Orezone Gold Corporation's Q1-2025 Production Results
VANCOUVER, British Columbia — Orezone Gold Corporation (TSX: ORE, OTCQX: ORZCF) is excited to share its production results for the first quarter of 2025, alongside updates on the ongoing hard rock expansion at the Bomboré Gold Mine. All monetary values are presented in USD, with 'M' denoting million.
Q1-2025 Gold Production Highlights
During the first quarter of 2025, Orezone achieved remarkable results, highlighting a productive start to the year:
- Gold production reached 28,688 ounces.
- Gold sales totaled 28,943 ounces, averaging $2,851 per ounce, yielding $82.5 million in revenue.
- By quarter's end, the Company reported a cash balance of $102.0 million, with senior debt at $65.2 million after principal repayments of $4.8 million during the quarter.
- Notably, Orezone reached a significant safety milestone, achieving 20 million person-hours worked without a Loss Time Injury (LTI) by March.
Stage I Hard Rock Expansion Updates
The Stage I hard rock expansion project at Bomboré is progressing well:
- Construction remains ahead of schedule and on budget, with the first gold pour and mill commissioning anticipated for Q4-2025.
- Engineering efforts have exceeded targets, reaching 85% completion by the end of March.
- Procurement processes are nearly finalized, needing only minor top-ups for bulk materials.
- Major components for the SAG mill have arrived ahead of schedule.
- Concrete works are also ahead of schedule, with foundations for the dump pocket and SAG mill significantly advanced, and CIL tank foundations fully completed.
- Installation of CIL tanks is underway, with contractors actively engaged in structural, mechanical, and piping work.
- Preparation for hard rock mining has commenced, with several areas made ready.
President and CEO Patrick Downey remarked, "The first quarter showcased solid operations at Bomboré, even though our gold production was slightly below expectations due to rescheduled mill maintenance. However, the mined tonnage exceeded our projections, setting us up well for our guidance of 115,000 to 130,000 ounces for 2025."
Throughout the quarter, the Company achieved a notable safety milestone with 20 million person-hours worked without an LTI. This significant achievement reflects the commitment to safety culture at the Bomboré site, backed by the team's consistent injury prevention efforts.
During the first quarter, substantial progress was made on the Stage I hard rock expansion with major advancements in concrete foundations and CIL tank installation. Remainig on track and within budget, the completion of this project is set to increase gold production by approximately 45%, leading to an expected output of 170,000 to 185,000 ounces by 2026.
Orezone is also preparing for further growth, announcing plans for a secondary listing on the Australian Securities Exchange (ASX), aiming for a mid-2025 launch. Additionally, the Company is exploring the acceleration of the Stage II hard rock expansion to increase annual production capacity to an impressive 220,000 to 250,000 ounces, two years ahead of schedule. Recent drilling programs are set to target high-grade extensions in promising geological zones as well.
Production Overview for Bomboré in Q1-2025 (100% Basis)
Here's a snapshot of the key production metrics for the period:
| Indicator | Unit | Q1-2025 |
|---|---|---|
| Ore processed | Tonnes | 1,511,303 |
| Ore grade | Au g/t | 0.67 |
| Plant recovery | % | 87.9 |
| Gold produced | Au oz | 28,688 |
Hard Rock Plant Operations Insight
The 2.5 million tonnes per annum (Mtpa) Stage I hard rock expansion is poised to process higher-grade ore independently from the adjacent 6.0Mtpa oxide plant while utilizing shared facilities. This brownfield expansion minimizes both schedule and budget risks, benefiting from the well-established operations onsite.
As commissioning for Stage I is scheduled for Q4-2025, Orezone is optimistic about exceeding throughput expectations akin to the successful oxide plant operations. With the solid gold market, the Company remains deliberate about the timing for a subsequent Stage II expansion, targeting a throughput increase to 5.0 Mtpa, anticipating production yields of 225,000 to 250,000 ounces annually. The ongoing installation of a 5.0Mtpa jaw crusher is a substantial step in this direction.
Contact Information
For further inquiries, please reach out to:
Patrick Downey
President and Chief Executive Officer
Kevin MacKenzie
Vice President, Corporate Development and Investor Relations
Telephone: 1 778 945 8977 / Toll Free: 1 888 673 0663
info@orezone.com
Frequently Asked Questions
What are the recent production results from Orezone?
In Q1-2025, Orezone Gold Corporation reported a gold production of 28,688 ounces and its gold sales totaled 28,943 ounces.
What is the significance of the hard rock expansion project?
The Stage I hard rock expansion is set to significantly increase Orezone's gold production capacity from Bomboré, with expected outputs increasing by approximately 45% once completed.
How is Orezone positioned for future growth?
Orezone is advancing its expansion plans and evaluating a secondary listing on the ASX, aiming for accelerated growth in its production capabilities.
What milestones did Orezone achieve in safety?
Orezone reached a substantial safety milestone of 20 million person-hours without a Loss Time Injury (LTI), showcasing its commitment to workplace safety.
When is the expected commissioning for the hard rock expansion?
The commissioning for the Stage I hard rock expansion is targeted for Q4-2025, aligning with the company's ambitious production goals.
