StonkBroker Analysis: Osisko Gold Unveils High-Grade Proserpine Target Near Cariboo

• Osisko Gold Group reported initial diamond drilling results from the Proserpine regional greenfield target, confirming high-grade gold structures and broader zones that suggest open pit mining near Cariboo.
• The exploration program completed 6,463 meters in 14 holes between February and May 2026, expanding the known mineralized footprint to one kilometer along strike by half a kilometer in width.
• Outstanding intercepts 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.
• All holes that reached target depth intersected mineralization, with gold encountered from near surface to depths beyond 400 meters and remaining open in all directions.

Osisko Gold Group Inc. reported initial diamond drilling results from the Proserpine regional greenfield target, located about seven kilometres southeast of Cariboo Gold deposit in central British Columbia. The program completed 6,463 metres in 14 holes between February and May 2026, confirming high-grade gold structures and broader lower-grade zones that together suggest potential for open pit mining.

Drilling expanded the known mineralized footprint at Proserpine to roughly one kilometre along strike by half a kilometre in width, with gold encountered from near surface to depths beyond 400 metres and remaining open in all directions. With all holes that reached target depth intersecting mineralization, Osisko has resumed drilling with three rigs and plans a further 26,500 metres to increase drill density at Proserpine Southeast and begin first-pass drilling at Proserpine Northwest.

Standout hole PSP-26-004 cut 4.6 metres grading 95.93 grams per tonne gold from 110 metres depth, including a 50-centimetre interval of 873 grams gold from 112 metres downhole. National Bank Financial mining analyst Don DeMarco noted that the first batch of intercepts provides an encouraging proof-of-concept that Proserpine could become a meaningful contributor to future resource growth at Cariboo.

While the exceptional grades are noteworthy, the more important takeaway is the scale, where drilling has defined mineralization over only a small portion of a much larger target that remains open in all directions. The company plans 26,500 metres of drilling to further define this system, underscoring the prospect of a sizeable new gold system close to its permitted Cariboo project.

What Are the Key Drilling Highlights at Proserpine?

The results highlight the potential for a significant new gold mineralized system of scale located only 7 km from the Cariboo Gold deposit. Drilling has broadly tested an area measuring approximately 1.0 km x 0.5 km within a larger target of 6.0 km x 1.0 km. For context, the currently defined Cariboo Gold deposit extends approximately 4.0 km along strike by 0.5 km in width.

The drill assay highlights include 95.93 g/t Au over 4.60 m at 71 m vertical depth, which includes 873.00 g/t Au over 0.50 m. Other notable intercepts include 5.46 g/t Au over 8.60 m at 77 m vertical depth, and 2.17 g/t Au over 14.45 m at 431 m vertical depth.

Drilling of an additional 26,500 metres, initially with three rigs, is now resuming following a seasonal hiatus. This activity underscores the prospect of a sizeable new gold system close to its permitted Cariboo project.

How Does Proserpine Impact the Cariboo Project Outlook?

Cariboo is Osisko’s main development project, including a permitted underground mine and processing complex. A 2025 feasibility study envisions a scalable underground operation expected to produce about 1.89 million oz. gold over a 10-year life, with an after-tax net present value of $943 million.

This exploration success adds value to Osisko’s main development project, Cariboo, which is located 7 km away. The Cariboo resource currently stands at 17.4 million tonnes grading 2.88 grams gold, with significant inferred resources. Recent deep drilling at Cariboo has also extended mineralization below 700 metres, reinforcing long-term growth potential.

The market reacted positively, with Osisko Gold shares jumping 12.2% to $3.83 following the announcement. The stock rose 9% to $3.73 in other trading sessions, valuing the company at approximately $1.1 billion.

Osisko Gold is a Canadian gold mining and exploration company listed on the NYSE and TSXV. The company’s primary focus is advancing its 100%-owned, permitted Cariboo Gold Project in central British Columbia, targeting both high-grade underground-style mineralization and potential open pit, bulk mining opportunities.