Orezone Provides Construction Update ON Bomboré GOLD Project
OREZONE GOLD CORPORATION
910-1111 Melville Street
Vancouver, BC, V6E 3V6
T: 778-945-8977
OREZONE PROVIDES CONSTRUCTION UPDATE ON BOMBORÉ GOLD PROJECT
July 14, 2021 – Vancouver, BC - Orezone Gold Corporation (TSX.V: ORE, OTCQX: ORZCF) (the “Company”
or “Orezone”) is pleased to provide an update on construction progress at its Bomboré Gold Project in
Burkina Faso.
Patrick Downey, President and CEO stated, “Significant progress has been achieved during the first half of
2021 and I am very pleased to report that the project capital cost remains consistent with the estimate in
the 2019 Feasibility Study (“2019 FS”) and the project is on schedule and fully funded to pour first gold in
Q3-2022. Over the past several months , raw material costs such as ste el, copper, and plastics have
trended higher along with logistics and transportation costs . The ability to maintain our capital budget
during this period of increasing global inflationary pressures is a testament to the work and preparedness
of the Orezone team and our consulting engineers. It is also a reflection of the high quality of the 2019 FS
as our bulk material quantities such as earthworks, steel, piping, and platework are all trending favourably
to those estimated in the 2019 FS . We will be posting monthly video updates of progress to keep our
shareholders and stakeholders fully informed of all ongoing construction activities over the next year.”
Highlights
• Bulk quantities tracking 2019 feasibility study : Engineering is now over 60% complete and
progressing on schedule. All bulk quantities for the project remain at or within the estimates in
the 2019 FS.
• Major orders made prior to global materials cost inflation: The Company, together with its
engineering consultants, completed detailed reviews and optimization studies during 2020 to
ensure a smooth start to detailed engineering and procurement at the award of the EPCM
contract. This facilitated rapid tendering and procurement of the major process plant equipment.
Firm orders have now been placed for most mechanical and electrical equipment including the
ball mill, CIL agitators, CIL inter-tank screens, mineral sizer, apron feeder, vibrating screens, slurry
pumps, all gold recovery circuit equipment, and high voltage switchgear and transformers. Orders
for major bulk items such as HDPE membranes and geotextiles, HDPE piping, concrete rebar, tank
platework, and all major structural steel have also been placed.
• Major construction contracts awarded: Contracts have been awarded for the Plant Concrete, CIL
Tank Erection, and Overland and Tailing Pipeline Installation. Tenders for the plant
Structural/Mechanical/Piping (“SMP”) are under evaluation and will be awarded in the coming
weeks. This leaves only the Electrical & Instrumentation installation contract which will be the
final major site installation package and will follow the award of the SMP but is generally the
lowest cost of these 4 major contracts. To date, all contracts are trending on budget.
• Site earthworks and site infrastructure : Early civil works to provide year -round access to all
construction areas including additional camp upgrades to meet peak occupancy, the construction
of the Nobsin River haul road bridge, clearing and grubbing of the tailings storage facility (“TSF”)
and the process plant footprints, and the mine access roads are now complete. Construction of
the TSF will commence in August.
- 2 -
• Plant Power: The power purchase agreement (“PPA”) signed providing life of mine LNG and solar
generated power for the Phase I oxide plant (see news release dated June 2, 2021).
• Mining of the Off-Channel Reservoir (“OCR”): This contract was awarded to a local mining
contractor and mobilization commenced in February 2021 with the first bench mined in March
2021. The OCR is the first ore pit to be mined and will also function as the main water storage for
the project during o perations and be available to the surrounding communities after mine
closure. The OCR is expected to be completed before the onset of the 2022 rainy season in June.
Mining is progressing very well with costs and material movement tracking to plan.
Mining and Resource Reconciliation
Prior to commencing mining of the OCR , a detailed 20,000 metre grade control drilling program was
undertaken. Results have been incorporated into the block model and reconciliation on both tonnes and
grade compared to the 2019 FS for the OCR has been positive. Overall, the reserve tonnes and ounces are
approximately 30% above those estimated in the 2019 FS. Grade control drilling will now focus on the
Maga and Maga Hill pit areas which will be the source of the planned higher-grade ore feed to the process
plant in the first 1 to 2 years of gold production.
Development Update Pictures and Video:
Orezone’s first monthly Bomboré construction video for May 2021 can be viewed at
https://bit.ly/May21Construction.
Figure 1: Off Channel Reservoir Mining
- 3 -
Figure 2: New Nobsin River Bridge Crossing
Figure 3: Fuel Storage Area under construction
Figure 4: Surface Water Management Pond under construction
- 4 -
Figure 5: Orezone hosts the Burkina Faso Minister of Energy and Mines, and Coris Bank at Bomboré, June 2021
About Orezone Gold Corporation
Orezone Gold Corporation (TSX.V: ORE OTCQX: ORZCF) is a Canadian development company which owns
a 90% interest in Bomboré, one of the largest undeveloped gold deposits in Burkina Faso.
The 2019 feasibility study highlights Bomboré as an attractive shovel-ready gold project with forecasted
annual gold production of 118,000 ounces over a 13+ year mine life at an All -In Sustaining Cost of
US$730/ounce with an after-tax payback period of 2.5 years at an assumed gold price of US$1,300/ounce.
Bomboré is underpinned by a mineral resource base in excess of 5 million gold ounces and possesses
significant expansion potential. Orezone is fully funded to bring Bomboré into production with the first
gold pour scheduled for Q3-2022.
Patrick Downey
President and Chief Executive Officer
Vanessa Pickering
Manager, Investor Relations
Tel: 1 778 945 8977 / Toll Free: 1 888 673 0663
[email protected] / www.orezone.com
Qualified Person
Ian Chang, P. Eng., VP Projects, is the Qualified Person who has approved the technical information in this
news release.
For further information please contact Orezone at +1 (778) 945-8977 or visit the Company’s website at
www.orezone.com.
- 5 -
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release contains ce rtain information that may constitute “forward -looking information” within the
meaning of applicable Canadian Securities laws and “forward-looking statements” within the meaning of applicable
U.S. securities laws (together, “forward -looking statements”). Forward-looking statements 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 press release include, but are not limited to, statements with respect to
the Bomboré project being fully funded to production and projected first gold by Q3-2022.
All such forward-looking statements are based on certain assumptions and analyses made by management in light
of their experience and perception of historical trends, current conditions and expected future developments, as well
as other factors management and the qualified persons believe are appropriate in the circumstances.
All forward-looking statements 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 including, but not
limited to, delays caused by the COVID-19 pandemic, terrorist or other violent attacks, the failure of parties to contracts to
honour contractual commitments, unexpected changes in laws, rules or regulations, or their enforcement by
applicable authorities; the failure of parties to contracts to perform as agreed; social or labour unrest; changes in
commodity prices; u nexpected failure or inadequacy of infrastructure, the possibility of project cost overruns or
unanticipated costs and expenses, accidents and equipment breakdowns, political risk, unanticipated changes in key
management personnel and general economic, mar ket or business conditions, the failure of exploration programs,
including drilling programs, to deliver anticipated results and the failure of ongoing and uncertainties relating to the
availability and costs of financing needed in the future, and other fa ctors described in the Company's most recent
annual information form and management discussion and analysis filed on SEDAR on www.sedar.com. Readers are
cautioned not to place undue reliance on forward-looking statements.
Although the forward -looking statements contained in this press release are based upon what management of the
Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be
consistent with these forward-looking statements. These forward-looking statements are made as of the date of this
press release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities
laws, the Company does not assume any obligation to update or revise the forward-looking statements contained
herein to reflect events or circumstances occurring after the date of this press release.