Osisko Gold Proserpine Drilling Highlights Open-Pit Potential Near Cariboo

• Osisko Gold Group reported high-grade drilling results at its Proserpine target, expanding the known mineralized footprint near its Cariboo project.
• The results suggest potential for open-pit mining operations to complement the planned underground development at Cariboo.
• Analysts emphasize the significant scale and continuity of the discovery as a key driver for future resource growth.
• The company plans to resume drilling with three rigs to further test the target and increase resource density.

Osisko Gold Group announced early drilling results at its Proserpine target, located near the Cariboo gold project in British Columbia (Proserpine target drilling results). The drilling outlined a new mineralized system that could support future open-pit mining operations in addition to the company's planned underground development. A standout intercept, hole PSP-26-004, cut 4.6 meters grading 95.93 grams per tonne gold, including a high-grade interval of 873 grams per tonne gold over 50 centimeters. Another hole, PSP-26-001, intersected 8.6 meters grading 5.46 grams gold.

National Bank Financial analyst Don DeMarco highlighted that while the grades are exceptional, the more significant factor is the scale. Drilling has defined mineralization over a small portion of a much larger target that remains open in all directions. The known footprint at Proserpine has expanded to approximately 1 km along strike by 500 meters in width, with mineralization encountered from near surface to about 400 meters downhole in all 14 holes that reached target depth.

What Does the Proserpine Discovery Mean for Investors?

The discovery at Proserpine represents a significant expansion of Osisko's resource base near its primary development asset. The target is located approximately seven kilometers southeast of the Cariboo Gold deposit in central British Columbia . The program completed 6,463 meters in 14 holes between February and May 2026 . The results confirmed high-grade gold structures and broader lower-grade zones that together suggest potential for open-pit mining .

This exploration underscores the prospect of a sizeable new gold system close to the permitted Cariboo project . Osisko Gold Group is a Canadian gold mining and exploration company listed on the NYSE and TSXV . Its primary focus is advancing its 100%-owned, permitted Cariboo Gold Project, targeting both high-grade underground-style mineralization and potential open-pit, bulk mining opportunities . Operating within the broader Cariboo Gold Project property, the company is actively pursuing regional greenfield targets to expand its resource base and extend mine life .

How Will Osisko Expand the Resource Base?

Osisko plans to drill 26,500 meters at Proserpine using three rigs to further test the target . This exploration complements the Cariboo project, Osisko's main development asset . Cariboo features a permitted underground mine with a 2025 feasibility study projecting 1.89 million ounces of gold over a 10-year life, based on a US$2,400 per ounce gold price . The project holds 17.4 million measured and indicated tonnes grading 2.88 grams gold for 1.61 million ounces of contained metal .

The company plans a further 26,500 meters to increase drill density at Proserpine Southeast and begin first-pass drilling at Proserpine Northwest . This campaign aims to expand the known mineralized footprint and assess the economic potential of the Proserpine target . The results indicate high-grade structures similar to the nearby Cariboo deposit, alongside broader zones of lower-grade mineralization . This combination suggests potential for open-pit mining methods to complement the planned underground operation at Cariboo .

What Are the Financial and Technical Risks?

The stock surged 12.2% to $3.83 following the news . However, analyst commentary notes that investment appeal is currently tempered by persistent losses and heavy cash burn, implying ongoing funding needs . Technical indicators show a clear downtrend and weak momentum, while valuation remains difficult to interpret due to negative earnings . Despite these challenges, the scale and grade of the Proserpine discovery provide a strong proof-of-concept for future resource growth .

A 2025 feasibility study for Cariboo envisions a 10-year operation producing 1.89 million ounces of gold, with an after-tax net present value of $943 million . The company recently changed its name from Osisko Development to Osisko Gold Group . The ongoing exploration at Proserpine is critical to validating the potential for bulk mining methods and enhancing the long-term value of the Cariboo project .

Osisko Gold Group Inc. reported the first set of new diamond drilling results from its surface exploration program at the Proserpine regional greenfield target . Located approximately 7 km from the Company's permitted, 100%-owned Cariboo Gold Project, the results highlight the potential for a significant new gold mineralized system of scale . President Chris Lodder stated that drilling has intersected high-grade structures showing similarities to those at Cariboo, but also containing areas with broader lower grade mineralization that may indicate potential for bulk mining methods .