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Monday, Feb 6, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Orezone Gold announces commercial production at Burkina Faso mine

The company has a 90% stake in the open-pit mine while the country’s government retains the other 10%

Orezone Gold achieves commercial production at Burkina Faso mine
A1 Pit. Photo via Orezone Gold

Vancouver-based Orezone Gold Corporation (TSX: ORE) (OTCQX: ORZCF) has achieved commercial production at its Bomboré Gold Mine in the heart of West Africa’s Burkina Faso.

The company announced the milestone on Thursday and the achievement is effective as of December 1 as well.

Orezone says declaring commercial production at the site was based on achieving 30 consecutive days of throughput (quantity of raw material passed through the mill) greater than 70 per cent of the rated capacity of 14,250 tonnes per day and a recovery rate (proportion of gold obtained) consistent with design levels of 90 per cent.

Read more: Northern Ontario Mining Showcase returns to Toronto PDAC convention after acquiring federal funding

Read more: The Mugglehead resources and mining roundup: silver and gold

Last month, the mill processed approximately 364,000 ore tonnes at a 91 per cent recovery rate.

“Commercial production at Bomboré is a significant milestone and transforms the company to producer status. We congratulate the Bomboré team for their excellent execution in achieving this goal,” said Patrick Downey, CEO and President of Orezone.

“With our power supply issues now firmly behind us, we are focused on optimizing plant performance and steadily increasing throughput and availability with the objective of exceeding design capacity.”

The company says its management team plans on providing annual guidance for the mine in January next year.

Orezone Gold achieves commercial production at Burkina Faso mine

Burkina Faso mining map. Photo via Orezone Gold

Orezone is currently focused on mining and processing the site’s Phase I near surface free-dig oxides (chemical compounds) and plans on having a yearly throughput of 5.2 million tonnes. The company says it thinks the West Africa mine contains a substantial sulphide resource capable of supporting a much larger Phase II expansion at the location.

International mining operations operated by Canadian-listed companies have seen tremendous success.

Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) is another Canadian-listed growing mid-tier gold producer with a strong pipeline of development and exploration opportunities across Nevada and Washington in the USA, and Nicaragua.

It currently has an analyst BUY rating with a price target of C$1.50 given by Canaccord Genuity Corp. (Canada).

In 2022, Calibre is expected to produce 220,000-235,000 ounces of gold with a total cash cost of between $1,075-$1,150 per ounce, and an all-in sustaining cost of $1,200 – $1,275 per ounce.

During their 2022 drill program at its 100% owned Gold Project located in White Pine County, Nevada in the Battle Mountain – Eureka gold trend,  Calibre intersected high-grade, sulphide mineralization in areas previously untested by drilling.

Highlights of the results include:

  • 5.5 g/t Au over 3.0 metres in hole GC22-008; 7.1 g/t Au over 2.1 metres in hole GC22-013;
  • 6.6 g/t Au over 5.8 metres in hole GC22-015; 4.1 g/t Au over 8.1 metres in hole GC22-016;
  • 3.0 g/t Au over 19.2 metres in hole GCM22-001; 4.6 g/t Au over 4.6 metres in hole GR22-006;
  • 6.7 g/t Au over 3.0 metres in hole GR22-091; 6.8 g/t Au over 4.6 metres in hole GR22-102;
  • 5.5 g/t Au over 3.0 metres in hole GR22-115; 4.1 g/t Au over 3.0 metres in hole GR22-151;
  • 3.2 g/t Au over 43.8 metres including 6.1 g/t Au over 8.1 metres in hole GC22-018;
  • 5.3 g/t over 3.0 metres in hole GR22-152; 8.0 g/t over 1.52 metres in hole GR22-041

Note: All holes were drilled at angles of -45 to -90 degrees at azimuths designed to intersect targeted structures as nearly as possible to perpendicular when possible. Some drill holes and intercepts reported here did not cross mineralization perpendicularly, and do not represent exact ‘true widths’.

With continued drill success across their assets, Calibre has dedicated $47M dedicated to exploration in 2022, which includes a significant 185,000m of expansion and discovery drilling. Thus, in addition to a strong production profile, Calibre also provides investors with exploration upside potential – a double whammy that most gold companies simply don’t have.

 

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