Slide 1: Large, Low Cost, Oxide Heap Leach Gold Deposit in West Africa
Large, Low Cost, Oxide Heap Leach Gold Deposit in West Africa Q2- 2016 ✔ Feasibility ✔ Ministry of Environment Audit - Mine Permit expected in Q2
Slide 2: Forward Looking Statements
Forward Looking Statements 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; targe
Slide 3: Highlights - Good Margins & Upside
Highlights - Good Margins & Upside Bomboré >4.6 Moz (4.6 M&I at 1.0 g/t + 0.7 Inferred at 1.2 g/t) 2.0 Moz Oxide Cap – Heap Leach + No-Grind CIL Phase I + 2.6 Moz Sulphides – CIL Expansion Phase II, FS largely complete + Expansion Potential – Open at depth and along strike Feasibility Highlights for
Slide 4: Corporate Structure
Corporate Structure ORE.TSXV Shareholders Shares Issued 127.3 M 8% Management Shares Fully Diluted 136.8 M + 40% Institutional Cash 1 (Mar 31/15) $6.9 M Van Eck Ross Beaty Standby Facility 2 $5 M Sun Valley AGF Market Cap C$76 M Goodman & Co. Lombard Odier Average Daily Volume 100,000 Sprott Equinox
Slide 5: Experienced Team
Experienced Team Management Years Experience Ron Little P.Eng Founder, CEO & President, Director 30 Pascal Marquis Ph.D., P.Geo SVP Exploration (Previously Agnico) 30 Tim Miller Chem, MBA COO (Previously Goldcorp, Glamis) 30 Joe McCoy MBA CFO 30 Aboubakar Sidikou Country Manager 20 Ousseni Derra MSc
Slide 6: Burkina Faso
Burkina Faso 4th In Africa for Mineral Potential and 6th for Mining Investment (Fraser Institute, 2014) 8 Gold mines since 2007, +1 under Const. 5th Largest African gold producer 2003 Modernized mining code, Updated 2015 19 Million people 2016 New President Roch M.C. Kaboré Capital: Ouagadougou + 1
Slide 7: Burkina Faso Gold Endowment
Burkina Faso Gold Endowment Gold Mine (2P+M&I, including past production) Gold Deposit ((2P+M&I) Niger Essakane Orezone Deposits (M&I) Inata 6.5 Moz 2.7 Moz Karma 0 100 200 km Taparko/Bouroum 2.6 Moz 1.6 Moz Samira Hill Bissa/Bouly 2.5 Moz 4.4 Moz Kalsaka/ 1.0 Moz Sega OUAGADOUGOU Mana Natougou 6.2
Slide 8: Bomboré - Local Infrastructure
Bomboré - Local Infrastructure 11 km Current Mine Plan 168 km² Ouaga Office 8 Access Road
Slide 9: Bomboré Gold Resources (NI 43-101)
Bomboré Gold Resources (NI 43-101) Tonnes Grade Gold Content Category (millions) (Au g/t) (ounces) April 26, 2013 Resource (constrained to a $1400 CIL pit shell; includes 2015 2P Reserves) * Oxidized Measured & Indicated 67.1 0.91 1,963,000 Oxidized Inferred 6.4 0.92 189,000 Sulphide Measured & Indi
Slide 10: Feasibility Highlights, Sensitivities
Feasibility Highlights, Sensitivities Mine Plan Contained Gold at $1,100 Au (ounces) 1,465,000 Average Gold Grade (g/t) 0.88 Years (1-8) / LOM 0.76 $350 After Tax NPV @ 5% $196M Processing Throughput (Mt/yr) 5.5 $300 Mine Life (years) 10.7 Average Annual Gold Production (ounces) 135,000 Years (1-8)
Slide 11: Gold Recovered – Optimized Plan
Gold Recovered – Optimized Plan Gold Recovered 200,000 1.21 Average ROM Grade 180,000 160,000 140,000 Recovered Ounces - No Mining - 120,000 Processing of Low Grade Stock Pile 100,000 80,000 60,000 40,000 1.21 1.09 0.95 0.88 0.87 0.73 0.75 0.58 0.42 0.42 0.42 20,000 0 1 2 3 4 5 6 7 8 9 10 11 Product
Slide 12: Bomboré Overview
Bomboré Overview Mine Layout Gold in Soil Geochemistry Waste Dumps TSF / Leach Pad 11 km Plant 1 Km Pit shells ppb Au 2015 Pit shells 500 using $1100 Au 100 Expansion 50 potential 0 12
Slide 13: Bomboré Drilling Cross Section
Bomboré Drilling Cross Section Gold mineralization continues at depth Siga South Deposit – Section 10600N Phase I Oxide Only $1100 pit shell Phase II CIL Sulphide $1400 pit shell 13
Slide 14: Heap Leach + No-Grind CIL Circuit
Heap Leach + No-Grind CIL Circuit Two Stage Sizing Scrubber / Screen in NaCN Scrubber 50% Fine Ore to CIL 50% Coarse Ore to HL • < 212 micron fraction • > 212 micron fraction • 87-92% Recovery in 12 hr • 82-88% Recovery in 75 d • 45 m TFS, 60 m HL pad • 60 m stacking height • Reduces footprint and $
Slide 15: Process Plant Layout
Process Plant Layout Primary Crusher Scrubber / Classifiers Leach Pad Stockpile 15
Slide 16: Heap Leach Pad & Tailings Facility
Heap Leach Pad & Tailings Facility HEAP LEACH PAD Solution Flow TAILINGS DAM PROCESS PLANT Solution Reclaim 200 m 16
Slide 17: Bomboré Timeline to Production
Bomboré Timeline to Production 2016 2017 2018 4 1 2 3 4 1 2 3 4 1 2 3 Resource Update ● ● ● Mine Permitting ● ● ● Engineering, Financing or Partner ● ● ● Construction (20 months) ● ● ● ● ● ● ● Commission / Pre-production ● ● Production ● Note: Timeline to Production is dependent upon a full project
Slide 18: Strong Community Relations
Strong Community Relations Orezone philosophy: Collaboration Mutual respect Long-term approach following IFC guidelines Leverages experience gained from Essakane New Water Well at Nobsin with Local Dignitaries Enthusiastic response to: Healthcare investments: clinics, sanitation Wate
Slide 19: Local Support & Approvals
Local Support & Approvals ✔ All Villagers and Artisanal Miners support the project and have signed-off to protocols under IFC guidelines Phase 1 # Families # People Villagers 351 2,460 Phase 1 Miners - Sanam Yaar 914 1,920 Phases 2 & 3 Villagers 258 1,805 Phase 1 Miners - Kagtanga 446 940 Phase 2 Ph
Slide 20: Heap Leach Comparables
Heap Leach Comparables Project Mineable Diluted Strip Recov Annual Initial Sustain TotalCash Crush Cyan Cement (Model price) Reserves Grade Ratio Prod. Capex Capex plus Size Cons. Agglom. Sus. Costs Moz g/t % koz M$ M$ $/oz mm Kg/t Kg/t Bomboré * 1.26 0.88 1.1 87 135 250 75 678 25.0 0.20 0 ($1100) T
Slide 21: NPV & Cash Flow Torque to Gold Price
NPV & Cash Flow Torque to Gold Price Based on first 8 years average production $350 $70 $325 NPV5% to Orezone Orezone Cash Flow $300 $60 Burkina Gov’t Base Cash Flow NET ANNUAL CASH FLOW US$ M $275 $250 $50 NPV 5% US$ M $225 $200 $40 $175 $342 $150 $30 $282 $125 $222 $100 $20 $170 $75 $50 $109 $10 $
Slide 22: AISC Comps vs other HL and CIL Projects
AISC Comps vs other HL and CIL Projects Don’t let the grade mislead you… All in Sustaining Costs are not always lower for higher grade deposits Bomboré vs. Heap Leach Projects Bomboré vs. CIL Projects AISC (US$/oz) AISC (US$/oz) Grade (g/t) Grade (g/t) Note: For both charts, the bubble size reflects
Slide 23: Bomboré Summary
Bomboré Summary Low Cost Production - AISC $678/oz • FS at $1,250 Au - NPV5% $196 M, 24.4% IRR after-tax • Mining permit expected late Q1 2016, Capex $250 M • 135,000 oz/yr for first 8 years, 2.7 year payback Higher Grade Heap Leach + No-Grind CIL Process Heap leach combined with CIL results in low
Slide 24: Analysts and Contacts
Analysts and Contacts Located only 85 km East of the Capital City along a major highway. “Management has a long 20 year successful track record in Burkina Faso.” “The underlying well studied sulphide resource is the Unrecognized leverage on value to ORE.” Orezone Gold Corporation 290 Picton Avenue,