Orezone Gold's (ASX:ORE) life-of-mine plan for the Casa Berardi operation in Canada highlights stronger production potential and lower operating costs than previously forecast, Euroz Hartleys said in a Friday note.

The plan forecasts a 14-year mine life until 2040 and total gold production of 1.63 million ounces, with average production of 116,000 ounces per annum at an all-in sustaining cost of $1,877 per ounce over the mine life. Production could increase to an average of 132,000 ounces per year at $1,776 per ounce all-in sustaining cost during 2030 to 2038 as underground mining rates ramp up.

The updated plan validates the acquisition of the operation, delivering an after-tax net present value at a 5% discount rate of $1.05 billion versus maximum acquisition consideration of US$593m,

before factoring in exploration or operational upside. The brokerage's latest Casa Berardi net present value at a 10% discount rate valuation is around AU$1.12 billion, up from AU$968 million earlier.

The investment firm maintained its speculative buy recommendation and increased its price target on Orezone to AU$4.55 per share from AU$4.25 per share.