Back to News   Alisha Hiyate

Oct 05, 2020


Industry News

All eyes on Windfall


The Canadian Malarctic mine in Quebec was supposed to become the cornerstone asset of Osisko Mining as the company, which discovered and built it, grew into a bigger and better intermediate Canadian gold producer.

Having been forced to sell the last company he built with partners Sean Roosen and Bob Wares, after putting together an irresistable asset, John Burzynski has put some thought into how to defend his current venture, the new Osisko Mining, from a hostile takeover.

“Land mines,” he jokes. “And barbed wire,” Burzynski says, laughing. “I wish!”

Led by Burzynski as president and CEO, Osisko Mining 2.0 is once again in possession of a prized asset – the high-grade Windfall Lake gold project, located 200 km northeast of Val-d’Or, in the Eeyou Istchee James Bay region of Quebec.

And this time, gold is in the midst of setting new highs – making intermediate and senior gold producers even hungrier for ounces to replace their declining reserves.

With its latest resource update, in February, Windfall has grown to 5 million oz. gold in total – comprised of 4.1 million indicated tonnes grading 9.1 g/t gold and 14.5 million inferred tonnes grading 8.4 g/t gold. Building on a 2018 preliminary economic assessment (PEA) for the project, the company is drilling at a furious pace – it hit the million metre mark earlier this year – to prepare an updated and upgraded resource later this year, followed by a feasibility study next summer.

The exploration success thus far, combined with the Osisko team’s past success and the hot gold market mean there are a lot of eyes on Windfall.

“Certainly, there’s a scarcity value, not just nationally but internationally in terms of new gold deposits,” Burzynski says.

But the new Osisko has some protection against potential hostile offers. The current gold rally means there wouldn’t be much appetite among shareholders for an opportunistic bid. (In addition, Osisko Gold Royalties, which owns a 5% NSR royalty on Canadian Malartic and is led by Roosen as CEO and chair, holds 16% of the stock.)

But the main way to protect the company is just to stay the course.

“We’ll just keep driling as quickly as we can to try and stay in front of all those guys,” Burzynski says. “The only certain defence against a hostile takeover is a high share price and a high valuation on your deposit. I think we’ve been able to achieve that by drilling as much and as quickly as we could.”