Orezone Gold Boosts Production and Growth with Casa Berardi Mine Acquisition

Casa Berardi Acquisition Transforms Orezone’s Profile

Orezone Gold Corporation (ASX:ORE) has taken a major leap forward by completing its acquisition of the Casa Berardi gold mine in Quebec, Canada, on March 25, 2026. This strategic move instantly diversifies Orezone’s production base beyond its flagship Bomboré mine in Burkina Faso, positioning the company as a multi-mine mid-tier gold producer. The deal involved a $160 million cash payment, over 65 million shares issued to Hecla Mining Company, $80 million in deferred payments, and a contingent consideration package potentially worth $241 million, linked to future gold prices and production milestones.

The acquisition is backed by a $100 million gold stream financing from Franco-Nevada Corporation, which provides upfront capital in exchange for fixed and variable gold deliveries from Casa Berardi through 2030 and beyond. This financing structure alleviates immediate cash flow pressures while aligning Orezone’s interests with gold price performance.

Casa Berardi, a historically prolific underground and open-pit operation, has produced over 3.2 million ounces since 1988. The mine’s existing infrastructure, including a 1.4 million tonnes per annum mill, and its substantial resource base underpin Orezone’s plans to optimize operations and ramp up underground production. The company expects to release detailed 2026 guidance for Casa Berardi in June following a comprehensive review of mine plans and capital priorities.

Q1 2026 Production and Financial Performance

Orezone’s first quarter results reflect the initial contribution from Casa Berardi alongside continued growth at Bomboré. Total gold production rose 35% year-on-year to 38,789 ounces, with Bomboré delivering 37,563 ounces and Casa Berardi adding 1,226 ounces. Gold sales reached 37,962 ounces at an average realised price of $4,887 per ounce, more than 70% higher than Q1 2025, driving revenue to $185.9 million.

Adjusted EBITDA surged to $94.2 million, more than doubling the prior year’s $44.2 million, while adjusted earnings attributable to Orezone shareholders reached $42.9 million, translating to $0.07 per share. Operating cash flow before working capital changes was a robust $189.4 million, boosted by the Franco-Nevada gold stream deposit. The company ended the quarter with $48.3 million in cash and bullion inventory valued at $19.7 million.

However, Bomboré’s production was hampered in Q1 by supply chain disruptions linked to new government regulations affecting the transport of emulsion explosives. This forced a temporary adjustment to the mine plan, delaying access to higher-grade hard rock ore and resulting in a 15% decline in head grade. Orezone has since secured a second emulsion supplier to stabilise deliveries and expects production and grades to improve in subsequent quarters.

The Bomboré Mine’s all-in sustaining costs (AISC) rose to $2,245 per ounce from $1,415 in Q1 2025, driven by higher royalties reflecting the elevated gold price, increased strip ratio, and the processing of more challenging hard rock ore. Growth capital expenditures of $13.7 million in Q1 were directed towards the Hard Rock Expansion Stage 2A, tailings storage facility expansion, and community resettlement initiatives.

Exploration Upside at Casa Berardi Supported by Strong Drill Results

Orezone has swiftly reactivated exploration at Casa Berardi, releasing an encouraging first tranche of drill results from the F160 and F134 zones. Highlights include intercepts such as 16.10 grams per tonne (g/t) gold over 6.7 metres and 7.20 g/t over 14.9 metres, confirming near-surface mineralisation with down-plunge continuity that supports potential pit expansions and future underground mining.

The company plans to ramp up drilling to a sustainable 80,000 to 100,000 metres per year, targeting extensions of known zones and testing new frontiers like the Gap Zone and the 118N Zone, which presents significant exploration upside north of the Casa Berardi fault. Mobilisation of an underground mining contractor aims to accelerate development and establish drill stations for deeper targeting.

These exploration efforts dovetail with Orezone’s broader strategy to unlock value through sustained investment in the mine’s resource base and infrastructure, aiming to increase production rates and extend mine life. The initial drill results add tangible momentum to this vision, complementing the operational gains reported at Bomboré.

Growth Capital Projects Progressing at Bomboré

At Bomboré, Orezone continues to advance its hard rock expansion with Stage 1 declared commercially operational in January 2026, exceeding design throughput by 7%. Stage 2A components, including a rock breaker, thickener, and oxygen plant, are on track for completion in Q3 2026, aiming to boost plant reliability and recovery rates.

The tailings storage facility footprint expansion into Cell 2 nears completion, with embankment walls and liners essentially finished. The resettlement action plan is also progressing, with infrastructure works underway to support community relocations and enable year-round mining access to key pits.

Despite the emulsion supply hiccup impacting early 2026 production sequencing, the company reaffirmed its full-year Bomboré production guidance of 160,000 to 180,000 ounces at AISC between $2,100 and $2,300 per ounce, reflecting confidence in operational recovery and growth initiatives.

Orezone has also bolstered its executive team with new appointments including a Chief Operating Officer, Vice President of Exploration, and Vice President of Investor Relations, underscoring its commitment to unlocking value and enhancing market presence amid its expanded asset base.

These developments build on the company’s recent momentum including the Q1 2026 gold production jump and the hard rock expansion completion, setting the stage for a transformative year.