Orezone Gold (TSX: ORE) has laid out production and cost guidance for the Casa Berardi mine in Quebec, its first full outlook for the asset since acquiring it from Hecla in late March.
The company expects Casa Berardi to produce between 62,000 and 67,000 ounces of gold over the period from March 25 to December 31, 2026. All-in sustaining costs are guided at US$2,600 to US$2,800 per ounce sold, a notably elevated figure that Orezone attributes to a deliberate transition year at the operation.
Much of that cost pressure stems from the plan for 2026. Orezone intends to keep mining more accessible lower-grade underground ore while completing additional waste stripping at the F160 pit, work designed to open up higher grades in the pit bottom and set up future cut-backs to extend the pit’s life.
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Production is expected to be weakest in the third quarter, when F160 mining concentrates on waste stripping and the mill leans on lower grade stockpiles. Output should recover in the fourth quarter as more higher grade open pit ore reaches the plant.
READ: Orezone Closes Casa Berardi Acquisition in Quebec For $352M
“Ongoing work since the acquisition has reinforced our view that Casa Berardi is a long-life asset in a Tier-1 jurisdiction,” said President and CEO Patrick Downey, pointing to the mine’s mineral endowment, existing infrastructure and exploration potential as the basis for longer-term value. He added that unit costs and AISC are expected to trend lower over time as grades and productivity improve.
Sustaining capital is pegged at US$37 to US$39 million, directed toward accelerated underground development, new mobile mining equipment, a tailings lift and process plant upgrades. A further US$5 to US$6 million in growth capital covers engineering, technical studies and permitting.
The guidance follows a first quarter in which Orezone produced 38,789 ounces on a consolidated basis, the bulk of it from its Bomboré mine in West Africa. Casa Berardi contributed just 1,226 ounces, reflecting only five days of ownership.
Exploration is a central piece of the plan, with 58,000 metres of diamond drilling slated to convert inferred resources, extend known zones down plunge and test near-mine targets. Five rigs are turning on site, and the company aims to reach a sustained annual pace of 80,000 to 100,000 metres. An updated life of mine plan is due in September.
Orezone Gold last traded at $2.53 on the TSX.
