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Osisko suspends work at BL 2 test mine

Osisko Development has suspended work at the Bonanza Ledge 2 test mine, which is part of its Tintic project in Utah, USA, due to supply chain and inflationary pressures but does not expect a delay to the scheduled completion of its Cariboo feasibility study in Q4.
Osisko suspends work at BL 2 test mine Osisko suspends work at BL 2 test mine Osisko suspends work at BL 2 test mine Osisko suspends work at BL 2 test mine Osisko suspends work at BL 2 test mine

Osisko Development's Cariboo

Bonanza Ledge 2 is now on care and maintenance, and it is unclear how long Osisko intends to continue the suspension.

National Bank of Canada analyst Don DeMarco said in a research note that the BL 2 suspension should not have a "material" impact as it was expected to have a "modest" mine life of about 18 months.

Osisko acquired the Tintic project and its Trixie mine in earlier this year. Trixie officially re-opened in June 2020.

Osisko also gave an update on key operational details seen at Trixie from late 2020 to the end of May 2022, including an increase in gold recoveries to 74% in Q1, compared to 68% for 2021,

There was 7,163 oz of gold produced and sold in Q1 2021, which is up from the full-year volume of 14,608oz last year.

Osisko Development is trading around all-time lows on the TSX Venture Exchange. On June 29, the stock was quoted at C$6.49 (US$5.03). As recently as April, it traded above C$14. The company has a market capitalization of C$388.19 million.