Orezone Gold Corporation · TSX:ORE
Orezone Gold — Investor Presentation (June 2020)
32 slides from Orezone Gold's investor presentation, June 2020
Slide 1: Bomboré: Developing Burkina Faso's Next Gold Mine
Bomboré Developing Burkina Faso’s Next Gold Mine June 2020 Corporate Presentation TSX.V: ORE Phase I RAP construction, February 2020: Natinga Village OTCMKTS: 1 ORZCF
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 (toge
Slide 3: 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 4: Orezone's Core Principles
Orezone’s Core Principles Alignment of Management and board aligned with shareholders Interests • Acquired 5.4% of Orezone’s outstanding shares in the market Protect the Capital Focused on NAV/share and share price accretion Structure Staged development to reduce dilution Emphasis on Capital raised
Slide 5: Investment Highlights
Investment Highlights Permitted and shovel-ready project RAP Phase I Construction 95% Complete • ~95% of Phase I Resettlement Action Plan (“RAP”) construction completed • Harmonized term sheets agreed with debt providers for project financing and awaiting final site visit Excellent location with ~10
Slide 6: Management & Board
Management & Board MANAGEMENT Construction/Operations M&A Corporate & Advisory • Patrick Downey – President, CEO & Director • Viceroy Exploration • Viceroy • Cominco Ore • Peter Tam – CFO • Elgin Minerals • Dalradian Gold • Debswana Minerals • Pascal Marquis – SVP, Exploration • Victoria Gold • Clau
Slide 7: Burkina Faso: An Established Gold Country
Burkina Faso: An Established Gold Country Supportive mining jurisdiction • 14 gold mines have reached production • Majority of mines built on/ahead of schedule and on/under budget ~10Moz gold within 15km of Bomboré* • West African Resources: Sanbrado and newly acquired Toega • New high-grade gold di
Slide 8: Bomboré Location & Infrastructure
Bomboré Location & Infrastructure Located in secure south-central area of Burkina Faso, 85km from border regions 2 paved road options - both main service roads • Asphalt on both routes in good condition Fresh water supply within project boundaries Major mine equipment supply and construction compani
Slide 9: Bomboré Economics
Bomboré Economics After-Tax NPV5% & IRR at $1,300/oz Au AISC USD$/oz Base Case $1,234 $361M(1)(3)(4) / 43.8% 2.5-year after-tax payback $991 After-Tax NPV5% & IRR at $1,750/oz Au $732.7M / 88% $730 $756 0.9-year after-tax payback +13 years Mine Life 1.6Moz LOM Gold Production AISC(2) of $672/oz firs
Slide 10: Value Proposition: Enterprise Value per ounce
Value Proposition Emerging Developers Enterprise Value Trading Multiples1 $450 $415 Enterprise Value per ounce (USD/oz) $400 $342 $350 $300 $294 $300 $250 $232 $200 $200 $172 $144 $147 $150 $128 $133 $100 $82 $71 $54 $60 $41 $50 $25 $14 $11 $24 $14 $19 $20 $4 $0 Seabridge Falco Gabriel Midas Orezone
Slide 11: Value Proposition: Market Cap/NPV Multiple
Value Proposition Market Cap/NPV1 1.20x 0.97x 1.00x Market Cap/NPV Multiple 0.80x 0.72x 0.60x 0.55x 0.52x 0.40x 0.24x 0.25x 0.25x 0.20x 0.11x 0.06x 0.06x 0.00x 2 2 3 3 Falco Gabriel Midas Orezone Gold Sabina Integra Pure Gold Bluestone Victoria Gold WAF Resources Orezone is Currently Trading at a Di
Slide 12: Value Catalysts
Value Catalysts Value Catalysts Lifecycle of a Junior Mining Company • Complete Phase I RAP • Secure project financing • Update resource estimate and project economics • Project construction • Start of commercial production Prepared for a rapid restart of activities once COVID restrictions are lifte
Slide 13: Share Price Performance During Construction
Share Price Performance During Construction Share Price Performance of Single Asset Development Companies During Construction 250% West African Resources Atlantic Gold Declares Announces First Gold Commercial Production 225% (March 2020) (March 2018) Relative Share Price Performace 200% 175% 150% 12
Slide 14: West African Gold Projects Surpass Expectations
West African Gold Projects Surpass Expectations Projects in West Africa get built on or ahead of schedule and on or below budget Schedule* Budget* Project Company Location (ahead/on) (under/on) Houndé Endeavour Burkina Faso Ahead Under Ity CIL Endeavour Côte d’Ivoire Ahead Under Yaramoko Roxgold Bur
Slide 15: Bomboré Development
Bomboré Development 15 15
Slide 16: Bomboré's Advantage is its Simplicity
Bomboré’s Advantage is its Simplicity Open Pit – Carbon in Leach EARLY WORKS MINING PROCESSING Flat Topography Standard Truck and Shovel Conventional CIL Simple Established Logistics Shallow Pits Low Work Index Rapid Construction Low Pit Maintenance Fast Leach Kinetics Timeline 16 16
Slide 17: Bomboré Site Layout
Bomboré Site Layout Centralized processing facility Waste dumps designed as environmental barriers around site perimeter Waste Dumps Camp Stockpiles Mining Pits TSF OCR Process Plant 17
Slide 18: Processing Plant Expandability
Processing Plant Expandability 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 • Expandable capacity with the addition of a ball mill and leach tanks Oxide and sulphide circuits can ope
Slide 19: Leverage to Gold Price
Leverage to Gold Price Siga South Deposit – Section 10600N Current reserves of 1.8M Au oz are based on an average gold price of ~$1,185/oz M&I Resources of 5.1M Au oz are calculated using $1,400/oz With current gold prices above $1,700/oz, Bomboré offers significant expansion potential • Deposit rem
Slide 20: Exploration Upside – High-grade Zones
Exploration Upside – High-grade Zones Maga Historical drilling identified several high-grade intercepts The discovery of the high-grade P17S zone prompted a CFU reassessment of the continuity of these higher-grade hits P8P9 • Higher-grade plunging folds at 22 degrees vs 55 degrees dip P11 • Drilling
Slide 21: Exploration Upside - High-Grade Plunging W Folds
Exploration Upside - High-Grade Plunging W Folds CFU The artisanal miners were mining the Maga high-grade plunging W shoots in multiple zones throughout Bomboré CFU CFU high-grade drill intercepts include: • BBD0921: 175.1 g/t Au (75.5-76.5 m) P8/P9 • BBC0768: 118.3 g/t Au (89-90 m) • BBD0631: 65.9
Slide 22: Regional Exploration Potential
Regional Exploration Potential Historical result: KT Oxide Target 2018 result: KT 4m @ 4.0 gpt 3m @ 7.1 gpt P13 Oxide Target 6m @ 2.0 gpt 5m @ 1.2 gpt 7m @ 1.6 gpt 14m @ 0.8 gpt 10m @ 12.9 gpt 7m @ 1.6 gpt 9m @ 1.3 gpt 7m @ 1.6 gpt 4m @ 3.7 gpt GHO P17N Oxide Target 1m @ 23.5 gpt P17N 6m @ 6.6 gpt 6
Slide 23: CSR
CSR 23 23
Slide 24: RAP – Construction Overview & Update
RAP – Construction Overview & Update RAP Phase I construction • Orezone temporarily suspended all on-site activities to ensure the safety of its communities, contractors and employees • ~1,100 houses in construction - 95% complete RAP Opening Ceremony, May 2019 Attended by Burkina Faso’s Prime Minis
Slide 25: Phase I - RAP
Phase I - RAP RAP Construction RAP Construction Koksin Completed Dwellings Current Houses RAP Sample Houses 25 25
Slide 26: 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 27: Orezone Community Initiatives
Orezone Community Initiatives Harvesting Sesame Harvesting Fodder Soap Manufacturing Producing Spices Market Garden Weaving Training 27 27
Slide 28: The Orezone Opportunity
The Orezone Opportunity 28 28
Slide 29: Capital Structure & Research Coverage
Capital Structure & Research Coverage Capital Structure (as at May 6, 2020) 12 Month Share Price and Volume ORE:TSX.V Shares Issued 251,147,806 2,000,000 $1.00 1,500,000 $0.80 Volume Shares Fully Diluted 291,489,594 $0.60 1,000,000 Warrants (ORE.WT:TSX.V) 18,797,950 $0.40 500,000 $0.20 Options (CAD$
Slide 30: Why Orezone, Why Now?
Why Orezone, Why Now? Scarcity of Permitted Attractive Entry Point Leverage to Rising Gold Price Shovel-Ready Gold Projects Orezone – Bomboré $800 150% $733 Bluestone – Cerro Blanco Sabina – Back River Belo Sun – Volta Grande ~125% $600 $520 100% After-Tax NPV5% ($M) Orla – Camino Roja After-Tax IRR
Slide 31: Summary
Summary Phase 1 RAP Construction is 95% Complete Permitted Shovel-Ready Project with Robust Economics Financeable, Staged Development with Expansion Potential Experience in Mine Development, Operations and M&A Committed to Corporate Stewardship and Strong Relationship with Communities Sophisticated
Slide 32: For more information, please contact Investor Relations
For more information, please contact Vanessa Pickering, Manager, Investor Relations: info@orezone.com Tel: 778-945-3974 32