Orezone Gold outlines 2026 production and cost outlook for its newly acquired Casa Berardi mine, highlighting a transitional phase with higher costs and planned exploration ramp-up.
- 2026 gold production guidance of 62,000–67,000 ounces
- All-in sustaining costs expected between US$2,600 and US$2,800 per ounce
- Sustaining capital expenditure budgeted at US$37–39 million
- 58,000 metres planned for diamond drilling to convert resources and explore
- Updated life-of-mine plan due in September 2026
Casa Berardi in Transition Mode for 2026
Orezone Gold Corporation (ASX:ORE) has laid out its production and cost guidance for the Casa Berardi gold mine for the remainder of 2026 following its acquisition in late March. The company anticipates a transitional year as it continues mining lower-grade underground ore while investing in waste stripping at the F160 pit to access higher-grade material later in the year and beyond. This strategy is expected to push all-in sustaining costs (AISC) higher in the short term, with Orezone forecasting AISC between US$2,600 and US$2,800 per ounce for the March-to-December period.
Gold production is guided at 62,000 to 67,000 ounces, with the lowest output expected in the third quarter due to waste stripping activities feeding lower-grade stockpiles. Production is projected to improve in the fourth quarter as higher-grade open pit ore becomes accessible.
Capital Spending Focuses on Underground Development and Growth
Orezone plans to invest US$37 to US$39 million in sustaining capital, targeting accelerated underground development, new mobile mining equipment, tailings lift infrastructure, and processing plant upgrades. Growth capital is budgeted at US$5 to US$6 million, primarily allocated to engineering, technical studies, and permitting to support future mine development. These investments underscore the company’s commitment to strengthening the operation for long-term value creation.
Exploration Drilling to Boost Resource Confidence and Expansion
The company intends to execute a substantial 58,000-metre diamond drilling program aimed at converting Inferred Mineral Resources to Indicated Resources through infill drilling, expanding underground ore zones down plunge, and testing new near-mine targets. Orezone currently operates five drill rigs on site and plans to ramp up exploration activity to sustain an annual drilling rate of 80,000 to 100,000 metres. This aggressive exploration agenda is designed to underpin both near-term mine planning and longer-term growth opportunities.
Life-of-Mine Update Scheduled for September
Orezone has signalled that an updated life-of-mine plan for Casa Berardi will be published in September 2026. This forthcoming plan is expected to detail the company’s long-term operating strategy, mine development roadmap, and exploration prospects, providing shareholders with a clearer picture of the asset’s future trajectory. The company emphasises that Casa Berardi remains a long-life asset in a Tier-1 jurisdiction, supported by substantial mineral endowment and extensive infrastructure.
Orezone’s President and CEO, Patrick Downey, highlighted the focus on integrating the operation and identifying performance enhancement opportunities since acquisition. He noted that while 2026 will be a transition year with elevated costs, the company expects unit costs and AISC to decline over time as higher grades and productivity gains materialise.
Bottom Line?
Casa Berardi’s 2026 guidance signals a deliberate transition period with elevated costs, setting the stage for a more efficient, higher-grade operation post-2026.
Questions in the middle?
- How will Orezone’s planned exploration drilling impact resource classification and mine life extensions?
- What operational challenges might arise from the ongoing waste stripping and transition to higher-grade ore?
- To what extent will the updated life-of-mine plan in September influence investor confidence and capital allocation?