MONTREAL - Osisko Development Corp. (NYSE: ODV, TSXV: ODV) has released an updated mineral resource estimate for the Trixie deposit within the Tintic Project in Utah. The revised estimate, effective March 14, 2024, shows a decrease in measured and indicated gold resources by 29% and inferred resources by 79% compared to the previous year's estimate.
The 2024 Trixie mineral resource estimate (MRE) includes 105,437 ounces of gold and 237,868 ounces of silver in measured resources, with indicated resources holding 44,811 ounces of gold and 240,211 ounces of silver. Inferred resources contain 50,569 ounces of gold and 314,678 ounces of silver. These figures result from an extensive exploration program comprising 1,674 chip samples and 7,385 meters of drilling in 122 holes.
Chris Lodder, President of Osisko Development, stated that the updated MRE reflects a better understanding of the main mineralized structures and the structural controls of the deposit, as well as realistic mining parameters. He also highlighted the significant precious metal potential at depth and around historic high-grade gold mines in the West Tintic District.
The 2024 Trixie MRE includes six zones within the Trixie area, with gold mineralization associated with high sulphidation epithermal mineralization. The T2 Zone remains the highest-grade structure, with 4,637 ounces of gold recovered in 2023 from mineralized material with an overall feed grade of 35.61 grams per tonne (g/t) gold.
Osisko Development's exploration efforts continue to target additional high-sulphidation epithermal gold and silver along the 4 km strike length of historical mines. Additionally, the company is actively exploring copper-gold-molybdenum porphyry potential at the site.
The updated MRE is based on a cut-off grade of 4.32 g/t gold, calculated using a gold price of US$1,750/oz and incorporating silver grades with a silver price of US$23/oz. The estimate is reported for an underground mining scenario and assumes a longhole-stoping mining method.
This news article is based on a press release statement from Osisko Development Corp.
InvestingPro Insights
Osisko Development Corp. (ODV) faces challenges as highlighted by the recent update on the Trixie deposit, with significant reductions in both measured and indicated gold resources. Investors looking closely at the company's financial health and market performance will find the following data from InvestingPro particularly relevant:
- The company's Market Cap stands at a modest 208.37M USD, reflecting the scale of Osisko Development within the industry.
- ODV is trading at a low Price / Book multiple of 0.39, suggesting that the company's stock might be undervalued relative to its assets.
- With a negative P/E Ratio of -2.46, the company is currently not profitable, a concern that is underscored by the fact that analysts do not anticipate the company will be profitable this year.
Despite the setbacks in resource estimates, InvestingPro Tips indicate that analysts expect sales growth in the current year for ODV. This could signal potential for future revenue increases, which can be critical for the company's long-term success. Moreover, ODV has been able to generate a significant return over the last week, with a 6.49% price total return, and even stronger performance over the last month at 9.82%.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights and metrics. Currently, there are 9 more InvestingPro Tips available for ODV, which can be accessed by visiting InvestingPro. To deepen your investment research on Osisko Development, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable information that could shape your investment decisions.
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