The sun sets at the Windfall camp in Québec, Canada. (Photo: Osisko)
Gold Fields Acquires Osisko Mining
Once completed, the transaction will consolidate Gold Fields’ 50% partnership stake into full ownership and control of the Windfall Project and its entire exploration district. It will also eliminate Gold Fields’ existing obligations of a $219 million deferred cash payment and $55 million exploration obligation, which were part of the May 2023 Windfall JV transaction with Osisko Mining.
Gold Fields CEO Mike Fraser welcomed the deal. “Deposits with the scale and quality of Windfall, with a highly prospective exploration camp on top of that, are extremely rare, let alone in a worldclass jurisdiction like Québec,” he said.
Both companies’ boards of directors have approved and are supportive of the transaction, with Osisko Mining directors recommending that shareholders vote in favor of the transaction. The transaction could be finalized in Q4 2024.
Windfall is among the largest gold deposits in Canada, and a top 10 gold deposit globally by head grade. Full ownership of Windfall enables Gold Fields to streamline decision-making and increase flexibility with respect to the development and subsequent operation of Windfall.
Based on Osisko Mining’s December 2022 feasibility study, Windfall is expected to produce approximately 300,000 ounces per year (oz/y) of gold at an all-in sustaining cost (AISC) of $758/oz. This would position Windfall as one of the lowest cost mines in Gold Fields’ portfolio, with a current projected mine life of 10 years.
Development of Windfall is well advanced. Before the Windfall JV transaction, Osisko Mining had invested more than $583 million on the project. Since then, Gold Fields and Osisko Mining have each spent a further $115 million. As a result, Windfall today includes more than 2 million meters (m) of drilling, a submitted Environmental Impact Assessment (EIA) permitting application in process, studies, significant underground development, and major surface infrastructure.
Underground infrastructure includes 14 km of underground development to 671 m of vertical depth into ore, four main ventilation raises and 57 drill bays, among others. Concurrently, extensive surface civil works have already been undertaken, including a lined waste pad, three lined water-treatment ponds, a water-treatment facility currently under construction, offices, and a temporary 300-person camp.
Environmental permitting for full scale construction of the project is underway, with final approval expected in 2025.