Orezone Gold Corporation · TSX:ORE
Orezone Gold — Investor Presentation (September 2019)
46 slides from Orezone Gold's investor presentation, September 2019
Slide 1: Bomboré Gold Project Corporate Presentation
Bomboré Gold Project CORPORATE PRESENTATION September 2019 ORE:TSX.V 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information and forward-looking statements (together, “forward-looking statements”) are frequently characterized by words such as “pl
Slide 3: Orezone: A Refocused Story
Orezone: A Refocused Story Since 2017, Orezone’s new management has delivered on all its objectives Changed the Development Strategy to a Staged Approach Focused on Project Scale Orezone can Finance and Build Delivered a Robust Oxide only Feasibility Study RCF joined as a Supportive Shareholder Deli
Slide 4: Combined, the Orezone Management Team Has Been Responsible for
Combined, the Orezone Management Team Has Been Responsible for: CONSTRUCTION AND DEVELOPMENT OF 13 MINES 20 M&A TRANSACTIONS 10 DEBT AND PROJECT FINANCING FACILITIES RAISED OVER $2B IN EQUITY OPERATION OF 10 MINES 4 4
Slide 5: Investment Highlights
Investment Highlights Located in a leading gold development region with established infrastructure • Burkina Faso government is supportive of mining with 13 gold mines in production in last 10 years and 1 project currently in construction Permitted, advanced development project with robust economics
Slide 6: Burkina Faso: An Emerging Gold District
Burkina Faso: An Emerging Gold District Supportive mining jurisdiction • 13 gold mines in production • 1 gold mine in construction ~10Moz gold within 15km of Bomboré* • West African Resources: Sanbrado • B2 Gold: Toega • New high-grade gold discoveries in this emerging district Pool of skilled and t
Slide 7: West Africa Gold Production 2010 vs 2019
West Africa Gold Production 2010 vs 2019 Production Growth Since 2010 By Region 2010 and 2018 Ounces by Region 80% 69% 66% Asia 60% 54% 50% Central & South America 40% North America 28% Independent States 20% 11% 11% Oceania 0% West Africa South Africa -20% Europe -40% -38% 0 5 10 15 20 25 -60% 2010
Slide 8: Bomboré Location & Local Infrastructure
Bomboré Location & Local Infrastructure Located 85 km (90 min) from the capital city along a major paved highway Access Road in a secure location within proximity to a military training facility 5 km from town of Mogtédo with a population of 15,000; easy access to skilled local workforce, housing
Slide 9: Sulphide Expansion: 2019 Feasibility Study Focus
Sulphide Expansion: 2019 Feasibility Study Focus Identified P17S high-grade sulphide zone Several additional high-grade sulphide zones contained within main ore body Staged Sulphide Expansion with production commencing in Year 3 of oxide operations • High-grade sulphides will displace oxide mill fee
Slide 10: 2019 Feasibility Study Highlights
2019 Feasibility Study Highlights Description 2019 FS After-tax NPV5% of $361.0M(1) , IRR of 43.8% Base Case Gold Price (US$/oz) 1,300 Mine Life (years) 13.3 • 2.5-year payback Total Waste Tonnes Mined (Mt) 164.4 Total Ore Tonnes Mined (Mt) 70.1 Mine life of 13+ years with: Strip Ratio 2.34 • LOM go
Slide 11: 3D Combined Processing Plant
3D Combined Processing Plant Stage 1: Oxide Plant Stage 2: Sulphide Circuit 11 11
Slide 12: Mill Feed Schedule
Mill Feed Schedule The sulphide expansion displaces diminishing oxide grades with higher-grade sulphides, significantly improving the overall mill feed grade Annual Mill Feed and Gold Grade by Ore Type 6.0 1.80 1.59 0.1 0.0 1.60 1.46 5.0 0.7 1.23 1.40 1.20 1.5 1.12 1.12 1.12 0.94 Gold Grade (g/t) 4.
Slide 13: 2019 FS - Gold Production and AISC
2019 FS - Gold Production and AISC Annual Gold Production and AISC/Ounce 180,000 $1,331 $1,400 (based on US $1,300/oz Au) 158,583 $1,233 160,000 149,704 144,154 $1,200 139,507 All-in Sustaining Costs (USD/ounce) 138,563 140,000 $1,031 125,823 126,326 121,827 121,627 $1,000 Gold Ounces, Recovered 120
Slide 14: 2019 FS - After-Tax Free Cash Flow
2019 FS - After-Tax Free Cash Flow After-tax Free Cash Flow remains positive during the construction of Phase II Expansion 200 After-Tax Free Cash Flow 600 Millions After-Tax Cumulative Cash Flow (Millions) (based on 2019 FS) 150 400 After-Tax Free Cash Flow (Millions) 100 200 50 0 0 Pre-Prod. Year
Slide 15: Project Designed for Expandability
Project Designed for Expandability As a result of the significant exploration potential on the property, the Bomboré project was designed with a focus on scalability Staged Design Scaled Project Expandability Remains Exploration Potential for Orezone Construction a Design Criteria Focus Independent
Slide 16: Enhancement Opportunities
Enhancement Opportunities 1 - Continue to enhance existing production profile 2 - Extend mine life Resource Modeling of Higher-Grade Plunging Folds, Regional Exploration to Replace 1 Improve Metallurgical Recoveries, Reduce Mining Dilution 2 Low Grade Stockpiles 180 1.02 1.03 1.01 110% 0.97 0.96 0.9
Slide 17: Evolving Geological Interpretation – High Grade Hits
Evolving Geological Interpretation – High Grade Hits Historical drilling had identified several high-grade intercepts Maga • Generally in the hanging wall zone, which is more complex than the continuous footwall shear P8P9 CFU Higher-grade intercepts did not connect when modelled using the steeply d
Slide 18: Evolving Geological Interpretation – Hanging wall
Evolving Geological Interpretation – Hanging wall Siga South Deposit – Section 10600N New geological interpretation of the hanging wall zone could improve continuity of high grade mineralization • Current resource high grade wireframes are capped at 5g/t and have a minimum width of 5m The footwall z
Slide 19: Evolving Geological Interpretation - P17S
Evolving Geological Interpretation - P17S A high-grade plunging W shaped fold was identified at P17S in 2017 19 19
Slide 20: Evolving Geological Interpretation - Artisanal Miners
Evolving Geological Interpretation - Artisanal Miners Artisanal miners identified high-grade folds at surface indicating the potential for multiple high-grade plunging folds similar to P17S in other areas within the existing pits 1 1 2 Maga 2 Maga Hill 3 P8/P9 3 4 4 Siga 20 20
Slide 21: Evolving Geological Interpretation – Drill Results
Evolving Geological Interpretation – Drill Results 2017-2018 drilling confirmed high-grade plunging folds within existing mineralization Not yet drilled approximately 85% of the drill length. True width for Maga Hill is approximately 95% of the drill length. 21 True width for P17S is approximately 8
Slide 22: 2018 Drill Results – Maga Hill
2018 Drill Results – Maga Hill Maga Hill Area – 11 Holes, 337 Au (gpt) <0.15 m 0.15-0.29 Maga 0.29-0.51 0.51-1.00 1.00-2.00 >2.00 P8P9 CFU P11 P17N Siga P17 P16 P17S P13 20 m 22
Slide 23: 2018 Drill Results - Siga East
2018 Drill Results - Siga East Hole From To Length Grade Hole From To Length Grade (m) (m) (m) (g/t Au) (m) (m) (m) (g/t Au) BBC0597 36 40 4 3.4 BBC1955 16 18 2 14.51 BBC190 34 35 1 32.0 Incl. 1 28.0 BMC0080 38 54 16 9.0 BBD0359 66.5 71 4.5 23.0 Incl. 4 29.7 Incl. 1.5 67.0 BMC0093 42 46 4 16.2 BBC05
Slide 24: 2018 Drill Results - CFU and P11
2018 Drill Results - CFU and P11 Hole From To Length Grade CFU high-grade follow-up (m) (m) (m) (g/t Au) oxide drilling targets BBC4580 30 35 5 3.2 Incl 1 10.7 Maga BBC4615 20 22 2 6.4 Incl. 1 10.4 BBC4620 30 33 3 4.19 CFU Incl. 1 11.9 P8P9 BBC4647 3 6 3 5.4 Incl. 1 12.7 P11 BBC4678 48 56 8 2.2 Incl
Slide 25: Potential Impact of New Interpretation
Potential Impact of New Interpretation Interpretation of main large shear zone in the footwall remains unchanged The addition of continuous higher-grade in the hanging wall Higher feed grade with no incremental mining or processing costs No impact on mining selectivity or grade control Excellent pot
Slide 26: 2018 Regional Oxide Exploration Results
2018 Regional Oxide Exploration Results Historical result: KT Oxide Target 2018 result: KT 4m @ 4.0 gpt P13 Oxide Target 3m @ 7.1 gpt 5m @ 1.2 gpt 6m @ 2.0 gpt 14m @ 0.8 gpt 7m @ 1.6 gpt 7m @ 1.6 gpt 10m @ 12.9 gpt 7m @ 1.6 gpt 9m @ 1.3 gpt 4m @ 3.7 gpt GHO P17N Oxide Target 1m @ 23.5 gpt P17N 6m @
Slide 27: Summary
Summary 2019 2020 2021 Orezone continues to deliver on its execution Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 plan Complete Updated Feasibility Study Finalize Project Finance Package • Focused on a project development strategy that Orezone Resettlement Action Plan (Phase I) can finance and build while maint
Slide 28: RAP & CSR
RAP & CSR 28 28
Slide 29: RAP – Sample Houses
RAP – Sample Houses Current Houses Site Construction RAP Sample Houses 29 29
Slide 30: RAP – Construction Overview
RAP – Construction Overview RAP Phase 1 housing • 935 - 1 bedrooms • 129 - 1 bedroom plus living room • 48 - 2 bedroom plus living room • Community infrastructure: schools, clinics, church and mosque etc. Seven villages being constructed Six house contractors - all locally based All access roads to
Slide 31: Livelihood Restoration Programs
Livelihood Restoration Programs Programs • Market gardens developed - agro-economist hired - additional gardens being developed • Speciality cash crops being developed- spices, shea butter • Chicken farming commenced - self funding and very successful to date • Reclamation including tree and shrub p
Slide 32: Orezone Community Initiatives
Orezone Community Initiatives 32 32
Slide 33: APPENDIX
APPENDIX 33 33
Slide 34: Capital Structure & Research Coverage
Capital Structure & Research Coverage Capital Structure (as at June 30, 2019) Insiders continue to buy ORE shares in Shares Issued 213,326,906 the market Options 16,026,838 Analyst average 12-month target price Shares Fully Diluted 229,353,744 C$1.36 Cash (as at June 30, 2019)(no debt) ~USD$22.7 M M
Slide 35: Bomboré Mineral Resource and Reserve Estimates
Bomboré Mineral Resource and Reserve Estimates Mineral Resource Estimate as of January 5, 2017 Classification Measured Indicated Measured + Indicated Inferred Cut-off Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained Au g/t 000 t Au g/t Au koz 000 t Au g
Slide 36: 2019 FS - Capital Costs - Oxides
2019 FS - Capital Costs - Oxides Oxide Project Capital by Area US$ M Initial capital costs include: Process Plant 51.4 • Construction of the OCR Infrastructure 21.3 Mining 0.8 • Completion of remaining Construction Indirects 9.9 Phase I and II RAP activities EPCM 11.2 Resettlement Action Plan 20.8 O
Slide 37: 2019 FS - Capital Costs - Sulphides
2019 FS - Capital Costs - Sulphides Construction of the Phase II Sulphide Sulphide Project Capital by Area US$ M Expansion commences in Year 2 of oxide operations Process Plant 36.2 Infrastructure 1.1 • The earthworks will have already been Construction Indirects 5.4 completed during the oxide stage
Slide 38: 2019 FS - Sustaining Capital & Closure
2019 FS - Sustaining Capital & Closure Sustaining capital costs include: ongoing tailings storage facility construction including liner, piping and valves and decant tower raises, second stage tailings pumps and motors • Also included in sustaining capital are haul road extensions, mine dewatering p
Slide 39: 2019 FS - LOM Operating Costs Breakdown
2019 FS - LOM Operating Costs Breakdown Mining costs: based on a Description Total Costs ($M) $/tonne $/ounce detailed annual mining processed schedule incorporating the Mining 386.3 5.51 242 actual haul distances and pit Processing 456.9 6.52 286 depths as per contractor Site G&A 139.4 1.99 87 quot
Slide 40: 2019 FS - Unit Mining Costs
2019 FS -Unit Mining Costs Contractor quotes are provided in BCM and converted to a cost per tonne based Unit Mining Costs By Ore Type on material density $3.00 Mining of the LT and sulphides will be by $2.55 contractor with trucks suited to the $2.50 $1.99 more abrasive and denser rock types $1.96
Slide 41: 2019 FS - Unit Processing Costs
2019 FS - Unit Processing Costs Segmented Processing Costs By Rock Type Oxide ore • Low work index $11.58 $12.00 • 2-5 kWh/t $0.54 • Low abrasion index $10.00 Processing Costs (USD/t) • 0.06 $8.00 $6.25 • 80% of ROM < 125 µm $6.52 $0.55 $6.00 • Low reagent consumption $4.83 $0.55 $0.38 $2.89 • Quart
Slide 42: Optimization Opportunities
Optimization Opportunities Geological Interpretation: Continue to refine the geological model to incorporate the knowledge gained from recent drilling at P17S and to evaluate the potential for higher-grade oxides and sulphides at depth along plunge. Metallurgical Recoveries: Recent sulphide test wor
Slide 43: Permitting
Permitting The oxide portion of the project is fully permitted, outside of the “Restricted Zones” and ready for construction and operation “Restricted Zones” are expected to be fully permitted in early 2020 All necessary Environmental Baseline Studies were completed prior to submission of the Mining
Slide 44: Management
Management PATRICK DOWNEY • Engineer with over 30 years international resource industry experience President & CEO, Director • Previously President, CEO & Director of Elgin Mining, Aura Minerals Inc. and Viceroy Exploration Ltd. prior to its acquisition of Yamana Gold Inc. for $600M • Previously Pre
Slide 45: Directors
Directors MICHAEL HALVORSON • Over 50 years experience in the securities industry Chairman • Since 1980, he has been the President of Halcorp Capital, a private investment corporation • Past director of Strathmore Minerals, Western Silver, Novagold Resources, Esperanza Silver, Pediment Exploration,
Slide 46: For more information, please contact Investor Relations
For more information, please contact Vanessa Pickering, Manager, Investor Relations: info@orezone.com Tel: 778-945-3974 46
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