Tag Archives: Bomboré

Orezone ties up LNG and solar power options for Bomboré gold project

Orezone Gold Corp’s Bomboré gold project is to become the first mine in Burkina Faso to use LNG to power its operations after the Vancouver-based company signed a Power Purchase Agreement (PPA) with Genser Energy Burkina SA for the supply of “clean energy electrical power” to the project.

Under the PPA, Genser will use liquefied natural gas (LNG) as its main fuel, augmented with a staged solar plant, Orezone said. A fixed rate energy tariff will apply over the life of mine oxide operation with a fixed rate tariff to be negotiated for the additional energy demand upon commissioning of the sulphide processing circuit expected in Year three of commercial production.

The power plant will consist of 6 2.5 MW LNG generators with four 2.6 MW diesel back-up units. This configuration is sized for the initial oxide operation and the planned sulphide expansion, the company explained. At the same time, a solar photovoltaic plant, up to 14 MWp, is to be installed in stages with an 11 kV powerline to connect the gas and backup diesel generators, and solar plant.

Genser is to design, permit, finance and install all power generating equipment and associated infrastructure including LNG storage and diesel storage terminals. It will also be the operator and owner of the power plant facility.

Patrick Downey, President & CEO of Orezone, said: “We are extremely excited to be the first mine in Burkina Faso to use a LNG and solar hybrid power supply. Besides being an excellent cost-effective choice for Bomboré, we also see this new power solution as being a very positive step for the Burkina Faso mining and electricity generating sectors. LNG power systems, coupled with solar, will enable energy intensive industries such as mining to reduce fuel consumption, decrease energy costs, and significantly cut greenhouse gas emissions.”

He added: “This life of mine fixed cost agreement for clean energy from Genser provides power cost certainty over life of mine oxide production at Bomboré and provides an excellent platform for project expansion and growth.”

The Honourable Dr Bachir Ismael Ouedraogo, The Minister of Mines and Energy for Burkina Faso, said: “Having the first LNG plant at a mining operation is a great step forward for the industry and we congratulate Orezone in this regard. As a government, we continue to support clean energy alternatives that provides a platform for sustainable growth and benefits our communities.”

Alongside the announcement of the PPA, Orezone said that significant progress had been made at Bomboré during the first two quarters of the year. Engineering is now approximately 30% complete and on schedule, with design and bulk quantities from this work trending favourably against the quantity estimates used in the 2019 feasibility study.

Procurement is well advanced with firm orders placed for most mechanical and electrical equipment with purchase costs generally below budget estimates, it added.

In January, the company appointed Lycopodium Minerals Pty Ltd as the project’s EPCM contractor, while, in February, Sila Equipement ET BTP SA was named as its open-pit mining contractor.

Meanwhile, bulk materials including concrete reinforcing bar and embeds, CIL tank platework, structural steel and platework, HDPE liner, and overland piping have also been ordered with costs also trending within budget, Orezone said.

Off-channel reservoir mining, earthworks for the plant site area and tailings storage facility are rapidly advancing, and the award of the contracts for concrete installation and CIL tank erection and overland piping are imminent, it added.

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 project remains on track for first gold pour in the September quarter of 2022.

Sila Equipement to take on contract mining task at Orezone’s Bomboré gold project

Orezone Gold Corp has selected Sila Equipement ET BTP SA as its open-pit mining contractor for the Bomboré gold project in Burkina Faso.

This follows the January appointment of Lycopodium Minerals Pty Ltd as the lead EPCM contractor for the project.

Sila, a Burkinabé company, will initially have a contract scope that covers the mining of the Off-Channel Reservoir (OCR) pit, as well as the upfront establishment of mine site services (maintenance workshops, wash bays, warehouse, ablutions and accommodations, offices, and communications), the clearing and grubbing of the OCR footprint including topsoil relocation, as well as pit dewatering and haul road maintenance.

Orezone said mining of the OCR is an important milestone given that the pit will serve as the main water storage facility during operations.

“The mobilisation of Sila will ensure that the OCR and its related infrastructure will be ready well in advance of the onset of the 2022 rainy season,” the company explained.

Orezone says it is working in partnership with Sila to finalise certain key terms under the long-term mining contract.

Patrick Downey, President and CEO, said: “With the project financing now in place, we are rapidly advancing the engineering, procurement, and construction of the project. The early award of the mining contract will allow our project to remain on schedule.

“I am pleased that Sila, a local contractor, has been awarded this work which speaks to the depth and continued growth of the mining service industry in Burkina Faso. The company’s selection of Sila was made after a competitive tender and due diligence process including a review of safety and operational performance in free-dig oxide operations such as Bomboré. Sila has demonstrated an excellent track record in other similar Burkina Faso mining operations.”

He added: “The proposed mining fleet is brand new equipment and will be operated by Sila’s highly experienced senior operations and maintenance team.”

Since the recent appointment of Lycopodium in January as the EPCM contractor, the company says it has rapidly advanced engineering and procurement activities, and made significant progress on refining the project construction timeline. The company’s key procurement and site-based activities in the upcoming months will be focused on the following:

  • Pre-production mining to commence in March 2021;
  • Ball mill order (a critical long lead item) to be placed in March 2021;
  • Award of power plant contract in March 2021; and
  • Site-wide bulk earthworks to commence April 2021.

Orezone makes Bomboré headway with Lycopodium EPCM award

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.