Osisko Gold Confirms High-Grade Proserpine Drilling Near Cariboo

• Osisko Gold Group completed initial diamond drilling at the Proserpine target, intersecting high-grade gold structures and broad lower-grade zones that suggest open-pit mining potential.
• The results expanded the known mineralized footprint to approximately one kilometer along strike by half a kilometer in width, remaining open in all directions.
• Analysts emphasize that the scale of the discovery is a key driver for future resource growth, with additional 26,500 meters of drilling at the site.
• The main Cariboo project envisions a scalable underground operation producing about 1.89 million ounces of gold over a 10-year life, with after-tax net present value of $943 million.
• Despite positive geological findings, the stock faces headwinds from persistent cash burn and a technical downtrend, prompting a neutral rating from some analysts.

Osisko Gold Group Inc. has reported initial diamond drilling results from the Proserpine regional greenfield target, located approximately seven kilometers southeast of the Cariboo Gold deposit in central British Columbia. The program, which completed 6,463 meters in 14 holes between February and May 2026, has confirmed high-grade gold structures and broader lower-grade zones. These findings suggest potential for open-pit mining alongside the planned underground operation at Cariboo .

Drilling has 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 to depths beyond 400 meters, with mineralization remaining open in all directions. Notably, all holes that reached their target depth intersected mineralization .

The company has resumed drilling with three rigs and plans an additional 26,500 meters to increase drill density at Proserpine Southeast and begin first-pass drilling at Proserpine Northwest. This underscores the prospect of a sizeable new gold system close to its permitted Cariboo project.

What Are the Key Drilling Highlights at Proserpine?

Osisko Gold Group reported that early drilling at its Proserpine target near the Cariboo gold project in British Columbia has outlined a new mineralized system that could support future open-pit mining alongside a planned underground operation. Standout results include hole PSP-26-004, which cut 4.6 meters grading 95.93 grams per tonne gold from 110 meters depth, including a 50-centimeter interval of 873 grams gold .

Another hole, PSP-26-001, cut 8.6 meters grading 5.46 grams gold from 97 meters depth. National Bank Financial mining analyst Don DeMarco noted that while exceptional grades are noteworthy, the more important takeaway is the scale .

Drilling has defined mineralization over only a small portion of a much larger target that remains open in all directions. Osisko Gold plans some 26,500 meters of drilling at Proserpine, initially with three rigs, to test these regional targets .

The company confirmed that drilling has broadly tested an area measuring approximately 1.0 km x 0.5 km within a larger target. For context, the currently defined Cariboo Gold deposit extends approximately 4.0 km along strike by 0.5 km in width, underscoring the exploration potential remaining at Proserpine .

How Does Proserpine Fit Into the Cariboo Project Strategy?

The company is actively pursuing regional greenfield targets to expand its resource base and extend mine life at its 100%-owned, permitted Cariboo Gold Project. The project targets both high-grade underground-style mineralization and potential open-pit, bulk mining opportunities, positioning Proserpine as a significant contributor to future resource growth .

The Cariboo project itself is advancing construction for a scalable underground operation expected to produce 1.89 million ounces of gold over 10 years, with a net present value of $943 million at a $2,400/oz gold price .

A 2025 feasibility study envisions a scalable underground operation expected to produce about 1.89 million oz. gold over a 10-year life. Based on a 5% discount rate and a US$2,400 per oz. gold price, the project has an after-tax net present value of $943 million and a 22.1% internal rate of return .

The project hosts about 17.4 million measured and indicated tonnes grading 2.88 grams gold. Recent deep drilling has extended gold mineralization below 700 meters vertical depth, further supporting the long-term viability of the underground operation .

What Are the Financial and Market Implications for Investors?

Osisko Gold is a Canadian company listed on the NYSE and TSXV, focusing on advancing its 100%-owned Cariboo Gold Project. The company recently changed its name from Osisko Development and saw its stock rise 12.2% following the announcement, valuing the firm at approximately $1.2 billion .

However, financial indicators suggest caution. The stock is viewed as Neutral by TipRanks’ AI Analyst, Spark, driven by persistent losses and heavy cash burn, which imply ongoing funding needs .

Technical indicators show a clear downtrend and weak momentum. Valuation offers limited support due to negative earnings making P/E ratios difficult to interpret and the absence of a dividend yield .

Recent corporate developments include the completion of a name change from Osisko Development to Osisko Gold Group Inc., effective July 15, 2026. On July 22, the company entered into a Support and Benefits Agreement with the District of Wells for the Cariboo Gold Project.

Additionally, on July 23, Osisko reported final results from its Lowhee Zone infill program. The completion of this infill drill program supports the continued use of existing geological and mine-planning assumptions and parameters, subject to ongoing work .

The most recent analyst rating remains a Buy with a C$10.00 price target. Despite the positive geological findings, investors must weigh the potential for resource growth against the company's current financial constraints and technical market performance .