Osisko Gold Reports High-Grade Drilling at Proserpine Target

• Osisko Gold Group announced high-grade gold intercepts at its Proserpine target, signaling open-pit mining near Cariboo.
• Initial drilling expanded the mineralized footprint to approximately 1 km by 500 m, prompting resumption of drilling with three rigs.
• Analysts note the scale of the Proserpine target is a key driver for future resource growth alongside the permitted underground operation.
• Osisko Gold Royalties holds a Moderate Buy consensus with an average 12-month price target of C$63.20.
• The company is transitioning to a pure-play royalty model, offering investors stable cash flows with lower operational risk.

Osisko Gold Group has announced early drilling results at its Proserpine target, located seven kilometers from its permitted Cariboo gold project in British Columbia . The campaign outlined a new mineralized system characterized by high-grade structures and broader lower-grade zones . These findings indicate potential for open-pit mining that could complement the planned underground operation at Cariboo .

Standout intercepts included hole PSP-26-004, which cut 4.6 meters grading 95.93 grams per tonne gold . This interval included a 50-centimeter section grading 873 grams gold . Another hole, PSP-26-001, intersected 8.6 meters grading 5.46 grams gold . The mineralization footprint has expanded to approximately one kilometer along strike by 500 meters in width .

The target remains open in all directions, suggesting significant untapped potential . Drilling confirmed the presence of a siliceous sandstone unit, which is believed to be a favorable host for mineralization. All holes that reached target depth intersected mineralization, underscoring a sizeable new gold system.

In response to these positive results, Osisko has resumed drilling with three active rigs. The company plans an additional 26,500 meters of drilling to increase density at Proserpine Southeast . This activity will also initiate first-pass drilling at Proserpine Northwest.

What Does the Proserpine Discovery Mean for Cariboo's Future?

The discovery at Proserpine supports the strategic goal of growing the mineral inventory at Cariboo. The Cariboo Gold Project is a permitted, feasibility-stage underground operation . A 2025 feasibility study projects 1.89 million ounces of gold over a 10-year life . The study shows an after-tax net present value of $943 million and a 22.1% internal rate of return .

The open-pit potential at Proserpine could extend the mine life of the Cariboo operation . Analysts view the scale of the Proserpine mineralization as a critical factor for future growth . The historic Wells-Barkerville mining camp setting provides district-scale potential of the portfolio.

How Is Osisko Gold Royalties Positioned for Investors?

Osisko Gold Royalties Ltd. is undergoing a strategic transformation to become a pure-play royalty and streaming company . The company recently separated from its stake in Osisko Development to reduce management conflicts . This move aligns the company with investor demand for stable, operator-free exposure to precious metals .

The company holds a diversified portfolio of over 195 royalties anchored by a 3-5% net smelter return royalty on Agnico Eagle Mines’ Canadian Malartic Complex . Analysts view the new leadership as a positive catalyst, citing a clean balance sheet and strong financing . The royalty model provides stable cash flows regardless of production cost inflation .

Analysts maintain a Moderate Buy consensus for Osisko Gold Royalties, with an average 12-month price target of C$63.20 . The current trading price sits below this target, implying substantial upside potential . CIBC lowered its price target to C$85, while Stifel Nicolaus raised its target to C$71 .

Despite the positive analyst sentiment, some insider selling occurred in mid-2026 . Directors sold shares at prices between C$50.99 and C$53.85 . Osisko Gold Royalties reported strong quarterly results with C$0.46 earnings per share and an 82.42% net margin .