Orezone Gold Corporation · TSX:ORE
Orezone Gold — Investor Presentation (March 2020)
30 slides from Orezone Gold's investor presentation, March 2020
Slide 1: Developing the Low Cost, High Margin Bomboré Gold Project
Developing the Low Cost, High Margin Bomboré Gold Project March 2020 Corporate Presentation Phase 1 RAP construction, February 2020: Natinga Village 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 and “forward-looking statement” within the meaning of applicable USA securities laws. Forward- looking information and forward-looking statements (tog
Slide 3: Investment Highlights
Investment Highlights Fully permitted, shovel-ready project • Ready to go in a rising gold market • ~85% of Phase 1 RAP construction completed Excellent location with ~10Moz resources within 15km of Bomboré • Neighbouring mine in construction and commissioning phase is ahead of schedule Supportive a
Slide 4: Orezone Management Philosophy
Orezone Management Philosophy Extensive detailed studies and peer reviews completed on the project Focus on Technical Outstanding team of experts with a history of success Accuracy Bomboré is a technically sound project Management and board are aligned with shareholders and have acquired Alignment o
Slide 5: Orezone: A Refocused Story
Orezone: A Refocused Story Since 2017, Orezone’s new management has delivered on all of 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 D
Slide 6: Company Life Cycle and Value Catalysts
Company Life Cycle and Value Catalysts Value Catalysts Lifecycle of a Junior Mining Company • Update Resource Estimate and Project economics • Complete Phase 1 RAP • Secure Project Financing • Start of Construction • H2-2021 – First Gold Pour Orezone has significant upcoming catalysts to create valu
Slide 7: Burkina Faso: An Established Gold Country
Burkina Faso: An Established Gold Country Supportive mining jurisdiction • 13 gold mines have reached commercial production • 1 gold mine in commissioning phase ~10Moz gold within 15km of Bomboré* • West African Resources: Sanbrado • B2 Gold: Toega • New high-grade gold discoveries in this emerging
Slide 8: Regions of Terrorism Activity
Regions of Terrorism Activity France, Burkina Faso, Mali, Niger, Chad and Mauritania agree to a joint command structure to tackle insurgency France commits an additional 220 troops in addition to the 4,500 troops already in the Sahel Bomboré Bomboré Bomboré The areas of higher risk are in the border
Slide 9: Bomboré Location & Infrastructure
Bomboré Location & Infrastructure 85 km from the capital of Ouagadougou 2 paved road options - both main service roads • Asphalt on both routes in good condition • Lower likelihood of IED Active military presence on both routes Few critical infrastructures Active occupied military shooting range - u
Slide 10: Capital Intensity & AISC vs Peers
Capital Intensity & AISC vs Peers Capital Intensity USD$/oz AISC USD$/oz $300.00 $1,234 $244/oz $250.00 $222/oz $991 $200.00 $165/oz $730 $756 Average: $154/oz $138/oz $138/oz $150.00 $120/oz $125/oz $100.00 $79/oz Continental Orezone Pure Gold $50.00 Belo Sun Lundin Sabina Falco WAF $0.00 Orezone W
Slide 11: West African Gold Projects Surpass Expectations
West African Gold Projects Surpass Expectations Many projects in West Africa are built ahead of schedule and on or below budget Schedule* Budget* Project Company Location (ahead/on) (under/on) Houndé Endeavor Burkina Faso Ahead Under Ity CIL Endeavor Côte d’Ivoire Ahead Under Yaramoko Roxgold Burkin
Slide 12: 2019 Feasibility Study Highlights
2019 Feasibility Study Highlights 2019 FS Base Case @ $1,300/oz Au: Operating Highlights: • After-tax NPV5% of $361M(1)(3)(4) • 13+ years mine life • After-tax IRR of 43.8% • LOM gold production of 1.6Moz • 2.5-year after-tax payback • Average annual production: Sensitivity @ $1,500/oz Au: • 153koz
Slide 13: Combined Processing Plant
Combined Processing Plant Oxide plant capacity of 5.2Mtpa • Oxide feed reduced to 3Mtpa upon Stage 1: Oxide Plant commissioning of the sulphide circuit Sulphide circuit capacity of 2.2Mtpa Oxide and sulphide circuits can operate independently Leach circuit design allows for additional tanks ADR plan
Slide 14: After-Tax Cumulative Cash Flow
2019 FS - After-Tax Free Cash Flow 200 After-Tax Free Cash Flow 600 Millions (at USD $1,300/oz Au) After-Tax Cumulative Cash Flow (Millions) 150 (based on 2019 FS) 400 After-Tax Free Cash Flow (Millions) 100 200 50 0 0 Pre-Prod. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Slide 15: Evolving Geological Interpretation – High-Grade Hits
Evolving Geological Interpretation – High-Grade Hits Maga Historical drilling identified several high-grade intercepts Higher-grade intercepts did not connect when modelled CFU using the steeply dipping main shear footwall P8P9 interpretation P11 The discovery of the high-grade P17S zone prompted a
Slide 16: Evolving Geological Interpretation – Hanging wall
Evolving Geological Interpretation – Hanging wall Siga South Deposit – Section 10600N New geological interpretation of the hanging wall folded zones is expected to improve continuity and the metal inventory The footwall zone is well-defined and understood • Along the western side of a +13 km shear-z
Slide 17: Evolving Geological Interpretation, High-Grade Plunging W Folds
Evolving Geological Interpretation, High-Grade Plunging W Folds CFU The artisanal miners have been Maga mining the high-grade plunging W shoots in multiple zones throughout Bomboré CFU CFU grab samples include: P8/P9 • 175 g/t Au • 118 g/t Au • 103 g/t Au Siga E • 66 g/t Au Excellent follow-up drill
Slide 18: P16 Down-Plunge Potential
P16 Down-Plunge Potential P16 mineralized zone plunging North, open at depth, potential HG ore shoots 6m @ 5.0 gpt 12m @ 2.5 gpt 9m @7.6 gpt 13.5m @ 2.9 gpt 6m @ 7.6 gpt 12m @ 15.3 gpt 6m @ 4.7 gpt 15m @ 5.9 gpt 5m @ 5 gpt Multigram and 16.5m @ 9.1 gpt 9m @ 2.7 gpt multimeter drill intercepts 5m @ 1
Slide 19: RAP – Construction Overview & Update
RAP – Construction Overview & Update The Resettlement Action Plan (RAP) Phase 1 is progressing well with construction to be completed in Q1-2020 and final relocation in Q2-2020 • ~1,100 houses in construction RAP Opening Ceremony, May 2019 Attended by Burkina Faso’s Prime Minister and • Community in
Slide 20: Phase 1 - RAP
Phase 1 - RAP RAP Construction Koksin Completed Dwellings Koksin Completed Dwellings Current Houses RAP Sample Houses 20 20
Slide 21: Livelihood Restoration Programs
Livelihood Restoration Programs Programs • Market gardens developed - agronomist 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 plan
Slide 22: Orezone Community Initiatives
Orezone Community Initiatives Harvesting Sesame Harvesting Fodder Soap Manufacturing Producing Spices Market Garden Weaving Training 22 22
Slide 23: Capital Structure & Research Coverage
Capital Structure & Research Coverage 12-Month Share Price & Volume Capital Structure (as at Jan. 30, 2020) 1,400,000 $1.00 Shares Issued 250,972,806 1,200,000 $0.80 1,000,000 Warrants (ORE.WT:TSX.V) 18,797,950 800,000 $0.60 Options 16,376,838 600,000 $0.40 400,000 Shares Fully Diluted 286,147,594 $
Slide 24: Summary
Summary Located in a leading gold development country with 13 producing gold mines • Commissioning of the 14th gold mine in Burkina Faso is ahead of schedule and located ~10km from Bomboré Permitted, advanced development project with robust economics at USD $1,300/oz Au • At $1,500/oz Au, Bomboré’s
Slide 25: Appendix
Appendix 25
Slide 26: Management
Management Patrick Downey – President, CEO & Director Ian Chang – VP, Projects • Engineer with +30 years resource industry experience • Mechanical Engineer, +33 years experience • Previously President, CEO & Director of Elgin Mining, Aura Minerals and Viceroy Exploration before its acquisition by Ya
Slide 27: Directors
Directors Michael Halvorson - Chairman Charles Oliver - Director • Over 50 years experience in the securities industry • Over 30 years experience as an award-winning fund manager • President of Halcorp Capital, a private investment corporation, since 1980 • Previously with Sprott Asset Management as
Slide 28: New Resource Estimate: Enhancement Opportunities
New Resource Estimate: Enhancement Opportunities New drilling and resource modeling are expected to: 1. Extend mine life 2. Add higher grade ounces within existing pits 3. Increase M&I resources in near-surface oxides 4. Improve existing production profile – more reserve ounces in same annual range
Slide 29: 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 30: For more information, please contact Investor Relations
For more information, please contact Vanessa Pickering, Manager, Investor Relations: info@orezone.com Tel: 778-945-3974 30