Orezone Gold (TSX:ORE) reported that it has submitted a mining permit application for the construction and operation of the Bomboré gold project to the government of Burkina Faso. The permitting process will take four to eight months, which includes public hearings and a review by the Ministry of Mines and Energy, the Ministry of Environment and Durable Development, and the National Mining Commission. Discussions with the local population are well underway with respect to the Resettlement Action Plan.
As quoted in the press release:
The four to eight month permitting process includes public hearings and a complete review by the Ministry of Mines and Energy1 (MEE) and the Ministry of Environment and Durable Development2 (MEDD) and the National Mining Commission3(NMC), a technical panel. During a weekly cabinet session in parliament the recommendations of the NMC are reviewed and once approved, the permit is a Decree signed by the President of Burkina Faso, the Minister of Economy and Finances, the Minister of MEE and the Minister of MEDD.
Resettlement Action Plan (RAP)
Orezone, together with a group of local consultants (BEGE, SOCREGE, ARCHI CONSULT) completed as part of the ESIA, an extensive inventory assessment of the assets owned by the people affected by the project. The inventory has been reviewed and validated by those located in the northern half of the project that will be relocated during the initial phase of development. The RAP Committee, which includes representatives from all stakeholders, has been provided with an update of the ESIA as well as the Company’s proposed RAP compensation package. A final and formal agreement with the communities, to be ratified by the RAP committee, should be completed in early Q3 2015 prior to the MEDD public hearings.
The Company is exploring many alternatives to be in a position to fund the complete construction of the project in Q1 2016; the expected timeline to receive all government permit approvals. Initial discussions with potential lenders indicate that the project will bear a significant level of debt (up to $150M) as a result of the robust economics. The estimated time to construct the Bomboré operation (pre-production) is 21 months, including time to excavate the +3Mm3 Off Channel Reservoir (OCR) to be used for water storage, and time to commission the process plant equipment.