Orezone Gold (TSX: ORE) has released a 14 year life of mine plan for its recently acquired Casa Berardi gold mine in Quebec. The plan puts the mine’s after-tax net present value at US$1.05 billion, using a 5% discount rate.
The base case uses September 2026 consensus pricing, with gold at US$4,632 per ounce in 2027, US$4,518 in 2028 and US$4,378 in 2029, then US$3,570 from 2030 onward. It generates US$1.44 billion in after-tax free cash flow.
At a flat spot price of US$4,350 per ounce, the after-tax NPV rises to US$1.43 billion and free cash flow climbs to US$2.01 billion. Both cases account for Franco-Nevada’s gold stream on the mine.
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The plan calls for 1.63 million ounces of gold production between 2027 and 2040, an average of 116,000 ounces a year. After a ramp-up period of new equipment, underground development and waste stripping, output climbs to 132,000 ounces a year from 2030 through 2038.
Casa Berardi will process 19.5 million tonnes at roughly 1.4 million tonnes per annum, with underground ore expected to grade 4.64 g/t gold and open pit material grading 2.32 g/t. Overall recovery is set at 83.9%. Underground mining runs for 12 years. The active West Mine operates through 2038, and the East Mine, idle since 2023, restarts in 2029. Four open pits fill out the schedule to 2040.
Sustaining capital totals US$638 million, with another US$324 million in non-sustaining capital. Cash costs are estimated at US$1,485 per ounce. All-in sustaining costs (AISC) come in at US$1,877 per ounce and drop to US$1,776 per ounce from 2030 to 2038.
“The Company views this Life-of-Mine plan as an excellent baseline, which with ongoing optimization and exploration, we fully expect to further increase the production profile and lower costs,” said President and CEO Patrick Downey.
The mill is already beating the plan. It has averaged about 4,025 tonnes per day since Orezone took over, compared with the 3,835 tonnes per day the plan assumes. Drilling is also ramping up toward 100,000 metres per year.
Orezone Gold last traded at $2.79 on the TSX.
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