OTTAWA, ONTARIO — (Marketwired) — 04/29/13 — Orezone Gold Corporation (TSX: ORE) is pleased to announce that gold mineral resources at its Bombore Gold Deposit, located in Burkina Faso, West Africa, have increased to:
140 million tonnes of measured and indicated mineral resources at 1.01 g/t for 4.56 million oz, and
18 million tonnes of inferred mineral resources at a grade of 1.22 g/t for 0.72 million oz.
Bombore is one of the largest undeveloped gold deposits in West Africa with 2 million oz of M&I oxide resources near surface.
Highlights
„Bombore is one the largest undeveloped gold deposits in West Africa and it remains open at depth and along strike“ said Ron Little President and CEO. „Most importantly, approximately half of the resource is oxidized and occurs in the top 50 m from surface. As demonstrated in table 4, the oxidized resource remains robust even at lower gold prices and represents the best opportunity for the Company to get into production with the lowest possible capital investment and operating costs. Plans are to complete the full Feasibility Study (FS) during the second half of 2013.“
With the resource update complete, the ongoing FS can now focus on completing the mine design, site layout and the environmental impact study which will enable the permitting process to begin. G Mining Services Inc. („GMS“, Montreal, Canada) is working on the mine planning/sequencing, on a pit by pit basis, with the most conservative mine sequence using a weighted average gold price of $1225. The FS contemplates building a carbon in leach („CIL“) operation in two phases. The first phase is an oxide-only plant with the benefits of lower capital costs, lower operating costs and higher recoveries. A second phase expansion to process the harder sulphide resources could be financed from project cash flows at anytime in the future.
The mineral resource statement (Table 1) was prepared by SRK Consulting (Toronto, Canada) Inc. („SRK“). The mineral resources are constrained within conceptual open pit shells prepared by GMS using parameters established by GMS in January 2013 and taking into account the findings of the ongoing technical studies (Table 3). The pit shells are based on a US$1,400 gold price, relevant cost estimates for current mining, processing and G&A of comparable Burkina Faso gold mines, and detailed metallurgical results to estimate recoveries for a CIL plant scenario. The resources span over 11 km long and up to 1 km wide with an estimated stripping ratio of 2:1. The majority of the total resource occurs within the top 120m, where approximately 90% of the drilling was completed to date, but pit shells can reach a depth of 200m. Resources remain open at depth and for the most part along strike.
Notes:
(1,2,3) Average slopes were used for the 2013 Whittle optimization but Golder-s detailed recommendations will be used for the pit design; between 36 and 55 degrees for saprolite (where the height of the saprolite wall is less than 80 meters), between 40 and 45 degrees for transition, and between 45 and 55 degrees for sulphide/fresh.
(4,5,6) For the 2013 Whittle optimization, this table shows the metallurgical recovery expected around the average in-situ grade, and is including fine carbon and solution losses to tailings of 0.017 g/t.
(7) 2013 Whittle optimization costs include $0.10/t in re-handling costs.
(8) 2013 Whittle optimization costs include $0.60/t of rehabilitation and sustaining capital provisions. Ore haulage costs will be refined for each pit in the feasibility study.
Several factors account for the difference between the 2013 and 2012 mineral resource estimates as follows:
Drilling on the Bombore property, geological modelling and the mineral resource estimates were supervised by Pascal Marquis, Ph.D., P. Geo., Senior Vice President and Qualified Person for Orezone, as defined by National Instrument 43-101, and who has reviewed and approved the technical information in this release. The mineral resource estimate was prepared by Dorota El-Rassi, P.Eng. and Glen Cole, P.Geo. of SRK; they are Independent Qualified Persons as defined by National Instrument 43-101. The optimization parameters and the Whittle pit optimization were established by Louis-Pierre Gignac, P.Eng. and CFA of GMS; he is an independent Qualified Person as defined by National Instrument 43-101. Orezone holds a 100% operating interest in the project while the government of Burkina Faso will receive a 5% net smelter royalty and a 10% non-participating (carried) interest should the project go into production.
Mineral Resource Estimate Parameters and Methodology
About Orezone Gold Corporation
Orezone is a Canadian company with a gold discovery track record of +12 Moz and recent mine development experience in Burkina Faso, West Africa. The company owns a 100% interest in Bombore which is situated 85 km east of the capital city, adjacent to an international highway. Mineral resources are constrained within optimized open pit shells that span 11 km, and include 4.6 Moz of measured and indicated (140 Mt @ 1.0 g/t) and 0.7 Moz of inferred resources (18 Mt @ 1.2 g/t) with an average depth of drilling to only 120 meters. The Company is working to further expand the resources at Bombore while it completes a FS for a phase one oxide-only CIL plant in 2H 2013 and becomes a mid-tier gold producer by 2015.
FORWARD-LOOKING STATEMENTS AND FORWARD-LOOKING INFORMATION: This news release contains certain „forward-looking statements“ within the meaning of applicable Canadian securities laws. Forward-looking statements and forward-looking information are frequently characterized by words such as „plan“, „expect“, „project“, „intend“, „believe“, „anticipate“, „estimate“, „potential“, „possible“ and other similar words, or statements that certain events or conditions „may“, „will“, „could“, or „should“ occur. Forward-looking statements in this release include statements regarding, among others; ground water; infrastructure design; mine water management or waste management; scrubber and grinding circuit design; improvements in the project economics; optimization and trade-off studies; capital and operating cost estimates; gold production for the project; completion of technical reports in Q2 2013; completion of a FS in 2H 2013; commencement of production at the Bombore Project in 2015.
FORWARD-LOOKING STATEMENTS are based on certain assumptions, the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological and geotechnical data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, the ability of contracted parties (including laboratories and drill companies to provide services as contracted); uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management-s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements. Comparisons between any resource model or estimates with the subsequent drill results are preliminary in nature and should not be relied upon as potential qualified changes to any future resource updates or estimates.
Readers are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Readers should refer to the annual information form of Orezone for the year ended December 31, 2012 and other continuous disclosure documents filed by Orezone since January 1, 2013 available at , for this detailed information, which is subject to the qualifications and notes set forth therein.
Contacts: Orezone Gold Corporation Ron Little CEO (613) 241-3699 or Toll Free: (888) 673-0663
Orezone Gold Corporation Pascal Marquis V.P. Exploration (613) 241-3699 or Toll Free: (888) 673-0663
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