This photo was taken yesterday on the Santa Rosa property. The rig is in place and final assembly and rig testing will occur in a day or so.

A.G.M. Report

Oromin Offices July 14th

In attendance were Chet, Jim, Ian and David Mallo, as well as one analyst and three shareholders including me. There were 122 shareholders present by proxy and in person representing 22 million shares, or about 33% of the shares.

There will be several repeats of the presentations we saw today for groups of analysts and brokers over the next couple of days as scheduling problems prevented everyone being in the same room at the same time.

Jim dispensed with the formal parts of the meeting quickly, all motions passed as per the information circular.

The overview of the share capital was brief with just over 100 million shares issued and over $18 million in the treasury. Insiders and associates hold 25% as well as Iamgold becoming a minority shareholder with 17%.

Chet began with a short intro about the Birimian Terrane which includes Senegal and Mali. He noted that Mali has about 30 million ounces of gold over 30 years of exploration whereas Senegal has nearly 10 million ounces proved up in only the last 6 years.

We have 6 deposits, 4 of which contain 2.3 million ounces, 2 more unreported as yet with a further 11 targets to be evaluated and drilled.

David began the PowerPoint presentation, it was informal and discussion was encouraged. The room was full of floor to ceiling maps of drilling and annual satellite photos tracking progress at the project. We began talking about the Sabodala and finished with Santa Rosa.

The next phase of drilling is slated for 100,000 meters, which works out to around 500 more holes split between the core drills and the RC rigs. A lot of work as been done figuring out the complex structure at Sabodala in the last year. This work will help in the modeling and understanding of the deposits and aid in the search for yet-to-be discovered resources.

Golouma is the center of a growing mineralized zone, which includes Kerekounda to the north and stretches to Cloverleaf in the south. Drilling continues to find high grade zones within the complex.
Golouma is showing very nice grades at depth with several deep holes scheduled in the near future. The grades are increasing at depth with some very nice results coming from below the main Golouma structure. Underground mining is a possibility here with a high grade area that rivals Kerekounda in size. The next area of possible highgrade is the NE extention of Golouma south. I asked if the Golouma would merge into one big deposit and was told there were 4 holes drilled between kerekounda and the main Golouma deposit that showed good grades, but he couldn’t say if they were connected or if there is another deposit in between the two.

Kerekounda continues to show excellent grades and is wide open to depth and to the south where they have seen visible gold in trenches. Drilling continues to expand this exciting new deposit.

Kobokoto is a priority target with high grade veining. Could this be the next Kerekounda? Other priority targets are Kimemba and Mamakono. With Sabodala North looking very good, it lies North of the Maki Medina deposit (possible connection)? With Maki getting better to the North. This whole area could be connected since it is on trend with Niakifiri and Masato.

The basic overview of the whole property is that the roughly NE SW structures are cross cut by other structures some mineralized and some not giving an overall NE SW tend to the gold. Some are large lower grade deposits such as Masato and some are very high grade like Kerekounda. The geology is complex and the ground is covered with thick laterite in some areas, this cover could be obscuring even bigger finds yet to come.

The Pre Feasibility is well under way and is on target for next month. The detailed work Oromin and SRK have done should translate to a majority of the ounces in the first resource calculation being upgraded. The resource calculations will be upgraded in Q1 and include increased resource ounces as well as a reserve update.

MDL is now a producing mine with the mill blending oxides with sulphides to get a better (higher percentage of gold) recovery per ton. The oromin sulphide recovery is 88-93% with oxides around 95%. With MDL quickly using up the oxide component of their deposit they may go looking for other sorurces of oxides, Oromin has a comparitively large oxide component very near by at Masato.

Santa Rosa is very near to drilling as you can see form the photo. The rig is 90% assembled and final testing will happen in a day or so and we should spud soon after that. The target is shallow ~1300 m so drilling should only take about 10 days to total depth. If we hit on the first hole development of the field will be fast since pipelines run at the boundary of the property. When the size of the discovery is known the oil will be spun out as a dividend at a yet-to-be determined ratio.

I hope this gives those of you who couldn’t make it a good idea of what happened at the meeting. The feeling in the room was that we are on the eve of a lot of excitement in the weeks and months to come and I can attest that I am getting pretty excited too!

Warmest regards

caliche

July 14th, 2009
Categories: General . Author: admin