SRK Consulting (Canada) is releasing the following in response to Orezone Gold Corporation’s (Orezone) news release of 22 August 2016.
Background
SRK Consulting (Canada)’s Ontario office (SRK) was involved with the Bomboré gold project from 2008 through to early 2013. SRK initially audited two mineral resource models generated by Orezone and subsequently generated two additional mineral resource models based on progressively larger exploration data sets. The first three mineral resource models were each supported by published technical reports in November 2008, November 2010 and October 2012, respectively. The April 2013 mineral resource model prepared by SRK is the last reported mineral resource model, and it is informed by exploration data to November 2012.
The April 2013 model was used in a preliminary economic assessment for the Bomboré gold project, completed in March 2014 and a feasibility study completed in April 2015.
Comment
The August 22, 2016 news release stated that a new mineral resource model update is currently being completed and will be publically released in September 2016. SRK understands that considerable additional exploration data (including 57,258m of exploration drilling) has been generated by Orezone subsequent to November 2012.
The new mineral resource model is not yet complete and SRK has not yet been able to review any aspect of the model. In addition to the application of a different dataset, it is anticipated that the new mineral resource model will be based on updated geological wireframes, updated variography, alternative estimation methodologies and reporting / classification assumptions. For example, to differentiate between gold mineralisation and waste the 2013 model applied a geology-based domaining strategy, compared to grade shells that are reported to have been used in the new model. It is also expected that the application of revised metal prices, and the exclusion of certain satellite deposits will contribute to a different outcome to that of the April 2013 model.
SRK applied a rigorous QA / QC procedure for the 2013 mineral resource model and looks forward to the opportunity to review and provide comment on any differences that cannot be explained by new data, alternative estimation methodologies and new assumptions.