Orezone Provides Positive Update on its Bomboré Gold Project

Northern area P8P9 core hole yields 25m at 1.6 g/t at a depth of 170m

Download PDF

February  22, 2012 ‑ Orezone Gold Corporation (ORE:TSX) is pleased to announce further positive oxide and sulphide drill results from an ongoing 215,000 m infill and expansion drill program at its 100% owned Bomboré Gold Project in Burkina Faso, West Africa. Results include 91 reverse circulation (RC) holes (6,573 m) and 80 diamond drill (DD) core holes (13,019 m) from the northern and southernportions of the 11 km long Bomboré resource.  The majority of the core results are from the northern P8P9 area where hole BBD0522 intersected 45m of sulphide mineralization with a cut grade of 1.58 g/t centered at a depth of 170 m below surface.  Positive results also continued at the southern limit of the deposit at P16, where core hole BBD0448 returned 16.5m at 9.26 g/t (uncut) near surface and 10 additional core holes (1,700 m) have been added to the program to continue the definition on this deposit.  With six drill rigs in operation, the resource definition drilling is expected to be completed this quarter and a full NI 43-101 compliant resource update to be released at the end of the second quarter.  Further expansion and exploration drilling will continue through the balance of 2012.

“These drill results continue to confirm the potential for higher grades and extension of the mineralization at depth within the extensive +11km length of the deposit” said Ron Little, CEO for Orezone.  “The results underscore the potential to significantly expand and upgrade the resource and improve the preliminary economics of the project announced in June 2011.”

Resource Definition Drilling

Orezone has completed in excess of 107,000 m of new RC drilling on Bomboré and has received the assay results for over 83,000 m, including 100% of the results from the southern portion of the project for which resource modeling is in progress.  In addition, over 89,000 m of core drilling was completed with over 69,000 m of assay results received, including 100% of the results from the southern portion of the project. The overall assay backlog is currently standing at 37,000 samples, or about two months.  Orezone has drilled more than 42,000 m since the drilling resumed on January 9, including more than 16,000 m with its own RC drill rig.

Bomboré Feasibility Study

Detailed metallurgical work continues on 76 representative samples where preliminary results indicate the potential of building a simple CIP or CIL circuit 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.  Further metallurgical results are expected during the first quarter.  A Bankable Feasibility Study is expected by the end of the year.

Regional Exploration

Reconnaissance mapping and prospecting is ongoing with auger drilling to follow in the second quarter on the new Toéyoko permit.

Financials

Orezone is well financed to complete its planned exploration and development work in 2012 including the resource update and bankable feasibility study for Bomboré.  The sale of the Sega project to Cluff Gold, once closed, will add approximately another US$30 million and further strengthen the Company’s ability to develop Bomboré.  At December 31, 2011, Orezone had approximately US$28.7 million in its treasury with 83,724,531 issued and outstanding common shares (90,139,031 fully diluted).

Table 1. Cumulative Current Program Results Reported to Date

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 approximately 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 and the NI 43-101 Bomboré Resource Report that describes the Bomboré resource model can be found at www.orezone.com.

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 Bomboréinto 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; completion of metallurgical testing and social impact studies; and closing of the Sega sale transaction.

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.