Media and Events> Press
Releases> January 23 2006:
Orezone
Expands Holdings in Niger to 4,200 km2
Drilling Commences on Kossa Permit
Orezone
Resources Inc. (OZN:TSX, AMEX)
is
pleased to announce that
drilling has started on its 100 per cent owned Kossa permit
in Niger, West Africa. The 2,000 km square permit
is located immediately adjacent to the Orezone/Gold Fields
Essakane Project with the two properties being separated by
the border between Burkina Faso and Niger. Kossa has the
same geology as Essakane, extensive artisanal workings exist
throughout the area, and large gold in soil anomalies on the
eastern limit of the Essakane project extend across the
border onto Kossa. Work done to date has confirmed the
presence of large mineralized structures which are 8 to 10km
in length and have many similarities with Essakane. One
particular target, which parallels the eastern edge of the
basin, has a length in excess of 15km. A 10,000m drill
program is already underway as part of a US$900,000
exploration program at Kossa and initial results are
expected in February.
Orezone has also optioned two gold properties
in western Niger from Greencastle Resources (VGN:TSX-V).
The 1,148 km square
Namaga property is located in the Tera
greenstone belt and completely surrounds the Koma Bangou
gold deposit, an area of extensive artisanal workings.
During 1997-98, initial trenching was carried out by Ashanti
Gold.
The 1,045 km square
Koyria property is located in the Serba
greenstone belt which hosts the producing Samira Hill Gold
Mine.
The concession contains a number of significant gold
prospects and extensive gold in soil anomalies. In 1996
Imperial Metals/Sumitomo drilled 24 holes on the M’Banga
prospect at Koyria.
Ron Little, President of Orezone stated,
“Optioning these properties will enable us to move our
equipment and crews between the projects and keep them fully
occupied while we are waiting for results. In addition,
they give us control over approximately 30 per cent of the
favourable ground that has been staked in western Niger.”
He added that “These are prospective areas that have not
received a lot of exploration attention and can rapidly be
advanced to the drill ready stage using the same techniques
that have proven effective for us in Burkina Faso.”
Under the terms of the agreements, Orezone
can earn a 50 per cent interest by spending $1 million on
each property over three years and can increase its interest
in either one to 75 per cent by completing a Bankable
Feasibility Study. If Greencastle elects not to participate
should a production decision be made, Orezone will be
required to buy the remaining 25 per cent interest for $2.0
million. Orezone has also agreed to buy one million units
in a Greencastle private placement for $0.30 per unit. Each
unit consists of one common share and one half of one common
share purchase warrant. A full warrant entitles the holder
to buy one common share at a price of $0.45 per share for a
period of 18 months.
Orezone
is an emerging gold producer
that has an exploration permit for Essakane, the largest
gold deposit in Burkina Faso, West Africa where its partner
Gold Fields Limited is earning up to a 60 per cent
interest. Orezone also has a pipeline of promising
projects, all located in politically stable areas of West
Africa which is one of the world’s fastest growing gold
producing regions. Orezone’s mission is to create wealth by
discovering and developing the earth’s resources in an
efficient and responsible manner.For
further information please contact:
Phone
(613) 241-3699
Toll Free (888) 673-0663
FORWARD-LOOKING STATEMENTS:
This news release contains certain "forward-looking
statements" within the meaning of Section 21E of the
United States Securities Exchange Act of 1934, as amended.
Except for statements of historical fact relating to the
company, certain information contained herein constitutes
forward-looking statements. Forward-looking statements 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 are based
on 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, 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.
