creating a new exploration growth story

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Creating a New Creating a New Exploration Growth Story Exploration Growth Story March 2009

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Creating a New Exploration Growth Story. March 2009. Forward Looking Statements. - PowerPoint PPT Presentation

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Page 1: Creating a New Exploration Growth Story

Creating a New Creating a New Exploration Growth Exploration Growth StoryStory

March 2009

Page 2: Creating a New Exploration Growth Story

This Presentation may contain “forward-looking information” which may include, but is not limited to, statements with respect to: political conditions and government regulations in foreign countries; timing of the receipt of governmental approvals and/or acceptances; targets, estimates and assumptions in respect of gold future gold production and prices; amount and type of future capital expenditures and capital resources; mineral reserves and mineral resources; anticipated grades; recovery rates; future financial or operating performance; costs and timing of the development of new deposits; costs, timing and location of future drilling; earning of future interests in various permits; production decisions; costs and timing of construction; operating expenditures; costs and timing and nature of future exploration; and environmental and reclamation expenses. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries and/or its affiliated companies to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include risks related to changes in, and volatility of, the price of gold; risks associated with operating in foreign jurisdictions; the speculative nature of gold exploration and development projects; permitting and title risks; risks relating to potential changes to governmental regulation; risks associated with the accuracy of mineral resource and reserve estimates; risks related to the fact that the Company has a history of losses and expects to incur losses for the foreseeable future; risks related to the reliance on the Company’s management team and outside contractors; risks related to drill shortages; risks associated with sample backlogs at assay laboratory facilities; risks related to the Company’s ability to finance the exploration and development of its mineral properties; risk relating to misrepresentations; uncertainties related to title to the Company’s mineral properties; risks relating to health concerns; environmental risks; operational risks and hazards inherent in the mining industry; risks associated with the potential inability to maintain available infrastructure; risks related to the potential unavailability of insurance to cover certain risks; risks related to increased competition in the mining industry; risks related to currency fluctuations; risks related to the fact the Company does not intend to pay dividends in the foreseeable future; risks that shareholders’ interest in the Company may be diluted in the future; factors that have historically made the Company’s share price volatile; risks for United States investors associated with possible PFIC status, as well as those risk factors identified in the Company’s publicly filed disclosure documents available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of the applicable public record document which the information is derived from and the Company has disclaimed any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.

Forward Looking Statements

Page 3: Creating a New Exploration Growth Story

The Orezone History The Orezone History 96 – 02 Built a Premier Project Portfolio at low gold 96 – 02 Built a Premier Project Portfolio at low gold

pricesprices

02 – 07 Grew Essakane Deposit from 1.5 Moz to +5.3 02 – 07 Grew Essakane Deposit from 1.5 Moz to +5.3

MozMoz

07 - 08 Brought Essakane to Construction07 - 08 Brought Essakane to Construction

Dec 08 Sold only Essakane to IAMGOLD for $350 MDec 08 Sold only Essakane to IAMGOLD for $350 M

Feb 09 Spin-Out Orezone Gold – ORG:TSXFeb 09 Spin-Out Orezone Gold – ORG:TSX

Page 4: Creating a New Exploration Growth Story

Orezone GoldOrezone Gold

100% interest in 3 Gold properties in Burkina Faso100% interest in 3 Gold properties in Burkina Faso

- Bomboré- Bomboré Scoping work / Expansion drillingScoping work / Expansion drilling

- Sega- Sega Scoping work, adjacent to Scoping work, adjacent to operating mineoperating mine

- Bondi- Bondi Advanced explorationAdvanced exploration

Gold Resources: 1.7 Moz Indicated and 2.0 Moz Gold Resources: 1.7 Moz Indicated and 2.0 Moz

InferredInferred

1000 km1000 km² of ² of Strategic Uranium permits in NigerStrategic Uranium permits in Niger Large Moly-Copper target discovered in NigerLarge Moly-Copper target discovered in Niger

C$10M in cash, no debtC$10M in cash, no debt

Experienced Management continues with Orezone Experienced Management continues with Orezone

GoldGold

Page 5: Creating a New Exploration Growth Story

Burkina Faso - Politically Stable Burkina Faso - Politically Stable DemocracyDemocracy

Under exploredUnder explored

Pro-mining Pro-mining

governmentgovernment

No ethnic or civil No ethnic or civil

unrestunrest

15M population15M population

4 mines in production4 mines in production

2 mines in 2 mines in

constructionconstruction

2011 42011 4thth largest largest

producerproducer

Page 6: Creating a New Exploration Growth Story

EssakaneEssakane 5 Moz5 Moz

TaparkTaparkoo 2 Moz2 Moz

YougaYouga1 Moz1 Moz

BomborBomboree 2.7 2.7 MozMoz

OuagadougouOuagadougou

BomborBomboré Project - Structureé Project - Structure

Markoye Fault Markoye Fault large deposit large deposit

associationassociation

Multi-million oz Multi-million oz potentialpotential

Deposit at surfaceDeposit at surface

EssakaneEssakane 5 Moz5 Moz

TaparkTaparkoo 2 Moz2 Moz

YougaYouga1 Moz1 Moz

BomborBomboréé 2.7 2.7 MozMoz

OuagadougouOuagadougou

KiakaKiaka2.6 Moz2.6 Moz

Page 7: Creating a New Exploration Growth Story

BomborBomboréé Project - Attributes Project - Attributes

0.93 Moz Indicated 0.93 Moz Indicated

resourceresource

1.78 Moz Inferred 1.78 Moz Inferred

resourceresource

Average grade <1g/tAverage grade <1g/t

Large open pit potentialLarge open pit potential

Low strip ratioLow strip ratio

Heap leach/CIL Heap leach/CIL

processingprocessing

Good infrastructureGood infrastructure

Page 8: Creating a New Exploration Growth Story

BomborBomboréé Project- Good Project- Good LogisticsLogistics

Flat terrain Low population density Large oxide resource

Page 9: Creating a New Exploration Growth Story

Bombore Growth PotentialBombore Growth Potential

14km strike length14km strike length

Oxides to depth of 40mOxides to depth of 40m

Continuity into fresh rockContinuity into fresh rock

Drilled only to 55m depth Drilled only to 55m depth

Open on strike/at depthOpen on strike/at depth

Expansion Drilling Q2 to Expansion Drilling Q2 to

Q4Q4

Page 10: Creating a New Exploration Growth Story

ProgramProgram Q1Q1 Q2Q2 Q3Q3 Q4Q4

MetallurgyMetallurgy        

RC Drilling - Oxide Inferred In-RC Drilling - Oxide Inferred In-fillfill        

RC Drilling - Oxide ExtensionsRC Drilling - Oxide Extensions    

D Drilling - Panel to 175 m D Drilling - Panel to 175 m DepthDepth        

Baseline StudyBaseline Study

Resource Update – In HouseResource Update – In House          

Bomboré Project Timeline - 2009Bomboré Project Timeline - 2009

Page 11: Creating a New Exploration Growth Story

Million

s o

f O

un

ces

Comparable Grade Comparable Grade DepositsDeposits

1.05

Grade (g/t)

Page 12: Creating a New Exploration Growth Story

Sega ProjectSega Project

446,000 oz Indicated446,000 oz Indicated

64,000 oz Inferred 64,000 oz Inferred

Grade 1.8 g/tGrade 1.8 g/t

7 pittable targets7 pittable targets

heap leach potential heap leach potential

313 km² project area313 km² project area

Page 13: Creating a New Exploration Growth Story

Bondi ProjectBondi Project

282,000 oz Indicated282,000 oz Indicated

149,700 oz Inferred149,700 oz Inferred

Grade 2.0 g/tGrade 2.0 g/t

4 open pittable zones4 open pittable zones

Heap leach potentialHeap leach potential

224 km² permit 224 km² permit

Good infrastructureGood infrastructure

Page 14: Creating a New Exploration Growth Story

Niger Uranium PermitsNiger Uranium Permits

2 permits , Zeline 1 & 4 2 permits , Zeline 1 & 4

Total 980 kmTotal 980 km²²

40 km from AREVA 40 km from AREVA

minesmines

Main structural breakMain structural break

Favorable geologyFavorable geology

Shared infrastructureShared infrastructure

ozn

ozn

10 km

Page 15: Creating a New Exploration Growth Story

Orezone GoldOrezone Gold

100% interest in 3 Gold properties in Burkina Faso100% interest in 3 Gold properties in Burkina Faso

Bomboré Project Expansion to PrefeasibilityBomboré Project Expansion to Prefeasibility

Gold Resources: 1.7 Moz Indicated and 2 Moz Gold Resources: 1.7 Moz Indicated and 2 Moz

InferredInferred

C$10 M in cash, no debtC$10 M in cash, no debt

Growth through exploration, expansion, Growth through exploration, expansion,

acquisitionacquisition

Experienced Management and DirectorsExperienced Management and Directors

Focused on returns for ShareholdersFocused on returns for Shareholders

Page 16: Creating a New Exploration Growth Story

Research CoverageResearch Coverage

BMO Capital Markets:BMO Capital Markets: David HaughtonDavid Haughton

Andrew BreichmanasAndrew Breichmanas

CIBC WoCIBC World Marketsrld Markets:: Barry Cooper, Cosmos ChiuBarry Cooper, Cosmos Chiu

Raymond James:Raymond James: Brad HumphreyBrad Humphrey

Canaccord Adams:Canaccord Adams: Nicholas CampbellNicholas Campbell

Scotia Capital:Scotia Capital: Trevor TurnbullTrevor Turnbull

Page 17: Creating a New Exploration Growth Story

Creating a New Creating a New Exploration Growth StoryExploration Growth Story