CYSic Confirms New High-Grade Gold System Near Cariboo With 26,500m Drilling Plan

• Osisko Gold Group defined a new mineralized system at the Proserpine target with high-grade gold intercepts, including 95.93 g/t over 4.60 meters, expanding the known footprint to 1 km by 500 meters.
• The company raised US$300 million through convertible notes to fund exploration at Proserpine and development activities at its permitted Cariboo Gold Project in British Columbia.
• Initial drilling at Proserpine confirmed broad lower-grade zones alongside high-grade structures, suggesting potential for future open-pit mining operations near the main underground deposit.
• Osisko plans to drill 26,500 meters at Proserpine using three rigs to increase drill density and test the large target that remains open in all directions.

Osisko Gold Group Inc. has confirmed the presence of a significant new mineralized system at its Proserpine regional target, located approximately seven kilometers southeast of its permitted Cariboo Gold Project in central British Columbia. The company reported initial diamond drilling results from a program that completed 6,463 meters across 14 drill holes between February and May 2026. These results have expanded the known mineralized footprint at Proserpine to roughly one kilometer along strike by half a kilometer in width. Gold was encountered from near-surface depths to beyond 400 meters, with mineralization remaining open in all directions. All holes that reached their target depth intersected mineralization, prompting the company to resume drilling operations with three rigs. Notable intercepts include hole PSP-26-004, which cut 4.6 meters grading 95.93 grams per tonne gold, and hole PSP-26-001, which intersected 8.6 meters grading 5.46 grams gold. The drilling has confirmed high-grade gold structures and broader lower-grade zones that together suggest potential for open-pit mining operations.

What Capital Is Funding The Expansion?

Osisko Development Corp. has secured substantial liquidity to support its exploration and development activities. The company announced the closing of an additional US$75 million in 4.125% Convertible Senior Notes due 2031. This closing represents the full exercise of the initial purchasers' option to purchase additional notes from a previously announced offering. Additionally, the company closed a non-brokered private placement of notes with Double Zero Capital. The total capital raised through these transactions amounts to US$300 million. The proceeds from this offering are intended to support the company's exploration and development activities, particularly at the Cariboo Gold Project. The convertible nature of the notes offers investors the potential for upside participation in the company's equity value while providing the company with debt financing at a fixed coupon rate. This capital injection strengthens the company's balance sheet, reducing reliance on immediate equity dilution for near-term operational needs.

How Does Proserpine Complement Cariboo?

The Cariboo Gold Project is Osisko's main development project, located in the historic Wells-Barkerville mining camp. It includes a permitted underground mine and processing complex. A 2025 feasibility study envisions a scalable underground operation expected to produce about 1.89 million ounces of gold over a 10-year life, with an after-tax net present value of $943 million. Concurrently, the company completed a 13,684-meter grid infill drilling program at the Cariboo project, including 2,659 meters of new results executed on a 10-meter drill spacing across 142 drill holes. These results represent the entirety of the planned Appian infill program. Key intercepts included 44.68 g/t gold over 1.5 meters and 133.62 g/t gold over 0.5 meters. The completion of the Appian program allows for the refinement of the geological model and supports the transition to underground mining operations. The high-grade nature of the intercepts underscores the economic potential of the Cariboo project's underground zones.

The discovery at Proserpine adds to the strategic value of the Cariboo project by potentially extending mine life and expanding the resource base. Analysts note that while the exceptional grades at Proserpine are noteworthy, the scale of the target remains largely untested. National Bank Financial mining analyst Don DeMarco stated that the first batch of intercepts provides an encouraging proof-of-concept that Proserpine could become a meaningful contributor to future resource growth at Cariboo. In his view, the more important takeaway is the scale, where drilling has defined mineralization over only a small portion of a much larger target that remains open in all directions. Osisko plans a further 26,500 meters of drilling to increase drill density at Proserpine Southeast and begin first-pass drilling at Proserpine Northwest. Recent deep drilling at Cariboo has also extended mineralization below 700 meters, reinforcing the project's long-term growth potential. The company also entered a Support and Benefits Agreement with the District of Wells for the Cariboo Gold Project, facilitating community relations and operational stability.

Analyst sentiment remains mixed, with a Buy rating and C$10.00 price target from traditional analysts. AI-driven sentiment rates the stock as Neutral due to persistent losses and cash burn. The stock surged 12.2% to $3.83 in Toronto, valuing the company at about $1.2 billion. Some analysts view the new management group and the cleared path for growth as key catalysts. The Toronto-based company changed its name from Osisko Development last month and continues to advance its 100%-owned Cariboo Gold Project, targeting both high-grade underground-style mineralization and potential open-pit, bulk mining opportunities. The prospect of a sizeable new gold system close to its permitted Cariboo project supports the long-term resource growth strategy.