Orezone cuts new gold at Essakan

Drilling by Orezone Resources (ORZ-T) has encountered gold mineralization on the first two of 15 regional targets tested under an ongoing 18,000-metre drill program on the Essakan project area in Burkina Faso, West Africa.

The rotary-air-blast (RAB) drilling targeted the Soka and Fala gold-in soil anomalies.

Orezone tested most of the Soka target by sinking 1,804 metres worth of drilling in 45 holes along three 400-metre fences, 250 metres apart. Highlights include the following:

• Hole SRB436 36 metres grading 0.65 gram gold per tonne, including 8 metres of 2.12 grams gold near the top of the hole.
• Hole SRB435 13 metres running 1.24 grams, including 6 metres of 2.44 grams beginning at a depth of 28 downhole.
• Hole 441 — 20m averaging 0.93 gram gold, including 10 metres of 1.53 grams.

Hole 434 cut 8 metres (beginning at 40 metres below surface the deepest intersection) grading 0.35 grams gold. Orezone believes the intersection represents the zone at depth. Mineralization was also intersected on a RAB fence further west, suggesting a bedrock source for over 250 metres of strike length.

Orezone says one of the three drill fences failed to encounter mineralization, as it did not extend far enough to the north. The Soka target is situated 12 km southeast of the main zone at Essakan.

Some 7 km east of the main zone, Orezone punched 98 holes (for 1,796 metres) into the Fala target. The target represents the strike extension of the main Fala prospect and pit, an altered and sheared mafic intrusive body that previously returned 3 grams of gold over 18 metres.

Results from the first 28 holes indicate widespread mineralization north of the main pit. Hole 475 returned 9 metres running 2.03 grams gold and hole 477 encountered 10 metres of 1.43 grams gold.

The results from the balance of the holes at Fala are expected shortly; those from the Gossey, Korezeina and Taradat targets will follow thereafter.

RC drilling at Fala and Soka will recommence within 2 weeks.

Former operator BHP, now BHP Billiton (BHP-N), outlined a resource of about 20 million tonnes grading 2 grams gold per tonne at Essakan.

Gold Fields can earn a half-interest the 1,450-sq.-km project by spending US$8 million; its can boost its stake to 60% by completing a bankable feasibility study.

Meanwhile on the Sega project, Orezone has drilled half of the planned 7,000 metres worth reverse-circulation drilling program. Results are expected in a week. Once drilling wraps up at Sega, the drill rig will head to the Bondi project where drilling will focus on infilling the recently discovered North zone, an 800-metre gold mineralized zone lying in a 4-km gold in soil anomaly. Previous near-surface reverse-circulation drilling cut 3.8 grams gold across 42 metres. Drilling will also target five targets similar to the North zone.

Orezone hopes decide whether to advance to prefeasibility studies at Sega and Bondi in early 2004.

Shares in Orezone were a dime, or 7.4% of value, lower at $1.25 in late afternoon trading following the news on Nov. 6.