Partners extend Essakan (March 08, 2005)

Reverse-circulation and diamond drilling by Orezone Resources (OZN-T) has intersected multiple zones of footwall mineralization beneath the Main zone at the Essakan gold project in Burkina Faso.

Recent drill highlights are as follows:

• hole 707D — 16.5 metres (from 154.5 metres) of 4.4 grams gold (cut);
• hole 708D — 23.5 metres (beginning 171 metres below surface) grading 7.4 grams gold per tonne;
• hole 858D — 7.5 metres (from 156.5 metres) averaging 14.4 grams;
• hole 862 — 5 metres (from 149 metres) of 25.1 grams gold;
• hole 990 — 19 metres (from 51 metres) of 4.95 grams gold;
• hole 1000 — 5 metres (from 56 metres) of 6.2 grams gold;
• hole 1016 — 9 metres (from 81 metres) of 5.2 grams gold;

High assay values were cut to 30 grams gold. The remaining holes returned grades of 1-3 grams gold over 10-30 metres.

The drilling is part of an ongoing $6.6-million effort to explore the Essakan Main zone (EMZ), which has an indicated resource of 49 million tonnes grading 1.5 grams gold per tonne, or 2.4 million oz. gold. An additional 5.7 million tonnes grading 1.7 grams gold are inferred. The figures are based on a cutoff grade of 0.5 gram gold.

Orezone will continue to test the footwall zones on 50-by-100-metre sections. Five reverse-circulation rigs and one diamond core rig are on the scene. Since August 2004, the company has sunk a total of 41,000 metres.

The EMZ will be subjected to infill drilling on 25-metre centres. Other drilling will test its down-plunge and western extension.

Gold Fields (GFI-N) will have spent more than US$8 million on, and earned a half-stake in, the project by the time the current program wraps up. The South African major can then boost its stake to 60% by completing a bankable feasibility study.

The partners expect to table a new resource figure in early June, with a full feasibility study slated to start in September. Conceivably, a production decision would follow in mid-2006.