Orezone Maps 14-Year Casa Berardi Plan Worth US$1.05B NPV at Base Gold
Key Takeaways
- The Casa Berardi Life-of-Mine Plan outlines 1,630,000 ounces of gold production across 14 years from 2027 to 2040, with an after-tax NPV5% of US$1.05 billion at base case consensus gold prices.
- At current spot gold of US$4,350 per ounce, the after-tax NPV rises to US$1.43 billion and total life-of-mine free cash flow reaches US$2.011 billion.
- The sustained production phase from 2030 to 2038 targets average annual output of 132,000 ounces at an AISC of US$1,776 per ounce — the nine-year core of the asset's value case.
- The plan is classified as a Preliminary Economic Assessment (PEA) because it incorporates Inferred Mineral Resources, meaning there is no certainty the plan will be realised as presented — a material distinction for ASX investors.
- The mill is already running above LOM plan assumptions at approximately 4,025 tpd versus the modelled 3,835 tpd, and exploration drilling is ramping toward 100,000 metres per annum, with multiple upside pathways not yet captured in the plan.
Casa Berardi life-of-mine plan delivers 14-year production profile and US$1.05 billion NPV
Orezone Gold Corporation has released the inaugural life-of-mine (LOM) plan for its recently acquired Casa Berardi gold mine in Quebec, Canada. The plan outlines a 14-year continuous operating profile from 2027 to 2040, with total gold production of 1,630,000 ounces and an after-tax NPV5% of US$1.05 billion at base case consensus gold prices.
At spot gold of US$4,350 per ounce (based on the 11 September 2026 closing price), the after-tax NPV5% increases to US$1.43 billion, with after-tax free cash flow (FCF, a non-IFRS measure) over the life of mine totalling US$2.011 billion.
Patrick Downey, President and CEO
“The release of the Casa Berardi Life-of-Mine plan is a significant milestone for Orezone… Its transformational acquisition positions the Company as an established multi-asset producer, with a significant and fully funded growth profile.”
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Underground and open pit operations — the path to 132,000 ounces per year
Underground and open pit operations
The LOM plan combines underground mining at the West Mine (active throughout 2027–2038) and the East Mine (expected to recommence operations in 2029), with open pit mining across four pits: F134, F160, Principal, and WMCP. All ore is processed at the Casa Berardi mill, with annual throughput of 1.4 million tonnes per annum (Mtpa).
Key processing parameters across the life of mine include:
- Underground head grade: 4.64 g/t; open pit head grade: 2.32 g/t
- Life-of-mine average metallurgical recovery: 83.9%
- Mill nameplate capacity: 3,730 tpd; current operating rate: approximately 4,025 tpd (above the LOM assumption of 3,835 tpd); peak daily rate achieved: 4,775 tpd
The production schedule progresses through two distinct phases:
- Ramp-up phase (2027–2029): Investment in new underground equipment, lateral development, and open pit waste stripping. Production in these years ranges from approximately 85,000 oz (2027) to 106,000 oz (2029) as infrastructure is established and mining rates increase.
- Sustained production phase (2030–2038): Average annual production of 132,000 oz at an All-In Sustaining Cost (AISC, a non-IFRS measure) of US$1,776/oz. This nine-year window represents the value inflection point for the asset.
Capital expenditure and cost structure
The LOM plan carries a total capital expenditure of US$961.6 million, comprising US$638 million in sustaining capital and US$324 million in non-sustaining capital spread across the mine life.
Cash costs over the life of mine average US$1,485/oz, with AISC of US$1,877/oz — both non-IFRS measures. The table below summarises the key LOM economics:
| Metric | Unit | LOM Total |
|---|---|---|
| Gold Produced | oz | 1,630,395 |
| Average Annual Production | oz/yr | 116,457 |
| AISC (non-IFRS) | US$/oz | 1,877 |
| After-Tax FCF (non-IFRS) | US$M | 1,443 |
| After-Tax NPV5% | US$M | 1,046 |
What is a life-of-mine plan — and why does it matter for gold investors?
A Life-of-Mine (LOM) plan is a detailed technical and financial model that maps out how a mine will be operated from its current state to closure. It covers production volumes, operating costs, capital expenditure, and projected cash flows for every year of the mine’s anticipated life. For investors, it is one of the most important de-risking milestones a mining company can publish — it transforms an asset from a geological promise into a quantified, year-by-year financial roadmap.
The NPV5% figure (net present value discounted at 5% per year) tells you what all future cash flows from the mine are worth in today’s dollars, after accounting for the time value of money. A higher gold price assumption naturally produces a higher NPV — which is why the base case figure of US$1.05 billion rises to US$1.43 billion at current spot gold prices.
Investors should note an important distinction: this LOM plan is classified as a Preliminary Economic Assessment (PEA) because it incorporates Inferred Mineral Resources. Inferred resources carry more geological uncertainty than Measured or Indicated resources and are generally considered too speculative to be classified as Mineral Reserves. This means the plan carries upside potential as resources are upgraded over time, but investors should understand that there is no certainty the LOM plan will be realised as presented.
JORC cautionary note for ASX investors: The Casa Berardi Mineral Resource estimate is a foreign estimate prepared under Canadian National Instrument 43-101 (NI 43-101) standards. A Competent Person has not yet done sufficient work to classify the foreign estimate as a Mineral Resource in accordance with the JORC Code, and it is uncertain that, following evaluation and further exploration work, the foreign estimate will be able to be reported as a Mineral Resource under the JORC Code. This is a regulatory distinction that ASX investors should be aware of, though Orezone considers the estimate material and reliable given Casa Berardi’s extensive operating history dating to the late 1980s.
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Exploration upside and optimisation — the case for a higher baseline
The LOM plan explicitly frames itself as a baseline rather than a ceiling. Orezone has identified multiple documented pathways that could improve on the plan’s production profile and cost structure over time. These opportunities are not included in the LOM plan, and there is no assurance that anticipated benefits will be realised.
Key enhancement opportunities include:
- Exploration drilling is already ramping up towards 100,000 metres per annum, targeting resource expansion across multiple fronts
- The West Mine historically achieved average annual production of approximately 141,000 oz at a head grade of approximately 7.0 g/t, compared to the 4.64 g/t LOM assumption — exploration could potentially replicate this higher-grade performance
- The East Mine, expected to reopen in 2029, could add a second underground production front to the mine plan
- The north side of the Casa Berardi Fault has seen limited exploration drilling at depth, and is considered by the company to be highly prospective
- The exploration tenements cover 37 kilometres of strike along the Casa Berardi Fault Zone, with limited systematic exploration conducted to date
- The mill is already running above the LOM plan assumption (approximately 4,025 tpd actual versus 3,835 tpd modelled), which could support incrementally higher annual gold production
- Drill results from the 19 May 2026 news release, and all subsequent drilling, are not yet included in the current resource estimate — meaning potential upside has not yet been captured in the plan
Looking further ahead, Orezone has also indicated it expects to release a Preliminary Economic Assessment on its Heva-Hosco development project, located along the Cadillac Larder-Lake Break in Quebec, in the fourth quarter — a near-term catalyst worth monitoring.
As Downey noted in the announcement, the company views the LOM plan as “an excellent baseline” and expects that “ongoing optimization and exploration, we fully expect to further increase the production profile and lower costs.” With the mill already demonstrating throughput above plan assumptions and early exploration results highlighting near-term potential for higher-grade underground zones, the current LOM plan may prove to be a conservative starting point for what Casa Berardi can deliver under Orezone’s ownership.
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