Osisko Gold (NYSE:OGG) is proceeding with full-scale construction of its Cariboo Gold Project in British Columbia, Canada, targeting first gold production in early 2029.
Located in the Wells-Barkerville mining camp of central BC, Cariboo comprises a proposed underground gold mine and processing facility that has been fully permitted since 2024.
Some construction activities on the C$1.2 billion ($1.21 billion) project are already underway, with the overall development about 22% complete as of the end of July, according to Osisko.
Chairman and CEO Sean Roosen describes the decision to begin full-scale construction as a ‘defining milestone’ for the company and an inflection point in its ambition to become an intermediate gold producer.
“This decision is a culmination of more than a decade of derisking work on the project, from early exploration when the first drills hit the ground in 2015, through permitting and technical studies, and into project financing and pre-construction,” Roosen says.
First gold targeted for 2029
According to a 2025 Feasibility Study, Cariboo is expected to produce approximately 1.89 million ounces of gold over a 10-year mine life.
Based on spot gold prices, the project carries an after-tax net present value, discounted at 5%, of C$3.2 billion and an internal rate of return of 42.7%.
Osisko estimates the remaining capital required to complete the project at C$990 million.
The updated estimate reflects spending to date, progress on detailed engineering and major contract procurement, as well as revised cost assumptions accounting for inflation and broader industry and labour trends, the company says.
Osisko has also made modifications to the construction schedule, which is now expected to span around 30 months starting from 1 August 2026.
This places the scheduled first pour in the first quarter of 2029, followed by commercial production in the second half of the year.
Trafigura backs development
To help fund the construction, Osisko has secured a US$30 million ($42 million) equity investment from affiliates of commodity trader Trafigura, alongside a potential US$120 million gold prepayment facility.
Under the agreement, Trafigura will acquire approximately 9.6 million Osisko shares at US$3.14 per share. It will also purchase all gold concentrate and doré produced at Cariboo during the first four years of production.
Alongside construction, Osisko is ramping up resource conversion drilling within the existing deposit and other areas covered by its permits, while continuing exploration across the broader Cariboo property.
Osisko Gold is a continental North American gold development company focused on past-producing mining camps with district-scale potential.
Write to Jackson Chen at Mining.com.au
Image: Osisko Gold Group
