Orezone Gold Corporation · TSX:ORE
Orezone Gold — Investor Presentation (July 2011)
31 slides from Orezone Gold's investor presentation, July 2011
Slide 1: Expanding the Largest Undeveloped Gold Deposit in Burkina Faso
Expanding the Largest Undeveloped Gold Deposit in Burkina Faso July, 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 (ORE T ) Essakane Same team 1 5 Æ 5.3 1.5 53M Moz + 3 gold projects Bomboré 0.9 Æ 3.5 Moz Æ ? Permits Financing Construction ( 1.6 M&I + 1.9 Inf ) Market Cap Buys Orezone (OZN.T) Jan 2009 : $ 20 M J $350 M July 2011 : $ 280 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 83.4 million Shares Fully Diluted 89.5 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, PhD P.Geo 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
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 Index” (Fraser Institute, 2010) 4th Largest African gold producer by 2012 Re-elected Cap
Slide 9: Geological Setting: Birimian Greenstone Belt
Geological Setting: Birimian Greenstone Belt Trans-crustal structure: Markoye-Tiébélé Fault Large deposit association 200 km Essakane 5.9 Moz IAMGOLD 1 1 Moz Taparko 1.1 High River Bombore 3.5 Moz Orezone Kiaka 4.3 Moz Volta Youga 0.8 Moz Endeavour 9
Slide 10: Bomboré Overview
Bomboré Overview Reservoir N 11 km Heap Leach Pad Waste W t Rock Pit 11 km 168 km² Shells 2010 Resource Update (NI 43-101) Meas. & Indicated 60.9 Mt 0.81 g/t 1.6 Moz I f Inferred d 60 6 Mt 60.6 0 96 g/t 0.96 /t 1 9 Moz 1.9 M 10
Slide 11: 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 11
Slide 12: New, Positive Results at Depth
New, Positive Results at Depth Gold mineralization continues at depth Maga Main Zone Au Grades >0.5 0.5 g/t >0.2 g/t 100 m 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 Mi Life Mine Lif
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 p + Lat Transition Total Sap p + Lat Transition Total R k 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 Tonne
Slide 17: Gold & Oil Price Sensitivity
Gold & Oil Price Sensitivity Base Current Gold ($1000 /oz pit shell) Case Price Scenario Æ 1 2 3 4 5 6 7 8 Gold Price ($/oz) $900 $1000 $1100 $1200 $1300 $1400 $1500 $1700 Oil Price ($/bbl) $60 $70 $80 $90 $100 $110 $120 $140 H Heap L Leach h (90% tto O Orezone)) NPV After tax (0%) ($M) -41.0 36.2 1
Slide 18: Estimated Annual Gold Production
Estimated Annual Gold Production ($1000 /oz pit shell) Year Æ 1 2 3 4 5 6 7 8 9 10 Total Heap Leach Gold Prod’n (koz) 148 129 117 124 110 117 133 66 944 Head Grade (g/t) 0.98 0.85 0.77 0.82 0.73 0.78 0.88 0.79 0.83 CIL Gold Prod’n (koz) 305 255 226 253 227 222 244 234 184 34 2,185 Head Grade (g/t) 1
Slide 19: Unit Processing Costs by Rock Type
Unit Processing Costs by Rock Type ($/tonne) Laterite / Transition Weighted Heap Leach Saprolite Average Energy $1.01 $1.11 $1.03 Labour $1.15 $1.15 $1.15 Materials ate a s & Reagents eage ts $4.62 $ 6 $3.76 $3 6 $4.39 $ 39 Total $6.78 $6.02 $6.57 Saprolite Transition Fresh Rock Weighted CIL Average
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 $50.7 $129 9 $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 $204
Slide 21: Operating Costs for Each Base Case Scenario
Operating Costs for Each Base Case Scenario Heap Leach CIL Total T t l Costs C t Avg. Cost A C t Avg. Cost A C t Total T t l Cost C t Avg. Cost A C t Avg. Cost A C t Category $M $/t milled $/oz $M $ /t milled $ /oz Mining $254.4 $5.79 $268 $633.7 $7.64 $290 P Processing i $286 5 $286.5 $6 52 $6.52 $
Slide 22: Key Factors to Improve Economics
Key Factors to Improve Economics • 170,000 m of Drilling Æ Resource Update N – 140% increase in total drilling – Improve I continuity ti it andd lower l strip t i ratio ti – Upgrade inferred to measured and indicated – Increase resources • Optimized pit shells with higher gold price 11km – Current P
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 p pitshell 11 km 2010 CIL p 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 g/t Tim
Slide 25: Sega Gold Project
Sega Gold Project Near-surface, heap leachable gold deposit adjacent to Kalsaka mine (Cluff Gold) • 313 km² project area • 455,000 455 000 oz Indicated • 147,000 oz Inferred • Grade 1.7 g/t • 7 pittable deposits • Heap leach potential • 10,000 m drilling – Q3 • Scoping study – ongoing 25
Slide 26: Bondi Gold Project
Bondi Gold Project Near-surface, heap leachable, with potential at depth • 4 km trend, open along strike • 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 80 8.0 16.0 16
Slide 27: Uranium - Niger
Uranium ‐ Niger New discovery adjacent to producing mines Niger: 3rd largest uranium producing region worldwide by 2014 • Brighton Energy Corp 67% owned by Orezone Gold • 5 permits Æ 4,000km² 4 000km² • Adjacent to operating mines (Areva) • Adjacent to GoviEx (Friedland) • Along main structures / Fa
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 9.0 Millions of Ounces of Gold $185 8.0 Enterprise Value $130 7.0 per Ounce 6.0 $50 $82 50 5.0 $55 Inferred 4.0 M&I 3.0 P&P $206 $289 2.0 1.0 0.0 Ampella Gryphon Orezone Keegan Volta Rainy River Perseus 2 .0 g g/t 2.1 1.0 1.1 1.0 1.0 1.1 Average g Grad
Slide 30: Growing Analyst Coverage
Growing Analyst Coverage Target Institution` Analyst Update (CDN) Cosmos Chiu Jun-2011 $7.50 Nicholas Campbell J n 2011 Jun-2011 $6 75 $6.75 Brad Humphrey Apr-2011 $6.10 Andrew Breichmanas Jun-2011 $5.50 Brian Christie Jun-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