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Orezone Reports Strong Fourth Quarter 2022 Gold Production at its Bomboré Gold Mine

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Orezone Reports Strong Fourth Quarter 2022 Gold Production at its Bomboré Gold Mine

 

 

 

 

 

Orezone Gold Corporation (TSX: ORE) (OTCQX: ORZCF) is pleased to provide 2022 fourth quarter and annual production results from its Bomboré Gold Mine in Burkina Faso.

 

Q4-2022 Highlights

  • Gold production of 22,258 oz in Q4-2022 with 12,975 oz in December.
  • Mill throughput of 806,875 tonnes in Q4-2022 with 458,954 tonnes in December.
  • Commercial production achieved on December 1, 2022 following the restart of mill operations at the end of October and progression in daily throughput in November.
  • Rapid ramp-up of plant production with December throughput at 4% above nameplate capacity of 14,250 tpd.
  • Record throughput of 17,120 tpd, 20% above nameplate, achieved on December 25, 2022.
  • Plant recoveries are exceeding design at an average of 92%.
  • Gold sales of 24,676 oz at an average realized price of US$1,760 per oz resulting in sales proceeds of US$43.4 million.
  • Cash position of US$9.1 million at December 31, 2022, an increase of US$1.7 million during the fourth quarter.

 

Patrick Downey, President & CEO stated, “The Bomboré operations delivered a solid quarter of gold production highlighted by an outstanding December. The process plant has operated steadily upon attaining reliable power in November and continues to trend upwards in terms of daily throughput which has continued into January 2023. The strong Q4 operating performance has resulted in significant free cashflow generation for the period, allowing the Company to meet its debt servicing obligations and to greatly improve its financial position at year-end. We look forward to providing 2023 annual guidance and further details on this year’s milestones later this month.”

 

Production Highlights for the Quarter and Year Ended December 31, 2022

 

  Unit December 2022 Q4-2022 FY-2022
Ore processed tonnes 458,954 806,875 1,017,088
Ore grade Au g/t 0.96 0.93 0.93
Plant recovery % 91.8% 91.9% 91.9%
Gold produced Au oz 12,975 22,258 27,831
Gold sold Au oz 16,023 24,676 24,676

 

 

Figure 1: Average Daily Throughput Q4-2022

 * Average based on partial week

 

Liquidity Position

 

The Company generated significant free cashflow from operations during the last two months of 2022 which allowed the Company to satisfy all accrued interest and fees owing on its senior loans with Coris Bank by year-end, and to paydown its trade payables. The Company expects continued strong production in H1-2023 which will position the Company favourably to aggressively paydown its senior debt and to fund its growth initiatives for 2023.

 

Future Milestones:

• January 2023: Annual production and cost guidance and growth initiatives
• H1-2023: Additional oxide and sulphide exploration drilling results
• H2-2023: Updated Mineral Resource and Reserve estimate, Life of Mine plan and Phase II plant expansion study

 

About Orezone Gold Corporation

 

Orezone Gold Corporation (TSX: ORE OTCQX: ORZCF) is a Canadian mining company operating the open pit Bomboré Gold Mine in Burkina Faso.

 

Orezone is focusing on mining and processing the Phase I near surface free-dig oxides at a planned annual throughput of 5.2 million tonnes. The Company believes that Bomboré has a significant underlying sulphide resource to support a substantially larger Phase II expansion. A 77,000 m infill and expansion drill program is ongoing and once completed, the Company plans to issue an updated mineral resource and reserve statement and feasibility study, as part of this Phase II expansion. It is expected that the studies will be completed in H2-2023 to be followed by a production decision.

 

Orezone is led by an experienced team focused on social responsibility and sustainability with a proven track record in project construction and operations, financings, capital markets and M&A.

 

The technical report for the 2019 Feasibility Study on the Bomboré Project entitled NI 43-101 Technical Report (Amended) Feasibility Study of the Bomboré Gold Project is available on SEDAR under the Company’s profile at www.Sedar.com.

 

Posted January 10, 2023

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