Name of the Project
Cariboo gold project.
Location
Wells-Barkerville mining camp, in the District of Wells, British Columbia, Canada.
Project Owner/s
Osisko Gold Royalties acquired Cariboo in September 2019 through the acquisition of Barkerville Gold Mines.
Project Description
The Cariboo gold project is an extremely scarce asset, with measured and indicated resources totalling 14.6-million ounces grading 3.33 g/t gold, and 15.47-million ounces in the inferred resource category grading 3.44 g/t gold. Probable reserves are estimated at 16.7-million tonnes grading 3.78 g/t gold.
A feasibility study, released in early 2023, envisions a robust and scalable underground operation expected to produce about 1.87-million ounces of gold over a 12-year mine life.
Potential Job Creation
The project is expected to contribute about 320 permanent jobs during the production phase and an additional 120 during the construction phase.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of C$502-million and an internal rate of return of 20.7%.
Capital Expenditure
Preproduction capital expenditure is estimated at C$137.3-million. Expansion capital is estimated at C$451.1-million.
Planned Start/End Date
First production is expected in 2024 and Phase 2 in 2027.
Latest Developments
Osisko Development is facing potential legal challenges over its Cariboo gold project as the Xatśūll First Nation threatens to take legal action if its concerns are not addressed.
The First Nation called on Osisko and the provincial government on November 7 to halt the project until a resolution is reached.
The First Nation is concerned about the project's potential impact on the Southern Mountain subspecies of the Barkerville Woodland caribou herd, among other environmental and cultural issues.
Despite these concerns and Xatśūll withholding consent for the project, the provincial Environmental Assessment Office issued an environmental assessment certificate for Cariboo in October 2023.
The First Nation claims negotiations with Osisko have been "unproductive", with "very minimal progress" made in addressing the Nation’s concerns.
“Although Xatśūll is currently at the table with Osisko, the Nation is asking for Osisko to reach an agreement with Xatśūll before taking any further steps to complete the permitting process,” Xatśūll’s Kukpi7 Phillips said.
The First Nation has also urged the provincial government to prioritise a collaborative process to address outstanding issues and to develop a consent-based decision-making framework for mining activities in Xatśūll’s territory.
“We emphasise that Xatśūll would like to see sustainable resource development in our Territory, but it’s remarkable that in 2024 the province and Osisko continue to barge ahead with this mine without our consent,” Phillips noted.
He has warned that any permits issued without addressing the Nation’s concerns would be “highly vulnerable to legal challenges”. Referring to the Tsilhqot’in case, Phillips noted that the Supreme Court of Canada ruled that the Crown may be required to halt a project if it started without Indigenous consent, particularly if continued development unjustifiably infringed on Aboriginal title.
He said the Cariboo project could also be at risk if Xatśūll brought a Blueberry River infringement claim against the province, based on the cumulative effects from industrial developments that had been authorised.
The Xatśūll First Nation’s statement comes as Osisko reports that its Cariboo project has been referred to the statutory decision-maker in the BC Ministry of Energy, Mines, and Low Carbon Innovation for a decision on permits. Osisko also stated that the Environmental Management Act permits had been reviewed, and the company expected final decisions on the project in the fourth quarter of 2024.
Osisko signed participation agreements with each of the Lhtako Dené Nation in 2020 and the Williams Lake First Nation in 2022, however, the company has acknowledged that it has yet to reach an agreement with the Xatśūll First Nation.
Key Contracts, Suppliers and Consultants
Allnorth Consultants; BBA; InnovExplo; Golder Associates; Mining Plus Canada Consulting; SRK Consulting; and WSP Canada (preliminary economic assessment).
Contact Details for Project Information
Osisko Gold Royalties, tel +1 514 940 0670 or email info@osiskogr.com.