Orezone and WAF Sign MOU to Investigate Synergies and Reduce Costs

Orezone Gold Corporation (Orezone) and West African Resources (WAF) have jointly announced their intention to establish a memorandum of understanding (MOU) aimed at exploring potential synergies across their respective trio of mining projects.

This collaboration holds the potential to unlock substantial value for all stakeholders involved. Notably, Orezone's Bomboré and WAF's Sanbrado operational sites are situated in close proximity, merely 14 km apart, and they boast substantial M&I Mineral Resources of 5.1 Moz and 3.0 Moz, respectively.

Furthermore, WAF is actively progressing with the development of the Kiaka project, which holds M&I Mineral Resources of 5.9 Moz and 1.8 Moz Inferred, situated 45 km to the south of Sanbrado. Gold production at Kiaka is scheduled to commence in 2025.

These two operating mines, along with their development initiatives and exploration rights, encompass an extensive and contiguous area spanning over 1,800 km² and encompassing 100 km of highly promising greenstone belts and geological structures.

The MOU between these two autonomous gold mining companies operating in Burkina Faso is anticipated to yield substantial cost savings throughout the life span of their individual mining operations, with a particular focus on the following key areas:

• Grid Power: Orezone is currently in the advanced stages of connecting the Bomboré mine to the national power grid, and the Kiaka process plant is also planning to draw its power from the same grid. Both companies have reached an agreement to explore the possibility of extending the grid power spur line from Bomboré to Sanbrado. Such an extension has the potential to significantly reduce the processing expenses at the Sanbrado site.
• Thermal Back-up Power: By connecting both mines, Bomboré would have the opportunity to access Sanbrado's 24 MW HFO and LFO power plant as a backup power source whenever it becomes necessary to maintain operations.
• Renewable Energy: Both companies are committed to exploring the feasibility of establishing a centralized solar power facility. This shared solar power plant would serve to further reduce energy expenses at their respective operations.
• Procurement and Supply Chain: Leveraging their combined purchasing power, the companies will seek to drive down costs associated with procuring consumables, storage, and transportation.
• Common Spares: Both companies will conduct a comprehensive assessment to identify critical spare parts that can be shared between their operations.
• Community and CSR: The companies will collaborate on CSR, training, employment, and Livelihood Restoration Programs to maximize benefits for local communities. Initiatives such as youth employment programs, training centers, and skill development will be prioritized, alongside efforts in healthcare, agriculture management, and local environmental restoration.
• Security: Both companies will explore opportunities for cooperation and cost optimization in the realm of security.

The ongoing discussions between WAF and Orezone reflect a commonsense approach to reduce costs and optimize invested capital. We expect this cooperative approach will enable both companies to enhance returns to shareholders, as well as deliver on the long-term future of gold mining in this region of Burkina Faso.

Richard Hyde, Executive Chairman and CEO, West African Resources

“This MOU represents an effective way to generate long-term value from each of our assets in Burkina Faso with the active participation of our neighboring communities. With the broader industry continuing to face cost inflation, this MOU represents an important opportunity to further improve our cost structure and create further value for our shareholders. As Orezone and WAF look to advance these initiatives, we will continue to pursue the highest standards in safety, along with responsible and meaningful engagement with our employees, communities, and other stakeholders,” adds Patrick Downey, President and CEO of Orezone.