Osisko Development (NYSE: ODV, TSXV: ODV) got all permits Thursday for its $588-million Cariboo gold project in central British Columbia, clearing the way for construction.
The underground mine will produce about 1.9 million ounces of gold over 12 years. Last year’s feasibility study calculated an after-tax net present value of $502 million at a 5% discount rate and a 21% internal rate of return, based on a gold price of US$1,700 per ounce.
Federal approval and B.C. Mines Act permits granted in November allow Osisko to advance the project. “This project is one step closer to operation, which will provide good, well-paying jobs and create long-term opportunities for local businesses, communities, and First Nations,” B.C. Mining Minister Jagrup Brar said in a statement.
After securing project financing, Osisko plans to start full-scale construction in the second half next year. The company is actively negotiating funding options, including a comprehensive financial package.
The B.C. Mines Office’s mine review committee approved permits under the Mines Act for the mine site complex, the Bonanza Ledge deposit and the QR mill. These permits cover construction, operation, reclamation and environmental discharges. They include water and air quality standards.
Osisko is also working with B.C.’s Water, Land and Resource Stewardship and the Forests Ministries to get approval for transmission lines.
As the project progresses, Osisko has committed to sustainable practices and close collaboration with local communities and First Nations.
Cariboo is the first project fully assessed under the province’s 2018 Environmental Assessment Act. The amended rules aimed to boost public participation and support B.C.’s commitment to Indigenous reconciliation and the U.N. Declaration on the Rights of Indigenous Peoples.
The Lhtako Dené and Williams Lake First Nations support the Cariboo permitting process. In contrast, the Xatśūll First Nation is concerned about potential harm to nearby communities and wildlife. They even threatened legal action.
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