Orezone Updates Bomboré Mineral Resource Statement Increases Oxide and Sulphides Resources
Orezone Updates Bomboré Mineral Resource Statement
Increases Oxide and Sulphides Resources
January 10, 2017 - Orezone Gold Corporation (ORE: TSXV) is pleased to announce its updated 2017 Mineral
Resource statement (Table 1), subsequent to its release of September 7, 2016, for its Bomboré Project in
Burkina Faso, West Africa. The updated resource estimation was performed by Roscoe Postle Associates
Inc. (RPA) in Toronto, Ontario . Mineral Resources are estimated at variable cutoff grades depending on
weathering layer and geographic location.
The overall results (Table 2) show that the gold ounces contained in the 2017 Measured and Indicated (M&I)
resource have increased by 15% from 3.22 million ounces to 3.69 million ounces with a 5% reduction in the
average gold grade to 0.92 gram per tonne (gpt) as compared to the 2016 estimate. Of this, the Oxidized
and Transition M&I resource increased by 10% with a 3% reduction in the average g old grade to 0.87 gpt
and the fresh rock (Sulphide) M&I resource increased by 18% with the average gold grade reduced by 7% to
0.97 gpt. For comparison purposes, Table 2 also includes the 2013 resource statement based on the same
cutoff grades (0.45 gpt for oxide & transition and 0.5 gpt for sulphide). These cutoff grades are well above
the lower economic cutoff grades that will be used for estimating the 2017 reserves.
The increase in resources is directly attributable to the recent modeling (wireframing) of the additional
mineralization that had been categorized as the waste domain (third domain) within the pit shells that
constrained the 2016 estimate and not due to a change in methodology or gold price.
The 2017 Mineral Resource Statement ( Table 1) reports at the calculated economic cutoff gold grades of
0.2 gpt for oxide and 0.38 gpt sulphide. Compared to the 2016 estimate, at the calculated economic cutoff
grades, the total Oxide and Transition M&I resources increased from 1.935 million ounces to 2. 214 million
ounces and the total Sulphide M&I resources increased from 2. 074 million ounces to 2.556 million ounces.
The 2017 resource estimation methodology and parameters as applied to the Measured and Indicated
categories, of both the higher and lower grade cutoffs, has remained unchanged from the 2016 estimate .
The 2017 Inferred category includes one additional step in methodology as described below, however, this
is not considered to be a material change.
Table 1 - 2017 Mineral Resources Statement for the Bomboré Deposit, Burkina Faso, West Africa
Measured
Mineral Resource
Indicated
Mineral Resource
Measured and Indicated
Mineral Resource
Inferred
Mineral Resource
Cutoff Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
Material Type gpt Mt gpt koz Mt gpt koz Mt gpt koz Mt gpt koz
Oxide+Tran HG 0.45 16.9 0.94 513 36.5 0.83 974 53.4 0.87 1,487 4.8 0.77 117
Oxide+Tran LG 0.2 to 0.45 18.5 0.33 196 50.1 0.33 531 68.6 0.33 727 16.4 0.29 151
Total Ox+Tr 0.20 35.4 0.62 709 86.7 0.54 1,505 122.0 0.56 2,214 21.2 0.39 268
Fresh HG 0.50 2.3 1.18 87 68.7 0.96 2,121 71.0 0.97 2,208 20.1 0.97 630
Fresh LG 0.38 to 0.5 0.8 0.43 11 24.2 0.43 337 25.0 0.43 348 6.9 0.43 96
Total Fresh 0.38 3.1 0.99 97 93.0 0.82 2,458 96.0 0.83 2,556 27.0 0.84 726
Total HG 19.2 0.97 600 105.3 0.91 3,095 124.5 0.92 3,695 24.9 0.93 747
Total LG 19.2 0.33 206 74.4 0.36 868 93.6 0.36 1,075 23.3 0.33 246
Total HG + LG 38.4 0.65 806 179.6 0.69 3,964 218.1 0.68 4,770 48.2 0.64 994
Notes: 1. CIM definitions were followed for Mineral Resources. 2. HG indicates material above the higher grade cutoffs, LG indicates low grade material
between the high grade and breakeven cutoff grades. 3. Mineral Resources are estimated at variable cutoff grades depending on weathering layer and
location. 4. Mineral Resources are estimated using a long-term gold price of US$1,400 per ounce. 5. A minimum mining width of approximately 3 m was
used. 6. Bulk densities vary by material type. 6. Mineral Resources that are not Mineral Reserves do not have demonstrated econ omic viability. 7. Numbers
may not add due to rounding. 8. The effective date of this Mineral Resource statement is January 5, 2017.
Table 2 - Comparison Table of 2017 to 2016 Mineral Resource Estimates at Similar Cut-off Grades
Measured
Mineral Resource
Indicated
Mineral Resource
Measured and Indicated
Mineral Resource
Inferred
Mineral Resource
Cutoff Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
gpt Mt gpt Koz Mt gpt Koz Mt gpt Koz Mt gpt Koz
2013 Ox+Tr 0.45 38.9 0.94 1,174 28.3 0.87 789 67.2 0.91 1,964 6.4 0.92 189
2016 Ox+Tr 0.45 16.3 0.98 514 30.7 0.85 840 47.1 0.89 1,355 1.0 0.76 24
2017 Ox+Tr 0.45 16.9 0.94 513 36.5 0.83 974 53.4 0.87 1,487 4.8 0.77 117
Difference
0.5 (0.03) (2) 5.8 (0.02) 134 6.3 (0.03) 133 3.8 0.00 93
Percent Difference
3% -4% 0% 19% -2% 16% 13% -3% 10% 381% 0% 383%
2013 Fresh (Fr) 0.50 44.1 1.03 1,456 28.6 1.24 1,142 72.7 1.11 2,598 12.1 1.38 534
2016 Fresh 0.50 6.7 1.07 232 49.1 1.04 1,638 55.8 1.04 1,870 15.9 0.89 457
2017 Fresh 0.50 2.3 1.18 87 68.7 0.96 2,121 71.0 0.97 2,208 20.1 0.97 630
Difference
(4.4) 0.10 (145) 19.6 (0.08) 483 15.2 (0.08) 338 4.2 0.08 174
Percent Difference
-66% 9% -63% 40% -8% 29% 27% -7% 18% 26% 9% 38%
2013 Ox+Tr+Fr 83.0 0.99 2,630 56.8 1.06 1,931 139.9 1.01 4,561 18.4 1.22 723
2016 Ox+Tr+Fr 23.0 1.01 746 79.8 0.97 2,478 102.9 0.97 3,224 16.9 0.88 481
2017 Ox+Tr+Fr 19.2 0.97 600 105.3 0.91 3,095 124.5 0.92 3,695 24.9 0.93 747
Difference (3.9) (0.03) (147) 25.4 (0.05) 617 21.6 (0.05) 471 8.0 0.05 267
Percent Difference -17% -3% -20% 32% -5% 25% 21% -5% 15% 47% 6% 55%
Notes: A subset of the 2017 and 2016 Mineral Resources is reported in this table in order to draw comparisons to the 2013 model which was reported at
a lower cutoff grade of 0.45 gpt for oxide and transition material and 0.50 gpt for fresh material .
As previously stated on Sept 7, 2016 approximately one third of the reduction in M&I resources between
the 2013 and 2016 estimates w as related to environmentally sensitive areas and areas set aside for the
benefit of local artisanal miners. Most of these resources were already excluded from the 2015 feasibility
study reserve estimation and will remain excluded in the 2017 feasibility updat e. Some of these resources
may be recaptured in the future through independent studies and permitting. By combining the 2017
increase in resources with thi s voluntary reduction in resources for technical and practical reasons, the
difference between 2013 and 2017 resource estimates is now less significant.
With the resource update d and complete, t he Company is now working with RPA to complete the Mineral
Reserves and Mine Plan in order to update and optimize the 2015 Phase 1 feasibility study.
“The 2017 resource update shows a significant increase over the 2016 estimate and better reflects the
mineralization that was not previously wireframed (accounted for) in the 2016 estimate.” stated Ron Little,
CEO for Orezone. “ It is important to note that we followed the same methodology, protocols and
parameters as those used in the 2016 estimate along with the same level of rigor and conservatism. Some
upside remains in the area of Inferred resources that occur within the pit shell s that constrain the resource
(in the third domain) that may well be upgraded and included within future mine production by grade
control drilling during the mining phase.”
The Bomboré project benefits from a large oxide and sulphide resource that allows for flexibility and
potential expansion of the process facility. The resource remains open at depth and for the most part
along strike. The Company is planning further dril ling for infill, expansion, and model testing purposes
during H1 2017 once the appropriate permits have been received . Part of the focus of this drilling is to
define and upgrade the mineralization that is currently unclassified and occurs within the reso urce pit
limits. This drilling will generally be shallow and designed to demonstrate the ability to upgrade resources
by expanding grade domains and to test areas that have been previously identified as prospective but are
presently excluded from the current estimate.
The 2017 estimation methodology:
The methodology used for the current resource estimate was mostly the same as the September 7, 2016
estimate with the addition of 391 lower grade envelopes to the North and South models, many of which
demonstrate grade continuity suitable to be classified as Measured and Indicated Mineral Resources, and
the addition of a minor third domain located outside the envelopes as an unconstrained model using a
limited search ellipse up to 35 m by 35 m by 2.5 m. All of the “third domain” was classified as Inferred.
The methodology included estimating the grade in two principal grade domains, a higher grade +0.45 gpt
domain (the core of mineralization) and a lower grade 0.2 to 0.45 gpt domain (the lower grade halo around
the core). The grade of each domain (or envelope) was estimated using only the composited assays that
occur within each envelope and thereby there was a hard boundary between each domain. Assays were
capped prior to c ompositing to 1.5 m. Block grades were estimated using ordinary kriging and classified
according to drill hole spacing and the apparent continuity of the mineralized zones. Mineral Resources
were reporting in preliminary pit shells generated in Whittle software.
The Company plans to issue an updated feasibility study in Q2 2017 that will include amongst other things,
the 2017 resource statement and the minor changes to section 14 (Estimation Methodology) from that
described in the September 7 , 2016 resource report filed on SEDAR on November 2, 201 6. The Company
and RPA confirm that the description of the methodology in the 2016 report sufficiently support s and
applies to those same techniques used by RPA to estimate the 2017 Measured and Indicated resources.
The 2016 estimation methodology:
The methodology included estimating the grade in two principal grade domains, a higher grade +0.45 gpt
domain (the core of mineralization) and a lower grade 0.2 to 0.45 gpt domain (the lower grade halo around
the core). The grade of each domain (or envelop e) was estimated using only the composited assays that
occur within each envelope and thereby there was a hard boundary between each domain.
The 2013 estimation methodology:
The Company worked with SRK Consulting (Canada) Inc. to produce the 2013 resource model which
included the definition of the higher grade domains using +0.5 gpt wireframe envelope and the Company
created a lithological model that was used to constrain the low-grade gold domains. SRK estimated block
grades inside the higher grade domains using only those composited samples located within that
domain. The block grades inside the lower grade domains were constrained by lithological wireframes and
were assigned a grade based on composites from that domain as well as composites from nearby higher
grade domains within a certain distance. This ensured grade continuity of the higher grade zones while
overcoming software limitations at that time. In this process, the lower grade domains could be described
as having a hybrid or semi -hard boundary between the higher grade and lower grade domain s. Domains
identified as waste were not estimated.
Tim Miller, SME and COO, Pascal Marquis, Geo and SVP and Ron Little, P.Eng. and CEO of Orezone, are Qualified Persons under
National Instrument 43 -101 and have reviewed the information in this release. Readers should refer to the annual information
form of Orezone for the year ended December 31, 2015 and other continuous d isclosure documents filed by Orezone since
January 1, 2016 available at www.sedar.com, for this detailed information, which is subject to the qualifications and notes set
forth therein.
Qualified Person – Mineral Resources: The 2017 Mineral Resources disclosed in this press release have been prepared under the
supervision of Reno Pressacco, P.Geo. , Jose Texidor -Carlsson, P.Geo., and Tudorel Ciuculescu, P.Geo., all employees of RPA and
independent of Orezone. By virtue of their education and relevant experience, Messrs. Pressacco, Texidor-Carlsson and Ciuculescu
are “Qualified Persons” for the purpose of National Instrument 43 -101. The Mineral Resources have been classified in accordance
with CIM Definition Standards for Mineral Resources and Mineral Reserves (May, 2014). Messrs. Pressacco, Texidor-Carlsson and
Ciuculescu have read and approved the contents of this press release as it pertains to the disclosed Mineral Resource estimate.
About Orezone Gold Corporation
Orezone is a Canadian company with a successful track record of gold discoveries and mine development
experience in Burkina Faso, West Africa. The Company owns a 100% interest in Bomboré, one of the largest
and permitted undeveloped oxide gold deposit in West Africa, situated 85 km east of the capital city,
adjacent to an international highway.
For further information please contact Orezone at +1 (613) 241-3699 or Toll Free (888) 673-0663
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; the Company plans to
issue an updated feasibility study in Q2 201 7, to complete additional drilling for infill, expansion and model testing purposes
during H2 2017 once appropriate permits are received, and that upside remains in the inferred resource that occur within the pit
shells that constrain the resource (in the third domain) that may only be upgraded by grade control drilling during the minin g
phase.
Although the forward -looking statements contained in this news release are bas ed upon what management of the C ompany
believes a re reasonable assumptions, the C ompany 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 news 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 news release.
This news release also contains estimates of Mineral Resources. The estimation of Mineral Resources is inherently uncertain a nd
involves subjective judgments about many relevant factors. Mineral Resources that are not Mineral R eserves do not have
demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available da ta,
and of the assumptions made and judgments used in engineering and geological interpretation by qualified pe rsons, which may
prove to be unreliable, subject to dispute, and depend, to a certain extent, upon the methodology used and the analysis of drilling
results and statistical inferences. Mineral Resource estimates may have to be re -estimated based on, among other things: (i)
fluctuations in metal or mineral prices; (ii) results of drilling; (iii) results of metallurgical testing and other studies; (iv) change s to
proposed mining operations; (v) the evaluation of mine plans subsequent to the date of any estimates; (vi) the possible failure to
receive required permits, approvals or licenses, or changes in the terms and conditions of any such permits, approvals or licenses;
and (vii) changes in methodology.
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.