Orezone releases first results from Sega property
By Ottawa Business Journal Staff
Wed, Mar 22, 2006 1:00 PM EST
Orezone president Ron Little
Ottawa-based Orezone Resources has released the first resource estimate for its Sega gold exploration project in Burkina Faso, West Africa.
Based on exploration work up to June 15, 2005 and using a 0.5g/t cutoff, the company estimates the resource at 4.8 million tones grading 1.99 g/t or 310,600 ounces of gold. Inferred resources total 1.4 million tones grading 1.61` g/t or 73,000 ounces.
The resource estimate encompasses the three main zones of mineralization on the Sega property---the Bakou, Gambo and RZ zones---all of which are located within a relatively small 2.5 square kilometer area.
In January, Orezone identified a number of new gold zones on the property. They are not included in the initial resource estimate.
"The current resource estimate is a good start towards building sufficient resources for a heap leach operation," says Orezone president and CEO Ron Little. "Based on current gold prices and operating costs for the West African region, a resource of double this size at the same grade or better is likely required to make a production decision. Recent drill results provide encouragement that we can achieve this goal and we are also evaluating a number of other scenarios in order to advance this project towards production."
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