Orezone Gold is moving closer to the construction phase at its 90% owned Bomboré project in Burkina Faso after awarding an EPCM contract for the gold asset, completing a Phase I Resettlement Action Plan (RAP) with nearby communities, and making progress on awarding both mining and power plant Build-Own-Operate contracts.
The company has awarded the engineering, procurement, and construction management contract to Lycopodium Minerals Pty Ltd, a company, Orezone says, has an excellent track record of delivering projects on time and on budget in West Africa.
When it comes to the Phase 1 RAP, Orezone said all villages and infrastructure have now been completed.
“Relocation of households is proceeding smoothly with relocation substantially complete,” it noted. “This opens access to all areas required for the preparation of the process plant, surface infrastructure, and key mining areas including the off-channel reservoir and tailings storage facility.”
Alongside this work, Orezone has undertaken a competitive tender process for the contract mining agreement at Bomboré, including bidder site visits and a detailed assessment of proposals received.
The company plans to award the open-pit mining contract in early 2021 to allow for contractor mobilisation, site establishment, and commencement of pre-production mining by the end of the March quarter.
Bids for the Build-Own-Operate power plant, meanwhile, have recently been received from companies specialising in providing power solutions in West Africa, Orezone said. The company expects to award this contract in the current quarter.
Orezone’s 2019 feasibility study on Bomboré envisaged a 5.2 Mt/y throughput operation able to produce, on average, 117,760 oz of gold over a 13-year mine life where both oxide and sulphides would be mined and processed.
The company said negotiations for conventional project debt covering a major portion of the initial project construction budget of $153 million were advancing “rapidly and smoothly”, with expectations of binding debt commitments being announced later this month.
As currently planned, first gold is scheduled for early in the September quarter of 2022.
Patrick Downey, President and CEO, said: “Awarding the EPCM contract to Lycopodium is a key step to ensure the continued successful development and construction of the Bomboré project. With more than 12 mines built in West Africa, Lycopodium’s track record of building efficient mines on time and on budget is unparalleled.
“Lycopodium is very familiar with Bomboré, having performed the 2018 Feasibility Study, the 2019 Updated Feasibility Study, and the previously completed front-end engineering and design.”
Downey said Lycopodium will be able to immediately build on its past work and progress the project in a cost effective and timely manner.
