Orezone Gold Corporation
TSX : ORE

Orezone Gold Corporation

May 26, 2011 10:12 ET

Orezone Reports Additional Positive Drill Results at Bombore Gold Project

Grade continues to be better than expected and continuity improves at Siga South

OTTAWA, ONTARIO--(Marketwire - May 26, 2011) - Orezone Gold Corporation (TSX:ORE) is pleased to announce additional drill results from an ongoing 170,000 m drill program at its 100% owned Bomboré Gold Project in Burkina Faso, West Africa. Results include 27 core holes (4,303 m) and 205 reverse circulation (RC) holes (10,450 m), mostly from the Siga South area where the last resource estimate (Oct. 2010) was based only on widely spaced RC holes. Siga South represents the southern 1.6 km of the +11 km long Bomboré resource model. The RC drill results at Siga South indicate a similar width but significantly higher grades that expected (+65%) in the oxide zone. The core holes, many of which are still pending, also indicate a grade 24% higher than expected but widths are so far about 25% less than expected, yielding a grade-width product in line with the model in the sulphide zone.

"These results are quite positive," said Ron Little, President and CEO of Orezone. "If the trend continues we can expect an increase in the size and grade of the oxide resources, with the potential to lower strip ratios and improve economics. The limited core drilling indicates narrower widths and higher average grade in the sulphide zones, but it's simply too early to draw any definitive conclusions."

Highlights for each of the mineralized zones, from north to south, include:

Maga: 17% of the RC drilling and 38% of the core drilling has been completed. The mineralized zones defined by the 0.5 g/t lower cut-off are 76% of the modeled width in the oxide (weathered) zone, and 68% of the modeled width in the sulphide (unweathered, or fresh rock) zone, but the grade is 16% higher in the oxide zone and 7% higher in the sulphide zone.
P8/P9 No drilling yet to date.
Siga West The RC drilling is in progress with only 24% of the planned program left to report, including a portion of the gap between Siga West and Siga South. The width of the mineralized zone within the oxide zone (RC holes) is in line with the model, but the cut-grades (top cut of 5 g/t) are 37% higher than expected.
Siga South: The RC and core drilling in this area is largely completed, however most of the core results are still pending. The Siga South zone has been extended 150 m further south and is still open. The RC results to date indicate continuity between Siga South and Siga West by infilling the previous gaps to define a combined overall length of 3.5 km that is still open to the north and south. The width of the oxide zone (RC holes) is in line with the model, but the cut-grades (top cut of 5 g/t) are 65% higher than expected. The uncut grade is substantially higher and the clustering of the assays above 5 g/t suggests that a higher cut-off might be justified for this zone. The limited core results to date indicate the cut-grade is 24% higher than expected but the width of the sulphide zone is 25% less than expected. The southernmost 500 m of the Siga South zone may have limited sulphide extension at depth, however we expect better results from the area where the RC results have yielded grades better than expected and widths similar to the resource model.
P17:The RC and core drilling has been completed, but half of the core holes are still pending. Lateral extensions have not been identified, and although the width of the mineralized zone is 61% of the modeled width, the cut-grade is more than 200% higher than expected. The uncut grade is even higher and the clustering of the assays above 5 g/t suggests that a higher cut-off might be justified for this zone. The limited core drilling results available suggest a plunge to the north, which if confirmed by the results of the next three core holes, will justify more core drilling in this area.
P16:The RC and core drilling has been completed with all core holes still pending. Lateral extensions have not been identified, but the width of the mineralized zone exceeds the modeled width by 14%, and the cut-grade is more than 200% higher than expected.

"This round of results has significantly improved the continuity of the mineralization of the Siga South area and has confirmed that Siga South is a southern extension of the Siga West zone, resulting in an overall strike length of 3.5 km that is still open," said Dr. Pascal Marquis, VP Exploration for Orezone.

To date, Orezone has completed 17,700 m of core drilling and 26,500 m of RC drilling, which represents about 50% of the total it planned to complete by July 2011 in order to proceed with a resource update in Q4 2011. Two additional core drills are expected to arrive in June so that five core rigs and one RC rig will be utilized until Q1 2012 to complete the entire $24 million, 170,000 m program. A second resource update will be completed in Q2 2012. Table 1 summarizes the above, and provides a comparison of the results to date with the October 2010 resource model.

Table 1: Comparison of Current Program with 2010 Resource Model
Current ProgramComparison with
Au g/tmodelAu Resources
%
holesmetersCompleteCut1UncutWidthGrade% All2% Ind3
Maga - RC473,45517%1.341.3876%116%
12.3%19.5%
Maga - DD507,70238%1.091.1968%107%
Siga W - RC221,10624%0.800.80101%137%31.0%26.2%
Siga S - RC1437,25393%0.982.63101%165%
8.7%0.0%
Siga S - DD142,20326%0.991.0275%124%
P17 - RC18888100%1.672.0661%204%
0.4%1.0%
P17 - DD345550%1.621.62
P16 - RC201,096100%1.351.44114%232%0.4%0.0%

Bomboré is the largest undeveloped gold deposit in Burkina Faso with 1.6 Moz Indicated and 1.9 Moz of Inferred resources constrained within Whittle pit shells (October 2010). Over 80% of this resource occurs above a depth of 80 m with an average depth of drilling of only 60 m. The geological model indicates that a substantial increase in the resources could be achieved by increasing the average depth of drilling from 60 to 120 m and is the focus of the 170,000 m drill program. Bomboré has exceptional infrastructure for this part of Africa as it is located just 85 km from the capital city, adjacent to a paved highway, access to local power and available water. Orezone and consultants G Mining Services Inc. of Montreal are working to complete a Preliminary Economic Assessment of Bomboré in Q2 2011 as an interim step to completing a Pre-Feasibility Study by year end and if positive, a Full Feasibility Study for a large tonnage open pit Carbon in Leach ("CIL") operation in 2012. The following tables summarize the latest results.

Table 2 Break down of drilling meterage for this release
Core RC
Zone # of Meters # of Meters
holes drilled holes drilled
Maga 10 1,645 2 107
Siga West 0 0 22 1,106
Siga South 14 2,203 143 7,253
P17 3 455 18 888
P16 0 0 20 1,096
TOTAL 27 4,303 205 10,450

1 Individual assays cut to 5 g/t

2 % of Total October 2010 Resources

3 % of Indicated October 2010 Resources

Table 3 Highlights of expansion core hole results for this release4
FromToLengthCut Au1Uncut Au5Total
ProspectSectionHole(m)(m)(m)(g/t)(g/t)Assay6
Maga3000BBD014182.5094.5012.001.02
Maga2975BBD014412.5017.505.001.554.40Pending
P1744150BBD020348.5062.0013.501.96
P1744150BBD020366.5084.5018.001.36
Siga S10400BBD016548.0066.0018.000.77
Siga S10400BBD0165106.50112.506.001.72
Siga S10400BBD0166143.50154.0010.501.17
Siga S10350BBD0164111.00124.5013.500.89
Siga S10300BBD016367.5078.0010.502.02
Siga S10200BBD016130.0040.0010.001.322.31Pending
Siga S9900BBD015439.0045.506.501.58
Siga S9900BBD015450.0065.0015.001.08
Siga S9850BBD015341.0046.505.501.82
Table 4 Highlights of infill RC results for this release4
FromToLengthCut Au1Uncut Au7Total
ProspectSectionHole(m)(m)(m)(g/t)(g/t)Assay8
P1644200BBC132227.0048.0021.001.391.44
P1644200BBC1357925.0038.0013.001.401.72
P1644200BBC1358744.0050.006.002.392.67
P1644150BBC13598.0035.0027.000.86
P1644150BBC1359744.0056.0012.000.84
P1644100BBC132122.0046.0024.002.342.69
P1644100BBC136318.0029.0011.001.80
P1744250BBC131526.0036.0010.002.843.67
P1744250BBC131539.0045.006.002.79
P1744250BBC13720.0014.0014.002.573.14
P1744150BBC13124.0015.0011.001.04
P1744100BBC13735.0010.005.001.612.79
P1744100BBC137314.0034.0020.001.582.27
Siga S11200BBC14939.0035.0026.000.90Pending
Siga S10900BBC1462733.0040.007.002.242.41Pending
Siga S10850BBC145236.0041.005.001.592.60Pending
Siga S10750BBC14445.0018.0013.000.91Pending

4 Minimum width of 3 m above lower cut-off of 0.3 g/t. Preliminary width and grade if total assay is pending.

5 Individual assays uncut

6 Leach residue assays. Preliminary width and grade where those results are pending.

7 Individual assays uncut

8 Leach residue assays. Preliminary width and grade where those results are pending.

9 Stopped in mineralization

From To Length Cut Au1Uncut Au7Total
Prospect Section Hole (m) (m) (m) (g/t) (g/t) Assay8
Siga S 10650 BBC1430 26.00 42.00 16.00 1.15 Pending
Siga S 10600 BBC1437 10.00 43.00 33.00 1.24 Pending
Siga S 10550 BBC1425 6.00 45.00 39.00 1.34 1.37 Pending
Siga S 10550 BBC1426 5.00 20.00 15.00 1.22 Pending
Siga S 10500 BBC1420 5.00 22.00 17.00 1.09 Pending
Siga S 10500 BBC1420 29.00 47.00 18.00 1.20 Pending
Siga S 10450 BBC1413 44.00 52.00 8.00 1.31 Pending
Siga S 10450 BBC1414717.00 53.00 36.00 0.86 Pending
Siga S 10450 BBC1415 10.00 17.00 7.00 1.99 Pending
Siga S 10400 BBC1404 11.00 22.00 11.00 0.93 Pending
Siga S 10400 BBC1406 16.00 30.00 14.00 0.85 Pending
Siga S 10400 BBC1406739.00 50.00 11.00 1.00 Pending
Siga S 10400 BBC1407 14.00 39.00 25.00 1.91 2.21 Pending
Siga S 10350 BBC1401 33.00 42.00 9.00 1.59 Pending
Siga S 10350 BBC1403734.00 53.00 19.00 1.10 Pending
Siga S 10300 BBC1396 27.00 41.00 14.00 0.85 Pending
Siga S 10300 BBC1396 44.00 48.00 4.00 2.03 3.39 Pending
Siga S 10300 BBC1397 1.00 27.00 26.00 1.06 Pending
Siga S 10250 BBC1391 37.00 50.00 13.00 0.81 Pending
Siga S 10250 BBC1393 22.00 39.00 17.00 2.09 97.10 Pending
Siga S 10200 BBC1388 1.00 23.00 22.00 1.56 4.21
Siga S 10100 BBC1384744.00 50.00 6.00 1.67 5.50
Siga S 10000 BBC1346 3.00 14.00 11.00 0.98
Siga S 9900 BBC1339 2.00 15.00 13.00 1.54 1.73
Siga S 9850 BBC1335 35.00 48.00 13.00 1.25
Siga S 9850 BBC1336 10.00 22.00 12.00 1.16
Siga S 9750 BBC1333 8.00 20.00 12.00 0.95 7.18
Siga S 9750 BBC1378747.00 50.00 3.00 3.06 10.38
Siga S 9700 BBC1330 13.00 33.00 20.00 0.63
Siga W 11350 BBC1507 29.00 47.00 18.00 1.07 Pending

The mineralized intervals are based on a lower cut-off grade of 0.5 g/t, a minimal width of 3 m and less than two consecutive meters of dilution being included. The true width of the mineralization is equal to about 85% of the drill length intervals. 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) and SGS Burkina Faso s.a.r.l., and then split by Orezone to 1kg using Rotary Sample Dividers (RSDs). A 1kg aliquot was analyzed for leachable gold at BIGS Global Burkina s.a.r.l in Ouagadougou, by bottle-roll cyanidation using a LeachWellcatalyst. The samples from the fresh or sulphide zone were prepared by BIGS Global Burkina s.a.r.l and SGS Burkina Faso s.a.r.l. in Ouagadougou and then split by Orezone to 50g using Rotary Sample Dividers (RSDs). A 50g aliquot was analyzed by fire assay at Abilab Burkina s.a.r.l. (a subsidiary of ALS-Chemex).

The RC drilling samples were divided by Orezone employees using Rotary Sample Dividers (RSDs). A 2kg split was prepared by Abilab Burkina s.a.r.l. (a subsidiary of ALS-Chemex) and SGS Burkina Faso s.a.r.l., and then split by Orezone to 1kg using RSDs. A 1kg aliquot was analyzed for leachable gold at BIGS Global Burkina s.a.r.l in

Ouagadougou, by bottle-roll cyanidation using a LeachWellcatalyst. 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 50g using Rotary Sample Dividers (RSDs). A 50g aliquot was analyzed by fire assay at Abilab Burkina s.a.r.l. (a subsidiary of ALS-Chemex).

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 Dr. Pascal Marquis, V.P. 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 Bombore Resource Report that describes the Bombore resource model can be found at www.orezone.com.

Orezone is a gold exploration and development company with significant gold resources in Burkina Faso and more than 15 years of operating experience in West Africa, one of the world's fastest growing gold producing regions. Orezone is focused on developing Bomboré, the second largest gold deposit in the country, and its pipeline of advanced gold projects. Orezone's mission is to create wealth by discovering and developing gold resources in an efficient and responsible manner for the benefit of its shareholders and other stakeholders.

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 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.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

  • Orezone Gold Corporation
    Ron Little
    CEO
    613-241-3699 / Toll Free: 888-673-0663
    rlittle@orezone.com

    Orezone Gold Corporation
    Pascal Marquis
    V.P. Exploration
    613-241-3699 / Toll Free: 888-673-0663
    pmarquis@orezone.com