Burkina Faso – The presentation is the final step in the permitting process that Orezone Gold Corporation has to take before a decision can be made by the Council of Ministers and decreed by the Government to grant the mining permit, which is expected during the third quarter of 2016.
The Burkina Faso National Commission of Mines reviewed the project’s feasibility study, including an environmental assessment and impact study, and a relocation action plan. [quote]
The company has now fulfilled all the conditions set by the National Commission of Mines and was advised that the commission will issue a favorable and binding opinion with respect to the company’s application for a commercial mining permit.
Orezone Gold Corporation’s Bomboré gold project is the largest undeveloped oxide gold deposit in West Africa, and is situated 85 km east of the capital city, adjacent to an international highway. The Company has completed a Feasibility Study and received all environmental approvals for a mining permit at Bomboré that is expected during the third quarter of 2016.
Orezone believes that construction of the mine could be completed as early as 2018 subject to a $250 million full project financing.
Bomboré has a production profile of 135 000 ozpa for the first eight years at an all in sustaining cost estimated at $678/oz with a 2.7 year payback and a 24% after tax IRR using a $1 250/oz gold price.
The project also benefits from a large underlying sulphide orebody that has been drilled and studied and could be developed as part of a second phase plant expansion at higher gold prices, to increase production to over 200 000 ozpa for many more years.
Orezone has a successful gold discovery track record and mine development experience in Burkina Faso, West Africa, having made the first major discovery in the Houndé greenstone belt in 1997, before the discovery of Mana by Semafo, Yaramoko by Roxgold and Houndé by Endeavour.