Orezone Gold Corporation
TSX : ORE

Orezone Gold Corporation

February 22, 2012 08:39 ET

Orezone Provides Positive Update on its Bombore Gold Project

Northern area P8P9 core hole yields 45m at 1.6 g/t at a depth of 170m

OTTAWA, ONTARIO--(Marketwire - Feb. 22, 2012) - Orezone Gold Corporation (TSX:ORE) is pleased to announce further positive oxide and sulphide drill results from an ongoing 215,000 m infill and expansion drill program at its 100% owned Bomboré Gold Project in Burkina Faso, West Africa. Results include 91 reverse circulation (RC) holes (6,573 m) and 80 diamond drill (DD) core holes (13,019 m) from the northern and southern portions of the 11 km long Bomboré resource. The majority of the core results are from the northern P8P9 area where hole BBD0522 intersected 45m of sulphide mineralization with a cut grade of 1.58 g/t centered at a depth of 170 m below surface. Positive results also continued at the southern limit of the deposit at P16, where core hole BBD0448 returned 16.5m at 9.26 g/t (uncut) near surface and 10 additional core holes (1,700 m) have been added to the program to continue the definition on this deposit. With six drill rigs in operation, the resource definition drilling is expected to be completed this quarter and a full NI 43-101 compliant resource update to be released at the end of the second quarter. Further expansion and exploration drilling will continue through the balance of 2012.

"These drill results continue to confirm the potential for higher grades and extension of the mineralization at depth within the extensive +11km length of the deposit" said Ron Little, CEO for Orezone. "The results underscore the potential to significantly expand and upgrade the resource and improve the preliminary economics of the project announced in June 2011."

Resource Definition Drilling

Orezone has completed in excess of 107,000 m of new RC drilling on Bomboré and has received the assay results for over 83,000 m, including 100% of the results from the southern portion of the project for which resource modeling is in progress. In addition, over 89,000 m of core drilling was completed with over 69,000 m of assay results received, including 100% of the results from the southern portion of the project. The overall assay backlog is currently standing at 37,000 samples, or about two months. Orezone has drilled more than 42,000 m since the drilling resumed on January 9, including more than 16,000 m with its own RC drill rig.

Bomboré Feasibility Study

Detailed metallurgical work continues on 76 representative samples where preliminary results indicate the potential of building a simple CIP or CIL circuit in two phases. Phase 1, an oxide plant, is envisioned to produce more than 150,000 oz/year with +90% recoveries, lower capital costs, lower mining and process costs and lower strip ratios than the CIL scenario outlined in the June 2011 Preliminary Economic Study. A Phase 2 plant expansion, funded from project cash flows, could increase production and mine life by processing the sulphide ores. Further metallurgical results are expected during the first quarter. A Bankable Feasibility Study is expected by the end of the year.

Regional Exploration

Reconnaissance mapping and prospecting is ongoing with auger drilling to follow in the second quarter on the new Toéyoko permit.

Financials

Orezone is well financed to complete its planned exploration and development work in 2012 including the resource update and bankable feasibility study for Bomboré. The sale of the Sega project to Cluff Gold, once closed, will add approximately another US$30 million and further strengthen the Company's ability to develop Bomboré. At December 31, 2011, Orezone had approximately US$28.7 million in its treasury with 83,724,531 issued and outstanding common shares (90,139,031 fully diluted).

Table 1. Cumulative Current Program Results Reported to Date

Current Program Results Reported to Date Average Grade
Zone Holes meters % Complete Uncut
(g/t)
Cut(1)
(g/t)
CFU - RC 0 0 0%
CFU - DD 4 653 18% 1.07 1.07
Maga - RC 50 3,455 16% 1.37 1.33
Maga - DD 50 7,702 38% 1.19 1.11
P8P9 - RC 568 29,830 93% 1.21 1.03
P8P9 - DD 85 3,315 50% 1.05 0.98
North - RC 618 40,158 56% 1.23 1.07
North - DD 139 22,143 43% 1.10 1.03
P11 - RC 239 12,517 100% 1.02 0.97
P11- DD 75 10,878 100% 1.06 0.96
Siga E - RC 182 9,893 100% 1.05 0.96
Siga E - DD 78 11,354 100% 1.26 1.05
Siga W - RC 146 7,401 100% 0.92 0.88
Siga W - DD 74 10,450 100% 0.90 0.88
Siga S - RC 208 10,517 100% 2.21 0.98
Siga S - DD 60 9,619 100% 1.09 1.01
South - RC 775 40,328 100% 1.46 0.95
South- DD 287 42,301 100% 1.07 0.97
P17 - RC 29 1,428 100% 2.08 1.74
P17 - DD 23 2,879 100% 1.49 1.37
P16 - RC 29 1,544 100% 1.36 1.30
P16 - DD 16 1,983 58% 3.22 2.02
SE - RC 58 2,972 100% 1.63 1.46
SE - DD 39 4,862 77% 2.35 1.70
All - RC 1,451 83,458 72% 1.35 1.04
All - DD 465 69,306 69% 1.15 1.03
(1) Weighted average grade of individual assays cut to 5 g/t that occur both in and outside the 2010 Whittle pit shells

Table 2. Breakdown of Drilling Meterage for this Release

Zone Diamond Drill Reverse Circulation
# of holes meters # of holes meters
CFU 0 0 0 0
Maga 0 0 0 0
P8P9 62 10,352 91 6,573
P17 5 616 0 0
P16 4 525 0 0
Siga S 0 0 0 0
Siga W 0 0 0 0
Siga E 4 800 0 0
P11 5 726 0 0
TOTAL 80 13,019 91 6,573

Table 3. Highlights of Diamond Drill Hole Results for this Release

(Includes holes previously reported for which the final total assay results are now available)

From To Length Uncut Grade(2) Cut Grade(3) Total
Zone Section Hole # (m) (m) (m) (g/t) (g/t) Assay(4)
P11 50050 BBD0383 41.00 46.00 5.00 5.87 2.77
P11 50050 BBD0383 86.00 102.00 16.00 1.95 1.81
P11 49500 BBD0517 41.00 47.50 6.50 4.62 3.02
P11 48500 BBD0512 45.00 61.00 16.00 0.73 0.73
P16 44225 BBD0447 44.00 52.00 8.00 1.62 1.29
P16 44225 BBD0447 75.00 90.00 15.00 5.55 3.40
P16 44225 BBD0447 93.00 100.00 7.00 2.99 2.67
P16 44225 BBD0447 123.00 137.00 14.00 1.74 1.74
P16 44200 BBD0448 22.50 39.00 16.50 9.26 3.75 Pending
P16 44200 BBD0448 53.00 58.00 5.00 15.50 4.06 Pending
P16 44200 BBD0448 80.00 85.00 5.00 4.68 2.15 Pending
P16 44200 BBD0448 106.00 118.00 12.00 2.53 1.96 Pending
P16 44100 BBD0443 35.00 53.00 18.00 5.85 3.19
P17 44275 BBD0435 45.00 56.00 11.00 1.23 1.15
P17 44275 BBD0435 61.00 72.00 11.00 1.88 1.82
P17 44250 BBD0434 55.00 69.00 14.00 2.74 2.60
P17 44225 BBD0433 89.00 97.00 8.00 2.61 2.37
P8P9 1850 BBD0500 54.00 65.00 11.00 1.04 1.00 Pending
P8P9 1800 BBD0537 113.00 123.00 10.00 1.15 1.15 Pending
P8P9 1800 BBD0538 35.50 48.50 13.00 1.17 1.17 Pending
P8P9 1800 BBD0538 144.00 159.00 15.00 0.84 0.84 Pending
P8P9 1800 BBD0539 0.00 6.00 6.00 2.55 2.55 Pending
P8P9 1750 BBD0656 72.00 94.00 22.00 1.15 1.15 Pending
P8P9 1750 BBD0656 97.00 103.00 6.00 1.79 1.79 Pending
P8P9 1750 BBD0657 37.00 56.00 19.00 2.24 1.91 Pending
P8P9 1700 BBD0584 101.00 115.00 14.00 1.56 1.56 Pending
P8P9 1700 BBD0584 134.00 143.00 9.00 1.67 1.18 Pending
P8P9 1700 BBD0584 161.00 175.00 14.00 0.97 0.80 Pending
P8P9 1700 BBD0585 147.00 160.00 13.00 0.80 0.80 Pending
P8P9 1650 BBD0530 26.00 34.00 8.00 1.39 1.39 Pending
P8P9 1400 BBD0400 64.50 77.50 13.00 1.17 1.17 Pending
P8P9 1350 BBD0522 207.00 229.00 22.00 1.07 1.07 Pending
P8P9 1350 BBD0522 232.00 252.00 20.00 2.70 2.33 Pending
P8P9 1350 BBD0524 44.00 60.00 16.00 1.12 1.07
P8P9 1350 BBD0525 218.00 231.00 13.00 2.14 2.07 Pending
P8P9 1300 BBD0567 29.00 40.00 11.00 1.25 1.25
P8P9 1300 BBD0568 76.00 89.00 13.00 0.87 0.87
P8P9 1300 BBD0568 177.00 189.00 12.00 1.16 1.16
P8P9 1300 BBD0569 7.50 25.00 17.50 1.48 1.48 Pending
P8P9 1300 BBD0570 77.00 86.00 9.00 7.21 1.15 Pending
P8P9 1300 BBD0571 143.00 151.00 8.00 1.88 1.88 Pending
P8P9 1250 BBD0482 13.50 30.00 16.50 1.18 1.18
P8P9 1250 BBD0482 78.00 95.00 17.00 0.73 0.73
P8P9 1250 BBD0483 167.00 173.00 6.00 2.25 2.25 Pending
P8P9 1250 BBD0483 176.00 202.00 26.00 2.18 1.48 Pending
P8P9 1250 BBD0483 221.00 248.00 27.00 0.89 0.89 Pending
P8P9 1150 BBD0393 12.50 30.50 18.00 1.02 1.02 Pending
P8P9 1100 BBD0479 112.00 118.00 6.00 1.72 1.72
P8P9 1050 BBD0388 176.00 188.00 12.00 1.24 1.08
P8P9 1050 BBD0478 3.50 22.50 19.00 0.93 0.93
P8P9 950 BBD0387 73.00 98.00 25.00 0.81 0.81
P8P9 950 BBD0387 101.00 117.00 16.00 0.85 0.85
P8P9 900 BBD0509 52.50 61.00 8.50 1.21 1.21
P8P9 900 BBD0509 93.00 111.00 18.00 0.98 0.98
P8P9 800 BBD0556 74.00 84.00 10.00 1.01 1.01
P8P9 700 BBD0475 115.00 119.00 4.00 3.20 2.61
P8P9 500 BBD0386 53.00 59.00 6.00 2.25 2.25
Siga E 12150 BBD0450 208.00 214.00 6.00 3.68 2.47
Siga E 12050 BBD0602 0.00 7.00 7.00 2.35 2.35 Pending
Siga S 10950 BBD0224 169.00 181.00 12.00 1.45 1.40
Siga S 10900 BBD0222 158.00 170.00 12.00 3.03 1.83
Siga S 10750 BBD0189 251.00 264.50 13.50 0.92 0.92
(2) Weighted average grade of uncut individual assays
(3) Weighted average grade of individual assays cut to 5 g/t
(4) Composite width and grade are preliminary where leach residue fire assay results are pending

Table 4. Highlights of Reverse Circulation Results for this Release

(Includes holes previously reported for which the final total assay results are now available)

From To Length Uncut Grade(5) Cut Grade(6) Total
Zone Section Hole (m) (m) (m) (g/t) (g/t) Assay(7)
P11 48550 BBC1815 28.00 35.00 7.00 1.76 1.70
P16 44075 BBC2407 35.00 48.00 13.00 1.27 1.27
P8P9 2100 BBC2250 20.00 28.00 8.00 1.30 1.30
P8P9 2000 BBC2656 35.00 45.00 10.00 1.46 1.35 Pending
P8P9 1950 BBC2653 16.00 24.00 8.00 1.43 1.43 Pending
P8P9 1950 BBC2654 26.00 34.00 8.00 1.61 1.61 Pending
P8P9 1800 BBC2662 45.00 55.00 10.00 1.54 1.29 Pending
P8P9 1800 BBC2668 62.00 68.00 6.00 1.83 1.83 Pending
P8P9 1750 BBC2667 48.00 56.00 8.00 1.66 1.57 Pending
P8P9 1750 BBC2713 22.00 34.00 12.00 4.30 2.72 Pending
P8P9 1750 BBC2729 46.00 59.00 13.00 1.09 1.09 Pending
P8P9 1700 BBC2709 46.00 55.00 9.00 1.35 1.17
P8P9 1650 BBC2184 36.00 48.00 12.00 0.99 0.99
P8P9 1600 BBC2171 5.00 9.00 4.00 4.02 3.22
P8P9 1550 BBC2588 48.00 67.00 19.00 0.65 0.65
P8P9 1500 BBC2584 51.00 59.00 8.00 5.65 2.70
P8P9 1500 BBC2631 53.00 60.00 7.00 2.85 2.45
P8P9 1500 BBC2727 44.00 54.00 10.00 2.05 1.68 Pending
P8P9 1450 BBC2606 1.00 12.00 11.00 1.61 1.24
P8P9 1350 BBC2123 68.00 78.00 10.00 1.34 1.24
P8P9 1300 BBC2118 6.00 14.00 8.00 1.84 1.63
P8P9 1250 BBC2136 16.00 26.00 10.00 1.04 1.04
P8P9 1200 BBC2130 7.00 31.00 24.00 1.98 1.91
P8P9 1200 BBC2130 34.00 43.00 9.00 2.96 1.43
P8P9 1175 BBC2569 33.00 45.00 12.00 1.10 1.10
P8P9 1150 BBC2724 36.00 43.00 7.00 2.14 1.70 Pending
P8P9 1150 BBC2724 51.00 69.00 18.00 1.63 1.61 Pending
P8P9 1125 BBC2563 52.00 64.00 12.00 1.15 1.15
P8P9 1100 BBC2627 37.00 45.00 8.00 2.25 1.99
P8P9 1075 BBC2553 25.00 53.00 28.00 0.83 0.83
P8P9 1075 BBC2554 10.00 25.00 15.00 0.80 0.80
P8P9 1075 BBC2558 27.00 41.00 14.00 1.05 1.05
P8P9 1050 BBC2559 10.00 25.00 15.00 1.10 1.10
P8P9 1050 BBC2560 0.00 14.00 14.00 1.39 1.39
P8P9 1000 BBC2718 40.00 52.00 12.00 0.91 0.91 Pending
P8P9 900 BBC2550 20.00 25.00 5.00 2.65 2.63
P8P9 400 BBC2612 0.00 8.00 8.00 1.80 1.73
P8P9 350 BBC2490 9.00 22.00 13.00 0.84 0.84
Siga E 12700 BBC2317 24.00 29.00 5.00 2.21 2.08
Siga S 10450 BBC1414 17.00 53.00 36.00 1.02 1.02
(5) Weighted average grade of uncut individual assays
(6) Weighted average grade of individual assays cut to 5 g/t
(7) Composite width and grade are preliminary where leach residue fire assay results are pending

The mineralized intervals are based on a lower cut-off grade of 0.5 g/t, a minimal width of 3 m and up to a maximum of two consecutive meters of dilution being included. The true width of the mineralization is approximately 85% of the drill length intervals in Maga, P16, P17 and P8P9 areas, and to 95% of the drill length intervals in the Siga area. The half-core samples were collected by Orezone employees using a diamond saw. The core samples from the weathered (oxide) zone were prepared by Abilab Burkina s.a.r.l. (a subsidiary of ALS-Chemex), BIGS Global Burkina s.a.r.l and SGS Burkina Faso s.a.r.l., and then split by Orezone to 1 kg using Rotary Sample Dividers (RSDs). A 1 kg aliquot was analyzed for leachable gold at BIGS Global Burkina s.a.r.l in Ouagadougou, by bottle-roll cyanidation using a LeachWell catalyst. The samples from the fresh or sulphide zone were prepared by BIGS Global Burkina s.a.r.l, SGS Burkina Faso s.a.r.l. and Abilab Burkina s.a.r.l. in Ouagadougou and then split by Orezone to 1 kg using Rotary Sample Dividers (RSDs). A 1 kg aliquot was analyzed for leachable gold at BIGS Global Burkina s.a.r.l in Ouagadougou, by bottle-roll cyanidation using a LeachWell catalyst.

The RC drilling samples were divided by Orezone employees using Rotary Sample Dividers (RSDs). A 2 kg split was prepared by Abilab Burkina s.a.r.l. (a subsidiary of ALS-Chemex), BIGS Global Burkina s.a.r.l and SGS Burkina Faso s.a.r.l., and then split by Orezone to 1 kg using RSDs. A 1 kg aliquot was analyzed for leachable gold at BIGS Global Burkina s.a.r.l in Ouagadougou, by bottle-roll cyanidation using a LeachWell catalyst. The leach residues from all samples with a leach grade in excess of 0.2 g/t were prepared by BIGS Global Burkina s.a.r.l. and then split by Orezone to 50 g using Rotary Sample Dividers (RSDs). A 50 g aliquot was analyzed by fire assay at Abilab Burkina s.a.r.l. (a subsidiary of ALS-Chemex) or a 30 g aliquot at SGS Burkina Faso s.a.r.l.

Orezone employs a rigorous Quality Control Program (QCP) including a minimum of 10% standards, blanks and duplicates. This program was executed under the supervision of Pascal Marquis, SVP Exploration for Orezone, who is a Qualified Person under National Instrument 43-101 and approved the technical information in this release. A complete table of results and the NI 43-101 Bomboré Resource Report that describes the Bomboré resource model can be found at www.orezone.com.

About Orezone Gold Corporation

Orezone is a Canadian company with a gold discovery track record of +10 M oz and recent mine development experience in Burkina Faso, West Africa. Bomboré, the Company's 100% owned flagship project, is one of the largest gold deposits in the country and is situated 85 km east of the capital city, adjacent to an international highway. Resources are constrained within optimized open pit shells that span 11 km, and include 1.6 Moz indicated and 1.9 Moz inferred resources with an average drill depth of only 60 meters. The Company is currently completing a 215,000 m drill program to significantly expand resources and support the completion of feasibility studies in 2012. Orezone's goal is to develop Bomboré into a world-class deposit by the end of 2012 and become a mid-tier producer by 2015.

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" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements in this release include statements regarding, among others, the completion of a 215,000 m drill program; capital and operating cost estimates; gold production for the project; completion of a definitive feasibility study in Q4 2012; completion of a resource update in Q2 2012; commencement of production at the Bomboré Project; completion of metallurgical testing and social impact studies; and closing of the Sega sale transaction.

FORWARD-LOOKING STATEMENTS are based on certain assumptions, 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, the ability of contracted parties (including laboratories and drill companies to provide services as contracted); 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. Comparisons between any resource model or estimates with the subsequent drill results are preliminary in nature and should not be relied upon as potential qualified changes to any future resource updates or estimates.

Readers are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Readers should refer to the annual information form of Orezone for the year ended December 31, 2010 and other continuous disclosure documents filed by Orezone since January 1, 2011 available at www.sedar.com, for this detailed information, which is subject to the qualifications and notes set forth therein.

Contact Information