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Osisko signs hydroelectric deal for Quebec mine

Osisko Mining Inc. [OSK-TSX] has signed what it describes as a landmark deal with Miyuukaa…

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This article was originally published by Resource World

Osisko Mining Inc. [OSK-TSX] has signed what it describes as a landmark deal with Miyuukaa Corp., a wholly-owned corporation of the Cree First Nation of Waswanipi (CFNW), in relation to a project that will deliver hydroelectricity to Osisko’s 100%-owned Windfall gold mine in Eeyou Istchee James Bay, Quebec.

Under the deal, Miyuukaa Corp. will finance, build, own and operate a 69 kV dedicated transmission line that will support hydroelectricity to the Windfall project. The power line from Waswanipi substation to Windfall minimizes the environmental footprint and is located 100% on CFNW traditional lands covered by the James Bay Northern Quebec Agreement.

“The advent of power at Windfall will allow us to move away from diesel generated electricity for our exploration activities,’’ said Osisko CEO and Chairman John Burzynski. “Hydroelectric power availability for the anticipated construction of the Windfall mine will make a significant difference in both the cost and environmental impact of our future panned activities,’’ he said.

As an end user, Osisko will pay service fees to Miyuukaa. Terms will be further outlined in a definitive agreement to be entered into between Osisko and Miyuukaa, which is expected to be completed in the coming month.  The work is projected to take 12 months to complete, with the hook-up date anticipated in the first half of 2004.

News of the deal comes after Osisko recently released a feasibility study for its Windfall gold project.

The study envisages a nine-year mine life with average production of 306,000 ounces of gold and a average all-in-sustaining cost of US$758 an ounce. The reported net present value at US$1,500 an ounce is $965 million and includes 3.16 million ounces of reserves. Excluded from the study is 3.34 million ounces of inferred resources (12 million tonnes at 8.4 g/t.)

The feasibility study reflects drill results as of June, 2022 and includes a dual ramp-access to the mine, central processing mill on site, and figures from the September, 2022, mineral resource estimate. It shows a measured and indicated resource of 4 million ounces at 11.4 g/t and 2.1 million ounces at 6.0 g/t. Probable minerals reserves are estimate at 3.15 million ounces at an average grade of 8.06 g/t.

Total capital costs are estimated at $1.4 billion including life of mine sustaining capital for the planned underground operation of $652 million., and $788.6 million in pre-production costs.

Osisko has begun detailed engineering work and is progressing towards delivering the Environmental Impact Assessment study in the first quarter of 2023, while initiating the mine permitting process, with permits planned to be received by the first quarter of 2024.

On December 7, 2022, Osisko Mining shares closed at $3.69. The shares currently trade in a 52-week range of $5.02 and $2.36.

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