Orezone Gold Corporation
Primary ticker: TSX:ORE, OTCQX:ORZCF
Stage of development: Development, Production
Primary minerals: Gold
Project to promote: Bomboré Gold Mine
Project location: Burkina Faso
Website: www.orezone.com
Orezone Gold Corporation (TSX: ORE OTCQX: ORZCF) is a growth focused gold producer that is backed by a seasoned team of industry professionals. In late 2022, the Company achieved commercial production on its oxide operations at its flagship Bomboré Gold Mine. This stage of the project’s development was achieved on time and under budget, with the first full year of production in 2023 meeting guidance with 141,425oz produced at an AISC of $1,127/oz.
The company is currently advancing the Stage I hard rock expansion at Bomboré, which will see production increase 50% from current levels. This stage of growth is fully financed and well underway, with first gold from the hard rock plant expected in late Q4-2025. Thereafter, the company will look to advance, from cash flow, the Bomboré Stage 2 hard rock expansion, which will see total annual production increased to 225,000-250,000oz.
In addition to a focus on production growth, the Company has recently initiated a multi-year exploration campaign at Bomboré. The Bomboré project hosts a 2.4Moz reserve base, over a 14km strike length and down to an average depth of <40m. Ongoing drilling continues to focus on delineating mineralization at depth, with recent drilling intersecting broad widths of high-grade mineralization down to a depth of 340m. With the success of ongoing drilling, the Company aims to increase the project’s current global resource base from 5.13Moz to a targeted 7-10Moz.
Cash: USD67M
Debt: USD68M
Major shareholders:
Nioko – 19.99%
RCF – 15%
Equinox (Mason Hill) – 9%
Aegis – 3%
Earth – 2%
Management ownership – 3%
Financials
Management Profile
Patrick (Paddy) Downey, President & CEO
Mr. Downey has over 40 years of international experience in the resource industry. Mr. Downey held the position of President, Chief Executive Officer and Director of Elgin Mining Inc., Aura Minerals Inc. and previously Viceroy Exploration Ltd. before its acquisition by Yamana Gold Inc. in 2006. He has held numerous senior engineering positions at several large-scale global gold mining operations and has also held operating positions at several mining projects for Anglo American Corporation in South Africa. Mr. Downey was a member of the boards of Claude Resources and Dalradian Resources before their recent successful acquisitions and he is a member of the board of a number of active resource companies. He holds a Bachelor of Science (Hon.) degree in Engineering from Queen’s University.
Kevin MacKenzie, VP, Corporate Development & IR
Mr. MacKenzie has over 15 years of capital markets and industry experience. Prior to joining Orezone, Mr. MacKenzie held the position of Managing Director, Metals & Mining Equity Analyst at Canaccord Genuity. His industry experience spans all project levels, from early-stage exploration through to operations. This included positions as Project Geologist, Development Mine Manager, and Construction Technical Advisor with Imperial Metals at the Red Chris mine.
Mr. MacKenzie holds a degree in Earth and Environmental Sciences (Hon.) from the University of British Columbia, and an MBA, with a Finance specialization, from Queen’s University. He is a registered P.Geo. with the province of British Columbia.
What is your rationale for taking part in 121 Mining Investment?
To update existing shareholders and to gain exposure to new funds, family offices and private investors.
What recent news would you like to highlight to investors attending?
Oct. 10, 2024: Orezone Intersects 1.64 g/t Gold over 46.00m Significantly Extending Mineralization 240m below Life of Mine Reserve Pit
July 25, 2024: Orezone to Commence a 30,000 Metre Discovery Focused Drill Program at Its Flagship Bomboré Gold Mine
July 10, 2024: Orezone Announces US$105 Million Financing to Fully Fund the Bomboré Phase II Hard Rock Expansion
June 12, 2024: Orezone Intersects 113.74 g/t Gold Over 8.00m in Ongoing Exploration and Provides Project Update
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Achieve 2024 Guidance
6 Months:
Ongoing exploration program drill results
12 Months:
Commissioning of the hard rock plant and first gold pour in Q4-2024
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Gold market sentiment and access to new investors and capital.
What do you think makes your company such a compelling investment?
Undervalued relative to peers in similar positions.
What are the top 3 key investor takeaways?
1. The Bomboré Gold Mine achieved commercial production of its oxide operations in late 2022, and met its first full year production guidance in 2023 with 141,425oz produced at an AISC of $1,127/oz.
2. Orezone is now undertaking a staged hard rock expansion at Bomboré, which will see total annual production increased to 225,000-250,000/oz
3. The current 2.4Moz reserve base at Bombore is shallow in nature, with an average life-of-mine reserve pit depth of <40m. Ongoing drilling continues to focus on delineating mineralization at depth, with recent drilling intersecting broad widths of high-grade mineralization down to a depth of 340m.