Orezone nabs Seguenega from Repadre Capital

Toronto-based Orezone Resources (ORZ-T) has added the Seguenega gold project in Burkina Faso to its exploration portfolio in West Africa.

In return for a 90% stake, Orezone issued 200,000 shares to Repadre Capital. Repadre also retains a 3% net smelter return royalty, though this can be reduced to 1% in exchange for US$2 million in cash.

Situated 130 km northwest of Ouagadougou, Seguenega covers a 1.2-km-long geochemical anomaly that remains open in all directions. A brief drill program by Placer Dome (PDG-T), which held an option last year, yielded up to 94 grams gold per tonne at shallow depths.

Orezone will attempt to outline a gold oxide deposit.

Among Orezone’s other properties in West Africa are Intiedougou in Burkina Faso, Kantela in Mail, and Shea in Ghana. Delta Gold of Australia recently bowed out of the Intiedougou project, whereas as Teck Cominco (TEK-T) has taken up options on the Kanteal and Shea projects.

Teck Cominco can earn 60% interests in both properties by backing Orezone’s existing options and funding exploration leading to a feasibility study at either one. At Kantela, Orezone must spend US$1.5 million and pay $200,000 over five years in return for a 100% interest.

At Kantela, Orezone is exploring a 2-km-long anomaly that trends northeasterly, similar to high-grade zones at the neighbouring Sadiola gold mine, which is owned by AngloGold (AU-N) and Iamgold (IMG-T). In the first nine months of this year, the mine cranked out 390,227 ounces from just over 4 million tonnes of ore, for an average headgrade of 3.3 grams gold per tonne.