Orezone Shifts Focus of Bombore Study to Heap Leach Scenario
OTTAWA, ONTARIO -- (Marketwired) -- 06/19/13 -- Orezone Gold Corporation (TSX: ORE) announces that it intends to shift the focus of the Bombore Feasibility Study in order to review and reassess the lower capital cost heap leach (HL) scenario outlined in the August 2011 Preliminary Economic Assessment (PEA). The ongoing feasibility work for an oxide-only Carbon in Leach (CIL) circuit with a capacity of 8 Mt/yr for ten years has included and largely completed the geotechnical and metallurgical studies, tailings design, mine planning and environmental assessment and could be compiled into a finalized prefeasibility or full feasibility document at anytime if warranted. The study work to date indicates that the initial capital required to build the CIL scenario is similar to that outlined in the PEA. Although this could be a very robust project for a producing company, the required financing is not practical for Orezone given the current condition of the capital markets. The heap leach scenario, as per the PEA, is expected to have a substantially lower initial capex and benefit from the significantly larger oxide resource which is now double that used in the PEA.
"There are several undeveloped large-scale oxide-gold projects world-wide that are comparable to Bombore in terms of size, grades and heap leaching kinetics," said Ron Little, CEO for Orezone. "By updating the economics of the heap leach scenario using the reserves, study work and results of the current CIL scenario, we hope to obtain a timely value re-rating in keeping with those other projects." The company plans to update the PEA heap leach scenario as soon as possible and continue towards a full feasibility subject to positive results.
All drill programs have been completed for the season and the company is focusing on core activities related to the feasibility study resulting in lower expenditures.
The Company would also like to draw attention to an announcement made on Friday June 14th, 2013 that it will be deleted from the Junior Gold Miners ETF (GDXJ) Friday June 21, 2013. The Company dropped below the required minimum market capitalization of $75M.
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 4.13 Moz of measured and indicated (125 Mt @ 1.03 g/t) and 1.03 Moz of inferred resources (35 Mt @ 1.00 g/t) with an average depth of drilling to only 120 meters. The Company is completing a Feasibility Study ("FS") at Bombore for a phase one oxide-only scenario in order to become a mid-tier gold producer.
Pascal Marquis, SVP Exploration and Ron Little, CEO are Qualified Persons under National Instrument 43-101 have reviewed the information in this release.
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; similar initial capital requirement (CIL) to the PEA, (HL) substantially lower initial capex, timely value re-rating, updating the PEA for the HL scenario, completing a FS at Bombore, and becoming a mid-tier gold producer.
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 www.sedar.com, 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
rlittle@orezone.com
Orezone Gold Corporation
Pascal Marquis
SVP Exploration
(613) 241-3699 or Toll Free: (888) 673-0663
pmarquis@orezone.com
www.orezone.com