Orezone Gold Moves Closer To Gaining Permits For Bombore Project

Orezone Gold Moves Closer to Gaining Permits for Bomboré ProjectOrezone Gold (TSX:ORE) has made further progress at its Bomboré gold project in Burkina Faso, announcing Wednesday that it's submitted a mining permit application to the government there. The application package includes both an environmental and social impact assessment (ESIA) and a relocation action plan (RAP) for local residents that will be affected by the development.

While the decision to submit the application follows the release of a positive feasibility study for Bomboré last month, Orezone's timing for the submission may be cause for some concern. According to Haywood Securities, the four- to eight-month review timeline for the application coincides with an upcoming national election, which could translate into delays in approval.

Nevertheless, Orezone doesn't seem concerned. Explaining the process, the company said the "four to eight month permitting process includes public hearings and a complete review by the Ministry of Mines and Energy (MEE) and the Ministry of Environment and Durable Development (MEDD) and the National Mining Commission (NMC), a technical panel. During a weekly cabinet session in parliament the recommendations of the NMC are reviewed and once approved, the permit is a Decree signed by the President of Burkina Faso, the Minister of Economy and Finances, the Minister of MEE and the Minister of MEDD."

Orezone expects to have all government permit approvals in hand by the first quarter of 2016, while Haywood anticipates the finalization of project permitting happening a little later, though likely in the first half of 2016.

Relocation action plan

As mentioned, part of the permit application submitted for Bomboré is a RAP, which Orezone has been working on with a local group of consultants. According to Wednesday's release, an inventory of the assets owned by people who will be affected by the project "has been reviewed and validated by those located in the northern half of the project that will be relocated during the initial phase of development."

The RAP committee, which includes representatives from all stakeholders, has been provided with an update of the ESIA as well as Orezone's proposed RAP compensation package. The company expects that final and formal agreements with the affected communities will be ratified by the committee by early Q3 2015, prior to the previously mentioned public hearings.

Money matters

In terms of financing Bomboré, Orezone said it is exploring many options that will allow it to completely fund the project by Q1 2016. Again, Haywood expects that if everything goes smoothly, the money will come into place in H1 2016. According to Orezone, initial discussions with lenders have indicated the project "will bear a significant level of debt" — up to $150 million — as a result of its robust economics.

Pre-production construction of Bomboré is expected to take about 21 months. That will include the time it takes to excavate the +3Mm3 Off Channel Reservoir that will be used for water storage and the time it takes to commission process plant equipment.

In the nearer future, Orezone is planning to provide the full details of its recently completed feasibility study in the form of a NI 43-101 technical report next month. At close of day Wednesday, the company's share price was up 1.49 percent, at C$0.34.

 

Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Orezone Gold is a client of the Investing News Network. This article is not paid-for content.

Related reading:

Orezone Gold Gains on Bomboré Feasibility Study Release

Orezone Gold CEO Ron Little Talks Gold in Burkina Faso

Orezone Gold Moves Closer to Gaining Permits for Bomboré Project from Gold Investing News