Orezone tables production, cost guidance for Quebec mine

Orezone Gold Corp. [ORE-TSX, ORZCF-OTCQX, ORE-ASX] has released its production and cost guidance for its recently acquired Casa Berardi gold mine in Quebec. It said the guidance reflects the company’s 2026 operating plans for mine development subsequent to its acquisition earlier this year.

Back in March, 2026, Orezone said it had completed to purchase of 100% ownership of the operating Casa Berardi gold mine and a portfolio of exploration properties all located on Quebec form Hecla Mining Co. [HL-NYSE]. As part of the transaction’s closing terms, Hecla received $160 million in cash and approximately 65.8 million common shares of Orezone (worth $112 million and equivalent to a 9.9% interest), while retaining the right to receive up to an additional $321 million in deferred and contingent cash payments.

Orezone Gold is an emerging intermediate gold producer with operations in Canada and West Africa. At the time of the purchase, the newly acquired Casa Berardi mine had produced over 3.2 million ounces of gold.

“The combination of Casa Berardi and Bombore [mine in West Africa] creates a multi-asset platform with strong production and cash flow, positioning Orezone for near-term growth and long-term value creation,’’ the company said. “Casa Berardi’s established operating history, robust resource and reserve base and substantial exploration upside across as 37-kilometre mineralized corridor, provide a foundation for sustained growth,’’ it said.

As of December 31, 2024, Casa Berardi contained proven and probable reserves of 1.3 million ounces of gold (14.4 million tonnes at grade 2.79g/t gold), plus a measured and indicated resource of 0.9 million ounces (4.7 million tonnes at 5.92 g/t gold), plus an inferred resource of 0.5 million ounces (2.4 million tonnes at 6.01 g/t gold).

In its latest update, Orezone said it expects Casa Berardi to produce 62,000 to 67,000 ounces of gold this year at an all-in-sustaining cost (AISC) of US$2,600 to US$2,800 an ounce. Sustaining capital is pegged at US$37-US$39 million.

“Ongoing work since the acquisition has reinforced our view that Casa Berardi is a long-life asset in a Tier-1 jurisdiction,’’ said Orezone President and CEO Patrick Downey.  “It’s substantial mineral endowment, extensive existing infrastructure and significant exploration upside provide a strong platform for long-term value creation.’’

Downey went on to say that 2026 will be a transition year for the operation as the company continues to mine readily accessible lower-grade underground ore while completing additional waste stripping in the F160 pit to improve access to higher grades in the pit bottom and prepare for pit cut-backs to extend the pit life. “These investments will result in a higher average AISC for the remainder of 2026,’’ he said. “Over the longer term, we expect unit costs and AISC to trend lower, as improved grades and productivity are realized through accelerated underground development, new mining equipment and a significantly expanded definition drilling program.’’

On Tuesday, Orezone shares eased 2.7% or $0.07 to $2.46. The shares trade in a 52-week range of $2.98 and $1.05.