Orezone cuts high grade beside Sadiola

Ottawa-based Orezone Resources (ORZ-T) is encouraged by positive surface sampling results from its 50-sq.-km Kantela property, which adjoins the producing Sadiola Hill gold mine in western Mali.

Composite grab samples from a 10-metre-wide northwesterly running quartz breccia zone returned values of between 15 and 48 grams gold per tonne. The samples were collected 75 metres apart on the edge of a 2-km-long gold-in-soil anomaly. A similar breccia zone has been mined at Sadiola.

Trenching and pitting in the same anomaly returned between 0.05 gram and 1 gram gold. The pits cut favourable saprolite, similar to the decarbonatized zone of the Sadiola mine. A 2,000-metre rotary air blast drill program will begin in two weeks.

Orezone wants to define sufficient tonnage for either a stand-alone economic resource or a satellite resource that can be hauled to the Sadiola mill.

The company is earning up to a 100% interest in Kantela by spending US$1.7 million. The property is subject to a 3% net smelter return royalty, which can be reduced to 1% for US$1 million. Teck (TEK-T) has the first right of refusal to enter a joint venture with Orezone while the first $300,000 is being spent at Kantela.

Kantela adjoins the Sadiola property on the south, about 15 km from the open pit. Sadiola is held by AngloGold (AU-N), Iamgold (IMG-T) and the Malian government.

On the Bondigui property in Burkina Faso, the company has uncovered a new, 4-km-long, gold-in-soil anomaly. Shallow pitting into saprolite returned between 0.5 gram and 4.5 grams gold.

“We are particularly keen to drill this target as it occurs at the intersection of the Intiedougou fault zone with the Tarkwain sediments, which host numerous major gold deposits throughout West Africa,” says Jeff Ackert, Orezone’s vice president of exploration. “The target is right where you would expect to find it and the pitting confirms that it is in place. Indications are that the gold mineralisation exhibits similarities to the Damang deposit in Ghana.”.

In fiscal 2000, the Damang mine in Ghana produced 347,000 oz. gold at an average cash cost of US$191 per oz. The mine is 90%-owned by Australia’s Ranger Minerals.

Orezone is earning up to a 100% interest in Bondigui.

About 20 km to the northeast, at the Intiedougou property, Australian-listed Delta Gold has elected to not continue with its earn-in option. Orezone now owns the property outright.

Delta had spent $600,000 on the property and surrounding area over the past 15 months. A 26-hole drilling program wrapped up in late May and was highlighted by a 22-metre interval running 11.4 grams gold.