Orezone Gold Corporation · TSX:ORE
Orezone Gold — Investor Presentation (May 2020)
29 slides from Orezone Gold's investor presentation, May 7, 2020
Slide 1: Developing the Low Cost, High Margin Bomboré Gold Project
Developing the Low Cost, High Margin Bomboré Gold Project May 2020 Corporate Presentation Phase I 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 (toge
Slide 3: Investment Highlights
Investment Highlights Permitted and shovel-ready project RAP Phase I Construction 95% Complete • ~95% of Phase I RAP construction completed Excellent location with ~10Moz resources within 15km of Bomboré • Neighboring mine poured first gold ahead of schedule Supportive and knowledgeable shareholder
Slide 4: Capital Structure & Research Coverage
Capital Structure & Research Coverage Capital Structure (as at May 6, 2020) 12-Month Share Price & Volume 1,600,000 $1.00 Shares Issued 251,147,806 1,400,000 $0.90 $0.80 Shares Fully Diluted 291,489,594 1,200,000 $0.70 1,000,000 $0.60 Warrants (ORE.WT:TSX.V) 18,797,950 800,000 $0.50 Options (CAD$0.5
Slide 5: Orezone Management Philosophy
Orezone Management Philosophy Extensive detailed studies and peer reviews completed on the project Focus on Technical Team of mine builders and operators with a history of success Accuracy Bomboré is a technically sound project Management and board are aligned with shareholders and have acquired Ali
Slide 6: Recent Developments
Recent Developments Received ESIA approval for the Orezone is well-funded and is Phase II expansion at Bomboré prudently managing its treasury • Application filed to include the planned during this pandemic expansion in our mining permit - expected Q3 2020 “Although we are disappointed to temporaril
Slide 7: Burkina Faso: An Established Gold Country
Burkina Faso: An Established Gold Country Supportive mining jurisdiction • 14 gold mines have reached production ~10Moz gold within 15km of Bomboré* • West African Resources: Sanbrado and newly acquired Toega • New high-grade gold discoveries in this emerging district Bomboré is ideally located • 90
Slide 8: Bomboré Location & Infrastructure
Bomboré Location & Infrastructure Located in secure south-central area of Burkina Faso, 85 km from the capital of Ouagadougou and remote from troubled border regions 2 paved road options - both main service roads • Asphalt on both routes in good condition Fresh water supply located within project Ma
Slide 9: Capital Intensity & AISC vs Peers
Capital Intensity & AISC vs Peers Capital Intensity USD$/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 10: Emerging Developers Trading Values
Emerging Developers Trading Values Emerging Developers Enterprise Value Trading Multiples1 $350 $321 Enterprise Value per ounce (USD/oz $300 $258 $250 $200 $176 $174 $183 $158 $154 $150 $131 $111 $117 $87 $96 $100 $86 $56 $40 $34 $50 $24 $25 $22 $14$12 $14 $15 $4 $0 Seabridge Falco Orezone Gabriel M
Slide 11: Company Life Cycle and Value Catalysts
Company Life Cycle and Value Catalysts Project development timeline Lifecycle of a Junior Mining Company delayed in light of COVID-19 Value Catalysts • Complete Phase I RAP • Update resource estimate and project economics • Secure project financing • Project construction • Start of commercial produc
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: 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 At current gold prices above $1,700/oz Bomboré offers significant expansion potential • Deposit remain
Slide 14: 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 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, High-Grade Plunging W Folds
Evolving Geological Interpretation, High-Grade Plunging W Folds CFU The artisanal miners have been mining Maga the 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
Slide 17: 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 18: 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 19: Phase I - RAP
Phase I - RAP RAP Construction RAP Construction Koksin Completed Dwellings Current Houses RAP Sample Houses 19 19
Slide 20: 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 21: Orezone Community Initiatives
Orezone Community Initiatives Harvesting Sesame Harvesting Fodder Soap Manufacturing Producing Spices Market Garden Weaving Training 21 21
Slide 22: Summary
Summary Orezone has elected to temporarily suspend on-site activities in order to ensure the health and safety of its community members, contractors and employees • RAP construction is 95% complete and Orezone is prepared for a rapid restart of activities when appropriate Permitted and advanced deve
Slide 23: For more information, please contact Vanessa Pickering
For more information, please contact Vanessa Pickering, Manager, Investor Relations: info@orezone.com Tel: 778-945-3974 23
Slide 24: Appendix
Appendix 24
Slide 25: 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 26: 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 27: 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 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: Thank You
Thank You 29 29