We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| TSXV:CIL | TSX Venture | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0 | - |
Hot Features
Premium
Orezone Gold Corporation (TSX:ORE) is pleased to announce the results of an
independent Preliminary Economic Assessment (the "Study") for its wholly owned
Bombore Gold Project in Burkina Faso, West Africa. The Base Case financial model
yields a robust after tax IRR of 23.9 % to Orezone with a mine plan optimized to
deliver better grade in early years, revenues using a $1250 gold price and
current costs based on operations in the region. The after tax IRR improves to
37.1 % from revenues at a $1,500 gold price, based on the same mine plan.
Orezone expects to complete detailed heap leach ("HL") metallurgical and
geotechnical studies in June, update the social and environmental assessments by
September and be in a position to complete a full feasibility study and apply
for a mining permit before year end.
"The results of the Study are quite compelling and the project benefits from
size, location, low reagent consumption, rapid leaching kinetics, low capital
requirements and low all-in operating costs," said Ron Little, CEO of Orezone.
"Bombore is one of the largest and most advanced undeveloped deposits in the
region that is truly multi-phase. Commencing with a HL operation positions the
Company to move and grow rapidly with a carbon-in-leach ("CIL") expansion if
warranted under better capital market and gold price conditions."
The Study was completed by G Mining Services Inc. of Montreal, Canada ("G
Mining") and included Kappes, Cassiday and Associates, and Golder and Associates
of Reno, Nevada. The NI 43-101 compliant Study was based on the resource
estimate prepared by SRK Consulting ("SRK") of Toronto and reported in Orezone's
press release dated April 29, 2013, which includes 139.9 Mt of M&I resources
grading 1.01 g/t for 4.6 Moz plus 18.4 Mt Inferred resources grading 1.22 g/t
for 0.7 Moz. The HL mineable resource is limited to only the measured and
indicated near-surface saprolite and transition resources (average depth of 45
m) which includes 44.7 Mt grading 0.88 g/t for 1.3 Moz. The sulphide resources,
although extensive, indicate relatively poor heap leach gold recoveries and can
be processed later under a CIL expansion scenario. G Mining did not audit the
SRK NI 43-101 resource.
Summary of Base Case Financials:
The Base Case assumptions include revenues using a gold price of $1,250 and
current prices for fuel, reagents, labor, mining and other current costs from
operations in the region as of Q32013. The financial highlights are as follows:
----------------------------------------------------------------------------
Base Case Financials
Description Heap Leach
----------------------------------------------------------------------------
Mineral Resource used in Mine Plan (ounces) 1,271,567
----------------------------------------------------------------------------
Average Grade (g/t) 0.88
----------------------------------------------------------------------------
Processing Throughput (Mt/yr) 5.5
----------------------------------------------------------------------------
Mine Life (years) 8.1
----------------------------------------------------------------------------
Average Annual Production (ounces) 123,000
----------------------------------------------------------------------------
Gold Production (ounces recovered) 1,008,000
----------------------------------------------------------------------------
Waste to Ore Strip Ratio 1.63
----------------------------------------------------------------------------
Gross Revenue ($M) $1,256.2
----------------------------------------------------------------------------
Direct Cash Cost ($/oz) $627
----------------------------------------------------------------------------
Operating Cost ($/oz) $677
----------------------------------------------------------------------------
Initial Capital ($M) $180.0
----------------------------------------------------------------------------
Sustaining Capital ($M) $53.8
----------------------------------------------------------------------------
Closure Costs ($M) $10.0
----------------------------------------------------------------------------
Orezone (1)
----------------------------------------------------------------------------
NPV after tax (0%) ($M) $246.6
----------------------------------------------------------------------------
NPV after tax (5%) ($M) $158.9
----------------------------------------------------------------------------
IRR after tax 23.9%
----------------------------------------------------------------------------
Government (2)
----------------------------------------------------------------------------
NPV (0%) with taxes ($M) $135.5
----------------------------------------------------------------------------
NPV (5%) with taxes ($M) $102.3
----------------------------------------------------------------------------
(1) Represents Orezone's Burkina Faso subsidiary cash flows net of royalties
and local taxes. The Government of Burkina Faso benefits from its 10% free-
carried shareholding, the gold royalty, corporate tax and withholding taxes.
(2) Government cash flows are underestimated as customs fees and duties on
imports and indirect taxes built into the delivered fuel price have not been
incorporated. All figures in USD.Exchange Rates: XOF : USD = 485
----------------------------------------------------------------------------
This Study constitutes a Preliminary Economic Assessment for NI 43-101 purposes,
is considered preliminary in nature but does not use inferred resources. Mineral
resources that are not mineral reserves have not demonstrated economic
viability.
Mineral Resources used in the Mine Plan
Final pits were designed to account for access ramps and compatible pit slopes,
which then produced the following total diluted mineral resource to be used in
the mine plan:
----------------------------------------------------------------------------
Measured Mineral Resource Indicated Mineral Resource
------------------------------------------------------
Cut-off Tonnes Grade Contained Tonnes Grade Contained
Category g/t Mt g/t Ounces Mt g/t Ounces
----------------------------------------------------------------------------
North:
Laterite/Oxide 0.33 12.70 0.89 365,500 8.35 0.83 222,500
Transitional 0.32 5.37 0.91 157,500 1.08 1.11 38,000
Sub-total 18.08 0.90 523,000 9.43 0.86 260,500
----------------------------------------------------------------------------
South:
Laterite/Oxide 0.32 8.33 0.85 227,000 2.81 0.87 78,000
Transitional 0.31 4.30 0.87 120,500 0.70 1.07 24,000
Sub-total 12.63 0.86 347,500 3.51 0.91 102,500
----------------------------------------------------------------------------
Southeast:
Laterite/Oxide 0.34 0.27 1.14 10,000 0.40 0.94 12,000
Transitional 0.33 0.20 1.47 9,500 0.21 0.99 6,500
Sub-total 0.47 1.28 19,500 0.61 0.96 18,500
----------------------------------------------------------------------------
Combined:
Laterite/Oxide 0.33 21.30 0.88 602,500 11.56 0.84 313,000
Transitional 0.32 9.87 0.91 287,500 1.98 1.08 69,000
----------------------------------------------------------------------------
Total 31.17 0.89 890,000 13.54 0.88 381,500
----------------------------------------------------------------------------
-------------------------------------------------
Measured + Indicated
---------------------------
Cut-off Tonnes Grade Contained
Category g/t Mt g/t Ounces
-------------------------------------------------
North:
Laterite/Oxide 0.33 21.06 0.87 588,000
Transitional 0.32 6.45 0.94 195,500
Sub-total 27.50 0.89 783,500
-------------------------------------------------
South:
Laterite/Oxide 0.32 11.13 0.85 305,500
Transitional 0.31 5.01 0.90 144,500
Sub-total 16.14 0.87 450,100
-------------------------------------------------
Southeast:
Laterite/Oxide 0.34 0.67 1.02 22,000
Transitional 0.33 0.40 1.23 16,000
Sub-total 1.08 1.10 38,000
-------------------------------------------------
Combined:
Laterite/Oxide 0.33 32.86 0.87 915,000
Transitional 0.32 11.86 0.93 356,500
-------------------------------------------------
Total 44.71 0.88 1,271,500
-------------------------------------------------
Note: Some categories may not balance due to rounding
Estimated Annual Gold Production for Base Case
The HL scenario assumes an average mining rate of 15 M tonnes per year and a
rate of ore placement on the leach pad of 5.5 M tonnes per year. Gold production
and operating costs for each year are summarized as follows:
----------------------------------------------------------------------------
Year -1 1 2 3 4 5 6 7 8 9 Total
----------------------------------------------------------------------------
Gold Prod'n (koz) 3 125 128 131 120 121 123 119 119 19 1,008
----------------------------------------------------------------------------
Head Grade (g/t) 0.83 0.94 0.91 0.93 0.85 0.87 0.88 0.85 0.85 0.83 0.88
----------------------------------------------------------------------------
Summary of Operating Costs
----------------------------------------------------------------------------
Heap Leach
----------------------------------------------------------------------------
Total Costs Avg. Cost Avg. Cost
Category $M $/t milled $/oz
----------------------------------------------------------------------------
Mining 276.6 6.25 275
----------------------------------------------------------------------------
Processing 246.3 5.57 245
----------------------------------------------------------------------------
General Services 101.8 2.30 101
----------------------------------------------------------------------------
Transport &
Refining 2.5 0.06 3
----------------------------------------------------------------------------
CSR 3.1 0.07 3
----------------------------------------------------------------------------
Total (C1 Costs) $630.3 M $14.25 /t $627 /oz
----------------------------------------------------------------------------
Royalties $50.3 $1.14 $50
----------------------------------------------------------------------------
Total (C2 Costs) $680.6 M $15.39 /t $677 /oz
----------------------------------------------------------------------------
Initial Project Capital Cost Estimates
Initial capital costs were estimated on the basis of Q42013 quotes on equipment
and databases for similar projects in West Africa and South America adjusted for
inflation.
----------------------------------------------------------------------------
Project Capital Area US$M
----------------------------------------------------------------------------
Infrastructure 11.1
----------------------------------------------------------------------------
Power 5.4
----------------------------------------------------------------------------
Water 4.5
----------------------------------------------------------------------------
Mining and Support Equipment 32.3
----------------------------------------------------------------------------
Process Plant 39.6
----------------------------------------------------------------------------
Indirects 17.3
----------------------------------------------------------------------------
Resettlement 5.6
----------------------------------------------------------------------------
General Services 29.4
----------------------------------------------------------------------------
Pre-production 12.8
----------------------------------------------------------------------------
Contingencies 22.0
----------------------------------------------------------------------------
Total Capital Costs ($M) $180.0 M
----------------------------------------------------------------------------
Total Capital includes a total contingency of $22M based on rates that varied
per item.
Sustaining Capital Cost Estimates
Sustaining capital costs were estimated on the basis of Q42013 quotes on
equipment and databases for similar projects in West Africa and South America
adjusted for inflation. Taxes and freight are included along with contingencies
that are varied per item (20% on leach pads).
----------------------------------------------------------------------------
Project Sustaining Capital Area US$M
----------------------------------------------------------------------------
Mining and G&A 8.6
----------------------------------------------------------------------------
Plant 0.9
----------------------------------------------------------------------------
Leach Pads 31.2
----------------------------------------------------------------------------
Resettlement 5.5
----------------------------------------------------------------------------
Contingencies 7.5
----------------------------------------------------------------------------
Total $53.8 M
----------------------------------------------------------------------------
Project Sensitivities
The project is sensitive to gold price, and to a lesser extent the fuel price,
as demonstrated in the following table:
----------------------------------------------------------------------------
Gold Price (per oz) $1000 $1100 $1250 $1400 $1500
----------------------------------------------------------------------------
To Orezone
----------------------------------------------------------------------------
NPV (0%) After tax ($M) 85.3 151.2 246.6 344.3 399.8
----------------------------------------------------------------------------
NPV (5%) After tax ($M) 27.1 82.1 158.9 236.5 280.4
----------------------------------------------------------------------------
IRR After tax 8.2% 14.9% 23.9% 32.4% 37.1%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
To Gov't Burkina Faso
----------------------------------------------------------------------------
NPV (0%) After tax ($M) 46.2 80.6 135.5 188.2 232.9
----------------------------------------------------------------------------
NPV (5%) After tax ($M) 36.4 60.4 102.3 143.2 178.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Full details of the Preliminary Economic Assessment in the form of a NI 43-101
technical report will be filed on SEDAR within the next 45 days.
Development Timetable
Orezone has completed over 400,000 metres of drilling and much of the full
feasibility level technical studies required for a CIL and HL operation. In
order to finalize a HL full feasibility study by year end additional
metallurgical tests are required including but not limited to column and
compaction tests. Some geotechnical follow-up on the new HL pad site location is
also required. This work is expected to be completed in Q2 2014. Social and
environmental studies will continue in parallel in order to prepare an
application for a mining permit based on the latest project footprint and
design.
Qualified Person
The Preliminary Economic Assessment was prepared by G Mining under the
supervision of Rejean Gourde, Richard Taylor of Kappes, Cassiday and Associates,
Todd Minard of Golder Associates Inc., and Glen Cole of SRK Consulting Inc. whom
are "qualified persons" under the standards set forth in NI 43-101. (All four
are independent of Orezone for purposes of NI 43-101.) Dr. Pascal Marquis,
Senior Vice President Exploration, and Ron Little, President and CEO, are the
Company's designated Qualified Persons for the purposes of the Study. All
parties have reviewed and approved their respective content of this press
release.
Conference Call
Orezone will be hosting a conference call on Wednesday January 22, 2014 at 11:00
am EST where representatives from senior management and G Mining will discuss
the Study and be available to respond to questions from analysts and investors.
Those interested in participating in the conference call should dial in at
1-800-743-4304 (Canada, USA) and an operator will direct participants to the
call.
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 CIL optimized open pit shells that span 11 km, and include 4.6 Moz of
measured and indicated (140 Mt @ 1.01 g/t) and 0.7 Moz of inferred resources (18
Mt @ 1.22 g/t) with an average depth of drilling to only 120 meters. The Company
is continuing with various technical studies in order to be in a position to
complete a full feasibility study and an application for a mining permit before
year end.
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; completing detailed
HL metallurgical and geotechnical studies for Bombore in June 2014, completing
environmental and social studies for Bombore in September 2014, applying for a
mining permit and completing a FS at Bombore by the end of 2014, 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Orezone Gold Corporation
Ron Little
CEO
(613) 241-3699 or Toll Free: (888) 673-0663
rlittle@orezone.com
Orezone Gold Corporation
Pascal Marquis
S.V.P. Exploration
(613) 241-3699 or Toll Free: (888) 673-0663
pmarquis@orezone.com
www.orezone.com
1 Year Chart |
1 Month Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
