Slide 1: Bomboré Gold Project Feasibility Study Update
Bomboré Gold Project Feasibility Study Update Webcast June 27, 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: Capital Structure & Research Coverage
Capital Structure & Research Coverage Capital Structure ❖ Insiders continue to buy ORE shares in (as at June 26, 2019) the market Shares Issued 213,326,906 ❖ Analyst average 12 month target price: Options 16,026,838 C$1.26 Shares Fully Diluted 229,353,744 Equity Research Coverage Cash (as at March 3
Slide 4: Study Focus
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 replace oxides ❖ Sulphide Expansion funded from oxide
Slide 5: Project Highlights
Project Highlights ❖ Pre-tax NPV5% of $513.5M and IRR(1) of 61.9% of with a 1.5 year payback ❖ After-tax NPV5% of $361.0M and IRR of 43.8% with a 2.5 year payback ❖ Mine life of 13+ years with LOM gold production of 1.6M ounces and average annual production of 133.8k ounces in the first 10 years ❖ I
Slide 6: Technical Summary
Technical Summary ❖ The Phase I oxide operation is scheduled to commence commercial production in Q4-2021 • 23-month construction period followed by 4 months of commissioning ❖ Construction of the sulphide expansion will start in 2023 with the introduction of sulphide feed in Q1-2024 ❖ The sulphide
Slide 7: Key Project Changes
Key Project Changes ❖ Resource Update - Additional Reserves from P17S and the oxides within the “Restricted Zones” ❖ Increased throughput - Increase in the annual plant throughput from 4.5 to 5.2Mtpa ❖ Larger ADR plant – 10t Vs 5t in 2018 study ❖ Revised tailings dam design ❖ Gold price from $1275 t
Slide 8: Key Project Changes (Cont’d)
Key Project Changes (Cont’d) Description 2018 FS 2019 FS Base Case Gold Price (US$/oz) 1,275 1,300 Mine Life (years) 12.3 13.3 Total Waste Tonnes Mined (Mt) 93.8 164.4 Total Ore Tonnes Mined (Mt) 56.0 70.1 Strip Ratio 1.68 2.34 Production Processing Annual Throughput (Mt) 4.5 5.2 Total Gold Ounces R
Slide 9: Key Project Changes (Cont’d)
Key Project Changes (Cont’d) Capital Costs 2018 FS 2019 FS Initial Construction Costs ($M) 143.7 153.0 Sustaining Capital Costs ($M) 58.9 66.2 Closure Costs ($M) 14.5 17.9 Financials1, 2 Pre-tax NPV(5%)(millions) 315.3 513.5 Pre-tax IRR 59.4% 61.9% Post-tax NPV(5%)(millions) 224.5 361.0 Post-tax IRR
Slide 10: Bomboré Location & Local Infrastructure
Bomboré Location & Local Infrastructure ❖ Located 85 km from the capital city along a major paved highway in a Access Road secure location ❖ Located 5 km from town of Mogtédo with a population of 15,000; easy access to skilled local workforce, housing and logistics ❖ Excellent infrastructure with
Slide 11: Secure Region of Burkina Faso
Secure Region of Burkina Faso ❖ Bomboré is located in an area of low risk ❖ Within 90 minutes of the capital ❖ Along a patrolled major highway Bomboré ❖ Located in proximity of military training facility ❖ Significant police and military presence Zone of enhanced vigilance New Cartography of Ris
Slide 12: Resource Estimate
Resource Estimate ❖ Updated the January 2017 resources by incorporating drill results from P17S and the previously “restricted zones” • Tonnes increased by 5.9% • Contained gold increased by 6.6% Classification Measured Indicated Measured + Indicated Inferred Cut-off Tonnage Grade Contained Tonnage
Slide 13: 2019 Reserve Statement
2019 Reserve Statement ❖ Key reserve update changes include: • Proven and Probable tonnes increased from 56M to 70M • Grade increased from 0.64 to 0.81 g/t gold • Addition of 686K contained gold ounces Classification Proven Probable Proven & Probable Tonnage Grade Contained Tonnage Grade Contained T
Slide 14: 3D Combined Processing Plant
3D Combined Processing Plant Stage 1: Oxide Plant Stage 2: Sulphide Circuit 14 14
Slide 15: LOM Operating Cost Breakdown
LOM Operating Cost Breakdown ❖ Mining costs: based on a detailed annual mining schedule incorporating haul distances and pit depths as per contractor quotes $/tonne Description Total Costs ($M) $/ounce processed ❖ Processing costs based on: Mining 386.3 5.51 242 • Annual feed blend Processing 456.9
Slide 16: Initial Capital Costs - Oxides
Initial Capital Costs - Oxides Oxide Project Capital by Area US$ 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 17: Expansion Capital Costs - Sulphides
Expansion Capital Costs - Sulphides ❖ Construction of the Phase II Sulphide Expansion commences in Year 2 of oxide operations • The earthworks will have already been completed during the oxide stage • Additional HFO power generation units will be added as necessary by the IPP • A small focussed owne
Slide 18: Sustaining Capital Costs and Closure Costs
Sustaining Capital Costs and Closure Costs ❖ 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 dewate
Slide 19: Production and Grade Profile
Production and Grade Profile Annual Gold Production, Head Grade and Recovery % 180 1.02 1.03 1.01 110% 0.97 0.96 160 0.91 0.89 85.8% 0.88 0.85 0.85 85.8% 78.7% 90% 140 92.3% 92.3% 91.2% 88.7% 88.7% 87.2% 86.0% 85.0% 85.4% 85.3% 83.9% Recovered Gold (k oz) 120 80.1% 70% 0.78 0.62 100 0.50 0.40 50% 80
Slide 20: Gold Production and AISC
Gold Production and AISC Annual Gold Production and AISC/Ounce 180,000 $1,331 $1,400 158,583 $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 120,000 112,066 $878 $755 $767 $761 100,
Slide 21: Project Development Timeline
Project Development Timeline 2019 2020 2021 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Complete Updated Feasibility Study Finalize Project Finance Package Resettlement Action Plan Tailings Storage Facility Off Channel Reservoir Development EPCM Process Plant Construction Commissioning Process Plant Ramp-Up Fi
Slide 22: 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
Slide 23: Please contact Vanessa Pickering, Manager IR
Please contact Vanessa Pickering, Manager IR with any questions you may have regarding the 2019 FS Tel: 778-945-3974 Cell: 604-202-2940 vpickering@orezone.com 23