Osisko Development Corp. reported first-quarter 2026 results for the three months ended March 31, 2026, highlighting cash on hand, progress on the Cariboo Gold Project in British Columbia, and continued small-scale gold production at its Tintic Project in Utah.
Cause: Financing, production activity and a fatal incident at Cariboo
As of March 31, 2026, Osisko Development had approximately $594.3 million in cash and cash equivalents. The company also reported that approximately $153.2 million (US$109.9 million), inclusive of accrued interest, remained outstanding under the initial draw of the US$450 million senior secured project loan credit facility (the “2025 Financing Facility”) advised by Appian Capital Advisory Limited.
Operationally, the company generated $2.2 million in revenues and $0.7 million in cost of sales from the sale of 270 gold ounces from small-scale activities at the Tintic Project, resulting in an operating loss of $9.7 million (compared with a $40.8 million loss in Q1 2025).
At the Cariboo Gold Project, a contractor suffered a fatal injury on January 22, 2026, prompting a temporary suspension of site activities while an investigation was completed. On March 2, 2026, the company announced the resumption of planned site activities under a phased gradual reopening plan approved by relevant regulatory authorities.
Development: Cariboo reopening, project management and drilling progress
Following the incident, Osisko Development resumed planned activities at Cariboo under a phased reopening plan covering both surface and underground work. The company also entered into a definitive Project and Construction Management Services Agreement with JDS Energy & Mining Inc. on February 9, 2026.
Infill drilling results were also updated. The company reported that the 13,000-metre infill drill program within the Lowhee Zone was completed as part of Appian’s 2025 Financing Facility obligations. It stated that 13,684 metres had been completed, representing 100% of the planned program, with 11,025 metres released with assays. Assay results and quality assurance/quality control reviews remain pending for unreleased holes, and the company expects to finalize results in the second quarter of 2026.
Data and operating updates: construction, exploration and equipment on site
Pre-construction activities
- Water treatment plant: Upgrades to the Bonanza Ledge water treatment plant were in final commissioning stages, with full operation expected in the second quarter of 2026.
- Underground development: Approximately 2.1 km of underground development had been completed from the existing Cow Portal into the Lowhee Zone and along the main access ramp through the Lowhee fault toward the Cow Mountain Zone. The company said development progress was below plan due to challenging ground conditions requiring enhanced ground support, and it expected rates to improve as the ramp advances beyond the Lowhee fault zone. The raisebore pad for the first underground ventilation raise started in Q1 2026.
- Surface infrastructure: Construction continued on the waste rock storage facility, sediment control pond, and other critical infrastructure. Early works, including tree clearing and geotechnical drilling, commenced in Q1 2026 at the mine site complex where the primary processing facility will be located.
- Camp upgrade: The site camp upgrade and expansion to 266 rooms was complete, and the company said it is expected to align with peak construction manpower requirements.
Exploration and conversion drilling
A multi-faceted exploration drilling campaign across the Cariboo Gold Project and regional targets is underway. The company said up to 20 drill rigs are expected to be active at times throughout 2026, representing up to approximately 160,000 metres of planned drilling across all targets. It reported that 11 drill rigs were operating across all programs.
- Surface exploration (two programs): Eight drill rigs were operating on two surface exploration programs, including four drill rigs targeting potential mineralization below the current extent of the Cariboo Gold Project deposit to depths of up to 1,000 metres. Approximately 10,600 metres had been completed, with assays pending.
- Proserpine regional target: A second surface exploration program ramped up to four drill rigs, with approximately 5,750 metres completed to date.
- Infill and conversion drilling: Planned in 2026 to upgrade inferred mineral resources to higher confidence categories and potentially into mineral reserves, subject to modifying factors.
Impact: capital raises, asset sale and corporate updates
Osisko Development reported several financing and corporate developments during the quarter and shortly thereafter:
- Prospectus offering: The company completed a prospectus offering of common shares on February 3, 2026, issuing 40,607,650 common shares at US$3.54 per share for aggregate gross proceeds of US$143.8 million ($196.3 million).
- Warrant exercises: On March 9, 2026, the company received approximately $24.9 million from the exercise of 5,625,031 common share purchase warrants held by certain funds advised by Appian. Together with other warrant exercises during Q1 2026, aggregate proceeds totaled $36.5 million.
- San Antonio sale: On January 27, 2026, Osisko Development completed the sale of its 100% interest in the San Antonio Gold Project in Sonora State, Mexico, to Axo Copper Corp. through the sale of Sapuchi Minera.
- ETF inclusion: The company was included in the VanEck Junior Gold Miners ETF (GDXJ), effective at the close of markets on March 20, 2026.
- Management changes: Sarah Harrison was appointed VP, Permitting and Compliance on February 2, 2026. Subsequent to Q1 2026, the company appointed Sarah MacDonald as VP, Construction Contracting and Commercial on May 4, 2026.
Tintic Project: small-scale heap leach and test mining
At the Tintic Project, Osisko Development continued small-scale heap leaching and direct shipping of mineralized material, selling 270 ounces of gold in the quarter. The company reported that test mining continued in Q1 2026, with approximately 2,000 tonnes of higher-grade mineralized material stockpiled for direct shipping to a purchaser, and that test mining is anticipated to continue in Q2 2026.
The company said it continues to evaluate options for the next steps at Tintic and expects that limited activities beyond care and maintenance may occur from time to time, including additional direct shipping of mineralized material from the Trixie test mine.
2026 objectives: planned spending by project
Osisko Development outlined 2026 objectives with planned expenditures for the Cariboo Gold Project, including:
- Underground Development (including production drilling): $39.5 million (Q4 2026)
- Regional surface exploration drilling: $3.7 million (Q4 2026)
- Mine design, processing, water management, infrastructure and other: $14.7 million (Q4 2026)
- Underground Infill Drilling to Convert Mineral Resources to Mineral Reserves: $4.4 million (Q4 2026)
- Surface (Directional) Drilling to expand Mineral Resource Estimate at depth (up to 300 metres below current estimate): $1.7 million (Q4 2026)
- Surface Drilling to expand geology and mineralization at depth (+700 metres below surface): $3.9 million (Q4 2026)
The company noted that the expenditures disclosed include amounts approved by its board of directors as at March 31, 2026, net of amounts already incurred during Q1 2026, and that additional expenditures will require further board approval.
