Osisko Development: Insight on East Tintic Acquisition and Progress Update at Cariboo & San Antonio

[Music] welcome ladies and gentlemen pdac 2022 and commodity tv as a media partner and it's my honor and pleasure now to talk to the famous sean rosen the ceo of our cisco development sean good morning how are you yo i'm always a pleasure to be here and uh glad to talk to you again and and all all the european uh uh followers and uh certainly uh very exciting times over here at cisco developments yeah definitely a cisco development it's our first interview with your let's call it new baby so maybe you can remind our viewers shortly where are you uh based and what are you doing there yeah so we started this company back in uh uh just at the end of 2020 and i really was a 2021 story um the most recent news is the acquisition of the tin tick property in utah which is about 40 miles south of bingham canyon one of the most famous copper mines in the world um and we've acquired a 14 000 acre patented land package that covers about 22 historic mines there and that's pretty exciting and most recently on that package there's been a discovery in a high grade epithermal system as far as we can tell uh which is quite spectacular and we're just in the process right now uh we took ownership on may 28th uh we closed that deal and two financings for 119 million us dollars on one of them and 103 million canadian on the second one so it's been a very exciting month and we're working very hard to integrate tin tick into the company i was down there just the last week sorry this week actually and just came back to toronto at pdac and we're just getting ready to start publishing uh some of the updated information from that project it was privately held so the market's never seen this story before um and it's located in the tintick district by provo utah on the prolific porphyry belt that runs up and down northwestern canada in the u.s and all the way down through into mexico and south america so historically it was mined by kennecott from 1960 through to 1995. produced about 3 million ounces is byproduct this flux for the bingham smelter also had a silver lead zinc mine there called the bergen uh and a significant copper gold target that we're working on right now um that as is we hope will be appropriate depth is what we're what we're targeting there um so this project's got quite a bit going on two types of gold mineralization a significant amount of silver lead zinc and a copper gold exploration target uh so i'm pretty excited about that and it's currently in production at small scale um produced about 15 000 ounces last year nice 35 tons a day so uh pretty interesting grade profile here and this was a brand new discovery in a brownfield camp just the way we liked them this is the ammo of a cisco uh we were able to get in and buy it early before the market saw it uh we paid 182 million us for it um and we're underground mining in there right now um we're just shaping up so we've driven about 750 feet of tunnel along the main structure called the t2 uh and we're doing some step out cross cuts along it from the underground it's about 650 feet or about 200 meters deep so pretty shallow uh we've also just in the process of we got a permit for a ramp to drive in there so we're activating that but currently there's an active head frame and an underground uh shaft and underground mine development from the previous owners so that's uh that's pretty exciting and it's a small scale production right now but we're looking to grow it where where do you see um trixie then with the production let's say in the near-term future i mean for 45 tons per day is that a small scale but to where or to what point you want to develop that then well we're looking at three to five hundred tons a day in the short term or you know over the next 24 months to to ramp that up once we have the underground ramp access uh when we switch over to fully mechanized mining it'll be easier to to get those tons um we're currently working on uh upgrading the mil mil processing facility there as well it has a fully permitted mill on-site building and we're going to be doing some upgrades to that as well so that'll be the short term but exceptionally um you know this is a project that's making money just just during the exploration development phase which uh we haven't really seen too many of these things before um and anytime we can get on to a brand new discovery historic camp and you know this was a prolific camp i had five gold mines up and flowing this trend and um there was a deposit called the 75 85 that ran from 1960 to 1995 and they stopped at the water table so a significant amount of up to the side there they stopped at about uh at about 400 meters um so it's relatively shallow again and all those deposits continue at depth after that so we've got a couple ways to win on this one um and the state of utah is one of the best places in the world to be investing right now and i think that you know giving the way that the world is working on strategics uh we're based in british columbia utah and uh and san antonio mexico um so it's pretty pretty tight land package for us uh and it goes to the credit uh of what we're trying to build uh with our care with their cornerstone asset the the caribou goal project absolutely um yeah sorry go ahead yeah so this is you know part of our plan was to have three big projects in the pro three projects in the company with barkerville being the big cornerstone asset that we just put out a pa study that would get us to 300 000 ounces a year if we were execute that program but there'll be a few steps along the way before we get to that 8 000 ton a day 297 000 a year uh pa that we put out here last uh last couple weeks um and then uh you know in terms of what we're doing in mexico is san antonio um we're processing a stockpile there right now we're mining proposals six thousand times a day expect to extract around 15 000 ounces uh from that test mining this year and then on to the bigger project there in mexico as well so we've got three things uh on the go the the both trixie and mexico are relatively low capex and uh the bigger pro at caribou which has you know it's mining camp uh with over uh 83 kilometers of mineralized trend and we've only explored about four and a half percent of the property uh so far the month mineralized trend so it's a huge property over two thousand square kilometers there so we've got the three stools three legs on the stool now and we're just uh driving hard we've got full money in the bank no debt uh and uh you know we're over 170 million dollars of cash after the transaction um so that's our execution strategy is just to stay on stay on track and uh and and execute the plan and uh you know we've got enough exploration at caribou and trixie uh and in mexico to keep us going phil backfill the pipeline as we get further into this but you know we're looking to put these three projects uh to keep advancing them simultaneously but trixie is obviously uh in the here and now and uh it'll be the focus for the rest of this year uh well as caribou is mostly focused on the ea and permitting process as well as a complete feasibility study okay super but what capex do you think you need for utah and for mexico for mexico because it looks like those two you can really fast track into production right yeah we're we haven't put out numbers yet joking but it's not particularly capex intensive in uh in utah we're just working on the plan now we'll come out with that uh fairly soon um mexico as well we'll probably sometime in july we'll put out the numbers on what we think that is going on there um we did in in the case of san antonio mexico uh we picked up uh a 15 000 ton of day plant that was operating at the uh in nevada that's on site now so protected on the equipment side that we were able to prepare the major equipment uh a year and a half ago so that plant is just waiting for permitting uh and it'll be relatively low capic so install it it's heat bleach open pit oxide to start with we had significant we drilled 27 000 meters in mexico last year uh so that resource is coming up um so that one you know is relatively low capex as well we're working to get that those numbers out to the public um as soon as we can um and then on the caribou gold project again we've completed about 600 000 meters of drilling there over 3 550 holes so it's a significant resource but again it's it's really on a small area and we only drilled down to a depth of 350 meters the deposit remains open at depth and we've we've been intercept we have mineralized intercepts all the way down to 950 meters and so you know certainly good good showings down to 600 meters where we have more knowledge um so there's quite a bit of opportunity just to go at depth on the existing infrastructure there and then we have about 10 targets up and down the mineralized trend that we're ready to drill but we decided not to capitalize those until we we get underground and get going on what we have now we published 3.47 million ounces measured and indicated uh that bar at uh at the caribou gold project in bc as well as another million six in the inferred so we'll finish the drilling from underground once we get underground there and we're just waiting for permits on that one um and then we we continued to look at the trixie project as i say we just got the got control of it so we put out a 43-101 property report on friday of last week so that's available on the website as well and uh you know we'll we'll be adding to that in a big way over the next next month or two okay super let's come shortly back to the caribou project because i saw also that you want to be already the first gold paw is targeted for q1 2024 so that is only like two years away from here which is great but what made you um with the change from the previous uh economics with 4 750 tons per day now up to 8 000 tons per day well the pa study is meant to demonstrate that the mine can go bigger um and it will go in a step process we'll probably start at 1500 to 2000 tons a day uh with our existing qr mill setup and then uh the permit the the initial perimeter that we're asking for in the bigger mine structure is 4 750 tons a day so we'll look to achieve that and after that we'll apply for an expanded permit once we've achieved that so it's a step process but we want the the market to start thinking about the fact that this project can go 297 000 ounces a year uh and it is scalable so the main goal with that was to get that out there so that we could talk about it um and get people to think about how big this project could be because we've always believed that we end up with multiple ramp access mines up and down this trend with a set with a with a a central processing facility but uh you know we won't get to 8 000 tons a day for a while but we want to start out with you know with what we have and get underground and we think that once we get underground it'll be easier to drill uh 43 101 is not particularly easy to work on narrow vane underground lines because you need a lot of drilling often 12 and a half meter centers are better um so that's uh that's the challenge there but once we're underground we'll be able to do a much better job of defining those ounces and we think that that'll bring big benefits to the shareholders as we get that done and then so in the meantime we'll this year will be focused on on the on the develop underground development that's fully permitted that trixie fully permanent mill site and fully permanent round back ramp construction and then as we get the permits in bc we'll we'll get more aggressive there as well okay super and i saw also with those 8 000 tons per day you have then like a shortened my life of course 12 years but the initial capital cost is only 122 million dollars is that the plan then probably that you can finance the expansion out of the cash flow well i think what we'll do is we'll get underground right now on the first phase on that you know sort of 1500 to 2000 ton a day plan uh we'll do the underground development that'll allow us to get better economics as we'll pull in more of the ounces and we'll have a better control on the costs uh in in the pa study there's quite a bit of dilution was added and quite a bit of uh buffer on capex and opex so we want to bring those numbers back down um through the proof of concept by going back underground with that step one and we can do that relatively cheap cheaply because we have the qr mill uh we have a brand new road header on site we have a brand new horse order on site um so as soon as we get released to go and do that work we'll uh we'll set a portal uh probably in the shaft zone as well or in that area um and we'll be looking to access the bulk of the ore body which is in that shaft zone of the deposit sooner rather than later and i think that you know that'll be an important step for us to be able to start to open up the underground and set the stage to get to that 47.50 and then onwards and upwards from there okay super um i saw also with the aic of 961 dollars per ounce gold i mean that is quite uh great i would say really in that inflationary environment so have you figured in already the latest inflation developments yeah that that inflation came in pretty hard and upped the cost from where we were originally the advantage that this mine has is going to be on bc hydroelectric which is quite more quite a bit more economic than diesel and we also by operating this new road header which is much like elon musk's boring machine um you know it gives us advantages because it does make better progress uh it is electric and it works 24 7 and it can be run a run autonomously from surface even if it needs to be and it can also do ground control bolt work while it's actually mining so we're commissioning two technologies on this mine and they both have a significant advantage on the opex and the on sustaining costs okay super well that sounds fantastic to me so if i get that uh right like a little bit of a summary um if i take now the trixie mine and you say to me like 300 to 400 tons per day that could bring that already to 120 000 ounces then per year right yeah that's the target is to get into that you know that hundred thousand ounce a year early stage production with relatively low capex yeah and mexico another hundred thousand ounces yeah i think it'll probably start out you know 40 50 but the the ability to ramp that project up as well is there and we're working hard to sort of step it up but it's a relatively low capex to get into that original 40 50 000 ounce window and as i say we have the equipment purchased an on-site uh awaiting permitting and you know so we'll step that but once we're up and running if you were able to run the mill at full capacity we'd be well past the hundred thousand ounce a year mark um but we've got to uh we got to walk before we run on that one and uh for sure it's uh it's a big challenge in this environment i think things are going to start to calm down the supply chain will start to catch up over the next 12 to 18 months um but we took some steps a couple year and a half to two years ago to protect ourselves on the caribou gold project we also have a full combination circuit crushers uh and screens and ball mills that we bought two years ago for five million dollars it's probably worth significantly more than that now probably four or five times worse if we had to buy a new uh and it's been stored in prince george it's all brand new gear uh from a project that didn't go forward that was purchased by hud bay in 2013. um so we were pretty good shape on protecting our side of the supply chain uh like i said we do have the road header and then or sort of go on site so those uh those are significant advantages to us so we were we saw this this uh this inflation coming it didn't quite anticipate how intense it could be but we've done our best to protect on it fantastic so could we say 2025 going forward you should be a four or five hundred thousand ounce producer well don't forget to get it in 2025 but we're sure going to give it a good shot to get as close to that as we can i like that fantastic last question you said already you are super catched up and who are your main shareholders who are largest shareholders our largest shareholders are traditional institutional players cisco gold royalties owns a plus 45 percent of the company which i'm also the executive chairman of uh and the founder and as you know the cisco group we we've incubated several things we now have six companies called the cisco listed on the tsx two of them listed on the new york stock exchange um and as a group you know we we uh we tend to try and make sure that we have the ownership and we're alongside the shareholders that we invite in we also have a fair contingent of high wealth individuals that joined in the non-brokered financing and i'd like to shout out to them uh thank you very much for your support looking forward to working with everybody um and uh you know it's just been a a fast-moving company as we relaunched back in the beginning of 2021 um and now we've got significant amount of uh of resource 3.5 million 3.47 million ounces measured indicated in bc and another 1.6 there um we're hoping to put out a resource update at trixie pretty soon uh and other and also another one in mexico so you know we're building significant amount of ounces uh in well-located areas uh with very doable projects and relatively light capex considering uh what we're in pursuit of super fantastic sean thank you very much for the pdac interview here wish you all the best and talk quite soon to you all the best joker thank you very much thank you very much all the best everybody with their investments thank you yeah ladies and gentlemen that was shawn rosen the ceo of cisco development and you heard it they have yeah three legs off the stool things are going really on full throttle and yeah maybe they add a fourth leg i don't know we will see in the future but [Laughter] i believe that still ton of work in front of them but the company stands on real solid columns and as you know with sean rosen he is also the solid rock in the mining space with his track track record in the past and the company is fantastically catched up has three fantastic projects i really suggest you have a very close look onto this fantastic company and yeah thank you very much for watching us pdac 2022 with commodity tv and cisco development all the best thanks and bye-bye from switzerland thank you yoga all the best

Channel: Swiss Resource Capital AG

Views: 7,864

Keywords: Gold, Silver, Gold and Silver, gold price, buy Gold, buy Silver, Metals, Mining, investment

Id: L5DSJRy1B2w

Length: 19min 18sec (1158 seconds)

Published: Tue Jun 14 2022