Orezone Gold Corporation
TSX : ORE

Orezone Gold Corporation

July 26, 2011 08:00 ET

Orezone Reports Higher Gold Grades and Improved Continuity at Bombore

OTTAWA, ONTARIO--(Marketwire - July 26, 2011) - Orezone Gold Corporation (TSX:ORE) is pleased to announce additional positive drill results 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 265 reverse circulation (RC) holes (13,914 m) and 34 core holes (5,387 m), from the southern 5 km of the 11 km Bomboré resource. The objectives of the program are to expand and upgrade sulphide resources with core drilling at depth, as well as to upgrade and expand near-surface oxide resources with reverse circulation drilling (RC). With 40% of the drilling completed to date, the results have been successful at achieving both objectives and will contribute to improving the economics of the project.

This is the fourth release of drill results that indicates higher grades (+38% in the oxide, +29% in the sulphide) and narrower widths (72% in the oxide, 62% in the sulphide) compared to the 2010 resource model. The mineralized zones at depth continue to be in line with previous near surface drilling and the 2010 resource model constrained within Whittle pit shells. The extensions of the mineralization discovered to date below the pit shells will result in a significant increase in sulphide resources within the Maga and Siga South areas. Drilling also demonstrates increased continuity between pit shells along strike that will result in lower open pit mining strip ratios.

Drilling has confirmed that Siga West connects with Siga South resulting in a 3.7 km continuous zone with a vertical depth extent of up to 170 m. The zone remains open at depth and along strike, and warrants further drilling. In the 2010 resource model Siga South was 1.6 km of the 11 km Bomboré resource, supported only by widely-spaced drill holes, and was classified as an inferred resource. With the improved continuity and grades along the 3.7 km Siga South-West zone, there is obvious potential to significantly increase and upgrade the total resources in this area.

"The drill results confirm that the gold mineralization for the 2010 resource model, which was based on an average drill depth of 60 m, continues to depths of up to 170 m," said Ron Little CEO for Orezone. "They also underscore the potential to significantly expand and upgrade resources as well as to improve upon the preliminary economics of the project announced in June 2011.

The above drill results and conclusions are positive but are preliminary and may be further improved as a significant number of fire assay results for the leach sample residues are still pending. Positive residue results would add to the overall composite widths and metal inventory above 0.5 g/t.

The following table 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

Total Program Statistics Average Grade Comparison with 2010 Resource Model
Zone holes meters % Complete Uncut
(g/t)
Cut(1)
(g/t)
Cut Grade
(g/t)
Width
(m)
Maga – RC 50 3,455 17% 1.38 1.34 116% 77%
Maga – DD 50 7,702 38% 1.19 1.11 130% 60%
CFU – DD 4 653 24% 1.11 1.11
P17 – RC 18 888 100% 2.06 1.69 185% 43%
P17 – DD 7 1,095 100% 2.05 1.73 124% 77%
P16 - RC 20 1,096 100% 1.44 1.35 243% 105%
P16 – DD 7 1,001 100% 2.18 1.80 252% 87%
P11 - RC 16 857 15% 0.85 0.85
Siga S - RC 189 9,567 91% 2.39 1.00 138% 109%
Siga S – DD 31 4,870 50% 1.29 1.08 128% 77%
Siga W – RC 107 5,401 92% 0.91 0.89 145% 53%
Siga W – DD 2 427 7% 1.43 1.43
Siga E – RC 118 6,448 84% 1.07 0.97 136% 52%
All – RC 518 27,712 32% 1.61 1.07 138% 72%
All - DD 101 15,747 19% 1.29 1.14 129% 62%

Table 2 Breakdown of Drilling Meterage for this Release

Zone Core RC
# of holes m # of holes m
CFU 4 653 0 0
Siga W 2 427 85 4,295
Siga S 17 2,667 46 2,314
Siga E 0 0 118 6,448
P11 0 0 16 857
P16 7 1,001 0 0
P17 4 640 0 0
Total 34 5,387 265 13,914
(1) Weighted average grade of individual assays cut to 5 g/t

"The improved continuity that has been demonstrated along the southern half of the Bomboré deposit is the most important result of the recent drilling. Additional expansion and infill drilling is warranted at depth, along strike, and along newly discovered hangingwall zones in the Siga South area," said Pascal Marquis, SVP Exploration for Orezone. "The discovery of several near-surface, parallel mineralized zones to the east of the Siga South zone also suggests that the P11-Siga East mineralization may extend into the Siga South area, and contribute to a further expansion of the oxide resource at Bomboré."

Table 3: Highlights of Core Hole Results for this Release

From To Length Uncut
Grade
(2)
Cut
Grade
(3)
Total
Zone Section Hole # (m) (m) (m) (g/t) (g/t) Assay(4)
CFU 3350 BBD0149 3.00 9.00 6.00 1.79 1.79
Maga 2975 BBD0144 12.50 17.50 5.00 4.40 2.24 Pending
P16 44300 BBD0213 99.50 108.50 9.00 4.85 3.42
P16 44300 BBD0213 128.00 140.00 12.00 2.49 1.86
P16 44250 BBD0212 76.00 85.00 9.00 1.83 1.33 Pending
P16 44250 BBD0212 97.00 121.00 24.00 1.73 1.73 Pending
P16 44250 BBD0212 133.00 140.50 7.50 1.79 1.50 Pending
P17 44200 BBD0204 143.00 146.00 3.00 10.52 5.00
Siga S 10650 BBD0181 92.00 123.50 31.50 1.12 1.12 Pending
Siga S 10650 BBD0182 124.00 167.50 43.50 1.31 1.20 Pending
Siga S 10600 BBD0175 1.50 15.00 13.50 0.97 0.97 Pending
Siga S 10600 BBD0175 49.00 86.00 37.00 1.19 1.19 Pending
Siga S 10600 BBD0176 84.50 120.50 36.00 1.12 1.12 Pending
Siga S 10600 BBD0177 3.50 8.50 5.00 5.32 3.25 Pending
Siga S 10600 BBD0177 128.00 158.00 30.00 0.94 0.94 Pending
Siga S 10600 BBD0179 184.00 211.00 27.00 0.92 0.92 Pending
Siga S 10600 BBD0179 214.00 230.50 16.50 1.74 1.68 Pending
Siga S 10550 BBD0172 88.00 110.50 22.50 2.31 1.90 Pending
Siga S 10550 BBD0173 27.50 36.00 8.50 1.64 1.64 Pending
Siga S 10550 BBD0173 49.50 68.50 19.00 0.92 0.92 Pending
Siga S 10550 BBD0174 153.00 172.50 19.50 0.96 0.96 Pending
Siga S 10550 BBD0174 175.50 193.50 18.00 1.49 1.41 Pending
Siga S 10500 BBD0168 6.00 25.50 19.50 2.01 1.77 Pending
Siga S 10500 BBD0169 46.00 65.00 19.00 1.02 1.02 Pending
Siga S 10500 BBD0169 69.00 86.50 17.50 1.94 1.67 Pending
Siga S 10500 BBD0170 85.00 109.50 24.50 0.77 0.77 Pending
Siga S 10500 BBD0170 117.00 129.00 12.00 14.51 2.07 Pending
Siga S 10500 BBD0171 155.50 182.50 27.00 0.96 0.96 Pending
Siga S 10450 BBD0167 142.00 160.00 18.00 1.53 1.43 Pending
Siga S 10400 BBD0165 31.50 45.50 14.00 1.03 1.03
Siga S 10250 BBD0162 54.00 70.00 16.00 0.91 0.91 Pending
Siga S 10200 BBD0161 30.00 40.00 10.00 2.81 1.52 Pending
Siga S 9900 BBD0154 39.00 45.50 6.50 1.58 1.58 Pending
Siga S 9900 BBD0154 50.00 65.00 15.00 1.08 1.08 Pending
Siga S 9850 BBD0153 41.00 46.50 5.50 1.82 1.82 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 fire assay residue results are pending

The RC drill holes confirm the continuity of the mineralized zones in the surface oxide material. These results (Table 4) complement RC results reported in May for Siga West and Siga South that indicated the cut grades (top cut of 5 g/t) are higher than expected, with widths similar to those expected in the model in the Siga South zone and narrower than expected in the Siga West zone.

Table 4: Highlights of RC Results for this Release

From To Length Uncut
Grade
(5)
Cut
Grade
(6)
Total
Zone Section Hole (m) (m) (m) (g/t) (g/t) Assay(7)
P17 44100 BBC1373 14.00 34.00 20.00 2.27 1.67
Siga E 12600 BBC1703 15.00 29.00 14.00 0.83 0.83 Pending
Siga E 12550 BBC1699 12.00 30.00 18.00 0.66 0.66 Pending
Siga E 12550 BBC1701 9.00 20.00 11.00 1.06 1.06 Pending
Siga E 12500 BBC1695 1.00 5.00 4.00 4.01 2.85 Pending
Siga E 12450 BBC1690 11.00 37.00 26.00 0.68 0.68 Pending
Siga E 12450 BBC1691 2.00 14.00 12.00 1.08 1.08 Pending
Siga E 12450 BBC1691 23.00 39.00 16.00 1.10 1.10 Pending
Siga E 12400 BBC1689 0.00 26.00 26.00 1.31 1.31 Pending
Siga E 12200 BBC1615 30.00 33.00 3.00 4.98 4.28
Siga E 12150 BBC1617 32.00 49.00 17.00 1.19 1.19
Siga E 12050 BBC1626 23.00 34.00 11.00 6.07 1.80 Pending
Siga E 12050 BBC1627 0.00 15.00 15.00 1.27 1.27 Pending
Siga E 12050 BBC1627 37.00 50.00 13.00 0.81 0.81 Pending
Siga E 12000 BBC1629 31.00 37.00 6.00 2.02 2.02 Pending
Siga E 12000 BBC1630 0.00 14.00 14.00 1.67 1.67 Pending
Siga E 12000 BBC1651 34.00 53.00 19.00 0.77 0.77 Pending
Siga E 11850 BBC1646 22.00 35.00 13.00 1.30 1.14 Pending
Siga E 11450 BBC1673 30.00 47.00 17.00 0.72 0.72 Pending
Siga S 11250 BBC1498 32.00 50.00 18.00 0.93 0.93
Siga S 11200 BBC1492 32.00 50.00 18.00 0.62 0.62
Siga S 11200 BBC1493 9.00 35.00 26.00 1.09 1.09
Siga S 10900 BBC1462(8) 28.00 45.00 17.00 1.57 1.42
Siga S 10750 BBC1444 5.00 18.00 13.00 1.01 1.01
Siga S 10750 BBC1446 28.00 40.00 12.00 1.07 1.07
Siga S 10650 BBC1430 26.00 42.00 16.00 1.39 1.39
Siga S 10600 BBC1437 5.00 43.00 38.00 1.26 1.26
Siga S 10550 BBC1425 6.00 46.00 40.00 1.51 1.48 Pending
Siga S 10550 BBC1426 5.00 20.00 15.00 1.22 1.22 Pending
Siga S 10500 BBC1420 5.00 22.00 17.00 1.09 1.09 Pending
Siga S 10500 BBC1420 29.00 47.00 18.00 1.20 1.20 Pending
Siga S 10500 BBC1747 19.00 45.00 26.00 0.73 0.73 Pending
Siga S 10450 BBC1413 44.00 52.00 8.00 1.59 1.59
Siga S 10450 BBC1414 17.00 53.00 36.00 1.02 1.02
Siga S 10450 BBC1415 10.00 17.00 7.00 2.12 2.12
Siga S 10450 BBC1745 15.00 40.00 25.00 1.52 1.52 Pending
Siga S 10400 BBC14048 10.00 22.00 12.00 0.98 0.98
Siga S 10400 BBC1406 16.00 30.00 14.00 0.94 0.94
Siga S 10400 BBC14068 38.00 50.00 12.00 1.07 1.07
Siga S 10400 BBC1407 14.00 39.00 25.00 2.40 2.02
Siga S 10400 BBC1744 9.00 15.00 6.00 2.09 2.09 Pending
Siga S 10350 BBC1401 33.00 42.00 9.00 1.80 1.80
Siga S 10350 BBC14038 34.00 53.00 19.00 1.26 1.26
Siga S 10350 BBC1742 17.00 34.00 17.00 1.03 1.03 Pending
Siga S 10300 BBC1396 27.00 41.00 14.00 0.97 0.97
Siga S 10300 BBC1397 1.00 27.00 26.00 1.23 1.23
Siga S 10250 BBC13918 37.00 50.00 13.00 0.98 0.98
Siga S 10250 BBC1393 22.00 39.00 17.00 108.61 2.20
Siga S 9700 BBC1724 34.00 41.00 7.00 1.62 1.62 Pending
Siga W 12450 BBC1572 35.00 45.00 10.00 1.07 1.07 Pending
Siga W 12450 BBC1582 16.00 24.00 8.00 3.12 1.63 Pending
Siga W 12300 BBC1606 28.00 37.00 9.00 1.37 1.37 Pending
Siga W 12000 BBC1552 2.00 17.00 15.00 1.21 1.21
Siga W 12000 BBC1552 31.00 47.00 16.00 0.84 0.84
Siga W 11700 BBC1540 20.00 36.00 16.00 1.21 1.21
Siga W 11650 BBC1537 24.00 37.00 13.00 0.80 0.80
Siga W 11650 BBC1538 2.00 11.00 9.00 2.27 2.18
Siga W 11600 BBC1531 19.00 36.00 17.00 0.72 0.72
Siga W 11550 BBC1527 9.00 22.00 13.00 1.32 1.32
Siga W 11550 BBC1528 23.00 37.00 14.00 1.06 1.06
Siga W 11500 BBC1522 23.00 36.00 13.00 0.81 0.81
Siga W 11500 BBC1523 16.00 27.00 11.00 1.06 1.06
Siga W 11500 BBC15258 42.00 50.00 8.00 1.72 1.70
Siga W 11400 BBC1512 11.00 26.00 15.00 0.70 0.70
Siga W 11350 BBC1507 29.00 47.00 18.00 1.34 1.34
Siga W 11350 BBC1508 23.00 36.00 13.00 1.13 1.13
(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 fire assay residue results are pending.
(8) Hole stopped in mineralization

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 and P17 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) 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 and SGS Burkina Faso s.a.r.l. in Ouagadougou 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).

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) 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).

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.

Orezone has now completed 72,115 meters (42%) of the 170,000 m drill program, reported on 25% of these meters drilled and will complete a total resource update once the full program has been completed in the first half of 2012. Drilling continues through the July to September rainy season with 5 rigs (4 core, 1 RC) currently active, and at least one more core rig to be mobilized at the end of July. The current priorities are to complete the first pass of core drilling for the entire Siga and P11 area, while the RC program continues.

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 M oz indicated and 1.9 M oz 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," "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 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 or Toll Free: (888) 673 0663
    rlittle@orezone.com

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