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Orezone Gold Increases Bomboré After-Tax NPV by $137.5M (+62%) and Reserves by 686koz (+60%) With Modest Additional Upfront Capital
LOM average annual gold production of 118koz, After-tax NPV5% of US$361M, IRR of 44% and LOM AISC of $730/oz (All reported figures are in US dollars and are on
About this update from Orezone Gold Corporation
[{"type":"text","content":" LOM average annual gold production of 118koz, After-tax NPV5% of US$361M, IRR of 44% and LOM AISC of $730/oz (All reported figures are in US dollars and are on a 100% project basis unless otherwise stated) VANCOUVER, British Columbia, June 26, 2019 (GLOBE NEWSWIRE) -- Orezone Gold Corporation (TSXV:ORE) (“Orezone” or the “Company”) is pleased to report the results of its updated feasibility study (the “2019 FS”) which incorporates a staged Phase II Sulphide Expansion for its 90%-owned Bomboré Gold Project in Burkina Faso, West Africa. 2019 FEASIBILITY STUDY HIGHLIGHTS (at Base Case gold price of $1,300/oz) Pre-tax NPV5% of $513.5M and IRR(1) of 61.9% with a 1.5-year payback After-tax NPV5% of $361.0M and IRR(1) of 43.8% with a 2.5-year payback Mine life of 13+ years with life-of-mine (“LOM”) gold production of 1.6M ounces and average annual production of 133.8k ounces in the first 10 years Initial project construction costs estimated at $153.0M First gold pour targeted for June 2021 LOM expansion capital costs of $63.2M LOM sustaining capital costs of $66.2M LOM cash costs of $681/oz with cash costs of $629/oz in the first 10 years LOM AISC(2) of $730/oz with AISC(2) of $672/oz in the first 10 years Notes:1. IRR calculated from start of commercial production.2. AISC excludes Corporate G&A. The 2019 FS incorporates a staged Phase II Sulphide Expansion with production commencing in Year 3 of oxide operations. This expansion, funded from oxide cashflows, significantly improves the overall gold production profile and project economics by processing 17.6Mt of higher-grade sulphide and lower-grade transition (“LT”) ore. Furthermore, the addition of these Reserves and the oxides within the “Restricted Zones” facilitates the increase in the annual plant throughput from 4.5 million tonnes per annum (“Mtpa”) in the 2018 FS to 5.2Mtpa in the 2019 FS. “The staged development approach at Bomboré results in increased annual gold production, improves operating margins and significantly enhances economics including a material increase in after-tax NPV of $137.5M. The results of the 2019 FS confirm that Bomboré is a long-life, low-cost gold mine and we continue to evaluate additional project opportunities,” said Patrick Downey, President and CEO. “Equally important, the decision to complete the Phase II Sulphide E...