OREZONE ANNOUNCES BOMBORÉ PHASE II EXPANSION STUDY RESULTS Phase II average annual gold production of 209,000oz at AISC of $1,121/oz, with LOM After-tax NPV5% of US$635.9M (All reported figures are in US dollars and are on a 100% project basis
OREZONE GOLD CORPORATION
450-505 Burrard Street
Vancouver, BC, V7X 1M3
T: 778-945-8977
OREZONE ANNOUNCES BOMBORÉ PHASE II EXPANSION STUDY RESULTS
Phase II average annual gold production of 209,000oz at AISC of $1,121/oz, with LOM After-tax NPV5% of US$635.9M
(All reported figures are in US dollars and are on a 100% project basis unless otherwise stated)
October 11, 2023 – Vancouver, BC - Orezone Gold Corporation (TSX: ORE, OTCQX: ORZCF) (“Orezone” or
“Company”) is pleased to report the results of its Phase II Expansion and Updated Life-of-Mine Feasibility Study
(“2023 Study”) for its 90%-owned Bomboré Gold Mine, located in central Burkina Faso.
Bomboré achieved commercial production of its Phase I oxide p lant in December 2022 , which has operated
successfully above nameplate to produce 76,783oz of gold at an All-In Sustaining Cost1 (“AISC”) of $1,006/oz sold
in H1-2023. The planned expansion at Bomboré from a processing rate of 5.9 million tonnes per annum (“Mtpa”)
to 10.3Mtpa will deliver a significant increase in gold production at a low incremental capital cost. Construction
of the new standalone 4.4Mtpa hard rock processing facility will enable Bomboré to produce an average of
209,000oz/yr at an AISC of $1,121/oz. First gold from the hard rock plant is scheduled for Q3-2025.
Bomboré 2023 Study Highlights (at Base Case gold price of $1,750/oz)
• After-tax NPV5% of $635.9M with rapid payback
• Mine-life of 11.3 years with gold production totalling 2.11Moz
• Conventional open pit mining at a low strip ratio of less than 2:1
• Phase II hard rock plant capital costs of $167.5M
• Average annual gold production of 231,000oz in the first three full years after expansion at an AISC of
$1,081/oz
Patrick Downey, President and CEO, commented : “The Bomboré 2023 Expansion and Updated Life-of-Mine
feasibility study marks a major milestone in the growth of Orezone. The updated study highlights a material step-
change in the mine’s future production profile, while maintaining a low overall cost structure. Furthermore, based
on ongoing drilling results, we see excellent opportunities to continue to add higher grade resources and reserves
that should enhance the production profile in future years.
With the continued support of our senior lender, Coris Bank International , the Company expects to finance the
construction of the hard rock plant using a combination of debt and free cash flow from current operations.
Following the commissioning of the oxide plant in December 2022, on-time and under budget, and providing strong
operational results through its first operating year, Orezone remains well positioned to deliver th is next stage of
brownfield growth at Bomboré . The parallel hard rock plant will be constructed at a modest capital cost as
compared to a greenfield project as it will utilize many of the existing systems and infrastructure already in place
including connection to the national electrical grid by the end of 2023.
1 AISC includes operating costs, royalties , sustaining capital, and closure costs (net of salvage values) but excludes the costs
of the Phase II hard rock plant expansion, growth capital, and corporate G&A.
- 2 -
Mining will continue as conventional open pit with a low overall strip ratio . We wi ll use our operational and
management experience in working with local mining contractors over the past two years to further enhance
optimization in this area.
We now have firm bids and delivery times for several long lead pieces of equipment including the SAG mill and we
intend to conclude evaluation and place orders for this equipment in Q4 -2023. Full constru ction is expected to
commence in Q1-2024 subject to financing and board approval.
The Phase II Expansion will create several hundred new employment opportunities during construction on top of
the 2,400 direct local jobs that currently support existing operations. Once complete, the expansion will also create
further long-term local employment and promote further investment in community programs and livelihood
restoration projects that aim to improve the lives of local residents while providing a larger source of tax and
royalty revenue for Burkina Faso.”
Idrissa Nassa, CEO of Coris Bank International, commented: “We congratulate Orezone on the release of a robust
expansion study, and look forward to maintaining our close partnership with the Company and supporting the next
stage of growth at Bomboré.”
Lycopodium Minerals Canada Ltd. ("Lycopodium") of Toronto, Canada was the lead 2023 Study consultant
(Process Engineering and Overall Study Manager), supported by P&E Mining Consultants Inc. (Mineral Resource
Estimates), Knight Piésold Pty Limited of Perth, Australia (Tailings and Water Management), AMC Mining
Consultants (Canada) Ltd. ("AMC") of Vancouver, Canada (Mineral Reserves and Mining), and Africa Label Group
Inc. (Social & Environmental).
CONFERENCE CALL AND WEBCAST
The Company will host a conference call and webcast to further discuss the Bomboré 2023 Study results. To
participate, please use the following dial-in phone numbers or join the webcast using the link below:
Webcast
Date: Thursday, October 12th
Time: 7:00 am Pacific Time (10:00 am Eastern time)
Please register for the webcast here: Orezone 2023 Study Conference Call and Webcast
Conference Call
Toll-free in U.S. and Canada: 1-800-715-9871
International callers: +646-307-1963
Event ID: 4944136
A copy of the presentation will be available on the Company’s website.
- 3 -
2023 Study Summary
Table 1 – Summary of 2023 Study Results (starting Q2-2023)
Description Unit Value
Base Case Gold Price US$/oz 1,750
Mine Life yr 11.3
Total Ore Tonnes Mined Mt 95.7
Total Waste Tonnes Mined Mt 187.6
Strip Ratio
Ore Stockpiles
Waste:Ore
Mt
1.96
7.8 Consolidated Mill Throughput Mtpa 10.3
Oxide Plant Throughput Mtpa 5.9
Hard Rock Plant Throughput Mtpa 4.4
LOM Gold Production Moz 2.11
LOM Average Gold Production oz/yr 186,000
Phase II first 3 years oz/yr 231,000
Unit Operating Costs $/t processed 19.60
Cash Costs $/oz 1,070
LOM AISC $/oz 1,122
Phase II first 3 years $/oz 1,081
Sustaining capex $M 101.0
Growth capex $M 57.7
Phase II Hard Rock Expansion capex $M 167.5
Pre-tax NPV (5%) $M 844.2
After-tax NPV (5%) $M 635.9
Note: 9M-2023 based on average gold price of $1,900/oz
Figure 1 – Bomboré 2023 LOM Production and Cost Profile (starting Q2-2023)
- 4 -
Figure 2 – Bomboré Mine Layout and Infrastructure
Comparison of 2023 Study to 2019 Feasibility Study
The results of the 2023 Study supersede the 2019 Feasibility Study (“2019 FS”). The 2023 Study incorporates the
following main scope changes from the 2019 FS:
• Increased Resource Cut-off Grades: The applied cut-off grades utilized for the primary oxide and fresh
rock units in the 2023 Mineral Resource calculation have increased a respective 25% and 18% relative to
that utilized in the 2019 FS, as a result of global inflation and realized costs achieved to-date.
• Expanded Mineral Reserve Base: Total gold content of Proven and Probable mineral reserves now stand
at 2.4Moz, which factoring for mine depletion to the end of Q1-2023, marks a 37% increase relative to the
1.8Moz outlined in the 2019 FS. The increase in mineral reserves is supported by over 100,000m of
additional drilling.
• Increased Mill Throughput: The 2019 FS was based on an initial oxide mill design throughput of 5.2Mtpa,
reducing to 3.0Mtpa upon the commissioning of a partially integrated 2.2Mtpa hard rock mill in Year 3. In
contrast, the 2023 Study maintains the current 5.9Mtpa oxide mill throughput but envisions the
commissioning of an independent and upsized 4.4Mtpa hard rock plant in Year 3 (2025).
Overall, expanded mill throughput of 10.3Mtpa under the 2023 Study is 98% higher than the 5.2Mtpa
throughput outlined in the 2019 FS.
• Reduced Hard Rock Leach Time: Additional metallurgical test work conducted in 2023 confirmed a 24hr
leach time versus the 48hr leach time utilized in the 2019 FS. The faster leach kinetics contributes to lower
capital and operating costs, and further de-risks project execution as the hard rock Carbon-in-Leach (“CIL”)
circuit will duplicate the existing oxide CIL circuit.
• Expanded Production Profile: The expanded mineral reserve base and increased annual mill throughput
have led to higher LOM and annual gold production . At the fu ll processing rate of 10.3Mtpa, the 2023
Study outlines an average production profile of 209,000oz/yr over the first 8 years, a 70% increase relative
to the 123,00oz/yr in the 2019 FS.
- 5 -
MINERAL RESOURCE AND MINERAL RESERVE
Gold mineralization on the Property is predominantly hosted in the Bomboré Shear Zone, a major structure within
a 50km long northeast-southwest trending greenstone belt. The updated mineral resource estimate has an
effective date of March 28, 2023 and was completed by P&E Mining Consultants Inc. The updated mineral
resource is based on a total of 601,795m of drilling, and excludes material mined up to the effective date, as well
as excluding stockpiles.
Table 2 – Bomboré Mineral Resource Estimate as of March 28, 2023
Measured Indicated Measured and Indicated Inferred
Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
Mt Au g/t Au koz Mt Au g/t Au koz Mt Au g/t Au koz Mt Au g/t Au koz
Oxide 16.4 0.59 312 72.9 0.56 1,311 89.3 0.57 1,623 3.3 0.57 60
Hard Rock 11.1 1.09 389 78.8 0.99 2,503 89.9 1.00 2,892 16.7 1.02 549
Total 27.5 0.79 701 151.7 0.78 3,814 179.3 0.78 4,515 20.0 0.95 610
See the end of news release for associated footnotes for the above table.
The updated mineral reserve estimate was completed by AMC with an effective date of March 28, 2023. Orezone
developed new re-blocked mine models for each of the resource block models accounting for internal dilution
and mining recoveries. AMC applied appropriate modifying factors for conversion of mineral resources to mineral
reserves. Those factors include amongst others, weathering profiles, operating costs, and pit slope angles. Cut-off
grade determinations for block assignments (ore versus waste) were based on a gold price of $1,500/oz. Mine
planning included standard procedures of optimization, design and scheduling.
Table 3 – Bomboré Mineral Reserve Estimate as of March 28, 2023
Proven Probable Proven & Probable
Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
Mt Au g/t Au koz Mt Au g/t Au koz Mt Au g/t Au koz
Oxide 6.2 0.62 124 50.5 0.55 897 56.7 0.56 1,020
Hard Rock 3.3 1.29 137 35.6 1.00 1,144 38.9 1.02 1,281
Oxide Stockpiles - - - 7.9 0.40 102 7.9 0.40 102
Total 9.5 0.86 261 94.0 0.71 2,143 103.5 0.72 2,403
See the end of news release for associated footnotes for the above table.
- 6 -
MINE PLAN AND PRODUCTION SUMMARY
The 2023 Study is based on an annual ore feed rate of 10.3Mtpa with delivery of higher-grade ore in the earlier
years. The open pit operation will continue with mining contractors utilizing backhoe excavators and rear-dump
haul trucks. The pit design is based on 6m benches in oxide ore to be mined in two 3m flitches with berm widths
varied according to the recommended geotechnical parameters. In hard rock ore, min ing will take place on 3m
flitches stacked to 12m in the final pit walls. The oxide material is soft and free digging with minimal blasting while
the hard rock material will be mined using conventional drill and blast mining methods. Mining rate will peak at
30Mt per year.
Multiple open pits will be mined over a strike of 14km which provides flexibility in ore scheduling. The mine plan
was developed to satisfy physical and practical constraints including consideration for access to new mining areas,
a sustainable production profile, limits on vertical advance rates and practical use of low -grade ore stockpiling.
The high-grade P17S pits have been prioritized and will be mined from 2025 to 2028. The LOM strip ratio is 1.96:1
with waste placed either in dumps or used in tailings facility construction.
Figure 3 – Mining Schedule (starting Q2-2023)
- 7 -
MINERAL PROCESSING
The Bomboré oxide plant is currently processing material at a rate of 5.9Mtpa which is 0.7Mtpa above nameplate
design. From the truck dump hopper, the soft oxide and upper transition ore is introduced into a mineral sizer via
an inclined apron feeder and then fed by conveyor into a single stage 3 .2MW ball mill in closed circuit with
hydrocyclones to produce a grind size of 80% passing 125 µm. The CIL leach residence time is 21 hours. Gold
recovery is 92% for oxide ore and 89% for upper transition ore.
The new 4.4Mtpa hard rock plant is designed to process fresh and lower transition material to achieve a grind size
of 80% passing 75µm. Metallurgical test work conducted in 2023 has concluded that the optimal grind size is 80%
passing 75µm and that gold recovery is independent of head grade. With oxygen addition, a 24-hour leach time is
sufficient. Gold recovery is 86% for lower transition ore, 95% for P17S ore, 84% for P8P9 fresh ore, and 82% for all
other fresh ore.
The new comminution circuit will include a primary jaw crusher, a 24 -hour crushed ore stockpile, a single stage
18MW twin pinion SAG mill, hydrocyclones for product size classification and space for a potential future pebble
crusher. Cyclone overflow will report to trash removal screens and then into a 29m diameter thickener. The slurry
will be thickened to 45% solids and pumped to the CIL circuit. The new CIL circuit will be identical to the existing
CIL circuit and will include an oxygen plant. Carbon will be processed in a new 12-tonne carbon elution circuit and
the existing carbon kiln will be utilized for carbon regeneration. Two new electrowinning cells will be installed and
the existing gold room and refinery will be used to produce gold doré bars.
Extensive metallurgical test work has been completed on Bomboré ore to confirm plant design parameters. The
most recent testing of fresh ore characterization and gold recovery was completed by Maelgwyn Mineral Services
Africa in Q1-2023. Comminution test work data has been compiled from a total of 42 Axb tests and 43 BWi tests
and Orway Mineral Consultants have provided recommendations on the design of the grinding circuit.
Figure 4 – Processing Schedule (starting Q2-2023)
- 8 -
Figure 5 – Existing 5.9Mtpa Oxide Plant and New 4.4Mtpa Hard Rock Plant Layout
Figure 6 – 4.4Mtpa Hard Rock Plant Flowsheet