Orezone busy in Burkina Faso

Orezone Resources (ORZ-T) has raised $10.1 million via an underwritten bought deal involving 11.2 million units.

The company privately placed 9 million of the units at 90 apiece; the balance were subscribed to by the underwriters, including Canaccord Capital, BMO Nesbitt Burns, Pacific International Securities and Westwind Partners.

Each unit includes one share plus half a share purchase warrant, with each warrant good for one share at $1.20 each for 18 months from closing. The securities issued under the private placement are subject to a four-month hold period. Pending regulatory approval, the deal is expected to wrap up by Oct. 24.

Earlier this month, Orezone launched a US$2.5-million exploration program on the Essakan Bondi, Sega gold projects in Burkina Faso, West Africa. The bulk of the funds will be spent on 35,000 metres worth of drilling aimed at boosting resources.

Of the total budget, $1 million will be spent by Gold Fields (GFI-N) on the Essakan project. There, two drill rigs have begun sinking 18,000 metres of drilling to test 15 new gold-in soil anomalies and extensions of the Main zone. Drilling is expected to wrap up early next year; a new resource calculation for the main zone would follow.

Gold Fields can earn a half-interest the 1,450-sq.-km project by spending US$8 million; its can boost its stake to 60% by completing a bankable feasibility study.

Some 8,000 metres of drilling is testing the wholly owned Sega project, including 2,500 metres on the recently discovered Bakou zone. Previous drilling on Bakou returned up to 12.5 grams gold per tonne over 25 metres and 3.35 grams gold over 28 metres. Another 3,000 metres will test for extension to the known zones. The Sega project is home to an inferred resource of 3.3 million tonnes running 2.8 grams gold. Drilling should end by early November; an updated resource calculation will follow.

Finally, 9,000 metres of drilling are planned for the Bondi project beginning in early November. Most of the drilling will fill in the recently discovered the North zone, an 800-metre gold mineralized zone lying in a 4-km gold in soil anomaly. Previous near-surface reverse-circulation drilling cut 3.8 grams gold across 42 metres. Drilling will also target five targets similar to the North zone.

Orezone hopes decide whether to advance to prefeasibility studies at Sega and Bondi in early 2004.