Osisko Gold Outlines New Mineralized System at Proserpine Target

• Osisko Gold Group announced initial drilling results from its Proserpine target, outlining new high-grade gold mineralized system in British Columbia.
• The discovery features exceptional gold grades and broader lower-grade zones that may support future open-pit mining operations.
• Proserpine is located approximately seven kilometers from Cariboo underground gold project.
• Analysts highlight that the scale of the target remains largely open, indicating significant potential for resource growth.
• Osisko plans to resume drilling with three rigs to test larger 6.0 km anomaly area measuring 6.0 km by 1.0 km.

Osisko Gold Group Inc. reported significant findings from its surface exploration program at the Proserpine regional greenfield target. The results confirm the presence of an emerging gold mineralized system located near the company's main development asset, the Cariboo Gold Project. Early drilling has defined mineralization over a footprint of approximately one kilometer along strike by 500 meters in width. Gold was encountered from near-surface depths to beyond 400 meters, with the system remaining open in all directions.

What Are the Key Drilling Results at Proserpine?

Initial diamond drilling completed 6,463 meters across 14 holes between February and May 2026. The program confirmed high-grade gold structures alongside broader zones of lower-grade mineralization. Standout results from hole PSP-26-004 included 4.6 meters grading 95.93 grams per tonne gold. This interval included a high-grade 50-centimeter section grading 873 grams per tonne gold. Another significant intercept in hole PSP-26-001 intersected 8.6 meters grading 5.46 grams per tonne gold.

All holes that reached target depth successfully intersected mineralization, validating the geological model. The system exhibits similarities to the high-grade structures found at the nearby Cariboo deposit. However, Proserpine also contains broader zones that may indicate potential for bulk mining methods. These lower-grade zones could support open-pit extraction in addition to underground operations.

Why Is the Proserpine Discovery Strategically Important?

The discovery at Proserpine could support future open-pit mining operations in conjunction with the planned underground mine at Cariboo. Osisko Gold's primary focus remains advancing its 100%-owned, permitted Cariboo Gold Project. A 2025 feasibility study for Cariboo projected 1.89 million ounces of gold over a 10-year life. The project boasts an after-tax net present value of $943 million and an internal rate of return of 22.1%.

Analysts describe the Proserpine results as an encouraging proof-of-concept for resource growth. While the grades are exceptional, the critical takeaway is the scale of the target. Drilling has only defined mineralization over a small portion of a much larger anomaly. The known footprint has expanded significantly, yet the target remains open in all directions.

Osisko Gold's stock rose 9% following the announcement of these results. The company plans to drill an additional 26,500 meters at Proserpine using three rigs. This campaign aims to increase drill density and test further extensions of the mineralized system. The current defined Cariboo Gold deposit extends approximately four kilometers along strike by 0.5 kilometers in width.

How Does Proserpine Fit Into Osisko's Broader Strategy?

Osisko is actively pursuing regional greenfield targets to expand its resource base and extend mine life. Proserpine is one of several targets being tested to identify additional deposits for the Cariboo project. Recent deep drilling at Cariboo has extended mineralization below 700 meters, reinforcing long-term growth potential. The company is transitioning into a pure-play royalty company by divesting mining stakes.

This structural shift addresses past governance issues and aligns with market demand for a focused royalty model. Unlike mining operators, royalty companies are not directly exposed to rising production costs or operational inefficiencies. The company holds diversified royalties from multiple mines in North America, reducing jurisdictional risk. Investors anticipate organic asset growth of 10-12% annually, supported by a robust gold market environment.

The transition is viewed as a key catalyst, removing the discount associated with the company's complex corporate structure. The stock trades at approximately 1.1 times its net asset value, considered cheap relative to peers. Analysts highlight the company's clean balance sheet and strong development pipeline as positive indicators. Osisko aims to leverage these exploration successes to drive long-term shareholder value.