Bomboré Project

One of the largest undeveloped gold deposit in the region that can be built in stages to reduce initial Capex.

Company Summary

Orezone Gold Corp. is a Canadian company with a successful gold discovery track record and mine development experience in Burkina Faso, West Africa. The Company owns a 90% interest in Bomboré project with the government of Burkina Faso retaining a 10% carried interest. Bomboré is one of the largest undeveloped oxide gold deposit in West Africa, situated 85 km east of the capital city, adjacent to an international highway. Bomboré is now fully permitted having received all environmental approvals. As a result of changes to the resource statement, the Company plans to update the 2015 feasibility study prior to considering its options to secure the required full project financing to construct an operation. The project also benefits from a large underlying sulphide orebody that has been drilled and studied and could be developed as part of a second phase plant expansion at higher gold prices.

Project Highlights

  • Shear-zone hosted: 11 km long x 200 m average width
  • Average depth of drilling to date is 120 m
  • 85 km from Capital City, adjacent to major highway with nearby power and water
  • 100% owned subject to a government 10% free carried interest and a sliding scale 3 to 5% net smelter royalty (“NSR”)
  • The plan is to build an open-pit,  CIL operation without crushing or grinding
  • Large underlying sulphide resource is well studied and can be processed by via an expansion of the standard CIL circuit
  • An update of the reserves and a optimization of the 2015 feasibility study in order to determine the next stage of development for the project.
Burkina Faso map

Description

Orezone’s 150.4 km2 Bomboré Project is the largest undeveloped gold deposit in Burkina Faso. Gold resources occur at surface in several zones contained within a gold-in-soil anomaly that extends virtually uninterrupted at a level of +0.1 g/t for 14 km and represents the largest gold-in-soil anomaly in the country.

Approximately 40% of the total resource occurs in the shallow weathered horizon (average depth of about 45 m) and economic pit shells that constrain the resource can reach depths of up to 200 m if the geological model proves to continue at depth, and as much as 95 m in the current mining plan that is targeting the weathered horizon.

Resources for the most part remain open at depth where there is excellent potential to further increase the sulfide resources. Short range strike extension potential as well as new targets suggest that additional shallow weathered mineralized material can also be added to the current mineral resources and mineral reserves.

The Company plans to develop the project as a CIL operation that does not require any crushing or grinding and should yield overall recoveries of 87%. The standard CIL circuit could be expanded at any time to process the large underlying sulphide resource.

The Bomboré project is located just 85 km east of the capital city adjacent to national paved highway RN4. The project is in an area of moderate population density, and local infrastructure includes a high voltage power line nearby, access to sufficient water and a local labor force. These infrastructure advantages should translate into reduced operating and development costs.

Geology

The Bomboré shear zone represents the dominant structure in the permit area. This kilometer-thick arcuate shear zone is interpreted as a subsidiary structure to the regional Tiébéle-Dori-Markoye fault.

The permit area is underlain mainly by a meta-sedimentary flysh-type sequence dominated by meta-sandstones with subordinate carbonaceous meta-pelites and polymicticmeta-conglomerates. This metasedimentary sequence is intruded by early meta-gabbroic and ultramafic (peridotitic) intrusives and then syntectonic granodioritic intrusives. Late-tectonic quartz-feldspar porphyries occur as dikes and larger bodies within the greenstone belt. Large biotite granite intrusives are present to the west and to the south of the greenstone belt that is also molded on a large quartz diorite intrusive located along the eastern limit of the project area. The carbonaceous meta-sediments represent about 6% of the mineral reserves and the metallurgical test work has identified a very low preg-robbing index for this material. The material should not represent any metallurgical recovery issue given the designed processing methodology.

Mineralization

All of the Bomboré gold mineralization occurs within the main Bomboré shear zone and is associated with silica, sulphide and carbonate-albite-tourmaline-biotite alteration as well as minor arrays of quartz veins and veinlets. Gold is free and mainly associated with a low-sulfide (±2%) assemblage of pyrite, chalcopyrite and arsenopyrite disseminations and stringers. The gold mineralization is also preferentially associated with lithological contacts.

For information purposes, but not to be relied upon:

Bomboré 2013 Oxide Resource Pitshell Outlines at $1,400 Gold – includes Drill hole Composite Grades projected to Surface

Map of deposits and prospects

2018 Priorities

1

Optimize and update and the 2015 Feasibility Study based on a simplified approach in order to determine the next stage of development for the project.

2

Drilling to discover and expand higher grade targets as well as the infill and expansion of the oxide and sulphide resources.

3

Project preparation for a future construction decision and full project financing.