Slide 1: Expanding the Largest Undeveloped Gold Deposit in Burkina Faso
Expanding the Largest Undeveloped Gold Deposit in Burkina Faso June, 2011
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: Background
Background Orezone Resources Orezone Gold 1995 - 2009 2009 (ORE.T ) Essakane Same team 1.5 5.3 Moz + 3 gold projects Bomboré 0.9 3.5 Moz ? Permits Financing Construction ( 1.6 M&I + 1.9 Inf ) Market Cap Buys Orezone (OZN.T) Jan 2009 : $ 20 M $350 M June 2011 : $ 345 M 3
Slide 4: Investment Highlights
Investment Highlights 1 Potential world-class gold deposit, in Burkina Faso • 11 km long with 1.6 Moz M&I + 1.9 Moz Inferred • 35,000 oz/vertical meter, with avg. drill depth to date of 60 m • Goal: +250,000 oz/year by 2015 2 Veteran team has discovered, developed, operated & sold gold co’s • Engine
Slide 5: Summary: Gold Resources
Summary: Gold Resources Category Tonnes Grade Gold Content (millions) (Au g/t) (ounces) Bomboré Measured & Indicated 60.9 0.81 1,589,000 Inferred 60.6 0.96 1,873,000 Sega Measured & Indicated 8.3 1.69 450,400 Inferred 2.9 1.58 147,300 Bondi Measured & Indicated 4.1 2.12 282,000 Inferred 2.5 1.84 149
Slide 6: Capital Structure
Capital Structure Shares Issued 83.1 million Shares Fully Diluted 89.6 million (no warrants) Directors & Management Interest 5% Top Institutional Shareholders ~50% • Passport Capital • AGF • JP Morgan • IG • Van Eck ETF • UBS • Beutel Goodman • BMO • Tocqueville • TAL • First Eagle • RBIM • Standard
Slide 7: Experienced Team
Experienced Team Senior Management Years Experience Ron Little P.Eng Founder, CEO & President 25 Pascal Marquis PhD, P.Geo SVP Exploration 25 Sean Homuth CA CFO 10 George McTaggart MBA VP Corporate Development 25 Joe McCoy MBA VP Administration 25 Board of Directors Ron Little Founder, CEO & Preside
Slide 8: Burkina Faso
Burkina Faso 16 Million people. French speaking. 1987 Stable democracy 2004 Modernized mining code 22% Birimian greenstone belts 6 New gold mines since 2007 Global ranking in “Current Mineral 6th Potential Index” (Fraser Institute, 2010) 4th Largest African gold producer by 2012 Re-elected Capital:
Slide 9: Geological Setting: Birimian Greenstone Belt
Geological Setting: Birimian Greenstone Belt Trans-crustal structure: Markoye-Tiébélé Fault Large deposit association 200 km Essakane 6.1 Moz IAMGOLD Taparko 1.1 Moz High River Bombore 3.5 Moz Orezone Kiaka 1.9 Moz Volta Youga 0.8 Moz Endeavour 9
Slide 10: Bomboré Gold Project
Bomboré Gold Project • Low population density Adjacent to paved • Flat terrain highway • Preliminary impact Power: 20 kV on the permit assessment complete & 132 kV 10 km south 10
Slide 11: Project Overview
Project Overview Reservoir N Heap Leach Pad Waste Rock Pit 11 km Shells 2010 Resource Update (NI 43-101) Meas. & Indicated 60.9 Mt 0.81 g/t 1.6 Moz Inferred 60.6 Mt 0.96 g/t 1.9 Moz 11
Slide 12: Bomboré Pit-Shell Cross-Section
Bomboré Pit-Shell Cross-Section W E Looking North 100 m Oxide Fresh Heap CIL Pit Leach Pit Drilling at Depth 12
Slide 13: Preliminary Economic Assessment: Summary
Preliminary Economic Assessment: Summary • G Mining Services Inc. (Montreal) completed Preliminary Economic Assessment 1 of Bomboré Gold Project – G Mining history in country building Essakane (6 Moz) – Bomboré: Heap Leach & CIL standalone comparisons – Based on Oct 2010 NI 43 -101 resource update (
Slide 14: PEA Base Case Highlights
PEA Base Case Highlights $1000/oz gold pit shell, $1100/oz gold in revenue, $80/bbl oil, all other costs are current market Description Heap Leach CIL Mineral Resource in mine plan (ounces) 1,171,529 2,506,608 Average Grade (g/t) 0.83 0.94 Maximum Throughput (million tonnes) 5.8 9.3 Mine Life (years
Slide 15: PEA Highlights (continued)
PEA Highlights (continued) $1000/oz gold pit shell, $1100/oz gold in revenue, $80/bbl oil, all other costs are current market Description Heap Leach CIL Total Project NPV (0%) ($M) $166.7 $320.3 NPV (5%) ($M) $88.3 $124.8 IRR 14.7% 10.2% Orezone (90%) (1) NPV After tax (0%) ($M) $105.0 $207.6 NPV Af
Slide 16: Mineral Resources Used In PEA Mine Plan
Mineral Resources Used In PEA Mine Plan Heap Leach CIL Category Fresh Sap + Lat Transition Total Sap + Lat Transition Total Rock Tonnes (kt) 21,848 8,439 30,288 26,496 8,504 11,017 46,016 Indicated Grade (g/t) 0.80 0.86 0.82 0.74 0.93 1.16 0.87 In-situ koz 564 232 796 626 254 410 1,290 Tonnes (kt) 1
Slide 17: Gold & Oil Price Sensitivity
Gold & Oil Price Sensitivity Base Current Gold ($1000 /oz pit shell) Case Price Scenario 1 2 3 4 5 6 7 8 Gold Price ($/oz) $900 $1000 $1100 $1200 $1300 $1400 $1500 $1700 Oil Price ($/bbl) $60 $70 $80 $90 $100 $110 $120 $140 Heap Leach (90% to Orezone) NPV After tax (0%) ($M) -41.0 36.2 105.0 157.6
Slide 18: Estimated Annual Gold Production
Estimated Annual Gold Production ($1000 /oz pit shell) Year 1 2 3 4 5 6 7 8 9 10 Total Heap Leach Gold Prod’n (koz) 148 129 117 124 110 117 133 66 944 Head Grade (g/t) 0.98 0.85 0.77 0.82 0.73 0.78 0.88 0.79 0.83 CIL Gold Prod’n (koz) 305 255 226 253 227 222 244 234 184 34 2,185 Head Grade (g/t) 1
Slide 19: Unit Processing Costs by Rock Type
Unit Processing Costs by Rock Type ($/tonne) Laterite / Transition Weighted Heap Leach Saprolite Average Energy $1.01 $1.11 $1.03 Labour $1.15 $1.15 $1.15 Materials & Reagents $4.62 $3.76 $4.39 Total $6.78 $6.02 $6.57 Saprolite Transition Fresh Rock Weighted CIL Average Energy $1.29 $2.59 $5.07 $2.8
Slide 20: Initial Project Capital Costs
Initial Project Capital Costs Description Heap Leach CIL Infrastructure $13.6 $19.5 Water $9.4 $15.6 Power $4.9 $38.8 Mining $50.7 $129.9 Process Plant $34.9 $98.4 Indirects $40.2 $48.8 Pre-production & General Services $29.0 $103.1 Contingency $22.0 $45.4 Total ($ millions) $204.7 $499.5 NOTES: Ini
Slide 21: Operating Costs for Each Base Case Scenario
Operating Costs for Each Base Case Scenario Heap Leach CIL Total Costs Avg. Cost Avg. Cost Total Cost Avg. Cost Avg. Cost Category $M $/t milled $/oz $M $ /t milled $ /oz Mining $254.4 $5.79 $268 $633.7 $7.64 $290 Processing $286.5 $6.52 $302 $648.0 $7.81 $297 General Services $91.6 $2.08 $97 $229.0
Slide 22: Key Factors to Improve Economics
Key Factors to Improve Economics • 170,000 m of Drilling Resource Update N – 140% increase in total drilling – Improve continuity and lower strip ratio – Upgrade inferred to measured and indicated – Increase resources • Optimized pit shells with higher gold price 11 km 11km – Current PEA based on
Slide 23: Bomboré Schedule
Bomboré Schedule 2011 2012 2013 2014 2015 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Drilling: Infill & Expansion x x x x x x Prelim Economic Assess’t x Resource Update x Full Feasibility Study x Permitting x x Construction x x x x x x x Production x x x x Our Goal: + 250,000 oz / yr 23
Slide 24: Comparable gold deposits?
Comparable gold deposits? Kinross Tasiast Orezone Bomboré Mauritania Burkina Faso 7.5 km 2010 pitshell 11 km 2010 CIL pitshell 300 m Depth of drilling 60 m Average drilling depth to date 32,000 oz Gold per vertical meter 35,000 oz Gold per vertical meter 9.7 Moz @ 1.3 g/t 3.5 Moz @ 0.9 g/t Time will
Slide 25: Sega Gold Project
Sega Gold Project Near-surface, heap leach gold deposit adjacent to Kalsaka mine (Cluff Gold) • 313 km² project area • 18 km to Kalsaka Mine • 455,000 oz Indicated • 147,000 oz Inferred • Grade 1.7 g/t • 7 pittable deposits • Heap leach potential • Detailed metallurgy - Q1 • Feasibility study - Q4 2
Slide 26: Bondi Gold Project
Bondi Gold Project Near-surface, heap leachable, with potential at depth 1km • 282,000 oz Indicated • 150,000 oz Inferred • Average Grade 2.0 g/t • Higher Grades up to 20g/t Zone Z2 Drill Hole Highlights Results over 4g/t Hole # from to m g/t Section BRC130 8.0 16.0 8.0 4.4 2925 BRC100 4.0 27.0 23.0
Slide 27: Uranium - Niger
Uranium - Niger Under-explored uranium properties adjacent to producing mines Niger: 3rd largest uranium producing region worldwide by 2014 • Brighton Energy Corp 67% owned by Orezone Gold • 5 permits 4,000km² • Well-funded: $4M • Adjacent to operating mines (Areva) • Adjacent to GoviEx (Friedland
Slide 28: Corporate Social Responsibility
Corporate Social Responsibility Water for Communities • Support communities by establishing water and sanitation services • Over $650,000 raised and spent to date for water projects / Ryan’s Well Foundation Education and Training • $190,000 invested to date • Collaborative research with Universities
Slide 29: Comparables
Comparables Orezone provides upside opportunity Millions of Ounces Gold $152 Enterprise Value per Ounce (USD) (Market Cap – Cash + Debt) / Total Ounces $65 $66 $51 $235 $203 $129 Orezone 2.0 g/t 2.2 1.4 1.0 1.0 1.1 1.2 g/t Avg. Grade Data as of June 20, 2011 29
Slide 30: Growing Analyst Coverage
Growing Analyst Coverage Target Institution Analyst Report (CDN) Cosmos Chiu Dec 2010 $7.50 Nicholas Campbell May 2011 $7.50 Brian Christie Dec 2010 $6.75 Brad Humphrey Apr 2011 $6.10 Andrew Breichmanas Jan 2011 $5.00 30
Slide 31: Orezone Gold Corporation
Orezone Gold Corporation 290 Picton Avenue, Suite 201 Ottawa, Ontario, Canada www.orezone.com info@orezone.com Toll Free: 1-888-673-0663 Tel: 1-613-241-3699