Measured and Indicated Mineral Resources up 160% and grade up 27%
OTTAWA, ONTARIO--(Marketwire - Aug. 27, 2012) - Orezone Gold Corporation (TSX:ORE) is pleased to announce that gold mineral resources at its Bomboré Gold Deposit, located in Burkina Faso, West Africa, have substantially increased to:
125 million tonnes of measured and indicated mineral resources at 1.03 g/t for 4.13 million oz,
and 32.1 million tonnes of inferred mineral resources at a grade of 1.00 g/t for 1.03 million oz.
Bomboré is now world class1 and is the largest undeveloped gold deposit in Burkina Faso and possibly in all of West Africa.
Highlights
1 Singer, D.A., 1995, World-class base and precious metal deposits-a quantitative analysis: Economic Geology, v. 90, no.1, p. 88-104
The extensive 2011/12 drill program was successful in demonstrating continuity within previously modeled deposits, expanding the mineralized zones and improving the grade of both the near surface oxide resource and underlying fresh rock resource. An additional 35,000 m of definition drilling was completed during Q2 with results planned to be released in September. This recent drilling will further upgrade and expand the Bomboré gold resources. Given the significant potential to further expand the project's mineral resources, the Company's board of directors has approved up to $10 M of additional infill and expansion drilling that will commence in September and run until June 2013.
"Bomboré is the largest undeveloped gold deposit in Burkina Faso and it remains open at depth and along strike" said Ron Little President and CEO. "The average depth of drilling is only 120 m and 43% of the resources are oxidized. The Company will continue to drill and further expand resources while it completes a Definitive Feasibility Study during the first half of 2013."
This material change to the total mineral resource supports the Company's approach to develop the project as a carbon in leach ("CIL") operation in two phases. The ongoing feasibility study contemplates first building an oxide-only plant with the benefits of lower capital costs, lower operating costs and higher recoveries for this initial phase. A second phase expansion to process the harder sulphide resources could then be financed from project cash flows. Detailed metallurgical studies will be released during Q3 and Q4. A new resource update is planned for Q1 2013.
The mineral resource statement (Table 1) was prepared by SRK Consulting (Canada) Inc. ("SRK") from Toronto. The mineral resources are constrained within 6.2 km² of conceptual open pit shells prepared by G Mining Services Inc. (GMS) from Montreal using parameters established by GMS in June 2012 and taking into account the findings of the ongoing metallurgical study (Table 2). The pit shells are based on a US$1,400 gold price, relevant cost estimates for 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 2.7:1. The majority of the total resource occurs within the top 120 m, where approximately 95% of the drilling was completed to date, but pit shells can reach a depth of 200 m. Resources remain open at depth and for the most part along strike.
"The pit shell optimization parameters approximate current operating costs in Burkina Faso and represent significant increases in the mining, G&A and processing costs as compared to those parameters used in the 2010 resource estimate and 2011 PEA. Even with such increases, we were still able to reach our target of a +5 Moz deposit at a grade of 1.0 g/t," said Pascal Marquis, Senior V.P. Exploration for Orezone. "Most importantly the deposit is scalable and leveraged to the gold price. Any increase in the gold price or drop in costs yields significantly higher contained ounces."
Table 1 - 2012 Mineral Resource Statement* for the Bomboré Deposit, Burkina Faso, West Africa, SRK Consulting (Canada) Inc., August 20, 2012, CIL Processing Scenario
Category | Cut-off | Measured Mineral Resource |
Indicated Mineral Resource |
Inferred Mineral Resource |
||||||
Gold | Tonnage | Grade | Contained Gold | Tonnage | Grade | Contained Gold |
Tonnage | Grade | Contained Gold |
|
g/t | Mt | g/t | koz | Mt | g/t | koz | Mt | g/t | koz | |
South: | ||||||||||
Laterite/Oxide | 0.45 | 4.89 | 0.93 | 146 | 6.32 | 0.94 | 190 | 2.85 | 0.85 | 78 |
Transitional | 0.45 | 3.65 | 0.90 | 105 | 3.55 | 0.96 | 110 | 2.07 | 0.82 | 55 |
Fresh | 0.50 | 10.37 | 1.00 | 333 | 18.25 | 1.06 | 621 | 9.73 | 0.97 | 303 |
Sub-total | 18.91 | 0.96 | 585 | 28.12 | 1.02 | 922 | 14.65 | 0.93 | 436 | |
Southeast: | ||||||||||
Laterite/Oxide | 0.45 | 0.17 | 1.32 | 7 | 0.40 | 1.19 | 15 | 0.16 | 0.77 | 4 |
Transitional | 0.45 | 0.14 | 1.68 | 8 | 0.18 | 1.16 | 7 | 0.16 | 0.64 | 3 |
Fresh | 0.50 | 1.50 | 1.56 | 75 | 0.64 | 1.50 | 31 | 0.29 | 0.97 | 9 |
Sub-total | 1.81 | 1.54 | 90 | 1.22 | 1.35 | 53 | 0.61 | 0.83 | 16 | |
North: | ||||||||||
Laterite/Oxide | 0.45 | 11.24 | 0.92 | 333 | 15.10 | 0.91 | 441 | 3.46 | 0.70 | 78 |
Transitional | 0.45 | 7.39 | 0.93 | 222 | 5.31 | 1.00 | 171 | 1.57 | 0.74 | 37 |
Fresh | 0.50 | 19.29 | 1.03 | 638 | 16.60 | 1.27 | 676 | 11.85 | 1.23 | 467 |
Sub-total | 37.92 | 0.98 | 1,193 | 37.02 | 1.08 | 1,288 | 16.87 | 1.07 | 581 | |
Combined: | ||||||||||
Laterite/Oxide | 0.45 | 16.29 | 0.93 | 487 | 21.82 | 0.92 | 647 | 6.47 | 0.77 | 160 |
Transitional | 0.45 | 11.18 | 0.93 | 335 | 9.04 | 0.99 | 287 | 3.80 | 0.78 | 95 |
Sub-total | 0.45 | 27.47 | 0.94 | 822 | 30.87 | 0.94 | 934 | 10.27 | 0.94 | 255 |
Combined: | ||||||||||
Fresh | 0.50 | 31.17 | 1.04 | 1,046 | 35.49 | 1.16 | 1,328 | 21.86 | 1.11 | 779 |
Total | 58.64 | 0.99 | 1,868 | 66.36 | 1.06 | 2,262 | 32.13 | 1.00 | 1,034 | |
Total M+I | 125.00 | 1.03 | 4,131 |
* Mineral resources are not mineral reserves and do not have a demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates. The cut-off grades are based on a gold price of US$1,400 per ounce and metallurgical recovery of 94 percent for laterite and oxide, 92 percent for transitional material and 82 percent for fresh material. Reported within conceptual open pit shells optimized considering a carbon in leach process option. |
Table 2 - 2012 Optimization Parameters used by GMS vs. 2010 Optimization Parameters used by SRK
Category | 2012 | 2010 | Category | 2012 | 2010 | |
Gold Price | $1,400 | $1,025 | ||||
NSR | $70 | $41 | ||||
Lower Cut-off | g/t | g/t | Mining Costs | $ | $ | |
Oxide | 0.45 | 0.30 | Oxide | 1.90 | 1.10 | |
Transition | 0.45 | 0.35 | Transition | 2.35 | 1.35 | |
Fresh | 0.50 | 0.50 | Fresh | 2.44 | 1.65 | |
Process Recovery | % | % | Processing Costs | $ | $ | |
Oxide | 94 | 93 | Oxide | 7.21 | 6.67 | |
Transition | 92 | 92 | Transition | 9.76 | 8.52 | |
Fresh | 82 | 78 | Fresh | 12.66 | 10.36 | |
Overall Pit Slopes | Degrees | Degrees | G&A | $ | $ | |
Oxide | 35 | 37 | Oxide | 3.84 | 1.55 | |
Transition | 40 | 42 | Transition | 3.84 | 1.67 | |
Fresh | 45 | 50 | Fresh | 3.84 | 1.85 |
Table 3 - 2010 Mineral Resource Statement* for the Bomboré deposit, Burkina Faso, West Africa, SRK Consulting (Canada) Inc., October 15, 2010, CIL Processing Scenario
Indicated Mineral Resource | Inferred Mineral Resource | ||||||
Cut-off (g/t) |
Weathering Profile |
Tonnage (Mt) |
Grade (g/t) |
Gold (Moz) |
Tonnage (Mt) |
Grade (g/t) | Gold (Moz) |
0.30 | Oxide | 34.0 | 0.67 | 0.73 | 25.0 | 0.59 | 0.48 |
0.35 | Transition | 11.2 | 0.84 | 0.30 | 5.4 | 0.88 | 0.15 |
0.50 | Fresh | 15.7 | 1.10 | 0.55 | 30.3 | 1.28 | 1.24 |
TOTAL | 60.9 | 0.81 | 1.59 | 60.6 | 0.96 | 1.87 |
* Mineral Resources are not mineral reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates. The cut-off grades are based on a gold price of US$1,025 per ounce with CIL processing recoveries of 93% for oxide, 92% for transitional and 78% for fresh material. Indicated and Inferred Mineral Resources are all reported within conceptual optimized open pit shells. Unlike 2008, those resource blocks that occur outside the pits shells are not included in this resource estimate. Mt= million metric tonnes. Moz= million troy ounces; g/t= grams gold per tonne. |
Several factors account for the difference between the 2012 and 2010 mineral resource estimates as follows:
Table 4 - 2012 Mineral Resource Sensitivity to Gold Price, CIL Processing Scenario
Measured and Indicated | Inferred | |||||
Gold Price US$/oz |
Ore Tonnage (Mt) |
Au Metal (Moz) |
Au Grade (g/t) |
Ore Tonnage (Mt) |
Au Metal (Moz) |
Au Grade (g/t) |
1100 | 78.5 | 2.65 | 1.05 | 20.2 | 0.66 | 1.01 |
1200 | 97.3 | 3.05 | 0.98 | 26.0 | 0.79 | 0.95 |
1300 | 112.0 | 3.49 | 0.91 | 41.5 | 1.17 | 0.88 |
1400 | 142.0 | 3.88 | 0.85 | 56.5 | 1.50 | 0.82 |
1500 | 167.9 | 4.31 | 0.80 | 74.6 | 1.86 | 0.78 |
1600 | 193.6 | 4.70 | 0.75 | 99.3 | 2.36 | 0.74 |
1700 | 218.7 | 5.05 | 0.72 | 129.9 | 2.95 | 0.71 |
Resources are from Whittle runs including 5% dilution and 5% mining losses. |
Drilling on the Bomboré 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., 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 Bomboré, the largest undeveloped gold deposit in the country that 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 4.13 Moz measured and indicated (125 Mt @ 1.03 g/t) and 1.03 Moz inferred resources (35 Mt @ 1.00 g/t) with an average drill depth of only 120 m. The Company is working to complete a definitive feasibility study in 2013 and become 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" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements in this release include statements regarding, among others, capital and operating cost estimates; gold production for the project; completion of a Definitive Feasibility Study in 2013; completion of a metallurgical test program in Q3/Q4 2012; completion of an additional resource update in Q1 2013; potential to significantly expand resources; commencement of production at the Bomboré Project in 2015; and generating sufficient cash flows from first phase of production on the Bomboré project to finance expansion.
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 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, 2011 and other continuous disclosure documents filed by Orezone since January 1, 2012 available at www.sedar.com, for this detailed information, which is subject to the qualifications and notes set forth therein.
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