Orezone Gold Corporation has awarded the engineering, procurement, and construction management contract for its 90%-owned Bomboré gold project in Burkina Faso to Lycopodium Minerals Pty Ltd.
Lycopodium has a company with an excellent track record of delivering projects on time and on budget in West Africa.
Orezone has scheduled its first gold pour for early Q3, 2022.
Another key step in advancing its Bomboré project has been executing the Phase I Resettlement Action Plan. All villages and infrastructure have now been completed. Relocation of households is proceeding smoothly with relocation substantially complete. This opens access to all areas required for the preparation of the process plant, surface infrastructure, and key mining areas including the Off-Channel Reservoir and tailings storage facility.
The company is also in the process of securing its mining contract and has undertaken a competitive tender process including bidder site visits and a detailed assessment of proposals received. The company plans to award the open pit mining contract in early 2021 to allow for contractor mobilization, site establishment, and commencement of pre-production mining by the end of Q1, 2021.
Moreover, the company has received bids for the build-own-operate power plant have recently been received from companies specialising in providing power solutions in West Africa. The company expects to award this contract in Q1, 2021.
In terms of project funding, negotiations for conventional project debt covering a major portion of the project construction budget are advancing rapidly and smoothly. Site visits have been completed and a non-binding term sheet was signed in December 2020. The company expects an announcement of binding debt commitments in January.
“Awarding the EPCM contract to Lycopodium is a key step to ensure the continued successful development and construction of the Bomboré project, says Orezone President and CEO Patrick Downey.
“With more than 12 mines built in West Africa, Lycopodium’s track record of building efficient mines on time and on budget is unparalleled. Lycopodium is very familiar with Bomboré, having performed the 2018 feasibility study, the 2019 updated feasibility study, and the previously completed front-end engineering and design. Lycopodium will be able to immediately build on its past work and progress the project in a cost effective and timely manner.
“Having our full owner’s team in place early has added tremendous value during our bid review process. We are looking forward to starting construction on our path to becoming the next significant gold producer in Burkina Faso with first gold scheduled for early Q3-2022. In that regard, I also look forward to announcing our project debt package later this month.”