Orezone Gold Corporation · TSX:ORE
Orezone Gold — Investor Presentation (September 2015)
25 slides from Orezone Gold's investor presentation, September 2015
Slide 1: Large, Low Cost, Oxide Heap Leach Gold Deposit in West Africa
Large, Low Cost, Oxide Heap Leach Q3 - 2015 Gold Deposit in West Africa ✔Mine Permit Application ✔Feasibility ✔Local Community Support & Approvals
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 and Upside
Highlights: Good Margins and 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 fo
Slide 4: Corporate Structure
Corporate Structure ORE.TSX Shareholders Shares Issued 117.3 M 8% Management Shares Fully Diluted 126.4 M + 40% Institutional Cash 1 (Aug 14/15) $6.3 M Van Eck Ross Beaty Standby Facility 2 $5 M Sun Valley AGF Market Cap C$35 M Goodman & Co. Lombard Odier Average Daily Volume 74,000 Sprott Equinox 5
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 Sean Homuth CPA, CA CFO 14 Claude Poulin MBA Bomboré Project Manager 25 Abo
Slide 6: Burkina Faso
Burkina Faso 4th In Africa for Mineral Potential and 6th for Mining Investment (Fraser Institute, 2014) 7 Gold mines since 2007, +2 construction 5th Largest African gold producer 2003 Modernized mining code, Updated 2015 19 Million people 2015 Presidential elections Oct 11, 2015 Capital: Ouagadougou
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 Bomboré Camp 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: Bomboré Overview
Bomboré Overview • Flat, semi-arid, sparsely populated, • Low productivity agriculture • Adjacent to Major Highway, 85km from Capital City • Large local labor force, access to water and power • Highly weathered, soft oxide layer amenable to low-cost mining and processing 10
Slide 11: 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 11
Slide 12: 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 12
Slide 13: 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 14: HL/CIL Combined Flowsheet
HL/CIL Combined Flowsheet 14
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 Schedule
Bomboré Schedule 2015 2016 2017 2 3 4 1 2 3 4 1 2 3 4 Full Feasibility Study ● Resource Update ● ● ● Permitting ● ● ● ● Construction ● ● ● ● ● ● ● ● Commission / Pre-production ● ● Production ● Our Goal... Phase I – Heap Leach / CIL 135,000 oz / yr ( for years 1 – 8 ) 17
Slide 18: Heap Leach Comparables
Heap Leach Comparables Company 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 * 1.27 0.88 1.1 87 135 250 75 678 25.0 0.20 0 ($1100) T
Slide 19: Feasibility Highlights Sensitivities
Feasibility Highlights Sensitivities $350 After Tax NPV @ 5% $196M $300 $250 NPV, Million US $ $200 $150 Gold Price $1250 $100 Capital Costs $250M $50 Operating Costs $603 Exchange Rate 550/USD $0 80% 85% 90% 95% 100% 105% 110% 115% 120% Percentage of Base Case After Tax IRR 24.4% 40% 35% 30% 25% IR
Slide 20: 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 21: Community Support and Approval
Community Support and Approval Village “Town Hall” Meeting Traditional Village Ceremony ESIA & RAP Community Meeting Country Manager Chief & Commissioner 21
Slide 22: 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 23: Summary Highlights
Summary Highlights Low Cost Production - AISC $678/oz • FS at $1250 Au - NPV5% $196 M, 24.4% IRR after-tax • Mining permit expected by 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: Bondi Project – New Discovery
Bondi Project – New Discovery Near-surface, heap leachable, with potential at depth and New Discovery • 4 km trend and open along strike • Measure 0.9Mt at 2.1 g/t for 64,000 oz Indicated 3.2Mt at 2.1 g/t for 218,000 oz Inferred 2.5Mt at 1.8 g/t for 150,000 oz • 50% is oxide, all material excellent
Slide 25: Analysts and Contacts
Analysts and Contacts Analysts Comments: “Management has a long (20 yr) successful track record in Burkina Faso...” “The current share price gives no value to the critically important upside of the CIL sulphide expansion option that can leverage off of the initial oxide phase infrastructure…” Orezon
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