Download - Creating a New Exploration Growth Story
Creating a New Creating a New Exploration Growth Exploration Growth StoryStory
March 2009
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; targets, estimates and assumptions in respect of gold future gold production and prices; amount and type of future capital expenditures and capital resources; mineral reserves and mineral resources; anticipated grades; recovery rates; future financial or operating performance; costs and timing of the development of new deposits; costs, timing and location of future drilling; earning of future interests in various permits; production decisions; costs and timing of construction; operating expenditures; costs and timing and nature of future exploration; and environmental and reclamation expenses. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries and/or its affiliated companies to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include risks related to changes in, and volatility of, the price of gold; risks associated with operating in foreign jurisdictions; the speculative nature of gold exploration and development projects; permitting and title risks; risks relating to potential changes to governmental regulation; risks associated with the accuracy of mineral resource and reserve estimates; risks related to the fact that the Company has a history of losses and expects to incur losses for the foreseeable future; risks related to the reliance on the Company’s management team and outside contractors; risks related to drill shortages; risks associated with sample backlogs at assay laboratory facilities; risks related to the Company’s ability to finance the exploration and development of its mineral properties; risk relating to misrepresentations; uncertainties related to title to the Company’s mineral properties; risks relating to health concerns; environmental risks; operational risks and hazards inherent in the mining industry; risks associated with the potential inability to maintain available infrastructure; risks related to the potential unavailability of insurance to cover certain risks; risks related to increased competition in the mining industry; risks related to currency fluctuations; risks related to the fact the Company does not intend to pay dividends in the foreseeable future; risks that shareholders’ interest in the Company may be diluted in the future; factors that have historically made the Company’s share price volatile; risks for United States investors associated with possible PFIC status, as well as those risk factors identified in the Company’s publicly filed disclosure documents available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of the applicable public record document which the information is derived from and the Company has disclaimed any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.
Forward Looking Statements
The Orezone History The Orezone History 96 – 02 Built a Premier Project Portfolio at low gold 96 – 02 Built a Premier Project Portfolio at low gold
pricesprices
02 – 07 Grew Essakane Deposit from 1.5 Moz to +5.3 02 – 07 Grew Essakane Deposit from 1.5 Moz to +5.3
MozMoz
07 - 08 Brought Essakane to Construction07 - 08 Brought Essakane to Construction
Dec 08 Sold only Essakane to IAMGOLD for $350 MDec 08 Sold only Essakane to IAMGOLD for $350 M
Feb 09 Spin-Out Orezone Gold – ORG:TSXFeb 09 Spin-Out Orezone Gold – ORG:TSX
Orezone GoldOrezone Gold
100% interest in 3 Gold properties in Burkina Faso100% interest in 3 Gold properties in Burkina Faso
- Bomboré- Bomboré Scoping work / Expansion drillingScoping work / Expansion drilling
- Sega- Sega Scoping work, adjacent to Scoping work, adjacent to operating mineoperating mine
- Bondi- Bondi Advanced explorationAdvanced exploration
Gold Resources: 1.7 Moz Indicated and 2.0 Moz Gold Resources: 1.7 Moz Indicated and 2.0 Moz
InferredInferred
1000 km1000 km² of ² of Strategic Uranium permits in NigerStrategic Uranium permits in Niger Large Moly-Copper target discovered in NigerLarge Moly-Copper target discovered in Niger
C$10M in cash, no debtC$10M in cash, no debt
Experienced Management continues with Orezone Experienced Management continues with Orezone
GoldGold
Burkina Faso - Politically Stable Burkina Faso - Politically Stable DemocracyDemocracy
Under exploredUnder explored
Pro-mining Pro-mining
governmentgovernment
No ethnic or civil No ethnic or civil
unrestunrest
15M population15M population
4 mines in production4 mines in production
2 mines in 2 mines in
constructionconstruction
2011 42011 4thth largest largest
producerproducer
EssakaneEssakane 5 Moz5 Moz
TaparkTaparkoo 2 Moz2 Moz
YougaYouga1 Moz1 Moz
BomborBomboree 2.7 2.7 MozMoz
OuagadougouOuagadougou
BomborBomboré Project - Structureé Project - Structure
Markoye Fault Markoye Fault large deposit large deposit
associationassociation
Multi-million oz Multi-million oz potentialpotential
Deposit at surfaceDeposit at surface
EssakaneEssakane 5 Moz5 Moz
TaparkTaparkoo 2 Moz2 Moz
YougaYouga1 Moz1 Moz
BomborBomboréé 2.7 2.7 MozMoz
OuagadougouOuagadougou
KiakaKiaka2.6 Moz2.6 Moz
BomborBomboréé Project - Attributes Project - Attributes
0.93 Moz Indicated 0.93 Moz Indicated
resourceresource
1.78 Moz Inferred 1.78 Moz Inferred
resourceresource
Average grade <1g/tAverage grade <1g/t
Large open pit potentialLarge open pit potential
Low strip ratioLow strip ratio
Heap leach/CIL Heap leach/CIL
processingprocessing
Good infrastructureGood infrastructure
BomborBomboréé Project- Good Project- Good LogisticsLogistics
Flat terrain Low population density Large oxide resource
Bombore Growth PotentialBombore Growth Potential
14km strike length14km strike length
Oxides to depth of 40mOxides to depth of 40m
Continuity into fresh rockContinuity into fresh rock
Drilled only to 55m depth Drilled only to 55m depth
Open on strike/at depthOpen on strike/at depth
Expansion Drilling Q2 to Expansion Drilling Q2 to
Q4Q4
ProgramProgram Q1Q1 Q2Q2 Q3Q3 Q4Q4
MetallurgyMetallurgy
RC Drilling - Oxide Inferred In-RC Drilling - Oxide Inferred In-fillfill
RC Drilling - Oxide ExtensionsRC Drilling - Oxide Extensions
D Drilling - Panel to 175 m D Drilling - Panel to 175 m DepthDepth
Baseline StudyBaseline Study
Resource Update – In HouseResource Update – In House
Bomboré Project Timeline - 2009Bomboré Project Timeline - 2009
Million
s o
f O
un
ces
Comparable Grade Comparable Grade DepositsDeposits
1.05
Grade (g/t)
Sega ProjectSega Project
446,000 oz Indicated446,000 oz Indicated
64,000 oz Inferred 64,000 oz Inferred
Grade 1.8 g/tGrade 1.8 g/t
7 pittable targets7 pittable targets
heap leach potential heap leach potential
313 km² project area313 km² project area
Bondi ProjectBondi Project
282,000 oz Indicated282,000 oz Indicated
149,700 oz Inferred149,700 oz Inferred
Grade 2.0 g/tGrade 2.0 g/t
4 open pittable zones4 open pittable zones
Heap leach potentialHeap leach potential
224 km² permit 224 km² permit
Good infrastructureGood infrastructure
Niger Uranium PermitsNiger Uranium Permits
2 permits , Zeline 1 & 4 2 permits , Zeline 1 & 4
Total 980 kmTotal 980 km²²
40 km from AREVA 40 km from AREVA
minesmines
Main structural breakMain structural break
Favorable geologyFavorable geology
Shared infrastructureShared infrastructure
ozn
ozn
10 km
Orezone GoldOrezone Gold
100% interest in 3 Gold properties in Burkina Faso100% interest in 3 Gold properties in Burkina Faso
Bomboré Project Expansion to PrefeasibilityBomboré Project Expansion to Prefeasibility
Gold Resources: 1.7 Moz Indicated and 2 Moz Gold Resources: 1.7 Moz Indicated and 2 Moz
InferredInferred
C$10 M in cash, no debtC$10 M in cash, no debt
Growth through exploration, expansion, Growth through exploration, expansion,
acquisitionacquisition
Experienced Management and DirectorsExperienced Management and Directors
Focused on returns for ShareholdersFocused on returns for Shareholders
Research CoverageResearch Coverage
BMO Capital Markets:BMO Capital Markets: David HaughtonDavid Haughton
Andrew BreichmanasAndrew Breichmanas
CIBC WoCIBC World Marketsrld Markets:: Barry Cooper, Cosmos ChiuBarry Cooper, Cosmos Chiu
Raymond James:Raymond James: Brad HumphreyBrad Humphrey
Canaccord Adams:Canaccord Adams: Nicholas CampbellNicholas Campbell
Scotia Capital:Scotia Capital: Trevor TurnbullTrevor Turnbull
Creating a New Creating a New Exploration Growth StoryExploration Growth Story