Orezone Selects Lycopodium as EPCM Contractor and Provides Bombor Project Development Update
VANCOUVER, British Columbia, Jan. 05, 2021 (GLOBE NEWSWIRE) -- Orezone Gold Corporation (TSX.V: ORE OTCQX: ORZCF) is pleased to announce that it has taken several key steps in advancing its 90% owned Bombor Gold Project towards project construction. Highlights include:
- EPCM Award: The Company has awarded the engineering, procurement, and construction management (“EPCM”) contract to Lycopodium Minerals Pty Ltd. (“Lycopodium”), a company with an excellent track record of delivering projects on time and on budget in West Africa. First gold is scheduled for early
Q3-2022.
- Phase I Resettlement Action Plan (“RAP”): 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. For pictures of the Phase I RAP, please visit Orezone’s photo gallery link.
- Mining Contract: The Company 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.
- Power Plant: Bids for the Build-Own-Operate power plant have recently been received from companies specializing in providing power solutions in West Africa. The Company expects to award this contract in Q1-2021.
- Project Financing: 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. The Company expects an announcement of binding debt commitments later this month.
Patrick Downey, President and CEO, stated, “Awarding the EPCM contract to Lycopodium is a key step to ensure the continued successful development and construction of the Bombor project. 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 Bombor, 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.”
About Lycopodium Minerals Pty Ltd.
Lycopodium is an Australian headquartered, global engineering and project delivery organisation providing specialist services in the development and delivery of mineral resource studies and projects. The company has completed the construction of more than a dozen gold development projects in West Africa over the past decade. Lycopodium has a demonstrated track record in Burkina Faso, recently delivering successful EPCM gold projects at the 2Mtpa Sanbrado project for West African Resources Ltd. which is adjacent to Bombor, the 3Mtpa Hound project for Endeavour Mining Corporation, and the 2.5Mtpa Wahgnion project for Teranga Gold Corporation. Significantly, Lycopodium has just completed the 3.3Mtpa Yaour project for Perseus Mining Ltd. in Cte d’Ivoire, ahead of schedule and under budget during the COVID-19 pandemic.
Qualified Person
Ian Chang, P. Eng., VP Projects, is the Qualified Person who has approved the scientific and technical information in this press release.
About Orezone Gold Corporation
Orezone Gold Corporation (TSX.V: ORE OTCQX: ORZCF) is a Canadian development company which owns a 90% interest in Bombor, one of the largest undeveloped gold deposits in Burkina Faso.
The 2019 feasibility study highlights Bombor as an attractive shovel-ready gold project with forecasted annual gold production of 118,000 ounces over a 13+ year mine life at an All-In Sustaining Cost of US$730/ounce with an after-tax payback period of 2.5 years at an assumed gold price of US$1,300/ounce. Current Bombor mineral resources are in excess of 5 million ounces of gold.
Patrick Downey,
President and Chief Executive Officer
Vanessa Pickering
Manager, Investor Relations
Tel: 1 778 945 8977 / Toll Free: 1 888 673 0663
info@orezone.com /www.orezone.com