Slide 1: Bomboré Gold Project has Positive Preliminary Economic Assessment
“Bomboré Gold Project has Positive Preliminary Economic Assessment” June 20, 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: Notes
Notes Cautionary Statement: This Study constitutes a Preliminary Economic Assessment for NI 43-101 purposes that is considered preliminary in nature and uses inferred resources which are considered too speculative geologically to apply economic considerations that would enable them to be categorized
Slide 4: 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 4
Slide 5: 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 5
Slide 6: Press Release Summary
Press Release 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 (1.6 Moz M&I + 1.9 M
Slide 7: Summary of Base Case Highlights
Summary of 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
Slide 8: Key Highlights (continued)
Key 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 9: Mineral Resources Used In Mine Plan
Mineral Resources Used In 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) 10,39
Slide 10: 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 11: Estimated Annual Gold Production
Estimated Annual Gold Production ($1000 /oz pit shell) Year 1 2 3 4 5 6 7 8 9 10 Total Heap Leach Gold Prod’n (koz) 148 129 117 124 110 117 133 66 944 Head Grade (g/t) 0.98 0.85 0.77 0.82 0.73 0.78 0.88 0.79 0.83 CIL Gold Prod’n (koz) 305 255 226 253 227 222 244 234 184 34 2,185 Head Grade (g/t) 1
Slide 12: Unit Processing Costs by Rock Type
Unit Processing Costs by Rock Type ($/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 13: 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 14: 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 15: 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 16: 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 16
Slide 17: Questions & Answers
Questions & Answers OREZONE