Advancing one of the
Largest Gold Deposits in Burkina Faso
✔ Permitted ✔ Advancing Simple New Flowsheet ✔ Strong Cash Balance
April 2018
Largest Gold Deposits in Burkina Faso April 2018 Permitted - - PowerPoint PPT Presentation
Advancing one of the Largest Gold Deposits in Burkina Faso April 2018 Permitted Advancing Simple New Flowsheet Strong Cash Balance Forward Looking Statements This Presentation may contain forward-looking information which may
April 2018
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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
anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.
Qualified Persons
Pascal Marquis, Geo., Senior Vice President of Exploration, Tim Miller, Chief Operating Officer, Chem., MBA, and Patrick Downey, P.Eng, Chief Executive Officer are the Company’s qualified person under NI 43-101, who have reviewed and verified the technical information in this presentation. The technical reports have been filed on SEDAR and can be reviewed at www.sedar.com. Mineral Resources: The 2017 Mineral Resources disclosures in this presentation have been prepared under the supervision of Reno Pressacco, P.Geo. and Tudorel Ciuculescu, P.Geo., both employees of RPA and independent of Orezone. Messrs. Pressacco and Ciuculescu are “Qualified Persons” for the purpose of National Instrument 43-101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (May, 2014).
290 Picton Avenue, Suite 201, Ottawa, Ontario, Canada K1Z 8P8 - www.orezone.com / info@orezone.com / Tel: (613) 241 3699 / Toll: (888) 673 0663
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❖ Permitted long-life shallow oxide gold deposit with excellent infrastructure and fast timeline to production. ❖ Low Capex and Opex driven by simple flowsheet. ❖ Feasibility Study scheduled for completion in June 2018. ❖ Company is well financed and will move rapidly towards a production decision in early 2019. Cash of C$55.6 million as of April 18, 2018. ❖ Project is scalable with large sulphide resource beneath oxides which provides significant upside potential. ❖ Aggressive 24,000 m exploration program planned for 2018 to continue expansion
❖ Experienced Board and Management with strong track record of developing and
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Board Members
Keith Peck Chairman, Previously Investment Banker for over 30 years 35 Mike Halvorson Previously Director for Viceroy, Nova Gold, Novus, Gentry 40 Ron Batt Previously Senior Partner at Ernst & Young 35 Joe Conway CEO Primero, Previously CEO, IAMGOLD, Repadre 30 Charles Oliver Previously Gold Sector Fund Manager for over 30 years 35
Management Years Experience
Patrick Downey P.Eng President & CEO, Director 35 Peter Tam CPA CFO 25 Pascal Marquis Ph.D., Geo SVP Exploration (Previously Agnico) 30 Tim Miller Chem, MBA COO (Previously Goldcorp, Glamis) 30 Joe McCoy MBA VP Administration & Corporate Secretary 35 Ousseni Derra MSc., Geo Country Manager / Exploration Manager 20
Capital Structure (as of April 18 2018) - ORE.TSXV Shares Issued 210.4 M Shares Fully Diluted 223.7 M Cash (no debt) C$55.6 M Market Cap C$191 M Key Shareholders Management and Directors 4.51% Strategic Shareholders: Resource Capital Funds VII L.P. 19.99% Coris Capital S.A. 1.78%
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❖ As part of the recent financing the Company welcomed two new strategic shareholders - RCF and Coris Capital. ❖ RCF, a well recognized North American PE mining fund, have invested for 19.99%
▪ Appointment of up to 2 board members. ▪ Participation rights to maintain 19.99% ownership on future equity financings. ▪ Right to participate in any future debt financing up to 1/3 of the gross financing amount. ❖ Coris Capital is part of the Coris Group of companies, headquartered in Burkina Faso, with activities and investment in the mining and industrial sectors and has provided debt financing to mining projects in West Africa.
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Youga 1.2 Moz Samira Hill 2.5 Moz Kiaka 4.9 Moz Bondi 0.3 Moz Kalsaka 1.0 Moz Mana 6.3 Moz Essakane 7.1 Moz Inata 3.0 Moz Past producer Gold Mine (2P+M&I+Produced) Gold Deposit (2P+M&I) Orezone Bomboré (M&I) 0 100 200 km
Cote d’Ivoire Ghana Togo Benin Niger Mali
OUAGADOUGOU Konkera 1.9 Moz Banfora 1.9 Moz Taparko/Bouroum 2.4 Moz
Bomboré 4.8 Moz
Houndé 2.5 Moz Karma 3.0 Moz Tongon 3.6 Moz Sanbrado 1.3 Moz Bissa/Bouly 10.9 Moz Boungou 1.9 Moz Yaramoko 1.3 Moz Markoye Fault Poura 1.0 Moz South Houndé Nabanga Balogo 0.1 Moz Bongou Karankasso Toega Guiro Namdini 6.5 Moz
An emerging district
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Current Mine Plan
Ouaga Office Bomboré Camp Access Road
➢ Located 85 km from the Capital City along a major highway ➢ Excellent infrastructure with majority of support facilities in place – camp, offices, warehouse facilities at property located 9 km from town
Camp Orezone
Komadanisi Bomboré Property P
e r L i n e 1 3 2 K V A Mogtedo Dam
10 km
85 km
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CIM definitions were followed for Mineral Resources. Mineral resources are not mineral reserves and do not have a demonstrated economic viability. Mineral Resources are estimated at variable cut-off grades depending on weathering layer and location, using a long-term gold price of US$ 1,400 per
Category Tonnes (millions) Grade (Au g/t) Gold Content (ounces) Jan 5, 2017 Resource Statement (constrained to a $1400 pit shell) Oxidized M&I +0.45 g/t 53.4 0.87 1,487,000 Oxidized Inferred +0.45 g/t 4.8 0.77 117,000 Sulphide M&I +0.50 g/t 71.0 0.97 2,208,000 Sulphide Inferred +0.50 g/t 20.1 0.97 630,000 Total Measured & Indicated +0.45 to 0.50 g/t 124.5 0.92 3,695,000 Total Inferred +0.45 to 0.50 g/t 24.9 0.93 747,000 Low Grade Oxidized M&I +0.20 to 0.45 g/t 68.6 0.33 727,000 Low Grade Sulphide M&I +0.38 to 0.50 g/t 25.0 0.43 348,000 Total Measured & Indicated +0.20 to 0.50 218.1 0.68 4,770,000
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❖ Free digging – no drill and blast. Contract mining with local contractor – small equipment; low tech maintenance; very competitive contract rate – reduces capex by +$20 million from 2015 study and lowers Opex/tonne ❖ New flowsheet has eliminated crusher, stockpile/reclaim, heap leach and all associated infrastructure. ❖ The above should significantly reduce both operating and capital costs as follows: ▪ Simpler circuit with much less equipment ▪ Reduced reagent consumption ▪ Less labour – Heap Leach requires a large labour component ▪ Improved gold recovery in straight CIL versus combined HL/CIL ▪ Smaller mine footprint ▪ Lower sustaining capex and working capital requirements
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Siga South Deposit – Section 10600N Phase 1 – shallow oxide only pit – Average depth 45 m Phase 2 Sulphide Pit OPEN
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PROCESS WATER TAILINGS THICKENER
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‒ Recent drilling has targeted new higher grade shallow sulphide zones – P17S continues to grow ‒ Geology and structure of targets now better understood and future drilling should expand zone and open further targets ‒ New oxide targets outside of known resources have returned very promising results ‒ District scale potential – over 9 million ounces of defined gold resources within a 15km radius ‒ Sulphide resource only drilled to average depth of 120m. Drilling to 240m shows resource still open.
Maga CFU P8P9 Siga P17N P11 P16 P13 P17
P17S
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P17S P17 Zone 172
Section 42950N Section 43175N Section 730170E
Open to expansion
Recent P17S Results 13.0 m @ 2.26 g/t Au, incl. 1 m @ 10.9 g/t Au; 3.0 m @ 4.95 g/t Au, incl. 1 m @ 12.9 g/t Au; 3.0 m @ 5.66 g/t Au, incl. 1 m @ 14.7 g/t Au; 4.6 m @ 15.96 g/t Au, incl. 0.8 m @ 87.8 g/t Au; 5.0 m @ 6.38 g/t Au, incl. 2 m @ 13.5 g/t Au; 4.0 m @ 3.00 g/t Au; 16.25 m @ 1.97 g/t Au; 8.2m @ 1.88 g/t Au 4.8 m of 2.29 g/t Au 8.5 m of 3.95 g/t Au; 9.6 m of 3.80 g/t Au; 14.0 m of 1.65 g/t Au; 5.0 m of 4.94 g/t Au; 5.0 m of 3.17 g/t Au; 8.8 m of 2.70 g/t Au; 13.3 m of 2.06 g/t Au; 9.7 m of 3.38 g/t Au; 2.0 m of 14.10 g/t Au; and 6.9 m of 4.85 g/t Au. 10.0 m of 3.20 g/t Au; 14.0 m of 1.65 g/t Au.
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Longitudinal Section 730170E View N270 TYD0082 13.3 m @ 2.1 gpt
January 5, 2017 Resource Pit Shell
NE Extension
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Siga East & Siga West high-grade follow-up oxide drilling targets:
BBC0250: 44.5 gpt BBC1090: 32.0 gpt BMC0080: 38.1 gpt BBD0246: 32.3 & 32.0 gpt BBC1626: 49.1 gpt BBC0272 : 31.6 gpt BBD0789: 49.6 gpt
BBC1393
Granodiorite Trend
Siga East & West
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Recent positive results from Siga East high-grade follow-up oxide drilling targets
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CFU high-grade follow-up
P11 Siga W-E Siga S P16 P17N P17 P17S P8P9 Maga CFU
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3 m @ 3.44 gpt;
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Isometric view (looking N250) of the Siga E-P11 current resource pit shells and folded granodiorite unit. The hypothesis of moderate to shallow fold hinges and sub-parallel high- grade gold mineralized shoots should be tested, first with tighter (25 m x 25 m) RC drilling within the weathered zone, and then, if the concept is confirmed, by core drilling to define the down-plunge extensions within the sulfide zone. Siga East Pit Shell Siga West Pit Shell P11 Pit Shell 500 m
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❖ Complete Feasibility Study based on optimized flowsheet by June 2018 and advance project to construction stage. ❖ Model the shallow oxide “Higher-Grade Zones” into Resource and Reserve
better reflect the geology. ❖ Apply for reinstatement of up to 240,000 ounces of oxide resources from restricted zones – work is ongoing. ❖ Finalize planning and commence Phase 1 Resettlement Action Plan in H2 2018. ❖ Continue to drill higher-grade zones and model high-grade shoots into sulphide resources. ❖ Drill prospective near-mine oxide and sulphide targets. ❖ Advance discussions on project financing alternatives. ❖ Strengthen team at corporate and local level for next stage of development.
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Tel: 1-613-241-3699 / Toll Free: 1-888-673-0663 info@orezone.com / www.orezone.com