along existing forest service roads and forestry cut blocks north of Highway 26, was chosen for the Project.

It is anticipated that mine construction and pre-production mine development will require installation of temporary power (see end of current sub-section).

18.2.14.1 Substations

The interconnection at BC Hydro's Barlow substation will be at 66 kilovolts ("kV"). A 66 kV / 138 kV step-up substation including two 30/40/50 MVA transformers may also be built seven kilometers away, within the transmission line right of way.

At the Mine Site Complex, the incoming transmission line will terminate on the structure within the main substation, located towards the north end of the Services Building area. The outdoor substation will lower the incoming voltage from 138 kV to 13.8 kV through two 30/40/50 MVA transformers. During normal operation, both transformers will share the load, but during maintenance or repair work, one transformer will be capable of supplying the entire load of the Mine Site Complex, thus increasing the overall electrical supply reliability.

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18.2.14.2 Power Distribution

The output of the two main transformers will go into a 13.8 kV air insulated switchgear ("AIS") located in a pre-fabricated electrical room within the Mine Site Complex substation. All metering and protection apparatus will be mounted in this electrical room, as well as all other auxiliary systems such as the 125 VDC system. The substation's main switchgear will distribute power at 13.8 kV throughout the Mine Site Complex via power cables, both on surface and underground.

18.2.14.3 Site Lighting

Road lighting will be limited to minimal requirements at intersections. Exterior lighting will be present in pedestrian areas and in working or storage areas, mostly installed on the buildings. For all exterior lighting, LED fixtures will be used to reduce maintenance time and increase energy savings. Photocells will also be installed to reduce power consumption.

18.2.14.4 Emergency Power

Emergency power generators are planned to supply the critical equipment and installations when the main power from the regional grid is unavailable. Critical loads in the Services Building concentrator, the water treatment plant, and the underground mine will be able to be partially powered to ensure safety of workers and integrity of critical equipment. Two 1.8 MW diesel generators will be installed in the Mine Site Complex substation. The generators will be generating power at 4.16 kV, and connected to the main switchgear through a dedicated step-up transformer 4.16 kV/13.8 kV. The main substation's switchgear will have key interlocks allowing the transfer of the main power source from the transmission grid to the emergency generators. The operators will have an emergency power protocol to effectively rationalize power and dedicate it to the critical loads without exceeding the emergency power capacity.

18.2.14.5 Construction Power

During construction, power from the transmission line will not be available until it is energized, which is well into the construction phase of the Project. Therefore, the existing diesel power generating capacity at the Bonanza Ledge Mine will be supplemented with rental diesel generators during the construction period. Three 1.8 MW diesel generators will be added during construction.

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18.2.14.6 Telecommunication and IT infrastructure

Public Internet access and telephony services will be provided to the Mine Site Complex via a primary WAN link composed of an aerial fibre optic cable running between Quesnel and the new Telus Telecommunication tower, which is situated near the Workers Accommodation area.

For redundancy, a secondary WAN link using a fibre optic cable running from Quesnel to BC Hydro Barlow substation (aerial on HWY97, then buried on HWY26) and then over the new 66 kV / 138 kV powerline that we will be built between Quesnel and the Mine Site Complex in Wells.

A redundant fibre optic campus area network will interconnect all facilities of the Mine Site Comples such as:

 Workers Accommodations;

 Security gate;

 Telecom tower;

 Main electrical substation;

 Services Building area;

 U/G networks;

 Portals, exhaust raise and main intake raises;

 Water treatment plant and pumping stations;

 Fire water pumping station.

The fibre optic campus area network will be shared between the following systems:

 Process and electrical grid industrial control system;

 Corporate network (administration, maintenance, and telephony);

 Fire detection;

 Security video surveillance and access control system.

Remote areas on the site could be serviced via Point-to-Multipoint microwave links when more cost effective than through fibre optic.

IT and networking equipment and software required for the Project will be deployed to service the different areas via wired or wireless networks where appropriate for administrative and industrial systems.

The architecture of the Telecom and IT infrastructure will be designed with resilience and cybersecurity in mind.

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An underground private 4G/5G LTE and fibre optic network will be deployed to service the mine personnel and vehicles. Supported applications should include personnel and equipment geolocation for safety and ventilation on demand, remote operation, two-way radio communication, mining equipment predictive maintenance, pumps, and electrical distribution network control.

A Digital Mobile Radio ("DMR") system will provide Two-Way radio service for surface communications. To complement the DMR, a Push-to-Talk over Cellular ("PoC"), that can be used also over Wi-Fi, will be deployed to allow authorized workers, consultants and contractors to communicate with each other and with the DMR system users.

The telecom and IT infrastructure have been designed to allow for the potential future implementation of remote-control operation with a low latency communication connection.

18.3 Bonanza Ledge Site

Infrastructure at the Bonanza Ledge Site will consist of a waste rock storage facility ("WRSF"), associated water management infrastructure, and, during the Project Phase I ("Phase I") 2,000 tpd operation, a temporary surface crushing and mineral sorting facility and a Water Treatment System ("WTS")

Once the Services Building at the Mine Site Complex is operational for The Project Phase II ("Phase II") with production at 8,000 tpd, the temporary surface crushing and mineral sorting facility at the Bonanza Ledge Site will be dismantled, thus creating additional space for waste rock storage and required water management infrastructure.

18.3.1 Temporary Pre-Concentrator

For the initial mining production of 2,000 tpd, a pre-concentrator, including mobile crushing, and mineral sorting, will be built at the Bonanza Ledge Site. The use of the Bonanza Ledge Site will reduce the overall operation and transportation costs.

18.3.2 Waste Rock Storage Facility

A WRSF with approximately 14.0 Mt of storage capacity will be constructed in the northern limits of the Bonanza Ledge property, located approximately 3.5 km from the Mine Site Complex to the southeast.

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18.3.3 Surface Water Management Strategy

The site will include the main Bonanza Ledge WRSF pile with inner access road and rerouting of the existing C Road, the existing Bonanza Ledge SCP with retention dike, a south contact water retention basin (i.e., the Bonanza Ledge South Sump) and a network of contact and non-contact water ditches. The Bonanza Ledge South Sump will also include an outlet system with associated pipeline that links downstream to the Mine Site Sediment Pond, which will be located at the Mine Site Complex.

Contact water from the existing Bonanza Ledge Mine to the south of the new Bonanza Ledge WRSF will continue being sent to the existing Bonanza Ledge Water Treatment System (WTS) while the new Bonanza Ledge WRSF is being developed and prepared. Contact water resulting from the early Bonanza Ledge WRSF pile will also collect in the existing Bonanza Ledge SCP and be treated at the Bonanza Ledge WTS, followed by discharge to Lowhee Creek. This situation will last until the Bonanza Ledge WRSF area overtakes the Bonanza Ledge WTS location; the Bonanza Ledge WTS will then be relocated to the Mine Site Complex to support the Mine Site Complex WTS, and the Bonanza Ledge South Sump will become operational to collect the contact water from the southern end of the Bonanza Ledge WRSF. Contact water collected at the Bonanza Ledge SCP will then be conveyed via pumping to the Bonanza Ledge South Pond, and then further transported via pipeline to the Mine Site Sediment Pond for storage prior to treatment at the Mine Site Complex WTS and discharge to the environment.

The surface water management system for the Bonanza Ledge Site will contain existing and proposed diversion channels to restrict upslope non-contact water from entering the site, and channels to direct contact water within the site either to the proposed Bonanza Ledge SCP or to the Bonanza Ledge South Sump. Collection channels may need to be staged and raised as deposition within the new Bonanza Ledge WRSF advances. The Bonanza Ledge WRSF will be constructed on top of a low permeability LLDPE liner that will extend under the entire footprint of the pile and include the Bonanza Ledge SCP and the Bonanza Ledge South Sump, to limit the potential for water infiltration to the underground aquifer.

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18.3.4 Water Management Infrastructure

The design criteria that will be applied to design the water management infrastructure at the Bonanza Ledge Site are similar to the ones presented in Section 18.2.10.

The maximum available basin storage volume (i.e., the volume available at the spillway invert elevation) and outflow rate resulting from the preliminary EDF design modelling are presented in Table 18-4 for the Bonanza Ledge SCP and the Bonanza Ledge South Sump. Note that the upper case U/G dewatering rate scenario was used for the EDF design modelling, which conservatively limits the outflow pumping rate from the sediment pond to the WTS (See Section 18.2.9).

Table 18-4: Maximum available pond storage volume and proposed design flood outflow capacity:

Bonanza Ledge Site

Basin Receiving Structure Basin Dead
Storage (m3)
Basin Maximum
Available Storage
Volume (m3)(1)
Design Flood
Outflow Capacity
(m3/hr - L/s)
Bonanza Ledge
SCP
Bonanza Ledge South
Sump
420  5,460  270 - 3.6 
Bonanza Ledge
South Sump
Mine Site Sediment Pond
(through pipeline)
830  22,000  450 - 125 

(1) Based on total available storage volume, including dead storage

18.3.5 Water Treatment

The existing Bonanza Ledge WTS will be used to treat contact water, prior to the installation of the pipeline from the Bonanza Ledge Site to the Mine Site Complex. The Bonanza Ledge WTS is designed to remove trace metals and selected oxyanions using chemical-physical treatment processes that include the following unit operations: sulphate precipitation, organo-sulphide precipitation, iron coprecipitation, lamella clarification, multimedia filtration, and sludge dewatering via geotubes.

The Bonanza Ledge WTS will be relocated and incorporated into the Mine Site Complex WTS after the pipeline to the Mine Site Compex is installed and operational.

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18.4 QR Mill

The QR Mill is located approximately 111 km from the Mine Site Complex, 58 km southeast of Quesnel, and 17.5 km west northwest of Likely.

The QR Mill, as part of the Project, will consist of the components listed in Table 18-5.

Table 18-5: QR Mill Project components

Component Components
Site Infrastructure Existing fuel and propane storage and handling facilities
Existing worker accommodation
Sewage and septic work upgrades Existing offices
Mineral Processing Gold concentrate and filtered tailings storage shelters Upgrade of the grinding, leaching, elution, and gold room circuits New Ball Mill, Pre-Leach Thickener, Carbon-In-Pulp ("CIP"), Cyanide Destruction, Tailings dewatering, and filtering circuits
Tailings and Waste Management Facilities: Filtered Stack Tailings Storage Facility ("FSTSF") Overburden stockpile
Water Management
Facilities:
Water storage and supply (potable and non-potable)
Integration of new contact water management infrastructure from the Project to the existing water management infrastructure at QR Mill and upgrades as required
South Seepage Collection Pond ("SSCP") south of the FSTSF
Existing water treatment system and discharge
Power supply The QR Mill is currently connected to a transmission line that has sufficient power capacity for the Project's electrical requirements. Electrical equipment within the QR Mill will be
upgraded and new equipment will be added as required
Electrical equipment upgrades within the QR Mill

 

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18.4.1 Existing/Available Structures at QR Mill

The QR Mill is currently used to process Bonanza Ledge Mine mineralized material. The process tailings are currently being stored in the Main Zone Pit (MZP).

Existing infrastructure related to this operation include:

 Distribution Line: A 25 kV distribution line from BC Hydro supplies the QR Mill site with electrical power. The line was assessed and has sufficient capacity to service the QR Mill once upgraded. Site power distribution utilizes 25 kV overhead transmission line.

 Offices: QR Mill offices are functional and used for current operations. They will continue to be used for the Project.

 QR Mill: The gold flotation concentrate will be transported by trucks from the Mine Site Complex to the QR Mill's flotation concentrate storage area. The QR Mill will require the upgrades of existing process equipment as well as the construction of new circuits to meet the Project's requirements.

 IT and Telecommunication: the QR Mill has an existing IT and Telecommunication installation and services available, including internet, telephone and fibre optic. There will be upgrades to the IT and Telecommunication infrastructure to enable the deployment of faster data exchanges between sites, the corporate office and the potential development of remote operations in the future.

 Camp: The camp has 77 rooms, 38 of which were added in 2021. ODV plans to renovate and upgrade the 39 rooms from the older camp during the Project to support construction activities and the operations. Rooms will be renovated, and the capacity of the kitchen and the dining room will be increased.

 Sewage and potable water treatment: A sewage treatment system will be installed at the QR Mill to treat sewage streams from the camp and the mill. Additionally, a potable water treatment plant will be built on site to provide potable water for the camp and to the mill.

 Fuel and propane storage: There are two diesel fuel tank (4,200 L and 75,000 L), three propane tank (75,700 L) and 1 gasoline tank (4,200 L) on site. These are all existing storages that are considered sufficient for the Project.

 Tailings Storage Facility (TSF): The existing QR Mill TSF is currently used for water management. For the Project, the existing QR Mill TSF pond will be drained down, and tailings from the QR Mill will be dewatered prior to disposal in the FSTSF on top of the existing QR Mill TSF.

 Fire water: The QR Mill Fire Water system will mostly be refurbished with a new fire protection pump skid and increased fire protection coverage on site.

 Water management infrastructure.

 Water treatment plant: It is assumed the QR Mill will already be equipped with a water treatment system developed within the current operation that will be sufficient to meet the water treatment requirements of the Project.

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18.4.2 QR Mill Upgrade

The QR Mill is currently being used to custom process mineralized material from the Bonanza Ledge Mine (under Mines Act Permit M-198), with process tailings disposed of in the Main Zone Pit. Once mining is finished at the Bonanza Ledge Mine, the QR Mill will shut down for several months in order to undertake the necessary upgrades required to process gold flotation concentrate from the Mine Site Complex.

The main upgrades to the process infrastructure at the QR Mill will be the

 Addition of a gold flotation concentrate storage shelter;

 The expansion of the existing process plant building;

 Construction of a filtered tailings storage shelter.

Further information regarding the QR Mill upgrade can be found in Chapter 17.

18.4.3 Filtered Stack Tailings Storage Facility for QR Mill

The filtered stack tailings methodology has been selected for the QR Mill, which will reduce the size of the required TSF footprint versus conventional slurry placement methods. Tailings produced from the QR Mill will be pressure filtered to 89% solids content (mass of solids over total mass of solids and water). The filtered tailings will be deposited in lifts and compacted over the existing tailings and waste rock surface in the existing TSF, forming the FSTSF. The FSTSF has a design capacity of 2.1 million cubic metres (Mm3) of compacted filtered tailings.

The FSTSF will have 9H:1V slopes to the north, east and south, and 3H:1V slopes to west. At closure, the FSTSF will have a low-permeability closure cover to reduce infiltration, and ditches at the toe of the FSTSF will route runoff to the TSF Closure Spillway.

Prior to filtered tailings placement, the water in the existing TSF will be drained down, treated and discharged. The FSTSF Ephemeral Pond will be excavated in waste rock at the base of the existing TSF and be lined to provide flood storage in the FSTSF during operations.

During operations, filtered tailings placement will begin on the south side of the facility and progress northward over the mine life. Temporary liners will be placed over the daily tailings placement area and on the existing tailings and waste rock surface. The temporary liners will be removed when the next lift is placed. The temporary liners are intended to improve the water quality of runoff collected in the FSTSF Ephemeral Pond by intercepting surface runoff before it comes in contact with tailings. At all stages of tailings placement, the FSTSF will require proper grading to convey surface runoff to the lined collection ditches and to the lined Ephemeral Pond (KCB, 2022b).

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18.4.4 Water Management Infrastructure for Filtered Stack Tailings Storage Facility

Water management infrastructure for the FSTSF will include (KCB, 2022a): 

 The existing TSF East and West Diversion Ditches upslope of the FSTSF to divert non-contact runoff away from FSTSF;

 Proposed lined collection ditches and a lined FSTSF Ephemeral Pond to manage contact runoff within the FSTSF;

 A proposed South Seepage Collection Pond ("SSCP") to collect FSTSF seepage and to provide storage for flood and mill reclaim water;

 The existing North Seepage Collection Pond ("NSCP") and proposed groundwater interception wells to manage FSTSF seepage;

 A new Sediment Pond to manage runoff from the lined outer FSTSF slopes prior to discharging into Creek No. 3;

 The existing MZP to collect mine-influenced runoff from the surrounding area and pumped flows from the FSTSF Ephemeral Pond, SSCP, NSCP and groundwater interception wells; and

 A WTS to treat MZP water prior to discharging into Rudy Creek.

The QR Mill water management plan during the Project is described in Chapter 20. The WTS, FSTSF Ephemeral Pond, SSCP, and MZP are sized to manage the 1 in 50-year return period Environmental Design Flood (EDF) without offsite discharge.

Ditches and spillways at the QR Mill are sized to route the Inflow Design Flood (IDF) that correspond to their respective dam consequence and regulatory requirements. The IDF events for each water management structure are presented in Table 18-6.

Table 18-6 Water management structure IDF

(KCB, 2022a)

Structure

IDF Event

TSF East and West Diversion Ditches

200-year 24-hour storm

Contact water ditches

200-year 24-hour storm

NSCP spillway

200-year 72-hour storm

SSCP spillway

Probable Maximum Flood (PMF) 72-hour storm

TSF/FSTSF Ephemeral Pond spillway

PMF 72-hour storm

MZP spillway

1/3 between the 1000-year and the PMF 72-hour storm

Sediment Pond spillway

200-year 24-hour storm

 

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18.4.5 QR Mill Geotechnical Investigation

A site investigation program of the existing TSF and surrounding TSF areas was conducted in 2021:

 14 drill holes, nine CPT soundings, and two electrical shear vane tests were conducted within the TSF pond to collect information to support the FSTSF design.

 Outside of the TSF pond, two drill holes, two monitoring wells, and four pumping wells were completed to verify the absence of glaciolacustrine sediments underlying the existing TSF dams and investigate the foundation conditions for the proposed SSCP and existing NSCP.

 Nine drill holes and four test pits were completed at the QR Mill area to characterize the foundation of the proposed QR Mill infrastructure expansion.

Based on the results of the investigations, the existing TSF was found to contain an upper tailings layer (up to 4 m thick) located stratigraphically above waste rock (5 m to 15 m thick) and a lower tailings layer located stratigraphically below the waste rock. The foundation of the TSF and QR Mill area is characterized by glacial till with minor, isolated, glaviofluvial outwash deposits overlying bedrock.

18.4.6 Water Treatment

For the purpose of the Preliminary Economic Assessment ("PEA"), it is assumed that when the Project starts, the QR Mill site will already be equipped with a water treatment system developed within the current operation. Contact water treatment systems associated with the current operation are assumed to be available for the Project and will meet the water treatment requirements of the Project.

18.4.7 Telecommunications and IT Infrastructure

Public Internet access and telephony services will be provided to the QR Mill site via a primary WAN link composed of a Microwave link between the ABC/Telus Morehead Tower and the QR Mill site new telecom tower.

For redundancy, a secondary WAN link will be provided via Starlink Premium Satellite service.

A redundant fibre optic campus area network will interconnect all facilities of the site such as:

 Camp complex accommodations and offices;

 Security gate;

 Telecom tower;

 Main electrical substation;

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 Process plant;

 Effluent treatment plant and pumping stations; and

 Fire water pumping station.

The fibre optic campus area network will be shared between the following systems:

 Process and electrical grid industrial control system;

 Corporate network (administration, maintenance, and telephony);

 Fire detection; and

 Security video surveillance and access control system.

Remote areas on the site could be serviced via Point-to-Multipoint microwave links when more cost effective than through fibre optic.

IT and networking equipment and software required for the Project will be deployed to service the different areas via wired or wireless networks where appropriate for administrative and industrial systems.

The architecture of the Telecom and IT infrastructure will be designed with resilience and cybersecurity in mind.

A Digital Mobile Radio ("DMR") system will provide Two-Way radio service for surface communications. To complement the DMR, a Push-to-Talk over Cellular ("PoC"), that can be used also over Wi-Fi, will be deployed to allow authorized workers, consultants, and contractors to communicate with each other and with the DMR system users.

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19. Market Studies and Contracts

It was assumed in this PEA and technical report that the Cariboo Gold Project (the "Project") will produce gold in the form of doré bars. The market for doré is well established and accessible to new producers. The doré bars will be refined in a certified North American refinery-of which there are many in the eastern United States and Canada-and the gold will be sold on the spot market.

19.1. Market Studies

No market studies have been conducted by Osisko Development Corp. ("ODV") or its consultants in relation to the gold doré that will be produced by the Project. Terms and conditions included as part of the sales contracts are expected to be typical for this commodity. Gold is bought and sold on many markets in the world, and it is not difficult to obtain a market price at any time. The gold market is very liquid with many buyers and sellers active at any given time.

19.2. Assumptions

The long-term price of gold and exchange rates were estimated on the basis of discussions with experts, trailing averages, consensus analyst estimates, and recently published economic studies that were deemed to be credible. For this report, a gold price of $1,750 USD/oz was assumed and a CAD:USD exchange rate of 1.00:0.79 was used. Table 19-1 outlines the refining and pricing assumptions used in the economic analysis as described in Chapter 22:

Table 19-1: Refining and pricing assumptions

Assumptions Unit Value
USD:CAD (CAD:USD)   0.79 (1.27)
Gold payable % 100
Gold refining charge (including transportation cost) USD/oz 5.00
Royalty payment % 5.0
Gold price USD/oz 1,750

 

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19.3. Royalties

On February 5, 2016, Osisko Gold Royalties ("OGR") completed the acquisition of a 1.5% net smelter return ("NSR") royalty on the Project for a cash consideration of $25 million, with an option for OGR to purchase an additional 0.75% NSR royalty for $12.5 million. On April 19, 2017, OGR exercised the option, bringing its total NSR royalty on the Project to 2.25%. On September 5, 2018, OGR announced the purchase of an additional 1.75% NSR royalty on the Project for a cash consideration of $20 million, with an option for OGR to purchase an additional 1.0% NSR royalty for $13 million. OGR announced it would exercise the option on October 5, 2020, bringing its NSR for the Project to 5.0%. OGR's 5.0% NSR royalty is the only royalty that applies to the mineral resource area of the Project.

19.4. Contracts

Although, in the past, ODV's Barkerville Gold Mines was working with an American refiner, there are no refining agreements, sales contracts or other contracts currently in place that are relevant to this Technical Report. The doré produced by the Project will be shipped to a precious metals refinery for recovery of the gold into high purity bars meeting the minimum London Bullion Market Association ("LBMA") delivery standards.

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20. Environmental Studies, Permitting, and Social or Community Impact

20.1. Environmental Studies

20.1.1. Introduction

The Cariboo Gold Project ("the Project") area is composed of a Transmission Line ("TL") and three main locations: the Mine Site Complex, the Quesnel River Mill ("QR Mill"), and the Bonanza Ledge Site. The Mine Site Complex and east portion of the transmission line route are located within the Columbia Highlands Ecoregion and Bowron Valley Ecosection. The QR Mill and the west portion of the transmission line route are located within the Fraser Plateau Ecoregion and Quesnel Lowlands Ecosection. The majority of the Project infrastructure at the Mine Site Complex and at the QR Mill will be located on brownfield sites and lands previously disturbed by historical mining and recent mining at Bonanza Ledge Mine (Morgan et al., 2019).

20.1.2. Air Quality

WSP Canada Inc. ("WSP") completed ambient air quality modelling for the Project and used Quesnel, British Columbia, as a conservative baseline. As a result of comments from the Environmental Assessment Office ("EAO") and the Technical Advisory Committee ("TAC") it is anticipated that further ambient air quality monitoring will be required for various parameters as well as meteorological components including but not limited to wind direction, wind speed, temperature, humidity, precipitation, and barometric pressure. The proposed ambient air quality monitoring stations would be: two located in the District of Wells ("Wells") and one located near the QR Mill (WSP, 2021).

20.1.3. Land Capability and Use

The Project does not overlap any protected areas or parks. The Project overlaps a few mineral occurrences (MINFILE). The overlapping mining and exploration interests include tenure holders of mineral claims, client holdings, placer claims, and placer leases.

The Project site also overlaps forestry and timber resources interests, including old growth management areas, Tree Farm Licenses, and different tenures (active, pending, and retired) such as Occupant Licenses to Cut, and numerous forest sector resources roads.

Hunting, trapping, and fishing are another land use in the Project area and are reflected in five guide outfitter certificate areas that overlap with one or more Project Study Areas.

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20.1.4. Terrain and Soils

Soil characterization of existing conditions for the Project was conducted by WSP (ODV, 2021a) including field studies between 2016 and 2020, where information was collected from 740 sites regarding location, site characterization, and bioterrain information within the local study area ("LSA"). Of these sites, 490 included, at a minimum, a soil subgroup assignment. In addition, data from 17 points completed by GeoWest (2000) in 1996 was used to support bioterrain mapping (ODV, 2021a).

20.1.5. Vegetation

The Project spans two biogeoclimactic zones:

 Sub-Boreal Spruce ("SBS"): occurs throughout the QR Mill site, lower elevations at the Mine Site Complex, and large portions of the transmission line route;

 Engelmann Spruce-Subalpine Fir ("ESSF"): occurs the higher elevations along the Transmission Line route, and at the Mine Site.

Due to historical anthropogenic use, much of the Mine Site Complex, Bonanza Ledge Site, and QR Mill are not vegetated and consist of anthropogenic infrastructure such as road surfaces, mine spoils, and historic mines (Morgan et al., 2019).

Golder investigated vegetation existing conditions. During 2016, 2018, 2019, and 2020 (Golder, 2021c) conducted ecosystem-based subcomponent-field studies including Terrestrial Ecosystem Mapping, identification of listed species, traditional use plants, invasive and non-native plant species, and forage species for wildlife. The more recent studies carried out by Golder do not affect the existing conditions described in this section.

20.1.6. Wildlife and Wildlife Habitat

Waterbodies throughout the Project area provide suitable amphibian breeding habitat including Columbia spotted frog (Rana luteiventris), wood frog (Lithobates sylvaticus), western toad, and long-toed salamander (Ambystoma macrodactylum), while upland forested areas provide habitat for terrestrial amphibians.

Birds, such as passerines, raptors, and waterfowl, may utilize a variety of habitat types throughout the Project area, including forested habitat, riparian areas, clear-cuts, wetlands, and open waterbodies.

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Shrub, forest, and wetland habitat provides suitable habitat for small mammals, ungulates, and small to large carnivores. Open waterbodies, wetlands, and rights-of-way throughout the Project area provide suitable foraging habitat for bats, while abandoned mine shafts and adits provide potential bat winter hibernacula. Suitable invertebrate habitat occurs throughout the Project area and includes wetlands, riparian areas, watercourses, forested habitat, and clear-cuts (Morgan et al., 2019).

In January 2022, the existing conditions report was updated (Golder, 2022a), to respond to comments by the TAC and Participating Indigenous nations to include the following:

 Boundaries of Barkerville caribou herd;

 Update to fisher - Columbia population provincial status;

 Inclusion of Habitat Stand structure Classification values for mule deer ungulate winter ranges ("UWR") in the Terrestrial RSA; and

 Updates to Barkerville herd status from stable to declining.

20.1.7. Fisheries and Aquatic Resources

Most recent fish and fish habitat surveys conducted between 2020 and 2021 by WSP include habitat reconnaissance for the TL, fish sampling and hydroacoustic survey on Jack of Clubs Lake ("JOC"), and review of Resources Information Standards Committee ("RISC") for TL and JOC, and a fish community survey in JOC (WSP, 2022).

Fish populations and fish habitat are found throughout the Project area near both the Mine Site Complex and QR Mill, with fish distribution typically limited by gradient, barriers and obstructions, flows, and habitat quality. The Mine Site Complex and Bonanza Ledge Site are located within the Willow River watershed and contain several tributaries, including Slough Creek, Mosquito Creek, Lowhee Creek, Williams Creek, and Jack of Clubs Creek. Twelve fish species have been recorded in watercourses within the Willow River watershed, including Bull Trout, which is a provincially blue- listed species (FIDQ, 2020; (BC CDC, 2011)).

The QR Mill is located within the Quesnel River watershed. Assessed watercourses in the vicinity of the QR Mill where fish are present are limited to Rudy Creek and Maud Creek, which flow into the nearby Quesnel River. Rainbow Trout, Northern Pikeminnow, Redside Shiner, and Longnose Sucker have been recorded in Maud Creek. Chinook salmon have been recorded in its lower reaches, near the confluence with the Quesnel River (FIDQ, 2020). Rainbow Trout, Lake Chub, and Sucker (General) have historically been identified in Rudy Creek (FIDQ, 2020). Quesnel River Chinook salmon were assessed as Endangered by the Committee on the Status of Endangered Wildlife in Canada. Twenty-two fish species are recorded in the Quesnel River watershed (FIDQ, 2020), with salmon species including Chinook, Coho, Sockeye, and Pink Salmon, although a canyon with a large cascade just outside the City of Quesnel was identified as a velocity barrier to Pink Salmon (FIDQ, 2020) (Morgan et al., 2019).

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20.2. Environmental Liabilities

The Project has been designed to minimize short- and long-term environmental impacts, and to maximize lasting benefits to local communities, employees, and shareholders. Osisko Development Corp.'s ("ODV") goal is to create a sustainable operation that employs best available technology and practices in all aspects of the design and operation and considers both the short- and longer-term effect on the environment.

For the Project, a security bond was estimated at $18,484,755. This estimate does not include the current QR Mill and Bonanza Ledge Mine, which are currently approved under separate Mines Act permits, M-198 and M-238 respectively. Separate, detailed reclamation and closure plans and bonding estimates are maintained for those sites.

ODV is not aware of any significant factors and risks that may affect access, title, or the right or ability to perform the proposed work program on the Project Study Area.

20.3. Environmental Management and Monitoring

ODV has established environmental monitoring plans for a suite of valued components to respond to regulatory requirements and best management practices for the Project. The following subsections present management and monitoring activities connected to some of the key aspects of the Project such as waste rock, tailings, water, and other wastes.

20.3.1. Mineralized Material and Waste Rock Geochemistry

The mineralized material and waste rock geochemical characterization program included static testing of 228 waste rock samples and 17 samples of mineralized material, and kinetic testing of a subset of six waste rock samples (complete) and four samples of mineralized material (ongoing). The geochemical testing program is discussed in detail in the Geochemical Existing Conditions Report (Golder, 2022b).

The objective of the geochemical characterization program is to quantify the acid rock drainage ("ARD") and metal leaching ("ML") potential of each material type. The acid generation potential of waste rock and mineralized material was quantified using the results of acid base accounting ("ABA") and net acid generation ("NAG") testing, followed by kinetic tests (i.e., humidity cell tests ("HCT") on select samples. The results of ABA and NAG testing were used to quantify the proportion of potentially acid generating ("PAG") and non-potentially acid generating ("NPAG") samples, whereas HCT results were used to determine the rate of acid generation and ML samples of specific geochemical characteristics. The overall ML potential of a sample was determined using the results of mineralogical analysis, bulk metal analysis and short-term leach tests (including shake flask extraction ("SFE") and NAG leachate analysis). The rate of ML was then determined using kinetic test results from select samples.

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The results of the geochemical tests outlined above were used to interpret ARD / ML potential by material type:

 Waste Rock:

- According to the results of ABA, 5% of the waste rock samples are classified as PAG. The waste rock is anticipated to be NPAG; although some lithologies have some minor potential to generate acidic conditions, there is sufficient neutralization potential within the overall waste rock material. Results from the HCTs generally support the ARD classifications based on the static ABA data for the waste rock samples.

- The calcareous sandstone and sandstone samples contain the greatest ML potential among the waste rock samples. All materials tested contain elevated solid-phase and leachable arsenic concentrations, and this element is anticipated to be a constituent of primary concern in leachate or seepage with neutral pH conditions. Metal leaching of aluminum, cobalt, copper, iron, lead, nickel, and zinc will likely be pH dependent, and leaching of these constituents is expected to increase under acidic pH conditions. Results from the kinetic testing support that long-term ML of most constituents of concern under neutral pH conditions will be relatively low, except for arsenic.

 Mineralized Material:

- The results of ABA indicate that 18% of the mineralized material samples are classified as PAG. The mineralized material was considered to have an uncertain potential to generate acidic conditions due to high sulphide content and high neutralization potential. The kinetic test results for the mineralized material samples suggested a potential for acid generation from samples classified as NPAG from the static testing, although analysis of carbonate molar ratios for the mineral sorter waste samples indicate that the rate of neutralization depletion in the HCTs is likely being overestimated.

- The mineralized material had moderate propensity for ML, with arsenic being the constituent of primary concern.

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20.3.2. Mineralized Material Management Strategy

Mineralized material will be stored underground in stopes and in underground silos prior to underground crushing and conveying to surface for processing. Coarse mined mineralized material will feed the mineral sorter while the finer mineralized material will be directly sent to the flotation circuits in the concentrator at the Mine Site Complex. A final concentrate product will be stored in a silo in the concentrator building awaiting transportation to QR Mill. Mineralized material arriving at QR Mill via the transportation route will be fed directly to the mill using the existing truck dump hopper or it will be loaded into a mineralized material storage covered structure, to be fed into the mill feed system when required.

20.3.3. Waste Rock Management Strategy

Waste rock will be used as fill for the Bulk Fill Area ("BFA"), to build up the surface and expand the surface area at the Mine Site Complex. The remaining waste rock will be transported to and permanently stored at the Bonanza Ledge Site Waste Rock Storage Facility ("WRSF"), or used for either underground construction or backfill material. Further milling, gold recovery, and tailings management will be undertaken at the QR Mill.

The following three streams of waste will be generated at the Mine Site Complex:

 Mine development waste rock, to be used as construction fill material for the BFA and backfill during the construction and operations phases or stored in the BFA or Bonanza Ledge Site;

 Mineral sorter waste generated during operations; and

 Flotation tailings produced at the Mine Site Complex through operations.

Based on the planned mining methods, significant portions of the mine waste streams will be used for underground backfilling materials throughout the operations of the Project. The use of flotation tailings for underground paste backfill, along with the use of other mine development waste rock materials for cemented rockfill and un-cemented rockfill, will reduce the required footprint for the Project's surface mine waste storage requirements.

The Bonanza Ledge Site will have an approximate capacity of 14.0 Mt. Both the Bonanza Ledge Site and BFA will include non-contact water diversion structures, a liner beneath the facilities, and collection of contact water in sedimentation ponds (new Mine Sediment Pond at the Mine Site Complex and an existing sediment pond and a future seepage pond at Bonanza Ledge prior to treatment and discharge (ODV, 2021b.). The Bonanza Ledge Site and BFA are described thoroughly in Chapter 18.

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20.3.4. Tailings Geochemistry

Two tailings streams will be generated from the Project: 1) flotation tails from the milling in the Mine Site Services Building, which will be returned underground as paste backfill; and 2) process tailings from the QR Mill which will be stored at surface in the Filtered Stack Tailings Storage Facility ("FSTSF"). Tailings samples were submitted for ABA and NAG testing to confirm acid generation potential, and HCT to determine the rate of acid generation. Metal leaching potential was confirmed using the results of mineralogical analysis, bulk metal analysis, short term leach testing, and HCT.

The geochemical characteristics of the tailings are as follows:

Flotation Tailings:

 Flotation tailings from the milling in the Mine Site Services Building have a low potential for acid generation, due to a low sulphur content.

 These materials have a lower metal leaching potential than QR Mill tailings.

 Geochemical testing of cemented paste backfill, which will be created using the flotation tailings, is underway to confirm the long-term acid generation and metal leaching potential of cemented tailings (if any).

QR Mill tailings:

 The QR Mill tailings samples have a high potential for acid generation.

 The greater potential for acid generation in these samples also corresponds to a greater potential for metal leaching from pH sensitive constituents such as aluminum, copper, cobalt, iron, lead, nickel, sulphate, and zinc.

 Column tests are currently being conducted on the QR Mill tailings to assess long term ARD and ML potential. Preliminary results suggest that initial leachate may be acidic, with elevated metals due to stored acidity within the tailings. In addition, the neutralization potential within the QR Mill tailings will be depleted within a few years once sulphide oxidation begins. The QR Mill tailings are considered likely to become PAG in the long-term (less than 50 years) (Golder, 2022b).

20.3.5. Tailings Management Strategy

ODV completed an alternatives assessment to select the best way to manage the approximately 3.7 Mt of tailings produced at the QR Mill over a 12-year mine life for the Project. For the alternatives assessment, "best" is defined as the feasible combination of technology, location, facility configuration, and operational practices that minimize the combined environmental, technical, social, and economic risks over the Project's life cycle. Potential tailings dewatering technologies, facility configurations, and facility locations were assessed as part of the pre-screening process. Three short-listed alternatives were developed to a conceptual level and evaluated against each other in a Multiple Accounts Analysis ("MAA"). The MAA identified Alternative C: Constructing a filtered stack tailings storage facility ("FSTSF") on the existing tailings storage facility ("TSF") as the preferred alternative for managing the Project tailings at QR Mill (ODV, 2021b.).

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Refer to Chapter 18 for the FSTSF design summary.

20.3.6. Water Management

20.3.6.1. Water Management at Mine Site

The overall water management strategy for the Mine Site, comprised of the Mine Site Complex and the Bonanza Ledge Site, is to maximize diversion of non-contact water to the environment, while limiting the amount of contact water requiring collection, management, and treatment. The surface water management approach for the Project includes two elements:

 Water Management Plan ("WMP"): focuses on the assessment and design of the surface water management infrastructures at the Mine Site Complex and Bonanza Ledge Site.

 Water Balance Modelling ("WBM"): quantifies flow rates between different Project components and estimates, in particular volumes of water requiring treatment prior to discharge to the environment.

The Mine Site WMP/WBM will integrate both the Mine Site Complex and the Bonanza Ledge Site, as displayed in the WBM flow diagram of Figure 20-1.

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Figure 20-1: Flow diagram at Mine Site during operations

Water Management Plan

The water management plan for the Mine Site will consider best practices for water management and erosion and sediment control that will be put in place to manage runoff water from the Project infrastructure. Water management infrastructure will be constructed to manage contact and non-contact runoff on and around the proposed main mining infrastructure surface areas, which include:

 The Island Mountain Portal area (including a platform and access road). This infrastructure will be constructed on partially exposed historical mine waste rock. Contact water runoff will be collected in lined contact water ditches and sumps before pumping to the Mine Site Sediment Pond, or released to Willow River, if water quality obtained during monitoring is appropriate. The Island Mountain portal contact waters from a lined temporary laydown pad area may be pumped back into the underground water system.

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 The Mine Site Complex Worker Accommodations area (including the adjacent Camp Access Road segment). This infrastructure will be developed in the location of the existing core farm which is not currently managed by drainage infrastructure. Most of the Camp Access Road segment will overlay an existing unpaved road. Currently the majority of runoff from the developed camp is flowing towards Lowhee Creek, while only the southern part of the developed camp and the existing road are flowing towards Jack of Clubs Lake. Contact water runoff will be collected in lined contact water ditches draining to the Mine Site Complex Sediment Pond and then treated prior to discharge.

 The Mine Site Complex main area which includes the BFA, the Services Building, the Mine Site Sediment Pond, the water treatment system ("WTS") area, a segment of the Camp Access Road serviced by the northern access road contact water ditches, and the Valley Portal. This infrastructure will be developed on top of tailings and waste rock that were deposited in Jack of Clubs Lake during historic mining operations. Most of the runoff from this area currently flows towards Jack of Clubs Lake, except for the north-western area (where a segment of the Camp Access Road is planned) that sees runoff flow towards the Willow River. A low permeability liner under the BFA will limit infiltration to ground while contact water runoff will be collected in lined contact water ditches. Most of the contact water runoff will drain to the Mine Site Sediment Pond, while contact water collected along the Camp Access Road will drain into a collection sump for sediment settlement and monitoring. Water collected within the collection sump will be released to Willow River if water quality is appropriate or will be pumped to the Mine Site Sediment Pond and treated prior to discharge. The Mine Site Complex will be designed such that existing patterns of seepage for the historical mine tailings and waste rock will continue with little to no interaction with proposed mine infrastructure. Underground water will be pumped to dewater existing workings from previous mining operations, and to lower the groundwater level to an elevation suitable for starting mining activities. There is provision to reuse water from underground for the concentrator process needs. This will generate an excess of water (concentrator bleed) once the paste backfill plant becomes available. This excess water will be pumped to the WTS before discharge to the environment.

 The Bonanza Ledge Site area which includes the main Bonanza Ledge WRSF pile with inner access road and rerouting of the existing C Road, the existing Bonanza Ledge Sediment Pond with its retention dike, a new south contact water retention basin (i.e., the Bonanza Ledge South Sump). Surface water from disturbed areas (i.e., around the Bonanza Ledge WRSF footprint) will be collected through a network of collection ditches and directed either to the Bonanza Ledge Sediment Pond or, later, to the Bonanza Ledge South Sump. The Bonanza Ledge South Sump will include an operational outflow system comprised of a pumping system and associated pipeline running to the Mine Site Sediment Pond at the Mine Site Complex. Contact water from the existing Bonanza Ledge Mine property (and the Bonanza Ledge Phase II mine) to the south of the new Bonanza Ledge WRSF will continue being sent to the existing Bonanza Ledge WTS while the new Bonanza Ledge WRSF is being developed and prepared. Contact water resulting from the early Bonanza Ledge WRSF pile will also be collected in the existing Bonanza Ledge sediment Pond and be treated at the WTS, followed by a discharge to Lowhee Creek. This will continue until the Bonanza Ledge WRSF area overtakes the Bonanza Ledge WTS location. At this point, the Bonanza Ledge South Sump will be constructed and operational, and the Bonanza Ledge WTS will have been relocated to the Mine Site Complex to provide additional treatment capacity to the Mine Site WTS. Contact water collected at the Bonanza Ledge Site Sediment Pond will be pumped to the Bonanza Ledge Site South Pond, and then transported via pipeline to the Mine Site Sediment Pond for storage prior to treatment at the Mine Site WTS and discharged to the environment (i.e., Jack of Clubs Lake or a secondary discharge proposed in the Willow River).

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Water Balance

Water balance results for the fully developed site (final configuration) for an average climate year and the selected wet year with climate change (wet-CC year; see Chapter 18) climate year conditions from Figure 20-1 flows are provided in Table 20-1 for the base case and upper case U/G dewatering scenarios (see Section 16.5 for information on dewatering rates).

Table 20-1: Mine Site water balance results: Base (upper) case U/G dewatering

Flow Description Average Climate Year Wet-CC Climate Year
Average
Annual Rate
m3/hr
Maximum
Daily Rate
m3/hr
Average
Annual Rate
m3/hr
Maximum
Daily Rate
m3/hr
Inflow to Bonanza Ledge Sediment Pond (R5 + R7) 10.9 123 22.4 245
Bonanza Ledge Sed Pond to Bonanza Ledge South Pond (F8) 11.2 126 22.9 251
Bonanza Ledge South Pond outflow to Mine Site Sed Pond (F9) 19.8 224 40.7 447
Inflow to Mine Site Sed Pond (R1 + R2) 15.2 174 31.5 335
Mine Site Sed Pond outflow (F5) 35.8 344 (291) 74.6 344 (291)
U/G Inflow to Concentrator (F3A) 63.2 63.2 63.2 63.2
U/G Inflow to WTS (F3B) 319 (469) 321 (471) 319 (469) 321 (471)
Concentrator inflow to WTS (F10) 20 20 20 20
WTS: U/G flow treated 319 (469) 321 (471) 319 (469) 321 (471)
WTS: Surface flow treated (F5 + F10) 55.9 364 (311) 94.6 364 (311)
Total treated water / discharge outflow (D1) 375 (525) 685 (780) 414 (564) 685 (780)

Note: Numbers in ( ) correspond to the upper case U/G dewatering rate.

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Water Quality

The Mine Site water quality model ("WQM") was based on the Mine Site water balance; the conceptual approach is described in Golder (2022c) and includes both the Mine Site Complex and the Bonanza Ledge Site.

Water quality model inputs were developed to represent the geochemical reactivity of materials defined in the overall water quality conceptual model. The datasets that were used to develop inputs to the Mine Site WQM included:

 Mine site water quality monitoring data at the Bonanza Ledge Mine, including Pond A and EG-0.25;

 Mass loading rates for waste rock and mineralized material, developed using the results of short-term leach tests (SFE and NAG leachate analysis) and humidity cell tests.

To bracket the range of uncertainty within the existing databases, two scenarios were developed: base-case (average) and upper-case (95th percentile).

The predicted Mine Site Sediment Pond and Bonanza Ledge SCP water qualities during the Project were compared with the British Columbia Water Quality Guidelines for Freshwater Aquatic Life ("BCWQG-AL") to highlight parameters that occur at concentrations greater than reference guidelines:

 Mine Site Complex Water Quality Predictions:

- Base Case: Silver, aluminum, arsenic, copper and lead;

- Upper Case: Base case parameters plus cadmium, nickel, selenium and zinc.

 Bonanza Ledge SCP Water Quality Predictions:

- Base Case: Silver, aluminum, arsenic, copper, lead and zinc;

- Upper Case: Base case parameters plus cadmium, copper, nickel, selenium and sulphate.

The complete water quality predictions were provided for consideration in the Mine Site Complex WTS design.

Underground water quality was evaluated as a distinct inflow within the water management scheme that would report directly to the Mine Site Complex WTS and, as such, was not included in the WQM predictions. Underground water quality was assessed based on the composition of available underground mine water samples. The initial screening of groundwater quality samples collected from the underground mine identified sulphate, iron, arsenic, aluminum, copper, cadmium, cobalt, manganese, zinc and lead as for the purpose of the water treatment design basis evaluation (Golder 2021a).

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Nitrogen loadings were estimated using nominal blasting and waste rates; these values were used to predict nitrate and ammonia concentrations in mine water for the purpose of the water treatment evaluation.

20.3.6.2. Water Management at QR Mill Site

The general surface water management strategy at the QR Mill is as follows:

 Diverting non-contact water away from impoundments to minimize surplus water stored on site;

 Collecting disturbance-influenced contact water and implementing Surface Erosion and Sediment Control ("SESC") measures;

 Collecting and routing mine-influenced contact water that meets the permit criteria for discharge towards authorized discharge locations;

 Collecting and routing mine-influenced contact water that does not meet the permit criteria for discharge, to authorized storage locations prior to treatment and discharge towards authorized discharge locations.

The East and West TSF diversion channels will continue to divert non-contact runoff away from the

FSTSF.

Runoff from the temporarily lined FSTSF surfaces will flow in lined ditches to the FSTSF Ephemeral Pond. Excess water from the FSTSF Ephemeral Pond will be pumped to a lime dosing station and then pumped to the Main Zone Pit ("MZP"). The non-contact water from the lined outer slopes of the closure cover on the FSTSF will be routed into the new Sediment Pond located east of the South Seepage Collection Pond ("SSCP"). The Sediment Pond will discharge into MZP Diversion and then into Creek No. 3 (via Weir 8), provided its water quality meets the permit criteria for discharge.

The SSCP will be enlarged to provide flood storage, for use as part of the mill circuit, and to collect FSTSF seepage that leaks through the Cross Dyke. A small amount of freshwater will be drawn from the Northwest Zone Pit ("NWP") for mill operations. Surplus water from the reclaim water tank / SSCP will be pumped and treated prior to discharge to the MZP.

The North Seepage Collection Pond ("NSCP") will collect FSTSF seepage, and this water will be pumped to the MZP. There will be groundwater interception wells downstream of the FSTSF and NSCP toe to intercept FSTSF seepage that bypasses the NSCP. This intercepted water will also be pumped back to the MZP.

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The MZP will collect surface runoff from the QR Mill, camp, mineralized material pad and loading areas, and collect excess water from the FSTSF, NSCP, groundwater interception wells, and SSCP. The MZP pond will be maintained near its Minimum Normal Operating Water Level ("Minimum NOWL") to maximize its flood storage capacity. The Minimum NOWL is 0.5 m above the top of the tailings in the MZP to provide a water cover for the tailings. The MZP spillway invert will be raised by 1 m to increase the flood storage capacity in the MZP. Excess MZP water will be pumped to the water treatment system for treatment prior to discharge into the Rudy Creek watershed. The water treatment retentate stream will be treated at a desaturation unit. The solid waste stream from the desaturation unit will be dewatered and stored within the FSTSF; the liquid overflow will report to the MZP (KCB, 2022a).

Typical MZP water balance inflows and outflows for an average climate year and a 1-in-30-year wet climate year are provided in Table 20-2.

Table 20-2: QR Mill site MZP water balance results

Flow Description Average Climate Year 30-Year Wet Year
Average
Rate (m3/hr)
Max daily
rate (m3/hr)
Average
Rate (m3/hr)
Max daily
rate (m3/hr)
FSTSF Ephemeral Pond Limed Flow 18.7 162.0 26.6 162.0
Pumping from SSCP 5.8 90.0 10.1 90.0
Pumping from NSCP 3.2 37.8 3.6 38.2
WTS retentate flow 26.3 47.9 22.7 47.9
MZP Diversion Weir 8 Leakage 1.4 24.8 5.0 27.4
Groundwater inflow 3.2 3.2 3.2 3.2
Leakage from MZP West Road 3.2 63.7 5.8 68.0
Precipitation over MZP pond 2.2 29.5 2.9 34.9
Local catchment runoff 1.8 33.8 2.9 33.5
SSCP to MZP Seepage 1.1 1.1 1.1 1.1
Total Inflow to MZP 67.0 493.9 83.9 506.2
Spillway discharge to Creek No. 3 0.0 0.0 7.9 1000.1
Evaporation losses 1.4 4.3 1.4 4.7
WTS inflow 65.2 119.9 55.1 119.9
Seepage losses 0.4 0.4 0.4 0.4
Pond volume change 0.0 369.4 19.1 -618.8
Total Outflow from MZP 67.0 493.9 83.9 506.2

 

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Water Quality

The datasets that were reviewed or used in the QR Mill water quality model (KCB, 2022b) included:

 QR SW1, MZP, TSF, NSCP, SSCP, and NWP monthly water quality sampling data from 2012 to 2021;

 North Portal water quality data from 2012 to 2020;

 Water quality data for QR Mill effluent from 2021;

 Water quality data for the Project mill effluent after cyanide destruction, based on samples received in 2019;

 2020 kinetic (laboratory) test result for the Project filtered tailings;

 Field leach barrel test results on the MZP waste rock pile ("WRP"), East WRP samples, MZP pit wall samples and NWP pit wall samples collected in 2020; and

 Kinetic (laboratory and field leach barrel) test result on the surface tailings samples collected from the MZP and TSF in 2020.

The predicted MZP and FSTSF Ephemeral Pond water qualities during the Project were compared with the British Columbia Water Quality Guidelines for Freshwater Aquatic Life (BCWQG-AL) to screen for COPCs. The constituents that exceeded BCWQG-ALs that would require water treatment are shown in Table 20-3.

Table 20-3 Potential Constituents of Concern

Based on Predicted MZP Water
Quality during the Project

Based on Predicted FSTSF Ephemeral Pond Water
Quality during the Project

Sulphate, nitrite, nitrate, ammonia, cyanide, antimony, chromium, cobalt, copper, manganese, molybdenum, nickel, selenium, and silver.

Sulphate, nitrite, nitrate, cyanide, antimony, cadmium, chromium, cobalt, copper, lead, manganese, molybdenum, nickel, selenium and silver, thallium, zinc.

20.3.7. Water Treatment

The Project entails the rental of a temporary water treatment system for use during the construction period and a new permanent contact water treatment system at the Mine Site Complex for use during operations.

Existing water treatment systems at the QR Mill and at the Bonanza Ledge Site (that will be relocated to the Mine Site Complex with the construction of a pipeline) will be utilized by the Project. These water treatment systems are discussed in Chapter 18.

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20.3.8. Historical Waste Disposal Activities

As the Project consists of existing infrastructure that is both historical and operating, both the Mine Site Complex and the QR Mill are locations of historical waste disposal activities. In addition, a historical waste rock associated with the 1500 Level adit is also located on the northeast end of Jack of Clubs Lake, adjacent to the proposed Valley Portal. The remediation associated with the Cariboo Gold Quartz Mine operation, for tailings and waste rock, is under the jurisdiction of the Provincial Government (Crown Contaminated Sites Program in the Ministry of Forests, Lands, Natural Resource Operations and Rural Development1 ("FLNRORD") in (ODV, 2021b.) ODV and the Province have signed a Memorandum of Understanding for collaboration on remediation.

20.4. Considerations of Social and Community Impacts

ODV is committed to meaningful and transparent engagement with Indigenous nations, the public, local community members, and other stakeholders. ODV has cultivated positive relationships with the three Participating Indigenous nations, within whose traditional territory the Project is located, and has developed relationship agreements and engagement protocols with them. ODV intends to maintain these relationships through all phases of the Project.

20.4.1. Social Setting

The Project is in the Wells-Barkerville area of the Cariboo Regional District ("CRD") in British Columbia (BC), with the nearest communities to the Project being the District of Wells ("Wells"), Barkerville Historic Town & Park, Quesnel, and Likely. A portion of the Mine Site Complex and other Project components are outside of the District of Wells and are located in Electoral Areas C and F of the CRD. There are several unincorporated communities in the area, including New Barkerville and other settlements along Highway 26.

The Participating Indigenous nations for the EA for the Project are Lhtako Dené Nation, Xat'śūll First Nation, and Williams Lake First Nation. Both Nazko First Nation and the TNG decided not to participate in the EA for the Project, however, are being notified and updated on the Project on a regular basis.

The Project is in an area known for its rich mining history, with several historical mines located near or overlapping the Project footprint, as well as a number of active exploration and mining projects.

_________________________________________
1 Since the writing of this report, the Ministry of Forests, Lands, Natural Resource Operations and Rural Development (FLNRORD) has been divided into two ministries. FLNRORD will continue to be used throughout this report where relevant to refer to either the Ministry of Forests (MoF) or the Ministry of Land, Water, and Resource Stewardship.

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The primary employment industries in the area closest to the Project are Manufacturing and Construction, Wholesale and Retail Trade, and Accommodation and Food, however Other Services (repair and maintenance, personal and laundry services, private households, religious or social organizations etc.) also comprise a large proportion of employment in the Project area (Statistics Canada 2021).

20.4.2. Engagement and Consultation

Ongoing and future engagement measures by ODV have been developed through collaboration and relationships with the Participating Indigenous nations during the EA, guidance from the EAO, and in response to community and public inquiries. These measures will, at a minimum, comply with federal and provincial regulations and requirements for consultation and engagement.

20.4.3. Indigenous Nations

ODV has been actively engaging with Indigenous nations to understand their Indigenous interests in the Project and the areas influenced by the Project. During the Early Engagement Phase of the Environmental Assessment, the EAO confirmed that the Project is in the asserted traditional territory of Lhtako Dené Nation, Xat'śūll First Nation, and Williams Lake First Nation, and that each of these nations would be Participating Indigenous nations for the Environmental Assessment.

Engagement activities with Lhtako Dené Nation began in 2016, with Xat'śūll First Nation in 2017, and with Williams Lake First Nation in 2018. The focus of preliminary engagement has been to establish consistent points of contact with the authorized representatives of each Indigenous nation, inform Indigenous nations about the next steps in the regulatory review, and respond to questions and concerns raised by Indigenous nations about the Project and associated studies. ODV will have ongoing engagement through all Project phases with these nations.

ODV has reached Project-specific agreements that provide capacity funding to Lhtako Dené Nation, Xat'śūll First Nation, and Williams Lake First Nation to facilitate their participation in the Environmental Assessment and cover the costs of third-party technical review for each nation.

On October 2, 2020, ODV signed a life-of-project agreement to facilitate the development and full build-out of the Project with the ongoing consent and support of Lhtako Dené Nation during all stages of the Project.

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20.4.4. Federal, Provincial and Municipal Governments

As part of the current EA process ODV has engaged with various provincial and local government agencies, to differing degrees and levels of engagement. The District of Wells, City of Quesnel, City of Prince George, City of Williams Lake, CRD and the Regional District of Fraser Fort George ("RDFFG"), as well as the North-Central Local Governments Association have been engaged by ODV since 2016, when the Project Planning phase was initiated. ODV will continue to engage and collaborate with federal, provincial, regional and municipal government bodies and representatives as necessary, with respect to the Project, land and resource management, heritage and protected areas, official community plans and associated priorities, infrastructure, land use and access, employment and training, and any other matters deemed relevant.

20.4.5. Public Stakeholders

Proactive engagement with the public and stakeholders was undertaken beginning in the Project Planning Phase initiated in 2016, to build awareness about the Project, understand the priorities of stakeholders, and current conditions in their communities, and to understand interests and concerns around the Project as a means through which issues could be avoided through design or mitigation.

The following public and stakeholders regularly received Project information:

 Local Residents;

 Community and Environmental Organizations and Interest Groups;

 Community Service Providers;

 Business and Economic Development Organizations;

 Landowners along the Transmission Line and other Project components;

 Tenure holders, including traplines, guide outfitters, mineral, forestry companies and water license holders;

 Heritage and Cultural Stakeholders;

 Tourism-related and other Businesses;

 ODV Employees; and

 Arts Organizations.

Public and stakeholder engagement has included community meetings (in person and virtual), one-on-one meetings with particular groups, workshops and technical meetings, surveys and feedback forms, site visits, community events, industry events and public displays.

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Presentations regarding the Project are regularly made to the public on mitigation efforts and proposed strategies are developed by ODV to improve community relations, promote sustainability, and improve quality of life in the community while developing the Project and advancing through the permitting and EA application process. Feedback from the community and stakeholders is sought and obtained throughout the planning process.

20.5. Mine Closure Requirements

20.5.1. Mine Reclamation and Closure Plan

ODV has prepared various Reclamation and Closure Plans ("RCP") for elements of the Project to detail how the sites will be reclaimed to a safe, stable, and non-polluting condition. An updated RCP for the Project was provided as an appendix to the EA for the Project. RCPs will continue to be updated as mine plans evolve, regulatory guidelines change, and as required by permit conditions. These RCPs provide the basis to develop an integrated RCP for the Project including a reclamation cost estimate based on the most current assumptions regarding reclamation and closure of Project facilities and landforms.

20.5.2. Regulatory Framework

The Project mine closure is guided by several provincial acts and regulations:

 British Columbia Mines Act (Government of BC, 1996) and Health, Safety, and Reclamation Code for Mines in British Columbia (Government of BC, 2021);

 British Columbia Environmental Management Act (Government of BC, 2003);

 BC Water Sustainability Act (Government of BC, 2014);

 Regional Regulations - The Project is located within the Cariboo Regional District Electoral Area C (the Mine) and Area F (QR Mill) and is subject to the CCLUP and CRD North Cariboo Area Rural Land Use Bylaw (CRD, 2000);

 Federal Requirements - Federal Acts and Regulations that apply to the Project include the Fisheries Act (Government of BC, 1985) the Migratory Birds Convention Act (Government of Canada, 1994), the Seeds Act  (Government of Canada, 1985a), and the Metal and Diamond Mining Effluent Regulations (Government of Canada, 2002) of the Fisheries Act.

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20.5.3. Mine Closure Planning Approach

The Project footprint at each site has been divided into Master Areas by ODV to reflect disturbance types and proposed end land uses. Master Areas are generally divided by facility/landform types with common approaches to reclamation. Detailed closure and reclamation prescriptions are provided for each Master Area consisting of the following components:

 Scope and Extent: Defines location and extent of the Master Area;

 Current Conditions: Describes the Master Area conditions during operations including progressive reclamation that has already been done;

 Future Conditions: Describes the plan for the Master Area for future development and use prior to closure;

 Closure Design Basis: Lists regulations, permits, and RCP that should be followed to design the closure activities for the Master Area;

 Closure Design Criteria/Constructability: Presents activities and/or requirements to implement closure such as site preparation, progressive reclamation if applicable, revegetation, and post-closure monitoring/maintenance, as well as infrastructure decommissioning, and equipment/materials removal.

20.6. Permitting and Required Approvals

20.6.1. Regulatory Context

Depending on the scope of a proposed project, and whether it is expected to exceed thresholds, it can be subject to concurrent review through impact and environmental assessment processes at both the federal and provincial levels. At the provincial level, mineral mining projects that require review under the new BC Environmental Assessment Act (BCEAA; (Province of BC, 2018) exceed the following threshold under Part 3 (Table Six) of the Reviewable Projects Regulation: "A new mine facility that, during operations, will have a production capacity of > 75,000 tonnes per year of mineral ore" (Government of BC, 2020). The Project is currently undergoing and EA under the new provincial act, however, is not subject to federal review under the Impact Assessment Act (Government of Canada, 2019) as it does not exceed the relevant threshold specified in the Schedule of Physical Activities specified in the federal Physical Activities Regulations (SOR/2019- 285. S. 18(c); (Government of Canada, 2019a).

The Project will require several permits, approvals, and authorizations from provincial, federal, and municipal agencies, which are summarized in Sections 20.6.2, 20.6.3, 20.6.4, and 20.6.5, respectively.

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20.6.2. BC Environmental Assessment Regulations

As the Project is currently undergoing an EA under the BCEAA (2018), a number of regulations establish the legal framework for the process and are detailed in Table 20-4 below. The intention is that the Project will receive an EA Certificate from the EAO, under the BCEAA (2018) following the prescribed process and assessment phases.

Table 20-4: Summary of Regulations Supporting the BCEAA (2018)

Regulation Description
Reviewable Project Regulation (2020) The Reviewable Projects Regulation sets out the criteria and thresholds for projects required to undergo the EA process (EAO, 2019a). Reviewable proposed projects are primarily those with a higher potential for adverse environmental, economic, social, heritage, or health effects. Thresholds for both new projects and modifications to existing projects are provided.
Protected Areas Regulation (2019) This regulation identifies prescribed protected areas (as defined in other enactments) for the purposes of the Reviewable Projects Regulation, which determines which projects must automatically undergo an EA. This regulation is also related to the Minister of Environment and Climate Change Strategy's authority to terminate a project from the EA process if it would have extraordinarily adverse effects on a listed protected area.
Environmental Assessment Fees Regulation (Province of BC, 2019a) The EAO charges fees for a range of services, from undertaking EAs, through to compliance inspections. The fees provide partial recovery of the costs incurred by the EAO in delivering high-quality and timely EAs. Revenue from fees allows the organization to maintain appropriate staffing levels. The funding is also used to support other provincial agencies in their participation in the EA process.
Violation Ticket Administration and Fines Regulation (Province of BC, 2019b) This regulation enables EAO Compliance and Enforcement Officers to issue tickets with associated monetary penalties to proponents who are not in compliance with their certificate conditions, or their exemption order conditions.
Administrative Penalties Regulation (Province of BC, 2020a) Administrative Monetary Penalties are financial penalties that can be issued for prescribed contraventions of the Act or failures to comply with the Act, including failing to comply with the requirements of an EAC or an exemption order made under the Act. Regulated parties will be given prior notice of the EAO's intention to issue an administrative penalty and will be provided with an opportunity to respond before an administrative penalty is issued.

 

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In October 2019, the EA process commenced with the submission of an initial Project Description and Engagement Plan, to the BC Environmental Assessment Office (the "EAO"), under the former BCEAA (2002). Following guidance from the EAO, in collaboration with ODV, and following regulatory requirements, it was decided the Project would continue the EA process under the new 2018 BCEAA. Subsequently, the Project Description submitted in October 2019 was accepted as fulfilling the requirements of the Initial Project Description as part of the new Act, in February 2020.

As the EA process continued, further exploration work and updates to the mineral resource estimate ("NI 43-101 Technical Report and Mineral Resource Estimate for the Cariboo Gold Project" (October 5, 2020)) supported an increase in the proposed production rate to 4,750 tpd.

The Project, proposed at a production rate of 4,750 tpd, is currently undergoing review as per the BC Environmental Assessment Act ("BCEAA") 2018, with issuance of an Environmental Assessment Certificate ("EAC") expected after successful review of the application.

Since submission of the EAC Application in July 2021, ongoing exploration work and updating of the mineral resource estimate supports an increase in the production rate to 8,000 tpd after the first 3 years of operations. Any changes to the Certified Project Description, resulting from the increased production rate will require an amendment to the Project EAC before proceeding to an updated detailed design and ensuing permit amendment applications.

20.6.3. Federal Permits, Approvals, Licences and Authorizations

Federal permits, approvals and authorizations that could potentially be applicable to the Project are summarized in Table 20-5. As the Project proceeds, specific permit requirements will be determined based on discussions with federal agencies. ODV does not currently hold any federal permits in relation to their operations in the Project area.

Table 20-5: Federal permits and approvals potentially applicable to the proposed Project

Permit / Approval Responsible
Agencies
Federal Statute Project Activity/Regulatory Context
Fisheries Act Authorization
(Government of Canada,
1985b)
Fisheries and
Oceans
Canada
("DFO")
Fisheries Act No person shall carry on any work, undertaking, or activity other than fishing that results in the death of fish.

No person shall carry on any work, undertaking, or activity that results in the harmful alteration, disruption, or destruction (HADD) of fish habitat.

If the death of fish or a HADD cannot be avoided during any part of the Project, an Authorization under Section 35 may be required.

 

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Permit / Approval Responsible
Agencies
Federal Statute Project Activity/Regulatory Context
Migratory Birds Convention Act
Authorization
(Government of Canada, 1994)
Environment
and Climate
Change
Canada
("ECCC")
Migratory Birds
Convention Act
Deposit of substances harmful to migratory birds or vegetation clearing for the Project during the migratory bird nesting season as outlined by ECCC (May 1 to July 15, Zone A4).

Permits may be issued to eliminate dangerous conditions or damage to property caused by migratory birds or their nests.
Navigation Protection Program
Notification and/or Approval
Transport
Canada
Canadian
Navigable
Waters Act
Notification and information to the Minister for works that are in, on, over, under, through, or across any
navigable water.

Application for approval from the Minister is required for works (other than minor works) that are in, on, over, under, through, or across any navigable water and that may interfere with navigation.
Species at Risk Act
Authorizations (if required;
Government of Canada, 2002)
ECCC, DFO,
and Parks
Canada
Species at Risk
Act ("SARA")
The Competent Minister may issue a SARA permit authorizing activity that will affect a listed wildlife species, any part of its critical habitat, or the residences of its individuals.
Explosive Licences and Permits
(Government of Canada,
1985a)
Natural
Resources
Canada
Explosives Act,
and Regulations
Explosive Licence required for factories and magazines.
Explosive Permit required for vehicles used for the transportation of explosives.
Transportation of Dangerous
Goods Regulation
(Government of Canada, 2001)
(Government of Canada, 1982)
Transport
Canada
Transportation
of Dangerous
Goods Act
This Act addresses the classification, documentation, marking, means of containment, required training, emergency response, accidental release, protective measures and permits required for the transportation of dangerous goods by road, rail or air.

 

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20.6.4. Provincial Permits, Approvals and Licences

Provincial permits, approvals, authorizations, and licences that could potentially be applicable to the proposed Project are summarized in Table 20-6. The Project will be located on Crown lands at the Mine Site Complex and the QR Mill, as well as on a parcel of private land owned by ODV at the Mine Site Complex. A Mines Act permit approving the mine plan and reclamation program will be required for the Project, as well as amendments to existing provincial permits (e.g., Mines Act and Environmental Management Act) for the QR Mine and Bonanza Ledge Mine properties. As the Project proceeds, specific permit requirements will be determined based on discussions with provincial regulatory agencies.

Table 20-6: Provincial permits and approvals potentially applicable to the proposed Project

Permit / Approval Responsible Agency Provincial Statute
Mines Act Permit Ministry of Energy, Mines, and
Low Carbon Innovation ("EMLI")
Mines Act
Effluent Discharge Permit BC Ministry of Environment and
Climate Change Strategy
("ENV")
Environmental Management Act
Emissions Discharge Permit ENV Environmental Management Act
Refuse Permit and Waste Storage
Approval
ENV Environmental Management Act
Heritage Conservation Act Permit Ministry of Forests, Lands, Natural
Resource Operations and Rural
Development ("FLNRORD"),
Archaeology Branch
Heritage Conservation Act
(Government of BC, 1996a)
Heritage Conservation Act
Concurrence letters
FLNRORD, Archaeology Branch Heritage Conservation Act
License of Occupation FLNRORD Land Act
(Government of BC, 1996b)
Statutory Right of Way FLNRORD, Surveyor Generals
Office, MOTI
Land Act
Wildlife Act Permit FLNRORD, Resource Stewardship
Division
Wildlife Act
(Government of BC, 1996c)
Sewer System Regulation Approval BC Ministry of Health, Interior
Health Authority ("IHA"),
Northern Health Authority
("NHA")
Public Health Act
(Government of BC, 2008)
Construction Permit for a Potable
Water Well
BC Ministry of Health, NHA Drinking Water Protection Act
(Government of BC, 2001)

 

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Permit / Approval Responsible Agency Provincial Statute
Water System Construction Permit BC Ministry of Health, NHA Drinking Water Protection Act
Drinking Water System Operations Permit BC Ministry of Health, NHA Drinking Water Protection Act
Short Term Use of Water Permit
Water Sustainability Act
Section 10
FLNRORD, Water Stewardship
Branch
Water Sustainability Act
(Government of BC, 2014)
Change Approval (for changes in and about a stream), Water Sustainability Act Section 11 FLNRORD, Water Stewardship Branch Water Sustainability Act
Water Licence (Diversion, storage, and use of water) Water Sustainability Act Sections 7 and 9 (Government of BC, 2014) FLNRORD, Water Stewardship Branch Water Sustainability Act
Licences to Cut and Special Use Permit FLNRORD, Forest Tenures Branch Forest Act (Government of BC, 1996d)
Industrial Access Permit BC Ministry of Transportation and
Infrastructure ("MOTI")
Transportation Act
(Government of BC, 2004)
Permit for regulated activities Ministry of Health Public Health Act
Explosives Magazine Storage and Use Permit EMLI Mines Act

In addition, two pieces of Provincial climate action legislation have direct impacts on the EAO review of the Project, and could impact the operation of the Project, should it be approved. The Climate Change Accountability Act, 2019 (Government of BC, 2019a) and the Greenhouse Gas Industrial Reporting and Control Act, 2016 (Government of BC, 2014) and associated reporting regulations. The Project is expected to have annual direct GHG emissions exceeding 25,000 tCO2e, meaning that it would be subject to both the emissions reporting and verification requirements in the above acts.

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20.6.5. Local Government Permits

The Project facilities include areas within the jurisdictions of the CRD and the District of Wells, for the Mine Site Complex specifically. Both jurisdictions have passed bylaws that may pertain to Project activities/operations and property ownership or business operations, including:

 CRD Invasive Plant Management Regulation Bylaw, No. 4949, 2015, regarding the management of invasive plants;

 CRD Untidy and Unsightly Premises Regulatory Bylaw, No. 4628, regarding the management of untidy/unsightly properties;

 District of Wells Noise Control Bylaw, No. 93, 2018 limiting hours of noise during operations/ construction; and

 District of Wells Traffic and Streets Bylaw, No. 68, addressing traffic and provides load and size restrictions.

Other Wells bylaws are applicable to utility connections and municipal service fees related to property development (water, sewer, garbage). These bylaws would be addressed through direct applications with the District of Wells.

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21. Capital and Operating Costs

The capital and operating cost estimates presented in this Preliminary Economic Assessment Study ("PEA") for Osisko Development Corp.'s ("ODV") Cariboo Gold Project (the "Project") are based on the construction of:

 Pre-concentrator including a crushing circuit and mineral sorting at the Bonanza Ledge Site;

 Quesnel River Mill ("QR Mill") and Tailings Management Facility ("TMF") upgrade at QR Mill;

 An underground mine including a primary and secondary crushing circuit;

 A concentrator consisting of mineral sorting, grinding, flotation and a paste backfill at the Mine Site Complex; and

 Ancillary infrastructure at the Mine Site Complex to support operation, such as a camp, offices and dry, and a Water Treatment Plant.

All capital and operating cost estimates cited in this Report are referenced in Canadian dollars.

21.1. Capital Costs

21.1.1. Summary

The total initial capital cost expenditures ("CAPEX") to bring the Project to a capacity of 2,000 tonnes per day ("tpd") is estimated at $121.5 million ("M"), including contingencies and indirect costs. The total expansion CAPEX to increase the Project's capacity to 8,000 tpd is estimated at $716.1M. The cumulative life of mine capital expenditure including costs for initial, expansion, sustaining is estimated to be $1,364.8M, as illustrated in Figure 21-1

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Table 21-1: Project capital cost summary

Area Cost Area Description Initial capital
cost ($M)
Expansion
capital cost
($M)
Sustaining
capital cost
($M)
Total capital
cost ($M)
000 Mobile Equipment (non- mining) 3.2 1.8 5.6 10.6
200 Underground Mine 16.2 114.9 375.9 507.0
300 Water & Waste Management 2.6 88.6 9.9 101.1
400 Electrical & Communication 13.1 57.4 67.0 137.5
500 Surface Infrastructure 3.8 53.3 60.6 117.7
500 Mine Surface Infrastructure 2.1 2.5 5.7 10.4
600 Process Plant - Wells 1.5 189.1 - 190.6
600 Process Plant - QR Mill 37.6 17.1 2.4 57.0
700 Construction Indirect Costs 20.8 66.1 0 86.9
800 Owner's Costs 3.7 27.2 0.1 31.0
999 Contingency 0.5 98.1 - 98.7
- Capitalized Operating Costs 16.4 - - 16.4
  Total 121.5 716.1 527.2 1,364.8
  Site Reclamation and Closure - - 18.5 18.5
  Salvage Value - - -61.1 -61.1
  Total - Forecast to Spend 121.5 716.1 484.6 1,322.2

 

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Figure 21-1: Annual and cumulative project capital costs

21.1.2. Scope and Structure of Capital Cost Estimate

The capital costs estimated for the life of mine ("LOM") were divided into three categories: initial, expansion and sustaining. Initial capital is comprised of capital costs incurred from 2023 to 2024 to initiate production at a capacity of 2,000 tpd. Expansion capital is incurred between 2024 and 2026 and is used to increase the Project's capacity to 8,000 tpd. Sustaining capital are all costs required to maintain the 8,000 tpd production profile through the LOM following the initial and expansion capital periods.

The overall capital cost estimate developed in this PEA generally meets the American Association of Cost Engineers ("AACE") Class 4 requirements and has an accuracy range of between -30% and +30%. The capital cost estimate for this study forms the basis for the approval of further development of the Project by means of a Feasibility Study. The various sections have been developed at different levels of engineering definition. Some sections are as low as 5%, whereas others are up to 30%.

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The capital cost estimate abides by the following criteria:

 Reflects general accepted practices in the cost engineering profession;

 Assumes contracts will be awarded to reputable contractors on a cost-reimbursable basis;

 Labour costs are based on the current British Columbia Industrial Construction Collective Bargaining Agreement;

 Winter conditions are expected between the months of October and April. This is incorporated within the Project productivity factors;

 Preproduction capital costs are expressed in constant Q2 2022 Canadian dollars ("CAD"); with an exchange rate of 1.00 CAD for 0.79 US dollar ("USD" or "US$").

The Project schedule, from the Feasibility Study, detailed engineering to start-up, was also used in the estimate preparation. Refer to Chapter 24 for the execution plan and key Project milestones. Any capital expenditures before detailed engineering phase are considered "Early Works" (work plan capital) and are not included in this capital cost estimate.

21.1.3.  Work Breakdown Structure (WBS) and Estimate Responsibilities

The capital cost estimate was developed in accordance with ODV's work breakdown structure ("WBS"). Table 21-2 illustrates the WBS with the Qualified Persons associated with each Level 1 Area:

Table 21-2: CAPEX estimate responsibilities by WBS

Area

WBS description

Responsible entity

000

Mobile Equipment (non-mining)

BBA

200

Underground mine

WSP, InnovExplo

300

Waste and Water Management

Golder, KCB, WSP

400

Electrical & Communication

BBA

500

Surface Infrastructure

BBA, WSP

600

Process Plant (Mine Site Complex and QR Mill)

BBA

700

Construction Indirects

BBA

800

Owner's Cost (General administration)

BBA

900

Indirect Costs

BBA

999

Contingency

BBA

 

Site closure and reclamation

Golder, KCB

The WBS differentiates the Project's costs (initial, expansion and sustaining) in the following categories:

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21.1.4. Estimate Methodology

Direct Costs

 The cost for major equipment were received through multi-packages bids from equipment manufacturers;

 Labour hourly rates and productivity were benchmarked against other mining projects in Bristish Columbia'

 Concrete costs were established from budgetary quotes from established suppliers and based on concrete Material Take Offs ("MTO");

 Structural Steel costs for the main buildings were based on MTOs and associated budgetary quotes from various steel building suppliers for the Services Building;

 Pre-fabricated buildings such as at QR Mill site are supported by general layouts and specifications, and costs were requested from various suppliers;

 The Workers Accommodation, the 69 kV / 138 kV transmission line and associated substations were supported by firm bids with Lease-to-Own models.

Indirect Costs

 Engineering, procurement and construction management ("EPCM") were developed with a detailed organizational chart and on a monthly basis for the duration of the initial and expansion phases;

 Camp costs were based on current costing from the existing operations on both sites;

 Freight and Storage costs were factored on the direct costs;

 Temporary facilities and services were factored;

Contingency

 Contingency for initial and expansion capital were applied to each WBS area and based on their respective project definition level;

 Contingency for underground development were embedded in the direct costs;

 Contingency for sustaining capital were applied for civil works.

Sustaining Capital

 Sustaining Capital were assessed on a requirement basis within the preliminary design of infrastructure to support the LOM production profile of 8,000 tpd;

 Costs of the Lease-to-Own components of the Project, such as for the Workers Accommodation, part of the surface mobile equipment fleet, the transmission line, and the related substations were included in the sustaining capital estimate for the portion of payments over the initial and expansion capital periods;

 Also, sustaining capital include the financing arrangement for the U/G mobile mining equipment and the U/G crushers.

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Closure Costs

The Project's tailings management strategy at QR Mill is to allow storage of the Project tailings within the existing tailings storage facility ("TSF"). This tailings management strategy will allow reclamation of the Project filtered stack tailings storage facility ("FSTSF") jointly with the existing TSF, eliminating costs related to reclaiming a new, separate filtered tailings facility. As such, expenses associated with reclamation and closure of the Project FSTSF are covered as part of the Bonanza Ledge Mine Phase II reclamation and closure costs for the existing TSF. The overall closure cost for the QR Mill has not yet been estimated, although it is expected to significantly decrease compared to the value proposed by Golder.

The reclamation cost estimate provided below comprises reclamation costs for the Mine Site Complex, the Bonanza Ledge Site, and the updated QR Mill.

It is to be noted that a 25% contingency was applied to reclamation unit rates, lump sum items, and post-closure monitoring and maintenance to reflect the current level of the Project planning. It is expected the level of cost accuracy will improve as engineering design for key reclamation and closure components and structures is completed as the Project develops.

Reclamation and closure costs for all three sites were updated by Golder and estimated to total $18.5M. Reclamation will start in the second half of 2038 after the end of the mine production. The remaining rehabilitation activities are expected to be performed for a period of two years.

Salvage Value

 Salvage Value for mobile mining equipment, process equipment, electrical equipment and structural steel was estimated at $61.1M.

21.1.5. Exclusions

The following items were excluded from the capital cost estimate:

 Licensing costs;

 Financing costs other than for components having been described as financed or as Lease- to-Own;

 Foreign exchange variations;

 Project development costs incurred to date, including studies, equipment purchases, and early works;

 Permitting costs;

 Taxes (included in the financial model); Geotechnical anomalies (must be considered as risk);

 Operating costs.

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21.2. Operating Costs

21.2.1. Summary

The average operating cost expenditures ("OPEX") over the 12-year mine life is estimated to be $94.0 per tonne ("$/t") mined or $933.3 per ounce ("$/oz") (CAD). Table 21-3, below, provides the breakdown of the projected operating costs by cost area for the Project.

Table 21-3: Cariboo Gold Project operating cost summary

Area Cost area description LOM
($M)
Annual
average
cost ($M)
Average
LOM
($/tonne
mined)
Average
LOM
($/oz)
OPEX
(%)
000 Mineralized material transport 108.5 9.0 3.9 38.2 4.1
200 Underground mining 1,499.9 125.0 53.3 528.8 56.7
300 Water and Waste Management 163.5 13.6 5.8 57.6 6.2
600 Processing - Mine Site Complex and QR Mill 675.8 56.3 24.0 238.2 25.5
800 Owner's Costs (G&A) 216.0 18.0 7.7 76.2 8.2
  Capitalized Operating Costs -16.4 -1.4 -0.6 -5.8 -0.6
  Total 2,647.3 220.6 94.0 933.3 100

21.2.2. Basis of Operating Cost Estimate

The operating cost estimate was based on Q2 2022 assumptions. The estimate has been deemed to be of an accuracy within alignment with a PEA level of study. All operating cost estimates are in CAD. Many items of the operating cost estimate are based on budget quotations, allowances are based on in-house data and salaries are based on ODV's projected salary chart.

The operating cost estimate is based on the mine schedule indicative tonnage per time period that was produced in collaboration between ODV and InnovExplo in May 2022 and is inclusive of site costs to final Project close-out ("LOM") including waste management facilities. Refer to Chapter 16 for more context on the genesis of the mine plan and validation process.

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Assumptions and Exclusions

The following items were assumed:

 Some equipment and materials would be refurbished and re-used;

 The labour rate build-up will be based on the statutory laws governing benefits to workers that were in effect at the time of the estimate;

 Freight estimates are based on vendor supplied freight quotations or in-house data. Freight for reagents is included in the price of those commodities. Freight for steel consumables is included in the price of that material. Freight for spare parts is calculated as a percentage of equipment cost expected to be used annually;

 No contingency is assumed;

 No cost escalation (or de-escalation) is assumed;

 No costs relating to certain agreements with third parties.

The following items were specifically excluded from the operating cost estimate, unless identified by the Owner's team and included in the Owner's costs:

 Cost of financing and interest;

 Pre start-up operations and maintenance training;

 Transport and handling of doré from the plant (included in the financial analysis).

Estimate Responsibilities

The overall operating cost estimate combined inputs from a number of sources including InnovExplo, Falkirk, Golder, WSP, KCB, and BBA as summarized in Table 21-4.

Table 21-4: OPEX estimate responsibilities

Cost area

Responsible entity

Underground Mining

InnovExplo

Mineralized material transport

BBA

Processing (Mine Site Complex and QR Mill)

BBA

Tailings, waste and water management and environment

Falkirk, KCB, Golder

General and administration

BBA

 

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General Unit Rates

General rates used in the operating cost estimate are summarized in Table 21-5.

The following items were assumed for general rates:

 Propane, gas, and diesel unit prices do not consider the carbon tax, which was calculated separately along with mining taxes and corporate income taxes;

 Power unit price at Mine Site Complex in 2022 includes a voltage loss;

 Transfer of ownership of the powerline to Mine Site Complex to BC Hydro in September 2023, alleviating the voltage loss.

Table 21-5: General rate and unit cost assumptions

Parameter Unit Value
Average Daily LOM Tonnage (initial) tpd 2,000
Average Daily LOM Tonnage (after expansion) tpd 8,000
Years of operations Years 12
LOM production M tonnes 28.2
LOM gold grade Au g/t 3.40
LOM gold production M oz 2.8
BC Hydro grid power at Mine Site complex $/kWh 0.064
BC Hydro grid power at QR Mill $/kWh 0.078
Generator power $/kWh 0.35
Propane $/litre 0.66
Diesel $/litre 1.20

21.2.3. Mining

InnovExplo provided estimates for all underground mine operating costs. The total underground mine operating cost is $1,499.9M for the Project. The operating unit costs were calculated over the total mineralized material mined from development and from production, including the marginal tonnages during pre-production. The unit cost is $53.27/t mined.

Mining operating costs are mostly composed of wages, electric power, consumables, fuel and equipment maintenance. Equipment lease payments have not been included in operating costs, as they have been included as sustaining capital expenditures. All stope access development, have been allocated to operating cost.

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Table 21-6 summarizes the underground operating costs for the Project and provides a breakdown per item.

Table 21-6: Underground mining operating costs

Operating costs Total LOM
cost
Average
LOM cost
OPEX
Activity Sub-activity ($M) ($/t) (%)
Grade control Grade control - Definition drilling 42.1 1.49 2.8
Mine development Mine development 324.6 11.53 21.6
Production Stope support/preparation 31.6 1.12 2.1
Drilling & blasting 435.8 15.48 29.1
Mucking/hauling 123.8 4.40 8.3
Backfill 142.7 5.07 9.5
Services UG services 107.9 3.83 7.2
Energy 56.4 2.00 3.8
Maintenance 235.0 8.35 15.7
Total operating costs 1,499.9 53.27 100

21.2.4. Mineralized Material Transport

The cost to transport mineralized material from the Mine Site Complex in the District of Wells ("Wells") to the QR Mill, was estimated based on a quote from supplier. An average of approximately 900 tpd of mineralized material will be transported from the Mine Site Complex to the QR Mill over a distance of 111 kilometres ("km"). For the PEA, it was assumed that the mineralized material transport would be provided by a bulk transport company using 46 tonne ("t") trucks on a contracted basis. The average operating costs for mineralized material transport (truck loading, transport, dumping and administration) was calculated to be $3.85/t mined ($28.81/t transported to the QR Mill), which includes a provision for road maintenance.

Table 21-7: Material transport operating costs

Cost area LOM cost
($M)
Annual cost
($M)
Cost per tonne mined
($/t)
OPEX
(%)
Transport Mineralized Material from the Mine Site Complex to QR Mill 108.5  9.04  3.85  100 
Total 108.5 9.04 3.85 100

 

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Preliminary Economic Assessment for the Cariboo Gold Project

21.2.25. Processing

The average processing operating costs were calculated over the LOM for both the Mine Site Complex and QR Mill. The operating cost was estimated to be $37.50/t mined during the Project's initial 2,000 tpd phase and $20.80/t mined during the Project's 8,000 tpd phase resulting in a LOM cost of $24.00/t mined.

The steady-state operating costs include reagents, grinding media, plant maintenance materials, vehicle fuel, rental and maintenance, laboratory operating fees, energy (electricity, propane and diesel), and personnel required for operating both mills and the paste plant. A breakdown of the steady-state processing operating costs for both Phase 1 and 11, without contingency, is presented in Table 21-8 and Table 21-8.

Table 21-8: Phase I Mill Operating Costs

Cost area Average
Annual cost
LOM cost Cost per tonne
mined
OPEX
($M) ($M) ($/t) (%)
Contractual Crushing and Sorting 7.93 15.9 10.8 29%
Reagents 3.83 7.67 5.21 14%
Cement 0.00 0.00 0.00 0%
Maintenance, Parts and Materials 1.80 3.59 2.44 7%
Major Equipment Consumables 0.33 0.66 0.45 1%
Grinding Media 2.42 4.85 3.30 9%
Personnel and Contractors 6.61 13.2 9.00 24%
Utilities 2.93 5.86 3.98 11%
Miscellaneous 1.72 3.44 2.34 6%
Total 27.6 55.1 37.50 100%

Table 21-9: Phase II Mill Operating Costs

Cost area Average
Annual
cost
LOM
cost
Cost per
tonne
mined
OPEX
($M) ($M) ($/t) (%)
Underground Crushing and Handling 5.62 56.2 2.13 9%
Reagents 4.5 45 1.69 7%
Cement 9.9 99 3.71 16%

 


 

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Preliminary Economic Assessment for the Cariboo Gold Project


Maintenance, Parts and Materials 6.41 64.1 2.4 10%
Major Equipment Consumables 2.03 20.3 0.76 3%
Grinding Media 4.97 49.7 1.86 8%
Personnel and Contractors 13.4 134 5.03 22%
Utilities 12 120 4.48 19%
Miscellaneous 3.14 31.4 1.18 5%
Total 61.97 619.7 23.24 100%

Reagents

Reagent and grinding media consumptions were reported in Section 17.7. Budget quotes were obtained from suppliers in 2022. A factor was added to the budgetary prices to cover transportation expenses.

A summary of the average annual reagent costs is presented in Table 21-10 for both phases.

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Table 21-10: Phase I and Phase II Reagent costs

Cost area Phase 1 Phase 2
Average
annual cost
LOM cost Cost per
tonne mined
OPEX Average
annual cost
LOM cost Cost per
tonne mined
OPEX
($M) ($M) ($/t) (%) ($M) ($M) ($/t) (%)
PAX 0 0 0 0% 0.65 6.55 0.25 15%
MIBC 0 0 0 0% 0.23 2.33 0.09 5%
Flocculant 0 0 0 0% 0.29 2.86 0.11 6%
Sodium cyanide (NaCN 100%) 1.09 2.19 1.49 29% 1.16 11.6 0.44 26%
Sodium hydroxide (NaOH 50%) 0.4 0.8 0.54 10% 0.31 3.13 0.12 7%
Lime (CaO) 0.14 0.28 0.19 4% 0.23 2.27 0.08 5%
Flocculant 0.29 0.58 0.39 8% 0.06 0.58 0.02 1%
Sodium metabisulfite (Na2S2O5) 0.82 1.64 1.12 21% 0.65 6.47 0.24 14%
Copper sulfate (CuSO4.5H2O) 0.07 0.14 0.09 2% 0.05 0.55 0.02 1%
Nitric acid 0.4 0.8 0.54 10% 0.32 3.15 0.12 7%
Carbon 0.09 0.18 0.12 2% 0.07 0.7 0.03 2%
Oxygen 0.49 0.98 0.67 13% 0.39 3.86 0.14 9%
Refinery reagents 0.02 0.04 0.03 1% 0.07 0.75 0.03 2%
Antiscalant 0.03 0.05 0.03 1% 0.02 0.2 0.01 0%
Total 3.83 7.67 5.21 100% 4.50 45 1.69 100%

The average annual cost of reagents was calculated to be $4.4M, or $1.87/t mined.

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Preliminary Economic Assessment for the Cariboo Gold Project

 

Personnel and Contractors

A total of 70 workers are required for processing in Phase I, including 13 salaried staff and 57 hourly workers divided amongst management and technical services, operations, and maintenance departments.

For Phase II, a total of 120 workers are required: 22 salaried staff and 98 hourly. Of the 120 workers, 62 are associated to the Mine Site Complex and 58 to QR Mill. The list of personnel, along with the salaries and benefits, including bonuses where applicable, associated with each position was provided by ODV.

The contractor and consultant costs for processing include items such as special projects and research and development ("R&D") were add to operation and maintenance personnel cost.

The labour and contractor cost is estimated at an average cost of $12.3M per year or $5.23/t mined.

Maintenance Materials

QR Mill maintenance materials were estimated per previous operational experience and with a percentage of new equipment capital cost. Allowances were also added to cover miscellaneous expenses.

Maintenance materials for the Mine Site Complex concentrator were estimated based on the equipment capital cost per area. Allowances were added for general materials, miscellaneous mechanical, piping, electrical, and instrumentation materials.

The total cost for these items was estimated to average $5.6M per year or $2.41/t mined.

Grinding Media

The Project process flowsheet requires three different sizes of steel media for the mills. For QR Mill it was calculated based on past operational data. The consumption rates for the media at Mine Site Complex was calculated based on similar operation, whereas budgetary quotations were obtained for each type of media used. The average annual cost of media for was estimated to be $4.5M or $1.94/t mined, which represents 9% of the processing operating costs.

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Preliminary Economic Assessment for the Cariboo Gold Project

Energy

Estimate of electrical energy consumption was reported in Section 17.7, and is based on the preliminary load list. The cost of electricity was calculated based on BC Hydro average cost of 7.8 cents per kilowatt hour ("¢/kWh") for QR Mill, and an average cost of 6.4 ¢/kWh for the concentrator at the Mine Site Complex and the Bonanza Ledge Site mineral sorter.

The propane consumption (used for heating) was estimated based on the historical billing at QR Mill.

The diesel consumption for the mobile crushing and screening circuit at the Bonanza Ledge Site was estimated be a similar operation. The diesel consumption for gensets at QR Mill and Mine Site Complex were estimated based on weekly tests and 72 hours of annual power outages.

The energy costs represent approximately 21% of the total process operating costs, at an average yearly cost of $10.5M or $4.64/t mined.

Mobile Equipment and Laboratory Fees

Mobile equipment will be required at both sites for operations and maintenance. QR Mill will rent four pickup trucks and the Mine Site Complex will rent four more. Maintenance and fuel costs for other vehicles (small loader, bobcat, forklift, aerial platform, backhoe) have also been included.

Laboratory fees are estimated at $0.9M. The analysis laboratory will be sub-contracted. The samples collected include slurries from various stages of the flowsheet or the metallurgical laboratory; both high- and low-grade solution samples, carbon, bullion, and slag. Fees for round- robin are also included.

The mobile equipment and laboratory costs represent approximately 4% of the total process operating costs, at an average yearly cost of $2.2M or $0.93/t mined.

21.2.6.  Tailings, Water Treatment and Environment

The water treatment and environmental operating costs for the three sites were based on PEA level estimates provided by Golder and ODV. The annual average steady-state operating costs were determined to be $13.6M per year or $5.81/t mined.

This area includes the following operating costs:

 Labour costs (10 staff and 10 labour positions);

 Water treatment plant operations, maintenance, and consumables;

 FSTSF operating costs;

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 Environmental services group labour costs and associated expenses estimated such as:

- Recycling and waste disposal fees;

- Permitting costs;

- Equipment rental;

- Sampling and analytical fees;

- Consulting and contract services.

A breakdown of the steady-state costs, without contingency, is presented in Table 21-11.

Table 21-11: Tailings, water treatment and environment operating cost summary

Cost Area

LOM Cost
($M)

Cost per tonne
mined ($/t)

OPEX (%)

Environment Department Labour

46.5

1.65

28.4

Consumables

117.0

4.16

71.6

Total

163.5

5.81

100.0

The labour for the Environmental Department manpower includes eleven employees.

Waste management at both the Mine Site Complex and the Bonanza Ledge Site were estimated by WSP Golder using database unit rates for placement and checked by the ODV Technical Team using the updated waste schedule. Transportation of waste from the Mine Site Complex to the Bonanza Ledge Site is assumed to have been included in the mining operating costs.

Water management operating costs for both the Mine Site Complex and the Bonanza Ledge Site were estimated by WSP Golder, while a provisional cost allowance for the QR Mill water management costs was included by ODV.

Tailings placement at QR Mill operating costs were estimated by ODV based on similar internal unit rates for labour and equipment.

The water treatment operating costs for the three sites were based on PEA level estimates provided by WSP Golder. The cost estimate includes water treatment plant operations, maintenance, labour, and consumables.

Water treatment operating cost estimates are based on limited data for feed water quality and estimated yearly water volumes. Therefore, operating cost estimates are subject to revision during subsequent design phases. Operating cost estimates include an allowance for management of sludges, but do not include the cost of disposal, if applicable. The water treatment waste sludges are expected to be geochemically stable and are assumed to be suitable for on-site disposal; however, more work is recommended to refine the sludge disposal plan as the Project proceeds.

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Preliminary Economic Assessment for the Cariboo Gold Project

21.2.7. General and Administration

General and Administrative ("G&A") costs are expenses not directly related to the production of goods and encompass items not included in the mining, processing, refining, and transportation costs of the Project. These costs were developed based on the BBA's past project experience in similar sized operations.

The G&A cost area includes the following items:

 Site administration and management labour; Administration

- Insurance

- Quesnel Office rental

- Office and cleaning services

- Camp and Administration building electricity

- Municipal and school taxes

 Human Resources and Community Support

- Training

- Community and IBA commitments

- Sponsorships and association fees Information Technology

- Communication service fees

- IT equipment and supplies

 Health and safety

- Personal protective equipment and first aid kits

- Medical consultations

- Mine rescue training

 Technical Services

- Equipment and software licenses

- Specialised consultants

 Site Services

- Roads and building maintenance

- Snow clearing

- Mobile equipment operations and maintenance Camp and Food Services

- Management and maintenance

- Food supply

 Employee Bus Transport

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The labour included in the G&A includes 2 management employees, 11 administration (Accounting, IT, and Warehousing) employees, 11 employees in site services and maintenance, 3 employees in Human Resources, 10 employees in Health and Safety, and 27 employees dedicated to Technical Services (Mine Engineering and Geology). The employee total for the Overall G&A services is 64.

In general, the management and administrative staff will work 40 hours per week on day shift. Warehousing and health and safety personnel will work a 12-hour shift per day.

On an annual basis, the G&A costs are estimated to be $18M/year or approximately $216M over the LOM. The G&A cost on a per tonne mined basis is $7.67/t mined (LOM). Approximately $1.3M in G&A costs will be capitalised in 2023.

The major costs broken down by item within the G&A category are shown in Table 21-12. The greatest cost within the G&A category is labour representing approximately 35% followed by Camp and food services contract services representing approximately 27%.

Table 21-12: General administration operating costs

Item Total LOM
($M)
Average LOM
($/tonne mined)
OPEX (%)
Labour 75.7 2.69 35.1
Administration 24.1 0.86 11.1
Human Resources and Community Support 12.1 0.43 5.6
Communication and Information Technology 4.7 0.17 2.2
Health and Safety 11.7 0.42 5.4
Technical Services 5.4 0.19 2.5
Site Services 20.9 0.74 9.7
Camp and Food Services 57.9 2.06 26.8
Employee Bus Transport 3.7 0.13 1.7
Total 216.0 7.67 100

 

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Preliminary Economic Assessment for the Cariboo Gold Project

 

21.3. Site Personnel Summary - All Areas

It is anticipated that 592 employees (staff and labour) will be required at the peak of operations during Phase II. A summary of labour in all areas is shown in Table 21-13.

Table 21-13: Summary of personnel - All areas

Facility Area Role Total
General & Administration Administration & Management 13
Human resources and Community relations 3
Health and safety 10
Surface operations 11
Technical Services (mine and geology) 27
Subtotal 64
Underground Mine Staff & Supervision 32
Operations 250
Maintenance & Services 106
Subtotal 3 88
Processing Staff & Supervision 22
Operations and Maintenance 98
Subtotal 120
Tailings, Waste & Water management Staff & Supervision 10
Operations and Maintenance 10
Subtotal 20
Cariboo Gold Project Total 592

 

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Preliminary Economic Assessment for the Cariboo Gold Project

22. Economic Analysis

The economic/financial assessment of the Cariboo Gold Project (the Project") for Osisko Development Corp. ("ODV") was carried out using a discounted cash flow approach on a pre- tax and after-tax basis, based on consensus equity research long-term commodity price projections in the United States currency and cost estimates in Canadian currency. An exchange rate of USD 0.79 per CAD 1.00 was assumed to convert USD market price projections and particular components of the capital cost estimates into Canadian Dollars ("CAD"). No provision was made for the effects of inflation. Current Canadian tax regulations were applied to assess the corporate tax liabilities, while the most recent provincial regulations were applied to assess the British Columbia mining tax liabilities.

The internal rate of return ("IRR") on total investment was calculated based on 100% equity financing, even though ODV may decide in the future to finance part of the Project with debt financing. The net present value ("NPV") was calculated from the cash flow generated by the Project, using a discount rate of 5%. The simple payback period, and payback period after start of operations, are based on the undiscounted annual cash flow of the Project, are also indicated as a financial measure. Furthermore, a sensitivity analysis has been performed for the after-tax base case to assess the impact of variations in the Project capital costs, USD:CAD exchange rate, price of gold, and operating costs.

The economic analysis presented in this section contains forward-looking information with regard to the mineral resource estimates, commodity prices, exchange rates, proposed mine production plan, projected recovery rates, operating costs, construction costs, and the Project schedule. The results of the economic analysis are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those presented here. The reader is cautioned that this Preliminary Economic Assessment ("PEA") is preliminary in nature and includes the use of Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves and, as such, there is no certainty that the PEA economics will be realized.

MAY 2022

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Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

22.1. Assumptions and Basis

The economic analysis was performed using the following assumptions and basis:

 The Project Executive Schedule developed in Chapter 24, taking into consideration key Project milestones;

 Commercial production start-up is scheduled to begin in the first quarter (Q1) of 2024. The first full year of production is therefore 2024. Operations are estimated to span a period of approximately twelve years;

 The base case gold price is USD 1,750 per ounce ("USD/oz");

 The long-term price of gold was estimated on the basis of discussions with experts, consensus analyst estimates and recently-published economic studies. The forecasts used are meant to reflect the average metal price expectation over the life of the Project. No price inflation or escalation factors were taken into account. It is understood that commodity prices can be volatile and that there is the potential for deviation from the life of mine ("LOM") forecasts;

 The United States to Canadian dollar exchange rate has been assumed to be USD 0.79: CAD 1.00 over the life of mine (CAD:USD exchange rate of 1.27);

 All cost estimates are in constant Q2 2022 Canadian dollars with no inflation or escalation factors taken into account;

 All metal products are assumed sold in the same year they are produced;

 Class specific Capital Cost Allowance rates are used for the purpose of determining the allowable taxable income;

 Final rehabilitation and closure costs will start in 2035 (Year 12) and be completely spent in 2036 (Year 13);

 An overall salvage value has been estimated at 61.1 M based on 20% of the original cost of mining mobile equipment, process equipment, electrical equipment and structural steel;

 Project revenue is derived from the sale of gold doré into the international marketplace. No contractual arrangements for doré smelting or refining exist at this time.

This financial analysis was performed on both a pre-tax basis and after-tax basis. The general assumptions used for this financial model, LOM plan tonnage, and grade estimates are summarized in Table 22-1 and capital costs are outlined in Figure 22-1.

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NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

Table 22-1: Financial model parameters

Description Unit Value
Long Term Gold Price USD/oz 1,750
Exchange Rate USD:CAD 0.79
Discount Rate % 5.0
Mine Life year 12
Total Mined Mt 28.2
Gold Grade g/t 3.40
Process Overall Gold Recovery % 92.1
Underground Mining Operating Cost $/t mined 53.27
Processing (including paste backfill) Operating Cost $/t mined 24.00
Material Transport Operating Cost $/t mined 3.85
Tailings and Water Management Operating Cost $/t mined 5.81
General and Administration Operating Cost $/t mined 7.67
Capitalized Operating Costs $/t mined -0.58
Royalties % NSR 5.0
Initial Capital Cost $M 121.5
Expansion Capital Cost $M 716.1
Sustaining Capital Cost $M 527.2
Reclamation and Closure Cost $M 18.5
Salvage Value $M -61.1

 

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Preliminary Economic Assessment for the Cariboo Gold Project

Figure 22-1: Overall Cariboo Gold Project capital cost profile

22.2. Royalties

Over the life of the Project, based on the agreement in place, a 5% net smelter return ("NSR") royalty has been assumed for the Project. It is estimated that approximately $314.3 million in royalties are expected to be paid based on the base case metal prices and project assumptions.

22.3. Taxation

The taxation calculations for the Project were compiled with the assistance of ODV and their financial advisors.

At the time of the report, the Project was subject to the following tax regime:

 The Canadian Corporate Income Tax system consists of the federal income tax (modelled at a rate of 15%) and the provincial (British Columbia) income tax (modelled at a rate of 12%);

 The British Columbia Minerals Tax was modelled using a net current proceeds rate of 2% and a net revenue tax rate of 13%.

MAY 2022

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Preliminary Economic Assessment for the Cariboo Gold Project

The tax calculations are underpinned by the following key assumptions:

 The calculations are based on the tax regime as at the date of the PEA. Future changes in tax laws could impact the calculations;

 A total of $506.3M in tax attributes has been considered based on information provided by ODV;

 The Project is held 100% by a corporate entity and the after-tax analysis does not attempt to reflect any future changes in corporate structure or property ownership;

 Assumes 100% equity financing and therefore does not consider interest and financing expenses;

 BC Minerals Tax is deductible for federal and provincial income tax purposes;

 Payments projected relating to NSR royalties are allowed as a deduction for federal and provincial income tax purposes, but are added back for BC Minerals Tax purposes;

 Actual taxes payable will be affected by corporate activities, and current and future tax benefits, with respect that these activities have not been considered.

The combined effect on the Project of the two levels of taxation, including the elements described above, is an approximate cumulative effective tax rate of 33%, based on project earnings (earnings before interest and tax "EBIT"). It is anticipated, based on the Project assumptions, that ODV will pay approximately $203.1M in Canadian Corporate Income Tax, $162.5M in British Columbia Corporate Income Tax and $272.3M in British Columbia Minerals Tax over the life of the Project.

Companies operating in British Columbia are taxed based on their annual greenhouse gas emissions. Carbon taxes for Scope 1 emissions have been applied to the tonnes of CO2 equivalent ("t CO2eq") amounts of the consumed fossil fuels such as diesel, gasoline, propane, and emulsion. The carbon tax rate is $50/t CO2eq in 2022 and was assumed to escalate by $15 per year up to a maximum of $170/t CO2eq. A total of 171 kt CO2eq will be produced over the LOM costing $22.8M in carbon taxes. The carbon tax amount is applied against the gross revenue when calculating federal and BC provincial income taxes.

22.4. Financial Analysis Summary

A 5% discount rate was applied to the cash flow to derive the NPV for the Project on a pre-tax and after-tax basis. Cash flows have been discounted to 2023 under the assumption that the Project permit will be issued by the end of 2022 and major project financing would be carried out at this time. The summary of the financial evaluation for the base case of the Project is presented in Table 22-2.

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Preliminary Economic Assessment for the Cariboo Gold Project

Table 22-2: Financial analysis summary (pre-tax and after-tax)

Description Unit Base case
Net Present Value (0% disc) $M 2,002.5
Net Present Value (5% disc) $M 1,195.3
Internal Rate of Return % 26.7
Simple Payback Period Year 6.8
Payback Period (after start of operations) Year 5.8
Net Present Value (0% disc) $M 1,341.7
Net Present Value (5% disc) $M 763.8
Internal Rate of Return % 21.4
Simple Payback Period Year 7.0
Payback Period (after start of operations) Year 6.0

The pre-tax base case financial model resulted in an IRR of 26.7% and a NPV of $1,195.3M with a discount rate of 5%. The simple pre-tax payback period is 6.8 years. On an after-tax basis, the base case financial model resulted in an IRR of 21.4% and a NPV of $763.8M with a discount rate of 5%. The simple after-tax payback period is 7.0 years.

The summary of the Project discounted cash flow financial model (pre-tax and after-tax) is presented in Table 22-3.

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 Table 22-3: Summary of the Project discounted cash flow financial model

Year Unit -1 1 2 3 4 5 6 7 8 9 10 11 12 13 Total
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
Production Summary                                
Total Tonnes Mined kt 53.1 678.4 739.8 1,467.8 2,909.4 2,931.9 2,922.0 2,948.6 2,940.2 2,939.3 2,930.9 2,849.4 1,844.3 - 28,155.3
Total Tonnes Processed kt - 731.5 739.8 1,467.8 2,909.4 2,931.9 2,922.0 2,948.6 2,940.2 2,939.3 2,930.9 2,849.4 1,844.3 - 28,155.3
Head Grade Au g/t - 3.35 3.80 3.17 3.38 3.23 3.36 3.65 3.55 3.50 3.57 3.23 3.04 - 3.40
Payable Gold koz - 72.2 84.0 139.7 293.5 279.6 288.6 315.8 306.9 302.4 310.1 275.6 168.2 - 2,836.6
Revenue                                
Exchange Rate USD:CAD 0.79 0.79 0.79 0.79 0.79 0.79 0.79 0.79 0.79 0.79 0.79 0.79 0.79 0.79 0.79
Gross Revenue $M - 159.9 186.1 309.5 650.4 619.5 639.6 699.9 680.2 670.2 687.3 610.7 372.9 - 6,286.3
Operating Expenditures                                
Mining $M 15.2 55.2 68.8 88.5 147.5 148.7 148.4 148.0 147.3 146.3 149.4 142.9 93.8 - 1,499.9
Processing $M - 28.1 28.0 50.0 64.9 65.7 64.5 64.9 64.7 64.9 64.4 63.4 52.1 - 675.8
Material Transport $M - 11.0 11.0 4.7 9.3 9.5 9.6 9.7 9.6 9.6 9.5 9.1 5.9 - 108.5
Tailings, Waste & Water Management $M - 9.3 11.2 12.6 16.9 14.4 14.4 14.4 14.4 14.4 14.4 14.4 12.8 - 163.5
General and Administration $M 1.3 9.8 9.6 16.4 20.6 20.6 20.6 20.6 20.6 20.6 20.6 19.7 14.8 - 216.0
Capitalized Operating Costs $M -16.4 - - - - - - - - - - - - - -16.4
Operating Costs $M - 113.3 128.7 172.2 259.2 259.0 257.5 257.6 256.6 255.9 258.3 249.5 179.3 - 2,647.3
Royalty Payments $M - 8.0 9.3 15.5 32.5 31.0 32.0 35.0 34.0 33.5 34.4 30.5 18.6 - 314.3
Capital Expenditures                                
Initial $M 121.5 - - - - - - - - - - - - - 121.5
Expansion $M - 110.4 269.9 329.4 6.4 - - - - - - - - - 716.1
Sustaining $M - 33.2 9.2 49.2 116.8 75.8 75.2 44.0 27.0 41.1 11.9 11.8 9.9 22.3 527.2
Reclamation and Closure $M - - - - - - - - - - - - 5.0 13.5 18.5
Salvage Value $M - - - - -1.4 - - -2.0 - - - -2.0 -20.8 -35.0 -61.1
Total Capital Costs $M 121.5 143.6 279.1 378.5 121.8 75.8 75.2 42.0 27.0 41.1 11.9 9.9 -6.0 0.8 1,322.2
Changes in Working Capital $M - 4.1 0.5 1.0 1.0 0.3 - 0.3 -0.6 0.1 0.1 - 0.0 0.3 -1.2 -5.3 -
Pre-Tax Cash Flow                                
Pre-Tax Cash flow $M -121.5 -101.0 - 230.5 -255.8 237.9 254.0 274.7 364.7 362.7 339.8 382.7 321.1 179.7 -6.0 2,002.5
Cumulative Pre-Tax Cash Flow $M -121.5 -222.5 - 453.0 -708.7 -470.8 - 16.8 58.0 422.6 785.3 1,125.1 1,507.8 1,828.8 2,008.5 2,002.5  
Taxes and Duties                                
British Columbia Mining Duties $M - 0.9 1.1 2.7 7.8 7.2 7.6 19.5 51.5 48.3 54.0 45.4 25.9 0.4 272.3
Federal Corporate Income Tax $M - - - - - - 9.1 40.9 36.3 37.8 41.1 35.1 18.4 -15.6 203.2
British Columbia Corporate Income Tax $M - - - - - - 7.3 32.7 29.1 30.2 32.9 28.1 14.7 -12.5 162.5
Carbon Tax $M 0.7 1.5 1.9 1.4 1.6 1.7 1.9 2.0 2.0 2.0 2.0 2.0 1.9 - 22.8
Total Taxes and Duties $M 0.7 2.4 3.0 4.1 9.4 8.9 25.8 95.2 119.0 118.3 130.0 110.7 60.9 -27.6 660.8
After-Tax Cash Flow                                
After-Tax Cash flow $M -122.2 -103.4 -233.5 -259.8 228.5 245.1 248.9 269.5 243.7 221.5 252.7 210.4 118.8 21.6 1,341.7
Cumulative After-Tax Cash Flow $M -122.2 -225.7 -459.1 -719.0 -490.5 -245.3 3.6 273.1 516.8 738.3 990.9 1,201.3 1,320.1 1,341.7  

 

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Figure 22-2 shows the cumulative cash flows for the Project projected for the LOM on a pre-tax and after-tax basis.

Figure 22-2: Life of mine cash flow projection (cumulative, pre-tax and after-tax)

22.5. Production Costs

A summary of the Project's production costs is provided in Table 22-4. All costs are in USD. Total cash costs are calculated per ounce on a payable basis using the costs of mining, material transport, processing, tailings, waste and water treatment, on-site general and administrative expenses ("G&A"), refining and smelting, and royalties.

The LOM operating cash cost per ounce is USD 827.1/oz gold ("Au"). The LOM all-in sustaining cost ("AISC"1) per ounce is USD 961.6/oz Au derived from the total cash costs plus sustaining capital, and closure costs. The operating margin over the LOM has been estimated to be USD 788.4/oz Au based on a gold price of USD 1,750/oz.

___________________________________

1 All-in Sustaining Costs are presented as defined by the World Gold Council ("WGC") less Corporate G&A.

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  Table 22-4: Production cost summary 

Description Unit LOM
Metal Production    
Gold Moz 2.8
Costs and Royalties    
Mining USD M 1,181.0
Material Transport USD M 85.4
Processing USD M 532.1
General and Administration (G&A) USD M 170.1
Tailings and Environment USD M 128.8
Refining and Smelting USD M 14.2
Royalties USD M 247.5
Capitalized OPEX Expenditures USD M - 12.9
Total Operating Cost (after Credit) USD M 2,346.1
AISC and Profit Margins (per oz payable)    
Gold Price USD/oz 1,750
Cash Cost (Operating) USD/oz 827.1
Sustaining and Closure Costs USD M 381.6
Total Costs (Operating and Sustaining) USD M 2,727.7
AISC USD/oz 961.6
Operating Margin USD/oz 788.4

22.6. Value Drivers

Figure 22-3 presents the primary project value drivers in the form of a waterfall chart discounted at 5%. The main value drivers (over $250M) of the Project are processing recovery losses, mining operating expenses, processing operating costs, mining capital expenditures and taxes.

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 Figure 22-3: Main value drivers (discounted at 5%)

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22.7. Sensitivity Analysis

A financial sensitivity analysis was conducted on the base case after-tax cash flow NPV ($M) and IRR of the Project, using the following variables: capital costs, operating costs, USD:CAD exchange rate, price of gold, and discount rate. The after-tax results for the Project IRR and NPV ($M) based on the sensitivity analysis are summarized in Table 22-5 through Table 22-9.

Table 22-5: NPV sensitivity results (after-tax) for metal price and exchange rate variations

USD:CAD Gold Price (USD/ounce)
1,300 1,450 1,600 1,750 1,900 2,050 2,200 2,350
0.72 243.3 506.2 764.9 1,021.5 1,276.0 1,530.2 1,783.1 2,035.9
0.74 193.6 452.2 706.0 957.2 1,206.6 1,455.7 1,703.2 1,950.6
0.75 143.6 397.6 646.6 892.7 1,137.3 1,380.8 1,623.4 1,865.3
0.77 93.2 342.9 587.0 828.3 1,067.9 1,305.9 1,543.5 1,780.0
0.79 42.4 288.2 527.4 763.8 998.3 1,231.0 1,463.5 1,694.7
0.81 -17.5 232.8 467.9 699.4 928.4 1,156.1 1,383.2 1,609.4
0.83 -88.0 177.3 407.8 634.3 858.4 1,081.2 1,302.8 1,524.0

Table 22-6: IRR sensitivity results (after-tax) for metal price and exchange rate variations

USD:CAD Gold Price (USD/ounce)
1,300 1,450 1,600 1,750 1,900 2,050 2,200 2,350
0.72 10.2% 15.9% 21.4% 26.8% 32.1% 37.5% 42.7% 48.2%
0.74 9.1% 14.7% 20.1% 25.4% 30.7% 35.9% 41.1% 46.3%
0.75 8.1% 13.5% 18.9% 24.1% 29.2% 34.3% 39.4% 44.5%
0.77 7.0% 12.4% 17.6% 22.7% 27.8% 32.7% 37.7% 42.7%
0.79 5.9% 11.2% 16.3% 21.4% 26.3% 31.2% 36.1% 40.9%
0.81 4.6% 10.0% 15.1% 20.0% 24.8% 29.6% 34.4% 39.1%
0.83 3.1% 8.8% 13.8% 18.6% 23.4% 28.0% 32.7% 37.3%

 

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Table 22-7: NPV sensitivity results (after-tax) for capital (LOM) and operating costs variations

OPEX CAPEX
-30% -20% -10% 0% 10% 20% 30%
-30% 1,371.0 1,292.4 1,213.1 1,134.5 1,055.0 975.2 894.9
-20% 1,248.8 1,169.6 1,090.3 1,011.5 931.5 851.2 770.8
-10% 1,126.0 1,046.7 967.4 887.9 807.5 727.1 645.8
0% 1,003.1 923.7 843.4 763.8 683.2 601.8 520.4
10% 879.8 799.6 719.4 639.2 557.7 476.3 394.0
20% 755.8 675.4 594.4 513.7 432.0 349.4 266.8
30% 631.2 550.2 468.9 387.4 304.8 221.5 137.8

Table 22-8: IRR sensitivity results (after-tax) for capital (LOM) and operating costs variations

OPEX CAPEX
-30% -20% -10% 0% 10% 20% 30%
-30% 46.0% 39.5% 34.3% 30.0% 26.5% 23.4% 20.8%
-20% 41.7% 35.7% 31.0% 27.1% 23.8% 21.0% 18.5%
-10% 37.5% 32.1% 27.8% 24.2% 21.1% 18.5% 16.2%
0% 33.5% 28.7% 24.7% 21.4% 18.5% 16.1% 14.0%
10% 29.6% 25.2% 21.6% 18.6% 16.0% 13.7% 11.7%
20% 25.9% 21.9% 18.6% 15.8% 13.4% 11.3% 9.5%
30% 22.2% 18.6% 15.6% 13.0% 10.9% 9.0% 7.3%

Table 22-9: NPV sensitivity results (after-tax) for discount rate

  Discount rate
0% 3% 5% 8% 10%
NPV (M$) 1,341.7 961.7 763.8 529.3 405.5

The graphical representations of the financial sensitivity analysis are depicted below in Figure 22-4 for the Project's NPV and Figure 22-5 for the Project's IRR.

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The sensitivity analysis reveals that the USD:CAD exchange rate and gold price have the most significant influence on both NPV and IRR compared to the other parameters, based on the range of values evaluated. After the USD:CAD exchange rates and gold price, NPV was most impacted by changes in operating costs and then, to a lesser extent, capital costs. It should be noted that the economic viability of the Project will not be significantly negatively impacted by variations in the capital cost, within the margins of error associated with the PEA capital cost estimate.

After the USD:CAD exchange rate and gold price, the Project's IRR was most impacted by variation in capital costs and to a lesser extent by the operating costs.

Overall, the NPV and IRR of the Project are positive over most of the range of values used for the sensitivity analysis when analyzed individually.

Figure 22-4: Sensitivity of the net present value (after-tax) to financial variables

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Figure 22-5: Sensitivity of the internal rate of return (after-tax) to financial variables

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23. Adjacent Properties

There are no adjacent properties that would provide significant information relating to the Cariboo Gold Project ("the Project"). Osisko Development Corp. ("ODV") maintains a significant land position in the Cariboo Regional District ("CRD") of British Columbia ("BC"), and the District of Wells historical lode mines are located mainly within the boundaries of the Project.

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24. Other Relevant Data and Information

24.1. Project Execution Plan

24.1.1.  Introduction

The Cariboo Gold Project ("the Project") will be developed by Osisko Development Corp. ("ODV") in a two-phase approach ("CGP Phase I" and "CGP Phase II") to favour early production and reduce the financing requirement of the overall project. CGP Phase I will focus on upgrading the existing facility at the Bonanza Ledge Site and Quesnel River Mill ("QR Mill") to a 2,000 tonnes per day ("tpd") mineral sorting and leaching flowsheet respectively, followed by CGP Phase II at the Mine Site Complex in the District of Wells ("Wells") with the construction of an 8,000 tpd concentrator producing a gold flotation concentrate, which will then be transported to the QR Mill for final processing.

The Project is composed of the following three sites where development and construction activities will occur: the Mine Site Complex, the Bonanza Ledge Site, and the QR Mill.

The Project organization and execution philosophy profits from the existing facilities and experience gained with the current operation at the Bonanza Ledge Mine and QR Mill. During the construction period, it is estimated that a workforce of 330 persons will be required.

24.1.2.  Main Activities

The main activities associated with the technical development of the Project are:

 Cow Mountain Bulk Sample:

- The Cow Mountain Bulk Sample is one of the key components the Project Development Team ("PDT") is working on. The bulk sample will consist of up to 10,000 t of mineralized material over 2,303 m of development. The bulk sample will be used to support advanced metallurgical testing and further validate geological and geotechnical information to support the Project into a feasibility study ("FS").

 Feasibility study:

- The FS will incorporate the results from the bulk sample program and advance the work on the remainder of the Project areas. It will be key to focus on the preliminary technical specifications and scope of work documents to support budgetary Requests for Proposals ("RFP") for major equipment, materials and services. The 3D modelling and other engineering deliverables of key infrastructure will be essential to develop a Basis of Estimate ("BOE") which will then drive the material take-offs ("MTO") process and support the establishment of the costs of the Project. The FS will continue to optimize the overall Project design considering the concerns of the stakeholders and improving the overall economic, social, and environmental performance of the Project.

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 Execution:

- The execution stage will cover detailed engineering, procurement, and construction management. Engineering will generate technical specifications and increase the accuracy and definition of the RFPs issued during the FS for final and firm price bids from vendors. Technical and economical evaluations on firm-price quotations will be performed, and the adjudication process for equipment, material, and services contracts will be finalized. Construction Management will then, with the support of the engineering and procurement teams, proceed with the installation of the materials and equipment, under the quality standards established in the engineering documents.

The main environmental and permitting activities associated with the Project are:

 Provincial Environmental Assessment ("EA") under the new BC Environmental Assessment Act (BCEAA; [Province of BC, 2018]):

- The work will continue to advance the efforts of the EA until the EA Certificate for the 4,750 tpd proposed Project is received. This will involve continued work to address the concerns and impacts flagged by reviewers and stakeholders of the Project.

 Federal and Provincial permits, approvals, authorizations, and licences:

- The work will continue to gather information and data to optimize the design until all required permits, approvals, authorizations, and licenses have been obtained to operate the Project.

The main development and construction activities associated with the Project are:

 Bonanza Ledge Site:

- As part of the initial phase, an expansion of the existing mineral sorting concentrator facility will increase its capacity to treat 2,000 tpd run of mine ("ROM") to produce a mineral pre-concentrate that will be trucked to the QR Mill. To support the expanded processing capacity at Bonanza Ledge Site, there will be upgrades to the water management infrastructure and water treatment system, and the construction of a new waste rock storage facility ("WRSF").

 QR Mill:

- As part of the CGP Phase I, an expansion of the existing QR Mill will increase the processing capacity to 1,040 tpd. The upgraded QR Mill will be capable of processing the pre-concentrated material from the Bonanza Ledge Site mineral sorting operation and subsequently the gold flotation concentrate from the operations of the Mine Site Complex. To support the increased capacity there will be upgrades to the surface and water management infrastructures, and the construction of a filtered stack tailings storage facility ("FSTSF").

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 Mine Site Complex:

- As part of the CGP Phase II, a new Services Building will be constructed to process

8,000 tpd ROM material. The Services Building includes the concentrator, as well as the associated facilities required to support the operations on site. To support the operation, new surface and water management infrastructure will be required, as well as Worker Accommodations for the workforce. A main electrical substation and site electrical distribution will be constructed to support the operation.

 Transmission Line:

- As part of CGP Phase II, a 69 kV/138 kV transmission line from the Barlow Substation near Quesnel, BC, to the Mine Site Complex will be constructed and will include the clearing of the right of way over a distance of 69 kilometres ("km"). The transmission line will connect into the Mine Site Complex main electrical substation for transformation and distribution.

24.1.3.  Project Organization

ODV has the personnel and experience to bring the Project from exploration to production. All Project activities, including the feasibility study, detailed engineering, procurement, pre- production, and construction activities will be under the direction of the Chief Operating Officer ("COO") of ODV.

ODV will establish an Integrated Project Team ("IPT") consisting of the ODV Project Development Team ("PDT"), the Construction Management Team ("CMT"), and the Site Services Team ("SST"). The PDT is responsible for the management, engineering, procurement, environment, permitting, and financing activities of the Project. The Project design and development strategy is under the PDT's supervision. The CMT will be responsible for the execution of construction activities on site, both underground and on surface. Finally, the SST will provide services during the execution phase on site, such as managing infrastructure maintenance, lodging, logistics, and personnel travelling. The SST will leverage the experience gained from existing operational personnel to support the PDT and the CMT.

Additional support will be provided by ODV's senior management, which benefits from an experienced technical and construction team that has successfully designed and built several projects in Canada, Latin America, Africa, and Europe. The IPT will be comprised of direct employees, contractors, and consultants overseeing the successful execution of the Project.

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24.1.4.  Project Development Team

The PDT will supervise the feasibility study and will manage all aspects of the Project, including engineering, procurement and logistics, project controls, as well as overseeing the environmental assessment and permitting activities. The requirement for an early works program will be evaluated and planned during the early stages of Project development. Specialized engineering firms will be selected for each portion of the Project to assemble a strong integrated design and execution team.

The PDT is responsible for the following activities in the respective phases: 

 Feasibility study:

- Development of the Project definition to a level between 10-15%;

- General layouts, process flowsheets, and piping and instrumentation drawings;

- Detailed Work Breakdown Structure ("WBS");

- Budgetary Request for Proposals;

- Direct and Indirect costs estimates;

- Project execution plan.

 Detailed Engineering

- Management of engineering activities for all project components Procurement and Logistics

- RFPs for equipment and material;

- Purchasing and contracting;

 Project Controls and Execution

- Cost Control;

- Scheduling and establishment of critical paths;

- Earned Value Management for Project performance assessment. Permitting:

- Current Operations;

- Bulk Sample;

- Early Works;

- Project permits.

 Compliance:

- Integration to Operations;

- Reporting.

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 Environmental Assessment:

- Application Development;

- Government Relations;

- Reception of EA Certificate;

- Condition Management.

24.1.5.  Construction Management Team

In the feasibility study stage of the Project, the CMT will contribute to the Project design with constructability reviews. The CMT will be responsible for the following services:

 Constructability reviews;

 Site supervision of construction activities;

 Reporting;

 Health, safety, and environment ("HSE");

 Contract administration.

It is recognized that an effective health and safety program during the Project is a necessity. The success of the Construction Safety Program is contingent upon its enforcement at all stages of the Project, including design, construction planning, construction execution, and start-up and commissioning. The CMT will work closely with each group to ensure proper implementation and functional results.

The CMT will also follow ODV's procedures and work methods to ensure the protection of the environment. Furthermore, the CMT will work closely with each department of the operations group to ensure proper installation and functional results. During the construction phase, personnel from operations will be integrated into the construction team as coordinators and supervisors.

24.1.6.  Site Services Team

The current operations group at the Bonanza Ledge Mine and QR Mill will support the CMT for the following services during the construction phase:

 Staff payroll;

 Accounting support;

 IT support;

 Site security;

 Integration of upgrade to QR Mill;

 Public relations;

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 Environmental and permitting;

 Medical and first aid;

 Site Maintenance;

 Site logistics.

24.2. Project Execution Schedule

The preliminary Project execution plan is developed to a PEA level and therefore conceptual in nature. The execution plan and schedule will be further developed and detailed during the next stages of Project development. The preliminary Project execution schedule, developed in this PEA and described herein, covers the period from the end of the PEA (Q2 2022) up to the achievement of expanded operations at 8,000 tpd (Q1 2027), pending permitting.

Major Project milestones for the Project activities are shown in Table 24-1.

Table 24-1: Project Key Milestones (preliminary)

Activity Date
Complete revised PEA study Q2 2022
Collect bulk sample Q2 2022
The Project Environmental Assessment Certificate ("EAC") for 4,750 tpd application and reception of certificate Q4 2022
Start of dismantling activities as part of Care and Maintenance for Bonanza Ledge 3 Q4 2022
Start FS and Execution stage work (parallel activities) Q4 2022
Start of Major Construction at QR Mill Q1 2023
Transmission Line License of Occupation Q3 2023
Receive permits for the 4,750 tpd Project Q3 2023
Island Mountain Portal Construction & Development Q3 2023
Early Works at Mine Site Complex Q1 2024
Commissioning of QR Mill Q1 2024
Start of Transmission Line Clearing and Construction Q1 2024
Start of Major Construction at Mine Site Complex Q1 2025
CGP Phase I 2,000 tpd achieved Q4 2024
Commissioning of Mine Site Complex Q3 2026
CGP Phase II 8,000 tpd achieved (pending permit amendment) Q1 2027

 

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25. Interpretation and Conclusions

25.1. Data Verification and Mineral Resources

The Cariboo Gold Project ("the Project") combines the deposits of three contiguous mountains separated by valleys: Cow Mountain (Cow and Valley), Island Mountain (Shaft and Mosquito) and Barkerville Mountain (Bonanza Ledge, BC Vein, KL, and Lowhee). The qualified professionals ("QP") consider the 2022 Mineral Resource Estimate ("2022 MRE") to be reliable, thorough, based on quality data, reasonable hypotheses and parameters.

The following conclusions are based on the QPs detailed review of all pertinent information and the 2022 MRE results:

 The results demonstrate the geological and grade continuities for all eight gold deposits in the Cow-Island-Barkerville Mountain Corridor.

 In a potential underground scenario, the Cariboo Gold Project contains an estimated Measured Resource of 8,000 ounces of gold, and Indicated Resource of 3,463,000 ounces, and an Inferred Resource of 1,621,000 ounces.

 The resource estimates for the Mosquito, Shaft, Valley, Cow, and Lowhee deposits were updated using the 2021 drill results.

 The resource estimates for the BC Vein and KL deposits were not drilled in 2021, but the search ellipse and search distances were altered to match the other deposits. Also, the BC Vein deposit has been depleted since the 2020 MRE.

 No change is reported for the Bonanza Ledge deposits.

 To report the 2022 MRE for the Project, conceptual mining shapes were used as constraints to demonstrate that the "reasonable prospects for eventual economic extraction" criteria is met.

 Additional diamond drilling on multiple zones would likely increase the Inferred Resources and upgrade some of the Inferred Resources to Indicated Resources.

25.2. Mineral Processing and Metallurgical Testing

Former testwork performed during the "NI 43-101 Technical Report, Preliminary Economic Assessment of the Cariboo Gold Project, Effective date of August 18, 2019" (Morgan et al, 2019), was considered for the process design. Further testwork was completed in support of this Study with an effective date of April 25, 2022. These testworks consisted of an investigation into the amenability of mineral sorting to pre-concentrate the run of mine ("ROM") prior to milling, chemical characterization, a preliminary evaluation of comminution characteristics, flotation and leaching tests, cyanide destruction testing as well as preliminary thickening and rheology tests.

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The selected flowsheet for processing material from the deposits includes mineral sorting, grinding, flotation and leaching. The process at the Mine Site Complex produces a pre-concentrate consisting of mineral sorting concentrate in Phase I and in Phase II mineral sorting and flotation concentrate both Phases concentrates are transported to the QR Mill for further milling and leaching.

The average metallurgical recovery per site are reported in Table 25-1. Based on the testwork results and the proposed mining plan at the time, the overall projected Au recovery is 92.1%. The annual recovery projections are expected to differ from the average testwork results according to the final mine proportions of mineralized material zones.

Table 25-1: Average gold recovery and process step

Process Step Average Au Stage
Recovery (%)
Bonanza Site 97.0
Mine Site Complex 95.6
QR Mill 95.4
Overall Au Recovery 92.1

25.3. Mining Methods

The Project is planned to begin production at 2,000 tonnes per day ("tpd") in 2024 and ramp up in 2027 to produce approximately 8,000 tpd of mineralized material from narrow vein gold mining utilizing a longitudinal retreat long hole extraction method at 30 m sublevel spacing and using cemented rockfill ("CRF") and pastefill backfill. The property has a history of active mining between 1877-1969 resulting in legacy excavations and potentially difficult ground conditions locally. The Project design encompasses a 4,400 m strike length and an average vertical extent of 660 m (depth from surface highly variable due to the terrain) culminating in total scheduled lateral development of 240 km. Total inventory of potentially mineable mineralized material has been estimated at 28.2 Mt @ 3.4 g/t Au. The mineable inventory exists within 182 discrete mineralized lenses spread across five zones, each requiring development access to accommodate the longitudinal extraction method. The Project mine layout demonstrates a development intensive stope access requirement and therefore has a high development meter per tonne of mineralized material ratio.

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These factors may pose a challenge to successful implementation of the mine plan given the restrictive geotechnical parameters and intrinsically lower productivities of the mining method. However, through diligent planning and adherence to proper work procedures, sufficient active headings and stoping areas should meet daily production requirements. Furthermore, the use of innovative technologies and techniques may improve productivity. One such example would be to extend the use of a roadheader. The roadheader mechanically excavates lateral development, with lower wear in poor ground conditions, and is anticipated to have a higher monthly advance rate compared to traditional jumbo advance rates as stated by solicited contractors. A second example is the inclusion of automated truck hauling and mucking between shifts to achieve higher productivities per calendar day.

25.4. Environmental Studies

The environmental baseline work completed to date is sufficient to support a PEA. Further work is underway, as required, to support the Environmental Assessment process and permit applications for the Project.

25.5. Infrastructure

The information and assumptions used in the design of the Mine Site Complex infrastructure are sufficient to support a PEA. Further work is underway and recommended to support subsequent design phases.

25.6. Capital and Operating Costs

The total capital costs (initial, expansion and sustaining) for the Project were estimated at $1,365 million ("M"). The initial capital costs were estimated at $121.5M. Expansion capital costs were estimated at $716.1M. Sustaining capital costs were estimated at $527.2M. Closure costs were evaluated at $18.5M and salvage value at $61.1M.

The overall capital cost estimate developed in this study meets the AACE class 4 requirements and has an accuracy range of -30% and +30%. Items such as sales taxes, land acquisition, permitting, licensing, feasibility studies and financing costs are not included in the cost estimate.

The Project capital cost summary is outlined in Table 25-2.

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Table 25-2: Project capital cost summary

Area Cost Area Description Initial capital
cost ($M)
Expansion
capital cost ($M)
Sustaining
capital cost ($M)
Total capital
cost ($M)
000 Mobile Equipment (non- mining) 3.2 1.8 5.6 10.6
200 Underground Mine 16.2 114.9 375.9 507.0
300 Water & Waste Management 2.6 88.6 9.9 101.1
400 Electrical & Communication 13.1 57.4 67.0 137.5
500 Surface Infrastructure 3.8 53.3 60.6 117.7
500 Mine Surface Infrastructure 2.1 2.5 5.7 10.4
600 Process Plant - Wells 1.5 189.1 - 190.6
600 Process Plant - QR Mill 37.6 17.1 2.4 57.0
700 Construction Indirect costs 20.8 66.1 0 86.9
800 Owner's Costs 3.7 27.2 0.1 31.0
999 Contingency 0.5 98.1 - 98.7
- Capitalized Operating Costs 16.4 - - 16.4
  Total 121.5 716.1 527.2 1,364.8
  Site Reclamation and Closure - - 18.5 18.5
  Salvage Value - - -61.1 -61.1
  Total - Forecast to Spend 121.5 716.1 484.6 1,322.2

The average operating cost over the 12-year mine life is estimated to be $94.0/tonne mined. Table 25-3 presents the breakdown of the projected per-tonne mined operating costs for the Cariboo Gold Project. Mining costs are presented inclusive of costs related to backfilling, including paste backfilling. Processing costs are presented inclusive of costs related to underground crushing and subsequent handling of ore during Phase II of the Project, as well as the costs related to mineral sorting for both phases of the Project.

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Table 25-3: Project operating costs

Area Cost area description LOM
($M)
Annual
average cost
($M)
Average LOM
($/tonne
mined)
Average
LOM
($/oz)
OPEX
(%)
000 General and administration 216.0 18.0 7.7 76.2 8.2
000 Mineralized material transport 108.5 9.0 3.9 38.2 4.1
200 Underground mining 1,499.9 125.0 53.3 528.8 56.7
600 Processing (Mine Site Complex and QR Mill) 675.8 56.3 24.0 238.2 25.5
800 Tailings, water treatment and environment 163.5 13.6 5.8 57.6 6.2
  Capitalized Operating Costs -16.4 -1.4 -0.6 -5.8 -0.6
  Total 2,647.3 220.6 94.0 933.3 100

25.7. Indicative Economic Results

The financial analysis performed as part of this revised PEA using the base case assumptions results in an after-tax NPV 5% of $763.8 M and an internal rate of return of 21.4% (base case exchange rate of 0.79 CAD for 1.00 USD). The cumulative cash flow for the Project (after-tax) is $1,342 M and the payback period after start of operations is 6.0 years over the planned mine life of 12 years.

25.8. Project Risks and Opportunities

As with most mining projects, there are risks that could affect the economic viability of the Project. Many of these risks are based on a lack of detailed knowledge and can be managed as more sampling, testing, design, and engineering are conducted at the next study stages. Table 25-4 identifies what are currently deemed to be the most significant internal project risks, potential impacts, and possible mitigation approaches that could affect the technical feasibility, and economic outcome of the Project.

External risks are, to a certain extent, beyond the control of the Project proponents and are much more difficult to anticipate and mitigate, although, in many instances, some risk reduction can be achieved. External risks are things such as the political situation in the Project's region, metal prices, exchange rates and government legislation. These external risks are generally applicable to all mining projects. Negative variance to these items from the assumptions made in the economic model would reduce the profitability of the mine and the mineral resource estimates.

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There are significant opportunities that could improve the economics, timing, and/or permitting potential of the Project. The major opportunities that have been identified at this time are summarized in Table 25-5 excluding those typical to all mining projects, such as changes in metal prices, exchange rates, etc. Further information and assessments are needed before these opportunities should be included in the Project economics.

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Table 25-4: Project risks (Preliminary risk assessment)

Area Risk Description and Potential Impact Mitigation Approach
Geology and
Mineral
Resources

1. Potential lack of geological continuity of the resource due to a wide drill spacing in some areas.

1. Continue to use a multi-capping procedure approach until an underground access is developed into the mine zone. Continue infill drilling to upgrade a larger proportion of the mineral inventory to indicated and measured resources.

Underground
Mine

1. Difficulty in attracting experienced professionals – The ability to attract and retain competent, experienced professionals is a key success factor.

2. Paste water bleed is unusual and impact the stability of the paste, the pumping and the distribution network.

3. Development and mining near old workings may conduct to unanticipated void, water inflow or saturated backfill

4. Roadheader's cost and viability.

5. High daily production rate from a narrow vein gold mine; potential for issues related to production capacity from each zone due to: geotechnical issues, interaction of equipment in each zone, any slowdown in mining cycle time (related to dewatering, backfill placement/curing, lead time for dewatering and materials handling).

6. Ground conditions are worse than anticipated based on geotechnical model. This could impact development and stoping operations.

7. Dewatering of the underground will result in formation of downward hydraulic gradients and the potential for existing contamination in the near surface aquifers to migrate into the underlying aquifers.

1. The early search for professionals will help identify and attract critical people. It may be necessary to provide accommodation for key people (not included in project costs). Test mining and processing is planned to restart in 2021 at BC Vein, which, would provide a platform for training and attracting qualified personnel.

2. The network piping design should consider a higher velocity to avoid water bleed.

3. Review old mine plans, probe drilling for open voids, water level and saturated backfill in front of development heading. Monitor water level while dewatering. Add proper contingency in dewatering system.

4. Validate and test Road Header performance on Cow bulk sample.

5. Large amount of optionality from mining stopes, development must stay ahead of production.

6. Additional geotechnical data will be collected during underground development including; geotechnical mapping and underground geotechnical core drilling.

7. Monitor groundwater level and quality as the mine is developed and the dewatering advanced.

 

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Area Risk Description and Potential Impact Mitigation Approach
  8. The transient changes in groundwater inflow and groundwater flow conditions has not been predicted through steady-state simulations indicate flow likely similar. 

8.  Complete transient groundwater model simulation of the mine plan.

Mine Surface
Infrastructure

1. Bedrock may not be near the surface beneath the overburden layer on Cow Mountain and Island Mountain, thus causing additional work for the ventilation raises connection at surface.

1. Include the ventilation raise locations in the next phase of surface geotechnical investigation and adjust locations if required.
Electrical &
Communication

1. Electrical loads are based on capacity of underground and surface mechanical equipment. Changes to mechanical equipment may require changes to electrical equipment design

2. Transmission line construction delays due to BC Hydro at the Barlow Substation, MOTI, environmental issues or agreements with land owners in certain areas, etc.

3. Transmission line engineering delay due to lack of information (environment and social studies, LiDAR, geotechnical study, etc.).

4. Incertitude in Mine Substation technical parameter: Possible requirement for compensation. Could require additional cost.

1. Complete Mine Site area electrical system design including connection and distribution.

2. Coordination with BC Hydro and MOTI. Complete the environmental assessment and be proactive in reaching
agreements with land owners along the transmission line corridor.

3. Complete these studies in 2022.

4. Some costs from the new BCH Mine Site substation might be transferred for this asset if required.

Site infrastructure

1. Final potable water supply location to be confirmed and permitted.

2. Mine Site Complex Camp Access Road intersection at Highway 26 requires MOTI to approve location. A change in location will change road length and Willow River bridge location.

3. Willow River Bridge foundation – abutment foundations consist of weak soils

1. Complete investigations to select final location and complete permit application.

2. Highway access permit application to be initiated to
provide confirmation of intersection location and bridge foundation.

3. Consider bridge foundation using pilings.


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4. Site clearing and levelling may encounter historic contamination and will require removal of historic structures including headframe, tanks and concrete foundation material.

5. Surface water quality – Mine Site Complex area foundation materials include historic waste rock and mill tailings and known groundwater contamination from metal leaching and upwelling of water in the historical tailings area. Additional piling of waste rock and construction may disturb historic materials and contribute to further groundwater contamination

6. Foundations for heavy structures or large rotating equipment may require deep foundation or ground improvement to support loads due to compact foundation materials.

7. Access road will follow existing roads from Mine Site Complex to Bonanza Ledge using upgraded roads. Road design standard to be determined according to waste rock haul design requirements.

8. Inability to use cut material at the Mine Site Complex or the construction of civil infrastructure.

4. Artesian conditions encountered while executing geotechnical drilling on the north site of Willow River. Strategy to be developed to investigate this area without environmental issues.

5. Assess likely areas of contamination and existing structures and establish a plan to: Mitigate upwelling water in the historic tailings area. Mitigate disturbance of contamination or dispose or remediate disturbed contaminants Dismantle structural elements and disposal of materials.

6. The BFA will be levelled, and a geomembrane placed to isolate new work from historical waste below and provide hydraulic cut-off mitigating infiltration of surface water to surrounding groundwater. The geomembrane will extend to the limits of the surface water management pond. Similarly, the contact water collection ditches and sumps will be lined with a low permeability geomembrane.

7. Assess condition of existing access road as part of subsequent geotechnical site assessment and determine upgrades to road arrangement and drainage. Also perform road trade-off to determine best routing.

8. Further define geochemical characterization of the Mine Site Complex materials.

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Area Risk Description and Potential Impact Mitigation Approach
Mineral
Processing and
Metallurgy

1. Mineral sorting recoveries are based on limited testwork – Recovery might be lower than what is currently being assumed.

2. Impact of mineralized material dilution on mineral sorting recovery is unknown.

3. Percentage of fines from mined mineralized material is estimated based on limited samples. Lower percentage of fines could lead to a higher crushing and mineral sorting and subsequent equipment throughput requirement.

4. Limited testwork.

5. Metallurgical recoveries are based on fixed mineralized material zone blends and amount of gold in the tested fines. Recovery could be lower than what is currently being assumed.

1. Conduct additional mineral sorting tests.

2. Perform sorting tests with and without dilution to determine impact on recovery.

3. Perform a particle size distribution on a representative sample of chosen mining method.

4. Perform more variability testwork on the different zones.

5. Conduct additional metallurgical testwork to identify the response to feed variations.

Concentrator and
QR Mill

General

1. Equipent sizing is incorrect due to lack of information, resulting in either higher than required capital costs or inability to achieve design throughput.

2. Freeze/thaw cycle will affect material handling between sites, and for filtered tailings material.

3. Dust generation in mineral sorting areas.

Bonanza Ledge Site

4. Variation in mineral sorter mass pull resulting in either excess waste to send underground, or QR Mill circuit undersized resulting in poor gold recoveries.

General

1. Perform additional testwork.

2. Design transfer points and truck bins to reduce freezing in those areas, develop operational strategies to reduce the time material sits in transfer points, standard operating practices to keep material handling to help equipment clean, and use specialized reagents reduce clumping/freezing.

3. Use proper PPE and emphasis on cleaning.

Bonanza Ledge Site

4. Perform additional mineral sorter testwork.


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Area Risk Description and Potential Impact Mitigation Approach
 

QR Mill Site

5. Inconsistent feed to QR Mill based on transportation challenges from the Mine Site Complex.

6. In case of filter press failure in the tailings dewatering circuit, no alternatives are available for disposing of the residues in the tailings facility, which will cause a
shutdown at the QR Mill. 

Mine Site Complex

7. A variation of the flotation circuit’s mass pull will have an
impact on QR Mill and the backfill plant.

8. The Project does not have plans for a tailings area at the Mine Site Complex. The production of backfill paste is the only tailings disposal method. Should a failure happen at the backfill plant, the concentrator will shut down.

9. Shutdown process plant due to inability to place backfill underground due to mining challenges.

10. Technologies employed in the vertical conveyor are less common than that of horizontal conveyors. This could cause operational issues due to personnel’s lack of training and additional maintenance.

11. Moist air from underground coming into the building from the vertical conveyor creating material handling challenges and poor mineral sorter performance.

QR Mill Site

5. A 5-day storage capacity to stockpile concentrate to stabilize feed rate was accounted for in the cost estimates.

6. The size of the filter feed tank allows for brief production halts, which can be used for planning shutdowns for maintenance and care of equipment. 

Mine Site Complex

7. Ensure that a mix of the mineralized material is done underground to respect the optimal proportions for mineral sorter feed and flotation mass pull.

8. The filter feed tank shall be used at 60% of its capacity, allowing the accumulation of 2 hours of production in case of equipment failure. A preventive maintenance program shall be put in place and planned shutdowns shall be coordinated in between the Mine Site concentrator and the paste plant.

9. Eight hours of surge capacity in the tailings circuit.

10. Benchmark from companies using this technology, visits and discussion with operators. Training program for operators and maintenance crew.

11. Design proper seals to reduce air flow from/to U/G from inside the building.


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Area Risk Description and Potential Impact Mitigation Approach
Geochemistry
and Water 
Quality
Predictions

Mine Site Complex

1. Underground mine water quality was represented by groundwater samples collected from deep mine workings prior to 2020. The underground mine is not part of the Mine Site Complex water quality model.

QR Mill Site

1. The QR Mill water quality model prediction is based on laboratory kinetic testing results from a small sample of filtered tailings which may not represent actual tailings properties and field condition. This could lead to under-estimation of treatment influent water quality and higher treatment cost.

2. The QR Mill effluent water quality is based on one testwork sample. This one sample does not consider reagent usage and may not represent the actual variability in the mill effluent water quality. This could lead to under-estimation of treatment influent water quality and higher treatment cost.

Mine Site Complex

1. Sampling of deep wells workings water quality should be included as part of future exploration drilling programs. In addition, geochemical testing is underway to refine water quality model inputs for the underground mine (e.g., cemented mine backfill). The Mine Site water quality model will be updated to include the underground mine.

QR Mill Site

1. Implement laboratory testing, field leach barrel or field pad testing for the filtered tailings for additional geochemical characterization to refine source term prediction.

2. Improve programming and linkage of the mill components within the water quality model so that water treatment design basis can be refined.

Water Treatment

General

1. Changes in modelling predictions for flow or water quality to the treatment systems, may result in a change to the treatment processes and associated costs.

General

1. Perform sensitivity analysis in the next phase of the Project to assess impacts of changes in water quality and/or flow on the designs. Ongoing coordination with the water quality and water balance modelling teams.

2. Confirm the treatment limits in the next phase of the Project.


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2. Changes in the proposed treatment limits (regulators and/or further changes/studies on the receiving environment) may result in a change to the treatment processes and associated costs. 
 

 
 

Mine Site Complex

3. Changes in the mine plan/Project staging may result in a change to the treatment processes and associated costs.

4. Water treatment costs for Mine Site Complex have been based on the treatment processes currently described in the Environmental Assessment (“EA”), with the addition of removal of nitrogen species associated with blasting. Concentrations of nitrogen species were predicted following the EA, using an explosive usage rate for the 6,000 tpd mine plan. These predictions were scaled up to the 8,000 tpd mine plan for the PEA.
 

Mine Site Complex

3. Confirm the mine plan/project staging in the next phase of the Project.

4. Confirm the predicted influent water quality at Mine Site Complex in the next phase of the Project to understand if removal of any other secondary constituents is required or if any parts of the process can be simplified with further Project definition.

 

QR Mill Site

5. Water treatment costs for QR Mill have been based on the treatment processes currently described in the EA.

QR Mill Site

5. Confirm the predicted influent water quality at the QR Mill in the next phase of the Project to understand if removal of any other secondary constituents is required or if any parts of the process can be simplified with further Project definition.
 

Mineralized 
Material, Waste, 
and Water 
Management

Mine Site Complex

1. Geochemical testing of waste rock is not complete. Assumed geochemical parameters may not be representative.

2. Existing contact diversion ditches at Bonanza Ledge may require extensive upgrades, leading to additional CAPEX

Mine Site Complex

1. All waste rock storage facilities have been planned with  geomembrane liners. All water coming into contact with waste rock piles is assumed to require treatment before discharge to the environment.

2. A site inspection will be done to assess the level of upgrade needed and adjust CAPEX as required for the Feasibility design.


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3. Water storage infrastructure at Bonanza Ledge is required south of the proposed waste rock storage facility. Pond location and concept will need refinement and may trigger substantial environmental impact assessment on the Stouts Gulch watercourse/watershed, leading to delay in the permitting process.

4. Risk of dewatering of Mine site historic workings could change with updates to the mine plan and additional investigative work.

QR Mill site

5. Existing non-contact and contact ditches at QR Mill site may require upgrades for the Project and at closure.  
 

3. Refinement of the Bonanza Ledge south pond sizing, concept and location is underway and the impact assessment specific to this infrastructure will be conducted without delay.

4. As the mine plan should be updated, the dewatering plan be adjusted after an update groundwater flow predictions in the next phase of the Project.

QR Mill site

5. A site inspection will be done to assess the level of upgrade needed and adjust CAPEX as required for the Feasibility design.

Tailings Management Facility (TMF)

1. Covering the FSTSF and Existing TSF tailings with temporary liner to minimize tailings infiltration and limit runoff from contacting the tailings is not a proven mitigation measure. Failure of this mitigation method could lead to more water quality exceedances and higher water treatment cost.

2. There is currently limited contingency storage if the WTS is unable to operate or meet discharge criteria.

3. Once the TSF pond is dewatered, the existing tailings surface could vary from soft and non-trafficable to competent. The tailings surface will need to support liner installation and placement of filtered tailings.

4. Achieving adequate compaction during storm events may be operationally difficult, particularly in snowstorms when snow must be removed from the placement surface before tailings are placed.

1. Conduct options analysis for liner to make selected product meets requirements (such as resistance to UV, heat and/or acidic conditions), install the FSTSF Ephemeral Pond liner according to typical procedures, release small amounts of treated effluent water during low-flow periods, pump seepage water from the NSCP and groundwater interception wells to the MZP for treatment, and conduct a liner field trial to simulate the covering and water management for a representative active placement area.

2. Consider sizing the plant larger to increase water management flexibility, consider additional contingency storage locations such as an enlarged SSCP, maintain pumping system redundancy for the NSCP and FSTSF, develop a Trigger Action Response plan for in-pit treatment, maintain a supply of reagents to allow maximum treatment, and automate pumping and treatment systems.


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Area Risk Description and Potential Impact Mitigation Approach
 

 

3. Conduct a constructability review for the initial years of the filtered tailings placement. Conduct a trial on the existing tailings.

4. Provide covered storage for filtered tailings at QR Mill for periods of adverse weather when placement to specification is operationally difficult to achieve.
 

Construction 
(Costs and
Schedule)

1. Proposed mega projects in BC (LNG facilities, Pipeline construction) may restrict construction labour and camp module availability.

2. Supply chain challenges due the COVID pandemic could impact sourcing schedule and increase material costs due to the inflationary environment
 

1. Keep informed of mega projects in BC and re-assess risk.

2. Secure long lead items and bulk materials ahead of schedule to keep them out of the Project’s critical path

Environmental, 
Permitting and 
Social License

1. The most significant potential risks are permit acquisition and changes in regulatory requirements.

2. Permitting delays on increase to 8,000 tpd could delay start date of increased production.

1. Proactive and continuing engagement with regulators, Indigenous nations, and local stakeholders

2. Proactive and continuing engagement with regulators, Indigenous nations, and local stakeholders. Continued planning for permitting processes
 

Rehabilitation
and Closure

1. Closure of Mine Site, Bonanza Ledge and QR Mill area may require grading of laydown area, adjustments to surface water management infrastructure, and capping of Waste Rock Storage Facility depending on geochemistry and water management planning.

2. Reflooding of the underground at closure may alter the quality of groundwater, including the discharge at historical openings in the Valley and Mosquito Creek area, discharge of water noted in the historical tailings area, and discharge to the overburden aquifers in the Wells Valley. Discharge to the valley may alter groundwater quality in the Wells aquifer which is used by the community of Wells for drinking water. Mitigations expected to be required, such as alternative drinking water supply for the community and or implementation of a hydraulic barrier to protect the drinking water well.

1. Design for closure concept was adopted for all waste and tailings management areas and have been incorporated in the reviewed Reclamation and Closure Plans for all sites. A water balance/water quality model has been developed and will be refined for permitting to appropriately assess closure concepts and their estimated efficiency.

2. Mitigations expected to be required, such as alternative drinking water supply for the community and or implementation of a hydraulic barrier to protect the drinking water well.


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Table 25-5: Project opportunities

Area Opportunity Explanation Benefit
Geology and
Mineral
Resources

1. Surface definition diamond drilling - Potential to upgrade inferred resources to the indicated category.

2. Surface exploration drilling - Potential to identify additional inferred resources.

1. Adding indicated resources increases the economic value of the mining project.

 Adding inferred resources increases the economic value of the mining project.

Underground
Mine

1. Utilization of cut-and-fill for adverse ground.

2. Strategic placement of low-grade pillars to forego backfill.

1. Ability to recover mineralized material in adverse ground conditions not included in actual mine plan.

2. Reduction of binder usage and reduction of delays caused by cure times. Higher mineralized material grade recuperation.

Geotechnical
and
Hydrogeology

1. When geotechnical data is collected during development ground conditions and stope performance could be better than anticipated.

1. Decreased support costs for the development, increased strike lengths in the stopes and potentially decreased unplanned dilution in the stopes.
Mine Site
Infrastructure

1. Bulk Fill Area – assess foundation conditions, arrangement and capacity.

2. Surface water quality at Bonanza Ledge – isolate toe of the Waste Rock Storage Facility from water pond so that piled rock is not saturated or exposed to fluctuating water levels.

1. Improve confidence on arrangement and costs.

2. Mitigate metal leaching and acid rock drainage from piled rock to improve surface water runoff quality and reduce effort for treatment prior to disposal beyond the Mine Site area boundary.

Mineral
Processing and
Metallurgy

1. Perform a bulk sample on zones other than Cow.

2. Perform additional testwork to support more advanced engineering studies.

1. A bulk sample testwork will allow to have a better understanding of the fine generation from the mining method and perform mineral sorter on larger scale sample.

2. Gain better understanding of parameters affecting equipment sizing and select the correct sized equipment.


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Area Opportunity Explanation Benefit
Concentrator and 
QR Mill

1. Perform additional testwork on mineral sorter at the Mine Site Complex to optimize recovery (grinding and leaching)

2. Spend additional time to use existing mill building space for QR Mill upgrade
 

1. Delay capital in Phase II by delaying requirement for flotation

2. Reduce CAPEX at QR Mill

Water Treatment

1. Progress the high-level trade-off for the installation of a pipeline from Bonanza Ledge to Mine Site Complex vs. treat and discharge to environment at Bonanza Ledge.

2. Further analysis of the modelling predictions to identify efficiencies and simplifications in the selected treatment
processes

3. Further analysis of the modelling predictions to identify mitigation measures at source

4. Seek opportunities for staged installation of the treatment processes
 

1. Lower CAPEX and OPEX. Reduction in environmental risks of a potential pipeline failure. Reduction in hydrologic impact to the watercourses flowing from BL.

2. Lower CAPEX and OPEX. Improve treatment efficiency.

3. Lower CAPEX and OPEX.

4. Lower CAPEX and OPEX.

Mineralized
Material, Waste,
and Water
Management

1. Continue geochemical characterization of waste rock. Portions of the waste rock may be geochemically suitable for Mine Site Complex mass fill. Geomembrane quantities may also be reduced.

2. For this PEA CAPEX estimate, storage capacity south of Bonanza Ledge waste rock storage facility has been assumed to be achieved through two ponds built at different moment of the LOM (sustaining CAPEX), assuming fully excavated ponds. The storage concept will be refined to propose, if possible, a more cost effective solution, using for example a mix of excavation and berm/dyke, the existing Bonanza Ledge pit or storage underground using the portal.

1. Reduced CAPEX and improvements to construction logistics and schedule.

2. Reduced CAPEX and improvements to construction logistics, schedule and permitting.

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Area Opportunity Explanation Benefit
Tailings
Management
Facility (TMF)
1. The ultimate configuration of the FSTSF could be optimized to simplify the post-closure water management strategy. 1. Reduced post-closure maintenance costs.
   
Construction
(Costs and
Schedule)
1. Staged construction of the FSTSF is part of the concept and will be developed during the Engineering Study. 1. Adjusted construction schedule and optimize water management for operating cost savings.
   
Environmental,
Permitting and
Social License
1. This aspect of the Project is under consideration. EA study is underway and is accompanied by regular public consultations 1. Maintain community support and relationship, maintain good communication with regulators and improve project for receiving permits on time and social license to operate.
   
Rehabilitation
and Closure
1. Staged construction of the FSTSF will be incorporated with progressive closure.

1. Reduced Closure Costs at the end of the operation, and improved construction schedule.
2. Progressive reclamation of surfaces that are not active to limit areas and duration of periods during which contact water runoff needs to be managed. 2. Reduced OPEX and closure costs at the end of the operation.

 

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 26. Recommendations

This report was prepared and compiled by BBA Engineering Ltd. ("BBA") at the request of Osisko Development Corp. ("ODV"), with the support of experienced and competent independent consultants using accepted engineering methodologies and standards. It provides a summary of the results and findings from each major area of investigation including:

 Exploration;

 Geological modelling;

 Mineral resource;

 Mine design;

 Metallurgy;

 Process design;

 Infrastructure;

 Environmental management;

 Tailings and water management;

 Capital and operating costs;

 Economic analysis.

The level of investigation for each of these areas is consistent with, or surpassing, the level expected of a Preliminary Economic Analysis ("PEA").

The mutual conclusion of the Qualified Persons ("QPs") is that the Cariboo Gold Project ("the Project"), as summarized in this PEA, contains adequate detail and information to support the positive economic outcome shown. The results of this study indicate that the Project is technically feasible and has financial merit at the base case assumptions considered.

In summary, the QPs recommend that the Project proceeds to the Feasibility Study phase. It is also recommended that environmental and permitting continue as needed to support the Project's development plans and the Project schedule.

Concurrently, it is recommended that ODV continues its exploration program with drilling (infill and exploration), geological mapping, and grab sampling to test the extensions of known high-grade vein corridors and identify new targets.

A work program, including additional exploration drilling, an underground bulk sample, and a Mineral Resource Estimate ("MRE") update have been developed based on QPs' recommendations. The work program is estimated to cost approximately $64.8 million ("M") including a $10.8M contingency. A breakdown of this budget is summarized in Table 26-1.

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 Table 26-1: Work program budget

Work Program Cost Estimate (CAD)
Infill and exploration drilling (130,000m) 30,000 000
Surface mapping and sampling 500,000
Bulk Sample 15,000,000
MRE update and Feasibility Study 8,500,000
Contingency (20%) 10,800,000
Total 64,800,000

Analysis of the results and findings from each major area of investigation completed as part of this PEA suggests numerous recommendations for further investigations to mitigate risks and/or improve the base case designs.

26.1. Drilling and Geology

For the future drilling, geology and Resource estimation activities, it is recommended to:

 Based on the results of the 2022 MRE, it is recommended that the Project deposit be advanced to the next phase. Additional exploration and delineation drilling, as well as further geological and structural interpretation, are recommended to determine the extents of the gold mineralization. The recommended geology work program is detailed below. Infill drilling in high-grade vein corridors (> 6.0 grams per tonne ["g/t"] gold ["Au"]) to potentially convert resources currently categorized as Inferred to Indicated category. A budget of 130,000 metres ("m") of drilling is recommended for this program.

 Exploration drilling to explore the true depth potential with 50 m step-outs downdip of high- grade vein corridors.

 Continue geological mapping and surface sampling programs to define and identify new targets.

 NI 43-101 MRE update on the Project and Feasibility Study. It is recommended to update the MRE after completing the drilling program. This update should be used to support the FS.

 Collect an underground bulk sample to test geological and grade continuities, metallurgical and geotechnical parameters.

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26.2. Underground Mining

For rock engineering, it is recommended to:

 Collect additional geotechnical data to improve rock mass characterization in large infrastructure locations and in areas where no geotechnical logging was carried out. This should include geotechnical drilling from underground targeting critical areas of underground infrastructure such as the vent raise locations, the material sorter, and the other large excavations. This core should be logged, and laboratory rock strength testing conducted in representative samples.

 Validate site in situ stress assumptions once underground.

 Reassess crown pillar and ground support requirements and perform numerical modelling assessments once the mine layout is finalized. Numerical stress modelling of mining sequence and excavation interaction.

 Conduct geotechnical and geological mapping of the underground development as the development progresses. These data should be used to optimize and refine the geological and geotechnical understanding of the existing models. Further geological and structural interpretation is recommended to understand this influence of faults on mining.

Regarding the mine hydrogeology aspects, it is recommended to:

 Assess the requirement for additional investigative work such as packer testing and/or installation of multilevel piezometers in the Mosquito Creek in consideration of updated modelling in support of the environmental assessment and documentation of baseline conditions.

- Obtain dewatering rates for the Bonanza Ledge Site operation to validate the groundwater model findings in this area and reduce uncertainty in predicted dewatering rates.

- Obtain measurements of discharge quantity at existing mine openings in Valley and Mosquito Creek zones to validate the groundwater model findings in this area and reduce uncertainty in predicted dewatering rates.

- Install multilevel piezometers in Cow, Valley, and Island Mountain zones to increase groundwater level monitoring coverage and to better characterize vertical gradients. These installations may be used in the future to verify and refine the model calibration, and to monitor the progress of mine dewatering.

- Investigate the source of upwelling in the historical tailings area to support mitigation planning.

- Assess location of new and existing drinking water wells for use in the Project and by the community of Wells.

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To support the mine planning, it is recommended to:

 Complete additional research and detailed mapping of the old working drift and stopes to gain better understanding of the dewatering and improve mine design.

 Complete additional engineering work to refine mine design and production schedule:

- Perform trade-off study(s) on ventilation raises to optimize number of separate raises (with associated set up costs and increased ventilation costs) against greater schedule flexibility;

- Perform trade-off study(s) on additional or different pillar locations; increased schedule flexibility or ability to access higher grade stopes sooner may offset a small overall reduction in tonnes;

- Further optimization of development schedule late in mine life, potential reduction of manpower or deferral of development may benefit project NPV.

 Complete additional engineering work to detail the CAPEX and OPEX of the underground mine.

 Further study material handling strategies both globally and in relation to automation assumptions. Potential advances in automatic tramming may remove the need for trucks to travel in convoys of three.

`Perform detailed engineering work for the electrical, dewatering and backfill systems.

 Investigate the interaction of the roadheaders and the ventilation circuit. Consider a reversal of the ventilation circuit such that the ramp is downcast and therefore avoid potentially high levels of dust. Similarly, investigate the use and costs of dust collection systems tied to roadheader usage. Investigate the use of roadheaders to mine higher-grade material in adverse ground conditions using the cut and fill method and validate roadheader advancement rates for development.

 Further study paste handling systems both underground and at surface.

 Investigate feasibility of a top down mining sequence with the use of up hole drilling.

 Further study pastefill distribution and whether piping, trucking or a combination of both would be optimal.

 Pursue discussions with various suppliers to negotiate agreements or precise submissions.

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26.3. Mineral Processing and Metallurgical Testwork

It is recommended that the metallurgical test program continues in order to validate the results obtained from the PEA testwork campaigns. Additional testwork would allow for a more profound understanding of the lithological effect on metallurgical performance. The following tests are recommended:

 Additional mineral sorter testwork on each deposit, including life of mine ("LOM") composites and variability samples.

 Characterize the production of fines during crushing.

 Test the impact of dilution on mineral sorting performance as well as impact on down- stream process.

 Perform full flowsheet tests on any new deposits.

 Perform flotation and leach testwork on LOM composites and variability samples at process design conditions.

 Perform equipment specific testwork required to size key process equipment (settling, filtration, etc.).

26.4. Tailings, Waste and Water Management

A laboratory testing program should be carried out on additional samples of existing and new tailings to continue refining the understanding of their physical properties, including hydrogeological and geotechnical characterization. Settling, thickening, and filtration testing on tailings slurry should also be repeated. Testing for defining the potential bleed water quality should be completed.

The recommendations regarding the filtered stack tailings storage facility ("FSTSF") at QR Mill are:

 The staged development of the FSTSF should be assessed to provide a more accurate planning.

 The temporary covering of the FSTSF and existing TSF should be assessed and a liner field trial should be conducted.

 The trafficability of the existing tailings should be reviewed for its ability to support the Project tailings and liner installation.

 The most appropriate closure scenario should be defined including identification of the most appropriate low-permeability cover system and borrow sources.

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The recommendations regarding surface water management at the Mine Site Complex, Bonanza Ledge Site and QR Mill are:

 Surface water management concept is to be assessed according to results of environmental site assessment and ensure compliance with the Project permitting or table of comments.

 Freeze concepts, construction staging and characterize soil types and depth to rock in the footprint of proposed water management infrastructure in order to progress through detailed design of contact water ponds, diversions, contact water ditches and sumps and spillway channels. This is needed to ensure stability and certainty of arrangement, and material quantities.

The recommendations related to geochemical characterization and the Mine Site Complex and Bonanza Ledge Site water quality predictions are as follows:

 Work in progress related to geochemical testing and water quality predictions should be considered in the context of the water treatment plant design. Work in progress includes the following:

- Supplemental geochemical testing for the purpose of refining water quality inputs (i.e., source terms) to the site water quality model:

o    Additional characterization of unconsolidated overburden samples located at the Mine Site Complex has been initiated to aid in the understanding of the potential for Acid Rock Drainage ("ARD") and Metal Leaching ("ML"), and subsequently inform the material handling during construction at which time the materials will be disturbed onsite;

o    A laboratory testing program has been initiated for cemented paste tailings and cemented rockfill to understand the ARD/ML potential of the materials and refine water quality model ("WQM") source terms related to cemented materials stored in the underground;

o    Supplemental geochemical testing of waste rock and mineralized materials, including continuation of humidity cell tests to confirm assumptions related to ARD and ML.

- General refinements to the Mine Site Water Balance and Water Quality Model ("WBWQM"):

o    Update the WBWQM to provide linkages between the mine life phases (i.e., Construction, Operations, Closure, and Post-Closure) on a temporal and spatial basis;

o    Review and/or refine lithological assignments within the WQM for the waste materials expected during the mine life;

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o Refine the current modelling approach for the prediction of the underground water quality to include updated source terms using site-specific datasets and temporal / spatial information for mining operations. The predicted water quality of the underground mine water pool may be refined with the inclusion of updated water chemistry profiles for the following source-terms:

̵ Water chemistry from opportunistic sampling of mine pool locations;

̵ Nitrogen species due to blasting activities;

̵ Cemented backfill materials;

̵ Bedrock water chemistry;

̵ Seepage from underground wall rock exposure.

- The recommendations related to the QR Mill WBWQM:

o Continue to validate model predictions against site monitoring data;

o Geochemical characterization for the 2021 field program samples is ongoing. Revise the model with updated source terms once the data is available;

o Improve linkage between mill components and the rest of the site-wide WBWQM components such that water treatment design basis can be refined;

o Implement field leach barrel or large scale field pad testing for the FSTSF tailings to assess the speciation and mineral saturation states under field conditions.

Recommendations related to Water Treatment Design are as follows:

 Progress the high-level trade-off for the installation of a pipeline from Bonanza Ledge Site to Mine Site Complex.

 Further analysis of the modelling predictions to identify efficiencies and simplifications in the selected treatment processes.

 Further analysis of the modelling predictions to identify mitigation measures at source.

 Seek opportunities for staged installation of the treatment processes.

26.5. Infrastructure

Additional activities are recommended to complete the next phase for the following infrastructure items:

 Mine Site Complex Camp Access Road:

- Complete highway access permit to confirm intersection of Mine Site Complex Camp Access Road at Highway 26.

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- Willow River Bridge foundations should be designed to clarify uncertainty in foundation design and capital cost. Geotechnical Investigation should include Electronic Cone method, Seismic information ("CPTu"), review of lateral spreading and settlement and complete survey to confirm grade line. Environmental information/constraints should be well defined too.

- Evaluate bearing capacity of foundation materials along the length of the road to determine if soil reinforcement is required to establish a stable road prism, where poor subgrade conditions exist.

 Mine Site Complex Preparation:

- Assess requirements to dismantle and dispose of historic structures.

- Undertake further assessment on the geochemical characterization of the material to be excavated at the Mine Site Complex to finalize the earthworks development strategy and assess potential and optional sources of structural backfill materials to ensure suitability for construction, improve certainty of unit cost, and initiate permitting or negotiation of rights of access to the source area.

 Mine Site Complex to Bonanza Ledge Site Roads:

- Complete additional engineering work to optimize the construction and layout of on- site roads Between the Mine Site Complex and Bonanza Ledge Site;

 Waste at Mine Site Complex and Bonanza Ledge Site:

- Characterize waste rock material geotechnical parameters to confirm stability and configuration and further carry out geochemical characterization.

 Structure Foundations at Mine Site Complex:

- Undertake an additional geotechnical investigation to better map the bedrock profile and the assessment of volumes of overburden and historical waste material.

- Additional assessment of the bearing capacity of the bedrock at the location of the concentrator;

 Overhead Transmission Line:

- Finalize the process of permitting the Transmission Line as it is a critical component of the Project;

 Electrical System at Mine Site Complex

- Continue developing the power distribution strategy at the Mine Site Complex, especially towards Bonanza Ledge Site;

 Waste Rock Storage Facility at Bonanza Ledge Site:

- Geotechnical site investigation and assessment of foundation conditions and characterization of existing waste rock material confirm stability and configuration.

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 QR Mill:

- Identify and assess borrow source for construction of the South Seepage Collection Pond ("SSCP") infrastructure, waste and mineralized material pads, and related water management infrastructure.

 Workers Accommodation at the Mine Site Complex:

- A detailed logistics plan for pre-production construction and mine development personnel, as well as ODV operations employees as they are hired, should be undertaken to ensure that the new camp, the existing camp and the various accommodations that ODV currently own in the District of Wells are sufficient to meet the labour requirements for the Project during the pre-production period.

 Workers Accommodation at the QR Mill:

- The capacity and condition of the existing QR Mill Camp is adequate for construction personnel during the pre-production period, at which time the QR Mill operations personnel will transfer to the new camp. A detailed logistics plan should be developed to ensure adequate accommodations are available during the QR Mill upgrade work.

26.6. Environment and Permitting

The following are recommendations for environmental and permitting considerations:

 Environmental monitoring for the Project including updating existing environmental monitoring plans in alignment with regulatory requirements and best management practices.

 ODV's engagement with Indigenous nations, regulatory authorities and community stakeholders. This effort facilitates the permitting process and reduces schedule risks. ODV has been engaged with Indigenous nations, regulatory authorities, and community stakeholders, and has sought to gain consent and support for the Project.

 ODV to continue engagement with the Participating Indigenous nations in order to maintain sound relationships and incorporate their input.

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27. References

27.0. Mineral Resources and Geology

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17 pages. Internal report.

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MTO, May 2019. Mineral titles online of British Columbia government. http://www2.gov.bc.ca/gov/content/industry/mineral-exploration-mining/mineral- titles/mineral-placer-titles/mineraltitlesonline

Nelson, J.L., 1993. The Sylvester Allochthon: Upper Paleozoic Marginal-basin and island-arc terranes in northern British Columbia. Canadian Journal of Earth Sciences, v.30(3), p.

631-643.

Panteleyev, A., 1996. Geology and mineral deposits of the Quesnel River, Horsefly map area, central Quesnel Trough, British Columbia: NTS map sheets 93A/5, 6, 7, 11, 12, 13; 93B/9, 16; 93G/1; 93H/4. British Columbia Ministry of Employment and Investment: Energy and Minerals Division: Geological Survey Branch Bulletin 97.

Panteleyev, A., Bailey, D. G., Bloodgood, M. A. and Hancock, K. D., 1996. Geology and mineral deposits of the Quesnel River-Horsefly map area, central Quesnel Trough, British Columbia (NTS map sheets 93A/5, 6, 7, 11, 12, 13; 93B/9, 16; 93G/1; 93H/4). BC Ministry of Energy, Mines and Petroleum Resources, Bulletin 97, 156 pages.

Pautler, J. W., 2003. Report on the 2003 Diamond Drill and Trenching Program on the Island Mountain Gold Property, Wells, British Columbia. Report published on SEDAR website (Starr Peak Exploration Ltd) on December 31, 2003. 30 pages.

Pautler, J., 2004. Report on the 2003 Diamond Drill and Trenching Program on the Cariboo Gold Project, Wells, British Columbia. International Wayside Gold Mines Ltd. BC Ministry of Energy, Mines and Petroleum Resources, Assessment Report 27 386, 15 pages.

Phillips, G.N. and Powell, R., 2010. Formation of gold deposits: a metamorphic devolatilization model. Journal of Metamorphic Geology, 28: 689-718.

Pickett, J. W., 2000. Report on the Mosquito Creek and Island Mountain Claims Groups, Cariboo Mining Division, British Columbia, Canada. Report published on SEDAR website (Starr Peak Exploration Ltd) on April 5, 2001. 18 pages.

Pickett, J. W., 2001. Diamond drilling and geochemical soil sampling report on a portion of the IGM Group of mineral claims. Works done by Island Mountain Gold Mines Ltd and International Wayside Gold Mines Ltd. BC Ministry of Energy, Mines and Petroleum Resources, Assessment Report 26 492A, 57 pages.

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Pickett, J. W., 2002. Diamond Drilling, Geochemical Soil Sampling, Induced Polarization Geophysics, and Rock Sampling, report on a portion of the IGM Group of mineral claims. Works done by Island Mountain Gold Mines Ltd and International Wayside Gold Mines Ltd. BC Ministry of Energy, Mines and Petroleum Resources, Assessment Report 26 888A, 24 pages.

Pickett, J. W., 2003. Technical Report on the 2002 Exploration Program of Island Mountain Gold Mines Ltd, Wells Area, BC. Report published on SEDAR website (Starr Peak Exploration Ltd) on February 10, 2003. 30 pages.

Pow, D. J., 2003. A Preliminary Assessment Report on the Cow Mountain and Bonanza Ledge Deposits, Wells, British Columbia for International Wayside Gold Mines Limited. Report published on SEDAR website (Barkerville Gold Mines Ltd) on April 14, 2003. 42 pages.

Ray, G. E., Webster, I. C. L., Ross, K. and Hall, R., 2001. Geochemistry of auriferous pyrite mineralization at the Bonanza Ledge, Mosquito Creek mine and other properties in the Wells-Barkerville area, British Columbia. In Geological Fieldwork 2000, BC Ministry of Energy and Mines, Paper 2001-1, pp. 135-167.

Reid, R., 1999. Underground Percussion Drilling and Surface Diamond Drilling, cariboo Gold Project at Wells, B. C. Report prepared for International Wayside Gold Mines Ltd. BC Ministry of Energy, Mines and Petroleum Resources, Assessment Report 25 940, 25 pages.

Rhys, D. A., Mortensen, J. K. and Ross, K., 2009. Investigations of orogenic gold deposits in the Cariboo gold district, east-central British Columbia (parts of NTS 093A, H): progress report. In Geoscience BC Summary of Activities 2008, Geoscience BC, Report 2009-1, p. 49-74.

Richards, F., 1948. Cariboo Gold Quartz mine. In Structural Geology of Canadian Ore Deposits, Canadian Institute of Mining and Metallurgy, pp. 162-168.

Sandefur, R. L., and Stone, D. M., 2006. Preliminary Assessment Report The Bonanza Ledge Mine, Wells, British Columbia. Report prepared by Chlumsky, Armbrust & Meyer, LLC for International Wayside Gold Mines Ltd. Report published on SEDAR website (Barkerville Gold Mines Ltd) on May 2, 2006. 88 pages.

Sandefur, R. L., and Stone, D. M., 2006. Preliminary Assessment Report. The Bonanza Ledge Mine, Wells, British Columbia. Report prepared by Chlumsky, Armbrust & Meyer, LLC for International Wayside Gold Mines Ltd. Report published on SEDAR website (Barkerville Gold Mines Ltd) on May 2, 2006. 88 pages.

Schiarizza, P.A., Ferri, F. 2003. Barkerville Terrane, Cariboo Lake to Wells; A New Look at Stratigraphy, Structure and Regional Correlation of the Snowshoe Group. In Geological Fieldwork 2002, British Columbia Ministry of Energy and Mines, British Columbia Geological Survey Paper 2003-01, p. 77-96.

Shaw, J., and Prince, J. K. G., 2019. Report on the 2019 Regional Mapping Program: Barkerville, Cow, Island Mountain, and Proserpine Exploration Areas, Cariboo Gold District. Barkerville Gold Mines Internal Report, 88 p.

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Skerl, A.C., 1948. Geology of the Cariboo Gold Quartz Mine Wells, BC: Economic Geology, v. 43, p. 571-597.

Struik, L.C., 1982: Snowshoe Formation (1982), central British Columbia; in Current Research, Part B, Geological Survey of Canada, Paper 82-1B, pp. 117-124.

Struik, L.C., 1984: Outcrop geology, Cariboo Lake, Spectacle Lakes, Swift River, and Wells map areas, Cariboo District, British Columbia; Geological Survey of Canada, Open File 1109.

Struik, L.C., 1986: Imbricated terranes of the Cariboo gold belt with correlations and implications for tectonics in southeastern British Columbia; Canadian Journal of Earth Sciences, Volume 23, pp. 1047-1061.

Struik, L. C., 1988. Structural geology of the Cariboo Gold Mining District, east-central British Columbia. Geological Survey of Canada, Memoir 421, 100 pages.

Struik, L. C., Parrish, R. R., and Gerasimoff, M. D., 1992. Geology and age of the Naver and Ste Marie plutons, central British Columbia. Radiogenic Age and Isotopic Studies, v. 5, p. 155-1

Sutherland Brown, A., and Ash, C. H., 2009. Great Mining Camps of Canada 3. The History and Geology of Cariboo Goldfield, Barkerville and Wells, BC. Geoscience Canada, volume 36, number 1. pp. 1-31.

Walton, G., 2002a. Report for Assessment Cariboo Gold Project, Wells, B. C. International Wayside Gold Mines Limited. BC Ministry of Energy, Mines and Petroleum Resources, Assessment Report 26 906, 13 pages.

Walton, G., 2002b. Report on the 2001 Exploration Program on the Cariboo Gold Properties, Central British Columbia. International Wayside Gold Mines Limited. Report published on SEDAR website (Barkerville Gold Mines Ltd) on August 27, 2002. 38 pages.

Walton, G., 2003a. Report for Assessment Cariboo Gold Project, Wells, B. C. International Wayside Gold Mines Limited, Island Mountain Gold Mines Ltd, Golden Cariboo Resources Ltd. BC Ministry of Energy, Mines and Petroleum Resources, Assessment Report 27 146, 31 pages.

Walton, G., 2003b. Report for Assessment Cariboo Gold Project, Wells, B. C. International Wayside Gold Mines Limited. BC Ministry of Energy, Mines and Petroleum Resources, Assessment Report 27 211, 26 pages.

Yao, S., E, Doyle., 2020. 2020 Drilling Summary for Proserpine. Sept 13 - Nov 16, Cariboo Mining District Central British Columbia. Barkerville Gold Mines Ltd. 11 pages. Internal Report.

Yin, J. and Daignault, P., 2007. Report on the 2006 exploration program on the Cariboo Gold project, Wells, B.C. International Wayside Gold Mines Limited. BC Ministry of Energy, Mines and Petroleum Resources, Assessment Report 28 990B, 44 pages.

Yin, J. and Daignault, P., 2008. Report on the 2007 exploration program on the Cariboo Gold project, Wells, B.C. International Wayside Gold Mines Limited. BC Ministry of Energy, Mines and Petroleum Resources, Assessment Report 29 803, 29 pages

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Yin, J., 2010a. Assessment Report on the 2008 exploration program on the Cariboo Gold project, Wells, B.C. International Wayside Gold Mines Limited. BC Ministry of Energy, Mines and Petroleum Resources, Assessment Report 30 662A, 40 pages.

Yin, J., 2010b. Assessment Report on the 2009 drill program on the Cariboo Gold project, Wells, B.C. International Wayside Gold Mines Limited. BC Ministry of Energy, Mines and Petroleum Resources, Assessment Report 31 464A, 28 pages.

Yin, J., 2011. Assessment Report on the 2010 drill program on the Cariboo Gold project, Wells, British Columbia. Barkervile Gold Mines Limited. BC Ministry of Energy, Mines and Petroleum Resources, Assessment Report 32 282, 32 pages.

Yin, J., 2013. Report on the 2011 exploration program on the Cariboo Gold project, Wells, British Columbia. International Wayside Gold Mines Limited. BC Ministry of Energy, Mines and Petroleum Resources, Assessment Report 29 803, 29 pages.

Zhu, Y., An, F., & Tan, J. (2011). Geochemistry of Hydrothermal Gold Deposits. Geoscience Frontiers, v. 2(3), p. 367-374.

27.1. Mining Methods

Barton N., Lien R., Lunde J. 1974. Engineering classification of rock masses for the design of tunnel support. Rock Mech. May, 189-236.

Bieniawski, Z.T., 1989. Engineering rock mass classification. New York: Wiley.

Carter, T.G., Cottrell, B.E., Carvalho, J.L., and Steed, C.M. 2008. Logistic Regression improvements to the Scaled Span Method for dimensioning Surface Crown Pillars over civil or mining openings

Clark, L.M, 1998. Minimizing Dilution in Open Stope Mining with a Focus on Stope Design and Narrow Vein Longhole Blasting. MSc thesis, University British Columbia, Canada

Golder Associates, 2020. Document No. 19124019_Barkerville_Cariboo_Lab Report_. June 8, 2020.

Grimstad, E., Barton, N. 1993. Updating the Q-System for NMT. Proceedings of the International Symposium on Sprayed Concrete - modern use of wet mix sprayed concrete for underground support, Fagernes. 46-66. Oslo: Norwegian Concrete Assn.

Laubscher, D.H. 1990. A geomechanics classification system for the rating of rock mass in mine design. J. S. Afr. Inst. Min. Metall., Vol. 90, no. 10, 257-273p.

Mawdesley, C. Trueman R. Whiten W. 2001. Extending the Mathews stability graph for open stope design. Trans. IMM (Section A). Volume 110, p A27-39

McCracken, A., Stacey, T.R. 1989. Geotechnical risk assessment for large-diameter raise-bored shafts. Proc. Conference on Shaft Engineering, Harrogate, 5-7, 309-316p.

MineFill Services, 2019. Document No. 19feb08 CRF backfill study DRAFT. February 13, 2019.

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Ouchi, A., Pakalnis, R., Brady, E. 2004. Update of Span Design Curve for Weak Rock Masses. Proc. of the 99th Annual AGM-CIM Conference.

Sichardt, W. 1928. Das Fassungsvermogen von Rohrbrunnen und seine Bedeutung fur die Grundwasserabsenkung, insbesondere fur grobere absenkungstiefen. J. Springer, Berlin.

Stewart S. B.V., Forsyth W.W. 1995. The Matthews method for open stope design. CIM Bull., 88, no. 992, 45-53.

SRK Memo, 2020. Assumptions for the revised Pre-economic Assessment of the Cariboo Gold Project, July 14, 2020.

SRK, 2021. Cariboo Gold Project 2021 Geotechnical Drilling Program Factual Data Report.

SRK, 2022. Cariboo Gold Project Technical Feasibility Report. Theim, G. 1906. Hydrologische Methoden. Gebhardt, Leipzig, 56 pp.

WSP, 2019a. PEA Hydrogeological Study, Barkerville Gold Mines, Wells, British Columbia. WSP, 2019b. Barkerville Gold Mines, Hydrogeological Feasibility Study. May 2019. Miner, 1938.

Mining Plus memorandum, 2018. 4783: Barkerville Gold Mines PEA, historic workings review, August 2018.

27.2. Mineral Processing and Metallurgical Testing

Golder Associates Ltd., Cariboo Gold Project - Feasibility Paste Fill Testing Report, April 19, 2022, 21 pages.

De Paula, R., 2022, Dewatering Studies, Oracle Project Reference 9232514156, prepared by FLSmidth Inc. for Barkerville Gold - Cariboo, April 5, 2022, 30 pages.

Hansuld, R. and Gajo, M., 2019. An investigation into metallurgical testing on ore sorting samples from the Cariboo Gold Project, prepared by SGS Canada Inc. for Barkerville Gold Mines Ltd., August 29, 2019, 52 pages.

Pocock Industrials Inc., Flocculant Screening, Gravity Sedimentation, Pulp Rheology and Pressure Filtration Studies, conducted for BBA Inc. and Barkerville Cariboo Gold, May, 2019, 126 pages.

Liu, S. and Ashbury, M., Slurry Rheology Test Results for a Flotation Concentrate and a CIP Detoxification Tailings from the Cariboo Project for Barkerville Gold Mines, prepared by SGS Canada Inc., SGS Project No, CA20M-00000-110-18880-01, April 25, 2022, 64 pages.

Shibistova, A., 2021. Performance Test Report, prepared by TOMRA Sorting Solutions Inc. for Barkerville Gold Mines Ltd., January 21, 2021, 32 pages.

Steinert, TRE-10130-XRT-624 742, Rev. 02 - XRT Test Work Report, Barkerville Gold Mines - Cariboo Project Waste Rock Sorting Test Work, January 14, 2019, 45 pages.

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Sun, B., 2022, An Investigation into Metallurgical Testing on Ore Sorting Test Products from the Cariboo Gold Project, prepared by SGS Canada Inc. for Barkerville Gold Mines Ltd., April 25, 2022, 230 pages.

27.3. Project Infrastructure

All North Report - Barkerville Gold Mines - QR Mill Access - 500 Road Upgrade, Dated December 13, 2018, All North Document 181213 500 Road Upgrade Feasibility Study.

Technical Memo - Cariboo Gold Project Portal Designs - PEA level, Dated July 6, 2020. WSP Document No. 151-11330-32 BGM_Portal Cost Assessment_MEM-01_R1.

Babamkhani, R., Brown, T., 2019. BBA Letter, Cariboo Gold Mine - Surface Structures - Conceptual Assessment of Secondary Waste Rock Pile. Dated August 7, 2019. BBA Document No./Rev. #3772018-000000-4G-ERA-0001-RAB.

Batchabani, E., Bouazza, Z., Piciacchia, L., 2019. BBA Report, Cariboo Gold Mine - Hydroclimatology Information. Dated February 13, 2019. BBA Document No./Rev. #3772012-002000-4G-ERA-0004-R00.

BBA Report - Cariboo Gold Mine - Surface Infrastructure - Factual Report - 2018 Geotechnical Site Investigation. Dated March 5, 2019. BBA Document No./Rev. #3772012-000000-4G- ERA-0001-R00.

BC Soil Survey, 1985. Soil of the Barkerville Area, British Columbia.

BC Ministry of Environment (BC ENV). 2015. Technical Guidance 7, Environmental Management Act: Assessing the Design, Size, and Operation of Sediment Ponds Used in Mining. Retrieved from https://www2.gov.bc.ca/assets/gov/environment/waste- management/industrial-waste/industrial-waste/mining-smelt- energy/assessing_design_size_and_operation_of_sediment_ponds.pdf.

BGM (Barkerville Gold Mines Ltd.). 2020. Bonanza Ledge Project, Bonanza Ledge Phase II Joint Permit Amendment Application Draft, Barkerville Gold Mines Ltd., June 2020.

Brown, T., Aboutalebi, A., 2018. BBA Report, Cariboo Gold Mine Project - Tunnel Portal - Alternative Assessment. Dated October 3, 2018. BBA Document No./Rev. #3772012- 002000-4G-ERA-0001-RAA.

Brown, T., Piciacchia, L., 2018. BBA Report, Cariboo Gold Project - Exploration Portal - Site Plan Design Summary. Dated April 5, 2018. BBA Document No./Rev. #3772010-000000-4G-ERA- 0001-RAA.

CGI Group, 1999. Water Supply for Public Fire Protection, Part II - Guide for Determination of Required Fire Flow by Fire Underwriter's Survey.

Golder, 2020a. Cariboo Gold Project 2020 Preliminary Economic Assessment - Water Management Strategy. Ref. GAL322-1774160-50000-TM-RevA in preparation

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Golder, 2020b. Cariboo Gold Project 2020 Preliminary Economic Assessment - Hydrogeology. Ref. GAL325-1774160-50000-TM-RevA. June 12, 2020.

Golder, 2020c. BGM Cariboo Gold Project Effluent Dilution Design Basis Memo. Ref. GAL250- 1774160-40000-TM-RevB in preparation.

Golder 2021a. Cariboo Gold Project Water Treatment at Mine Site - Engineering Study. Golder Ref: GAL391-1774160-50000-R-Rev1 submitted to Osisko Development Corporation, Wells. BC. June 2021.

Golder 2021b. Wells Mine and Bonanza Ledge Site Water Management Plan - EA Support Engineering Study. Submitted to Osisko Development Corporation, Wells. BC. June 2021.

Klohn Crippen Berger Ltd, 2022a. Cariboo Gold Project Design of Tailings and Water management Infrastructure at QR Mill - Rev. 4 - Draft. May 2.

Klohn Crippen Berger Ltd, 2022b. Cariboo Gold Project QR Mill Water Management Plan. In progress.

Lavoie, B., Bouazza, Z., Piciacchia, L., 2018. BBA Report, Cariboo Gold Mine - Design Criteria - Design of Haul Road and Mine Water Management. Dated November 29, 2018. BBA Document No./Rev. #3772012-000000-4G-EDC-0001-RAB.

Neyshaboori S., Babamkhani R., Brown, T., 2019. BBA Report, Cariboo Gold Mine Project - Surface Structures Definition Report. Dated June 20, 2019. BBA Document No./Rev. #3772018-000000-41-ERA-0001-RAB.

Simard, M., Brown, T., 2019. BBA Report - Cariboo Gold Mine - Design Criteria - Telecommunications. Dated February 6, 2019. BBA Document No./Rev. #3772018-000000- 4C-EDC-0001-RAB.

Simard, M., Leonard,G., 2019. BBA Report, Cariboo Gold Mine Project - Design Criteria - Site Telecommunications. Dated February 6, 2019. BBA Document No./Rev. #3772018-000000- 4C-EDC-0001-RAB.

Shahraki, M., Aboutalebi, A., 2019. BBA Report, Cariboo Gold Mine - Design Criteria - Access Road and Crossing Structure. Dated April 4, 2019. BBA Document No./Rev. #3772012- 000000-41-EDC-0001-RAA.

SPM, 2014. Sewerage System Standard Practice Manual, Version 3, (September 2014), Health Protection Branch, British Columbia Ministry of Health.

BC Ministry of Environment (MOE). 2015. Technical Guidance 7, Environmental Management Act: Assessing the Design, Size, and Operation of Sediment Ponds Used in Mining. Retrieved from https://www2.gov.bc.ca/assets/gov/environment/waste- management/industrial-waste/industrial-waste/mining-smelt- energy/assessing_design_size_and_operation_of_sediment_ponds.pdf

BC Mine Waste Rock Pile Research Committee.1991. Mine Rock and Overburden Piles Investigation and Design Manual - Interim Guidelines, May 1991.

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BGM (Barkerville Gold Mines Ltd.). 2020. Bonanza Ledge Project, Bonanza Ledge Phase II Joint Permit Amendment Application Draft, Barkerville Gold Mines Ltd., June 2020.

Golder (Golder Associates Ltd.). 2020. BGM Cariboo Gold Project Effluent Dilution Modelling Design Basis Memo. Cariboo Gold Project. Prepared for Barkerville Gold Mines Ltd. Vancouver, BC: Golder Associates Ltd., Golder Doc. No. GAL250-1774160-40000-TM-RevA; 7 January 2020.

Golder, 2020a. Cariboo Gold Project 2020 Preliminary Economic Assessment - Water Management Strategy. Ref. GAL322-1774160-50000-TM-RevA in preparation

Golder, 2020b. Cariboo Gold Project 2020 Preliminary Economic Assessment - Hydrogeology. Ref. GAL325-1774160-50000-TM-RevA. June 12, 2020.

Golder, 2020c. BGM Cariboo Gold Project Effluent Dilution Design Basis Memo. Ref. GAL250- 1774160-40000-TM-RevB in preparation.

27.4. Environmental Studies, Permitting, and Social or Community Impact

BBA, 2018. Barkerville Gold Mines Ltd. Cariboo Gold Mine - Design Criteria - Design of haul road and mine water management infrastructure. BBA Document No. 3772012-000000-4G-EDC- 0001/RAB. Dated November 30, 2018.

BC CDC, 2011. Species Summary: Salvelinus confluentus. BC Ministry of Environment. Available: http://a100.gov.bc.ca/pub/eswp/. Accessed 20 September 2019.

Government of BC, 1996) Mines Act permit pursuant to the Mines ActBGM (Barkerville Gold Mines Ltd), 2019. Preliminary Economic Assessment of the Cariboo Gold Project. NI 43-101. District of Wells, BC, Canada. August 18, 2019.

BCEAA, 2018. BC Environmental Assessment Act

CRD, 2000. Cariboo Regional District North Cariboo Area Rural Land Use Bylaw 3505. Cariboo Regional District. Retrieved from https://cariboord.ic10.esolg.ca//Modules/Bylaws//Bylaw/Details/65a64e0a-b881-47a6- a0d1-8506b85b3474

Demarchi, D.A. (2011. An Introduction to the Ecoregions of British Columbia. Retrieved January 19, 2019 from https://www2.gov.bc.ca/assets/gov/environment/plants-animals-and- ecosystems/introduction_to_the_ecoregions_of_british_columbia.pdf.

EMLI, 2021. BC Ministry of Energy, Mines, and Low Carbon Innovation

FIDQ, 2020. Fish Information Data Query. Retrieved from https://cadi.data.gov.bc.ca/dataset/fish-information-data- query#:~:text=Fish%20Information%20Data%20Query%20%28FIDQ%29%20FIDQ%20provides %20easy,from%20the%20provincial%20BC%20Geographic%20Data%20Warehouse%20%28B CGW%29.

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GeoWest Environmental Consultants Ltd. (2000). Terrestrial Ecosystem Mapping with Wildlife Habitat Interpretations for Tree Farm License 52. Report prepared for West Fraser Mills Ltd. TFL 52, Cariboo Forest Region.

Golder. (2021a). Cariboo Gold Project Mine Site - Climate Existing Conditions Report GAL137- 1774160-30000-R-Rev1. June 10, 2021. Vancouver.

Golder. (2021b) (May 31). QR Mill Existing Conditions Report GAL219-1774160-30000-R-Rev 1, July, 2021.

Golder. (2021c). Cariboo Gold Project Section 7.7: Vegetation, July, 2021.

Golder. (2022a) Cariboo Gold Project Wildlife and Wildlife Habitat Existing Conditions Report GAL142-1774160-30000-R-Rev3, January, 2022.

Golder (2022b). Cariboo Gold Project: Geochemistry Existing Conditions Report. Prepared for Osisko Development Corp. Vancouver, Doc. No. GAL093-1774160-30000-R-Rev2; March, 2022.

Golder (2022c). Cariboo Gold Project: Mine Site Water Quality Modelling Report - Environmental Assessment Certification Application Support Engineering. Prepared for Osisko Development Corp. Vancouver, Doc. No. GAL379-1774160-50000-R-Rev0., 2021

Golder. (2022d). Golder Tech Memo 32: Cariboo Gold Project Application Response to Review Comment EC-169, EC-171, EC-217, EC-222, PGL-29, and PGL-30. January, 2022.

Golder. (2021e). Cariboo Gold Mine Project Appendix 1.0-3 Geochemistry Existing Conditions Report, July, 2021.

Golder. (2022f - March). Golder Technical Memo 42: Cariboo Gold Project EAC Application Response to Review Comment ID EMLI-16, EMLI-23, EMLI-25, EMLI-28, and EMLI-88. GAL636- 1774160-30000-TM-Rev0.

Government of BC. (1985). Fisheries Act. Ottawa: Department of Fisheries and Oceans. Retrieved March 2022, from https://www.google.com/laws-lois.justice.gc.ca

Government of BC. (1996). Mines Act. BC Ministry of Energey and Mines. Retrieved March 2022, from https://www.google.com.bclaws.gov.bc.ca

Government of BC. (1996a). Heritage Conservation Act. BC Ministry of Forests, Lands, Natural Resource Operations and Rural Development, Archaeology Branch. Retrieved March 2022, from http://www.bclaws.ca/bclaws_new.

Government of BC. (1996b). Land Act. (FLNRORD, Ed.) BC Ministry of Forests, Lands, Natural Resource Operations, and Rural Development. Retrieved March 2022, from https://www.bclaws.gov.bc.ca/civix/document

Government of BC. (1996c). Wildlife Act. (FLNRORD, Ed.) BC Ministry of Forests, Lands, Natural Resource Operations, and Rural Development. Retrieved from https://www.bclaws.gov.bc.ca/civix/document

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Government of BC. (1996d). Forest Act. (FLNRORD, Ed.) BC Ministry of Forests, Lands, Natural Resource Operations, and Rural Development. Retrieved March 2022, from https://www.bclaws.gov.bc.ca/civix/document

Government of BC. (2001). Drinking Water Protection Act. BC Ministry of Health. Retrieved March 2022, from https://www.bclaws.gov.bc.ca/civix/document

Government of BC. (2003). Environmental Management Act. BC Ministry of Environment. Retrieved March 2022, from https://www.google.com/bclaws.gov.bc.ca

Government of BC. (2004). Transportation Act. (MoTI, Ed.) BC Ministry of Transportation and Infrastructure. Retrieved March 2022, from https://www.bclaws.gov.bc.ca/civix/document

Government of BC. (2008). Public Health Act. BC Ministry of Health. Retrieved March 2022, from https://www.bclaws.gov.bc.ca/civix/document

Government of BC. (2014). Greenhouse Gas Industrial Reporting and Control Act. Retrieved March 2022, from https://www.google.com/bclaws.gov.bc.ca

Government of BC. (2014). Water Sustainability Act. ([. 2. 15, Ed.) BC Ministry of Environment. Retrieved March 2022, from https://www.google.com/bclaws.gov.bc.ca

Government of BC. (2014). Water Sustainability Act. (W. S. Branch, Ed.) BC Ministry of Environment. Retrieved March 2022, from https://www.bclaws.gov.bc.ca/civix/document

Government of BC. (2020). Reviewable Projects Regulation. BC Ministry of Environment and Climate Change Strategy. Retrieved March 2022, from https://www.google.com/bclaws.gov.bc.ca

Government of BC. (2021). Health, Safety and Reclamation Code for Mines in British Columbia. BC Ministry of Energy, Mines and Low Carbon Innovation. Retrieved March 2022, from https://www2.gov.bc.ca/assets/mineral-exploration-mining.pdf

Government of Canada. (1985a). Seeds Act. Ottawa. Retrieved March 2022, from https://www.google.com/laws-lois.justice.gc.ca

Government of Canada. (1994). Migratory Birds Convention Act. Retrieved March 2022, from https://www.google.com/laws.justice.gc.ca

Government of Canada. (2001). Transportation of Dangerous Goods Regulation. Retrieved March 2022, from https://laws-lois.justice.gc.ca/eng/regulations/SOR-2001-286/index.html

Government of Canada. (2002). Metal and Diamond Mining Effluent Regulations. Ottawa. Retrieved March 2022, from https://www.google.com/laws-lois.justice.gc.ca

Government of Canada. (2019). Impact Assessment Act. Ottawa. Retrieved March 2022, from https://www.google.com/laws.justice.gc.ca

Government of Canada. (2019a). Physical Activities Regulation. Ottawa. Retrieved March 2022, from https://www.google.com/laws.justice.gc.ca

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Holland S.S. (1976). Landforms of British Columbia, a Physiographic Outline. Bulletin 48, BC Department of Mines and Petroleum Resources, 138 pages. http://www.empr.gov.bc.ca/Mining/ Geoscience/ PublicationsCatalogue/BulletinInformation/BulletinsAfter1940/Pages/Bulletin48.aspx.

Lord, T. M., & Green, A. J. (1985). Soils of the Barkerville Area, British Columbia. Report No. 40 of the British Columbia Soil Survey, 1985. 89. (L. R. 82-35, Ed.) Vancouver, BC.

Ministry of Mines, Energy, and Petroleum Resources, Mines Act.

KCB (2022a). Cariboo Gold Project Design of Tailings and Water Management Infrastructure at QR Mill - Rev. 4 - DRAFT. May 2.

KCB, 2019b. QR Mine Water Management Plan. Report No. 190426R. Dated April 2019. KCB, (2022b) (See page 18-34 - Section 18.4.3 and page 18-37 - Section 18.4.4)

MEM (British Columbia Ministry of Energy and Mines), 2016. Guidance Document - Health, Safety and Reclamation Code for Mines in British Columbia. Version 1.0. Updated July 2016. Victoria, BC: British Columbia Ministry of Energy and Mines. http://www2.gov.bc.ca/assets/gov/farming-natural-resources-and-industry/mineral-exploration-mining/documents/health-and-safety/part_10_guidance_doc_10_20july_2016.pdf.

MEM (British Columbia Ministry of Energy and Mines), 2017. Health, Safety and Reclamation Code for Mines in British Columbia. Ministry of Energy and Mines. Victoria, British Columbia. Revised June 2017.

Northcote, B. (2021). Exploration and mining in south-central region, British Columbia. (B. G. Circular, Ed.) Provincial Overview of Exploration and Mining in British Columbia, 2022(01), pp. 85-104.

ODV (2021a., July). Cariboo Gold Project Section 7.6: Soil, July, 2021.

ODV (2021b.). Cariboo Gold Project EA Chapter 1 Project Description, July, 2021. PLaceholder. (1000).

Province of BC. (1998). Cariboo Chilcotin Regional Land Use Plan Integration Report. BC Ministry of Forests, Lands, Natural Resource Operations and Rural Development. Retrieved March 2022, from https://www2.gov.bc.ca/assets/download/9A4DBA0C02834A07878B78FB3C8DE80E

Province of BC. (2007). Quesnel Sustainable Resource Management Plan. BC Ministry of Forests, Lands, Natural Resource Operations, and Rural Development. Retrieved March 2022, from https://www2.gov.bc.ca/gov/content/industry/crown-land-water/land-use- planning/regions/cariboo/cariboochilcotin-rlup/quesnel-srmp

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Preliminary Economic Assessment for the Cariboo Gold Project

 

Province of BC. (2018). Environmental Assessment Act. Victoria: BC Ministry of Environment. Retrieved March 2022, from https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8 &ved=2ahUKEwjUh9KhhPv2AhXCIDQIHWF8CD8QFnoECAoQAQ&url=https%3A%2F%2Fwww

.bclaws.gov.bc.ca%2Fcivix%2Fdocument%2Fid%2Fcomplete%2Fstatreg%2F18051&usg=AO vVaw0Qir0XoS63-jn_tEVTI4g4

Province of BC. (2019). Declaration on the Rights of Indigenous Peoples Act. Victoria. Retrieved March 2022, from https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/19044

Province of BC. (2019a). Environmental Assessment Fees Regulation. BC Ministry of Environment and Climate Change Strategy. Retrieved March 2022, from http://www.bclaws.ca/civix/document/id/complete/statreg/246_2019

Province of BC. (2019b). Violation Ticket Administration and Fines Regulation. BC Ministry of Environment and Climate Change Strategy. Retrieved March 2022, from http://www.bclaws.ca/civix/document/id/complete/statreg/89_97_00

Province of BC. (2020a). Administrative Penalties Regulation. BC Ministry of Environment and Climate Change Strategy. Retrieved March 2022, from http://www.bclaws.ca/civix/document/id/complete/statreg/64_2020

Statistics Canada. (2017). Wells, DM [Census Subdivision], Census Profile 2016. Ottawa: Statistics Canada. Retrieved March 22, 2022, from https://www12.statcan.gc.ca/census- recensement/2016/dp-pd/prof/index.cfm?Lang=E

Statistics Canada. (2017a). Cariboo C, RDA [Census subdivision] Census Profile 2016. Ottawa: Statistics Canada. Retrieved March 22, 2022, from https://www12.statcan.gc.ca/census- recensement/2016/dp-pd/prof/index.cfm?Lang=E

Statistics Canada. (2017b). Cariboo F, RDA [Census subdivision] Census Profile 2016. Ottawa: Statistics Canada. Retrieved March 22, 2022, from https://www12.statcan.gc.ca/census- recensement/2016/dp-pd/prof/index.cfm?Lang=E

Statistics Canada. (2022). Census Profile. Ottawa: Statistics Canada Catalogue no. 98-316- X2021001. Retrieved March 22, 2022, from . https://www12.statcan.gc.ca/census- recensement/2021/dp-pd/prof/index.cfm?Lang=E

Statistics Canada. (2022). Quesnel 1, IRI [Census subdivision] Census Profile 2021. Ottawa: Statistics Canada. Retrieved March 23, 2022, from https://www12.statcan.gc.ca/census- recensement/2021/dp-pd/prof/index.cfm?Lang=E

WSP. (2021). WSP Tech Memo 11 Chapter 7.2 Air Quality Commet ID#ENV-37 and ENV-84. December 10, 2021.

WSP (2022). Technical Memo 6 Section 7.9 - Freshwater Fish, January, 2022.

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Preliminary Economic Assessment for the Cariboo Gold Project

27.5. Mine Reclamation and Closure

BGM, 2018a. Quesnel River (QR) Mine 2018 Reclamation and Closure Plan. Wells, BC. May 2018.

BGM, 2018b. Quesnel River Mine 2018 Reclamation and Closure Plan Cost Estimate. Wells, BC. June 20, 2018.

Golder, 2019. Cariboo Gold Project - Reclamation and Closure Cost Estimate. August 2019.

Government of BC, 1996. BC Mines Act, RSBC 1996, c 293. Queen's Printer, Victoria, BC.

Government of BC, 2003. Environmental Management Act. SBC 2003, c. 53. Queen's Printer, Victoria, BC.

Government of BC, 2014. Water Sustainability Act. SBC 2014, c 15. Queen's Printer, Victoria, BC.

Government of Canada. 1985a. Fisheries Act. R.S.C., 1985, c. F-14. Available at https://laws- lois.justice.gc.ca/eng/acts/f-14/.

Government of Canada. 1985b. Canada Seeds Act. R.S.C., 1985, c.S-8. 13 pages.

Government of Canada. 1994. Migratory Birds Convention Act. R.S.C., 1994, c. 22. Available at https://laws-lois.justice.gc.ca/eng/acts/m-7.01/).

Government of Canada. 2002. Metal and Diamond Mining Effluent Regulations. R.S.C., 2002, SOR/2002-222. Available at https://laws-lois.justice.gc.ca/PDF/SOR-2002-222.pdf.

MEM (British Columbia Ministry of Energy and Mines), 2017. Health, Safety and Reclamation Code for Mines in British Columbia. Ministry of Energy and Mines. Victoria, British Columbia. Revised June 2017.

27.6. Surface Water Management

BC Ministry of Environment (BC ENV). 2015. Technical Guidance 7, Environmental Management Act: Assessing the Design, Size, and Operation of Sediment Ponds Used in Mining. Retrieved from https://www2.gov.bc.ca/assets/gov/environment/waste-management/industrial-waste/industrial-waste/mining-smelt- energy/assessing_design_size_and_operation_of_sediment_ponds.pdf

CDA (Canadian Dam Association) 2019. Technical Bulletin - Application of Dam Safety Guidelines to Mining Dams.

Golder. 2021. Cariboo Gold Project: Mine Site - Climate Existing Conditions Report. Prepared for Barkerville Gold Mines Ltd. Vancouver, BC: Golder Associates Ltd. Golder Doc. No. GAL137-1774160-30000-R-Rev0; 26 February 2021.

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APPENDIX 1: LIST OF MINERAL CLAIMS AND LEASES

 

 

 

 

 

MAY 2022

Appendix 1




Title # Type Property Owner Issue Date Good to Date Area (ha) Royalties
203991 Mineral Claim Cariboo Gold BGM (50%) and Imperial Metals Corp. (50%) 9/7/1976 7/15/2025 75 Osisko Gold Royalties Ltd. (5%)
204176 Mineral Claim Cariboo Gold BGM (50%) and Imperial Metals Corp. (50%) 8/14/1979 7/15/2025 25 Osisko Gold Royalties Ltd. (5%)
204177 Mineral Claim Cariboo Gold BGM (50%) and Imperial Metals Corp. (50%) 8/14/1979 7/15/2025 25 Osisko Gold Royalties Ltd. (5%)
204753 Mineral Claim Cariboo Gold BGM (50%) and Imperial Metals Corp. (50%) 7/11/1983 7/15/2025 25 Osisko Gold Royalties Ltd. (5%)
204754 Mineral Claim Cariboo Gold BGM (50%) and Imperial Metals Corp. (50%) 7/11/1983 7/15/2025 25 Osisko Gold Royalties Ltd. (5%)
204755 Mineral Claim Cariboo Gold BGM (50%) and Imperial Metals Corp. (50%) 7/11/1983 7/15/2025 25 Osisko Gold Royalties Ltd. (5%)
205247 Mineral Claim Cariboo Gold BGM (50%) and Imperial Metals Corp. (50%) 8/19/1986 7/15/2025 500 Osisko Gold Royalties Ltd. (5%)
205267 Mineral Claim Cariboo Gold BGM (50%) and Imperial Metals Corp. (50%) 9/18/1986 7/15/2025 300 Osisko Gold Royalties Ltd. (5%)
320752 Mineral Lease QR BGM (100%) 4/30/1994 4/30/2022 3164.4 Osisko Gold Royalties Ltd. (5%), Foxcorp Holdings Ltd. (NOP) (whole) (2.5%),
Revolution Technologies Inc. (NOP) (whole), 2.5%, Newmont Goldcorp Corp.
(whole) (1%)
367954 Mineral Claim Cariboo Gold BGM (100%) 2/23/1999 12/11/2030 25 Osisko Gold Royalties Ltd. (5%), Melvin Lee Zeiler (2%) (whole)
367955 Mineral Claim Cariboo Gold BGM (100%) 2/23/1999 12/11/2030 25 Osisko Gold Royalties Ltd. (5%), Melvin Lee Zeiler (2%) (whole)
369917 Mineral Claim Cariboo Gold BGM (100%) 7/3/1999 2/28/2030 25 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
369918 Mineral Claim Cariboo Gold BGM (100%) 7/3/1999 2/28/2030 25 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
370011 Mineral Claim Cariboo Gold BGM (100%) 7/6/1999 2/28/2030 25 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
370012 Mineral Claim Cariboo Gold BGM (100%) 7/6/1999 2/28/2030 25 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
370013 Mineral Claim Cariboo Gold BGM (100%) 7/6/1999 2/28/2030 25 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
370014 Mineral Claim Cariboo Gold BGM (100%) 7/6/1999 2/28/2030 25 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
370015 Mineral Claim Cariboo Gold BGM (100%) 7/6/1999 2/28/2030 25 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
370028 Mineral Claim Cariboo Gold BGM (100%) 7/6/1999 2/28/2030 25 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
370029 Mineral Claim Cariboo Gold BGM (100%) 7/6/1999 2/28/2030 25 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
370010 Mineral Claim Cariboo Gold BGM (100%) 7/7/1999 2/28/2030 500 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
370030 Mineral Claim Cariboo Gold BGM (100%) 7/7/1999 2/28/2030 25 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
370016 Mineral Claim Cariboo Gold BGM (100%) 7/8/1999 2/28/2030 25 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
370230 Mineral Claim Cariboo Gold BGM (100%) 7/14/1999 2/28/2030 25 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
370234 Mineral Claim Cariboo Gold BGM (100%) 7/15/1999 2/28/2030 25 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (whole) (2.5%)
374225 Mineral Claim Cariboo Gold BGM (100%) 1/13/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374226 Mineral Claim Cariboo Gold BGM (100%) 1/13/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374227 Mineral Claim Cariboo Gold BGM (100%) 1/13/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374228 Mineral Claim Cariboo Gold BGM (100%) 1/13/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374229 Mineral Claim Cariboo Gold BGM (100%) 1/13/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374230 Mineral Claim Cariboo Gold BGM (100%) 1/13/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374231 Mineral Claim Cariboo Gold BGM (100%) 1/13/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374232 Mineral Claim Cariboo Gold BGM (100%) 1/13/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374233 Mineral Claim Cariboo Gold BGM (100%) 1/13/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374234 Mineral Claim Cariboo Gold BGM (100%) 1/13/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374706 Mineral Claim Cariboo Gold BGM (100%) 3/8/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374707 Mineral Claim Cariboo Gold BGM (100%) 3/8/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374708 Mineral Claim Cariboo Gold BGM (100%) 3/8/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374709 Mineral Claim Cariboo Gold BGM (100%) 3/8/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374710 Mineral Claim Cariboo Gold BGM (100%) 3/8/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)



Title # Type Property Owner Issue Date Good to Date Area (ha) Royalties
374711 Mineral Claim Cariboo Gold BGM (100%) 3/8/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374712 Mineral Claim Cariboo Gold BGM (100%) 3/8/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
374713 Mineral Claim Cariboo Gold BGM (100%) 3/8/2000 2/28/2030 25 Osisko Gold Royalties Ltd. (5%)
375260 Mineral Claim Cariboo Gold BGM (50%) and Imperial Metals Corp. (50%) 4/9/2000 7/15/2025 400 Osisko Gold Royalties Ltd. (5%)
384112 Mineral Claim Cariboo Gold BGM (100%) 2/19/2001 12/11/2030 300 Osisko Gold Royalties Ltd. (5%), Melvin Lee Zeiler (2%) (whole)
384113 Mineral Claim Cariboo Gold BGM (100%) 2/19/2001 12/11/2030 400 Osisko Gold Royalties Ltd. (5%), Melvin Lee Zeiler (2%) (whole)
412065 Mineral Claim Cariboo Gold BGM (100%) 7/8/2004 2/28/2030 500 Osisko Gold Royalties Ltd. (5%), Estate of Bryan Muloin (whole) (remaining 3% of
2% NSR)
412066 Mineral Claim Cariboo Gold BGM (100%) 7/8/2004 2/28/2030 375 Osisko Gold Royalties Ltd. (5%), Estate of Bryan Muloin (whole) (remaining 3% of
2% NSR)
505901 Mineral Claim Cariboo Gold BGM (100%) 2/4/2005 12/11/2030 349.67 Osisko Gold Royalties Ltd. (5%)
505905 Mineral Claim Cariboo Gold BGM (100%) 2/4/2005 2/28/2030 972.78 Osisko Gold Royalties Ltd. (5%)
505910 Mineral Claim Cariboo Gold BGM (100%) 2/4/2005 2/28/2030 1265.76 Osisko Gold Royalties Ltd. (5%)
505914 Mineral Claim Cariboo Gold BGM (100%) 2/4/2005 2/28/2030 1399.53 Osisko Gold Royalties Ltd. (5%)
505916 Mineral Claim Cariboo Gold BGM (100%) 2/4/2005 2/28/2030 1164.1 Osisko Gold Royalties Ltd. (5%), Douglas Merrick & Harold Merrick (partial) (2%)
505917 Mineral Claim Cariboo Gold BGM (100%) 2/4/2005 2/28/2030 658.93 Osisko Gold Royalties Ltd. (5%), Douglas Merrick & Harold Merrick (partial) (2%)
505921 Mineral Claim Cariboo Gold BGM (100%) 2/4/2005 2/28/2030 914.78 Osisko Gold Royalties Ltd. (5%)
505922 Mineral Claim Cariboo Gold BGM (100%) 2/4/2005 2/28/2030 583.13 Osisko Gold Royalties Ltd. (5%)
505924 Mineral Claim Cariboo Gold BGM (100%) 2/4/2005 2/28/2030 543.58 Osisko Gold Royalties Ltd. (5%)
505925 Mineral Claim Cariboo Gold BGM (100%) 2/4/2005 2/28/2030 1066.31 Osisko Gold Royalties Ltd. (5%), Douglas Merrick & Harold Merrick (partial) (2%)
505926 Mineral Claim Cariboo Gold BGM (100%) 2/4/2005 2/28/2030 310.41 Osisko Gold Royalties Ltd. (5%), Douglas Merrick & Harold Merrick (partial) (2%)
505927 Mineral Claim Cariboo Gold BGM (100%) 2/4/2005 2/28/2030 738.06 Osisko Gold Royalties Ltd. (5%)
505936 Mineral Claim Cariboo Gold BGM (100%) 2/4/2005 2/28/2030 426.62 Osisko Gold Royalties Ltd. (5%), Douglas Merrick & Harold Merrick (partial) (2%)
506154 Mineral Claim Cariboo Gold BGM (100%) 2/7/2005 2/28/2030 155.56 Osisko Gold Royalties Ltd. (5%)
506236 Mineral Claim Cariboo Gold BGM (100%) 2/7/2005 2/28/2030 738.15 Osisko Gold Royalties Ltd. (5%)
506315 Mineral Claim Cariboo Gold BGM (100%) 2/8/2005 2/28/2030 894.11 Osisko Gold Royalties Ltd. (5%)
506436 Mineral Claim Cariboo Gold BGM (100%) 2/9/2005 2/28/2030 408.28 Osisko Gold Royalties Ltd. (5%)
506440 Mineral Claim Cariboo Gold BGM (100%) 2/9/2005 2/28/2030 972.35 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2%)
506489 Mineral Claim Cariboo Gold BGM (100%) 2/9/2005 2/28/2030 388.47 Osisko Gold Royalties Ltd. (5%)
506493 Mineral Claim Cariboo Gold BGM (100%) 2/9/2005 2/28/2030 1549.54 Osisko Gold Royalties Ltd. (5%)
506497 Mineral Claim Cariboo Gold BGM (100%) 2/9/2005 2/28/2030 853.84 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. / Osisko Gold Royalties Ltd (partial) (2%)
506614 Mineral Claim Cariboo Gold BGM (100%) 2/10/2005 12/11/2030 1167.7 Osisko Gold Royalties Ltd. (5%)
506618 Mineral Claim Cariboo Gold BGM (100%) 2/10/2005 2/28/2030 622.63 Osisko Gold Royalties Ltd. (5%)
506620 Mineral Claim Cariboo Gold BGM (100%) 2/10/2005 2/28/2030 933.89 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2%), Osisko
Gold Royalties Ltd. (partial) (2%), Osisko Gold Royalties Ltd. (partial) (2%)
506630 Mineral Claim Cariboo Gold BGM (100%) 2/10/2005 2/28/2030 350.79 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd (partial) (2%)
506637 Mineral Claim Cariboo Gold BGM (100%) 2/10/2005 2/28/2030 1131.33 Osisko Gold Royalties Ltd. (5%), & Osisko Gold Royalties Ltd. (partial) (2%),
Osisko Gold Royalties Ltd. (partial) (2.5%)
             
506658 Mineral Claim Cariboo Gold BGM (100%) 2/10/2005 2/28/2030 506.36 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2%)
506720 Mineral Claim Cariboo Gold BGM (100%) 2/10/2005 2/28/2030 1085.46 Osisko Gold Royalties Ltd. (5%), Charnobay/Wells Syndicate (partial) (3%)
506721 Mineral Claim Cariboo Gold BGM (100%) 2/10/2005 2/28/2030 1070.04 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2%), Osisko
Gold Royalties Ltd. (partial) (2%)
506956 Mineral Claim Cariboo Gold BGM (100%) 2/11/2005 12/11/2030 1247.95 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2%), Osisko Gold Royalties Ltd. (partial) (2.5%)
507131 Mineral Claim Cariboo Gold BGM (85%), Starr Peak Exploration (12.5%), Shane
Morgan Williams (2.5%)
2/14/2005 2/28/2030 562.74 Osisko Gold Royalties Ltd. (5%)



Title # Type Property Owner Issue Date Good to Date Area (ha) Royalties
507132 Mineral Claim Cariboo Gold BGM (97.5%), Shane Morgan Williams (2.5%) 2/14/2005 2/28/2030 931.38 Osisko Gold Royalties Ltd. (5%), William G. Timmins
(partial) (2.5%)
507133 Mineral Claim Cariboo Gold BGM (97.5%), Shane Morgan Williams (2.5%) 2/14/2005 2/28/2030 1339.02 Osisko Gold Royalties Ltd. (5%)
507134 Mineral Claim Cariboo Gold BGM (97.5%), Shane Morgan Williams (2.5%) 2/14/2005 2/28/2030 543.03 Osisko Gold Royalties Ltd. (5%), William G. Timmins
(partial) (2.5%), Osisko Gold Royalties Ltd.
(partial) (2%)
507135 Mineral Claim Cariboo Gold BGM (97.5%), Shane Morgan Williams (2.5%) 2/14/2005 2/28/2030 911.6 Osisko Gold Royalties Ltd. (5%)
507136 Mineral Claim Cariboo Gold BGM (97.5%), Shane Morgan Williams (2.5%) 2/14/2005 2/28/2030 872.37 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd, Osisko Gold Royalties
Ltd. (partial) (2%)
507247 Mineral Claim Cariboo Gold BGM (100%) 2/15/2005 2/28/2030 698.82 Osisko Gold Royalties Ltd. (5%)
507248 Mineral Claim Cariboo Gold BGM (100%) 2/15/2005 2/28/2030 621.3 Osisko Gold Royalties Ltd. (5%)
507259 Mineral Claim Cariboo Gold BGM (100%) 2/15/2005 2/28/2030 252.33 Osisko Gold Royalties Ltd. (5%)
507260 Mineral Claim Cariboo Gold BGM (100%) 2/15/2005 2/28/2030 19.41 Osisko Gold Royalties Ltd. (5%)
507261 Mineral Claim Cariboo Gold BGM (100%) 2/15/2005 2/28/2030 620.63 Osisko Gold Royalties Ltd. (5%)
507264 Mineral Claim Cariboo Gold BGM (100%) 2/15/2005 2/28/2030 1026.62 Osisko Gold Royalties Ltd. (5%), Charnobay/Wells Syndicate
(partial) (3%)
507265 Mineral Claim Cariboo Gold BGM (100%) 2/15/2005 2/28/2030 542.59 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd, Osisko Gold Royalties
Ltd. (partial) (2%)
507288 Mineral Claim Cariboo Gold BGM (100%) 2/16/2005 2/28/2030 426.36 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd, Osisko Gold Royalties Ltd. (partial) (2%)
507304 Mineral Claim Cariboo Gold BGM (100%) 2/16/2005 2/28/2030 388.2 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. / Osisko Gold Royalties
Ltd (partial) (2%)
507309 Mineral Claim Cariboo Gold BGM (100%) 2/16/2005 2/28/2030 1030.24 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd.
(partial) (1%)
508778 Mineral Claim Cariboo Gold BGM (100%) 3/11/2005 2/28/2030 775.28 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd, Osisko Gold Royalties
Ltd. (partial) (2%)
508905 Mineral Claim Cariboo Gold BGM (100%) 3/14/2005 2/28/2030 871.72 Osisko Gold Royalties Ltd. (5%)
509015 Mineral Claim Cariboo Gold BGM (100%) 3/16/2005 2/28/2030 193.86 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd, Osisko Gold Royalties Ltd. (partial) (2%)
509017 Mineral Claim Cariboo Gold BGM (100%) 3/16/2005 2/28/2030 639.85 Osisko Gold Royalties Ltd. (5%), William G. Timmins (partial) (2.5%), Osisko Gold
Royalties Ltd. (partial) (2%)
509179 Mineral Claim Cariboo Gold BGM (100%) 3/17/2005 2/28/2030 833.23 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd, Osisko Gold Royalties
Ltd. (partial) (2%)
511280 Mineral Claim QR BGM (100%) 4/20/2005 12/8/2024 588.13 Osisko Gold Royalties Ltd. (5%), Foxcorp Holdings Ltd. (NOP) (partial) (2.5%),
Revolution Technologies Inc. (NOP) (partial) (2.5%), Newmont Goldcorp Corp.
(partial) (1%)
512571 Mineral Claim Cariboo Gold BGM (85%), Starr Peak Exploration (12.5%), Shane
Morgan Williams (2.5%)
5/14/2005 2/28/2030 484.93 Osisko Gold Royalties Ltd. (5%), William G. Timmins
(partial) (2.5%)
512739 Mineral Claim Cariboo Gold BGM (100%) 5/16/2005 2/28/2030 877.72 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2.5%),
Roundtop Exploration Inc.
(partial) (2%), Osisko Gold Royalties Ltd & Osisko Gold Royalties Ltd.
(partial) (2%)
512795 Mineral Claim Cariboo Gold BGM (97.5%), Shane Morgan Williams (2.5%) 5/17/2005 2/28/2030 155.22 Osisko Gold Royalties Ltd. (5%)
Osisko Gold Royalties Ltd. (5%), Foxcorp Holdings Ltd. (NOP) (partial) (2.5%),
512954 Mineral Claim QR BGM (100%) 5/18/2005 12/8/2024 607.4 Revolution Technologies Inc. (NOP) (partial) (2.5%), Newmont Goldcorp Corp.
(partial) (1%)
512957 Mineral Claim QR BGM (100%) 5/18/2005 12/8/2024 528.81 Osisko Gold Royalties Ltd. (5%)
513739 Mineral Claim Cariboo Gold BGM (100%) 6/1/2005 2/28/2030 484.88 Osisko Gold Royalties Ltd. (5%), William G. Timmins
(partial) (2.5%)
514442 Mineral Claim Cariboo Gold BGM (100%) 6/13/2005 2/28/2030 155.75 Osisko Gold Royalties Ltd. (5%)
514446 Mineral Claim Cariboo Gold BGM (100%) 6/13/2005 2/28/2030 291.87 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2%)
517260 Mineral Claim Cariboo Gold BGM (100%) 7/12/2005 2/28/2030 38 87 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd.
(partial) (1%)



Title # Type Property Owner Issue Date Good to Date Area (ha) Royalties
517416 Mineral Claim Cariboo Gold BGM (100%) 7/12/2005 2/28/2030 58.28 Osisko Gold Royalties Ltd. (5%)
517423 Mineral Claim Cariboo Gold BGM (100%) 7/12/2005 2/28/2030 252.39 Osisko Gold Royalties Ltd. (5%)
517433 Mineral Claim Cariboo Gold BGM (100%) 7/12/2005 2/28/2030 19.41 Osisko Gold Royalties Ltd. (5%)
519556 Mineral Claim Cariboo Gold BGM (100%) 8/31/2005 2/28/2030 485.01 Osisko Gold Royalties Ltd. (5%)
519559 Mineral Claim Cariboo Gold BGM (100%) 8/31/2005 2/28/2030 484.79 Osisko Gold Royalties Ltd. (5%)
519563 Mineral Claim Cariboo Gold BGM (100%) 8/31/2005 2/28/2030 484.6 Osisko Gold Royalties Ltd. (5%)
520330 Mineral Claim QR BGM (100%) 9/22/2005 12/8/2024 78.44 Osisko Gold Royalties Ltd. (5%)
521241 Mineral Claim Cariboo Gold BGM (100%) 10/15/2005 2/28/2030 485.66 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd.
(partial) (1%)
521242 Mineral Claim Cariboo Gold BGM (100%) 10/15/2005 2/28/2030 486.17 Osisko Gold Royalties Ltd. (5%)
521329 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 2/28/2030 486.72 Osisko Gold Royalties Ltd. (5%)
521330 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 2/28/2030 486.84 Osisko Gold Royalties Ltd. (5%)
521331 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 2/28/2030 487.11 Osisko Gold Royalties Ltd. (5%)
521332 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 12/11/2030 487.4 Osisko Gold Royalties Ltd. (5%)
521333 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 12/11/2030 487.63 Osisko Gold Royalties Ltd. (5%)
521336 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 12/11/2030 487.79 Osisko Gold Royalties Ltd. (5%)
521337 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 2/28/2030 486.69 Osisko Gold Royalties Ltd. (5%)
521338 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 12/11/2030 486.69 Osisko Gold Royalties Ltd. (5%)
521339 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 12/11/2030 488.08 Osisko Gold Royalties Ltd. (5%)
521340 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 2/28/2030 487.96 Osisko Gold Royalties Ltd. (5%)
521342 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 2/28/2030 486.75 Osisko Gold Royalties Ltd. (5%)
521346 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 2/28/2030 487.06 Osisko Gold Royalties Ltd. (5%)
521348 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 2/28/2030 487.04 Osisko Gold Royalties Ltd. (5%)
521349 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 12/11/2030 486.93 Osisko Gold Royalties Ltd. (5%)
521350 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 12/11/2030 486.94 Osisko Gold Royalties Ltd. (5%)
521351 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 12/11/2030 487.17 Osisko Gold Royalties Ltd. (5%)
521352 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 12/11/2030 487.35 Osisko Gold Royalties Ltd. (5%)
521353 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 12/11/2030 487.35 Osisko Gold Royalties Ltd. (5%)
521356 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 2/28/2030 487.43 Osisko Gold Royalties Ltd. (5%)
521357 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 2/28/2030 487.19 Osisko Gold Royalties Ltd. (5%)
521358 Mineral Claim Cariboo Gold BGM (100%) 10/19/2005 2/28/2030 428.52 Osisko Gold Royalties Ltd. (5%)
521829 Mineral Claim Cariboo Gold BGM (100%) 11/2/2005 12/11/2030 488.14 Osisko Gold Royalties Ltd. (5%)
521839 Mineral Claim Cariboo Gold BGM (100%) 11/2/2005 12/11/2030 488.2 Osisko Gold Royalties Ltd. (5%)
521844 Mineral Claim Cariboo Gold BGM (100%) 11/2/2005 2/28/2030 488.43 Osisko Gold Royalties Ltd. (5%)
521852 Mineral Claim Cariboo Gold BGM (100%) 11/2/2005 2/28/2030 488.19 Osisko Gold Royalties Ltd. (5%)
521872 Mineral Claim Cariboo Gold BGM (100%) 11/2/2005 2/28/2030 488.16 Osisko Gold Royalties Ltd. (5%)
521877 Mineral Claim Cariboo Gold BGM (100%) 11/2/2005 2/28/2030 488.45 Osisko Gold Royalties Ltd. (5%)
521880 Mineral Claim Cariboo Gold BGM (100%) 11/2/2005 2/28/2030 488.32 Osisko Gold Royalties Ltd. (5%)
521881 Mineral Claim Cariboo Gold BGM (100%) 11/2/2005 2/28/2030 488.65 Osisko Gold Royalties Ltd. (5%)



Title # Type Property Owner Issue Date Good to Date Area (ha) Royalties
521883 Mineral Claim Cariboo Gold BGM (100%) 11/2/2005 2/28/2030 390.78 Osisko Gold Royalties Ltd. (5%)
522125 Mineral Claim Cariboo Gold BGM (100%) 11/8/2005 2/28/2030 581.01 Osisko Gold Royalties Ltd. (5%), Charnobay/Wells Syndicate (partial) (3%)
528996 Mineral Claim Cariboo Gold BGM (100%) 2/27/2006 2/28/2030 466.26 Osisko Gold Royalties Ltd. (5%)
529036 Mineral Claim Cariboo Gold BGM (100%) 2/27/2006 2/28/2030 19.41 Osisko Gold Royalties Ltd. (5%)
529712 Mineral Claim Cariboo Gold BGM (100%) 3/7/2006 2/28/2030 330.14 Osisko Gold Royalties Ltd. (5%)
529713 Mineral Claim Cariboo Gold BGM (100%) 3/7/2006 2/28/2030 720.92 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd (partial) (2%), Osisko Gold Royalties Ltd. (partial) (2.5%), Osisko Gold Royalties Ltd. (partial) (2%)
529715 Mineral Claim Cariboo Gold BGM (100%) 3/7/2006 2/28/2030 835.61 Osisko Gold Royalties Ltd. (5%)
529717 Mineral Claim Cariboo Gold BGM (100%) 3/7/2006 2/28/2030 545.68 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2.5%)
529719 Mineral Claim Cariboo Gold BGM (100%) 3/7/2006 2/28/2030 757.72 Osisko Gold Royalties Ltd. (5%), & Osisko Gold Royalties Ltd. (partial) (1%),
Osisko Gold Royalties Ltd. (partial) (2%)
529720 Mineral Claim Cariboo Gold BGM (100%) 3/7/2006 2/28/2030 603.8 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2%)
529721 Mineral Claim Cariboo Gold BGM (100%) 3/7/2006 2/28/2030 1615.57 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2%), Osisko
Gold Royalties Ltd. (partial) (2%)
529722 Mineral Claim Cariboo Gold BGM (100%) 3/7/2006 12/11/2030 507.38 Osisko Gold Royalties Ltd. (5%)
535526 Mineral Claim Cariboo Gold BGM (100%) 6/13/2006 2/28/2030 465.85 Osisko Gold Royalties Ltd. (5%)
535671 Mineral Claim Cariboo Gold BGM (100%) 6/14/2006 2/28/2030 953.05 Osisko Gold Royalties Ltd. (5%)
535855 Mineral Claim Cariboo Gold BGM (100%) 6/17/2006 2/28/2030 39.02 Osisko Gold Royalties Ltd. (5%)
536691 Mineral Claim Cariboo Gold BGM (100%) 7/7/2006 2/28/2030 467.11 Osisko Gold Royalties Ltd. (5%)
537354 Mineral Claim Cariboo Gold BGM (100%) 7/17/2006 2/28/2030 19.5 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2.5%)
546306 Mineral Claim Cariboo Gold BGM (100%) 12/1/2006 2/28/2030 331.89 Osisko Gold Royalties Ltd. (5%)
546307 Mineral Claim Cariboo Gold BGM (100%) 12/1/2006 2/28/2030 815.89 Osisko Gold Royalties Ltd. (5%)
546308 Mineral Claim Cariboo Gold BGM (100%) 12/1/2006 2/28/2030 504.85 Osisko Gold Royalties Ltd. (5%)
546309 Mineral Claim Cariboo Gold BGM (100%) 12/1/2006 2/28/2030 1438.5 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (1%), Osisko Gold Royalties Ltd. (partial) (2%), Osisko Gold Royalties Ltd. (partial) (2%)
546310 Mineral Claim Cariboo Gold BGM (100%) 12/1/2006 2/28/2030 854.59 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (1%)
546311 Mineral Claim Cariboo Gold BGM (100%) 12/1/2006 2/28/2030 563.12 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. / Osisko Gold Royalties
Ltd (partial) (2%)
546314 Mineral Claim Cariboo Gold BGM (100%) 12/1/2006 2/28/2030 1299.19 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. / Osisko Gold Royalties
Ltd (partial) (2%), Osisko Gold Royalties Ltd & Osisko Gold Royalties Ltd. (partial)
(2%)
546315 Mineral Claim Cariboo Gold BGM (100%) 12/1/2006 2/28/2030 1027.11 Osisko Gold Royalties Ltd. (5%), Charnobay/Wells Syndicate
(partial) (3%)
546611 Mineral Claim Cariboo Gold BGM (100%) 12/5/2006 2/28/2030 604.62 Osisko Gold Royalties Ltd. (5%)
546612 Mineral Claim Cariboo Gold BGM (100%) 12/5/2006 12/11/2030 719.15 Osisko Gold Royalties Ltd. (5%)
546613 Mineral Claim Cariboo Gold BGM (100%) 12/5/2006 2/28/2030 663.22 Osisko Gold Royalties Ltd. (5%)
546614 Mineral Claim Cariboo Gold BGM (100%) 12/5/2006 2/28/2030 619.46 Osisko Gold Royalties Ltd. (5%)
546617 Mineral Claim Cariboo Gold BGM (100%) 12/5/2006 2/28/2030 955.51 Osisko Gold Royalties Ltd. (5%), Estate of Bryan Muloin
(partial) (remaining 3% of 2% NSR)
546620 Mineral Claim Cariboo Gold BGM (100%) 12/5/2006 2/28/2030 954.67 Osisko Gold Royalties Ltd. (5%), Estate of Bryan Muloin
(partial) (remaining 3% of 2% NSR)
546722 Mineral Claim Cariboo Gold BGM (100%) 12/6/2006 2/28/2030 1147.58 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2%), Osisko
Gold Royalties Ltd. (partial) (2%)
546723 Mineral Claim Cariboo Gold BGM (100%) 12/6/2006 2/28/2030 702.56 Osisko Gold Royalties Ltd. (5%)
546724 Mineral Claim Cariboo Gold BGM (100%) 12/6/2006 2/28/2030 837.09 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2%)



Title # Type Property Owner Issue Date Good to Date Area (ha) Royalties
546725 Mineral Claim Cariboo Gold BGM (100%) 12/6/2006 2/28/2030 953.6 Osisko Gold Royalties Ltd. (5%)
546726 Mineral Claim Cariboo Gold BGM (100%) 12/6/2006 2/28/2030 971.93 Osisko Gold Royalties Ltd. (5%)
546727 Mineral Claim Cariboo Gold BGM (100%) 12/6/2006 2/28/2030 952.84 Osisko Gold Royalties Ltd. (5%)
554735 Mineral Claim Cariboo Gold BGM (100%) 3/20/2007 2/28/2030 484.18 Osisko Gold Royalties Ltd. (5%)
554737 Mineral Claim Cariboo Gold BGM (100%) 3/20/2007 2/28/2030 484.18 Osisko Gold Royalties Ltd. (5%)
554739 Mineral Claim Cariboo Gold BGM (100%) 3/20/2007 2/28/2030 483.95 Osisko Gold Royalties Ltd. (5%)
554740 Mineral Claim Cariboo Gold BGM (100%) 3/20/2007 2/28/2030 483.95 Osisko Gold Royalties Ltd. (5%)
554741 Mineral Claim Cariboo Gold BGM (100%) 3/20/2007 2/28/2030 484.16 Osisko Gold Royalties Ltd. (5%)
554742 Mineral Claim Cariboo Gold BGM (100%) 3/20/2007 2/28/2030 483.93 Osisko Gold Royalties Ltd. (5%)
554743 Mineral Claim Cariboo Gold BGM (100%) 3/20/2007 2/28/2030 484.16 Osisko Gold Royalties Ltd. (5%)
554745 Mineral Claim Cariboo Gold BGM (100%) 3/20/2007 2/28/2030 483.7 Osisko Gold Royalties Ltd. (5%)
554746 Mineral Claim Cariboo Gold BGM (100%) 3/20/2007 2/28/2030 483.98 Osisko Gold Royalties Ltd. (5%)
554747 Mineral Claim Cariboo Gold BGM (100%) 3/20/2007 2/28/2030 484.12 Osisko Gold Royalties Ltd. (5%)
554748 Mineral Claim Cariboo Gold BGM (100%) 3/20/2007 2/28/2030 483.96 Osisko Gold Royalties Ltd. (5%)
554749 Mineral Claim Cariboo Gold BGM (100%) 3/20/2007 2/28/2030 483.74 Osisko Gold Royalties Ltd. (5%)
554750 Mineral Claim Cariboo Gold BGM (100%) 3/20/2007 2/28/2030 483.99 Osisko Gold Royalties Ltd. (5%)
554802 Mineral Claim Cariboo Gold BGM (100%) 3/21/2007 2/28/2030 38.71 Osisko Gold Royalties Ltd. (5%)
564597 Mineral Claim Cariboo Gold BGM (100%) 8/15/2007 2/28/2030 19.52 Osisko Gold Royalties Ltd. (5%)
564598 Mineral Claim Cariboo Gold BGM (100%) 8/15/2007 2/28/2030 19.5 Osisko Gold Royalties Ltd. (5%)
567677 Mineral Claim Cariboo Gold BGM (100%) 10/9/2007 2/28/2030 39 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2.5%)
567678 Mineral Claim Cariboo Gold BGM (100%) 10/9/2007 2/28/2030 19.5 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2.5%)
572001 Mineral Claim Cariboo Gold BGM (100%) 12/15/2007 2/28/2030 19.51 Osisko Gold Royalties Ltd. (5%)
572011 Mineral Claim Cariboo Gold BGM (100%) 12/16/2007 2/28/2030 19.51 Osisko Gold Royalties Ltd. (5%)
572348 Mineral Claim Cariboo Gold BGM (100%) 12/21/2007 2/28/2030 19.51 Osisko Gold Royalties Ltd. (5%)
572437 Mineral Claim Cariboo Gold BGM (100%) 12/23/2007 2/28/2030 19.5 Osisko Gold Royalties Ltd. (5%)
573880 Mineral Claim Cariboo Gold BGM (100%) 1/16/2008 2/28/2030 38.98 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2.5%)
577422 Mineral Claim Cariboo Gold BGM (100%) 2/28/2008 2/28/2030 349.9 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2%)
581059 Mineral Claim Cariboo Gold BGM (100%) 4/12/2008 12/11/2030 468.39 Osisko Gold Royalties Ltd. (5%), Dustin Alsager Rivard (whole) (2%)
592159 Mineral Claim Cariboo Gold BGM (100%) 9/29/2008 2/28/2030 350.74 Osisko Gold Royalties Ltd. (5%), Estate of Bryan Muloin
(partial) (remaining 3% of 2% NSR)
593162 Mineral Claim Cariboo Gold BGM (100%) 10/20/2008 2/28/2030 58.29 Osisko Gold Royalties Ltd. (5%)
593959 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 485.28 Osisko Gold Royalties Ltd. (5%)
593960 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 485.04 Osisko Gold Royalties Ltd. (5%)
593961 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 484.8 Osisko Gold Royalties Ltd. (5%)
593962 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 484.79 Osisko Gold Royalties Ltd. (5%)
593963 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 485.03 Osisko Gold Royalties Ltd. (5%)
593965 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 485.27 Osisko Gold Royalties Ltd. (5%)
593966 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 466.03 Osisko Gold Royalties Ltd. (5%)
593967 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 465.87 Osisko Gold Royalties Ltd. (5%)
593968 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 465.68 Osisko Gold Royalties Ltd. (5%)



Title # Type Property Owner Issue Date Good to Date Area (ha) Royalties
593969 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 465.5 Osisko Gold Royalties Ltd. (5%)
593970 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 465.21 Osisko Gold Royalties Ltd. (5%)
593971 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 466 Osisko Gold Royalties Ltd. (5%)
593972 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 465.34 Osisko Gold Royalties Ltd. (5%)
593973 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 387.63 Osisko Gold Royalties Ltd. (5%)
593974 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 77.64 Osisko Gold Royalties Ltd. (5%)
593975 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 155.26 Osisko Gold Royalties Ltd. (5%)
593979 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 485.22 Osisko Gold Royalties Ltd. (5%)
593980 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 485 Osisko Gold Royalties Ltd. (5%)
593981 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 484.77 Osisko Gold Royalties Ltd. (5%)
593982 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 484.62 Osisko Gold Royalties Ltd. (5%)
593983 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 484.62 Osisko Gold Royalties Ltd. (5%)
593984 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 484.87 Osisko Gold Royalties Ltd. (5%)
593985 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 484.87 Osisko Gold Royalties Ltd. (5%)
593986 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 465.72 Osisko Gold Royalties Ltd. (5%)
593987 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 485.19 Osisko Gold Royalties Ltd. (5%)
593988 Mineral Claim Cariboo Gold BGM (100%) 11/6/2008 2/28/2030 252.34 Osisko Gold Royalties Ltd. (5%)
594001 Mineral Claim Cariboo Gold BGM (100%) 11/7/2008 2/28/2030 58.18 Osisko Gold Royalties Ltd. (5%)
594002 Mineral Claim Cariboo Gold BGM (100%) 11/7/2008 2/28/2030 38.8 Osisko Gold Royalties Ltd. (5%)
594003 Mineral Claim Cariboo Gold BGM (100%) 11/7/2008 2/28/2030 38.81 Osisko Gold Royalties Ltd. (5%)
595151 Mineral Claim Cariboo Gold BGM (100%) 12/1/2008 2/28/2030 116.51 Osisko Gold Royalties Ltd. (5%)
595157 Mineral Claim Cariboo Gold BGM (100%) 12/1/2008 2/28/2030 388.25 Osisko Gold Royalties Ltd. (5%)
595164 Mineral Claim Cariboo Gold BGM (100%) 12/1/2008 2/28/2030 427.12 Osisko Gold Royalties Ltd. (5%)
595165 Mineral Claim Cariboo Gold BGM (100%) 12/1/2008 2/28/2030 116.53 Osisko Gold Royalties Ltd. (5%)
595166 Mineral Claim Cariboo Gold BGM (100%) 12/1/2008 2/28/2030 38.83 Osisko Gold Royalties Ltd. (5%)
595167 Mineral Claim Cariboo Gold BGM (100%) 12/1/2008 2/28/2030 77.68 Osisko Gold Royalties Ltd. (5%)
595168 Mineral Claim Cariboo Gold BGM (100%) 12/1/2008 2/28/2030 58.23 Osisko Gold Royalties Ltd. (5%)
596023 Mineral Claim Cariboo Gold BGM (100%) 12/13/2008 2/28/2030 77.5 Osisko Gold Royalties Ltd. (5%)
596024 Mineral Claim Cariboo Gold BGM (100%) 12/13/2008 2/28/2030 464.96 Osisko Gold Royalties Ltd. (5%), Douglas Merrick & Harold Merrick (partial) (2%)
596025 Mineral Claim Cariboo Gold BGM (100%) 12/13/2008 2/28/2030 58.13 Osisko Gold Royalties Ltd. (5%), Douglas Merrick & Harold Merrick (partial) (2%)
596144 Mineral Claim Cariboo Gold BGM (100%) 12/16/2008 2/28/2030 350.6 Osisko Gold Royalties Ltd. (5%)
598430 Mineral Claim Cariboo Gold BGM (100%) 2/1/2009 3/8/2023 97.64 Osisko Gold Royalties Ltd. (5%)
600139 Mineral Claim Cariboo Gold BGM (100%) 2/28/2009 2/28/2030 155.27 Osisko Gold Royalties Ltd. (5%)
600140 Mineral Claim Cariboo Gold BGM (100%) 2/28/2009 2/28/2030 38.82 Osisko Gold Royalties Ltd. (5%)
600141 Mineral Claim Cariboo Gold BGM (100%) 2/28/2009 2/28/2030 19.41 Osisko Gold Royalties Ltd. (5%)
600142 Mineral Claim Cariboo Gold BGM (100%) 2/28/2009 2/28/2030 135.93 Osisko Gold Royalties Ltd. (5%)
600143 Mineral Claim Cariboo Gold BGM (100%) 2/28/2009 2/28/2030 213.54 Osisko Gold Royalties Ltd. (5%)
600144 Mineral Claim Cariboo Gold BGM (100%) 2/28/2009 2/28/2030 19.41 Osisko Gold Royalties Ltd. (5%)
600145 Mineral Claim Cariboo Gold BGM (100%) 2/28/2009 2/28/2030 77.66 Osisko Gold Royalties Ltd. (5%)
624892 Mineral Claim Cariboo Gold BGM (100%) 8/27/2009 2/28/2030 116.51 Osisko Gold Royalties Ltd. (5%)



Title # Type Property Owner Issue Date Good to Date Area (ha) Royalties
624894 Mineral Claim Cariboo Gold BGM (100%) 8/27/2009 2/28/2030 38.84 Osisko Gold Royalties Ltd. (5%)
624895 Mineral Claim Cariboo Gold BGM (100%) 8/27/2009 2/28/2030 19.42 Osisko Gold Royalties Ltd. (5%)
625567 Mineral Claim Cariboo Gold BGM (100%) 8/29/2009 2/28/2030 19.42 Osisko Gold Royalties Ltd. (5%)
667163 Mineral Claim Cariboo Gold BGM (100%) 11/10/2009 12/11/2030 77.77 Osisko Gold Royalties Ltd. (5%)
675423 Mineral Claim QR BGM (100%) 11/27/2009 12/8/2024 489.58 Osisko Gold Royalties Ltd. (5%)
675443 Mineral Claim QR BGM (100%) 11/27/2009 12/8/2024 489.35 Osisko Gold Royalties Ltd. (5%)
675444 Mineral Claim QR BGM (100%) 11/27/2009 12/8/2024 450.24 Osisko Gold Royalties Ltd. (5%)
675445 Mineral Claim QR BGM (100%) 11/27/2009 12/7/2024 469.74 Osisko Gold Royalties Ltd. (5%)
675448 Mineral Claim QR BGM (100%) 11/27/2009 12/7/2024 469.75 Osisko Gold Royalties Ltd. (5%)
755342 Mineral Claim Cariboo Gold BGM (100%) 4/23/2010 2/28/2030 389.34 Osisko Gold Royalties Ltd. (5%)
755362 Mineral Claim Cariboo Gold BGM (100%) 4/23/2010 2/28/2030 389.53 Osisko Gold Royalties Ltd. (5%)
755382 Mineral Claim Cariboo Gold BGM (100%) 4/23/2010 2/28/2030 467.64 Osisko Gold Royalties Ltd. (5%)
755402 Mineral Claim Cariboo Gold BGM (100%) 4/23/2010 2/28/2030 486.7 Osisko Gold Royalties Ltd. (5%)
755422 Mineral Claim Cariboo Gold BGM (100%) 4/23/2010 2/28/2030 486.94 Osisko Gold Royalties Ltd. (5%)
755442 Mineral Claim Cariboo Gold BGM (100%) 4/23/2010 2/28/2030 486.88 Osisko Gold Royalties Ltd. (5%)
755462 Mineral Claim Cariboo Gold BGM (100%) 4/23/2010 2/28/2030 467.43 Osisko Gold Royalties Ltd. (5%)
780203 Mineral Claim QR BGM (100%) 5/27/2010 12/7/2024 19.58 Osisko Gold Royalties Ltd. (5%)
780562 Mineral Claim Cariboo Gold BGM (100%) 5/27/2010 2/28/2030 193.97 Osisko Gold Royalties Ltd. (5%)
835729 Mineral Claim Cariboo Gold BGM (100%) 10/12/2010 2/28/2030 448.31 Osisko Gold Royalties Ltd. (5%)
835730 Mineral Claim Cariboo Gold BGM (100%) 10/12/2010 2/28/2030 487.49 Osisko Gold Royalties Ltd. (5%)
835731 Mineral Claim Cariboo Gold BGM (100%) 10/12/2010 2/28/2030 487.47 Osisko Gold Royalties Ltd. (5%)
835733 Mineral Claim Cariboo Gold BGM (100%) 10/12/2010 2/28/2030 390.22 Osisko Gold Royalties Ltd. (5%)
835734 Mineral Claim Cariboo Gold BGM (100%) 10/12/2010 2/28/2030 487.72 Osisko Gold Royalties Ltd. (5%)
837502 Mineral Claim QR BGM (100%) 11/4/2010 12/7/2024 156.89 Osisko Gold Royalties Ltd. (5%)
838953 Mineral Claim QR BGM (100%) 11/25/2010 12/7/2024 392.06 Osisko Gold Royalties Ltd. (5%)
838954 Mineral Claim QR BGM (100%) 11/25/2010 12/7/2024 391.86 Osisko Gold Royalties Ltd. (5%)
850212 Mineral Claim QR BGM (100%) 3/31/2011 12/7/2024 489.54 Osisko Gold Royalties Ltd. (5%)
850217 Mineral Claim QR BGM (100%) 3/31/2011 12/7/2024 176.21 Osisko Gold Royalties Ltd. (5%)
853622 Mineral Claim Cariboo Gold BGM (100%) 5/5/2011 2/28/2030 116.56 Osisko Gold Royalties Ltd. (5%)
854573 Mineral Claim QR BGM (100%) 5/16/2011 12/7/2024 489.63 Osisko Gold Royalties Ltd. (5%)
855732 Mineral Claim QR BGM (100%) 5/26/2011 12/7/2024 391.87 Osisko Gold Royalties Ltd. (5%)
856509 Mineral Claim Cariboo Gold BGM (100%) 6/9/2011 2/28/2030 407.82 Osisko Gold Royalties Ltd. (5%)
856510 Mineral Claim Cariboo Gold BGM (100%) 6/9/2011 2/28/2030 155.41 Osisko Gold Royalties Ltd. (5%)
896709 Mineral Claim Cariboo Gold BGM (100%) 9/13/2011 2/28/2030 913.22 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd.
(partial) (1%)
928311 Mineral Claim Cariboo Gold BGM (100%) 11/6/2011 2/28/2030 487.33 Osisko Gold Royalties Ltd. (5%)
1013933 Mineral Claim QR BGM (100%) 10/23/2012 12/8/2024 39.18 Osisko Gold Royalties Ltd. (5%)
1013935 Mineral Claim QR BGM (100%) 10/23/2012 12/8/2024 39.18 Osisko Gold Royalties Ltd. (5%)
1014607 Mineral Claim Cariboo Gold BGM (100%) 11/19/2012 12/11/2030 19.52 Osisko Gold Royalties Ltd. (5%)
1017340 Mineral Claim QR BGM (100%) 3/1/2013 12/8/2024 58.78 Osisko Gold Royalties Ltd. (5%)



Title # Type Property Owner Issue Date Good to Date Area (ha) Royalties
1019141 Mineral Claim QR BGM (100%) 5/2/2013 12/8/2024 274.7 Osisko Gold Royalties Ltd. (5%)
1019143 Mineral Claim QR BGM (100%) 5/2/2013 12/8/2024 470.94 Osisko Gold Royalties Ltd. (5%)
1019146 Mineral Claim QR BGM (100%) 5/2/2013 12/8/2024 157.01 Osisko Gold Royalties Ltd. (5%)
              Osisko Gold Royalties Ltd. (5%), Foxcorp Holdings Ltd. (NOP) (partial) (2.5%),
1019149 Mineral Claim QR BGM (100%) 5/2/2013 12/8/2024 137.32 Revolution Technologies Inc. (NOP) (partial) (2.5%), Newmont Goldcorp Corp.
              (partial) (1%)
1019151 Mineral Claim QR BGM (100%) 5/2/2013 12/8/2024 294.36 Osisko Gold Royalties Ltd. (5%)
1019154 Mineral Claim QR BGM (100%) 5/2/2013 12/8/2024 78.47 Osisko Gold Royalties Ltd. (5%)
1019158 Mineral Claim QR BGM (100%) 5/2/2013 12/8/2024 19.62 Osisko Gold Royalties Ltd. (5%)
1019172 Mineral Claim QR BGM (100%) 5/2/2013 12/8/2024 156.93 Osisko Gold Royalties Ltd. (5%), Foxcorp Holdings Ltd. (NOP) (partial) (2.5%),
Revolution Technologies Inc. (NOP) (partial) (2.5%), Newmont Goldcorp Corp.
(partial) (1%)
1020349 Mineral Claim QR BGM (100%) 6/16/2013 12/8/2024 293.75 Osisko Gold Royalties Ltd. (5%)
1020538 Mineral Claim QR BGM (100%) 6/26/2013 12/8/2024 195.88 Osisko Gold Royalties Ltd. (5%)
1022111 Mineral Claim QR BGM (100%) 9/5/2013 12/8/2024 137.15 Osisko Gold Royalties Ltd. (5%)
1023288 Mineral Claim QR BGM (100%) 10/24/2013 12/8/2024 78.38 Osisko Gold Royalties Ltd. (5%)
1027056 Mineral Claim QR BGM (100%) 3/31/2014 12/8/2024 117.57 Osisko Gold Royalties Ltd. (5%)
1027057 Mineral Claim QR BGM (100%) 3/31/2014 12/8/2024 78.47 Osisko Gold Royalties Ltd. (5%)
1027058 Mineral Claim Cariboo Gold BGM (100%) 3/31/2014 2/28/2030 77.66 Osisko Gold Royalties Ltd. (5%)
1033403 Mineral Claim Cariboo Gold BGM (100%) 4/16/2014 12/11/2030 97.64 Osisko Gold Royalties Ltd. (5%)
1033404 Mineral Claim Cariboo Gold BGM (100%) 4/16/2014 12/11/2030 136.67 Osisko Gold Royalties Ltd. (5%)
1028446 Mineral Claim Cariboo Gold BGM (100%) 5/23/2014 12/11/2030 19.52 Osisko Gold Royalties Ltd. (5%)
1028453 Mineral Claim Cariboo Gold BGM (100%) 5/23/2014 2/28/2030 19.52 Osisko Gold Royalties Ltd. (5%)
1028454 Mineral Claim Cariboo Gold BGM (100%) 5/23/2014 12/11/2030 78.08 Osisko Gold Royalties Ltd. (5%)
1028464 Mineral Claim Cariboo Gold BGM (100%) 5/23/2014 2/28/2030 175.33 Osisko Gold Royalties Ltd. (5%)
1029935 Mineral Claim Cariboo Gold BGM (100%) 7/30/2014 2/28/2030 19.49 Osisko Gold Royalties Ltd. (5%), Osisko Gold Royalties Ltd. (partial) (2.5%)
1033303 Mineral Claim Cariboo Gold BGM (100%) 1/11/2015 12/11/2030 19.52 Osisko Gold Royalties Ltd. (5%)
1039381 Mineral Claim Cariboo Gold BGM (100%) 10/18/2015 12/11/2030 19.52 Osisko Gold Royalties Ltd. (5%)
1042345 Mineral Claim Cariboo Gold BGM (100%) 2/26/2016 2/28/2030 1798.94 Osisko Gold Royalties Ltd. (5%)
1042346 Mineral Claim Cariboo Gold BGM (100%) 2/26/2016 2/28/2030 1933.33 Osisko Gold Royalties Ltd. (5%)
1042347 Mineral Claim Cariboo Gold BGM (100%) 2/26/2016 2/28/2030 1932.17 Osisko Gold Royalties Ltd. (5%)
1042348 Mineral Claim Cariboo Gold BGM (100%) 2/26/2016 2/28/2030 1351.8 Osisko Gold Royalties Ltd. (5%)
1045261 Mineral Claim Cariboo Gold BGM (100%) 7/11/2016 2/28/2030 38.87 Osisko Gold Royalties Ltd. (5%)
1045698 Mineral Claim Cariboo Gold BGM (100%) 7/31/2016 12/11/2030 19.52 Osisko Gold Royalties Ltd. (5%)
1045814 Mineral Claim Cariboo Gold BGM (100%) 8/7/2016 12/11/2030 78.11 Osisko Gold Royalties Ltd. (5%)
1050434 Mineral Claim Cariboo Gold BGM (100%) 2/28/2017 12/11/2030 330.42 Osisko Gold Royalties Ltd. (5%)
1050437 Mineral Claim Cariboo Gold BGM (100%) 2/28/2017 12/11/2030 58.29 Osisko Gold Royalties Ltd. (5%)
1050442 Mineral Claim Cariboo Gold BGM (100%) 2/28/2017 12/11/2030 252.61 Osisko Gold Royalties Ltd. (5%)
1050747 Mineral Claim Cariboo Gold BGM (100%) 3/14/2017 2/28/2030 408.25 Osisko Gold Royalties Ltd. (5%)
1050748 Mineral Claim Cariboo Gold BGM (100%) 3/14/2017 2/28/2030 525.22 Osisko Gold Royalties Ltd. (5%)
1050749 Mineral Claim Cariboo Gold BGM (100%) 3/14/2017 2/28/2030 583.41 Osisko Gold Royalties Ltd. (5%)
1050750 Mineral Claim Cariboo Gold BGM (100%) 3/14/2017 12/11/2030 233.36 Osisko Gold Royalties Ltd. (5%)
1050753 Mineral Claim Cariboo Gold BGM (100%) 3/14/2017 12/11/2030 291.72 Osisko Gold Royalties Ltd. (5%)
1050754 Mineral Claim Cariboo Gold BGM (100%) 3/14/2017 2/28/2030 1186.57 Osisko Gold Royalties Ltd. (5%)



Title # Type Property Owner Issue Date Good to Date Area (ha) Royalties
1050755 Mineral Claim Cariboo Gold BGM (100%) 3/14/2017 12/11/2030 641.95 Osisko Gold Royalties Ltd. (5%)
1050768 Mineral Claim Cariboo Gold BGM (100%) 3/15/2017 12/11/2030 680.35 Osisko Gold Royalties Ltd. (5%)
1050769 Mineral Claim Cariboo Gold BGM (100%) 3/15/2017 2/28/2030 116.65 Osisko Gold Royalties Ltd. (5%)
1052290 Mineral Claim Cariboo Gold BGM (100%) 6/1/2017 2/28/2030 78.13 Osisko Gold Royalties Ltd. (5%)
1055004 Mineral Claim Cariboo Gold BGM (100%) 9/19/2017 2/28/2030 19.53 Osisko Gold Royalties Ltd. (5%)
1055005 Mineral Claim Cariboo Gold BGM (100%) 9/19/2017 12/11/2030 58.6 Osisko Gold Royalties Ltd. (5%)
1055083 Mineral Claim Cariboo Gold BGM (100%) 9/21/2017 12/11/2030 195.3 Osisko Gold Royalties Ltd. (5%)
1055084 Mineral Claim Cariboo Gold BGM (100%) 9/21/2017 2/28/2030 214.87 Osisko Gold Royalties Ltd. (5%)
1057242 Mineral Claim Cariboo Gold BGM (100%) 12/26/2017 2/28/2030 58.28 Osisko Gold Royalties Ltd. (5%)
1060121 Mineral Claim Cariboo Gold BGM (100%) 4/18/2018 2/28/2030 1942.27 Osisko Gold Royalties Ltd. (5%)
1060157 Mineral Claim Cariboo Gold BGM (100%) 4/19/2018 2/28/2030 58.61 Osisko Gold Royalties Ltd. (5%)
1060160 Mineral Claim Cariboo Gold BGM (100%) 4/19/2018 2/28/2030 716.9 Osisko Gold Royalties Ltd. (5%)
1060183 Mineral Claim Cariboo Gold BGM (100%) 4/20/2018 12/11/2030 175.75 Osisko Gold Royalties Ltd. (5%)
1069588 Mineral Claim Cariboo Gold BGM (100%) 7/10/2019 7/10/2022 19.5 Osisko Gold Royalties Ltd. (5%)
1072306 Mineral Claim Cariboo Gold BGM (100%) 10/31/2019 2/28/2030 19.4 Osisko Gold Royalties Ltd. (5%)
1072307 Mineral Claim Cariboo Gold BGM (100%) 10/31/2019 2/28/2030 19.4 Osisko Gold Royalties Ltd. (5%)
1092808 Mineral Claim QR BGM (100%) 1/31/2022 1/31/2023 333.3 Osisko Gold Royalties Ltd. (5%)


Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

 

 

 

 

 

APPENDIX 2: LIST OF PLACER CLAIMS AND LEASES

 

 

 

 

 

 

MAY 2022

Appendix 2




Title # Type Property Owner Issue Date Good to Date Area (ha) Royalties
367303 Placer Lease Cariboo Gold BGM (100%) 2/5/1999 2/5/2022 161.77 Osisko Gold Royalties Ltd. (5%)
370373 Placer Lease Cariboo Gold BGM (100%) 10/19/1999 10/19/2022 46.26 Osisko Gold Royalties Ltd. (5%)
384442 Placer Lease Cariboo Gold BGM (100%) 5/15/2001 5/15/2022 254.86 Osisko Gold Royalties Ltd. (5%)
394333 Placer Lease Cariboo Gold BGM (100%) 8/19/2002 8/19/2022 518.8 Osisko Gold Royalties Ltd. (5%)
395284 Placer Lease Cariboo Gold BGM (100%) 8/28/2002 8/28/2022 524.7 Osisko Gold Royalties Ltd. (5%)
396850 Placer Lease Cariboo Gold BGM (100%) 1/20/2003 1/20/2022 271.1 Osisko Gold Royalties Ltd. (5%)
401442 Placer Lease Cariboo Gold BGM (100%) 5/16/2003 5/16/2022 282.36 Osisko Gold Royalties Ltd. (5%)
401340 Placer Lease Cariboo Gold BGM (100%) 5/16/2003 5/16/2022 17 Osisko Gold Royalties Ltd. (5%)
401342 Placer Lease Cariboo Gold BGM (100%) 5/16/2003 5/16/2022 124.55 Osisko Gold Royalties Ltd. (5%)
404854 Placer Lease Cariboo Gold BGM (100%) 11/24/2003 11/24/2022 29.1 Osisko Gold Royalties Ltd. (5%)
514441 Placer Lease Cariboo Gold BGM (100%) 6/13/2005 6/13/2022 104.8 Osisko Gold Royalties Ltd. (5%)
541435 Placer Lease Cariboo Gold BGM (100%) 9/15/2006 9/15/2022 24.76 Osisko Gold Royalties Ltd. (5%)
545967 Placer Lease Cariboo Gold BGM (100%) 11/27/2006 11/27/2021 35.69 Osisko Gold Royalties Ltd. (5%)
560453 Placer Claim Cariboo Gold BGM (100%) 6/11/2007 11/15/2022 19.43 Osisko Gold Royalties Ltd. (5%)
606644 Placer Claim Cariboo Gold BGM (100%) 6/26/2009 11/15/2022 97.23 Osisko Gold Royalties Ltd. (5%)
839402 Placer Claim Cariboo Gold BGM (100%) 12/1/2010 12/31/2021 19.41 Osisko Gold Royalties Ltd. (5%)
1038243 Placer Claim Cariboo Gold BGM (100%) 8/28/2015 8/26/2022 213.66 Osisko Gold Royalties Ltd. (5%)
1042111 Placer Claim Cariboo Gold BGM (100%) 2/17/2016 10/13/2022 174.75 Osisko Gold Royalties Ltd. (5%)
1042112 Placer Claim Cariboo Gold BGM (100%) 2/17/2016 10/13/2022 58.26 Osisko Gold Royalties Ltd. (5%)
1045734 Placer Claim Cariboo Gold BGM (100%) 8/3/2016 8/3/2022 38.8 Osisko Gold Royalties Ltd. (5%)
1046530 Placer Claim Cariboo Gold BGM (100%) 9/8/2016 9/8/2022 19.4 Osisko Gold Royalties Ltd. (5%)
1048024 Placer Claim Cariboo Gold BGM (100%) 11/24/2016 11/24/2022 19.4 Osisko Gold Royalties Ltd. (5%)
1049379 Placer Claim Cariboo Gold BGM (100%) 1/22/2017 1/22/2022 38.82 Osisko Gold Royalties Ltd. (5%)
1049537 Placer Claim Cariboo Gold BGM (100%) 1/27/2017 1/27/2022 19.43 Osisko Gold Royalties Ltd. (5%)
1050158 Placer Claim Cariboo Gold BGM (100%) 2/20/2017 2/20/2022 19.42 Osisko Gold Royalties Ltd. (5%)
1052277 Placer Claim Cariboo Gold BGM (100%) 5/31/2017 5/31/2022 19.41 Osisko Gold Royalties Ltd. (5%)
1052361 Placer Claim Cariboo Gold BGM (100%) 6/4/2017 6/4/2022 38.8 Osisko Gold Royalties Ltd. (5%)
1052637 Placer Claim Cariboo Gold BGM (100%) 6/18/2017 6/18/2022 19.42 Osisko Gold Royalties Ltd. (5%)
1055510 Placer Claim Cariboo Gold BGM (100%) 10/13/2017 10/13/2022 38.8 Osisko Gold Royalties Ltd. (5%)
1055674 Placer Claim Cariboo Gold BGM (100%) 10/20/2017 10/20/2022 19.42 Osisko Gold Royalties Ltd. (5%)
1057397 Placer Claim Cariboo Gold BGM (100%) 1/2/2018 10/18/2022 174.78 Osisko Gold Royalties Ltd. (5%)
1058336 Placer Claim Cariboo Gold BGM (100%) 2/6/2018 2/6/2022 19.42 Osisko Gold Royalties Ltd. (5%)
1058337 Placer Claim Cariboo Gold BGM (100%) 2/6/2018 2/6/2022 19.43 Osisko Gold Royalties Ltd. (5%)
1063142 Placer Claim Cariboo Gold BGM (100%) 9/16/2018 9/16/2022 19.41 Osisko Gold Royalties Ltd. (5%)
1063186 Placer Claim Cariboo Gold BGM (100%) 9/19/2018 5/19/2022 38.83 Osisko Gold Royalties Ltd. (5%)
1063528 Placer Claim Cariboo Gold BGM (100%) 10/2/2018 10/2/2022 38.85 Osisko Gold Royalties Ltd. (5%)
1063975 Placer Claim Cariboo Gold BGM (100%) 10/22/2018 10/22/2022 19.41 Osisko Gold Royalties Ltd. (5%)
1064018 Placer Claim Cariboo Gold BGM (100%) 10/24/2018 10/24/2022 19.41 Osisko Gold Royalties Ltd. (5%)
1064017 Placer Claim Cariboo Gold BGM (100%) 10/24/2018 10/24/2022 19.42 Osisko Gold Royalties Ltd. (5%)
1064016 Placer Claim Cariboo Gold BGM (100%) 10/24/2018 10/24/2022 19.41 Osisko Gold Royalties Ltd. (5%)
1067277 Placer Claim Cariboo Gold BGM (100%) 3/17/2019 3/17/2022 19.41 Osisko Gold Royalties Ltd. (5%)
1067348 Placer Claim Cariboo Gold BGM (100%) 3/20/2019 1/10/2025 698.63 Osisko Gold Royalties Ltd. (5%)
1068909 Placer Claim Cariboo Gold BGM (100%) 6/4/2019 6/4/2022 58.31 Osisko Gold Royalties Ltd. (5%)
1072073 Placer Claim Cariboo Gold BGM (100%) 10/23/2019 7/17/2022 58.23 Osisko Gold Royalties Ltd. (5%)
1072333 Placer Claim Cariboo Gold BGM (100%) 11/1/2019 11/1/2022 19.44 Osisko Gold Royalties Ltd. (5%)
1072338 Placer Claim Cariboo Gold BGM (100%) 11/1/2019 11/1/2022 19.43 Osisko Gold Royalties Ltd. (5%)
1072336 Placer Claim Cariboo Gold BGM (100%) 11/1/2019 11/1/2022 19.44 Osisko Gold Royalties Ltd. (5%)
1072335 Placer Claim Cariboo Gold BGM (100%) 11/1/2019 11/1/2022 19.44 Osisko Gold Royalties Ltd. (5%)
1072331 Placer Claim Cariboo Gold BGM (100%) 11/1/2019 11/1/2022 58.32 Osisko Gold Royalties Ltd. (5%)
1072332 Placer Claim Cariboo Gold BGM (100%) 11/1/2019 11/1/2022 19.43 Osisko Gold Royalties Ltd. (5%)
1072334 Placer Claim Cariboo Gold BGM (100%) 11/1/2019 11/1/2022 19.43 Osisko Gold Royalties Ltd. (5%)
1072337 Placer Claim Cariboo Gold BGM (100%) 11/1/2019 11/1/2022 19.43 Osisko Gold Royalties Ltd. (5%)
1074530 Placer Claim Cariboo Gold BGM (100%) 2/11/2020 1/10/2025 1340.98 Osisko Gold Royalties Ltd. (5%)
1074531 Placer Claim Cariboo Gold BGM (100%) 2/11/2020 1/10/2025 873.86 Osisko Gold Royalties Ltd. (5%)
1076725 Placer Claim Cariboo Gold BGM (100%) 6/12/2020 12/12/2021 19.41 Osisko Gold Royalties Ltd. (5%)
1079815 Placer Claim Cariboo Gold BGM (100%) 11/29/2020 11/29/2021 19.41 Osisko Gold Royalties Ltd. (5%)


Osisko Development Corp.

NI 43-101 Technical Report

Preliminary Economic Assessment for the Cariboo Gold Project

 

 

 

 

 

APPENDIX 3: CROWN-GRANTED MINERAL CLAIMS

 

 

 

 

MAY 2022

Appendix 3




PID Title # CG # Original Grantee Fee Simple Owner Undersurface Owner Area (Acres) Royalty
006-787-592 CA3322184 4215/55 ADA JANE BRUCE MASON BARKERVILLE GOLD MINES LTD. WHARF RESOURCES LTD. 0.42 OGR 5%
018-856-870 CA801713 4215/55 ADA JANE BRUCE MASON BARKERVILLE GOLD MINES LTD. WHARF RESOURCES LTD. 0.6 OGR 5%
023-677-007 PM47667 4215/55 ADA JANE BRUCE MASON BARKERVILLE GOLD MINES LTD. WHARF RESOURCES LTD. / THE CROWN IN
RIGHT OF BRITSH COLUMBIA
1.25 OGR 5%
006-773-931 CA9231853 1036/97 ARCHIBALD MCINTYRE BARKERVILLE GOLD MINES LTD. WHARF RESOURCES LTD. 0.27 OGR 5%
013-778-366 CA9229300 1036/97 ARCHIBALD MCINTYRE BARKERVILLE GOLD MINES LTD. WHARF RESOURCES LTD. 0.15 OGR 5%
015-332-438 8407M 1036/97 ARCHIBALD MCINTYRE THE LOWHEE MINING COMPANY
LIMITED (NON-PERSONAL LIABILITY)
(FORFEITED TO CROWN)
BARKERVILLE GOLD MINES LTD. 205.72 OGR 5%
018-328-288 CA8802577 1036/97 ARCHIBALD MCINTYRE BARKERVILLE GOLD MINES LTD. WHARF RESOURCES LTD. 0.45 OGR 5%
018-685-056 CA6190280 1036/97 ARCHIBALD MCINTYRE BARKERVILLE GOLD MINES LTD. WHARF RESOURCES LTD. / HER MAJESTY
THE QUEEN IN RIGHT OF THE PROVINCE
OF BRITISH COLUMBIA
0.36 OGR 5%
018-847-340 BX36213 1036/97 ARCHIBALD MCINTYRE BARKERVILLE GOLD MINES LTD. THE CROWN IN RIGHT OF BRITISH
COLUMBIA
0.13 OGR 5%
031-410-812 CA9059926 1036/97 ARCHIBALD MCINTYRE BARKERVILLE GOLD MINES LTD. WHARF RESOURCES LTD. 0.1 OGR 5%
031-410-821 CA9059927 1036/97 ARCHIBALD MCINTYRE BARKERVILLE GOLD MINES LTD. WHARF RESOURCES LTD. 0.14 OGR 5%
013-700-812 PC17211 8769/858 BARKERVILLE MINING COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 38.1 OGR 5%
013-700-839 PC17212 8770/858 BARKERVILLE MINING COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 47.37 OGR 5%
013-700-847 PC17213 8771/858 BARKERVILLE MINING COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 19.6 OGR 5%
013-700-863 PC17214 8772/858 BARKERVILLE MINING COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 33.76 OGR 5%
013-700-871 PC17215 8767/858 BARKERVILLE MINING COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 36.41 OGR 5%
013-700-880 PC17216 8768/858 BARKERVILLE MINING COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 26.81 OGR 5%
015-282-163 31938M 8766/858 BARKERVILLE MINING COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 13.03 OGR 5%
015-359-786 PD707 8761/858 BARKERVILLE MINING COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 26.53 OGR 5%
015-359-891 PD706 8762/858 BARKERVILLE MINING COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 42.64 OGR 5%
015-360-172 PD705 8763/858 BARKERVILLE MINING COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 25.3 OGR 5%
015-360-202 PD704 8764/858 BARKERVILLE MINING COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 36.07 OGR 5%
015-360-211 PD703 8765/858 BARKERVILLE MINING COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 33.95 OGR 5%
013-699-253 PC17191 420/675 CARIBOO AMALGAMATED GOLD MINES
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 9.5 OGR 5%
013-699-598 PC17202 421/675 CARIBOO AMALGAMATED GOLD MINES
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 40.89 OGR 5%
013-699-652 PC17203 422/675 CARIBOO AMALGAMATED GOLD MINES
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.65 OGR 5%
013-699-695 PC17204 423/675 CARIBOO AMALGAMATED GOLD MINES
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.65 OGR 5%
013-699-709 PC17217 461/675 CARIBOO AMALGAMATED GOLD MINES LIMITED (NON-PERSONAL LIABILITY) HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA BARKERVILLE GOLD MINES LTD. 26.04 OGR 5%
013-699-733 PC17218 424/675 CARIBOO AMALGAMATED GOLD MINES LIMITED (NON-PERSONAL LIABILITY) HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA BARKERVILLE GOLD MINES LTD. 51.64 OGR 5%
013-699-784 PC17219 425/675 CARIBOO AMALGAMATED GOLD MINES
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 42.15 OGR 5%
013-699-822 PC17220 426/675 CARIBOO AMALGAMATED GOLD MINES
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 32.23 OGR 5%
013-699-903 PC17221 427/675 CARIBOO AMALGAMATED GOLD MINES
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 43.42 OGR 5%



PID Title # CG # Original Grantee Fee Simple Owner Undersurface Owner Area (Acres) Royalty
013-700-162 PC17222 428/675 CARIBOO AMALGAMATED GOLD MINES
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 24.8 OGR 5%
015-360-971 PD718 1193/682 CARIBOO CONSOLIDATED MINING COMPANY
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 39.83 OGR 5%
015-361-225 PD717 1192/682 CARIBOO CONSOLIDATED MINING COMPANY
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 18.66 OGR 5%
015-361-233 PD716 1191/682 CARIBOO CONSOLIDATED MINING COMPANY
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 30.1 OGR 5%
015-361-276 PD715 1190/682 CARIBOO CONSOLIDATED MINING COMPANY
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 45.17 OGR 5%
015-361-322 PD714 1189/682 CARIBOO CONSOLIDATED MINING COMPANY
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 31.76 OGR 5%
015-361-373 PD713 1188/682 CARIBOO CONSOLIDATED MINING COMPANY
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 7.02 OGR 5%
015-361-403 PD712 1187/682 CARIBOO CONSOLIDATED MINING COMPANY
LIMITED (NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 37.62 OGR 5%
015-307-000 PC58825 3301/504 CHARLES JOHN SEYMOUR BAKER HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.14 OGR 5%, FNV
3%
015-307-425 PC58826 3302/504 CHARLES JOHN SEYMOUR BAKER HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.21 OGR 5%, FNV
3%
015-307-727 PC58827 3298/503 CHARLES JOHN SEYMOUR BAKER HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 48.92 OGR 5%, FNV
3%
015-307-743 PC58828 3299/503 CHARLES JOHN SEYMOUR BAKER HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.19 OGR 5%, FNV
3%
015-307-751 PC58829 3300/503 CHARLES JOHN SEYMOUR BAKER HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.3 OGR 5%, FNV
3%
006-410-987 Y6520 2185/792 DALBY B. MORKILL HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 27.63 OGR 5%
006-411-070 Y6521 2186/792 DALBY B. MORKILL HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 49.76 OGR 5%
006-411-193 Y6522 2187/792 DALBY B. MORKILL HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 44.16 OGR 5%
006-411-215 Y6523 2188/792 DALBY B. MORKILL HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 43.54 OGR 5%
024-954-527 FB488576 3417/306 FRANK W. KIBBEE BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 2.56 OGR 5%
013-614-941 PC17398 2882/799 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA MINISTER RESPONSIBLE
HERITAGE CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 26.14 OGR 5%
013-724-541 PC18149 216/673 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA C/O MINISTER RESPONSIBLE FOR THE HERITAGE CONSERVATION ACT BARKERVILLE GOLD MINES LTD. 47.78 OGR 5%
013-724-631 PC18148 215/673 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 29.08 OGR 5%
015-289-681 CA4347921 385/674 FREDERICK JAMES TREGILLUS BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 20.22 OGR 5%
015-291-391 12076M 387/674 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 31.39 OGR 5%
015-291-413 12077M 388/674 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 33.15 OGR 5%
015-291-481 12079M 389/674 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 21.68 OGR 5%
015-292-304 11956M 214/673 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 35.46 OGR 5%
015-292-312 11510M 9496/665 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 35.78 OGR 5%



PID Title # CG # Original Grantee Fee Simple Owner Undersurface Owner Area (Acres) Royalty
015-292-509 12075M 386/674 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 47.11 OGR 5%
015-939-197 11509M 9495/665 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 49.08 OGR 5%
015-939-201 11508M 9493/665 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 31.72 OGR 5%
015-939-251 PD15660 9494/665 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 29.82 OGR 5%
015-939-278 PD15660 9494/665 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 29.9 OGR 5%
015-939-324 PD15661 9497/665 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 39.29 OGR 5%
015-939-375 PD15662 9497/665 FREDERICK JAMES TREGILLUS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 39.34 OGR 5%
015-939-243 PD15664 9498/665 FREDERICK JAMES TREGILLUS AND ALBERT
JAMES BLAIR
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA MINISTER RESPONSIBLE
FOR THE
HERITAGE CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 4.61 OGR 5%
015-291-537 12080M 383/674 FREDERICK JAMES TREGILLUS AND THOMAS
ALBERT BLAIR
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 2.16 OGR 5%
015-384-586 12073M 382/674 FREDERICK JAMES TREGILLUS AND THOMAS
ALBERT BLAIR
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA MINISTER RESPONSIBLE
FOR THE
HERITAGE CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 42.49 OGR 5%
015-939-235 PD15663 9498/665 FREDERICK JAMES TREGILLUS AND THOMAS
ALBERT BLAIR
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA MINISTER RESPONSIBLE
FOR THE
HERITAGE CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 4.69 OGR 5%
004-056-710 CA6623323 1F/34 GEORGE TRUMAN, GEORGE W. ROBINSON,
FELIX NEUFELDER, A. COUTTS, JOHN
JORDAN, FREDERICK STERITRY AND P.
MANETTA
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 36.2 OGR 5%
004-086-872 PT5233,
PC16246
20F/34 HILAIRE MOLLEUR, ANGELO PENDOLA,
OLIVIER D'ARPENTIGNY AND ALEXANFDER
GARANT
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 35.91 OGR 5%
005-537-541 CA8578737 5313/624 (U),
5763/628 (S)
ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 1 OGR 5%
008-218-803 CA3393918 5313/624 (U),
5763/628 (S)
ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 30.05 OGR 5%
010-422-862 PB12572 2683/697 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA MINISTER RESPONSIBLE
FOR THE
HERITAGE CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 50.8 OGR 5%, FNV
3%
013-699-326 PC17193 8323/654 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 14.16 OGR 5%
013-700-367 PC17223 5312/624 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.65 OGR 5%
013-700-715 PC17206 5972/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 34.63 OGR 5%
013-700-731 PC17207 5973/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 24.33 OGR 5%
013-700-740 PC17208 5974/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 25.22 OGR 5%
013-700-758 PC17209 5975/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 45.38 OGR 5%



PID Title # CG # Original Grantee Fee Simple Owner Undersurface Owner Area (Acres) Royalty
013-700-791 PC17210 5976/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 46.64 OGR 5%
013-707-850 PC17230 5322/624 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 0.49 OGR 5%
013-707-868 PC17224 5314/624 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.09 OGR 5%
013-707-876 PC17226 5316/624 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.11 OGR 5%
013-707-884 PC17227 5317/624 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 38.13 OGR 5%
013-707-892 PC17229 5319/624 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 4.17 OGR 5%
013-707-906 PC17231 5323/624 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 0.71 OGR 5%
013-707-914 PC17247 5320/624 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 35.21 OGR 5%
013-707-922 PC17228 5318/624 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 26.61 OGR 5%
013-707-965 PC17248 5987/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 4.63 OGR 5%
013-708-023 PC17249 5988/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 19.32 OGR 5%
013-708-058 PC17250 5988/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 19.32 OGR 5%
013-708-066 PC17251 5989/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 15.49 OGR 5%
013-708-074 PC17225 5315/624 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 48.22 OGR 5%
013-708-091 PC17232 5977/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 49.75 OGR 5%
013-708-104 PC17233 5978/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 37.95 OGR 5%
013-708-112 PC17234 5979/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 45.11 OGR 5%
013-708-121 PC17235 5980/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 34.76 OGR 5%
013-708-139 PC17239 5982/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 32.52 OGR 5%
013-708-155 PC17240 5983/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 44.8 OGR 5%
013-708-163 PC17241 5983/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 44.8 OGR 5%
013-708-171 PC17242 5984/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 46.31 OGR 5%
013-708-180 PC17243 5984/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 46.32 OGR 5%
013-708-198 PC17244 5985/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 2.79 OGR 5%
013-708-201 PC17245 5986/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 29.56 OGR 5%
013-708-210 PC17246 5986/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 29.56 OGR 5%
013-708-228 PC17237 5320/624 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 38.4 OGR 5%
013-708-236 PC17238 5321/624 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 38.4 OGR 5%
013-724-533 PC18150 8910/760 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 23.8 OGR 5%, FNV
3%
015-291-685 13451M 2677/697 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 48.47 OGR 5%, FNV
3%



PID Title # CG # Original Grantee Fee Simple Owner Undersurface Owner Area (Acres) Royalty
015-291-723 13452M 2678/697 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 46.66 OGR 5%, FNV
3%
015-291-766 13453M 2679/697 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.65 OGR 5%, FNV
3%
015-291-791 13454M 2680/697 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 20.31 OGR 5%, FNV
3%
015-291-804 13455M 2681/697 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 20.29 OGR 5%, FNV
3%
015-291-812 13456M 2682/697 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.62 OGR 5%, FNV
3%
015-291-839 13458M 2684/697 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 29.87 OGR 5%, FNV
3%
015-292-045 12368M 790/678 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 49.17 OGR 5%, FNV
3%
015-292-096 19027M 8396/754 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 6.35 OGR 5%, FNV
3%
015-292-274 9758M 6436/635 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 43.33 OGR 5%, FNV
3%
015-292-347 9756M 6437/635 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 19.16 OGR 5%, FNV
3%
015-292-363 9757M 6435/635 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 31.78 OGR 5%, FNV
3%
015-342-778 PD348 6433/635 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 44.6 OGR 5%, FNV
3%
015-342-824 PD349 6434/635 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 49.36 OGR 5%, FNV
3%
015-343-634 PD456 2683/697 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA MINISTER RESPONSIBLE
FOR THE
HERITAGE CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 50.8 OGR 5%, FNV
3%
016-016-114 15203M 4609/717 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 13.37 OGR 5%, FNV
3%
016-562-895 13459M 2685/697 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 4.83 OGR 5%, FNV
3%
016-563-051 13460M 2686/697 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 18.5 OGR 5%, FNV
3%
017-164-923 PC17236 5981/630 ISLAND MOUNTAIN MINES COMPANY LIMITED
(NON-PERSONAL LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.68 OGR 5%
015-300-226 CA2741385 2099/1091 JAMES THOMAS WATT BARKERVILLE GOLD MINES LTD. NONE 1.6 OGR 5%
004-078-632 FB503371 5F/34 JOHN BOWRON, DANIEL CAREY, ANDREW
FLETCHER, WESLEY HALL, WILLIAM
JEFFARES JOHN MCALISTER DONALD
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 47.3 OGR 5%
004-086-902 PT5234,
PC16247
30F/34 JOHN LAUYON, MICHAEL DRISCOLL AND
WILLIAM P. WILLIAMS
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 35.91 OGR 5%
015-038-688 W21719 3268/154 JOHN PINKERTON HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 36.92 OGR 5%
015-286-649 S28511 3925/510 LAURENT MULLER HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.07 OGR 5%
004-056-752 CA4347922 32F/34 LEWIS WINTRIP BARKERVILLE GOLD MINES LTD. HER MAJESTY THE QUEEN IN RIGHT OF
THE PROVINCE OF BRITISH COLUMBIA,
MINISTER RESPONSIBLE FOR THE
HERITAGE CONSERVATION ACT
82.23 OGR 5%
004-933-206 CA71100 2517/101 MARY AGNES MASON (TRANSFERRED TO
LOWHEE MINING CO. LTD.)
CLIFFORD CECIL COLLINS, SMALL
ENGINE PROGRAM COORDINATOR
BARKERVILLE GOLD MINES LTD. 1.88 OGR 5%
009-497-463 CA6851547 2517/101 MARY AGNES MASON (TRANSFERRED TO
LOWHEE MINING CO. LTD.)
BARKERVILLE GOLD MINES LTD. WHARF RESOURCES LTD. 0.29 OGR 5%
013-100-572 CA6670546 2517/101 MARY AGNES MASON (TRANSFERRED TO
LOWHEE MINING CO. LTD.)
BARKERVILLE GOLD MINES LTD. WHARF RESOURCES LTD. / THE CROWN IN
RIGHT OF BRITISH COLUMBIA
0.16 OGR 5%
014-385-732 CA3322183 2517/101 MARY AGNES MASON (TRANSFERRED TO
LOWHEE MINING CO. LTD.)
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 6.58 OGR 5%
014-997-347 CA4769286 2517/101 MARY AGNES MASON (TRANSFERRED TO
LOWHEE MINING CO. LTD.)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 43.6 OGR 5%



PID Title # CG # Original Grantee Fee Simple Owner Undersurface Owner Area (Acres) Royalty
017-589-517 CA4545743 2517/101 MARY AGNES MASON (TRANSFERRED TO LOWHEE MINING CO. LTD.) BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 4.94 OGR 5%
019-113-854 CA6881775 2517/101 MARY AGNES MASON (TRANSFERRED TO
LOWHEE MINING CO. LTD.)
BARKERVILLE GOLD MINES LTD. WHARF RESOURCES LTD. 0.08 OGR 5%
026-025-906 BB1991819 2517/101 MARY AGNES MASON (TRANSFERRED TO
LOWHEE MINING CO. LTD.)
BARKERVILLE GOLD MINES LTD. WHARF RESOURCES LTD. 0.38 OGR 5%
004-078-560 CA332187 42F/34 PHILIP RICHARD TAYLOR LEACY AND JOHN
BUTTS
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 10 OGR 5%
004-078-608 CA5682814 35F/34 ROBERT DRIUKALL BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 58 OGR 5%
004-087-054 PT5232,
PC16245
39F/34 ROBERT JOHUS AND GEORGE HENRY JOHUS BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 35.91 OGR 5%
008-801-908 CA3322180 35/36 (B),
2672/597 (U)
THE BRITISH COLUMBIA MILLING AND MINING
COMPANY (LIMITED)
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 20.6 OGR 5%
014-982-013 CA3322181 35/36 THE BRITISH COLUMBIA MILLING AND MINING
COMPANY (LIMITED)
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 20 OGR 5%
015-306-992 PC58824 126/47 THE BRITISH COLUMBIA MILLING AND MINING
COMPANY (LIMITED)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 20.53 OGR 5%, FNV
3%
014-385-759 CA3322179 4614/617 (S),
35/36 (B)
THE BRITISH COLUMBIA MILLING AND MINING
COMPANY LIMITED (CG 36/36); CARIBOO GOLD
QUARTZ MINING COMPANY LIMITED (NON-
PERSONAL LIABILITY) (CG 4614/617)
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 19.88 OGR 5%
008-218-722 Y31875 6206/633 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 0.17 OGR 5%
008-222-762 PD44700 6206/633, 5313/624 (U), 5763/628 (S) THE CARIBOO GOLD QUARTZ MINING COMPANY LIMITED (NON-PERSONAL LIABILITY) WELLS HISTORICAL SOCIETY BARKERVILLE GOLD MINES LTD. 0.23 OGR 5%
013-699-148 PC17188 6207/633 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 50.34 OGR 5%
013-699-172 PC17205 6208/633 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 42 OGR 5%
013-699-181 PC17189 6209/633 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 41.34 OGR 5%
013-699-202 PC17190 6210/633 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 2.83 OGR 5%
013-699-288 PC17192 5448/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 9.78 OGR 5%
013-699-369 PC17194 6212/633 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 35.94 OGR 5%
013-699-385 PC17195 6213/633 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 43.95 OGR 5%
013-699-393 PC17196 6214/633 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 40.02 OGR 5%
013-699-415 PC17197 6215/633 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 31.67 OGR 5%
013-699-440 PC17198 6216/633 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.65 OGR 5%
013-699-491 PC17199 6217/633 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.65 OGR 5%
013-699-539 PC17200 6218/633 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.5 OGR 5%
013-699-563 PC17201 6527/636 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 38.89 OGR 5%
013-724-509 PC18151 4882/719 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 0.3 OGR 5%
014-385-643 CA3322188 5436/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 49.41 OGR 5%
014-385-686 CA3322189 5439/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 23.02 OGR 5%
015-133-702 W21889 6802/639 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 48.16 OGR 5%
015-133-991 W21853 9412/665 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.65 OGR 5%
015-134-008 W21852 6958/640 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 12.65 OGR 5%



PID Title # CG # Original Grantee Fee Simple Owner Undersurface Owner Area (Acres) Royalty
015-134-792 W21849 9413/665 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.76 OGR 5%
015-134-806 W21842 9411/665 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 0.84 OGR 5%
015-134-911 W21839 6959/640 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 9.33 OGR 5%
015-134-954 W21843 9418/665 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 12.19 OGR 5%
015-134-971 W21841 9417/665 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.49 OGR 5%
015-135-004 W21840 9415/665 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 29.1 OGR 5%
015-135-021 W21838 9416/665 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 37.87 OGR 5%
015-135-039 W21854 9414/665 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 30.5 OGR 5%
015-135-055 W21837 6969/640 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 0.03 OGR 5%
015-150-470 PC54208 6793/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 49.59 OGR 5%
015-150-640 PC54209 6798/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.65 OGR 5%
015-151-000 PC54210 6799/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 40.99 OGR 5%
015-151-018 PC54211 6800/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.65 OGR 5%
015-151-026 PC54212 6801/639 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.62 OGR 5%
015-151-093 PC54218 6963/640 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 47.52 OGR 5%
015-151-174 PC54219 6964/640 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 49.59 OGR 5%
015-151-301 PC54220 6965/640 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 49.74 OGR 5%
015-151-417 PC54221 6966/640 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 32.43 OGR 5%
015-151-450 PC54222 6967/640 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 51.65 OGR 5%
015-151-557 PC54228 6794/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 36.7 OGR 5%
015-151-590 PC54229 6795/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 21.11 OGR 5%
015-151-697 PC54230 6712/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 17.73 OGR 5%
015-151-727 PC54231 6796/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.6 OGR 5%
015-151-794 PC54232 6797/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.66 OGR 5%
015-151-859 PC54223 6957/640 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.04 OGR 5%



PID Title # CG # Original Grantee Fee Simple Owner Undersurface Owner Area (Acres) Royalty
015-151-905 PC54224 6960/640 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 43.99 OGR 5%
015-151-930 PC54225 6961/640 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 19.96 OGR 5%
015-151-999 PC54226 6962/640 THE CARIBOO GOLD QUARTZ MINING COMPANY LIMITED (NON-PERSONAL LIABILITY) HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA BARKERVILLE GOLD MINES LTD. 51.66 OGR 5%
015-152-049 PC54227 6968/640 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 34.57 OGR 5%
015-152-103 PC54213 6788/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 49.59 OGR 5%
015-152-294 PC54214 6789/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.65 OGR 5%
015-152-341 PC54215 6790/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.58 OGR 5%
015-152-367 PC54216 6791/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 37.01 OGR 5%
015-152-405 PC54217 6792/638 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 39.16 OGR 5%
015-193-845 U40887 5447/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.15 OGR 5%
015-193-934 U40886 5446/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 44.89 OGR 5%
015-193-942 U40885 5445/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 2.9 OGR 5%
015-193-951 U40884 5444/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 39.8 OGR 5%
015-193-969 U40883 5443/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 34.46 OGR 5%
015-193-977 U40882 5442/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 35.77 OGR 5%
015-193-985 U40881 5441/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 44.59 OGR 5%
015-194-027 U40880 5440/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.33 OGR 5%
015-194-116 U40879 5438/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 34.34 OGR 5%
015-194-141 U40875 5437/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 32.09 OGR 5%
015-194-167 U40878 5435/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.65 OGR 5%
015-194-183 U40877 5434/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 22.05 OGR 5%
015-282-074 15494M 4878/719 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 0.05 OGR 5%
015-282-082 15495M 4879/719 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 4.91 OGR 5%
015-282-104 15496M 4880/719 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 0.23 OGR 5%
015-282-147 15497M 4881/719 THE CARIBOO GOLD QUARTZ MINING COMPANY LIMITED (NON-PERSONAL LIABILITY) HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA BARKERVILLE GOLD MINES LTD. 0.17 OGR 5%
015-282-155 15499M 4883/719 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 0.56 OGR 5%
015-287-131 U40874 6211/633 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 20.9 OGR 5%
015-289-800 W21851 211/673 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 16.49 OGR 5%



PID Title # CG # Original Grantee Fee Simple Owner Undersurface Owner Area (Acres) Royalty
016-292-987 PD30176 5433/625 THE CARIBOO GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 0.12 OGR 5%
014-385-741 CA3322182 535/92 THE ORIOLE SYNDICATE LIMITED BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 42.42 OGR 5%
015-307-603 PC58843 2085/130 THE ORIOLE SYNDICATE LIMITED HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 49.63 OGR 5%
015-307-654 PC58844 2088/130 THE ORIOLE SYNDICATE LIMITED HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 29.87 OGR 5%
015-307-662 PC58845 2087/130 THE ORIOLE SYNDICATE LIMITED HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 47.59 OGR 5%
015-291-448 12078M 384/674 THOMAS ALBERT BLAIR HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA C/O MINISTER
RESPONSIBLE FOR THE HERITAGE
CONSERVATION ACT
BARKERVILLE GOLD MINES LTD. 37.21 OGR 5%
004-056-582 BB1960681 41F/34 UNKNOWN (PRE-TANTALIS) BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 13.81 OGR 5%, FNV
3%
004-056-736 CA6623292 1B/35 UNKNOWN (PRE-TANTALIS) BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 12 OGR 5%
004-056-787 CA4347919 4B/35 UNKNOWN (PRE-TANTALIS) BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 10 OGR 5%
004-086-627 CA3393199 2B/35 UNKNOWN (PRE-TANTALIS) BARKERVILLE GOLD MINES LTD. NONE ON TITLE (UNDERSURFACE RIGHTS
GRANTED GMA 1873)
23 OGR 5%
015-329-313 PD31 6287/633 WILLIAM A. SIMKINS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.65 OGR 5%, FNV
3%
015-329-330 PD32 6288/633 WILLIAM A. SIMKINS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 51.52 OGR 5%, FNV
3%
015-329-356 PD33 6289/633 WILLIAM A. SIMKINS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 11.32 OGR 5%, FNV
3%
015-329-372 PD34 6290/633 WILLIAM A. SIMKINS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 39.78 OGR 5%, FNV
3%
015-329-381 PD35 6291/633 WILLIAM A. SIMKINS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 18.93 OGR 5%, FNV
3%
015-329-399 PD36 6292/633 WILLIAM A. SIMKINS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 25.07 OGR 5%, FNV
3%
015-329-402 PD37 6293/633 WILLIAM A. SIMKINS HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH
COLUMBIA
BARKERVILLE GOLD MINES LTD. 22.4 OGR 5%, FNV
3%
015-329-411 PD38 6294/633 WILLIAM A. SIMKINS HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA BARKERVILLE GOLD MINES LTD. 0.5 OGR 5%, FNV 3%
015-329-437 PD39 6295/633 WILLIAM A. SIMKINS HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA BARKERVILLE GOLD MINES LTD. 51.16 OGR 5%, FNV 3%
004-078-543 CA3322186 2F/34 WILLIAM ANDREW MEACHAM AND ITHIEL
BLAKE MASON
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 25.26 OGR 5%
004-078-578 CA3322185 17F/34 WILLIAM BOSWELL STEELE, THOMAS BELL,
ANGELO PENDOLA, PETER MANETTA, JOSEPH
HUOT DE ST. LAURENT, WILLIAM H.
THOMPSON, OLIVIER D'ARPENTIGNY, NICOLAS
CUNIO, JAMES BOYCE, JOHN MCLEAN, ANGUS
MCPHERSON AND ISAAC BIRCH FISHER
BARKERVILLE GOLD MINES LTD. &
GOLDEN CARIBOO RESOURCES
LTD.
NONE ON TITLE (UNDERSURFACE RIGHTS
GRANTED GMA 1873)
125 OGR 5%
004-087-097 PT5235,
PC16248
38F/34 WILLIAM SAUDERS AND EDWARD COLLINS
NEUFELDER
BARKERVILLE GOLD MINES LTD. BARKERVILLE GOLD MINES LTD. 35.91 OGR 5%
013-614-959 24187M 213/673 (U),
2882/799 (S)
WILLIAMS CREEK GOLD QUARTZ MINING
COMPANY LIMITED (NON-PERSONAL
LIABILITY)
WILLIAMS CREEK GOLD QUARTZ
MINING CO. LIMITED (FORFEITED
TO CROWN L35148)
BARKERVILLE GOLD MINES LTD. 25.99 OGR 5%



Osisko Development Corp.: Exhibit 99.46 - Filed by newsfilecorp.com

Consent of Aytaç Göksu, P.Eng.

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ Aytaç Göksu
    Aytaç Göksu, P.Eng.
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.47 - Filed by newsfilecorp.com

Consent of John Cunning, P.Eng.

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ John Cunning
    John Cunning, P.Eng.
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.48 - Filed by newsfilecorp.com

Consent of Kristin Salzsauler, P.Geo.

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ Kristin Salzsauler
    Kristin Salzsauler, P.Geo.
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.49 - Filed by newsfilecorp.com

Consent of Tom Rutkowski, P.Eng.

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ Tom Rutkowski
    Tom Rutkowski, P.Eng.
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.50 - Filed by newsfilecorp.com

Consent of Colin Hardie, P.Eng.

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ Colin Hardie
    Colin Hardie, P.Eng.
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.51 - Filed by newsfilecorp.com

Consent of Mathieu Belisle, P.Eng.

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ Mathieu Belisle
    Mathieu Belisle, P.Eng.
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.52 - Filed by newsfilecorp.com

Consent of Vincent Nadeau-Benoit, P.Geo.

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ Vincent Nadeau-Benoit
    Vincent Nadeau-Benoit, P.Geo.
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.53 - Filed by newsfilecorp.com

Consent of Éric Lecomte, P.Eng.

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ Éric Lecomte
    Éric Lecomte, P.Eng.
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.54 - Filed by newsfilecorp.com

Consent of Tim Coleman, P.Eng.

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ Tim Coleman
    Tim Coleman, P.Eng.
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.55 - Filed by newsfilecorp.com

Consent of Paul Gauthier, P.Eng.

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ Paul Gauthier
    Paul Gauthier, P.Eng.
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.56 - Filed by newsfilecorp.com

Consent of Éric Poirier, P.Eng., PMP

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ Éric Poirier
    Éric Poirier, P.Eng., PMP
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.57 - Filed by newsfilecorp.com

Consent of David Willms, P.Eng.

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ David Willms
    David Willms, P.Eng.
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.58 - Filed by newsfilecorp.com

Consent of Michelle Liew, P.Eng.

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ Michelle Liew
    Michelle Liew, P.Eng.
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.59 - Filed by newsfilecorp.com

Consent of Katherine Mueller, P.Eng.

The undersigned hereby consents to the use of their report, and the information derived therefrom, as well as the reference to their name, in each case where used or incorporated by reference in the Registration Statement on Form 40-F of Osisko Development Corp. being filed with the United States Securities and Exchange Commission, and any amendments thereto.

  By: /s/ Katherine S. Mueller
    K. S. Mueller, P.Eng.
     
     
    Dated: May 24, 2022



Osisko Development Corp.: Exhibit 99.60 - Filed by newsfilecorp.com

OSISKO DEVELOPMENT ANNOUNCES PRELIMINARY ECONOMIC ASSESSMENT FOR THE

CARIBOO GOLD PROJECT AND REFILING CERTAIN CONTINUOUS DISCLOSURE DOCUMENTS

MONTREAL, May 24, 2022 - Osisko Development Corp. ("Osisko Development" or the "Company") (TSX.V-ODV) is pleased to announce the results from its Preliminary Economic Assessment ("PEA" or the "Study") completed by BBA Engineering Ltd., consultants for the Cariboo Gold Project ("Cariboo" or the "Project") in Central British Columbia ("BC").1

The PEA provides a technical and economic update based on the updated underground Mineral Resource Estimate ("MRE") from the 2021 diamond drill campaign and current costs and economic estimates. The MRE contains 27.1 million tonnes ("Mt") at an average grade of 4.0 grams per tonne gold ("g/t Au") for a total of 3.47 million ounces ("M oz") in the Measured and Indicated Category (consisting of a Measured Resource of eight thousand ounces of gold (47,000 tonnes grading 5.1 g/t Au) and an Indicated Resource of 3.46 million ounces of gold (27 million tonnes grading 4.0 g/t Au)) and 14.4 Mt at a grade of 3.5 g/t Au for a total of 1.6 M oz in the Inferred category (Table 6). These mineral resources have informed an 8,000 tonnes per day ("tpd") scenario over a 12-year operating mine life, which highlights the potential growth of the Cariboo Gold Project. The PEA is available on the Company's website and the profile of the Company at www.sedar.com. The Company notes that mineral resources are not mineral reserves as they do not have demonstrated economic viability. The Company notes that a preliminary economic assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have economic consideration applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.

The PEA illustrates potential economics for a low cost, large scale, underground gold mine, with industry leading operating costs. The study outlines total gold production of 2.8 million gold ounces, resulting in an average annual gold production profile of 236,000 ounces with an All-In-Sustaining Cost ("AISC") per ounce of $1,222 (US$962) (AISC is a non-IFRS measure - please see under the heading "Non-IFRS Measures" below). The Project after-tax net present value ("NPV") (5% discount rate) is $764 million with an after-tax internal rate of return ("IRR") of 21.4% at a gold price of $2,223 (US$1,750) per ounce, and $912 million and 24.5% at a spot gold price for May 19, 2022 at $2,343 (US$1,845) per ounce.

The PEA recommends that the Company continues to work towards a feasibility study and completes the following steps:

1. Incorporate all drilling results from 2021 and 2022 currently in progress in the resources.

2. Complete the development of the ramp and extraction of the 10,000-tonne ("t") bulk sample that will help support the evaluation and testing of the proposed roadheader mining equipment and ore sorting equipment and gain experience to maximize the full potential of these technologies.

3. Integrate the information and experience gained with the bulk sample into the development strategy of the mine and the feasibility study planning.

4. Continue exploration program with drilling (infill and exploration), geological mapping, and grab sampling to test the depth extensions of known high-grade vein corridors and identify new targets.

The Company plans to proceed with a feasibility study in connection with the work plan recommended by the PEA.

The Company advises that this clarifying news release is being issued at the request of the Autorité des marchés financiers following a continuous disclosure review. Certain previous economics described in the Table 1 below in relation to the Project disclosed by the Company were not supported by a technical report prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and are superseded by the economics set out in the current NI 43-101 report and the Company cautions the reader not to rely on such previous economics. The Company is also filing a restated version of its annual managements' discussion and analysis and annual information form to, as applicable, remove the unsupported technical information and qualify other disclosure.

________________________

1 Unless otherwise indicated, all amounts are expressedin Canadian Dollars.


The previous economics were made public by the Company in connection with the environmental assessment for the Cariboo Project. These economics were prepared in accordance with the requirements for major projects in British Columbia to be assessed for potential environmental, social, economic, health and cultural effects by the Environmental Assessment Office, as required by the Environmental Assessment Act (British Columbia) (the "Environmental Assessment Act"). The previous economics do not include numbers verified to a NI 43-101 standard, and do not include the suite of investor focused economics, including the IRR and NPV for the project. These previous economics were to engineering standards. You will find below a table showing the differences between the previous economics and the economics contained in the PEA.

Table 1: Project Economics

Information Previous economics PEA economics Explanation of the
differences
Production Rate (tpd) 4,750 tpd Up to 8,000 tpd Based on the Company's initial expectation a 4,750 tpd mine was used for the environmental assessment but in accordance with the MRE, its is expected that production could increase during the life of the mine to up to 8,000 tpd
Mine Life 16 years 12 years

Higher production rate

 

Initial Capital Cost and Total Capital Cost Projected initial capital cost of $400 to $450 million and total capital cost over the life of mine estimated at just under $900 million Projected initial capital cost of $122 million, expansion capital cost of $716 million and total capital over the life of mine estimated at $1,364 million

The differences are influenced by number of factors including:

  • higher production rate
  • additional resources
    additional environmental and engineering data
  • inflation.

The Key Operational Findings of the PEA are:

o Phased construction approach with an initial construction enabling a 2,000-tpd mine and an expansion raising the throughput at 8,000 tpd

o Average life of mine ("LOM") annual production of 236,000 ounces per annum

o Peak production of 316,000 ounces and average of 297,000 ounces when operating at 8,000tpd

o LOM AISC per ounce of $1,222 (US$962)

o Projected to have an initial mine life of 12 years

o First gold pour targeted for Q1 2024


The Key Financial Forecast of the PEA are (at a base case gold price of US$1,750/oz):

o Initial capital requirement of $121.5 million

o Expansion capital requirement of $716.1 million

o LOM pre-tax undiscounted free cash flow of $2.0 billion (post-tax $1.3 billion)

o Annual pre-tax free cash flow averages $167 million over 12 years of commercial production

o Annual after-tax free cash flow of $112 million over 12 years of commercial production

o After-tax NPV (5%) of $764M

o After-tax IRR of 21.4%

o Payback period pre-tax of 5.8 years (post-tax 6.0 years)

Sean Roosen, Chair & Chief Executive Officer of Osisko Development, commented: "The PEA builds on previous technical work while incorporating the results of extensive drilling together with several improvements and optimizations. The capital and operating cost estimates rely on recent budgetary quotes reflecting the current cost environment and our project execution approach. The recent inflation and difficulty with the supply chain has put to the forefront the challenges the mining industry is facing. The Project provides an attractive potential gold production profile of approximately 297,000 ounces per year when operating at 8,000tpd over an 8-year period, making it one of the premier gold development projects in North America and key socio-economic contributor to the Cariboo region, particularly in Wells, Quesnel, and surrounding areas, and the Province of BC. This PEA highlights a phased approach with an initial project able to produce 75,000oz/year at low capital cost, but most importantly, providing us access to the deposits from underground to do further exploration and seek to unlock more potential value outside of the current mine design that has an average mine depth of 350 meters. We believe this is a more prudent approach in the actual economic context without compromising the full potential of the Cariboo Gold Project."

Table 2: Key Economic Outputs of the Study

Description Units  
Production Date (Operations Period)    
Mine Life year 12
Average Process Throughput tpd 6,424
Average Process Throughput MMt2/ year 2,346
Gold Head Grade g/t 3.40
Contained Gold koz3 3,080
Recovery % 92.1
Total Gold Production koz 2,837
Average Annual Gold Production koz 236,000
Average Annual Full Years at 8,000tpd koz 297,000
Operating Costs (Average LOM)    
Mining Cost $/t mined 52.73
Processing Cost $/t mined 24.00
Concentrate transport $/t mined 3.85
Tailings and Water Management $/t mined 5.81
G&A Cost $/t mined 7.63
Total Site Operating Costs $/t mined 94.02
Total Site Operating Costs US$/oz 734.85
AISC US$/oz 961.6

________________________

2 MMt means millions of tonnes.

3 koz means thousand ounces.



Capital Costs    
Initial Capital $ MM 121.5
Expansion Capital $ MM 716.1
Life of Mine Sustaining Capital $ MM 527.2
Total Capital Costs $ MM 1,364.84
Financial Evaluation    
Gold Price Assumption US$/oz 1,750
USD:CAD FX Assumption x 1.27
After-Tax NPV (5%) $ MM5 763.8
After-Tax IRR % 21.4
Payback year 5.8

Figure 1: Average Annual Production Rate and Gold Production

Table 3: Sensitivity Analysis

        Spot Au Price  
    Downside Au   Case (May 19, Upside Au
Scenario Unit Price Case Base Case 2022) Price Case
Gold Price US$/oz 1,450 1,750 1,845 2,050
After-Tax NPV (5%) $ MM 288.2 763.8 912.4 1,231.0
After-Tax IRR % 11.2 21.4 24.5 31.2
LOM Free Cash Flow $ MM 697 1,342 1,546 1,988
LOM EBITDA $ MM 2,298 3,325 3,650 4,351
Payback years 7.6 6.0 5.6 4.9

Table 4: Operating Cost Summary

Operating Costs $/t Mined
Mining 52.73
Transportation 3.85
Processing (including underground crushing, ore sorting and paste backfill) 24.00
Tailings, waste & water management 5.81
General & administration 7.63
Total 94.02

________________________

4 This amount doesn't include the Closure cost and the Salvage Value of the equipment and infrastructures

5 MM means millions.


Table 5: Project Capital Cost Summary

  Total Capital
Area Description Cost ($ MM)
   
Mobile Equipment 10.6
Underground Mine 507.0
Water & Waste Management 101.1
Electrical & Communication 137.5
Surface Infrastructure 117.7
Mine Surface Infrastructure 10.3
Processing - Mine Site Complex 190.6
Processing - QR Mill 57.1
Construction Indirect Costs 86.9
Owner's Costs 31.0
Contingency 98.6
Capitalized Operating Costs 16.4
Total 1,364.8
Closure Costs 18.5
Salvage Value -61.1

PEA Overview

The Company retained BBA Engineering Ltd. as lead consultants, along with other engineering consultants, to complete the Study and prepare a technical report in accordance with NI 43-101.

The Project surface infrastructure and services are designed to support the operations at the Mine Site Complex and at the Quesnel River Mill ("QR Mill"). The Project also includes off-site infrastructure, such as a new 69 kV / 138 kV transmission line between the Barlow substation, near Quesnel, BC, and the Mine Site Complex. Warehousing for major components and consumables will be provided by third parties in Quesnel and / or Prince George.

The Project will be comprised of three different sites: the Mine Site Complex, near the District of Wells, BC, the Bonanza Ledge Site, and the QR Mill.

Underground longhole longitudinal retreat with a combination of paste fill and cemented rockfill mining methods will be used for the extraction of the economic mineable inventory, as it is the most economic, and sustainable methodology. The Project is planned in two phases, Phase 1 is at 2,000 tpd for 2.5 years, increasing during Phase II to an average production of 8,000 tpd over a 9.5-year LOM. This Report has focused on five underground zones: Shaft Zone, Valley Zone, Cow Zone, Mosquito Zone and Lowhee Zone. The mining zones are accessed via three main portals and are connected by an internal ramp system.

Property Description, Location and Access

The Project is located in the historic Wells- Barkerville mining camp of British Columbia and the Mineral Claim Block extends for 77 kilometres ("km") from northwest to southeast. The Project falls, in large portion, within the towns of Wells. Wells is situated 74 km east of Quesnel, approximately 115 km southeast of Prince George, and approximately 500 km north of Vancouver.


The Project consists of 412 mineral titles totalling 155,147.09 hectares across two contiguous property blocks known as the Cariboo Main Block and the QR Mill Property. These mineral titles include mineral claims, mineral leases, placer claims and placer leases. A net smelter return royalty of 5% payable to Osisko Gold Royalties Ltd is the only royalty that applies to the Project.

Mineral Resource Estimate

 Measured and Indicated Resource of 3.4 M oz of gold (27.1 Mt grading 4.0 g/t Au)

 Inferred Mineral Resource of 1.6 M oz of gold in the Inferred category (14.4 Mt grading 3.5 g/t Au)

 The 2022 Mineral Resource Estimate includes eight deposit areas: Mosquito, Shaft, Valley, Cow, Bonanza Ledge, BC Vein, Lowhee and KL

 The MRE is based upon over 650,000 metres ("m") of diamond drilling from Osisko Development's 2015 to 2021 drill programs and historically verified drill hole data for a total of 3,550 holes

 A total of 471 mineralized solids were used for the MRE: 109 solids for Cow, 100 for Valley, 93 for Shaft, 75 for Mosquito, 47 for Lowhee, BC Vein and five splays (a total of 6 solids), 40 for KL, and 1 solid for Bonanza Ledge

 The Approach for the reasonable prospect for an eventual economical extraction for the MRE is met using constrained, potentially mineable shapes, reflecting latest CIM Mineral Exploration Best Practice Guidelines (CIM Exploration Guidelines, November 2019)

 The MRE includes the Cow-Island-Barkerville Mountain Corridor. The Cow-Island segment covers a strike length of 3.7 km and a width of approximately 400 m, down to a vertical depth of 650 m below surface. The Barkerville segment covers a strike length of 3.0 km and a width of approximately 500 m, down to a vertical depth of 500 m below surface

 The BC Vein deposit is 1.7 km in strike length, 0.5 m to 37 m in thickness, and 400 m in depth

Table 6: Mineral Resource Estimate

Category Deposit Tonnes Grade Ounces
000 (g/t Au) 000
Measured Bonanza Ledge 47 5.1 8
Indicated Bonanza Ledge 32 4.0 4
BC Vein 1,030 3.1 103
KL 389 3.2 40
Lowhee 1,621 3.6 188
Mosquito 1,795 4.3 249
Shaft 11,139 4.3 1,531
Valley 4,403 3.8 536
Cow 6,645 3.8 811
Total Measured Resources 47 5.1 8
Total Indicated Mineral Resources 27,055 4.0 3,463
Inferred BC Vein 461 3.5 53
KL 1,905 2.8 168
Lowhee 520 3.5 59
Mosquito 1,262 3.6 146
Shaft 5,730 3.9 725
Valley 2,135 3.4 235
Cow 2,394 3.1 236
Total Measured and Indicated Mineral Resources 27,102 4.0 3,470
Total Inferred Mineral Resources 14,407 3.5 1,621


Mineral Resource Estimate notes:

1. The independent and qualified persons for the Mineral Resource Estimates, as defined by NI 43-101, are Carl Pelletier, P.Geo., and Vincent Nadeau Benoit, P.Geo. (InnovExplo Inc.). The effective date of the 2022 Mineral Resource Estimate is May 17, 2022.

2. These mineral resources are not mineral reserves as they do not have demonstrated economic viability.

3. The Mineral Resource Estimate conforms to the 2014 CIM Definition Standards on Mineral Resources and Reserves and follows the 2019 CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.

4. A total of 471 vein zones were modelled for the Cow Mountain (Cow and Valley), Island Mountain (Shaft and Mosquito), Barkerville Mountain (BC Vein, KL, and Lowhee) deposits and one gold zone for Bonanza Ledge. A minimum true thickness of 2.0 m was applied, using the grade of the adjacent material when assayed or a value of zero when not assayed.

5. The estimate is reported for a potential underground scenario at a cut-off grade of 2.0 g/t Au, except for Bonanza Ledge at a cut-off grade of 3.5 g/t Au. The cut-off grade for the Cow, Valley, Shaft, Mosquito, BC Vein, KL, and Lowhee deposits was calculated using a gold price of USD1,600 per ounce; a USD/CAD exchange rate of 1.30; a global mining cost of $50.41/t; a processing & transport cost of $30.41/t; and a G&A + Environmental cost of $16.18/t. The cut-off grade for the Bonanza Ledge deposit was calculated using a gold price of USD1,600 per ounce; a USD/CAD exchange rate of 1.30; a global mining cost of $79.13/t; a processing & transport cost of $60.00/t; and a G&A + Environmental cost of $51.65/t. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, mining cost, etc.).

6. Density values for Cow, Shaft, and BC Vein were estimated using the ID2 interpolation method, with a

value applied for the non-estimated blocks of 2.80 g/cm3 for Cow, 2.79 g/cm3 for Shaft, and 2.69 g/cm3 for BC Vein. Median densities were applied for Valley (2.81 g/cm3), Mosquito (2.79 g/cm3), KL (2.81 g/cm3) and Lowhee (2.75 g/cm3). A density of 3.20 g/cm3 was applied for Bonanza Ledge.

7. A four-step capping procedure was applied to composited data for Cow (3.0 m), Valley (1.5 m), Shaft (2.0 m), Mosquito (2.5 m), BC Vein (2.0 m), KL (1.75 m), and Lowhee (1.5 m). Restricted search ellipsoids ranged from 7 to 50 g/t Au at four different distances ranging from 25 m to 250 m for each deposit. High grades at Bonanza Ledge were capped at 70 g/t Au on 2.0 m composited data.

8. The mineral resources for the Cow, Valley, Shaft, Mosquito, BC Vein, KL, and Lowhee vein zones were estimated using Datamine StudioTM RM 1.9 software using hard boundaries on composited assays. The OK method was used to interpolate a sub-blocked model (parent block size = 5 m x 5 m x 5 m). Mineral resources for Bonanza Ledge were estimated using GEOVIA GEMSTM 6.7 software using hard boundaries on composited assays. The OK method was used to interpolate a block model (block size = 2 m x 2 m x 5 m).

9. Results are presented in situ. Ounce (troy) = metric tons x grade / 31.10348. Calculations used metric units (metres, tonnes, g/t). The number of tonnes was rounded to the nearest thousand. Any discrepancies in the totals are due to rounding effects. Rounding followed the recommendations as per NI 43-101.

10. Other than as set out in the PEA, the qualified persons responsible for this section of the technical report are not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant factors that could materially affect the Mineral Resource Estimate.

Environmental Assessment

An Environmental Assessment for the Project was initiated with the submission and acceptance of an initial project description in 2020, as per the Environmental Assessment Act, at a production rate of 4,750 tpd. Issuance of an Environmental Assessment Certificate ("EAC") is expected after successful review of the Application. The use of the updated resources in the PEA demonstrates the potential growth of the Project allowing for a scaled ramp up of activity to 8,000 tpd pending required permitting. Any changes to the Certified Project Description (or activities/works not authorized by the EAC), resulting from the increased production rate will first require an amendment to the Project EAC before proceeding to an updated detailed design and ensuing permit amendment applications.

Community and Indigenous Engagement

Osisko Development recognizes that early and frequent engagement is key to our business success. Through listening and open communication, we are better positioned to plan and design our projects in ways that reduce potential environmental and social impacts. The Company actively engages with Indigenous nations, the public, its employees, and local, regional, provincial, and federal governments and agencies. We understand that the level of involvement and interest differs amongst different groups, and we adjust communication strategies accordingly.


Engagement for the Project began in 2016. In October 2020, a Life of Project Agreement was signed between Osisko Development and Lhtako Dené Nation, which includes commitments for training, employment, and contracting opportunities. Agreements with Xatśūll First Nation and Williams Lake First Nation are in negotiation. In July 2021, discussions with the Wells District and Council began to initiate a Memorandum of Understanding ("MOU") between the town and Osisko Development, and a MOU was signed in March 2022.

Qualified Persons

Vincent Nadeau-Benoit, P.Geo., and Carl Pelletier, P.Geo., of InnovExplo Inc. each of whom is a "qualified person" within the meaning of NI 43-101 and considered to be "independent" of Osisko Development for purposes of Section 1.5 of NI 43-101, have reviewed and approved the contents of this news release.

Colin Hardie, P.Eng., of BBA Engineering Ltd., is a "qualified person" within the meaning of NI 43-101 and considered to be "independent" of Osisko Development for purposes of Section 1.5 of NI 43-101, has reviewed and confirmed that the news release fairly and accurately reflects the information in the technical report for which he is responsible.

Mathieu Belisle, P.Eng., of BBA Engineering Ltd., is a "qualified person" within the meaning of NI 43-101 and considered to be "independent" of Osisko Development for purposes of Section 1.5 of NI 43-101, has reviewed and confirmed that the news release fairly and accurately reflects the information in the technical report for which he is responsible.

Éric Lecomte, P. Eng., of InnovExplo Inc., is a "qualified person" within the meaning of NI 43-101 and considered to be "independent" of Osisko Development for purposes of Section 1.5 of NI 43-101, has reviewed and confirmed that the news release fairly and accurately reflects the information in the technical report for which he is responsible.

Tim Coleman, P.Eng., of SRK Consulting (Canada) Inc., is a "qualified person" within the meaning of NI 43-101 and considered to be "independent" of Osisko Development for purposes of Section 1.5 of NI 43- 101, has reviewed and confirmed that the news release fairly and accurately reflects the information in the technical report for which he is responsible.

Paul Gauthier, P. Eng., of WSP Golder, is a "qualified person" within the meaning of NI 43-101 and considered to be "independent" of Osisko Development for purposes of Section 1.5 of NI 43-101, has reviewed and confirmed that the news release fairly and accurately reflects the information in the technical report for which he is responsible.

Aytaç Göksu, P.Eng., of WSP Golder, is a "qualified person" within the meaning of NI 43-101 and considered to be "independent" of Osisko Development for purposes of Section 1.5 of NI 43-101, has reviewed and confirmed that the news release fairly and accurately reflects the information in the technical report for which he is responsible.

Thomas Rutkowski, P.Eng., of WSP Golder, is a "qualified person" within the meaning of NI 43-101 and considered to be "independent" of Osisko Development for purposes of Section 1.5 of NI 43-101, has reviewed and confirmed that the news release fairly and accurately reflects the information in the technical report for which he is responsible.

John Cunning, P.Eng., of WSP Golder, is a "qualified person" within the meaning of NI 43-101 and considered to be "independent" of Osisko Development for purposes of Section 1.5 of NI 43-101, has reviewed and confirmed that the news release fairly and accurately reflects the information in the technical report for which he is responsible.

Kristin Salzsauler, P.Geo., of WSP Golder, is a "qualified person" within the meaning of NI 43-101 and considered to be "independent" of Osisko Development for purposes of Section 1.5 of NI 43-101, has reviewed and confirmed that the news release fairly and accurately reflects the information in the technical report for which she is responsible.


Eric Poirier, P.Eng., PMP, of WSP Canada Inc., is a "qualified person" within the meaning of NI 43-101 and considered to be "independent" of Osisko Development for purposes of Section 1.5 of NI 43-101, has reviewed and confirmed that the news release fairly and accurately reflects the information in the technical report for which he is responsible.

Davide Willms, P.Eng., of Klohn Crippen Berger Ltd., is a "qualified person" within the meaning of NI 43- 101 and considered to be "independent" of Osisko Development for purposes of Section 1.5 of NI 43-101, has reviewed and confirmed that the news release fairly and accurately reflects the information in the technical report for which he is responsible.

Michelle Liew, P.Eng., of Klohn Crippen Berger Ltd., is a "qualified person" within the meaning of NI 43-101 and considered to be "independent" of Osisko Development for purposes of Section 1.5 of NI 43-101, has reviewed and confirmed that the news release fairly and accurately reflects the information in the technical report for which she is responsible.

Katherine Mueller, P.Eng., of Falkirk Environmental Consultants Ltd., is a "qualified person" within the meaning of NI 43-101 and considered to be "independent" of Osisko Development for purposes of Section

1.5 of NI 43-101, has reviewed and confirmed that the news release fairly and accurately reflects the information in the technical report for which she is responsible.

For further information regarding the Cariboo Gold Project, please see the technical report titled "Preliminary Economic Assessment for the Cariboo Gold Project, District of Wells, British Columbia, Canada", dated May 24, 2022 with an effective date of May 24, 2022 on the Company's website or under the Company's profile at www.sedar.com.

About Osisko Development Corp.

Osisko Development Corp. is uniquely positioned as a premier gold development company in North America to advance the Cariboo Gold Project and other Canadian and Mexican properties, with the objective of becoming the next mid-tier gold producer. The Cariboo Gold Project, located in central British Columbia, is Osisko Development's flagship asset. The considerable exploration potential at depth and along strike distinguishes the Cariboo Gold Project relative to other development assets. Osisko Development's project pipeline is complemented by its interest in the San Antonio gold project, located in Sonora.

For further information, please contact Osisko Development Corp.:

Jean Francois Lemonde
VP Investor Relations
jflemonde@osiskodev.com
Tel: 514-299-4926

Non-IFRS Measures

The Company used in this news release, certain non-IFRS measures including, "all-in sustaining cost" or "AISC". All-in sustaining cost per gold ounce is defined as production costs less silver sales plus general and administrative, exploration, other expenses and sustaining capital expenditures divided by gold ounces. The Company believes that such measures provide investors with an alternative view to evaluate the performance of the Company. Non-IFRS measures do not have any standardized meaning prescribed under IFRS. Therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

The following table provides a reconciliation of AISC per gold ounce to the 2021 consolidated financial statements:


 Table 7: Operating Cost Summary

Operating Costs   Units For the year ended
2021
(1)
PEA Total
LOM
Mining Cost (USD MM) 0.0 1,169.1
Transportation (USD MM) 0.0 85.4
Processing (USD MM) 0.0 532.1
Tailings, waste and water management (USD MM) 0.0 128.8
General & administration (USD MM) 0.0 169.1
Royalty & Refining Charges (USD MM) 0.0 261.7
Sustaining Capex (USD MM) 0.0 415.1
Closure Cost & Salvage Value (USD MM) 0.0 -33.6
AISC Total (USD MM) 0.0 2,727.7
Gold ounces (koz) 0.0 2,836.6
AISC per gold ounce   (USD/ounce) 0.0 961.62

(1) The Company did not disclose AISC information in its 2021 financial filings as none of the Company's test mining operations were in commercial production.

Forward-looking Statements

Certain statements contained in this press release may be deemed "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. These forward‐ looking statements, by their nature, require Osisko Development to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward‐ looking statements. Forward‐ looking statements are not guarantees of performance. Words such as "may", "will", "would", "could", "expect", "believe", "plan", "anticipate", "intend", "estimate", "continue", or the negative or comparable terminology, as well as terms usually used in the future and the conditional, are intended to identify forward‐ looking statements. Information contained in forward‐ looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including the Company's expectations and ongoing and proposed work at the Project, operating and other cost estimates, metal price assumptions, cash flow projections, potential mineralization, ability to realize upon any mineralization in a manner that is economic, metal recoveries and grades, mine life projections, production rates, estimated AISC, NPV and IRR, potential to further enhance the economics of the Project, securing the required financing, permits and licences for operation, and any other information herein that is not a historical fact may be "forward looking information". Material assumptions also include, management's perceptions of historical trends, current conditions and expected future developments, results of further exploration work to define and expand mineral resources, as well as other considerations that are believed to be appropriate in the circumstances. Osisko Development considers its assumptions to be reasonable based on information currently available, but cautions the reader that their assumptions regarding future events, many of which are beyond the control of Osisko Development, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect Osisko Development and its business. Such risks and uncertainties include, among others, risks relating to capital market conditions, regulatory framework, the ability of exploration activities (including drill results) to accurately predict mineralization; errors in management's geological modelling; the ability of to complete further exploration activities, including drilling; property and stream interests in the Project; the ability of the Company to obtain required approvals; the results of exploration activities; risks relating to exploration, development and mining activities; the global economic climate; metal prices; dilution; environmental risks; and community and non-governmental actions and the responses of relevant governments to the COVID-19 outbreak and the effectiveness of such responses.


For additional information on risks, uncertainties and assumptions, please refer to the most recent Annual Information Form of Osisko Development filed on SEDAR at www.sedar.com which also provides additional general assumptions in connection with these statements. Osisko Development cautions that the foregoing list of risk and uncertainties is not exhaustive. Investors and others should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Osisko Development believes that the assumptions reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be accurate as actual results and prospective events could materially differ from those anticipated such the forward looking statements and such forward-looking statements included in this press release are not guarantee of future performance and should not be unduly relied upon. The forward‐looking statements set forth herein concerning Osisko Development reflect management's expectations as at the date of this news release and are subject to change after such date. Osisko Development disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.