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Osisko Development Corp.

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September 17, 2024 at 11:30 AM (MDT)|Broadmoor Hotel & Resort

Sean Roosen

Founder, Chairman & CEO

Mr. Sean Roosen is Founder and former Chair & CEO of the Board of Directors of Osisko Gold Royalties. Mr. Roosen was previously Chair of the Board of Directors since the Company’s inception in 2014 until 2023. Mr. Roosen was a founding member of Osisko Mining Corporation (2003) and of EurAsia Holding AG, a European venture capital fund.

Mr. Roosen has over 30 years of progressive experience in the mining industry. As founder, President, Chief Executive Officer and Director of Osisko Mining Corporation, he was responsible for developing the strategic plan for the discovery, financing and development of the Canadian Malartic mine. He also led the efforts for the maximization of shareholders’ value in the sale of Osisko Mining Corporation, which resulted in the creation of Osisko Royalties. Mr. Roosen is an active participant in the resource sector and in the formation of new companies to explore for mineral deposits both in Canada and internationally.

In 2017, Mr. Roosen received an award from Mines and Money Americas for best Chief Executive Officer in North America and was, in addition, named in the “Top 20 Most Influential Individuals in Global Mining”. In prior years, he has been recognized by several organizations for his entrepreneurial successes and his leadership in innovative sustainability practices. Mr. Roosen is a graduate of the Haileybury School of Mines.

This is an automatically generated transcript. Denver Gold Group cannot accept responsibility for mistakes, errors, omissions, or any action taken in reliance thereon. Use of this transcript is governed by Denver Gold Group’s Terms of Use.

He was responsible for the developing the strategic plan for discovery financing and development of the Canadian Malartic mine, which we all know in Nico Eagle's portfolio. He has also led the efforts for maximization of value in the sale of a cisco mining, which of course resulted in the creation of cisco royalties over to you Sean. Thank you. Thanks very much. So to finish the evolution, I we sold the, the Cisco one in 2014, we founded the Cisco royalties which is now a $4 billion company. And then most recently, John and I had founded O Cisco Mining two and O Cisco Development as we went through and then most recently Don has has concluded the sale of a cisco mining two Os K for $2.1 billion last week and the deal is still pending. So, within the Cisco platform, we've been busy at work with myself and the co-founders. John Brzezinski and Bob Weir, Cisco Development is now my focus, 100% focus. We're here to build the next the next 500,000 ounce here. Producer again, back to where we started from currently trading about a 250 to $300 million market cap. It's a lot to do here and the right properties to do it. The two main assets right now we're going to focus on today. will be the Caribou gold project in Central British Columbia with about a 2000 square kilometer 500,000 acre land package with a significant amount of mineralization that remains open to do and a starter mine that's in development as we speak. We're also advancing the tinte project which has four elements to its. the main reason we are there is for a Binghams style copper gold porphyry look alike that we believe exists at depth in the bottom of the grain. And then several other as aspects of that project that have both a gold tinge as well as AC RD aspect to it. In terms of our development, we've been focused on underground bulk tonnage as we evolve from open pit bulk tonnage and two things. And our Caribou gold project is advancing well and should be the next permanent gold mine in Canada of scale. The terrible gold projects located in Central BC just outside of Quinnell. About a 45 minute drive. Cornell is a town of 28,000 people. We are on BC grid power and we expect to get green power from site c at a 40 megawatt power. We received our E A certificate in October of 2023. So we're the first company in British Columbia to go through the new permitting process, which is essentially a single wicket process that we see in the international. It was very well timed. They said it was going to be 3.5 years, it was 3.5 years. And we're hoping to see the final referral of the construction and an operating permit for October November of this year. So very much on track and very current with the bottom of the so called LASAN curve or the Ned Goodman curve depending on which bandage you are. So that's that's pretty exciting for us. And as we exit towards the, the production side of this project, a lot to do here As we get moving forward, We also have the San Antonio project in Mexico right now, which we're looking for an alternative on as the Mexican government is not authorizing open pit permits at this time. The intake project is, is quite an interesting one. It's about 40 miles south of Bingham, which has produced 11 million tons of, of of, of copper and has also produced 54 million ounces of gold and 800,000 ounces of silver. And we believe we have a shot at one that's, that didn't outcrop like Bingham did. So those are the, the main aspects of what we're trying to do. As you can see, the town of Wells is actually the reason that British Columbia was included in the Canadian Confederation at the time, gold was discovered here in 1862 and became the largest gold rush after the California 49er and before Yukon. and it was the largest city north of San Francisco with 22,000 people in from about 1870 to about 1900. So it's quite a historic site and there's a lot of work here. We have a consolidated land package and that we control a lot of this belt. There's 83 kilometers of documented mial trend with over 1000 sort of old workings on it that we've been able to consolidate and 800,000 m of drilling that we carried out since we got there. We are mining something that the old timers did not mine. So they were looking at these new vein corridors and we're looking at mining at about 3.78 g a ton as opposed to the old timers who were mining at 15 to 20 g in the high grade replacement zones. So a lot like what we did at Canadian Malartic where we went in with a bulk tonnage plan. and unwinding a geological story that hadn't really been figured out before we got there., we kind of had our aha moment in around 2018. and then we applied for the permit E A permitting process in 2019., at which point in time we had, collectively about 2 million ounces of reserves and another 1.5 million ounces, 1.57 million ounces and measured and indicated another 1.74 and inferred, but all those inferred ounces are actually within the mine plan territory. So we expect a lot of these things to convert, but we didn't want to drill them from surface at the time. So the plan here is to start out with a 4950 ton a day mine which will come online at about 220,000 ounces a year. And then to look for the next two mines which we believe are directly underneath this one. As we get further into it in terms of what we own, we actually own another mine site called the QR mine site, which was an old Echo Bay Kinross Project. You can see that middle in the bottom right hand corner of about 1000 ton a day C IP or CIL circuit depending on which way you go. That middle picture. So is our road header which is a sand vic piece of equipment. It's 100 and 10 ton piece of equipment that essentially is a tunneling piece full of the electric and no drill blasts and no, no contact water. And you can see the portal that we are working on right now. We're about 550 m in on the first drive into the our body and we should be touching the, our body in October and then we'll complete the bulk sample and the test work on the other piece of technology we've introduced here, which is the or order which is the modern version of of hand Cobb which used to be the main way that people mine in North America in terms of our permitting timeline. This is a bit of a summary. So we're actually you know, at the bottom of the bottom of the value curve on our way back up. So we expect that this mine fully built should generate significant bump from the $250 million market cap that we're sitting at right now. And it is a large Canadian asset with scalability. My goal here is to end up with 5 to 7 mines with a central processing facility. So this is my number one and we continue to do the exploration on this region and to bring the mechanized underground mining to it, it's not going to be anything cutting edge. It's long haul at 30 m benches so fairly standard technology just on a larger scale. And we're going to be using 65 ton haul trucks, electric haul trucks and, and a very simple mine with a lot of electrical integration in terms of the actual process facility that we're using with the O order as well as the mining fleet itself. So first production, we should see some some early production in 2025 from development and material that we can process at our existing QR mill or we can ship to some of the other mills. We have processed material at the Mount Pauly mine which is Imperial's Mine, which is about 80 kilometers away from us as the crow flies. And then there's also the Gibraltar mine to the north and there's a couple of custom mills in the area as well. But we do own our own 1000 ton day mill for, for doing bulk bulk samples and everything else ourselves. So I think it is an important project. When you look at it, the M and a landscape right now. Obviously, Os K was the most recent one ODV is rising up the ranks in terms of permitted large scale mines that can be of consequence in the mining space. As you can see our average production here from the 2023 feasibility study is about 100 and 90,000 ounces with significant amount of upside both in the in in the measured and indicated. And the and the, the infer that were not in the mine plan but are adjacent to the mine working. So they will be in the mine plan As we do more infield drilling from underground again, grid power at 6.6 cents, Canadian about five cents U US dollars an ounce. We have 40 megawatts assigned to us from BC Hydro. So quite a good advance there. And you know, big key factor for bulk mining is a, is a primary energy costs and Canada boasts some of the best in the world accessibility. We have a town of 28,000 just north of just west of us. that has six sawmills in the region closing. So we see a lot of skilled talent in our area and we're an hour and a half south of Prince George, which is a town of 200,000 people and has just about everything that a mining and logging company could dream for. in terms of facilities and dealerships, existing infrastructure, this is a brownfield site. We have, we purchased our milling equipment three years ago. So we have a 7500 ton a day commun circuit crushers and and ball mills sitting in storage and wells or in in Prince George as well as about 250 man. Camp and infrastructure on site to host the workers that we need for construction. The existing QR Mill that's 1000 ton a day, fully permitted, fully operational mill that we made 22,000 ounces of gold from in 2023 22. We've been able to to do this is relatively shallow. This thing only goes down to about 1000 ft or 350 m for the first overall ounces here. And then partnerships complete Ibas with the first nations, Leto Don a Williams Lake. that we're working with. We also have Zato which we're we're completing with. probably the biggest thing to take away from this thing is the ounces per vertical meter. I'm an old, old style miner. So I think in ounces per vertical foot or ounces per vertical meter, this deposit so far has averaged 14,000 ounces per vertical meter or 1.4 million ounces. For every 100 m of that we've gone down or every 330 ft. That is very good in our world right now. When we look at underground mines, it's about three times the average that we see in bulk tonnage mines elsewhere. And this includes a couple of spots that you see that weren't drilled and those were due to surface access issues of a swamp. But we believe that that will fill in. So we're 4.4 kilometers of strike length here. And the rule of thumb for underground mining is it, you know, it costs you about $5000 a meter to go horizontally on a drift. And if you're going down a vertical ounce at a vertical meter, you have to do, it's 15% grain, you have to do 6 to 7 times as many meters to go down a meter. So lateral ounces are more valuable than vertical ounces. So if you can just drift out and stay in the ounces, that's the lowest cost. So this is pretty good in terms of what we're trying to achieve here. And if we look at this drilling, we see in yellow, the areas that we've drilled into, but we've not drilled it to resource level. We know this deposit goes down to 3000 ft or at least 1000 m. We think it probably can go down to at least 1500 maybe 2000 m. So that's quite a bit of upside. So the next three mines that we need to develop are actually just below this one. So there'll be three mines in there. Think of it as a clubhouse sandwich with three different ramps and three different basically three separate operating areas, which if we're able to do 5000 tons a day per ramp, We'll be able to go to ramp up to 15,000 to 20,000 tons a day, which would put us in the 4 to 500,000 ounce a year category, which is back to where I like to live, which is, you know, the top 20 mines in the world. So that is the goal of this project. A couple of comparables here for you, I think are fairly important. The Alamos Young Davidson mine in the mineral mineral in the Alamos gold portfolio located in Kirkland Lake Ontario. Currently mining at 2.2 g. We're at 3.78 g. So we're about 60% higher grade than Young Davidson with about four times the strike length. strike length at Young Davidson is about 800 m. So most of their work has to be in ver vertical development underground Agnes Gold. A it's 1.74 g and about a, a 900 m strike length. You know, they're mining at at $1000 an ounce at 1.74 g underground. So we're more than twice the grade of gold X the Laron mine which is now 10,000 ft deep, one of the deepest mines in North America, if not the deepest and they're at about a kilometer or two in terms of strike length. and they're at but the same grade as us with, with AIC of about 1100 bucks announced, but you know, we're down 350 m. they're down 3000. So quite a bit of difference there. in terms of what we can do with this project, obviously, getting a central processing facility and getting the permit were the number one de risking aspects of this. So the permit is now imminent for October, late October, November, which will give us 4900 tons a day. And then we'll be looking for an expansion permit after that, which is significantly easier than trying to do that where the reason we went to 5000 tons a day to start with, is number one that keeps us out of the Federal E A process. And then the next mine will do won't have much surface disturbance because it's just going to be at depth as we expand downwards. So that's kind of the strategy, the overall project. And the reason that I, you know, sort of stopped doing what I was doing 10 years of me running a royalty company is probably enough for everybody. So it was to go back and take it on a mining camp where we believe we can build multiple mines with a central processing facility. We put the val D'or camp up against the Caribou camp and we know this is our land package and we control about 83 kilometers and two trends. Then the main Corridor Caribou gold trend which is 50 kilometers and the the Yanks peak trend, which is about 33 kilometers. So to put that in context, you know, this is almost the same size as the Carlin trend. in terms of geography, obviously, we're not that well endowed from a goal standpoint as, as the, as the Carland is, but this is a very significant belt and it's been under explored and geologically, the model was never really figured out before. Our team figured it out in 2018, 2019. And since then, we've had 100% hit rate with all of our drill holes. And we really stopped drilling here in 2020 2122 to, to focus on the permitting and to get underground. So the drilling costs would be less. So that's, that's where we are. Now, that strategy is, is being enacted as we speak. And we want to focus on the next leg of this journey, which is the next Prosser Pine will be the next big drill out and the a depth ounces here. So significant amount of wealth to be generated at the drill bit for us on this one. The second most important project in the Caribou in the ODV portfolio is the tint project located just about a 45 minute drive east of Provo, Utah and the old Eureka district that was called. And we're about 40 miles away from the the, the the Rio Tinto Bingham mine, which has produced significant ounces of 50 51 million ounces of gold and 11 million tons of copper. So it's a, it's a big target. The reason we're here is we think that there is another Bingham lookalike at depth in this project. There are 23 historic producers out here and you can see one of the head frames in the mill that was there that was on site that we're actively in right now and that's where we're carrying on operations. There were 18 crd mines in production here and we believe there's a significant amount of crd work to be done. And there are five gold mines here as well as this at depth copper gold porphyry target. The geology here is that there's a large grab and you see these two fault zones that are on, on the east and the west and you see the pink areas, the Big Hill and the Silver Pass litho caps. These are giant litho caps by any scale and could only be generated by a significant heat source. Dick Sillito originally generated this, this target. He was doing 70 days a year for us back from 2010 and forward. And a bunch of guys in our, our think tank are really sort of Dick Solito disciples and we generated this target and we took, it, took us 10 years to own it. So we bought it in 2022. And we're now, we're now working on it and we have significant amount of targeting with the epi the gold systems. There, we're Trixie, we're underground there. We've got a small resource of a couple of 100,000 ounces which 100 and 50 is sort of ready to mine. And we're, we got some crosscuts and we drove a ramp in there. The big target is going to be the Silver Pass litho cap. We drilled a couple of holes near Big Hill. We've got indications of mineralized porphyry but not the bingo. So we're continuing to move south and this, this area and the yellow is all of cisco property In the gray is Ivanhoe Electric and then to the south of us in the White is Freeport mcmillan. So we've got some pretty good friends and neighbors on this project and we are hunting elephants in the copper gold porphyry systems. The carbonate replacement deposits which were of which there's 18 of them historically mined in this area exists and there's an over shale cover to the east that we believe there's a significant amount of these deposits and we're modeling it after Hermosa, which we were involved in back during the Arizona Star days. that that potential continues to go there. And we have one other thing on the go which is a historic Tailings pond which is full of manganese. that the state Department has asked us to look at. so we're just doing some work on that and see if there might be a Tailings project there as well because right now the US has no domestic source. So this falls under their strategic mineral policy as we go forward so that, you know, we have the big gold project in Canada. We have a significant gold project here with the five mines that are five kilometers of strike length along that eastern flank that North Lily mines at the north mined at 45 g a ton. The one that we're in now Trixie was between eight and 22 g. And all the mining that went on here was for quartz vein systems that were being used as flux at Bingham and they stop mining at the water contact at about 350 m or about 1300 ft. So everything is in that goal system is still intact below that going there and then all the rest of the crd and the strategic minerals that we're we're doing. So this this company offers a portfolio that's exposed not only to precious metals but also to the critical minerals that we see important and it's located in Utah this section which is the best jurisdiction by Fraser Institute rules in the in the cur currently on the Fraser list, they say it is number one. So I won't go into the regional geology, but this is sort of where we're at. If anybody has any questions about the detailed geology, we'd be happy to take it on. The company is held 39% by Cisco royalties with about a $250 million market cap as we sit today with about $70 million available for work into the ground trading at 0.3 times now, significant scale here, and definitely a top 10 on the M and a list from everybody I've seen. So, as you know, we, we build things to mine them, but we don't often get the chance to continue that as we have always had good assets within the Cisco Group. And as I like to say, the best jockey always wins the Kentucky Derby, but the best jockey never shows up on a donkey. So at the end of the day, asset selection is the main calling card that we bring to the table and I think I'll wrap it up there. Yeah, thank you, Sean. No doubt. It's ranks high in that M and a list plus expiration upside and and near term catalyst. Too, that could provide some drivers. That's all the time we have today for this session. So, once again, that's a Cisco Development Corp. And thank you.


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