Orezone Gold Corporation
TSX : ORE

Orezone Gold Corporation

November 21, 2011 16:27 ET

Orezone Reports Continued Positive Oxide Results at Bombore Gold Project

Drilling identifies oxide and sulphide zone extensions outside of 2010 resource pit shells

OTTAWA, ONTARIO--(Marketwire - Nov. 21, 2011) - Orezone Gold Corporation (TSX:ORE) announces additional positive oxide and sulphide drill results at depth from an ongoing 170,000 m infill and expansion drill program at its 100% owned Bomboré Gold Project in Burkina Faso, West Africa. Results include 142 reverse circulation (RC) holes (8,518 m) and 67 diamond drill (DD) holes (9,249 m) from the southern and northern portions of the 11 km long Bomboré resource. The results from the near surface oxide zone, both within and outside the pit shells that constrain the 2010 resource, continue to be positive and indicate that a significant expansion and upgrade of the oxide resources can be expected. The oxide drill results located within the 2010 pit shells continue to maintain an average cut grade of 1.1 g/t while the oxide zone extensions discovered outside of the pit shells average a cut grade of 0.9 g/t.

Early indications from core drilling are that mineralization continues beneath the oxide resources into the sulphides over approximately half of the strike length tested. The best sulphide results outside of the 2010 pit shells are from the Maga,Siga South and Siga West zones. Compared to the 2010 model (1.2 g/t), the sulphide results indicate a slightly lower average cut grade of 1.1 g/t within the pit shells and 1.0 g/t outside of the pit shells. Approximately 75% of the RC results and 50% of the core results have been received to date, with the sulphide results mostly from the southern half of the deposit and where resources were predominantly in the Inferred category. The remaining 50% of the sulphide results are to come primarily from the northern half of the deposit (mostly Indicated resources) where grades and continuity were more robust than the southern half in the 2010 resource model.

Approximately 40% of the mineralized intervals reported from the ongoing program are from outside of the 2010 resource pit shells where the model projections of the grades and widths of the mineralization were limited or non-existent. Comparisons on a percentage basis of the current drill results with what was expected from the model, as presented in the last several press releases, are therefore not meaningful and will no longer be reported. Cumulative average grades of all composited drill results both within and outside the pit shells, however, remain an accurate and practical method to monitor the drill results on an ongoing basis (see table 1 & 2) until the resources are updated.

With five core drill rigs in operation and one RC rig to restart after several weeks of repairs, the program is on track to complete a minimum of 70,000 m of DD and 80,000 m of RC drilling by year end. Drilling and analytical results will continue through 2012 with a full resource update planned for release in Q2, and a Definitive Feasibility Study in Q4. With the significant backlog of samples in the laboratories (currently 32,000 samples) and small delays in drilling, a delay of one quarter in the project timeline from previous estimates is expected.

The June 2011 positive Preliminary Economic Assessment (PEA) using $1000 pit shells and $1100 gold confirmed the project could be developed as a heap leach (oxide material only) or a standard carbon in leach (CIL) operation (oxide and sulphide material). A detailed metallurgical study is now underway to confirm the potential of building a CIL operation in two phases. Phase 1, an oxide-only plant, is envisioned to produce more than 150,000 oz/year with recoveries over 90%, with lower capital costs, lower mining and processing costs and lower strip ratios than what was outlined in the PEA. A Phase 2 plant expansion to process the sulphide ores could be funded from the project cash flows and further increase gold production. "Based on the 2011 drill results received to date, Orezone is expecting a significant expansion and upgrade in oxide resources and potentially lower strip ratios," said Ron Little, CEO for Orezone. "These improvements, combined with a two-phase project build, could result in an improvement to the project economics demonstrated in the 2011 PEA."

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 24 % 1.072 1.072
Maga - RC 50 3,455 17 % 1.367 1.329
Maga - DD 50 7,702 38 % 1.186 1.109
P8P9 - RC 284 17,494 62 % 1.355 1.078
P8P9 - DD 0 0 0 %
P11 - RC 212 10,918 85 % 0.991 0.950
P11- DD 22 3,111 28 % 1.048 1.004
Siga E - RC 169 9,163 95 % 1.084 0.970
Siga E - DD 67 9,416 91 % 1.294 1.067
Siga W - RC 131 6,646 86 % 0.901 0.881
Siga W - DD 63 9,271 89 % 0.909 0.883
Siga S - RC 208 10,517 100 % 2.210 0.977
Siga S - DD 60 9,619 100 % 1.124 1.044
P17 - RC 18 888 62 % 2.086 1.710
P17 - DD 7 1,095 38 % 2.049 1.724
P16 - RC 24 1,296 84 % 1.441 1.369
P16 - DD 7 1,001 60 % 2.586 1.822
All - RC 1,096 60,377 71 % 1.432 1.050
All - DD 280 41,867 49 % 1.126 1.026
(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. Comparison of Current Program with the 2010 Resource Model



Area

Pit
Shell


Type
October 2010 Model
Au > 0.5 g/t
2011 Drilling
Au > 0.5 g/t
Composite
Total
m
Uncut
Grade
g/t
Cut
Grade
g/t
Composite
Total
m
Uncut
Grade
g/t
Cut
Grade
g/t
North In Weathered 6,734 1.30 1.11 3,176 1.32 1.15
In Sulfide 623 2.19 1.33 384 1.26 1.18
Out Weathered 808 0.73 0.73 408 1.48 0.93
Out Sulfide 500 0.92 0.88 411 1.20 1.11
South In Weathered 2,124 1.21 1.05 3,252 1.71 1.03
In Sulfide 807 1.38 1.06 1,322 1.16 1.04
Out Weathered 272 1.29 1.07 1,484 1.00 0.94
Out Sulfide 283 0.78 0.77 2,706 1.05 0.96
All In Weathered 8,858 1.27 1.09 6,428 1.52 1.09
In Sulfide 1,430 1.73 1.18 1,706 1.18 1.07
Out Weathered 1,080 0.87 0.82 1,891 1.10 0.94
Out Sulfide 783 0.87 0.84 3,117 1.07 0.98

Table 3. Breakdown of Drilling Meterage for this Release

Zone Diamond Drill Reverse Circulation
# of holes meters # of holes meters
Maga 0 0 0 0
CFU 0 0 0 0
P8P9 0 0 76 4,927
P11 17 2,467 34 1,841
Siga W 31 3,995 8 408
Siga E 19 2,787 20 1,142
Siga S 0 0 0 0
P16 0 0 4 200
P17 0 0 0 0
TOTAL 67 9,249 142 8,518

Table 4. Highlights of Diamond Drill Hole Results for this Release

(Note: Includes holes previously reported for which the final assay results are now available, as well as new holes.)


Zone

Section

Hole #
From
(m)
To
(m)
Length
(m)
Uncut
Grade(2)
(g/t)
Cut
Grade(3)
(g/t)
Total
Assay(4)
Siga W 12900 BBD0283 53.00 56.00 3.00 3.44 3.44 Pending
Siga W 12100 BBD0271 111.00 124.50 13.50 1.27 1.27
Siga W 12050 BBD0462 51.00 69.00 18.00 0.68 0.68 Pending
Siga W 11950 BBD0461 28.00 45.50 17.50 0.71 0.71 Pending
Siga W 11800 BBD0311 129.00 143.50 14.50 0.79 0.79
Siga W 11600 BBD0453 24.00 33.00 9.00 1.13 1.13 Pending
Siga W 11600 BBD0454 9.00 28.50 19.50 0.93 0.93 Pending
Siga W 11600 BBD0454 79.00 94.00 15.00 0.86 0.86 Pending
Siga W 11550 BBD0452 79.00 84.00 5.00 3.22 2.59 Pending
Siga E 12750 BBD0411 10.50 15.00 4.50 2.25 2.24
Siga E 12600 BBD0267 83.00 93.50 10.50 1.41 1.41
Siga E 12600 BBD0267 99.50 105.50 6.00 2.70 1.92
Siga E 12550 BBD0407 0.00 9.50 9.50 1.26 1.26
Siga E 12550 BBD0407 44.00 54.50 10.50 1.64 1.64
Siga E 12550 BBD0407 71.00 78.50 7.50 1.60 1.60
Siga E 12550 BBD0408 155.00 161.00 6.00 2.46 2.13
Siga E 12550 BBD0408 179.00 194.00 15.00 1.26 1.26
Siga E 12550 BBD0409 50.00 63.00 13.00 1.17 0.94
Siga E 12500 BBD0405 185.00 200.00 15.00 0.81 0.81 Pending
Siga E 12450 BBD0359 62.00 71.00 9.00 11.82 1.48
Siga E 12450 BBD0359 90.50 99.50 9.00 3.34 1.73
Siga E 12450 BBD0360 159.00 169.50 10.50 1.28 1.28
Siga E 12400 BBD0403 37.50 45.50 8.00 1.98 1.84
Siga E 12350 BBD0401 24.00 28.00 4.00 4.63 4.31
Siga E 12300 BBD0357 113.00 120.50 7.50 1.35 1.35
Siga E 12200 BBD0245 0.00 9.50 9.50 2.07 1.89
Siga E 12200 BBD0246 29.50 38.50 9.00 1.94 1.94
Siga E 12200 BBD0246 43.50 63.00 19.50 6.05 2.54
Siga E 12150 BBD0243 26.50 48.00 21.50 1.01 1.02
P11 48850 BBD0339 19.00 28.00 9.00 2.46 1.57 Pending
P11 48300 BBD0368 54.00 58.00 4.00 2.69 2.64 Pending
(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 5. Highlights of Reverse Circulation Results for this Release

(Note: Includes holes previously reported for which the final assay results are now available, as well as new holes.)


Zone

Section

Hole
From
(m)
To
(m)
Length
(m)
Uncut
Grade(5)
(g/t)
Cut
Grade(6)
(g/t)
Total
Assay(7)
P11 50100 BBC2002 31.00 37.00 6.00 1.74 1.67
P11 50000 BBC1998 19.00 23.00 4.00 6.36 3.65
P11 50000 BBC1998 26.00 41.00 15.00 2.39 1.75
P11 48800 BBC2370 0.00 4.00 4.00 3.10 2.58
P16 44150 BBC2405 12.00 22.00 10.00 1.63 1.63 Pending
P16 44150 BBC2406 3.00 11.00 8.00 2.62 2.53 Pending
P16 44150 BBC2406 18.00 32.00 14.00 1.35 1.35 Pending
P16 44075 BBC2407 34.00 48.00 14.00 1.24 1.24 Pending
P8P9 2100 BBC2249 45.00 49.00 4.00 3.28 3.03 Pending
P8P9 2100 BBC2251 32.00 45.00 13.00 1.94 1.56 Pending
P8P9 2050 BBC2246 0.00 8.00 8.00 4.49 2.48 Pending
P8P9 1950 BBC2230 34.00 40.00 6.00 3.26 2.63 Pending
P8P9 1900 BBC2217 21.00 24.00 3.00 5.80 3.76
P8P9 1900 BBC2218 7.00 41.00 34.00 1.49 1.49
P8P9 1900 BBC2221 1.00 29.00 28.00 2.37 2.27
P8P9 1900 BBC2221 47.00 66.00 19.00 6.19 1.94
P8P9 1850 BBC2293 6.00 19.00 13.00 0.92 0.92 Pending
P8P9 1850 BBC2296 25.00 33.00 8.00 1.29 1.29 Pending
P8P9 1800 BBC2207 23.00 32.00 9.00 3.58 1.77 Pending
P8P9 1700 BBC2193 14.00 31.00 17.00 1.12 1.12 Pending
P8P9 1650 BBC2182 56.00 71.00 15.00 1.09 1.09
P8P9 1650 BBC2184 36.00 48.00 12.00 0.99 0.99
P8P9 1600 BBC2171 5.00 9.00 4.00 4.16 3.30
P8P9 1550 BBC2175 4.00 21.00 17.00 1.53 1.33
P8P9 1550 BBC2175 28.00 43.00 15.00 2.39 1.42
P8P9 1550 BBC2177 49.00 66.00 17.00 1.09 1.01
P8P9 1500 BBC2155 36.00 44.00 8.00 2.87 1.56
P8P9 1500 BBC2165 7.00 25.00 18.00 0.70 0.71
P8P9 1500 BBC2166 19.00 38.00 19.00 0.82 0.83
P8P9 1500 BBC2167 2.00 12.00 10.00 1.32 1.32
P8P9 1450 BBC2154 39.00 57.00 18.00 1.01 1.01
P8P9 1450 BBC2154 60.00 64.00 4.00 3.50 3.20
P8P9 1450 BBC2168 15.00 28.00 13.00 1.14 1.14
P8P9 1400 BBC2127 40.00 46.00 6.00 9.61 2.08
P8P9 1400 BBC2128 10.00 18.00 8.00 4.77 2.12
P8P9 1400 BBC2148 47.00 65.00 18.00 1.78 1.54
P8P9 1350 BBC2123 68.00 78.00 10.00 1.27 1.23
P8P9 1350 BBC2124 23.00 28.00 5.00 6.83 3.24
P8P9 1350 BBC2140 70.00 81.00 11.00 1.11 1.11
P8P9 1350 BBC2141 59.00 73.00 14.00 0.96 0.96
P8P9 1350 BBC2142 18.00 29.00 11.00 1.18 1.18
P8P9 1350 BBC2143 24.00 43.00 19.00 1.00 1.00
P8P9 1350 BBC2143 50.00 61.00 11.00 1.14 1.14
P8P9 1300 BBC2116 34.00 40.00 6.00 6.29 4.06
P8P9 1300 BBC2118 6.00 14.00 8.00 1.84 1.63
P8P9 1300 BBC2137 8.00 16.00 8.00 1.50 1.50
P8P9 1300 BBC2137 33.00 45.00 12.00 1.34 1.34
P8P9 1300 BBC2139 12.00 24.00 12.00 1.24 1.24
P8P9 1250 BBC2111 40.00 49.00 9.00 1.95 1.86
P8P9 1250 BBC2112 14.00 25.00 11.00 2.85 1.71
P8P9 1250 BBC2135 42.00 53.00 11.00 1.96 1.96
P8P9 1250 BBC2136 16.00 26.00 10.00 1.05 1.05
P8P9 1200 BBC2104 76.00 86.00 10.00 1.68 1.11
P8P9 1200 BBC2106 29.00 42.00 13.00 1.80 1.61
P8P9 1200 BBC2107 9.00 16.00 7.00 2.24 1.73
P8P9 1200 BBC2130 7.00 43.00 36.00 2.15 1.69
P8P9 1200 BBC2134 14.00 17.00 3.00 4.23 3.37
P8P9 1150 BBC2092 62.00 69.00 7.00 5.14 3.34
P8P9 1150 BBC2093 38.00 49.00 11.00 4.54 2.18
P8P9 1150 BBC2133 8.00 17.00 7.00 4.16 2.36
P8P9 1100 BBC2082 35.00 52.00 17.00 0.95 0.95
P8P9 1100 BBC2085 0.00 7.00 7.00 1.61 1.61
P8P9 1100 BBC2086 16.00 44.00 28.00 1.34 1.06
P8P9 1100 BBC2097 22.00 27.00 5.00 2.15 2.15
P8P9 1100 BBC2097 32.00 49.00 17.00 0.89 0.88
P8P9 1050 BBC2077 35.00 48.00 13.00 0.95 0.95
P8P9 1050 BBC2078 29.00 41.00 12.00 1.28 1.28
P8P9 1000 BBC2073 33.00 44.00 11.00 1.64 1.19
P8P9 1000 BBC2076 18.00 32.00 14.00 0.78 0.79
P8P9 900 BBC2060 1.00 20.00 19.00 0.59 0.59
P8P9 850 BBC2053 9.00 47.00 38.00 1.03 0.93
P8P9 850 BBC2054 0.00 16.00 16.00 0.80 0.80
P8P9 800 BBC2045 10.00 38.00 28.00 1.88 1.72
P8P9 200 BBC2011 15.00 28.00 13.00 1.22 1.17
Siga E 12700 BBC2317 24.00 29.00 5.00 2.21 2.08
Siga E 12450 BBC2329 41.00 46.00 5.00 2.19 2.16
Siga E 12300 BBC2333 40.00 50.00 10.00 1.25 1.25
Siga E 12200 BBC2336 22.00 26.00 4.00 8.25 2.79 Pending
(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 equal to about 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 $24 M, 170,000 meter 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 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," "project economics," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may", "will" or "could" occur. Forward-looking statements in this release include statements regarding, among others, the completion of a 170,000m drill program; capital and operating cost estimates; gold production for the project; completion of a feasibility study in 2012; completion of a resource update in early 2012; commencement of production at the Bomboré Project; and completion of metallurgical testing and social impact studies.

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

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

    Orezone Gold Corporation
    Pascal Marquis
    SVP Exploration
    (613) 241-3699
    Toll Free: (888) 673-0663
    pmarquis@orezone.com