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    Osisko greenlights Cariboo gold project: capex, schedule and risk notes for engineers

    September 15, 2026|

    Reviewed by Tom Sullivan

    Osisko greenlights Cariboo gold project: capex, schedule and risk notes for engineers

    First reported on MINING.com

    30 Second Briefing

    Osisko Gold Group has approved full construction of the C$841 million Cariboo underground gold mine in the historic Wells-Barkerville camp, 500 km north of Vancouver, targeting first gold in early 2029 and commercial production in H2 2029 after a 30‑month build. The project is already 22% complete, with about 3 km of underground development, 40% of detailed engineering and 44% of long-lead procurement finished, and a feasibility study outlining 1.89 million oz over 10 years from 17.4 Mt at 2.88 g/t measured and indicated. Financing includes C$1.64 billion in available capital, a US$30 million equity placement to Trafigura at US$3.14 per share, and a potential US$120 million gold prepay, leaving a projected C$201 million surplus and committing up to 80,000 t of concentrate and doré in the first four years.

    Technical Brief

    • Prepay facility availability extends three years from closing, with minimum five-year final maturity.
    • Osisko currently holds about C$837 million in cash within total available capital of C$1.64 billion.
    • Projected total outlays of C$1.44 billion (capex, exploration, debt service, financing) leave ~C$201 million surplus.
    • About 3 km of underground development is already in place ahead of major earthworks ramp-up this quarter.
    • Major earthworks are planned through end‑2027, with process plant foundations starting next summer.

    Our Take

    With Cariboo’s C$1.44 billion projected expenditures in Canada, the project fits squarely into the C$120 billion mining project pipeline flagged by BMO Global Metals & Mining, signalling that large-scale gold builds are still attracting capital alongside critical minerals in the country.

    The Trafigura equity and gold prepayment facility at Cariboo underlines how traders are moving beyond base metals; in our database, Trafigura is more commonly associated with copper and bulk commodities than with long‑dated gold offtake structures.

    A 10‑year mine life and 1.89 Moz planned production at Cariboo, combined with measured and indicated plus inferred resources totalling over 3 Moz, suggests Osisko Gold Group has scope to extend life or stage expansions, which is consistent with how Canadian Malartic and other Quebec assets have been developed over time.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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