Bomboré Hard Rock Expansion Update and Three-Year Production Forecast

VANCOUVER, British Columbia, May 06, 2024 (GLOBE NEWSWIRE) -- Orezone Gold Corporation (TSX: ORE, OTCQX: ORZCF) (the “Company” or “Orezone”) is pleased to provide an update on its Phase II hard rock expansion and a three-year production forecast for its Bomboré Gold Mine located in central Burkina Faso.

The Company originally contemplated constructing an independent 4.4 million tonnes per annum (“Mtpa”) hard rock plant in a single stage as outlined in its 2023 feasibility study. Following a recent review of available financing sources, the Company has decided to complete this brownfield expansion in two stages to better manage its capital requirements. Stage 1 will consist of an initial 2.5Mtpa hard rock plant, with a subsequent Stage 2 expansion increasing the hard rock throughput to 5.0-7.0Mtpa.   

The existing Phase I oxide plant will continue to process oxide ore at a targeted rate of 6.0Mtpa.

The capital cost for the initial 2.5Mtpa hard rock plant is estimated at US$80 million, significantly less than the US$168 million estimated for the 4.4Mtpa hard rock plant, along with the benefit of a shorter overall construction timeline. The Company expects to finance the costs of construction for this Stage 1 hard rock plant primarily through senior debt, with the balance from future operating cash flow. In this regard, the Company has significantly advanced discussions with Coris Bank for this additional debt and anticipates receiving a binding debt proposal in June 2024. Based on current estimated construction and key equipment timelines, the Company expects to achieve first gold from the 2.5Mtpa hard rock plant in late 2025.

Patrick Downey, President and CEO stated, “The Bomboré mine hosts significant optionality in terms of advancing the mine to its targeted production profile of 250,000 oz/year. This two-stage approach to the construction of the hard rock plant is prudent to ensure that the balance sheet is not over levered, and that the expansion can advance in a timely manner without having to contemplate costly financing alternatives.

Over the next three years, the Company will focus on ramping up future production at Bomboré to 170,000-185,000 oz/year, which will help the Company to rapidly de-lever its balance sheet. During this period, the Company will continue to evaluate the timing of the Stage 2 hard rock expansion which it will look to advance with a strong treasury and cash flow from operations.