Orezone's Bombore Gold Project Reaches World Class Size

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OTTAWA, ONTARIO--(Marketwire - Aug. 27, 2012) - Orezone Gold Corporation (TSX:ORE.TO - News) is pleased to announce that gold mineral resources at its Bombore Gold Deposit, located in Burkina Faso, West Africa, have substantially increased to:

125 million tonnes of measured and indicated mineral resources at 1.03 g/t for 4.13 million oz,

and 32.1 million tonnes of inferred mineral resources at a grade of 1.00 g/t for 1.03 million oz. 

Bombore is now world class(1) and is the largest undeveloped gold deposit in Burkina Faso and possibly in all of West Africa.

Highlights

--  The mineral resource update includes an additional 214,146 m of drilling     for a total of 338,033 m, including 222,184 m of RC drilling (3,510     holes) and 115,849 m of core drilling (764 holes).  --  All resources are contained within optimized pit shells with a maximum     depth of 200 m, using current Burkina Faso operating cost and Bombore     recovery parameters and $1400/oz gold;  --  Measured and indicated mineral resources have increased by 2.54 Moz to     4.13 Moz (+160%) with grades increasing by 27% to 1.03 g/t;  --  The measured mineral resource is 1.87 Moz, with none in the previous     model;  --  Oxidized measured and indicated mineral resources have increased by 0.71     Moz to 1.76 Moz (+70%) with grades increasing by 32% to 0.94 g/t;  --  Upside potential remains to further upgrade and expand the oxidized     resources;  --  The gold mineralization remains open at depth in several major areas     with significant potential to further increase the mineral resources     amenable to open pit extraction in the fresh rock; and  --  The discovery cost of the Bombore gold resource to date is approximately     $10/oz. 

 

(1) Singer, D.A., 1995, World-class base and precious metal deposits-a quantitative analysis: Economic Geology, v. 90, no.1, p. 88-104

The extensive 2011/12 drill program was successful in demonstrating continuity within previously modeled deposits, expanding the mineralized zones and improving the grade of both the near surface oxide resource and underlying fresh rock resource. An additional 35,000 m of definition drilling was completed during Q2 with results planned to be released in September. This recent drilling will further upgrade and expand the Bombore gold resources. Given the significant potential to further expand the project's mineral resources, the Company's board of directors has approved up to $10 M of additional infill and expansion drilling that will commence in September and run until June 2013.

"Bombore is the largest undeveloped gold deposit in Burkina Faso and it remains open at depth and along strike" said Ron Little President and CEO. "The average depth of drilling is only 120 m and 43% of the resources are oxidized. The Company will continue to drill and further expand resources while it completes a Definitive Feasibility Study during the first half of 2013."

This material change to the total mineral resource supports the Company's approach to develop the project as a carbon in leach ("CIL") operation in two phases. The ongoing feasibility study contemplates first building an oxide-only plant with the benefits of lower capital costs, lower operating costs and higher recoveries for this initial phase. A second phase expansion to process the harder sulphide resources could then be financed from project cash flows. Detailed metallurgical studies will be released during Q3 and Q4. A new resource update is planned for Q1 2013.

The mineral resource statement (Table 1) was prepared by SRK Consulting (Canada) Inc. ("SRK") from Toronto. The mineral resources are constrained within 6.2 km2 of conceptual open pit shells prepared by G Mining Services Inc. (GMS) from Montreal using parameters established by GMS in June 2012 and taking into account the findings of the ongoing metallurgical study (Table 2). The pit shells are based on a US$1,400 gold price, relevant cost estimates for mining, processing and G&A of comparable Burkina Faso gold mines, and detailed metallurgical results to estimate recoveries for a CIL plant scenario. The resources span over 11 km long and up to 1 km wide with an estimated stripping ratio of 2.7:1. The majority of the total resource occurs within the top 120 m, where approximately 95% of the drilling was completed to date, but pit shells can reach a depth of 200 m. Resources remain open at depth and for the most part along strike. 

"The pit shell optimization parameters approximate current operating costs in Burkina Faso and represent significant increases in the mining, G&A and processing costs as compared to those parameters used in the 2010 resource estimate and 2011 PEA. Even with such increases, we were still able to reach our target of a +5 Moz deposit at a grade of 1.0 g/t," said Pascal Marquis, Senior V.P. Exploration for Orezone. "Most importantly the deposit is scalable and leveraged to the gold price. Any increase in the gold price or drop in costs yields significantly higher contained ounces."