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Orezone confirms higher grades at Bombore

Orezone Gold says drilling is validating the interpretation of a higher-grade plunging gold system at its 90%-owned Bombore gold development project in Burkina Faso.
Orezone confirms higher grades at Bombore Orezone confirms higher grades at Bombore Orezone confirms higher grades at Bombore Orezone confirms higher grades at Bombore Orezone confirms higher grades at Bombore

The planned plant at Orezone Gold’s 90%-owned Bomboré development project in Burkina Faso

Staff reporter

Among the highlights, the company yesterday reported 8.9m at 3.21g/t gold, including 1m at 16.25g/t gold, from 122.8m.

President and CEO Patrick Downey said drilling results from 2017 and 2108 had clearly shown there were several zones of higher grade within the project's resource which "were not properly understood or modelled".

"Our work has now refined that model and these new drill results continue to show good grade, thickness and continuity of the identified higher grade areas and provide confidence as we expand and explore for additional similar targets both within and outside of the known resources," he said.

Orezone is aiming to release an updated resource in the first quarter of 2020.

The company said development had begun at Bombore with the first gold pour scheduled for the second half of 2021.

In a presentation this month, Orezone said its project financing discussions were "well-advanced".

The company released an updated feasibility study for Bombore in June which outlined a staged development, with the 13-year mine expected to produce 1.6 million ounces averaging 133,800oz per year at an all-in sustaining cost of $672/oz in the first decade.

Initial capex for the first stage oxide material was put at US$153 million, the after-tax NPV (5% discount) at $361 million and the IRR at 43.8% with a 2.5-year payback.
 
Orezone shares (TSXV: ORE) had risen from C39c in April to hit 88c in September, and dipped on news of the fatal attack on a convoy to Semafo's Boungou mine in Burkina Faso's Est region earlier this month when dozens were killed.
 
They last traded at 65c, capitalising Orezone about $139 million (US$105 million).