VANCOUVER, BC, Sept. 1, 2021 /PRNewswire/ - Orea Mining Corp.
("Orea") (TSX: OREA) (OTCQX: OREAF) (FSE: 3CG) is pleased
to announce an optimised project design with a remarkable reduction
in the environmental impact of the Montagne d'Or Gold Project,
located in French Guiana,
France. In response to the public
debate held in 2018, the Montagne d'Or joint venture (owned 44.99%
by Orea and 55.01% by operator Nord
Gold plc) (the "JV") has selected a new project
design based on Best Available Techniques ("BAT") resulting in a
32% reduction in surface footprint and an 80% reduction in
estimated total equivalent C02 emissions ("TECO2").
Rock Lefrançois, President and CEO of Orea,
commented "The JV's success in optimizing the design of
the Montagne d'Or mine, significantly reducing its environmental
impact, is the culmination of over two years of additional
technical and environmental studies in response to public
consultations". He added, "This is undoubtedly a pivotal
step for the acceptability and development of an exceptional gold
deposit."
The JV completed a comprehensive analysis of the initial
Bankable Feasibility Study ("BFS") project design, taking numerous
alternatives into consideration before selecting the option that
best addressed the concerns brought forth by the public debate. The
alternative designs were scored on environmental, technical and
economic criteria with weighting factors of 60, 20 and 20,
respectively. The option with the highest score was chosen for the
new project design.
The new project design takes into account all environmental and
safety requirements and is a testament to the JV's commitment
to moving forward with a project that adheres to the highest
standards of responsible mining. The significant reduction in
environmental impact was mainly driven by an alternate power
generation solution.
Project Modification Highlights:
- Power will be generated by an on-site hybrid power plant
capable of 80% solar-based energy resulting in a reduction in
estimated total equivalent C02 emissions (TECO2) of
469,000 tonnes per year.
- The hybrid power plant will reduce the surface footprint of the
project, and consequently, reduce the total equivalent
C02 emissions (TECO2) by an additional 41,600 tonnes per
year.
- The Tailings Storage Facility ("TSF") was optimised for safety
and durability.
- Two sections of the 120-kilometer access road were redesigned
in order to bypass the town of Saint-Laurent-du-Maroni and improve road
safety and facilitate heavy vehicle traffic while complying with
environmental requirements. The modifications will also shorten the
distance to the mine site.
- Quarry sites exclusive to the mining project will be developed
to meet the heavy demands for construction material and project
timelines and reduce the environmental impact related to the
transport of material.
- The project's occupancy of the forest land has been
significantly reduced. The total land impacted has been reduced by
32% compared to the initial project, notably a 44% reduction of
impacted mature forests.
Power Generation
The initial project provided for the connection to the public
power grid and the JV assumed all costs of construction of a
106-kilometer 90 kV overhead power line between the town of
Saint-Laurent-du-Maroni and the
mine site.
In consideration of the difficulty of the public power grid in
meeting local electricity needs and the concern expressed during
the public debate on the suitability of connecting the mine site to
the grid, the JV gave priority to on-site renewable energy
production and abandoned the construction of the power line, which
makes it also possible to significantly reduce the environmental
impacts linked, in particular, to land clearing.
The multicriteria analysis compared the initial option of
connecting the mine site to the public power grid and on-site power
generation from a hybrid solar/diesel power plant with lithium-ion
battery storage capacity. It was also compared to on-site diesel
power plant, biomass plant and solar panels with battery storage.
The selected hybrid solution developed is attributable to major
technical developments in renewable energy production and energy
storage which allows for 80% solar-based energy production and 20%
energy production from diesel-powered generators to ensure the
security of constant power supply. As a result, the estimated total
equivalent C02 emissions (TECO2) will be reduced by
469,000 tonnes per year, a reduction of 93% compared to sourcing
from the power grid.
The selected site for the solar panel park is located along the
access road on already deforested land, reducing the surface
footprint. The hybrid power plant will require 70% less land
clearing than that of a connection by power line and reduces
estimated total equivalent C02 emissions (TECO2) by an
additional 41,600 tonnes per year, a reduction of 47% compared to
the construction of a power line.
Tailing Storage Facility (TSF)
The JV undertook new technical studies in order to review and
complete the initial design of the TSF in consideration of the
concerns raised during the public debate related to the risks of
dam rupture associated climatic hazards. The tailings dams will be
built sequentially in parallel with mining and planned to be raised
in 4 phases.
The JV selected the safest construction method by detailing the
initial TSF design with BAT. The TSF will be built by the
downstream raising method, namely that its rise in height will be
made by means of shoulders made from the downstream of the
facility. Unlike the other two methods commonly encountered in the
construction of tailings impoundments (upstream method and central
axis method), the downstream method does not involve consolidated
tailings in the overall stability of the structure. The safety of
the structure is thus clearly dissociated from the mechanical
characteristics of the processing residues to be stored and their
evolution over time, which constitutes a strong point for the
durability of the structure. The downstream method and the improved
design provide a more stable configuration especially with regard
to seismic risk and climatic hazards by reducing the overall height
and increasing the strength of the dams.
About Montagne d'Or
Montagne d'Or is a permitting-stage open pit gold deposit that
hosts Measured Mineral Resources of 10.3 Mt at 1.804 g/t (600,000
oz), Indicated Mineral Resources of 74.8 Mt at 1.350 g/t (3.25 Moz)
and additional Inferred Mineral Resources of 20.2 Mt at 1.48 g/t
gold (960,000 oz), prepared in accordance with the requirements of
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101"). The Mineral Resources are
confined within a pit shell defined by a gold price of US$1,300/oz and a cut-off grade of 0.4 grams per
tonne gold. Mineral Reserves have also been defined with Proven
Mineral Reserves of 8.25 Mt at 1.99 g/t (530,000 oz) and Probable
Mineral Reserves of 45.87 Mt at 1.50 g/t (2.2 Moz). The Proven and
Probable Mineral Reserves were estimated using a gold price of
US$1,200 per ounce at varied cut-off
grades from 0.552 to 0.665 grams per tonne gold, dependent on
lithological rock types, economics and estimated metallurgical
recovery. Montagne d'Or ore can be readily processed to recover the
contained gold and silver values using unit operations considered
standard to the industry. It is a large and unique Paleoproterozoic
gold-rich volcanogenic sulfide deposit, presently drill-defined
over a strike extent of 2,300 meters and to a vertical depth of 200
to 250 meters.
Nord Gold plc ("Nordgold") first
earned a 50.01% interest in the project in September 2017 by spending US$30 million and completing a Bankable
Feasibility Study ("BFS"). Nordgold then acquired an
additional 5% interest pursuant to a share purchase agreement.
The 2017 BFS contemplates an open pit operation over a 12-year
mine life. Highlights of the BFS at a gold price of US$1,250 per ounce are as follows:
- After-tax Net Present Value (NPV) at a 5% discount rate:
US$370 million
- After-tax Internal Rate of Return (IRR): 18.7%
- After-tax payback period: 4.1 years
- Average annual gold production for years 1 to 10: 237,000
ounces
- Average gold grade for years 1 to 10: 1.73 grams per tonne
gold
- All-In Sustaining Cost (AISC) for years 1 to 10: US$749 per ounce of gold
- Initial capital expenditures (after surplus tax credit):
US$361 million
The BFS economic model gold price sensitivity shows that the
after-tax project NPV at a 5% discount rate changes approximately
US$1.24 million for every
US$1 change in gold price. At a gold
price of US$1,500 per ounce, the NPV
and IRR increase respectively to US$681
million and 26.7%.
Upside Potential of Montagne d'Or
There are several opportunities to increase the current Mineral
Reserves and mine life within the designed resource pit.
Approximately 2 million ounces of Mineral Resources are not
converted to Mineral Reserves, which include Inferred Mineral
Resources of 960,000 ounces of gold at average grade of 1.48 grams
per tonne gold. Infill drilling has the potential to convert some
of these Inferred Mineral Resources to higher resource
classification categories.
There is also the potential to lower the cut-off grade used for
the Mineral Reserve estimates, in consideration of the current
higher gold price, which could convert some additional Indicated
Mineral Resources into Mineral Reserves.
Limited drilling has been carried-out outside the resource pit.
The 2017 drilling program was successful in confirming gold
mineralization up to 400 meters on strike to the west (0.56 g/t
gold over 58.1 meters, including 2.32 g/t gold over 9.0 meters) and
at depth, 100 meters below the resource pit (0.92 g/t Au over 41.2
meters, including 1.92 g/t Au over 17.7 meters) (see Orea's news
release dated August 15, 2017).
For more information, see Orea's news release titled
"Columbus Gold Announces Positive Bankable Feasibility Study for
Montagne d'Or Gold Project, French
Guiana" dated March 20, 2017
and filed on SEDAR and the technical report prepared in accordance
with the requirements of NI 43-101 titled "NI 43-101 Technical
Report, Bankable Feasibility Study – Montagne d'Or Project,
French Guiana" by SRK Consulting
for Columbus Gold (now Orea Mining)
and Nordgold with an Effective Date of March
6, 2017, and a report date of April
28, 2017, which was filed on SEDAR on April 28, 2017.
Qualified Person
Rock Lefrançois, President & Chief Executive Officer of Orea
and Qualified Person under National Instrument 43-101, has reviewed
this news release and is responsible for the technical information
herein, including verification of the data disclosed.
About Orea Mining Corp.
Orea is a leading gold exploration and development company
operating in a prospective and underexplored segment of the Guiana
Shield, South America. Its mission
is to develop gold deposits with a reduced environmental footprint
using innovative technologies, upholding the highest international
standards for responsible mining. In French Guiana, Orea holds a major interest in
the world-class Montagne d'Or mine development project and is also
advancing the Maripa gold exploration project.
For more about Orea visit the company's website at
www.oreamining.com
ON BEHALF OF THE BOARD:
Rock Lefrançois
President & CEO
Forward-looking statements
Certain statements made herein, including statements relating
to matters that are not historical facts and statements of the
Company's beliefs, intentions and expectations about developments,
results and events which will or may occur in the future,
constitute "forward looking information" within the meaning of
applicable Canadian securities legislation ("forward-looking
statements"). Forward-looking statements relate to future events or
future performance, reflect current expectations or beliefs
regarding future events and are typically identified by words such
as "anticipate", "could", "should", "expect", "seek", "may",
"intend", "likely", "budget", "plan", "estimate", continue",
"forecast", "believe", "predict", "potential", "target", "would",
"might", "will", and similar words, expressions or phrases
(including negative variations) suggesting future outcomes or
statements regarding an outlook. These include, but are not limited
to, statements and information regarding: the Company's plans to
construct and develop the Montagne d'Or project, including
anticipated timing thereof; the satisfaction of regulatory
requirements in respect of the permitting and construction of the
Montagne d'Or project, including but not limited to, the submission
and processing of mine permit applications, the timing thereof; the
Company's ability to renew the concessions for the Montagne d'Or
project and to comply with the conditions thereof; economic
analysis for the Montagne d'Or project and related exploration
objectives and plans; the conversion of mineral resources into
mineral reserves and the conversion of inferred mineral resources
into higher resource classification categories; the upside
potential of the Montagne d'Or Project, if any; the Company's
objective of become an emerging gold producer; the acquisition of
exploration projects including terms of acquisition, exploration or
development plans, intentions to acquire additional exploration or
development interests and the implications thereof; the production
capacity and potential of future plant and equipment; future
exploration and mine plans, objectives and expectations and
corporate planning of the Company, future studies and environmental
impact statements and the timetable for completion and content
thereof and statements as to management's expectations with respect
to, among other things, the matters and activities contemplated in
this news release.
Forward-looking statements are made based upon certain
assumptions and other important factors that, if untrue, could
cause the actual results, performance or achievements of the
Company to be materially different from future results, performance
or achievements expressed or implied by such statements. Such
assumptions and analyses are made by the Company's management in
light of their experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors management believes are reasonable and appropriate in
the circumstances. All assumptions and analyses are those of
the Company's. There can be no assurance that such statements will
prove to be accurate. Forward-looking statements are based on
numerous assumptions regarding present and future business
strategies, local and global economic conditions, and the
environment in which the Company will operate in the future,
including compliance by the Company with regulatory and permitting
requirements applicable in French
Guiana, the sufficiency of Company's working capital; the
Company's ability to secure additional funding for the continued
exploration and development of its properties; the price of gold
and other metals; and the Company's ability to retain key
personnel. You are hence cautioned not to place undue reliance on
forward-looking statements.
Certain important factors that could cause actual results,
performance or achievements to differ materially from those in the
forward-looking statements include, among others, political and
economic risks in France,
political and economic risks in French
Guiana, risks related to the renewal applications for the
Concessions and the possible outcomes thereof; possible negative
outcomes of any appeals from the decision of the Administrative
Court of Cayenne in French Guiana;
regulatory risk including but not limited to unforeseen changes in
regulatory requirements, the Company's ability to enforce its
contractual and other legal rights to explore and exploit its
properties, risks related to exploration and development,
permitting and licensing risk, the estimation of mineral resources
and mineral reserves and related interpretations and assumptions,
future profitability of the Company, the ability to obtain
additional financing on a timely basis, the price of gold and
marketability thereof, government regulations including with
respect to taxes, royalties, land tenure and land use, title to the
Company's properties, currency exchange rates and fluctuations,
environmental risks, dilution resulting from the issuance of
additional securities of the Company, joint venture risks, reliance
on Nord Gold SE as operator of the Montagne d'Or project, the
availability of equipment, conflicts of interest, competition in
the mining industry, uninsured risks, market fluctuations, global
financial conditions, credit risk and risks arising from pandemics
and epidemics such as the COVID-19 pandemic. Although the Company
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. These statements, however, are subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking statements.
Readers are cautioned not to place undue reliance on
forward-looking statements. By their nature, forward-looking
statements involve numerous assumptions, inherent risks and
uncertainties, both general and specific, which contribute to the
possibility that the predicted outcomes will not occur. Events or
circumstances could cause the Company's actual results to differ
materially from those estimated or projected and expressed in, or
implied by, these forward-looking statements. Important factors
that could cause actual results to differ from these
forward-looking statements are included in the "Risk Factors"
section in Company's annual information form dated December 11, 2020 for the year ended September 30, 2020 ("AIF").
Readers are further cautioned that the list of factors
enumerated in the "Risk Factors" section of the AIF that may affect
future results is not exhaustive. When relying on the Company's
forward-looking statements and information to make decisions with
respect to the Company, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events. Furthermore, the forward-looking statements and
information contained herein are made as of the date of this
document and the Company does not undertake any obligation to
update or to revise any of the included forward-looking statements
or information, whether as a result of new information, future
events or otherwise, except as required by applicable law. The
forward-looking statements and information contained herein are
expressly qualified by this cautionary statement.
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SOURCE Orea Mining Corp.