300,000 oz Au Average in First Seven Years of Full Production
39.3% After-Tax IRR and C$1.5 Billion After-Tax NPV at US$1,500/oz Au with 18 Year LOM
C$253 Million Average Annual After-Tax Free Cash Flow in First Seven Years of Full Production
TORONTO, April 07, 2021 (GLOBE NEWSWIRE) -- Osisko Mining Inc. (OSK:TSX. "Osisko" or the "Corporation") is pleased to provide significant positive results from the independent Preliminary Economic Assessment (“PEA”) prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") on its 100% owned Windfall gold project located in the Abitibi greenstone belt, Urban Township, Eeyou Istchee James Bay, Qubec.
The PEA provides a robust base case assessment for developing the Windfall gold deposit as an underground dual ramp-access mine with a central processing mill at the site. The study includes drill results available as of November 30, 2020. Osisko is rapidly advancing surface and underground work at Windfall, with over 8.5 kilometres of underground exploration ramp, recently achieving 500 metres vertical depth ( see Osisko news release dated March 25, 2021 ).
Highlights
- First 7 years of full production: 300,000 oz Au per year average, 8.1 g/t Au average diluted grade
- Peak recovery of 328,000 oz Au in year 6; average production over 18 year life of mine (“LOM”) of 238,000 oz Au per year (based on MRE database as of November 2020)*
- 50.6% Pre-Tax Internal Rate of Return (“IRR”), 39.3% After-Tax IRR; C$2.6 Billion Pre-Tax Net Present Value (“NPV”), C$1.5 Billion After-Tax NPV; After-Tax Payback Period 2.2 years from start of production
- Average annual after-tax free cash flow of C$253 Million in the first seven years of full production (C$1.8 Billion cumulative), cumulative LOM after-tax free cash flow of C$2.6 Billion
- AISC of US$610/oz Au
- Capital expenditure (“Capex”) of C$544 Million (includes power line construction and C$55 Million as contingency in direct and indirect costs), NPV/Capex ratio of 2.7
- PEA assumes 3,100 tonnes per day (“tpd”) milling operation
- Average gold recovery of 94.8%; total operating cost of C$122/tonne
- Windfall will generate over C$8.2 Billion of gross revenue and C$1.7 Billion in taxes
- Creation of approximately 400 direct jobs and 200 indirect jobs during operation, over 500 jobs during construction