Orezone Resources Inc.
TSX : OZN
AMEX : OZN

Orezone Resources Inc.
Gold Fields Limited
NYSE : GFI
JSE : GFI

Gold Fields Limited

September 11, 2007 09:33 ET

Gold Fields Delivers Positive Feasibility Study for Essakane

Annual production of 300,000 oz/yr at less than $300/oz and 15% IRR

OTTAWA, ONTARIO--(Marketwire - Sept. 11, 2007) - Orezone Resources Inc. (TSX:OZN)(AMEX:OZN) and Gold Fields Ltd (NYSE:GFI)(JSE:GFI)(DIFX:GFI) are pleased to announce that a NI 43-101 compliant Definitive Feasibility Study ("D FS") for the Essakane Project in Burkina Faso, West Africa, has been delivered to Orezone as part of a Shareholders agreement which provides for Gold Fields earning a 60% interest in the Essakane Project upon issuance of this DFS. An executive summary of the study that was prepared by GRD Minproc of South Africa will be filed on SEDAR within the next 30 days. Orezone and Gold Fields have 90 days to review the study prior to a final a production decision being made. The permitting process is already underway in Burkina Faso and all permits including a mining convention are expected to be in place prior to making a production decision before the end of the year.

Highlights of the Feasibility Study

Capital Costs

Capital costs have been estimated at US$346.5 million (+/- 15%) to build a 5.4Mtpa CIL plant that will produce an average of 292,000 ounces of gold per year at an average cash cost of US$298 per ounce over an 8.6 year mine life. The stripping ratio is 3.1:1. Power will be provided by a 32MW HFO and diesel power station with an estimated cost of $0.16 per kwh. Summary of the capital expenditures is in Table 1.



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Table 1
Summary of Capital Expenditures

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Description US $ M
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Water Storage and Infrastructure 14.3
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Mine Fleet 49.0
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Mining Other (Pre-prod & Infrastructure) 11.8
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Process Plant and Ancillaries 111.1
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Infrastructure, Accommodation and Roads 18.1
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EPCM 15.6
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Relocation Costs 18.5
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Power Supply and Infrastructure 36.7
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Working Capital 17.8
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Overburden and Tailing Storage Facilities 17.4
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Owner's Costs 21.9
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Contingency 14.3
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Total 346.5
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Mineral Reserves and Resources

Mineral resources for the Essakane Main Zone have been estimated and constrained within a US$650/oz pit shell as per Table 2. This resource estimate was reviewed by Snowden Mining Industry Consultants (Perth, Western Australia) and was reported in April 2007. It is considered to be compliant with the CIM Definition Standards for NI 43-101 reporting.

For the purposes of the DFS, mine design and production scheduling was completed on a fully optimized US$500/oz design shell using only the Indicated mineral resources. The mineral resources within this design shell are presented in Table 3.

The Probable Mineral Reserves associated with this surface mine design are 46.4Mt with a diluted (mill feed) grade of 1.78g/t. The mineral reserves are based on cutoff grades of 0.52g/t for saprolite, 0.58g/t for saprock, and 0.62g/t for fresh ores. The average metallurgical recovery over the life of mine is estimated to be 94.6% .



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Table 2
Mineral Resources
Constrained within a $650/oz pit shell reported April 07

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Cut Off Grade 0.50 1.00
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Indicated Tonnes (Mt) 63.2 34.6
Grade (g/t Au) 1.6 2.3
Au (Moz) 3.3 2.6
Inferred Tonnes (Mt) 14.7 8.4
Grade (g/t Au) 1.7 2.4
Au (Moz) 0.8 0.7
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Table 3
Mineral Resources
Constrained within US$500/oz mine design

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Cut Off Grade 0.50 0.80 1.00
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Indicated Tonnes (Mt) 55.0 39.3 32.1
Grade (g/t Au) 1.7 2.2 2.4
Au (Moz) 3.1 2.7 2.5
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Financial Model

Based on the economic parameters that were determined for the Essakane Project, the surface mine yields average production of 292,000 oz per year for a total of 2,507,000 recovered ounces. Table 4 sets out the financial results using various gold and fuel prices which are the two dominant sensitivities of the project.




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Table 4
Summary of Financial Results

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Gold Price (US$/oz) 460 580 650 720
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Oil Price (US$/bbl) 40 50 60 80
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Ounces Recovered (000 oz) 2,507 2,507 2,507 2,507
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Avg Annual Production (000 oz) 292 292 292 292
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Cash Cost (US$/oz) 269 298 321 356
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Total Cash Cost (US$/oz) 418 447 469 505
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Total Free Carried Cash Cost (US$/oz) 464 497 521 561
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Pre-Tax Project IRR (%) 5.8% 14.8% 18.8% 21.5%
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Schedule

Table 5 sets out the project development schedule. Gold Fields has approved a budget of $15million to maintain this schedule up to a production decision by the end of the year.




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Table 5
Selected Project Milestones

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Task Date
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Grinding mills contract award 31 May 2007
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Commence detailed design 02 July 2007
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Award the mine village and
resettlement housing contracts 15 September 2007
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Award the mining fleet purchase order 30 September 2007
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Award the contract for the power station 15 September 2007
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Commence building the mine village
and resettlement houses 08 November 2007
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Establish the contractor's lay-down area 15 January 2008
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Commence the plant earthworks 03 April 2008
Complete the mine village houses 22 May 2008
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Commence excavation of the off
channel storage facility 30 October 2008
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Complete the relocation of village houses 27 November 2008
Commence mining activities 02 September 2009
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Commission the power station 21 April 2009
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Commence ore commissioning 27 October 2009
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Handover the plant 14 December 2009
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"The completion of a positive feasibility study for Essakane is a defining moment for our company and the country of Burkina Faso", stated Ron Little, Chief Executive Officer for Orezone. "Should a production decision be made, this will be the largest private capital inves tments in the history of the country and we are very proud to be a part of this process. We are very pleased with the progress of the project, including the current permitting process with the government, and look forward to working with our partners to bring this project to a development decision in a short time frame", continued Little.

"The Essakane project is a good asset, both from a technical as well as a financial aspect. We look forward to concluding the permitting process thus enabling further commitments to be made" said Jim Komadina, Senior Vice President, Development Projects for Gold Fields.

The Company is also pleased to announce the promotion of Pascal Marquis from VP Exploration to President, and Stephen (Steve) King from VP Technical Se rvices to VP Exploration. Mr. Marquis has been with Orezone for five years and is credited with advancing Essakane from exploration to the feasibility stage prior to Gold Fields assuming management of the project last year. Niel Marotta, is stepping down as VP Corporate Finance but will maintain a consulting role on the Advisory Committee. .

Orezone is an explorer and emerging gold producer that holds a 40% interest in Essakane, the largest gold deposit in Burkina Faso, West Africa. The company has a pipeline of advanced and grassroots projects, all located in politically stable areas of West Africa which is one of the world's fastest growing gold producing regions. Orezone's mission is to create wealth by discovering and developing the earth's resources in an efficient and responsible manner.

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on 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 data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, 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.

Contact Information

  • Orezone Resources Inc.
    Ron Little
    Chief Executive Officer
    613-241-3699 / Toll Free: 888-673-0663
    rlittle@orezone.com
    or
    Orezone Resources Inc.
    Pascal Marquis
    President
    613-241-3699 / Toll Free: 888-673-0663
    pmarquis@orezone.com