Orezone Gold (TSX: ORE) poured 58,566 ounces of gold in the second quarter, up 51% from the prior three months while marking the company’s first full quarter as a two mine producer.
Most of that increase came from Casa Berardi in Quebec, which was acquired at the end of March. The mine milled 364,284 tonnes at a head grade of 2.01 g/t gold in the second quarter to produce 20,503 ounces. Throughput averaged slightly above 4,000 tonnes per day, ahead of the 3,900 tonnes per day plan, which Orezone credits to ongoing mill improvements.
Bomboré in Burkina Faso turned out 38,063 ounces, up marginally from 37,563 ounces in the first quarter. The operation processed 2,484,023 tonnes at 0.55 g/t gold, a slight step down in grade from 0.57 g/t in Q1. Both the oxide and hard rock circuits ran above nameplate design, with recoveries described only as being in line with expectations.
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Consolidated sales reached 60,654 ounces at an average realized price of US$4,400 per ounce..
“The second quarter marked Orezone’s first full quarter as a multi-mine producer following the acquisition of Casa Berardi, with both operations performing in line with our expectations,” said president and chief executive Patrick Downey.
Guidance for the year was reaffirmed. Casa Berardi is expected to deliver 62,000 to 67,000 ounces between the acquisition date and year end at all-in sustaining costs of US$2,600 to US$2,800 per ounce sold, with the weakest quarter still ahead as waste stripping at the F160 pit pushes the mill onto lower grade stockpiles through the third quarter. Bomboré is likewise back end weighted as higher grade hard rock ore from the P17 pit comes into the mix.
One complication has surfaced however, with a wildfire that started roughly 12 kilometres southwest of Casa Berardi on July 10 prompting a voluntary suspension of operations that remains in effect. Orezone at this time expects to restart within days and is expecting no impact on its production guidance.
Orezone Gold last traded at $2.28 on the TSX.
