Orezone cuts more gold at Sega (May 10, 2005)

Orezone Resources (OZN-T) has cut significant gold in the RZ structure on its Sega permit, 200 km north of Ouagadougou in northwestern Burkina Faso.

Four diamond drill holes tested the central zone. Two of them cut multiple gold zones from 4-24 metres in width; the highest grade was 15.2 grams gold over 18 metres. Another intercept graded 13.3 grams gold over 10.5 metres.

Reverse-circulation drilling tested four high-grade zones within the RZ structure. Two of these holes in the central zone intersected grades as high as 11 grams gold over a width of 16 metres and 13 grams gold per tonne over 6 metres. Another hole in this zone cut an intercept grading 49 grams gold per tonne over 3 metres. Ten holes cut from 1.2-8.9 grams gold over widths of 3-92 metres.

Drilling of the East zone was highlighted by one hole, which graded 8.2 grams gold over 11 metres. Six other holes cut 0.8-3.3 grams gold per tonne over 11-28 metres.

Holes in the south and west zones (nine in total) cut 0.8-5.6 grams gold per tonne over 6-16 metres.

Each hole was sampled at the very least at one-metre intervals down hole.

Three known zones are located within a 2.5 sq.-km area characterized by intense sericite alteration cut by stockwork quartz veins. The RZ structure has a strike length of at least 1.2 km.

Orezone holds a 100% interest in the Sega project, subject to a 3% net smelter royalty payable to IAMGOLD (IMG-T).

The company is going to begin base-line environmental studies and metallurgical testing at Sega, which it will incorporate into a scoping study along with economic parameters, so that the project may be developed quickly if the results continue to be positive.

Exploration activity is booming in west Africa. Orezone reports that it has had to wait routinely up to 20 days for core assay results and up to 45 days for reverse-circulation sample results. To alleviate this, two new assay labs are being set up in Burkina Faso, one directly at Orezone’s Essakan property. By July the turn-around time should be reduced to less than a week.

Gold Fields (GFI-N) is earning a 50% interest in the Essakan gold project, and can go on to earn a 60% interest by completing a bankable feasibility study. Orezone does not have to contribute funding to the project until the bankable feasibility study is complete.

Gold Fields has committed US$16.7 million to the project, which should advance Essakan to the completion of a pre-feasibility study.

Last August, the Essakan Main zone had an indicated resource of 49 million tonnes grading 1.5 grams gold per tonne. A new resource is being calculated incorporating drill results to the end of April. Definition drilling however is still underway.