Orezone apr13presentation
- 1. Developing Bomboré A World-class Gold Deposit Q2-2013
- 2. Forward Looking Statements This Presentation may contain “forward-looking information” which may include, but is not limited to, statements with respect to: political conditions and government regulations in foreign countries; timing of the receipt of governmental approvals and/or acceptances; targets, estimates and assumptions in respect of gold future gold production and prices; amount and type of future capital expenditures and capital resources; mineral reserves and mineral resources; anticipated grades; recovery rates; future financial or operating performance; costs and timing of the development of new deposits; costs, timing and location of future drilling; earning of future interests in various permits; production decisions; costs and timing of construction; project economics; operating expenditures; costs and timing and nature of future exploration; and environmental and reclamation expenses. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries and/or its affiliated companies to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include risks related to changes in, and volatility of, the price of gold; risks associated with operating in foreign jurisdictions; the speculative nature of gold exploration and development projects; permitting and title risks; risks relating to potential changes to governmental regulation; risks associated with the accuracy of mineral resource and reserve estimates; risks related to the fact that the Company has a history of losses and expects to incur losses for the foreseeable future; risks related to the reliance on the Company’s management team and outside contractors; risks related to drill shortages; risks associated with sample backlogs at assay laboratory facilities; risks related to the Company’s ability to finance the exploration and development of its mineral properties; risk relating to misrepresentations; uncertainties related to title to the Company’s mineral properties; risks relating to health concerns; environmental risks; operational risks and hazards inherent in the mining industry; risks associated with the potential inability to maintain available infrastructure; risks related to the potential unavailability of insurance to cover certain risks; risks related to increased competition in the mining industry; risks related to currency fluctuations; risks related to the fact the Company does not intend to pay dividends in the foreseeable future; risks that shareholders’ interest in the Company may be diluted in the future; factors that have historically made the Company’s share price volatile; risks for United States investors associated with possible PFIC status, as well as those risk factors identified in the Company’s publicly filed disclosure documents available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of the applicable public record document which the information is derived from and the Company has disclaimed any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward- looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. All Dollars in US currency (except share price and market capitalization) The cash balance presented is as at December 31, 2012, while all other financial information is as of April 8, 2013. 2
- 3. Background Orezone Resources Orezone Gold 1995 - 2009 2009 (ORE.T ) Essakane Same team 1.5 5.3 Moz + 3 gold projects Progress Permits Bomboré Debt Facility 0.9 5.2 Moz +6? Start Construction Market Cap Buys Orezone (OZN.T) Jan. 2009 $20 M $350 M Apr. 2013 $111 M 3
- 4. Highlights Bomboré - World-class deposit and location • 5.2 Moz (4.13 M&I + 1.03 Inferred) at 1.0 g/t • Located 85 km from Capital City along major highway • 120 m avg. drill depth to date & open below • 60,000 m of expansion and infill drilling underway Solid financials • $16.8 million cash, 85.7 million shares, no warrants • +$5.6 million in shares of Amara Mining Strong institutional & retail investor support • Van Eck, Sun Valley, JP Morgan, Tocqueville... Near-term catalysts Q2 – 2013 2H - 2013 Resource Update, Drilling results Full Feasibility Study Analyst coverage: Target Price $1.75 - $5.40 • NB, RBC, BMO, CIBC, GMP, Desjard, Canaccord, Ray J, Casimir 4
- 5. Corporate Structure ORE.TSX Shareholders Shares Issued 85.7 M 5% Management Shares Fully Diluted 92.4 M + 50% Institutional Cash + Securities $16.8 M (+ $5.6 M) Sun Valley AGF Debt None Van Eck CIBC Market Cap $111 M JP Morgan IG Average Daily Volume 100,000 Beutel Goodman BMO Share Price $1.29 Tocqueville TAL First Eagle Sprott Included in S&P / TSX Small Cap Index * 11 M common shares of Amara Mining representing ~ 6% holding. 5
- 6. Experienced Team Senior Management Years Experience Ron Little P.Eng Founder, CEO & President 25 Pascal Marquis Ph.D., P.Geo SVP Exploration 25 Sean Homuth CPA, CA CFO 12 Claude Poulin MBA, P.Geo Bomboré Project Manager 25 Board of Directors Mike Halvorson Orezone Chairman, also was Director for Viceroy, Nova Gold … 40 Patrick Downey CEO Elgin, also Aura, Viceroy, Yamana, Canico… 30 Keith Peck Previously SVP at RBC Dominion Securities, Haywood, Yorkton… 25 Alain Krushnisky Audit Com Chair, CFO Reunion Gold, Palmarejo, Cambior… 25 Ron Little Previous operations Lac Minerals, St. Joe Minerals, Bond Gold 25 6
- 7. Burkina Faso 27th Out of 96- Best region worldwide for exploration (Fraser Institute, 2012) 7 New gold mines since 2007 4th Largest African gold producer 2004 Modernized mining code 17 Million people 1987 Stable democracy Re-elected Capital: Ouagadougou + 1 Moz / yr Cotton Producer 2010 7
- 8. Gold Deposits Gold Mine (including past production) Gold Deposit (total MI&I) Niger Inata Essakane Orezone Deposits 6.2 Moz 3.8 Moz Karma 2.2 Moz 0 100 200 km Taparko 1.1 Moz Ronguen Samira Hill Sega 0.6 Moz 2.5 Moz 0.5Moz Kalsaka 0.5 Moz Bissa 5.0 Moz OUAGADOUGOU Mana 8.2 Moz Bomboré Tanlouka 1.2 Moz 5.2 Moz Kiaka Vindaloo Yaramoko Nabanga 0.7 Moz Mali 5.0 Moz 1.6 Moz 0.7 Moz Bondi Youga Banfora 0.4 Moz 1.4 Moz Benin 4.6 Moz Markoye Fault Tongon 4.5 Moz Konkera Togo 3.1 Moz Ghana Cote d’Ivoire 8
- 9. Summary: Gold Resources Category Tonnes Grade Gold Content (millions) (Au g/t) (ounces) Bomboré (constrained to $1400 pit shell) Measured & Indicated 125.0 1.03 4,131,000 Inferred 32.1 1.00 1,034,000 Bondi Measured & Indicated 4.1 2.12 282,000 Inferred 2.5 1.84 149,700 TOTAL NI 43-101 Measured & Indicated 129.1 1.06 4,413,000 Inferred 34.6 1.06 1,183,700 Figures rounded to the nearest 1,000 oz using 0.5 g/t lower cut-off except for Bomboré which uses a cut-off of 0.45 g/t for the oxide and semi-oxidized material and 0.50 g/t for the fresh material. 9
- 10. Bomboré Resource Growth 6 Estimate Drilling Date RC DD TOTAL 5 2006 41,757 1,080 42,837 2008 – Q1 44,050 1,080 45,130 1.00 2008 – Q4 63,003 6,794 69,797 2010 – Q4 105,459 14,533 119,992 4 2012 – Q3 221,613 115,853 337,466 2013 – Q1 256,636 144,446 401,082 Inferred Million oz 2013 – Q4 285,000 150,000 435,000 3 1.06 Indicated 0.96 Measured 2 Au g/t 0.60 1 0.99 0.65 0.81 0.82 0.59 0.59 0 2006 2008-02 2008 Q1 2008-11 2008 Q4 2010-10 2010 Q4 2012-08 2012 Q3 10
- 11. Bomboré Optimization Parameters Category 2013 2012 2010 Category 2013 2012 2010 Gold Price $1400 $1400 $1025 Mining Costs $/t $/t $/t NSR $70 $70 $41 Oxide 1.67* 1.90 1.10 Lower Cut-off g/t g/t g/t Transition 2.23* 2.35 1.35 Oxide 0.45 0.45 0.30 Fresh 2.32* 2.44 1.65 Transition 0.45 0.45 0.35 Processing Costs $/t $/t $/t Fresh 0.55 0.50 0.50 Oxide 6.60 7.21 6.67 Process Recovery % % % Transition 7.83 9.76 8.52 Oxide 92L 94 93 Fresh 15.02 12.66 10.36 Transition 89L 92 92 G&A $/t $/t $/t Fresh 82L 82 78 Oxide 3.72 3.84 1.55 Overall Pit slopes Degrees Degrees Degrees Transition 3.72 3.84 1.67 Oxide 36* 35 37 Fresh 3.72 3.84 1.85 Transition 44* 40 42 Note: * Weighted average number, see March 27/13 release for detail L includes additional losses for preg. carbon and liquid to tailings Fresh 51* 45 50 “The pit slopes and the oxide and transition costs have improved and will have a positive impact on the 2013 resource update and Oxide only FS.” 11
- 12. Bomboré Whittle Pit Sensitivity Measured and Indicated Inferred Gold Ore Au Au Ore Au Au Price Tonnage Grade Metal Tonnage Grade Metal US$/oz (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) 1100 78.5 1.05 2.65 20.2 1.01 0.66 1200 97.3 0.98 3.05 26.0 0.95 0.79 1300 112.0 0.91 3.49 41.5 0.88 1.17 1400 142.0 0.85 3.88 56.5 0.82 1.50 1500 167.9 0.80 4.31 74.6 0.78 1.86 1600 193.6 0.75 4.70 99.3 0.74 2.36 1700 218.7 0.72 5.05 129.9 0.71 2.95 Resources are from Whittle runs and include 5% dilution and 5% mining losses. Cutoff of 0.3g/t in oxide, 0.35 g/t in semi-oxide and 0.5 g/t in sulphide. “Resources are highly leveraged to improvements in gold price” 12
- 13. Bomboré Overview 11 km The Marquis Bridge 168 km² B W S Current Mine Plan 13
- 14. Bomboré Drilling Cross Section Gold mineralization continues at depth 200 m 50 m Au Grades >0.5 g/t CIL Pit >0.2 g/t (2012) 14
- 15. 2012-13 Resource Growth Plan Drilling summary Gold in Soil Drilling Total Avg. RC Core Geochemistry Program Drilled Depth Drilling Drilling m m m m Up to 2010 120,000 60 106,000 14,000 ppb Au 500 2011- H112 214,000 120 115,000 99,000 11 km H2 2012 65,000 120 35,000 30,000 100 Planned 41,000 150 29,000 12,000 50 Total 440,000 120 285,000 155,000 0 • Deposit still open at depth and along strike *95,000 m of new drilling since Aug 2012 resource • 15,000 m of additional drilling by June 2013 to upgrade and expand inferred resources Expansion potential • Resource update expected in Q2 2013 2012 Pit shells using $1400 gold 15
- 16. 2010 vs 2012 Drilling Results Oxide Drill Results Projected to Surface All Assays > 3 g/t Oct. 2010 Feb. 2013 +85,000 m of new +215,000 m results 1000 m drilling 11 km Gold Grade g/t > 1.00 > 0.35 16
- 17. Oxide Expansion Potential - North Maga KT INF on HW CFU Maga P8P9 P11 Siga SW Extension P17N CFU P17 P16 P13 1 km 17
- 18. Oxide Expansion Potential - South Maga KT Siga East CFU P8P9 P11 Siga South HW Siga P17N 15m @ 1.3 g/t 16m @ 3 g/t P17 P16 P13 . P17S 18m @ 2.4 g/t 1 km 18
- 19. Potential 2-Phase Build Scenario 1 Oxide Plant 2 Sulphide Expansion • Process only oxides • Process oxides & sulphides • Smaller grinding/leach circuit • Increase crushing, grinding • Capacity 150,000 oz/year and leaching circuits • Recoveries + 90% • Capacity 250,000 oz/year • Lower strip ratio (~2:1) • Funding to come from cash flow Possible Improvements to 2011 PEA Lower initial capex, shorter construction period Higher recoveries and lower operating costs - Lower power, mining and process costs Lower strip ratios Feasibility in progress 19
- 20. Bomboré Schedule 2012 2013 2014 2015 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Drilling: Infill & Expansion ● ● ● ● ● ● Prelim Economic Study Detailed Metallurgy ● ● ● ● ● Resource Update ● ● ● Full Feasibility Study ● ● ● ● ● ● ● Permitting ● ● Construction ● ● ● ● ● ● ● Production ● Our Goal: Phase 1: 150,000 up to 250,000 oz / yr Phase 2: +250,000 20
- 21. Orezone Infrastructure Ouaga Office Bomboré Camp New Access Onsite prep-lab 21
- 22. Bondi Gold Project Near-surface, heap leachable, with potential at depth • 4 km trend, open along strike • 282,000 oz Ind & 150,000 oz Inf • Average Grade 2.0 g/t • Metallurgical testwork in progress • Drill Program planned H1 2013 • Higher Grades up to 20 g/t Zone 2 Drill Hole Highlights (results over 4 g/t) Hole # from to m g/t Section BRC130 8.0 16.0 8.0 4.4 2925 BRC100 4.0 27.0 23.0 7.5 2975 1km BRC104 9.0 35.0 26.0 4.4 3025 BRC147D 133.5 164.0 30.5 5.2 3075 BRC110 13.0 25.0 12.0 5.5 3125 BRC113 48.0 63.0 15.0 5.7 3175 BRC057 40.0 69.0 29.0 6.3 3200 BRC116 20.0 39.0 19.0 4.3 3300 BRC283 33.0 52.0 19.0 10.4 3375 BRC204 8.0 21.0 13.0 20.3 3400 BRC278 51.0 57.0 6.0 14.8 3500 22
- 23. Corporate Social Responsibility Water for Communities • Support communities by establishing water and sanitation services • Over $650,000 raised and spent to date for water projects / Ryan’s Well Foundation a partner Education and Training • $190,000 invested to date • Collaborative research with Universities • 4 PhD students supported • Microscope donated to University of Ouagadougou 23
- 24. Analyst Coverage Institution Analyst Updated Target C$ Paolo Lostritto Mar - 2013 5.40 Nicholas Campbell Feb - 2013 4.50 Adam Melnyk Mar - 2013 3.50 Jeff Killeen Feb - 2013 3.50 Andrew Mikitchook Mar - 2013 3.25 Brad Humphrey Aug - 2012 3.00 Stuart McDougall Mar - 2013 3.00 Jonathan Guy Mar - 2013 2.00 Andrew Breichmanas Mar - 2013 1.75 24
- 25. Orezone Gold Corporation 290 Picton Avenue, Suite 201 Ottawa, Ontario, Canada www.orezone.com info@orezone.com Toll Free: 1-888-673-0663 Tel: 1-613-241-3699