Positive Results Continue at Bomboré with Seven Drills Operating

Download PDF

Higher grades and continuity add further confidence to resource growth

Orezone Gold Corporation (ORE:TSX) is pleased to announce additional positive drill results from an ongoing 170,000 m infill and expansion drill program at its 100% owned Bomboré Gold Project in Burkina Faso, West Africa. Results include 234 reverse circulation (RC) holes (11,942 m) and 43 core holes (6,979 m) from the northern and southern portions of the 11 km long Bomboré resource.  The objectives of the program are to expand and upgrade sulphide resources with core drilling at depth, as well as to upgrade and expand near-surface oxide resources with reverse circulation drilling (RC).  With 60% of the drilling completed to date and 37% of the assays reported, the results indicate success in achieving both objectives with a significant increase in resources and improved project economics expected.

This is the fifth substantial drill results release from the ongoing program at Bomboré where cumulative, results indicate higher grades (+37% in the oxide, +35% in the sulphide) and narrower widths (94% in the oxide, 71% in the sulphide) compared to the October 2010 NI 43-101 compliant resource model (“the 2010 model”) (see Table 1). The average cut grade of the entire database to date, using a lower cutoff of 0.5 g/t and a topcut of 5g/t is 1.19 g/t. The average cut grade of the current drill program is 1.04 g/t, which although is 36% higher than expected, is lower than the overall average due to a large backlog of leach residue assay results that have not yet been reported from the better grade zones (P8P9). The extensions of the mineralization discovered below the Maga and Siga South pit shells will result in a significant increase in sulphide resources in these areas. Drilling also demonstrates increased continuity between the pit shells that will result in lower open pit mining strip ratios for the oxide zone.  

“These drill results continue to increase our confidence in achieving our current resource growth targets, and demonstrate that the mineralization in the Siga South area is robust down to 200 m and remains open below,” said Ron Little, CEO for Orezone.  “We are especially pleased given that the results to date have come from areas of the deposit with the least amount of historical drilling (see maps-Siga South and Siga West & East).  In contrast, the remaining 70,000 m of drilling from this campaign will occur in the heart of the 2010 model where confidence, grades and continuity have always been highest.”

The drill results and conclusions are preliminary and may be further improved as a significant number of fire assay results for the leach sample residues are still pending.  The residue fire assays typically increase the total cut grade by 10%. Table 1 summarizes the above commentary and provides a comparison of the results to date with the 2010 model.

Table 1: Comparison of Current Program with 2010 Resource Model

Table 2: Breakdown of Drilling Meterage for this Release

“At Siga South, gold mineralization now displays vertical continuity up to 200 m in the down-dip direction, and remains open at depth on most sections, with a possible shallow northerly plunge,”added Pascal Marquis, SVP Exploration for Orezone. “Based on the positive results to date, a minimum of an additional 50,000 m of definition drilling is warranted for next year to further expand upon the 2011 resource targets.”

Highlights of the core drilling include 1.36 g/t gold over a 31.5 m length, at a vertical depth of 155 meters (hole BBD0183), and 0.92 g/t gold over a 13.5 m length, at a vertical depth of 195 meters (hole BBD0189). The dip of the mineralized zones is approximately 55 degrees, nearly orthogonal to the core drilling, which means that the true width of the mineralized intervals is > 90% of the core length.

Table 3: Highlights of Core Hole Results for this Release

RC drilling on the Siga E - P11 zones indicates good continuity within the Siga E 2010 Whittle pit shells, and better than expected continuity in the northern part of the P11 zone and southern part of the P8P9 zone.

The RC drill holes confirm the continuity of the mineralized zones in the surface oxide material. These results complement RC results reported in May for Siga West and Siga South that indicated the cut grades (top cut of 5 g/t) are higher than expected, with widths better than those expected in the model in the Siga South zone and narrower than expected in the Siga West zone.

Highlights from the latest RC drilling include 25.0 m @ 1.69 g/t gold (hole BBC2045), and 23.0 m @ 1.19 g/t gold (hole BBC1862).

Table 4: Highlights of RC Results for this Release

The mineralized intervals are based on a lower cut-off grade of 0.5 g/t, a minimal width of 3 m and up to a maximum of two consecutive meters of dilution being included. The true width of the mineralization is equal to about 85% of the drill length intervals in Maga, P16 and P17 areas, and to 95% of the drill length intervals in the Siga area. The half-core samples were collected by Orezone employees using a diamond saw. The core samples from the weathered (oxide) zone were prepared by Abilab Burkina s.a.r.l. (a subsidiary of ALS-Chemex) and SGS Burkina Faso s.a.r.l., and then split by Orezone to 1 kg using Rotary Sample Dividers (RSDs). A 1 kg aliquot was analyzed for leachable gold at BIGS Global Burkina s.a.r.l in Ouagadougou, by bottle-roll cyanidation using a LeachWell^TM catalyst. The samples from the fresh or sulphide zone were prepared by BIGS Global Burkina s.a.r.l and SGS Burkina Faso s.a.r.l. in Ouagadougou and then split by Orezone to 50 g using Rotary Sample Dividers (RSDs). A 50 g aliquot was analyzed by fire assay at Abilab Burkina s.a.r.l. (a subsidiary of ALS-Chemex).

The RC drilling samples were divided by Orezone employees using Rotary Sample Dividers (RSDs). A 2 kg split was prepared by Abilab Burkina s.a.r.l. (a subsidiary of ALS-Chemex) and SGS Burkina Faso s.a.r.l., and then split by Orezone to 1 kg using RSDs. A 1 kg aliquot was analyzed for leachable gold at BIGS Global Burkina s.a.r.l in Ouagadougou, by bottle-roll cyanidation using a LeachWell^TM catalyst. The leach residues from all samples with a leach grade in excess of 0.2 g/t were prepared by BIGS Global Burkina s.a.r.l. and then split by Orezone to 50 g using Rotary Sample Dividers (RSDs). A 50 g aliquot was analyzed by fire assay at Abilab Burkina s.a.r.l. (a subsidiary of ALS-Chemex).

Orezone employs a rigorous Quality Control Program (QCP) including a minimum of 10% standards, blanks and duplicates. This program was executed under the supervision of Pascal Marquis, SVP Exploration for Orezone, who is a Qualified Person under National Instrument 43-101 and approved the technical information in this release. A complete table of results and the NI 43-101 Bomboré Resource Report that describes the Bomboré resource model can be found at www.orezone.com.

Orezone has now completed 101,842 meters (60%) of the 170,000 m drill program and reported 37% of the results received to date.  Upon completion of the program and all results received by Q1 2012, a total resource update will be announced in Q2 2012. Drilling has continued through the rainy season with up to seven rigs (five core, two RC) operating. The immediate priorities are to complete the first pass of core drilling for the entire Siga and P11 area, while the RC program continues at P8/P9. The drilling of newly discovered mineralization that remains open-ended, including both shallow oxide targets and deeper sulphide extensions, is beyond the scope of the 2011 program, and will be a priority for more drilling in 2012.  Aside from the drilling, the environmental impact study is well underway along with continued metallurgical and optimization studies.  The new camp has been commissioned, and the new access roads are nearly complete and are already being utilized. 

About Orezone Gold Corporation

Orezone is a Canadian company with a gold discovery track record of +10 M oz and recent mine development experience in Burkina Faso, West Africa. Bomboré, the Company’s 100% owned flagship project, is one of the largest gold deposits in the country and is situated 85 km east of the capital city, adjacent to an international highway. Resources are constrained within optimized open pit shells that span 11 km, and include 1.6 M oz indicated and 1.9 M oz inferred resources with an average drill depth of only 60 meters. The Company is currently completing a $24 M, 170,000 meter drill program to significantly expand resources and support the completion of feasibility studies in 2012. Orezone’s goal is to develop Bomboréinto a world-class deposit by 2012 and become a mid-tier producer by 2015.

For further information please contact Orezone at (613) 241‑3699 or Toll Free: (888) 673‑0663

Ron Little, CEO, rlittle@orezone.com               Pascal Marquis, SVP Exploration, pmarquis@orezone.com

FORWARD-LOOKING STATEMENTS AND FORWARD-LOOKING INFORMATION: This news release contains certain “forward-looking statements” within the meaning of applicable Canadian securities laws. Forward-looking statements and forward-looking information are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements in this release include statements regarding, among others, the completion of a 170,000m drill program; capital and operating cost estimates; gold production for the project; completion of a feasibility study in 2012; completion of a resource update in early 2012; commencement of production at the Bomboré Project; and completion of metallurgical testing and social impact studies.

FORWARD-LOOKING STATEMENTS are based on certain assumptions, the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, the ability of contracted parties (including laboratories and drill companies to provide services as contracted); uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements. Comparisons between any resource model or estimates with the subsequent drill results are preliminary in nature and should not be relied upon as potential qualified changes to any future resource updates or estimates.

Readers are advised that National Instrument 43‑101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Readers should refer to the annual information form of Orezone for the year ended December 31, 2010 and other continuous disclosure documents filed by Orezone since January 1, 2011 available at www.sedar.com, for this detailed information, which is subject to the qualifications and notes set forth therein.