Osisko Gold provides update on Upper Beaver, Shaakichiuwaanaan projects

Osisko Gold Royalties provides some select asset updates. Jason Attew, President & CEO of Osisko commented: “Over the past few months, Osisko’s asset base provided for some positive developments that have surfaced incremental value for the Company, with more portfolio catalysts expected between now and end-of-year 2024. In the meantime, much of Osisko’s short-to-medium-term growth continues to be underpinned by several advanced projects including three shafts currently under construction at Odyssey Underground, the Island Gold District, and Hermosa/Taylor, along with two open pits at, or nearing, the final stages of development at Tocantinzinho and Namdini, respectively.” Upper Beaver Project: On July 31st, 2024, Agnico Eagle Mines (AEM) provided an update on its Upper Beaver project located approximately 25 kilometres to the east of the town of Kirkland Lake in Ontario, Canada. A positive internal evaluation was completed for a standalone mine and mill scenario at Upper Beaver. Based on this evaluation, Agnico Eagle believes Upper Beaver has the potential to produce an annual average of approximately 210,000 ounces of gold and 3,600 tonnes of copper, with initial production possible as early as 2030. Over an expected 13-year mine life, total payable gold and copper production is expected to be approximately 2.8 million ounces and 46,300 tonnes, respectively. The mining strategy developed for the Upper Beaver project is to mine the deposit mainly by conventional underground methods, although a small portion will be mined via an open pit. The underground and open pit mines are expected to be developed within the same time frame. Current scenarios contemplate underground access through a main decline ramp as well as a shaft that is 1,220 metres deep. In addition, the project has the potential to unlock significant exploration potential at depth and within satellite deposits in Agnico Eagle’s Kirkland Lake camp, including the Upper Canada and Anoki-McBean projects. Agnico Eagle has approved a US$200 million investment over three years to further de-risk the project, with work having already commenced in 2024. Excavation of the ramp and shaft-sinking are expected to start in H2 2025. Osisko’s owns a 2% net smelter return royalty on the Upper Beaver project, as well as a 2% NSR royalty that covers most of Agnico’s Kirkland Lake regional properties, including Amalgamated Kirkland, Munro, Anoki-McBean, Bidgood, and Upper Canada. Shaakichiuwaanaan Project: On August 21st, 2024, Patriot Battery Metals (PMETF) announced the results from a Preliminary Economic Assessment for its flagship Shaakichiuwaanaan hard-rock lithium project located in the Eeyou Istchee James Bay region of Quebec, Canada. The PEA was based on the CV5 Pegmatite component of the recently announced updated Shaakichiuwaanaan Mineral Resource Estimate, which is the largest known lithium pegmatite Mineral Resource in the Americas and the 8th largest globally. Based on the PEA, the Shaakichiuwaanaan project has the potential to become one of the largest spodumene producers in the world and the largest spodumene producer in the Americas. The PEA incorporates a staged development strategy, with Stage 1 targeting production capacity of ~400 kilotonnes per annum of spodumene concentrate and Stage 2 aimed at expanding the production capacity to ~800 ktpa. The Shaakichiuwaanaan project’s mine life is projected at 24 years, based on a total extracted Mineral Resource of 66% of total resources defined at CV5. Based on the results of the PEA, Patriot will now consider advancing the project to the Feasibility Study level, which if progressed is expected to be completed in Q3 2025. Osisko holds a sliding scale NSR royalty of 1.5-3.5% on precious metals, and 2.0% on all other products, including Lithium, at Shaakichiuwaanaan. Osisko estimates that a large majority of the CV5 MRE falls on its 2.0% Lithium NSR royalty area. The PEA includes only the CV5 Spodumene Pegmatite, and therefore does not include any of the other known spodumene pegmatite clusters on the property – CV4, CV8, CV9, CV10, CV12, and CV13; some of which are covered by Osisko’s royalty.