The Assay TV - Sean Roosen, CEO & Chairman, Osisko Development (NYSE:ODV, TSXV:ODV)

we've got very high quality Assets in this company but I think to take Center Stage uh certainly for 2023 in uh Parker Villas is moving through the permitting cycle which is obviously a big value Builder to have a large bulk kind of project permitted in Canada [Music] well hello and welcome to viewers to this edition of assay TV where we're featuring an Insight on Cisco development and I'm delighted to be hosting Mr Sean rusen CEO and chairman of the board also the executive chair of the board of a Cisco called royalties and of course Sean is a frequently listed uh character amongst mining's top 20 most hit influential individuals so of course great to have him on the show Sean a very warm welcome to you thanks very much Adam and uh glad to be here especially in these gold environments indeed it's a very interesting time for the market so um we can perhaps talk about that in a little bit as well but look um we want to get down into uh some overview of the companies here and looking at the success of what you've done building the melactic mind now Canada's largest gold mine the name of Cisco mining is synonymous within this industry um could you share an insight though to how a Cisco development came together and how that fits within the broader Cisco group of companies certainly I started out as a uh as an underground minor at the age of 18. I went to a place called The hillberry School of Mines for mining engineering technology um worked most of my career on development assets uh and uh we started the a Cisco group really in 2003 uh from my private Equity Group Eurasia holding so I transitioned from being a technical person into being more of a strategic developer and on into uh mine Finance if you will for the last 23 years in O3 we found an uh founder of Cisco which was a really a 500 000 company not a 500 million dollar company and we were fortunate enough that we acquired the property the Kmart in 2004 through a bankruptcy process we bought it for a little over eighty thousand dollars and uh in 2004 we started the work on the population historic data which is really our specialty we consider ourselves to be Brownfield build a specialists in terms of going into Old mining camps with good mineral endowment and unlocking uh the potential of those camps based on new technology and new interpretations as well as the Consolidated land packages happen over time um can even Arctic was our first big success uh we thought at the beginning in 2005 we had maybe had four or five hundred thousand ounces uh we published a resource of about 4.3 million ounces on the first pass from historic data uh and then uh things uh took off from there became evident that the Canadian Market Camp had a huge endowment that would be low grade uh and there weren't really that many low-grade bulk Cottage open pit mines in the Canadian mining scene at the time so we were kind of the pioneers of the model for Canada if you will and we have a publishing a preliminary feasibility study our final feasibility study in 2000 in November of 2008 and we pretty much shot the eyes out of the financial crisis uh and we published a resource about 8.43 million ounces and we went on to really sort of break the back of the equity financings in February of 09 with one of the largest Equity deals done at the time 403 million dollars uh with another 240 million dollars worth of warrants that were seven months out and we built the Canadian Arctic in 2011. we commissioned it and we ran it till 2014. um and we rounded up at the time it was uh headed for 700 000 ounces a year of production uh we got into a hostile bid with gold Corp in the spring of 2014. um and uh we ended up selling the copy to Humana agnico uh for about a total consideration of about 4.1 billion dollars including 500 million dollars for a royalty company called now called us the school called royalties uh which was the spin Co from that transaction the discovery that we did it came article ended up being far more important than what we actually sold it for during the Hostile we had a discovery called the goldie Zone uh sorry the uh the goalie Zone and the Odyssey Zone which is now resulted in another 14 million plus ounces having been found there bring a total endowment it came Arctic north of 30 million ounces so since the historic production Plus what's been found since we got involved in 2003. so it's been an extraordinary asset and continues to be a Cornerstone asset now for like Nico that owns it 100 as of this year quite quite a story and one of the great uh great pleasures of my life is to be the CEO of that group as we went through that yeah absolutely excellent thank you for the rundown in the history of it there look thinking about sort of when you started this and where we're at now and your point about the markets and and the gold price at the moment how does this moment feel versus some of the other cycles that you've obviously passed through as a financier and a developer and a projector well it's a little bit uh you know a little bit of analysis to what we would have seen in 2003 2004 uh when we felt like the gold market was coming back after it hit you know in 99 2000 it hit below 300 300 an ounce we had a bit of a shake up in 2020 through 2021 uh then with the pandemic gold prices did rise uh and we see you know the gold prices have continued to do their job in terms of infecting value uh as financial crisis a pandemic uh have shown some weakness in various parts of the economy and most recently uh three big Banks going down in sequence uh with credit Swiss being the most recent 167 year old Bank having disappeared last weekend um you know so there's a lot of a lot of the reasons that gold is is of value is for times like this when you really don't know what you're getting uh on institutional investment so gold has done its job it's over 1900 an ounce again I suspect that we have a good shot here at seeing 2000 and 2100 this year uh if they're any more Domino crisis with the banks and if confidence is stricken against the US dollar with all the things that are going on uh in the world especially with the Brick Nations and the amount of momentum that the brick currencies are gaining yeah absolutely excellent okay very good let's phone it hone in then on the on the projects last year you acquired the prospective uh tintik project in Utah um it's immediately next time and hose electric property in the southwest could you explain for viewers the rationale behind the acquisition the history of East tintic and then also what's the strategy in evolving this project so Cisco development was relaunched in 2020 uh and it had it at the Caribou gold project and the San Antonio in central British Columbia quite a large project in one of the bigger mining camps that we're working on uh as well as the near-term heat bleach project in San Antonio Mexico uh with the sulfide project underneath it so that was two good projects in the company uh the third project that we were quite Keen to bring in is the Tim take project which is a project that we've been pursuing really since 2010 so over overnight success in 12 years uh to get that deal done and it's quite an extraordinary property it's the ex-kenny got property about 40 miles south of Bingham which is North America's largest and most productive uh core copper gold multi-element uh poor free system that's been mine and is the reason the Salt Lake is where it is uh and it's you know one of the key Assets in the world has produced over 41 million ounces of gold as a byproduct of 25 billion pounds of copper and so it's you know quite an extraordinary mineral endowment that's in this area we're on strike with Bingham we're in the same age rocks as Bingham we're about 40 miles south the difference between Bingham and what we're looking at a tin tick is we think that the port free at Bingham was eroded down to the top of the of the carapace of a periphery that is the sort of the fluid cap that sits on top of these large large torophorries and that is the reason that Bingham was an open pit uh what we're hoping to see is to test the idea that there is a copper of gold poly metallic porphyry sitting underneath the properties at tintic tin tick had 23 previous producers on the property which we believe were all distillate from the under underlying porphry um and that I believe is why Robert is there free to Robert Friedland with the Ivanhoe elector to the south of this he's made uh very you know very big uh opening statements about what he thinks the potential of the tintek belt is we agree with him on the science we're a little bit to the north of where he is drilling um we are we are share a border with him on the same for free targets we have about 17 000 Acres of continent land there of which 14 000 is directly owned by the company and 3000 is under lease and uh we're currently uh happy that there was a large high-screen Discovery um relatively large targeted Discovery uh in one of the end members of the previous gold producer so there was five previous gold producers here of which uh the tint the detentec belt uh sits in the middle and the gold Pro mines are off to the to the eastern border and they all follow along the main structure and the least knowing one of the projects was called Trixie had the lowest grade of all the historic gold mines but however it's produced this new discovery uh that's called the t2 T4 structures Trixie 2 and Trixie four that hosts the one of the higher grade mineral resources that I've ever been involved with we published a a three-stage capped uh resource MRE here in January uh that headline with the 240 213 000 ounces at 28 grams gold per ton which was by far the highest grade of any published resource Reserve in the space at present and another 240 000 ounces of inferred resource of around 20 grams this thing is really shallow it's about 190 meters down or 625 feet now we currently have a ramp down 60 of the vertical distance to that and we should be in the deposit with the ramp by June we do however have access into the deposit as we speak today uh that comes from the shaft that was there and that's how the discovery was made the previous owners had driven a drill drift perpendicular to the strike of this uh this main structure about 150 meters back and they had crossed over what became the t2 Discovery structure which had multi kilos per ton we so we also lined out about 240 meters of strike length for the long deposit and we put cross-cut ribs in the deposit and we sampled from within the deposits better than Diamond drilling we're actually in the deposit and we took 4 550 samples uh chip samples from the underground within the deposit and the average grade was 74 grams gold per ton and 94 grams Silvers which we would expect to see in this poor free system uh in terms of of high sulfidation epithermal Zone that the voice sort of boiling Zone if you will and has been an extraordinary discovery that we're currently working on and we'll be putting that into some test mining as we speak it's already from test Mining and just on the development markets produced about 35 000 ounces of gold at plus one ounce per ton just from the actual development work not for scoping our money fantastic um so from the 30 000 foot view of this uh tinting property you know it looks like there's going to be a really big pull free potential here would you say that's accurate well we certainly hope so that we have every every component uh we've had both dick silicone and Reuben Padilla like quite famous poor free specialist dick Soto wrote the original white paper on poor free discoveries in the mid 90s this is one of his top targets and he's the one that brought this opportunity to the group back in 2010 so we're quite Keen to drill it and we will start drilling as the weather gets better the target adapters between five and eight hundred meters to the top of the port for you so we'll be drilling quasi thousand meter holes which are not that deep today but when they stop mining at Kennicott in 1995 here they stopped because of the water Zone which at the time was about 400 meters or about 1350 feet and at the time they never mined for gold per se they were mining for flux to feed the Bingham smelter and they were trying to have enough gold content within the high quality silica to pay for the mining so there's very little expiration done within the gold boils on uh there were 18 previous pulling metallic deposits in the in the shales called carbonate replacement deposits that were poly metallic silver LED zinc silver lead and zinc there's a couple of those deposits that are still left one called the Bergen that we also see in this in this Suite of assets there's a significant amount of opportunities in all fronts the high grade gold zones that we believe exist up and down this contact Zone on the eastern border uh as well as some of these replacement zones that exist but we're within the sedimentary cap there was never any air cropping discoveries on this project so everything was discovered either through pebbled egg prospecting or by sinking shaft uh on the property so it's quite an interesting one there's 150 miles of underground workings to go from uh we're taking advantage of those underground workings and the current Trixie Discovery uh and we're actually underground down to a level of 750 feet there and this shaft goes down to 1350. so there's a significant amount of value in the existing underground infrastructure as well as our big hope which is to test this poor free concept as we get further into the project yep excellent upside that okay brilliant so shifting over to British Columbia if we've got to get through your projects here you've recently published a feasibility study full Caribou which you referenced before could you talk about how you see that project evolving and what you're focused on there in 2023 certainly it's one of the bigger undeveloped gold deposits in in the world and certainly in North America uh and is one of the assets that's quite scalable and we believe it can become a tier one asset which would be defined by being able to support four to five hundred thousand ounces a year of production uh we're in the early stages of this project it's a Consolidated land package it took years and years of Patchwork consolidation to put together over 2 000 square kilometers or about 500 000 Acres but more importantly to that there's about 83 kilometers of mineralized trend and the current uh resource that we published of 2 million 2.1 million ounces of reserves another 1.7 million ounces major indicated so the two million ounces in reserves is really in the near surface component down to about 350 meters or a thousand feet we've tested the mineralization down to a vertical depth of 900. the mineralization continues and it's fairly predictable extremely homogeneous and we've modeled it in what are called vange corridors which race actually hydrothermal fluids that have gone into the cracks of the anticlinal structures so really just a sort of a a fault if you will that's been injected with the gold Rich material and the average grade of all the intercepts after 700 000 meters of drilling in the in the quartz veins is actually 11 grams a little over 11 grams so we're able to use that to take those those zones and mine them under bulk tonnage so I expect that 2023 will be aha a year for the market on this asset as we get further into it we're currently in the final stages of the EA program and we're hoping to have the a certificate by August so we've been in the AAA process um or this will be the third year the two projects that were ahead of us have received all their certificates so we're the next in line and the government of BC has been extremely supportive about making this uh the next project that receives its EA approvals and we expect to have construction released sometime in q1 of 2020 three so this is the end of a long sort of process we stopped drilling at roughly the 350 level 350 meter level but the deposit continues on well past a thousand years at depth so we expect this to be one of the more important assets as we go forward the goal right now is to take get a ramp in and take an underground sample which is fully permitted right now and we have we're employing two new technologies the road header technology which is a tunneling machine somewhat along the lines of what our friend Elon Musk has been working with and also to use the orus order which is a both an optical and an xrf sort of that mechanically sorts things that's similar to what you would see at the airport when your baggage gets surveys we can see the sulfides within the Rock and with the pulse of air we can select that piece of rock and put it into a separate collector with that little pulse of air will inject that and move it over and it's relatively low cost and environmentally friendly way to reduce the footprint of both the tailings as well as it's low cost and it's a one to two dollar a ton process fee so those two technologies are really adapted to this project as people at steinhard and Palmer have said the the Caribou gold project and the mineralogy there is the poster child for or sort of Technology because it has a density differential of about one so the waste rock is about half the weight on volume basis as the actual mineralization so quite a bit going on with this project and a huge opportunity for shareholders as we unlock that project yeah we refer to it internally as the Canadian Arctic of the Underground yeah absolutely excellent opportunity that okay very good well look we haven't got long left but I wanted to move on to your uh project in Mexico um in Sonora the San Antonio project there if you could share an update there as well certainly it's a low-cost low capex heat bleach project uh to start with it's about 300 000 ounces of oxide and transition material on a 1.1 million ounce resource the rest of it is in the sulfides the grade's quite high at 0.9 grams in the oxide at 1.2 to 1.3 grams in the sulfides we think that the the sulfide component is currently at about 700 000 ounces to 800 000 ounces and we think there's significant upside to to continue to do that we've only done seven uh 27 000 meters of drilling there but a significant upside within the project but obviously we've got uh very high quality Assets in this company but I think to take Center Stage uh certainly for 2023 in uh Parker Villas is moving through the permitting cycle which is obviously a big value Builder to have a a large bulk Finance project permitted in Canada during these current markets so I think you know we've got the Catalyst for shareholders to see a lot of value recruit this year okay excellent to get an overview of all your project stash on can we just delve into the company financials and the shareholder registry as well for interested investors and viewers yeah it's an interesting uh share structure uh 40 of the stock is currently held by uh Cisco gold royalties the mother company of the company of the acesco group uh so a large shareholder there as well as a significant component of uh of qualified retail investors so a lot of us-based investors uh because of the U.S asset over 1600 individuals participated in the non-brokered retail round and that group owns about 20 percent uh of the company as well as about just under 20 belongs to the it10 pick shareholders Who Sold us the tintic asset so uh very well held the company with a lot of shareholders who are very interested to see what happens at tintech so it is a little bit thinly traded but it is listed on the NYSE as well as the pssp so one of the few companies of the scale we're about a 400 million dollar uh Canadian market cap for 400 450 and about you know called 300 million us plus market cap but we think that there's quite a bit of room to grow this company there's quite a value Gap out there and it's a it's a good shareholder base and certainly very dedicated to the cause in terms of unlocking authentic uh caribou and eventually San Antonio so uh yeah have a look at the shareholder registry because I think it is someone unique yeah excellent very much with hvstd.com excellent well Sean thanks so much for speaking with us and it's fantastic to get an overview of the elements of the Cisco development business lots of catalysts here as well for interested investors so thanks for speaking with us ATV thank you very much and the good work that you do at Azure TV

Channel: 121 Mining Investment TV

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Id: UGp85-mCntQ

Length: 21min 34sec (1294 seconds)

Published: Thu Apr 20 2023