IKN

a plague o both your houses

Orezone (ORE.v) and SRK Toronto: Wowsers

I don’t think I’ve ever seen something like this before. These SRK people must be soiling underwear on the potential consequences. And surprise surprise, post-close Friday too:

TORONTO, Aug. 26, 2016 /CNW/ – SRK Consulting (Canada) Inc. is releasing the following in response
to Orezone Gold Corporation’s (“Orezone”) news release of August 22, 2016.
BACKGROUND
SRK Consulting (Canada) Inc.’s Ontario
office (“SRK”) was involved with the Bomboré gold project from 2008
through to early 2013. SRK initially audited two mineral resource models
generated by Orezone and subsequently generated two additional mineral
resource models based on progressively larger
exploration data sets. The first three mineral resource models were each
supported by published technical reports in November 2008, November
2010
and October 2012, respectively. The April 2013 mineral resource model prepared by SRK is the last reported mineral resource
model, and it is informed by exploration data to November 2012.  
The April 2013 model was used in a preliminary economic assessment for the Bomboré gold project completed in March 2014 and a
feasibility study completed in April 2015.
COMMENT
The August 22, 2016 news release stated that a new mineral resource model update is currently being completed and will be publically released in
September 2016. SRK
understands that considerable additional exploration data (including
57,258m of exploration drilling) has been generated by Orezone
subsequent to
November 2012. 
The new mineral resource model is not yet complete and SRK has not yet
been able to review any aspect of the model. In addition to the
application of a different dataset, it is anticipated that
the new mineral resource model will be based on updated geological
wireframes, updated variography, alternative estimation methodologies
and reporting / classification assumptions. For example, to
differentiate between gold mineralization and waste the 2013 model
applied a geology-based domaining strategy, compared to grade shells
that are reported to have been used in the new model.  It is
also expected that the application of revised metal prices, and the
exclusion of certain satellite deposits will contribute to a different
outcome to that of the April
2013
model.
SRK applied a rigorous QA/QC procedure for the 2013 mineral resource
model and looks forward to the opportunity to review and provide comment
on any differences that cannot be explained by new
data, alternative estimation methodologies and new assumptions.
ABOUT SRK CONSULTING

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