XST Surges as Osisko Gold Confirms High-Grade Proserpine Discovery Near Cariboo

• Osisko Gold Group confirmed high-grade gold intercepts at Proserpine, expanding the known mineralized footprint near the permitted Cariboo project in British Columbia.
• Initial diamond drilling results indicate potential for open-pit mining in addition to the company's planned underground operations at Cariboo.
• The stock surged 12.2% to $3.83 in Toronto trading, valuing the company at $1.2 billion following the announcement.
• Despite the positive exploration results, Osisko faces persistent losses and heavy cash burn, and a technical downtrend.

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

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

What Are the Key Drilling Highlights at Proserpine?

Standout results included hole PSP-26-004, which cut 4.6 metres grading 95.93 grams per tonne gold from 110 metres depth, including a 50-centimetre interval of 873 grams gold . Another hole, PSP-26-001, intersected 8.6 metres grading 5.46 grams gold from 97 metres depth . National Bank Financial mining analyst Don DeMarco noted that while exceptional grades are noteworthy, the more critical takeaway is the scale .

Drilling has defined mineralization over only a small portion of a much larger target that remains open in all directions . The mineralization footprint has expanded to roughly one kilometre along strike by half a kilometre in width, remaining open in all directions . Analysts note that while grades are exceptional, the primary value lies in the scale of the target, which could support future open-pit mining alongside the planned underground operation at Cariboo .

How Does This Discovery Impact the Cariboo Project?

The exploration success has significant implications for the company's long-term resource base. Proserpine is situated within the historic Wells-Barkerville mining camp, close to Osisko’s primary 100%-owned, permitted Cariboo Gold Project . The Cariboo project itself is advancing toward production, with a 2025 feasibility study envisioning a scalable underground operation expected to produce about 1.89 million ounces of gold over a 10-year life .

The project holds substantial measured and indicated resources, reinforcing its long-term growth potential. A 2025 feasibility study envisions a scalable underground operation expected to produce about 1.89 million ounces of gold over a 10-year life, with an after-tax net present value of $943 million based on a US$2,400 per oz gold price . The project holds about 17.4 million measured and indicated tonnes grading 2.88 grams gold for contained metal of 1.61 million ounces .

Construction is advancing while underground drilling continues to refine the mine plan and test extensions to mineralization beyond the current reserve base . Recent deep drilling has extended gold mineralization below 700 metres vertical depth . Proserpine is one of several regional targets being tested as part of an exploration campaign aimed at identifying additional deposits .

What Are the Financial Headwinds for Investors?

However, investor sentiment remains cautious due to fundamental financial pressures. Osisko Gold continues to incur persistent losses and heavy cash burn, implying ongoing funding needs . Technical indicators show a clear downtrend and weak momentum . Furthermore, valuation metrics offer limited support as negative earnings make the price-to-earnings ratio difficult to interpret, and no dividend yield is available .

Analyst ratings currently reflect a neutral stance, highlighting the tension between strong exploration progress and challenging financial fundamentals . Osisko plans to drill an additional 26,500 metres at Proserpine to increase drill density and test new areas . The results provide a proof-of-concept that Proserpine could become a meaningful contributor to future resource growth at Cariboo .

Osisko’s core asset, featuring a permitted underground mine and processing complex, is supported by the new discovery at Proserpine . The company recently changed its name from Osisko Development, focusing on advancing its 100%-owned, permitted Cariboo Gold Project . The Proserpine target is being tested as part of an exploration campaign aimed at identifying additional deposits to expand the resource base and extend mine life alongside the permitted underground operation .

The stock jump of 12.2% to $3.83 in Toronto reflects market reaction to the discovery, valuing the company at $1.2 billion . However, the company continues to face financial pressures from cash burn . The results to date have expanded the footprint of known mineralization at Proserpine to about 1 km along strike by 500 metres in width .

Osisko Gold Group has outlined a new mineralized system at its Proserpine target, located approximately seven kilometres southeast of the permitted Cariboo Gold Project in British Columbia . Early drilling results from 14 holes totaling 6,463 metres confirm high-grade gold structures extending from near-surface to depths beyond 400 metres . Notable intercepts include 4.6 metres grading 95.93 grams per tonne gold and an 8.6-metre interval grading 5.46 grams gold .