Orezone Gold Corporation · TSX:ORE
Orezone Gold — Investor Presentation (February 2020)
39 slides from Orezone Gold's investor presentation, February 2020
Slide 1: Developing the Low Cost, High Margin Bomboré Gold Project
Developing the Low Cost, High Margin Bomboré Gold Project Corporate Presentation February 2020 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 (tog
Slide 3: Investment Highlights
Investment Highlights Located in a leading gold development country with 13 producing gold mines Permitted, advanced development project with robust economics at USD $1,300/oz Au Staged development – focused on a project scale that Orezone can finance and build Strong management team and board with
Slide 4: Burkina Faso: An Established Gold District
Burkina Faso: An Established Gold District Supportive mining jurisdiction • 13 gold mines in production • 1 gold mine in construction ~10Moz gold within 15km of Bomboré* • West African Resources: Sanbrado • B2 Gold: Toega • New high-grade gold discoveries in this emerging district Bomboré is ideally
Slide 5: Bomboré Location & Local Infrastructure
Bomboré Location & Local Infrastructure Located 85 km (90 min) from the capital city along a major paved highway Secure location within proximity to main local and international military training facility 5 km from town of Mogtédo with a population of 15,000; easy access to skilled local workforce
Slide 6: West Africa Gold Production 2010 vs 2019
West Africa Gold Production 2010 vs 2019 Production Growth from 2010 to 2018 By Region 2010 and 2018 Ounces by Region 80% 69% 66% Asia 60% 54% Central & South America 50% North America 40% 28% Independent States 20% 11% 11% Oceania 0% West Africa South Africa -20% Europe -40% -38% 0 5 10 15 20 25 -6
Slide 7: Capital Intensity & AISC vs Peers
Capital Intensity & AISC vs Peers Capital Intensity USD$/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 8: Sulphide Expansion: 2019 Feasibility Study Focus
Sulphide Expansion: 2019 Feasibility Study Focus Identified P17S high-grade sulphide zone Several additional high-grade sulphide zones contained within main ore body Staged sulphide expansion with production commencing in Year 3 of oxide operations Sulphide expansion funded from oxide cashflows Sign
Slide 9: 2019 Feasibility Study Highlights
2019 Feasibility Study Highlights After-tax NPV5% of $361.0M(1), IRR of 43.8% Description 2019 FS Base Case Gold Price (US$/oz) 1,300 • 2.5-year payback Mine Life (years) 13.3 Mine life of 13+ years with: Total Waste Tonnes Mined (Mt) 164.4 Total Ore Tonnes Mined (Mt) 70.1 • LOM gold production of 1
Slide 10: Combined Processing Plant
Combined Processing Plant Oxide plant capacity of 5.2Mtpa • Oxide feed reduced to 3Mtpa upon commissioning of the sulphide circuit Sulphide circuit capacity of 2.2Mtpa Both the oxide and sulphide circuits are completely independent Leach circuit design allows for additional tanks ADR plant has exces
Slide 11: After-Tax Cumulative Cash Flow
2019 FS - After-Tax Free Cash Flow 200 After-Tax Free Cash Flow 600 Millions (at USD $1,300/oz Au) After-Tax Cumulative Cash Flow (Millions) 150 (based on 2019 FS) 400 After-Tax Free Cash Flow (Millions) 100 200 50 0 0 Pre-Prod. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Slide 12: Evolving Geological Interpretation
Evolving Geological Interpretation 12
Slide 13: 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 14: Evolving Geological Interpretation – Hanging wall
Evolving Geological Interpretation – Hanging wall Siga South Deposit – Section 10600N New geological interpretation of the hanging wall folded zones is expected to improve their continuity and the metal inventory The footwall zone is well-defined and understood • Along the western side of a +13 km s
Slide 15: Evolving Geological Interpretation, High-Grade Plunging W
Evolving Geological Interpretation, High-Grade Plunging W A high-grade plunging W shaped fold was first identified at P17S in 2017 Artisanal miners were extracting high-grade at Maga, CFU, P8/P9 and Siga East P17S 1 1 2 Maga 2 CFU 3 P8/P9 4 3 4 Siga E 15 15
Slide 16: 2018 Drill Results - CFU and P11
2018 Drill Results - CFU and P11 Hole From To Length Grade CFU high-grade follow-up (m) (m) (m) (g/t Au) oxide drilling targets BBC4580 30 35 5 3.2 Incl. 1 10.7 Maga BBC4615 20 22 2 6.4 Incl. 1 10.4 BBC4620 30 33 3 4.19 CFU Incl. 1 11.9 P8P9 BBC4647 3 6 3 5.4 Incl. 1 12.7 P11 BBC4678 48 56 8 2.2 Inc
Slide 17: P16 Down-Plunge Potential
P16 Down-Plunge Potential P16 mineralized zone plunging North, open at depth, potential HG ore shoots 6m @ 5.0 gpt 12m @ 2.5 gpt 9m @7.6 gpt 13.5m @ 2.9 gpt 6m @ 7.6 gpt 12m @ 15.3 gpt Multigram and 6m @ 4.7 gpt 5m @ 5 gpt multimeter drill intercepts 15m @ 5.9 gpt 9m @ 2.7 gpt following a fold nose
Slide 18: 2019 Maga Drilling
2019 Maga Drilling The 2019 RC and diamond drilling programme was designed to test and validate the refined geological interpretation All holes in the ~2,000 m programme intersected the high-grade plunging gold mineralization 2019 Highlight Drill Results From To Length Grade Hole # (m) (m) (m) (g/t)
Slide 19: Enhancement Opportunities
Enhancement Opportunities New drilling and resource modeling is expected to: 1. Extend mine life 2. Add higher grade ounces within existing pits 3. Increase M&I resource in near-surface oxides 4. Improve existing production profile – more reserve ounces in same annual range Resource Modeling of High
Slide 20: Security
Security 20 20
Slide 21: International views of Burkina Faso
International views of Burkina Faso French USA, Canada and Australia The areas of higher risk remain in the border regions where smuggling is prominent and government presence is sparse Countries further from Burkina with less presence in country have a more conservative travel advisory The Bomboré
Slide 22: Regions of Terrorism Activity
Regions of Terrorism Activity France, Burkina Faso, Mali, Niger, Chad and Mauritania agree to a joint command structure to tackle insurgency France commits an additional 220 troops in addition to the 4,500 troops already in the Sahel Bomboré Bomboré Bomboré April 2019 December 2019 No evidence of te
Slide 23: Security Advantages of Bomboré
Security Advantages of Bomboré 85 km from the capital of Ouagadougou 2 paved road options - both main service roads Asphalt on both routes in good condition - very low likelihood of IED Active military presence on both routes Few critical infrastructures Active occupied military shooting range - use
Slide 24: RAP Resettlement Action Plan
“RAP” Resettlement Action Plan 24
Slide 25: RAP – Construction Overview & Update
RAP – Construction Overview & Update RAP Phase 1 is progressing well with construction to be completed in Q1-2020 and final relocation in Q2-2020 • ~1,100 houses in construction RAP Opening Ceremony, May 2019 Attended by Burkina Faso’s Prime Minister and • Community infrastructure including over 3,0
Slide 26: Phase 1 - RAP
Phase 1 - RAP Natinga Construction Koksin Completed Dwellings Koksin Completed Dwellings Current Houses RAP Sample Houses 26 26
Slide 27: Phase 1 - RAP
Phase 1 - RAP RAP Construction Latrines School RAP Construction Clinic Mosque 27 27
Slide 28: CSR
CSR 28 28
Slide 29: Livelihood Restoration Programs
Livelihood Restoration Programs Programs • Market gardens developed - agro-economist 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
Slide 30: Orezone Community Initiatives
Orezone Community Initiatives Provision of seeds for crops Maternity ambulances Ambulance Spice growing Agricultural reservoir Land reclamation 30 30
Slide 31: Orezone Community Initiatives
Orezone Community Initiatives Harvesting Sesame Harvesting Fodder Soap Manufacturing Producing Spices Market Garden Planting Trees 31 31
Slide 32: Summary
Summary 32
Slide 33: Orezone: A Refocused Story
Orezone: A Refocused Story Since 2017, Orezone’s new management has delivered on all 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 Deli
Slide 34: Capital Structure & Research Coverage
Capital Structure & Research Coverage 12-Month Share Price & Volume Capital Structure (as at Jan. 30, 2020) 1400000 $1.00 1200000 $0.80 Shares Issued 250,972,806 1000000 800000 $0.60 Warrants 18,797,950 600000 $0.40 400000 $0.20 Options 16,376,838 200000 0 $0.00 Shares Fully Diluted 286,147,594 Cash
Slide 35: Summary
Summary Project financing discussions well-advanced • Debt advisors are Cutfield Freeman • Completed CAD$20.3M equity bought-deal in Jan. 2020 • RCF exercised its full pro rata right and owns 19.99% of ORE Development schedule progressing well • FEED completed • RAP Phase 1 construction ongoing and
Slide 36: Appendix
Appendix 36
Slide 37: Management
Management Patrick Downey – President, CEO & Director Nick Parisot – Security Manager • Engineer with +30 years resource industry experience • Over 10 years experience providing security in Africa and high risk locations • Previously President, CEO & Director of Elgin Mining, Aura Minerals and Vicer
Slide 38: 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 39: For more information, please contact Investor Relations
For more information, please contact Vanessa Pickering, Manager, Investor Relations: info@orezone.com Tel: 778-945-3974 39