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Osisko Development Corp
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Osisko Dev drills 78.9 m of 2.19 g/t Au at San Antonio

2022-02-28 09:19 ET - News Release

Mr. Sean Roosen reports


Osisko Development Corp. has released the final drilling results from the 2021 exploration and category conversion drill program campaign at its San Antonio project in Sonora state, Mexico.

The company is also pleased to report, further to its previously announced non-brokered private placement of up to $110-million (U.S.) of subscription receipts of the corporation, that the corporation expects to close a first tranche of the non-brokered placement on March 4, 2022, for gross proceeds of approximately $67.3-million (U.S.) of subscription receipts.

The corporation has also received subscription proceeds or expressions of interest for the remaining subscription receipts allotted under the up to $110-million (U.S.) non-brokered placement, which Osisko Development expects to close, as a second tranche closing, in late March, 2022. The non-brokered placement is being completed on a non-brokered basis and no commission or finder's fee will be paid by Osisko Development in connection therewith.

San Antonio drill results summary:

  • A total of 27,900 metres were drilled in 177 holes in 2021. The objective of the drill program was to conduct exploration and resource drilling at a spacing of 25 metres and historic drilling validation for the three main target areas;
  • This news releases encompasses all 6,550 metres in 33 holes from the Golfo de Oro target: GO-DD-21-015 to GO-DD-21-174 inclusive and the remaining assays from 8,050 metres in 76 holes at Sapuchi: SP-DD-21-060A to SP-DD-21-173 inclusive;
  • Assay highlights from Golfo de Oro include 1.55 grams per tonne gold and 2.32 g/t silver over 42.50 metres in hole GO-DD-21-111 and 2.47 g/t Au and 18.67 g/t Ag over 21.20 metres in hole GO-DD-21-057, including a sample of 18 g/t Au and 43.90 g/t Ag over 1.50 metres within the prospective hydrothermal breccia;
  • Assay highlights from Sapuchi include 2.19 g/t Au and 4.12 g/t Ag over 78.90 metres in hole SP-DD-21-102, including a high-grade sample of 21.30 g/t Au and 11.75 g/t Ag over 3.20 metres;
  • A total of 18 intervals below assayed greater than one g/t Au over at least 10 metres;
  • Gold mineralization is hosted within altered hydrothermal breccia and sediments, as stockwork quartz veins and veinlets and adjacent to intrusions and fault structures.

Assay highlights:

  • 0.81 g/t Au and 0.79 g/t Ag over 19.50 metres in hole GO-DD-21-033;
  • 9.59 g/t Au and 7.78 g/t Ag over 1.50 metres in hole GO-DD-21-049;
  • 2.47 g/t Au and 18.67 g/t Ag over 21.20 metres in hole GO-DD-21-057 including:
  • 18 g/t Au and 43.90 g/t Ag over 1.50 metres;
  • 0.86 g/t Au and 0.62 g/t Ag over 35.65 metres in hole GO-DD-21-094;
  • 1.45 g/t Au and 2.05 g/t Ag over 31.25 metres in hole GO-DD-21-110;
  • 1.55 g/t Au and 2.32 g/t Ag over 42.50 metres in hole GO-DD-21-111;
  • 0.87 g/t Au and 1.62 g/t Ag over 21 metres in hole GO-DD-21-161;
  • 3.58 g/t Au and 2.71 g/t Ag over 5.30 metres in hole SP-DD-21-060A;
  • 1.37 g/t Au and 1.84 g/t Ag over 14.80 metres in hole SP-DD-21-065;
  • 0.93 g/t Au and 6.76 g/t Ag over 26.65 metres in hole SP-DD-21-081;
  • 2.35 g/t Au and 3.99 g/t Ag over 8.50 metres in hole SP-DD-21-081;
  • 2.49 g/t Au and 8.32 g/t Ag over 8.80 metres in hole SP-DD-21-082;
  • One g/t Au and 14.32 g/t Ag over 40.80 metres in hole SP-DD-21-087;
  • 0.94 g/t Au and 7.37 g/t Ag over 17.55 metres in hole SP-DD-21-088;
  • 1.06 g/t Au and 3.88 g/t Ag over 60.45 metres in hole SP-DD-21-089;
  • 1.39 g/t Au and 1.79 g/t Ag over 10.20 metres in hole SP-DD-21-093;
  • 0.96 g/t Au and 1.08 g/t Ag over 13.50 metres in hole SP-DD-21-096;
  • 1.07 g/t Au and 2.31 g/t Ag over 22.95 metres in hole SP-DD-21-096;
  • 1.60 g/t Au and 1.92 g/t Ag over 25.45 metres in hole SP-DD-21-098;
  • 2.39 g/t Au and 3.36 g/t Ag over 10.50 metres in hole SP-DD-21-099 including:
  • 10.20 g/t Au and 5.91 g/t Ag over 1.30 metres;
  • 2.19 g/t Au and 4.12 g/t Ag over 78.90 metres in hole SP-DD-21-102 including:
  • 21.30 g/t Au and 11.75 g/t Ag over 3.20 metres;
  • 8.28 g/t Au and 1.92 g/t Ag over 2.35 metres in hole SP-DD-21-104;
  • 1.41 g/t Au and 1.09 g/t Ag over 18.30 metres in hole SP-DD-21-108;
  • 1.82 g/t Au and 2.18 g/t Ag over 7.50 metres in hole SP-DD-21-112;
  • 8.56 g/t Au and 4.42 g/t Ag over 1.70 metres in hole SP-DD-21-124 including:
  • 16.60 g/t Au and 5.34 g/t Ag over 0.70 metre;
  • 0.96 g/t Au and 2.51 g/t Ag over 12.65 metres in hole SP-DD-21-128;
  • 1.03 g/t Au and 2.47 g/t Ag over 12 metres in hole SP-DD-21-130;
  • 1.19 g/t Au and 2.14 g/t Ag over 20.25 metres in hole SP-DD-21-134;
  • 1.75 g/t Au and 3.33 g/t Ag over 17.90 metres in hole SP-DD-21-135;
  • 1.22 g/t Au and 1.88 g/t Ag over 16.95 metres in hole SP-DD-21-138;
  • 1.31 g/t Au and 1.26 g/t Ag over 13.80 metres in hole SP-DD-21-146;
  • 1.46 g/t Au and 2.65 g/t Ag over 15.95 metres in hole SP-DD-21-148;
  • 7.04 g/t Au and 121 g/t Ag over 1.90 metres in hole SP-DD-21-153;
  • 1.18 g/t Au and 3.85 g/t Ag over 18.60 metres in hole SP-DD-21-173.

Sean Roosen, chief executive officer of Osisko Development, commented: "The 2021 diamond drill campaign at our San Antonio project was successful in defining and expanding the known zones as shown by these recent results. The Sapuchi, Golfo de Oro and California zones trend for approximately three kilometres and there are at least a dozen other targets at surface that remain unexplored or underexplored along a 10-kilometre strike. These results will be incorporated into the mineral resource estimate and used to further determine our next steps for expansion on the project."

The San Antonio project gold mineralization is characterized by hydrothermal breccia that forms an approximately 3,000 m long east-northeast-trending mineralization corridor with the Luz del Cobre copper deposit at the east. The gold mineralization is associated with intense chlorite and carbonate alteration and is intrusion-related with host sedimentary rocks. The breccia has been defined to a vertical depth of 500 metres and at an average depth of 250 metres. Drilling has occurred within the three major zones at Sapuchi, Golfo de Oro and California, over a combined strike length of one kilometre of the three-kilometre breccia trend.

True widths are estimated to be 80 per cent to 100 per cent of reported core length intervals. Intervals not recovered by drilling were assigned zero grade. Top cuts have not been applied to high grade assays. Complete assay highlights are presented in the attached table.

Qualified persons

Maggie Layman, PGeo, vice-president, exploration, of Osisko Development, and a qualified person for purposes of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has prepared, validated and approved the scientific and technical content in this news release.

Quality assurance/quality control

Once received from the drill and processed, all drill core samples are sawn in half, labelled and bagged. The remaining drill core is subsequently stored on site at a secured facility at the project site. Numbered security tags are applied to lab shipments for chain of custody requirements. Quality control (QC) samples are inserted at regular intervals in the sample stream, including blanks and reference materials with all sample shipments to monitor laboratory performance.

Drill core samples are submitted to ALS Geochemistry and Bureau Veritas (BV) preparation laboratory in Hermosillo and then sent to its analytical facilities in North Vancouver, B.C., for analysis. The facilities are accredited to the ISO/IEC 17025 standard for gold assays and all analytical methods include quality control materials at set frequencies with established data acceptance criteria. The entire sample is crushed, and 200 grams are pulverized. Analytical packages for ALS and BV are AA24 and FA450 respectively. Multielement geochemistry is also analyzed with ME MS61 at ALS and MA 200 at BV.

About Osisko Development Corp.

Osisko Development is uniquely positioned as a premier gold development company in North America to advance the Cariboo gold project and other Canadian and Mexican properties, with the objective of becoming the next mid-tier gold producer. The Cariboo gold project, located in central British Columbia, is Osisko Development's flagship asset with measured and indicated resources of 21.44 million tonnes at 4.6 Au g/t for a total of 3.2 million ounces of gold and inferred resource of 21.69 million tonnes at 3.9 Au g/t for a total of 2.7 million ounces of gold (see NI 43-101 technical report and mineral resource estimate effective Oct. 5, 2020). The considerable exploration potential at depth and along strike distinguishes the Cariboo gold project relative to other development assets, as does the historically low, all-in discovery costs of $19 (U.S.) per ounce. The Cariboo gold project is advancing through permitting as a 4,750-tonne-per-day underground operation with a feasibility study on track for completion in the first half of 2022. Osisko Development's project pipeline is complemented by potential near-term production targeted from the San Antonio gold project, located in Sonora, Mexico. Osisko Development began trading on the TSX Venture Exchange under the symbol ODV on Dec. 2, 2020, and the company's 14,789,373 outstanding share purchase warrants were listed on the TSX Venture Exchange under the symbol ODV.WT on Oct. 25, 2021.

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