He's currently the Founder, Executive Chairman, and CEO of Osisko Development Corp., which he'll talk about this afternoon. He's received many accolades over his longstanding career, including an award from Mines and Money Americas for Best CEO, Top 20 Most Influential Individuals, and so on.
Hey, Don.
Thank you.
Don, thanks very much.
You're welcome.
I'll grab this one.
Over to you, Sean. Thanks.
All right. Thank you everybody for making the time for us today. In traditional Osisko fashion, a bit about myself and the background, Don did a good job summing it up. I am the Founder of Osisko Mining 1, Founder of Osisko Gold Royalties, and currently CEO and Chairman of Osisko Development. We built about CAD 17 billion worth of companies under the Osisko brand and currently have a sister company called Osisko Metals, which is doing the Gaspé Copper Project. I know you guys like these cautionary statements, but I'm going to skip through it for you. In terms of what we're doing here, the advanced program that we're working on is focused on the Cariboo Gold Project and our Tintic Project in Utah. Currently, the main focus is on the Cariboo Gold Project, and we'll talk a little bit about Tintic at the end.
We've been to this movie before, so we have a large project located in the central British Columbia, called the Cariboo Gold Project. Where we see it right now is becoming one of the bigger development projects in the space, with phase one being our 200,000-ounce a year mine with a 2 million oz reserve on it, with another 3.5 million oz of measured, indicated, and inferred, and that's just down to a depth of 350 m. We've raised a bunch of money since we've published our feasibility study in spring of 2025. We've done about $885 million of available financing since we did this feasibility update. The numbers are fresh. This feasibility study was completed within the last 12 months.
$203 million of equity, an initial draw of $100 million from an Appian facility, and we have an additional $350 million that we're working on with Appian that we probably see sometime early Q3 as we complete the final investment decision, FID. As you can see, that would bring us to about $885 million or about CAD 1.2 billion. The CapEx for the project is about $653 million , so we have some excess financing in place that we're using for drilling on the future deposits that are around and below us in this project. We've been very active on that front, and the markets have been very accommodating. We've had very good access to capital. We received our full permitting process in November of 2024.
We're fully permitted, fully financed, in construction in British Columbia with a power allocation from BC Hydro, which is green power from Site C at CAD 0.066 a kWh. We also own our milling equipment, which is on our property in Prince George. We're in construction underground for about 2.2 km as well as some of the infrastructure that we'll see later on in the deck. The way that we think about this company is in comparison to some of the companies that are mentioned on this slide. If you want to understand how we think about things tactically and how we think the most catalyst that we can obtain for shareholders in the short- to near-term, as well as the mid- and long-term, this is the slide that does it. Sorry? Oh.
In terms of what we're trying to achieve here, the G Mining is a good model for us. They're sitting at about a CAD 17 billion market cap as we sit today. They have one mine in Brazil in production. They have a mine in Guyana that is under construction, and they're in the acquisition mode for G2. We can achieve all the things that G Mining is doing right now on the footprint that we have and within the permit that we have. We have to execute, and we'll be in production with phase one of this project in the beginning of 2028. We're not that far out, and we've got the money in the bank. We've got the permits in hand.
Some of the other things we looked at in this slide, we see the market cap on the vertical scale, and we see the annual ounces of production on the horizontal scale. The importance of that is that not all ounces are created equal. 100,000 oz of production, for example, at Wesdome, gets about a CAD 2 billion enterprise market cap value on the scale. 100,000 oz of production under Alamos, which is a 600,000 oz a year producer, gets CAD 4.4 billion, so more than a double from where Wesdome's valuation is. If we look at the G Mining, they get about a CAD 6 billion valuation for the same 100,000 oz that's in production today because the market is giving them credit for future production. We think that for us, the truth lies somewhere in between. The first milestone for us is to get to where Wesdome is.
With phase one, we would get to 200,000 oz a year production with eyes on our second project. Sorry, can you guys correct the screen, please?
Okay. Thank you. Where we are on this slide is if you look at the 200,000 oz a year, you can see there's quite a cluster of companies in there. If you go to 400,000 oz a year, which is where we believe we get to by developing our 2 million oz of reserves and about 60% of our measured and indicated and inferred ounces, that would be the target. You see that Skeena's in there. You see Lundin Gold, and then Alamos is over at the 500,000 oz-600,000 oz a year bracket. Alamos is at about a CAD 27 billion market cap. Lundin Gold, at 400,000 oz a year, is at CAD 27 billion. Artemis is sitting at around CAD 8 billion for about 400,000 oz a year. We want to get into that dotted zone.
That's our target in the near term, and we're going to tell you how we do that now. Sorry, can you go to next slide? It's not working. Thank you. This project is located in northern B.C., outside of the town of Quesnel, which has a couple of mines in the area. We have Quesnel, we have Prince George, we have Wells. Within that area, we have Taseko's Gibraltar Mine, and we have Imperial's Mount Polley Mine as well. This is a mining area that's been a mining camp since 1859. What we have in our existing spot is 2 million oz in the reserve category, as you can see in probable reserves. We have 1.61 million oz in measured and indicated. We have another 1.864 million oz in the inferred category. If you add all that up, it's 5.6 million oz. A feasibility study has been completed.
As we said, the numbers on the feasibility study are here, 190,000 oz a year over 10 years, starting at 200,000 oz a year for the first five years, 10-year mine life, 24-month mine build, pushing us into first half of 2028 for production. An AISC of CAD 1,157 an ounce, which as of today would leave us about a $3,600 an ounce margin. If you look at the 200,000 oz a year, it would be somewhere in the neighborhood of about CAD 1 billion or about $650 million in profit per year at the current gold price of CAD 4,700. If we look at the NPV of the project at CAD 4,500 gold, we're at CAD 3.25 billion, and we're at 51.9% IRR. Again, this is just on the reserve base. It doesn't include the other 3.6 million oz.
Initial CapEx of $652 million or CAD 881 million, so relatively low cost. The reason for that is this is a brownfield site, and we also own significant amount of the processing equipment already. We've spent about $100 million on the project for infrastructure adjustments that are already paid for. A little of that infrastructure that we've done, so things that we needed to do pre-construction to set the stage, was the waste rock stockpile that you see in the top left, the water treatment facility, which handles all our contact water before we release it. The bottom left is a sediment control pond, and the middle slide is the 270-man camp that's going to be expanded to 370 men. On the right is inside of our commissioning of the water treatment plant. A lot of that work is underway.
Originally, I talked about the first two mines. The pink mine is the reserves. That's the 2 million oz that we have right now. As you can see, there's a lot of blue ounces around that. The blue ounces are the measured and indicated and inferred. The immediate catalyst for shareholders is the conversion of those ounces into the mine plan. If we look at about a 60% conversion rate on the blue ounces from 3.6 million oz, we would expect to see a conversion of roughly another 2 million oz to the reserve category, bringing it to 4 million. That's going to happen in the next 24 months as we open up the underground, we complete that infill drilling from the underground as we get back into it. Now, this slide shows a longer section of the same zone.
This is 4.4 km of strike length out of a total of 83 km of known mineralization in this system. The red represents the measured and indicated, the inferred, and the reserves, so it's about 5.6 million oz in the red. That red has got conversion drilling on the go right now. There's three drills underground now, and we'll go to five or six as we get more underground opened up. The near-term catalyst that we'll see for shareholders in the next three to six months starting up is the infill drilling from the gray zone down below us as we add depth. In this first 350 m, the red zone, we've averaged about 1.5 million oz for each 100 m vertically we've gone down. If you extend that down to 1,000 m, you have a chance at 15 million oz.
Now, we haven't drilled that yet, so that's a very forward-looking statement, but we are drilling it now. You can see historically in some of the grays, the old underground miners went down below where we are right now. We know that the deposit goes down to at least 1,000 m. We think it can go significantly deeper. It's an orogenic system. We think that it probably goes down to 1,500 m-2,000 m. If you were to extend it down to 2,000 m, the numbers get a bit crazy, but this is a very big system, and it's the reason that I'm still not sitting on my dock, driving my boats around, because we're pretty passionate about these big projects. This is a chance for another Canadian Malartic-style win for us.
We think that this project's going to generate probably four or five mines over the course of the development as we get further into it. For those of you who know us, we operate on what's called the SUD system, which stands for Shut Up and Drill Stupid. We've been successful with that tactic, and we're at 11 drills right now. We'll probably have 20+ drills here going in Q3 as we get further into this. As you see the inset on the right-hand corner, this deposit is a little bit different than what we see typically in Canadian gold deposit. This is a sediment-hosted deposit, and it's opened up like an accordion or a book on the anticlinal structures, and we get these vein corridors.
We've documented 481 of them economically so far, and they run about 500 m long on average, perpendicular to the long strike. Now, we've drilled down to 350, we've drilled down to 1,000 test work, but we are in the process right now of documenting the ounces from 350 down to 1,000 m vertically. Once we're finished with that, we'll push down to probably 1,500 m. There's quite a bit of drill information coming at you this year. We believe that one of the big resets in this market and getting closer to that G Mining expectation is we need to demonstrate that these at-depth ounces are real. The other aspect of these at-depth ounces that's very important is that they're permitted. Everything within that 4.4 km long strike length is covered by the mining permit.
We have a 4,900 ton a day permit right now, and we'll be looking to expand that to 7,500, 10,000, and on up to 15,000 tons a day as we document more of it vertically. We started out at 4,900 tons a day because in Canada, that kept us out of a federal EA process, and we were able to achieve full permitting here in four years, 10 months, which in the industry is pretty good. We've had good support from the B.C. government on permitting, good support from our First Nations partners, and we were able to get a fairly expedited process for this project. That's taking advantage of that permit area.
To put this in context and compare it to something that you probably know something about, we've shown you the Young-Davidson mine owned by Alamos here, as well as the Goldex mine and the LaRonde mine, both owned by Agnico. Our grade is at 3.62 g. The Young-Davidson grade is at 2 g . Goldex is one of the lower grade bulk tonnage underground mines in the world at 1.55 g. LaRonde is exactly the same grade as us at 3.62 g. If you were to look at our strike length of 4.4 km, you could actually put the Young-Davidson mine in here four times. They're mining at 8,000 tons a day and producing about 175,000 oz a year, but their AISC is $1,300 an ounce at about 60% of the grade of what we have.
We have higher grade, much bigger strike length, which allows us to look at bigger mining techniques because we have more room to move around in. If you look at Goldex, they're at about CAD 1,300 an ounce, highly mechanized mining method, but 1.5 g, less than half the grade of what we're seeing here at Cariboo. LaRonde is right on the same grade as we are, but they're at 3,300 tons a day. They've got a high-grade pod down at the bottom that's almost 3,000 m down. They're at about 1.5 km strike length and their lower grade component on the top. All that to say that with 4.4 km of strike length, you have quite an advantage.
What this means in the big picture is if you look at the Cariboo Gold Project, it's the four km off to the left here, and then you have another 10 km of information that we have gathered. We've done some drillings on Barkerville Mountain, Williams Creek, but right now we're focused on the Proserpine Mountain area, which is 6 km long. It's almost 50% longer strike length than the Cariboo Gold Project. Cariboo Project's about 500 m wide into the screen, and this one's about a kilometer wide, so it's 6 km by 1 km wide as opposed to four km by 500 m wide. We don't know how deep it goes, but we know that the old-timers have mined down here to about 800 m, so this is a pretty good project. It's also up on top of the mountain.
It's above the aquifer, so it has a chance to be an open pit. We're going to document this year and next year for you on that, and that could be a very significant game changer if the grade from what we see in the vein corridors over here holds up over here. We're talking an order of magnitude to increase the strike length. This is a very big project with a lot of upside potential. We raised $143 million in January. We have $100 million dedicated to drilling for 2026 and the first quarter of 2027.
While the mine construction is ongoing and fully funded, you'll be seeing the documentation of these other ounces coming to play, which we think is going to be pretty important as this project scales up and we show you that this can go from a 200,000 oz-400,000 oz and potentially significantly more ounces than that as we get further into it. The overall footprint of this project, we talked about 4.4 km and 16 km strike length. We have 83 km of known mineralization here. This mine started in 1859, and there's over 100 mines in this historic belt. It's the reason that British Columbia is part of the Canadian Confederation. There was 4,000 people here in the latter half of the 1800s from 1860-1920. It was the largest city north of San Francisco, and it's the reason that a lot of BC was opened up.
It paid for a lot of things. This was the big gold rush after the California 49ers and before the Klondike, which came in the early 1900s, 1903. This has been an active camp, and we have all that history to work with. There's over 150 active placer deposits still in the area with people still out alluvial mining every summer. If you look at the footprint of this project, we have about 1,500 sq km of permitted mineral licenses in the area. We compared that to the Val d'Or Camp, which is about a 1,400 sq km area. It's a camp we know well, obviously, since we found and built Canadian Malartic, which is Canada's largest gold mine right now, or second largest, depending on who's telling the story.
That's the size and scale that we're dealing with here, and it's the reason that we're so excited about it. This is a project that could be a top 10 project in the gold space worldwide when we're done with it. On that note, I'm going to stop there. We'll talk about Tintic if anybody wants to catch up with us later. That'll give us about a minute and a half for some questions.
Great. As Sean said, we do have a little bit of time for a question. Sean, looking at Proserpine, you got this potentially meaningful organic upside at Proserpine. Can you give us a sense of the timing and potential magnitude that drilling might unveil at that target?
Good question, Don, because I think that's the most immediate. It's a new discovery. It's 6 km long. It's up on top of the hill, as you can see here. It's above the aquifer and has the chance to be an open pit. If we look at it from a Canadian Malartic-style deposit, this is something that could be comparable. Malartic was about four and a half kilometers long and about 800 m wide, and it was a deposit. When we did the 13.8 million oz resource there, it was 1.03 g. We think that depending on where we push the cutoff to, obviously cutoffs with this gold price are probably much lower than they were when we were at CAD 750 when we were building that one. This could be a significant deposit.
Speculating on the number of ounces, if the grade was to hold up, we've definitely got a shot at 5 million oz in the shallow, and the overall pit could be significantly more than that. It's first pass. We have the historic data from the old mines and the underground access, but that's kind of where we're at right now, and there's four drills out there right now. We're adding a rig every two weeks right now. We'll be at six-10 rigs out there by the end of Q3.
Okay. Excellent. Well, thank you very much, Sean. That certainly checks a lot of boxes. You got the exploration upside, but there's also the theme of flight to jurisdictional quality and fully permitted, fully funded.
Yeah. Thanks, everybody, and if there's any extra questions, we're around today and tomorrow. Thank you.