Orezone Reports Continued Positive Results at Bomboré Gold Project

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Infill and expansion drilling program increased by 45,000 meters

January  10, 2012 ‑ Orezone Gold Corporation (ORE:TSX) is pleased to announce further positive oxide and sulphide 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 264 reverse circulation (RC) holes (16,508 m) and 105 diamond drill (DD) holes (14,423 m) from the southern and northern portions of the 11 km long Bomboré resource, with most of the results from the P11 and P8P9 areas.  The results from the near surface oxide zone, both within and outside the pit shells that constrain the 2010 resource, continue to be positive and indicate that a significant expansion and upgrade of the oxide resources should be expected.  As a result of new mineralization outside of the previous pit shells, the original 170,000 m drill program has been expanded to 215,000 m with the addition of 30,000 m of RC and 15,000 m of core drilling.  Drilling is expected to be completed this quarter with a full NI 43-101 compliant resource update scheduled for release at the end of the second quarter.  Further expansion drilling will continue through the balance of 2012.

Resource Definition Drilling

Orezone had completed by year end, in excess of 81,000 m of new RC drilling on Bomboré and had received the assay results for 76,885 m, including 100% of the results from the southern portion of the project for which resource modeling is in progress.  In addition, over 72,000 m of core drilling was completed with 56,288 m of assay results received, including 96% of the results from the southern portion of the project but where 17% of leach residue assays are still pending. The overall assay backlog is currently standing at 22,000 samples, or about one month.  Orezone has completed construction of an on-site sample prep-lab facility that should be fully commissioned during the first quarter and will facilitate a faster turn-around time for future assay results.   

Drilling has resumed after the Christmas break with five core rigs, a contract RC rig and Orezone’s own RC rig that was successfully commissioned in December. Orezone expects to complete an additional 25,000 m of core and 35,000 m of RC drilling during the first quarter that will be included in this year’s resource update and Definitive Feasibility Study.  New drill results will continue to be released regularly through the completion of the program.

Regional Exploration

Historical regional soil sampling indicates that there is potential for the Bomboré mineralization to extend southwest onto the new Toéyoko permit.  A 1,900 line-km high resolution airborne geophysical survey was completed in November over the Toéyoko permit. Orezone received the magnetometry and radiometric data at the end of December and is currently merging the Toéyoko and Bomboré geophysical datasets (both at 50 m line spacing) and high-resolution photo-satellite base maps. Reconnaissance mapping and prospecting is planned during the first quarter with auger drilling to follow in the second quarter.

Feasibility Study

Detailed metallurgical work continues on 76 representative Bomboré mineralized samples to confirm the potential of building a CIL operation in two phases.  Phase 1, an oxide plant, is envisioned to produce more than 150,000 oz/year with +90% recoveries, lower capital costs, lower mining and process costs and lower strip ratios than the CIL scenario outlined in the June 2011 Preliminary Economic Study. A Phase 2 plant expansion, funded from project cash flows, could increase production and mine life by processing the sulphide ores.  Preliminary metallurgical results for the oxide material are expected during the first quarter.  A Definitive Feasibility Study is expected by the end of the year.

Table 1. Cumulative Current Program Results Reported to Date

Note: SE is a new zone category that includes P16 and P17 which are no longer included in the South zone category
 

Table 2. Breakdown of Drilling Meterage for this Release

Table 3. Highlights of Diamond Drill Hole Results for this Release

(Includes holes previously reported for which the final total assay results are now available) 

Table 4. Highlights of Reverse Circulation Results for this Release

(Includes holes previously reported for which the final total assay results are now available) 

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, P17 and P8P9 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), BIGS Global Burkina s.a.r.l 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, SGS Burkina Faso s.a.r.l. and Abilab Burkina s.a.r.l. in Ouagadougou 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 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), BIGS Global Burkina s.a.r.l 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) or a 30 g aliquot at SGS Burkina Faso s.a.r.l.

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 can be found under the Reports section at the bottom of the Bomboré Project page; www.orezone.com/projects/bombore.

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 Moz indicated and 1.9 Moz inferred resources with an average drill depth of only 60 meters. The Company is currently completing a 215,000 m drill program to significantly expand resources and support the completion of feasibility studies in 2012. Orezone’s goal is to develop Bomboré into a world-class deposit by the end of 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 215,000 m drill program; capital and operating cost estimates; gold production for the project; completion of a definitive feasibility study in Q4 2012; completion of a resource update in Q2 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.