Osisko Mining plans to complete an environmental impact assessment study for Windfall in Q1 2023. Courtesy of Osisko Mining.
Osisko Mining released the findings for the independent feasibility study for its fully owned Windfall gold project on Nov. 28. The Abitibi-based project, located on the Cree First Nation of Waswanipi’s lands, is set to feature an underground mine with dual ramp access and a central processing mill on the mine site.
Highlights from the study, conducted by BBA Inc., include the project producing roughly 306,000 ounces of gold annually, at an average grade of 8.1 grams per tonne. A peak production rate of 374,000 ounces of gold is to be expected during the second year of production. After-tax net present value for the project is currently estimated at $1.2 billion with a 34 per cent internal rate of return.
“We are very pleased to deliver the Windfall feasibility study, outlining the supporting economics indicating Windfall can become a significant and highly profitable new gold mine in Quebec,” said the company’s chief executive officer John Burzynski.
The Windfall gold project is expected to mill 3,400 tonnes per day at an average recovery rate of 93 per cent, and an all-in sustaining cost of $985 per ounce.
Bringing in an anticipated $6.2 billion in gross revenue, this project will open over a thousand new job opportunities during its construction phase, and over 670 permanent positions once operations are running.
The project’s probable mineral reserve estimate indicates 12,183,000 tonnes with 3,159,000 ounces of gold at a grade of 8.06 grams per tonne.
Engineering work for this project has commenced, and as the project advances, the company expects to release its environmental impact assessment study in the first quarter in 2023, which will allow Osisko to begin the mine permitting process.
“As we move to complete the EIA study in Q1 2023 and begin the permitting process, we expect to advance our underground exploration and continue to grow the scale and quality of the deposit,” said Burzynski.
Plans for the financing of Windfall will come in 2023, with a production decision following in the early half of 2024.
