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Orezone Gold Corporation (TSX:ORE) announces an updated resource statement, subsequent to its release of August 22, 2016, for its Bomboré Project in Burkina Faso, West Africa (Table 1).
Orezone Gold Corporation (TSX:ORE) announces an updated resource statement, subsequent to its release of August 22, 2016, for its Bomboré Project in Burkina Faso, West Africa (Table 1). The resource estimation was performed by the Company and audited, classified, and accepted by Roscoe Postle Associates Inc. (RPA) in Toronto, Ontario. Mineral Resources are estimated at variable cut-off grades depending on weathering layer and geographic location.
Using similar cut-off grades to the 2013 estimate for comparison purposes (Table 2), the results indicate that the tonnage and gold ounces contained in the previous 2013 overall combined Measured and Indicated (M&I) resource have been reduced by 29% and the average gold grade by 4% to 0.97 gram per tonne (gpt). Within this higher grade portion of the resource, the oxidized and transition M&I resource has been reduced by 31% and the average gold grade by 2% to 0.89 gpt. The fresh rock (sulphide) M&I resource has been reduced by 28% and the average gold grade by 6% to 1.04 gpt.
It should be noted that approximately one third of the reduction in resources is related to the impact of the flood plains, environmentally sensitive areas, and resource areas being set aside for the benefit of local artisanal miners. Most of these resources were already excluded from the reserves as part of the 2015 feasibility study. The remaining two-thirds of the reduction in resources can be attributed to the changes in the model and methodology.
The 2016 estimate is more conservative than the 2013 estimate due the Company’s re-interpretation of the mineralized domains coupled with restrictions on the grade modeling of the low grade domains. This resulted in the exclusion of all mineralization (both higher and lower grade) located outside of the envelopes. In other words, there remains mineralization in the waste domain that is unaccounted for in the 2016 resource statement. The Company has instructed RPA to review this mineralization so that it can potentially be included in the reserve update and next mine plan.
The Company plans to work with RPA to update the Mineral Reserves in order to review and revise the 2015 Phase 1 feasibility study as soon as possible in order to determine the actual impact on the reserves and the next stage of development for the project.
“We consider that the 2016 methodology and results are conservative for this type of deposit,” stated Ron Little, CEO for Orezone. “The 2013 resource estimate was based on the geological understanding of the Company at that time and employed a methodology that generally would be deemed suitable to the wide shear zone, low-grade disseminated style of mineralization at Bomboré. As a result of the change in the model and methodology, there is mineralized material above cut-off grade that is no longer captured by the new envelopes but occurs within the resource pit. Therefore, we may eventually realize a tonnage and grade during future mining operations that falls between the two resource estimates. Both resource statements are estimates, performed by well-known and well regarded Qualified Persons, working with Orezone, using best practices and the information available at that time.”
The Bomboré project still benefits from a large oxide and sulphide resource that allows for flexibility and potential expansion of the process facility. The resource still remains open at depth and for the most part along strike. The Company is planning further drilling for infill, expansion, and model testing purposes starting in October 2016. Part of the focus of this drilling is to define and upgrade the mineralization that is currently unclassified and occurs within the resource pit limits. This drilling will generally be shallow and designed to demonstrate the ability to upgrade resources by expanding grade domains and to test areas that have been previously identified as prospective but are presently excluded from the current estimate.
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