11:44 AM EDT, 04/28/2025 (MT Newswires) -- (Adds comment and updates shares.)

Osisko Development ( ODV ) reported Monday the results of an optimized feasibility study for the Cariboo gold project in British Columbia.

The company said the study supports the development of an $881-million mining project producing 190,000 ounces of gold annually over a 10-year mine life

The study outlined a post-tax net present value of $943 million using a 5% discount and a base case gold price of US$2,400 per ounce, with a 22.1% internal rate of return and a 2.8-year payback period.

Using the spot gold price of US$3,300 per ounce, the post-tax net present value at the same discount rate increases to $2.1 billion, with a 38.0% internal rate of return and a 1.6-year payback period.

"The results reaffirm our view that Cariboo is a high-quality asset with robust returns and significant upside potential within the existing mine plan," said chief executive Sean Roosen.

Osisko Development ( ODV ) said a formal positive final investment decision and securing a project financing package in the coming months would allow some construction activities to begin in the second half. The project is expected to be completed at the end of 2027.

National Bank of Canada reiterated its outperform rating and $4.75 price target after the update.

"The optimized [feasibility study] shows the permitted Cariboo project cleared another step toward becoming the next mine built in Canada as economics maintain sizable upside vs. the current valuation," National Bank said.

Osisko Development's ( ODV ) shares were last seen down $0.11 to $2.18 on the TSX Venture Exchange.

Price: 2.17, Change: -0.12, Percent Change: -5.24