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Expansion of Gold Mine in Burkina Faso Ahead of Schedule
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The first pour there remains on track for Q4/25, noted a Ventum Capital Markets report.

Orezone Gold Corp.'s (ORE:TSX) hardrock expansion at the Bomboré gold mine in Burkina Faso is progressing ahead of schedule, reported Ventum Capital Markets analyst Alex Terentiew in an Oct. 25 research note.

"The expansion is well-positioned to hit its targeted first gold production in Q4/25, in line with our estimate," Terentiew wrote. "Reaffirming this progress further strengthens our confidence in Orezone's growth outlook and supports our positive view of the company."

Buy rating, 75% upside

Ventum reiterated its CA$1.40 per share target price on the Canadian company, trading now at about CA$0.80 per share.

From the current share price, the return to target is 75%.

Orezone remains a Buy.

Derisking of the timeline

Terentiew reviewed the progress that Orezone has made thus far on the Bomboré expansion.

As for site work, all of it is ahead of schedule. Major earthwork has been done. Preparations were made for arrival of construction equipment, offices and plant deliveries. Camps for construction teams have been upgraded.

The concrete installation was awarded, and mobilization scheduled for November, three months earlier than expected. Contracts for structural, mechanical and piping work will be awarded ahead of schedule in early 2025.

More than half of the needed procurement has been done. This included the purchase of a used 9 megawatt semi-autogenous grinding, or SAG, mill, which lowers overall costs and shortens timelines. The firm responsible for procurement and engineering, called Lycopodium, is surpassing expectations, and this is further derisking the timeline.

In terms of the mining fleet and explosives, already the first shipment of new trucks and excavators has arrived at the project site in Burkina Faso. Thus, operator training may start well ahead of the mining start. Additionally, the explosives magazine is nearly complete. Once done, explosives may be prepared and stored on the premises, thereby lowering the need for deliveries of premixed explosives, which are pricier.

Gold production outlook

The Bomboré expansion should increase yearly production by about 50%, noted Terentiew. As such, Ventum maintained its 2025 and 2026 gold production forecasts of 127,000 ounces (127 Koz) and 178 Koz, respectively.

In 2025, oxide grades are expected to be similar to those mined in 2024, the analyst noted. Oxide grades, however, will decline in 2026 and beyond and thus, will be replaced with higher-grades ounces from the sulphide plant. This shift should benefit production.

Ventum maintained its all-in sustaining cost estimates for 2025 and 2026, US$1,407 per ounce (US$1,407/oz) and US$1,293/oz, respectively.


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