Osisko Development (TSXV/NYSE:ODV) - Cariboo & Tintic Gold Projects Are Canada's Next Big Thing

[Music] warning I'm here at the Denver gold show my name is Sean Rosen I'm the founder of the Cisco group of companies uh starting with the Cisco mining group one back in 2003 and then also the founder of a Cisco gold royalties a Cisco Development Corporation and founding chairman of a Cisco mining too The Cisco group has been a long participant in the resource development mostly focused on precious metals but also some base metals and currently working on some of the metal transition projects that we see in lithium and uh and base Metals as well as a group we've been around for quite a while we've created about 10 billion dollars worth of market cap in different companies and we're currently evolving with our our main strategy which is Big Brownfield deposits uh in good jurisdictions like Canada and the US and North America and we've got two that we're going to talk about today I want to be in the Caribou gold project in central British Columbia and the second being the tinted gold project located just outside of Provo Utah and that's going to be an exciting one we're getting ready to drill a big Target there sure and uh well in beautiful surroundings here in Colorado Springs somewhat uh right you hear the conference here to do what he promoting the group or we're talking about the development company uh mostly what we're working on today we have three or four different tracks on the go our royalty company is doing very well uh with these Equity markets the way they are the royalty business is extremely busy and we also have a Cisco Mining and Cisco development here right as well as some of our other uh tier two development groups right and to have the investors have the banks has the money turned up well I think that right now you know we're a bit of a war of attrition um there's a lot of uh junior developers Junior explorers out there that need financing so there's a lot of pressure on that space right now however that is creating opportunity both for private Equity royalty companies and corporates uh who are looking to acquire uh development assets right you've come at this where there's a blended approach to risk as well the royalty companies it's prime time for those guys yeah I bet a lot of conversations happening there yeah absolutely uh we've got uh full deal teams on the ground here running in two tracks um so you know we've seen a lot of companies that have come around through VN streaming business um that uh we would would not normally see in a strong Equity Market uh so that's uh you know field of opportunities that we're we're active in okay and uh we've always been sort of a Down cycle strategist to you know Buy Low sell High easy to say hard to do what well we're right there right now so let's let's come up to uh the royalties another time obviously things getting Great Guns there um the super Cisco development today you've got a couple of projects going on and I want to ask this question in the backdrop of what's been a tough market for the last three years for precious metals share price is not looking particularly uh nice to look at them at the moment how do you build a business in that environment yeah well we're you know every one of these projects usually goes through at least one cycle so we do our best to plan ahead take advantage of the cycle and down cycle we'll try and deploy Capital to reduce costs by buying equipment and hedging out uh costs at the bottom getting through permitting Cycles which we're doing right now and also uh any chance we can to bolt on projects that are coming in at low cost So within our group right now uh you know the main development project is called Caribou gold uh located just south of Cornell and it's a classic a Cisco story this is a Brownfield camp that was part of the fabric of the development of Canada back founded back in the 1858 um you know lots of historic mining there and it was the reason that the British Columbia was in the Canadian Federation um fast forward to where we are now we took the project over in 2016. lights kind of went on uh on a geological model that I think is quite striking uh in 2018 and we filed for our feasibility study for the permit for 4 900 ton a day underground mine uh back in 19 and we just received notice that um our EA has been referred for the minister so through the final steps of the permitting process and our goal was uh you know to get the permit for that initial phase we think this is a mining camp and this gets us a big project uh built in Canada we're looking for about 200 000 ounces a year to become out of that with the building stones to maybe be a 350 to 500 000 ounce a year uh Camp as we get further into the development on this project okay so and we'll go down to Utah in a second I'm you've raised as much money as your market caps today so how do I as an investor in the last three years how do I investor gauge the value true value of a business like that if uh the Market's not giving you any kind of credit almost it seems yeah I think it comes back to the Buy Low sell High strategy uh um a lot of money has gone into these projects and all very wisely spent uh mostly you know in the terms of the BC Caribou gold project so you're benefiting from 750 000 meters of drilling which is about 2 million feet um and there's about 260 million dollars worth the infrastructure has been put in place um so you're really getting a you know quite a deal if you come into the shares right now and it you know there's a couple of catalysts that I would you know say are our pertinent in a market like this uh this will be one of probably the next gold mine to be fully permitted in Canada um it's located on brownfields and it's going to be a very ESG friendly mine I mean that we have a deal with BC Hydro at 6.1 cents Canadian a kilowatt hour and most of the money will be electric uh so it's it's quite a quite a new new tech mine uh taking advantage of that and we've received several credits uh within BC and Canada to build this mine uh with these newer Technologies right so Warren Buffett says if you're investing it's about the future the value the money that the company is going to give you it sounds like from the feasibility study numbers this will throw off a lot of cash yeah people aren't getting it right now well I think there's two main numbers to remember about the Caribou gold project one is we're getting about 14 000 ounces per vertical meter so 100 ounces 100 vertical meters would get you 1.4 million ounces uh We've drilled this thing down to about 900 meters in in sort of proof of concept on a resource level we've only drilled it down to 350 meters and we ended up with about uh 3.7 million submission indicate another 1.7 in uh in in inferred um so if you you know extend that down below us which we would have proof of concept now you can see it becomes a sizable asset and you know the Cisco group we're always about world-class trying to get to tier one which is 500 000 a year the reason we stuck into this project is the way we have um is because we believe this is a mining camp uh just in mind um and you know this first step will get us the central processing facility um and the significant amount at depth under the existing structure it's 83 kilometers or 50 miles of trend and the current resources on four kilometers or two and a half miles um you know so we've explored about six percent of the mineralized belt on this thing so it is going to be a large project of the future most of the time I own this and so we've got the feasibility study out we're going through bankable as well and then fundraising inevitable fundraising to do that yeah we're at project financing right now okay it looks pretty good um we've filed a feasibility study in January for phase one of the 4900 tons a date and we're working on you know the expiration to go to expand on that premise um but that 4 900 tons a day will generate about 200 000 ounces and sets the stage uh for possible expansion after that okay and just again I'm trying to understand the mindset geek at forty percent um reasonable institutional following there and and Retail behind that does that kind of register a structure cause you any problems in terms of liquidity um you know we can always argue about liquidity I mean everybody everybody loves the idea of liquidity everybody hates it when you get it on a down cycle um you know I think that having a big block in there uh you know while we try and evolve this asset and get the market uh Market eyes on it it's a bit you know we're a bit in the uh in the wrap up to you know the recognition as we come through this permitting and development phase um and we see the larger project emerge so to protect it through that that portion of the market cycle um I think having the big block in there is a big advantage and also shows our commitment to the project from the assistant for sure now you must be here meeting some of those institutional guys yeah totally so they're concerns because they're obviously suffering from well certain fun side redemptions um they're suffering like everyone else you don't have any pressure to perform oh totally yeah I haven't taken any days off this year uh you know I as I always say I'm Built For War not peace so um I like these kind of markets in terms of getting everybody motivated and expediating things and putting a sense of urgency into things um you know so we work hard in these markets and right now we're taking advantage by securing equipment we've we've bought our own Milling equipment which is all brand new but in storage in Prince George at about 10 cents on a dollar we've secured contracts with Sandvik and other suppliers we're working hard with First Nations on Powerline joint ventures so we're very busy uh in terms of a Down cycle strategy which we've been through before you have to remember we built Canadian milartic Canada's largest gold mine in 2008-9 um when the world was ending so we've seen these things before and if you you know you this is the the market you want to work 20 hours a day in because you can get a lot done while everybody else is you know having a chat about what to do next talk to me about the the I always like to know what's going on in the head of the CEO in in good times it's easy to kind of you know just let things run as they are because it's working why change it in moments like this you've been you know well you've been putting a lot of pressure on your management teams it's actually yeah I've seen a few headlines um you know so you know your message to them and your message to shareholders about again can we expect how do you build businesses is what well I think I'm like a lot of entrepreneurs I come from a very humble background uh so I always have a sense of urgency about getting things done and and making hay while the sun shines because you know I did 13 years in West Africa my takeaway from that is no matter how bad it is could get far worse with him um so so you know my my intensity in the in the development especially development assets which are extremely hard and it's a you know it's a different sport there's not that many of us that do it um you know you have to you have to be pushing all the time and you know you know the harder you work the more opportunity you create and um that's certainly been the case for us we sold our company in 2014. uh we ipoed with the Cisco royalties two days later um yeah about 500 million dollar market cap uh now that company is worth 3.2 billion uh and with the other companies in the on the platform worth about another two billion so so you know combined it's 3 billion for the royalty company and 2 billion for the rest of the platform so we're bigger now than we were uh in 2014 uh and that's come out of this sense of urgency to push John Brzezinski he's a you know he's a he's a extremely capable CEO and he's done an extraordinary job of raising money and drilling out the windfall deposit which nobody else I think could have done uh and we're in the same process both in the cariboul project as well as in Utah where we are yeah you know remain pursed on the edge of greatness there with uh Journey next to Robert friedland's uh tint dick project um chasing after a bingham-style for free uh so we're you know we're elephant hunting on that one which is what the Cisco platform is for is to go and do good geological work and then do you know acquire things in the case of tintic for example we spent 13 years working on that uh the targeting was really originally done by dick sillito who's somewhat The Godfather of the per free model and uh you know dick's been calling us two every two months for 13 years that we need to own this thing and drill this thing we finally got it done in 2022. um and that's you know that's the Cisco way is that you know we persist uh we don't necessarily do the deals that are available in the marketplace we choose what we want to do and then we drive hard to make it happen this one took forever took 13 years to get it yeah um and we're about to drill that here in the next month or so do you feel you've got enough on your hands at the moment because like it stops get more tough to get money in this market for anyone yeah they're great and the goods equally but there's some deals out there as well but your portfolio is big enough oh I'm a context player um I don't really look at the market so much as I look at assets that are relative to each other basis and I'm always looking for tier one assets and the only time that those become available to a group like us is during a downtick so we're hunting uh we're looking at things pretty intensely um and uh we'll we'll take advantage where possible um we've had extraordinarily good access to Capital uh we've raised over 3.2 billion dollars in equities uh on the platform so we're pretty well known within the institutional space and you know as close to being a bankable name as a as you could be I think you know right there's obviously there's you know the lundens and Robert friedlands and the Russians right yeah our group has been pretty capable and we've delivered value in the past so it's going to finish off here because I think a good place to be in meetings to be in okay he's I like markets like this because it shakes the tree Things fall out that should fall out uh and there's a little bit more breathing room for everyone else so your advice for investors looking and assessing and diligence in companies what makes a strong company what makes a good investment well the case of ODB we've got 86 million dollars in cash on the on the balance sheet no debt we've got 33 million dollars worth of marketable equities uh and we've got two world-class Brownfield camps that are rated our Cisco theme which is called Suds which stands for shut up and drill stupid was on our PowerPoint back in 2004. um yeah so we're we're we're looking at all these Brownfield camps this is our specialty yeah um we you know within the group we've done a couple other things uh Brunswick uh exploration in the lithium space and then uh you know gas Bay copper and Pine Point and some of these other base metal projects and we continue to acquire good assets uh within the group we have very capable management teams that we can uh you know incubate assets with and then you know in our group when you have a good good management team and they take an asset to a certain level we tend to go back and back to the start and uh incubate another asset and continue to grow that way and add value you know so I mean I think if you look at the Cisco group you can buy a lot of these the royalty companies obviously um going to be the hot ticket in the in the downtick market in the development space I think between osk and odv um you've got a couple of leaders in the space that have the ability to do world-class things so that's kind of where I would sit right now and Catalyst events that for investors or you know permits and finance project financing and and uh you know wrap ups mine builds and that sort of thing uh for for True Value those are where the where the paydays are going to come sure appreciate the time thank you you better get back there so we uh back to the battlefield

Channel: Crux Investor

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Keywords: mining, gold, nickel, cobalt, uranium, vanadium, lithium, precious metals, crux investor, cruxinvestor, silver, TSX, ASX, AIM, LSE, investing in uranium, investing in mining, investing in stocks, investing in stocks for beginners, investing in gold, invest in stocks, invest in stocks for beginners, invest in gold, invest in mining, analyst's notes, analysts notes, analyst notes, battery metals, electric vehicles, net zero, carbon neutral, carbon credits, nuclear, best mining stocks, TSXV

Id: m5qTRkFS50Y

Length: 15min 56sec (956 seconds)

Published: Thu Sep 21 2023