Orezone Gold Corporation

TSX : ORE


Orezone Gold Corporation

November 13, 2012 08:00 ET

Positive Drill Results Support Further Growth at Bombore

Work continues on the Definitive Feasibility Study for an oxide-only CIL plant

OTTAWA, ONTARIO--(Marketwire - Nov. 13, 2012) - Orezone Gold Corporation (TSX:ORE) is pleased to announce additional positive results from an ongoing 125,000 m infill and expansion drill program at its wholly owned Bomboré Gold Project in Burkina Faso, West Africa. The program is designed to upgrade and expand the resources, especially the softer near surface oxide and semi-oxidized resources (total oxide resource of 1.76 Moz M&I and 0.26 Moz Inferred, plus the sulphide resource of 2.37 Moz M&I and 0.78 Moz Inferred). In parallel the company is completing a definitive feasibility study ("DFS") for a phase one, oxide-only CIL plant, and the drill results to date should improve the economics and life of the project. Deeper drill results also indicate further upgrading and expansion of the underlying sulphide (fresh-rock) resource. The Company envisions expanding the CIL plant from the project cash flows to accommodate the fresh rock that would result in a larger operation and a longer mine life. The Company expects to complete an internal resource update on Bomboré in Q1 2013, which will be included in the DFS to be released by Q3 2013.

Highlights

- Results include 179 reverse circulation (RC) holes (12,479 m) and 42 core (DD) holes (9,424 m). For all results see the following Table;

- These results are from the northern area of the project where inferred resources and some new oxide targets have been drilled;

- The new core holes were drilled over a strike of 2,500 m in the Maga area and intersected gold mineralization at an average vertical depth of 126 m;

- The Company has now released a total of 55,000 m of drilling (683 holes) subsequent to the August 2012 Bomboré resource statement. These results, along with results received through the end of November 2012, will be included in the next resource update on which the DFS reserves will be based;

- Work continues on the DFS with various trade-off studies to finalize the plant site location, the grinding circuit, water storage system, tailings design, geotechnical drilling and environmental studies. All of these items are expected to be completed by Q1 2013 along with the release of the detailed variability metallurgical results.

"These results further confirm that there is excellent potential for additional expansion of the oxide and sulphide resources at Bomboré." said Pascal Marquis, SVP Exploration for Orezone. "More importantly, the additional 55,000 m drilled to date support further improvement in project economics and validation of our two-phased approach to mining Bomboré which will be reflected in the upcoming DFS"

Table 1. Cumulative Results Excluded from the August 2012 Resource Reported to Date

Total Drilling to Date Grade g/t
Zone # of Holes Total m Uncut Cut(1)
KT - RC 14 1,036 1.06 1.06
CFU - RC 4 293 NSA NSA
Maga - RC 181 11,743 1.03 0.95
Maga - DD 45 9,811 1.26 1.16
P8P9 - RC 30 1,665 0.92 0.91
P8P9 - DD 25 4,631 1.04 0.99
P11 - RC 24 1,308 1.30 1.12
P11- DD 3 496 1.70 1.14
Siga E - RC 45 2,294 0.93 0.88
Siga E - DD 15 1,920 1.59 1.03
Siga W - RC 45 2,284 1.34 0.99
Siga W - DD 17 2,129 0.94 0.88
Siga S - RC 177 8,879 0.94 0.87
Siga S - DD 36 5,424 0.95 0.90
P17 N - RC 5 250 1.51 1.26
P17 S - DD 3 414 3.09 2.59
North - RC 229 14,737 1.01 0.94
North - DD 70 14,442 1.15 1.07
South - RC 291 14,765 1.00 0.89
South- DD 71 9,968 1.04 0.92
SE - RC 6 250 1.51 1.26
SE - DD 3 414 3.09 2.59
All - RC 525 29,752 1.01 0.92
All - DD 144 24,824 1.11 1.01

Table 2. Breakdown of Drilling Meterage for this Release

Zone Core Drilling RC Drilling
# of holes Total m # of holes Total m
KT 0 0 14 1,036
Maga 42 9,424 161 11,150
CFU 0 0 4 293
TOTAL 42 9,424 179 12,479

Table 3. Highlights of Diamond Drill 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)
Maga 4500 BBD0841 192.00 202.00 10.00 1.40 1.40
Maga 4450 BBD0866 202.00 230.00 28.00 1.14 1.14
Maga 4400 BBD0842 207.00 228.00 21.00 0.90 0.90
Maga 4400 BBD0842 235.00 277.00 42.00 1.10 1.10
Maga 4350 BBD0843 170.00 181.00 11.00 1.26 1.26
Maga 4350 BBD0843 188.00 198.00 10.00 1.62 1.62
Maga 4350 BBD0843 212.00 226.00 14.00 1.14 1.14
Maga 4300 BBD0867 204.00 217.00 13.00 0.85 0.85 Pending
Maga 4100 BBD0868 87.00 95.00 8.00 1.63 1.63
Maga 4000 BBD0869 239.00 256.00 17.00 1.84 1.49
Maga 3950 BBD0846 282.00 294.00 12.00 1.44 1.44
Maga 3900 BBD0872 224.00 242.00 18.00 1.60 1.60
Maga 3850 BBD0873 237.00 248.00 11.00 1.00 1.00
Maga 3800 BBD0847 147.00 152.00 5.00 2.68 1.48 Pending
Maga 3700 BBD0904 174.00 187.00 13.00 1.56 1.56 Pending
Maga 3650 BBD0849 84.00 95.00 11.00 1.24 1.24
Maga 3650 BBD0849 158.00 167.00 9.00 1.80 1.80
Maga 3600 BBD0911 75.00 81.00 6.00 2.46 2.32
Maga 3600 BBD0911 108.00 112.00 4.00 3.38 3.15
Maga 3600 BBD0911 153.00 160.00 7.00 6.04 3.21
Maga 3600 BBD0912 150.00 160.00 10.00 3.24 1.74
Maga 3550 BBD0879 215.00 223.00 8.00 2.41 2.19 Pending
Maga 3550 BBD0903 83.00 94.00 11.00 1.12 1.04
Maga 3550 BBD0903 112.00 120.00 8.00 5.06 2.70
Maga 3450 BBD0878 65.00 75.00 10.00 2.09 1.92 Pending
Maga 3400 BBD0885 269.00 275.00 6.00 1.72 1.72 Pending

Table 4. Highlights of Reverse Circulation 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)
KT 6550 BBC3618 36.00 42.00 6.00 1.97 1.97
Maga 4900 BBC3645 45.00 58.00 13.00 1.19 1.19
Maga 4800 BBC3690 53.00 64.00 11.00 2.19 2.07
Maga 4700 BBC3650 10.00 16.00 6.00 1.91 1.25
Maga 4700 BBC3653 21.00 34.00 13.00 1.05 1.05
Maga 4675 BBC3694 13.00 21.00 8.00 1.27 1.27
Maga 4650 BBC3655 26.00 38.00 12.00 2.20 1.40
Maga 4450 BBC3699 41.00 65.00 24.00 1.08 1.08
Maga 4350 BBC3657 39.00 47.00 8.00 1.34 1.34
Maga 4300 BBC3713 29.00 36.00 7.00 2.56 1.49
Maga 4200 BBC3710 22.00 30.00 8.00 1.94 1.59
Maga 4150 BBC3717 5.00 20.00 15.00 0.71 0.71 Pending
Maga 4050 BBC3723 8.00 13.00 5.00 2.04 2.04 Pending
Maga 3950 BBC3674 54.00 64.00 10.00 1.63 1.63 Pending
Maga 3750 BBC3685 5.00 8.00 3.00 9.56 3.65
Maga 3650 BBC3743 45.00 51.00 6.00 3.74 2.41 Pending
Maga 3050 BBC3771 33.00 42.00 9.00 1.20 1.20 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 KT, Maga, P16, P17 and P8P9 areas, and 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 were prepared by SGS Burkina Faso s.a.r.l. at the Bomboré site facility 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 SGS Burkina Faso s.a.r.l. at the Bomboré site facility 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 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 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 +12 M oz and recent mine development experience in Burkina Faso, West Africa. The company owns a 100% interest in Bomboré, the largest undeveloped gold deposit in the country that is situated 85 km east of the capital city, adjacent to an international highway. Mineral resources are constrained within optimized open pit shells that span 11 km, and include 4.13 Moz of measured and indicated (125 Mt @ 1.03 g/t) and 1.03 Moz of inferred resources (35 Mt @ 1.00 g/t) with an average depth of drilling to only 120 meters. The Company is working to further expand the resources at Bomboré while it completes a DFS for an oxide-only CIL plant by Q3 2013 and becomes a mid-tier gold 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; capital and operating cost estimates; gold production for the project; completion of a DFS in Q3 2013; completion of an internal resource update in Q1 2013; commencement of production at the Bomboré Project in 2015.

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, 2011 and other continuous disclosure documents filed by Orezone since January 1, 2012 available at www.sedar.com, for this detailed information, which is subject to the qualifications and notes set forth therein.

(1) Weighted average grade of individual assays, cut to 5 g/t. NSA: No Significant Assay.

(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.

(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

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