| November 14, 2008 |
| Orezone Third Quarter Update |
OTTAWA, ONTARIO--(Marketwire - Nov. 14, 2008) - Orezone Resources Inc. (TSX:OZN) (AMEX:OZN) announces that its financial statements and Management's Discussion and Analysis for the three and nine month periods ended September 30, 2008 have been filed on Sedar.
Essakane Project Develpment
During the third quarter engineering, design and planning for construction of the Essakane mine continued. The first deliveries of mining and earth moving equipment arrived and are being used for earthworks relating to building the mine infrastructure. Permanent access roads between the mine village, mine plant and mill site were completed. Detailed engineering for the mine village was completed and construction is underway. Detailed engineering for the processing plant was substantially completed as was basic engineering related to the power plant, water reservoirs and tailings pond. The Company has invested approximately US$80 million in advancing the Essakane project to date and has purchase commitments of approximately US$77 million, the majority of which are progress payments on equipment yet to be delivered.
The Essakane project is fully permitted and long lead time equipment has been ordered. The mine is expected to produce an average of 330,000 ounces per year during the first four years of operation and costs over the life of the mine are estimated to be US$358 per ounce. Essakane contains 4.0Moz of Indicated resources and 1.3Moz of Inferred resources at a 0.5g/t cut-off. Reserves contained within a US$600 gold price mine plan are 3.1Moz. The deposit remains open and untested below 260m from surface and is surrounded by several satellite deposits.
Essakane Project Financing
During August 2008, Bayerische Hypo-und Vereinsbank AG, a member of UniCredit Group ("HVB") and The Standard Bank of South Africa received credit approvals to fully underwrite and provide US$300M in project debt and a US$30M cost over-run facility for the project. The availability of these facilities is subject to a number of conditions precedent including entering into forward sales contracts for the term of the project facility and raising additional capital which was estimated at approximately US$125 million. The credit markets have changed since these facilities received final approval and it is expected that the terms will change and require re-approval. Discussions are ongoing in this regard. The Standard Bank of South Africa has provided the Company with a US$40 million bridge loan which has been fully drawn and committed, and is repayable on January 29, 2009.
Orezone is an explorer and emerging gold producer that owns Essakane and Bombore, the two largest gold deposits in Burkina Faso, West Africa. Orezone also has a pipeline of developing projects, all located in politically stable areas of West Africa, one of the world's fastest growing gold producing regions. Orezone's mission is to create wealth by discovering and developing the earth's resources in an efficient and responsible manner.
FORWARD-LOOKING STATEMENTS AND FORWARD-LOOKING INFORMATION: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements and forward-looking information are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements and forward-looking information in this news release include statements with respect to the raising of additional capital, entering into forward sales contracts and reserves, resources, production and costs relating to the Essakane project.
Forward-looking statements are based on certain assumptions, opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking statements. The assumptions include that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for the drilling program is available as scheduled, and that no labour shortages or delays are incurred. Factors that could cause the forward-looking statements and forward-looking information to differ materially in actuality include the failure of contracted parties to perform as contracted and the failure of equipment. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Readers are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Readers should refer to the annual information form of Orezone for the year ended December 31, 2007, and other continuous disclosure documents filed by Orezone since January 1, 2008 available at www.sedar.com, for this detailed information, which is subject to the qualifications and notes set forth therein.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: This press release uses the terms "Measured", "Indicated" and "Inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. | |