Burkina Faso – TSXV-listed Orezone Gold Corporation (Orezone) received final approval on 18 May 2016 by the Ministry of Environment, Green Economy and Climate Change for the Resettlement Action Plan (RAP) and the Environmental and Social Impact Assessment (ESIA) for the Burkina Faso-based project.
With the environmental approvals in hand, the project will be presented, in the coming weeks, to the National Commission of Mines.
The presentation is the final step in the permitting process before a decision can be made by the Council of Ministers and decreed by the Government to grant the mining permit.
This is expected during the third quarter of 2016.
The company’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 of $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.
Bondi project sale
Orezone recently agreed to sell its Bondi gold project to West African gold explorer Sarama Resources for C$1.44 million in a bid to support the efforts of Sarama and other miners in the area in order to consolidate enough resources to justify the construction of a central processing facility.
Bondi, also located on the Houndé greenstone Belt in the southwest of Burkina Faso, has four zones with measured and indicated resources of 282 000 oz of gold and an inferred resource of 149 700 oz. Approximately 50% of the resources are oxidized.