Osisko Development's Infill Drilling Success at Cariboo Gold Project: A Catalyst for Enhanced Reserve Models and Production Upside

In the evolving landscape of advanced gold projects, strategic infill drilling has emerged as a critical tool for de-risking resource models, optimizing production planning, and unlocking long-term value. Osisko Development's ongoing 13,000-meter infill drilling program at the Cariboo Gold Project's Lowhee Zone exemplifies this trend, with recent results signaling robust continuity in mineralization and significant potential for reserve conversion. As the company progresses toward completing its program by Q1 2026, the implications for resource modeling and operational efficiency are poised to reshape the project's economic profile.

Infill Drilling: A Strategic Lever for Resource Conversion

Osisko's infill drilling at Cariboo has already delivered compelling data. By late 2025, 6,900 meters of drilling-51% of the total program-had been completed, with notable intercepts such as 45.24 g/t gold over 3.0 meters and 233.92 g/t gold over 0.5 meters. These results not only validate the continuity of modeled vein systems but also highlight the potential to expand existing zones and delineate new ones as reported. Such high-grade, structurally controlled mineralization is a strong indicator of the project's ability to convert inferred resources to the indicated category, a critical step for advancing feasibility studies and attracting capital.

This approach aligns with broader industry practices. For instance, Gold Resource Corporation's infill drilling at its Don David Gold Mine in Mexico has similarly yielded consistent high-grade results, reinforcing the viability of vein systems for production planning. Similarly, i-80 Gold's efforts in Nevada have demonstrated how systematic infill drilling can reduce technical uncertainty and support resource upgrades. These case studies underscore a shared industry strategy: leveraging infill drilling to refine geological models and de-risk mine planning.

Operational Optimization: From Stope Design to Throughput

Beyond resource conversion, Osisko's drilling program is directly informing operational optimization. The alignment of drill results with modeled stope shapes suggests that the company can refine underground mining sequences to minimize dilution and maximize recovery. This is particularly relevant for projects like Cariboo, where narrow-vein mineralization demands precise stope design. By the end of 2025, 5,983 meters of drilling had been completed, with results such as 8.56 g/t Au over 8.5 meters and 16.95 g/t Au over 4.0 meters. These data points are instrumental in optimizing cut-and-fill mining methods, a technique also adopted by Gold Resource Corporation to enhance run-of-mine grades.

Moreover, the integration of advanced technologies is becoming a hallmark of operational efficiency in 2025. Autonomous haul trucks, robotic loaders, and AI-driven predictive maintenance are reducing downtime and labor costs across the sector. While Osisko's press releases have not explicitly detailed such technologies, the broader industry shift toward automation and digital twins suggests that companies like Osisko could further enhance productivity once the infill drilling phase concludes.

A Broader Industry Context: Infill Drilling as a Catalyst

The success of Osisko's program is not an isolated phenomenon. Across the gold sector, infill drilling is being paired with operational innovations to drive value. For example, Integra Resources' near-surface oxide gold drilling at Florida Canyon has identified low-strip material that could extend mine life and reduce capital intensity. Meanwhile, i-80 Gold's autoclave refurbishments aim to improve gold recovery from refractory ores. These examples illustrate how infill drilling is often part of a larger strategy to optimize processing, reduce environmental footprints, and align with ESG standards-factors increasingly critical for investor confidence.

Investment Implications

For investors, Osisko's Cariboo project represents a compelling case study in how strategic infill drilling can catalyze both geological and operational upside. The company's progress in refining resource models and stope designs positions it to advance toward production with reduced technical risk. Furthermore, the alignment with industry-wide trends-such as high-grade vein targeting and automation-suggests that Cariboo could serve as a scalable, long-life asset.

However, risks remain. Delays in completing the infill program or unexpected geological complexities could impact timelines. Yet, given the current trajectory-51% of the program completed by late 2025-and the high-grade results to date, these risks appear manageable.

Conclusion

Osisko Development's infill drilling at Cariboo is a testament to the transformative power of strategic drilling in advanced gold projects. By converting inferred resources to indicated categories and optimizing stope designs, the company is laying the groundwork for a robust production model. As the industry increasingly adopts automation, AI, and sustainable practices as highlighted, Osisko's ability to integrate these innovations post-drilling will further enhance its competitive edge. For investors, the Cariboo Gold Project stands as a prime example of how disciplined execution in resource conversion and operational optimization can unlock significant value in the gold sector.