Thursday, 11th October 2007 (1540 views)

Orezone Resources has announced its intention to purchase the 60 per cent of interest in the Essakane gold project from its partner Gold Fields, allowing the company whole ownership of the Burkina Faso-based gold project.

Results from a definitive feasibility study and a further resource update last month indicate that the 60 per cent acquisition will add 1.6 million ounces of gold to Orezone's profile, in addition to 2.4 million ounces in measured and indicated gold resources and an additional 761,000 ounces in inferred resources.

The transaction will also raise Orezone's status in the gold production community from junior exploration company to intermediate producer, according to the company, raising its total holdings in the project by 150 per cent, according to the Associated Press.

Orezone estimates that total production on the Essakane gold project will reach 292,000 ounces of gold each year by 2010.

According to the terms of the agreement, Orezone will provide Gold Fields with $200 million (£98.14 million) in cash and company shares and will assume the title of operator of the project.

 

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