3 tons of gold from MDL
Mineral Deposits Limited: Three Tonnes of Gold Produced at Sabodala
MELBOURNE, AUSTRALIA – (Marketwire – Aug. 25, 2009) – Mineral Deposits Limited (TSX:MDM)(ASX:MDL) is pleased to announce that the third tonne of gold, or 96,450 ounces, has been produced from its newly-commissioned Sabodala Gold Mine in Senegal. MDL remains on track to produce 160,000 ounces of gold in calendar 2009.
Equally significant, the treatment plant has processed its one millionth dry tonne of mineralised material at Sabodala. This milestone is equivalent to 2.3 Mtpa and exceeds the nameplate capacity of 2 Mtpa. The management team is to be congratulated on exceeding budget since the commencement of operations in March 2009.
To complement the operating performance, MDL’s Lost Time Injury Frequency Rate since start-up remains at zero. This excellent achievement demonstrates that site management has established a very safe operating environment. It reflects the team spirit on site and the company’s focus on operational safety and the well being of its local communities.
The Sabodala Gold Mine is operated through Sabodala Gold Operations SA (“SGO”) which is 10%-owned by the Government of the Republic of Senegal and 90%-owned by MDL. The Mine is located some 650 kilometres east of the capital Dakar within the Birimian belt and about 90 kilometres from major gold mines and discoveries in Mali. The Sabodala and Niakafiri deposits lie within SGO’s 33 square kilometre mining concession.
The information in this report that relates to Exploration Results is based on information compiled by MDL’s Mining Operations Manager, Bruce Van Brunt MSc Mining Engineering, who is a member of The Australasian Institute of Mining and Metallurgy and is also a registered professional geologist in the State of Washington, USA. Mr Van Brunt has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken. He is qualified as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and as defined in NI43-101. Mr Van Brunt has consented to the inclusion of this information in the form and context in which it appears in this report.
ABN 19 064 377 420
www.mineraldeposits.com.au
Caiche:
Glad to see you are still with us… It is very interesting that MDL as a larger market cap than OLE with 4-5 times the outstanding shares… Somthing seems off…
G1
A number of precious metal “experts” seem to believe price of gold will start a major move up shortly after labor day…..By major , I mean several hundred dollars per ounce…Just maybe , if they are correct AND , if the pf is good AND , if pf is actually released in Sept. , we could see some good movement up in Ole share price within the next 30 days……Add to that the potential Sept announcement of an Ole second drill date in SR (if true) could help push this stock north , we may even see a share price soon that would allow us all to at least break even…Hell , I am getting so optimistic , I even think we may get a great NR on more gold assay results within 30 days after the pf…OR maybe , I have just had too much to drink…
Arlene,
I appreciated the optimism in your post. I had to do a double take. I thought you were Caliche.
Caliche…where are you? We need some good cheer.
Have a great weekend everyone.
Bob
Wouldn’t surprise me if they release into a weekend (again), but I’m not holding my breath. Seriously how is it possible to miss another deadline? I know they have till Monday, but let’s be honest… If anybody wants to take that side of the bet I’m giving pretty good odds.
Hopefully they’re busy adding all the additional ounces in.
kwhurs01
Seems Like a reoccurring theme with OLE. Always late and comes up short on numbers. Still waiting.
Doublem2
We should start to see some movement right about now. Too much is going on. Calender the middle of September so there is no disappointment. Good luck to everyone.
Yeah I think you’re right about mid Sept. Caliche mentioned some show or presentation in Sept or Oct? Do you think its a push to release ahead of that generate BO interest?
Hope everyone has a great weekend.
kwhurs01
Most companies would do whatever it takes to get the prefeas out within enough time for the majors to review it so there would be something to talk about at the show. Buy Oromin has missed deadlines of the shows in the past, so it is a coin flip. I would hope with IAMGOLD as a minority owner, Oromin would stop being so irresponsible, but than again I am sure IAMGOLD gets preferred information that the individual shareholder does not. They still have Monday to make good on there promise, but I like several other here would bet we miss the deadline again. I m not sure if management will ever realize that us shareholders are owners of the company and they have a responsibility to perform on there promises…
Have a good weekend…
G1
Roro–I believe that “gold show’ that you mentioned starts Sept.13 in Denver…It would most likely benefit we share holders the most if the pf is both very good and released no later than Sept 7…
Sorry , it was kwhurs01 that mentioned that “gold show” ….My error…
I believe it’s called the Denver Gold Forum 2009, September 13-16, 2009, which is a private precious metals investment conference, attendance by invitation only.
Let’s hope Chet was invited (LOL).
Roro—Thx for clearing that up for us all…….Yes , Ole was invited and I believe have stated their intentions to participate…Now , if we can only get a good pf before then…
Oromin is not listed as a presenter …..you can listen to all of the webcasts here:
http://events.digitalmedia.telus.com/denvergold/091409/index.php?mode=1&sel_date=3
3 days of presentations…
stateside
Oromin does not meet several of the qualifying criteria for an exploration company to be a “presentor” … such as $250 million min. market capitalization , average diaily trading volume , other ?? ….However , because Oromin is ranked among the top 20 exploration companies , they have been offered (and accepted) a forum exploration reception sponsorship…..I believe they can then have two representatives at the forum , host an exploration company display table on 9/14 , and participate in some great networking opportunities including one-on-one meetings with institutional investors, portfolio managers , as well as senior executives of major mining companies…A good pf would certainly help in these endeavors…..
In an exchonge of e-mails last week between Peter Spina and myself , he stated “Ole is a great company”
Has anyone had a chance to speak to the office and see if the prefeas will be out before the gold show. I would think that if they wait until after, the prefeas is not going to be good…
Let me know…
G1
It is great to see this run up before the late prefeas, it was also very generous of Chet to dilute the stock even more by giving out 3.9 million options for the great work the employees and management did by taking this stock from $4 buck to $.70. It seems like I wake up everyday and Oromin kicks me in the balls which the crap they pull.
July 10, 2009
News Release
Oromin Explorations Ltd. (“Oromin”) announces that it has granted stock options to employees, consultants, management, directors and officers entitling the purchase of up to 3,870,000 shares of Oromin under its Stock Option Plan, subject to regulatory approval. The options are exercisable at a price of $1.12 per share until July 10, 2014. To find out more about Oromin Explorations Ltd., please visit http://www.oromin.com . … (3 KB)
G1
It is very tough watching the stock go up and DOWN……
But, I still feel that we will all do great with this stock, this is why I am hanging in there otherwise I would pull out, take my losses and move on to another stock!
I only wish that we would be rewarded in the same way Management gets rewarded for there lack of management, but this is what happens in the corporate World.
The good news is, there is 100,000,000 shares and there are warrants expiring very soon. It really does not dilute the stock with those shares being issued or am I way off base on that one???? I would imagine that we all would have a major lawsuit against the management team if they infact diluted the stock at random as an investor buys based on dilution????? Am I right or am I wrong????
Per David Scott…….for what it is worth…….David Scott says that the pf will be released prior to Sept 13 , the start of the Denver Gold Forum…..which means , IMO , sometime next week…Surely do hope it is a good one…..Caliche , please be ready to give us your opinion once it is released……We have not heard from you for far too long !!!
From what I understand, we should not get our hopes up, again…
Goldn 1…..Just what is your “understanding”
Hi Arlene..
im here waiting like everyone else..
i will be glad to offer any opinions i have as well as some translation or clarification if needed..
im looking forward to seeing the Pf .. it should give us a good idea of what to expect in the coming months..
i forsee news next week .. after the long weekend.. then some more drill results an announcement on SR and an updated resource
gold will finish the year strong if not at new highs
and a handsome buyout! hopefully preceeded by a bidding war 🙂
Caliche……Was great seeinjg you post and that our thinking what to expect/hope for in the coming months is pretty much the same…..although I am probably more optimistic on the price of gold by year end….I believe not only that there WILL BE new highs in gold price by year end , but that new highs may indeed happen within the next 60 days…maybe even within the next 30 days…
The following excerpt is from p.10 of a 48 page Research Report issued by CIBC on MDL (MDM):
A Combined Operation
“Despite MDM and Oromin having started in Senegal at around the same time, MDM has since successfully commissioned a mine, while Oromin is still at the
exploration phase. We believe the OJVG can benefit from the operational expertise of MDM, while MDM can benefit from the OJVG’s identified resources to
enhance its mine plan. A combined operation would benefit MDM as higher grade ore from the Kerekounda and Golouma South deposits can be fed into MDM’s Sabodala mill beginning in C2011 to help offset the higher strip ratio anticipated in preparation of phase 3 mining. On the other hand, Oromin would save on the capex needed to build a separate mill for its resources. Instead, we estimate that additional capex for a combined operation would be US$60 million for the plant expansion.”
This analyst thinks that MDL would benefit from OLE’s gold. Since the mill was designed to be expanded to twice its present capacity, there would be economies of scale as well as the cost savings he mentions. I think it would be of greater benefit to OLE shareholders and to Senegal if one larger company (IMG?) took over the both MDL and OLE and turned the operation into a regional play.
maya:
I hope it happens soon…
G1
Maya….
great info. Best thing posted here ever ! You’d think Ole would have seen this,,, but w/ these guys ,,, you never know.
If Ole really has the goods ( or even half the goods)… they have a great story to tell. But no one out side of the shareholders and some Gold insiders know about it….. really a shame, and probably will cost us a lot of money.
The MDL and Ole play w/ an IMG as the Buyer is so logical. Any type of assimilation like that usually drives up the price.
LOCUST VALLEY, N.Y., Sept. 2 /PRNewswire/ — Self Directed Investor, Inc., a financial media company, today announced the launch of a new investment publication focusing on gold mining stocks, The Gold Stock Strategist edited by Scott Nystrom, Ph.D. The Gold Stock Strategist newsletter will be a monthly newsletter that provides subscribers with detailed comparative resource information and production forecasts. Recommendations based on best available information are also provided for subscribers.
Dr. Nystrom stated, “Gold is in the middle stages of a long-run bull market. The U.S. and other industrialized nations are in the throes of an unsustainable debt bubble. Historically, gold is the major beneficiary as government planners look to artificially boost demand with inflationary fiscal and monetary policies. The outcome of this script is predictable. The price of gold will trend higher and gold producing stocks will enjoy outsized returns.”
Companies covered by the Gold Stock Strategist include Agnico-Eagle, Anglogold Ashanti, Barrick Gold Corp. (NYSE: ABX, Toronto: ABX.TO), Buenaventura, Eldorado Gold, Gold Fields Ltd, Goldcorp, Harmony Gold, IAMGOLD (NYSE: IAG, Toronto: IMG.TO), Kinross Gold, Lihir Gold (Nasdaq: LIHR, Toronto: LGG.TO), Newmont Mining (NYSE: NEM, Toronto: NMC.TO), Randgold, Yamana Gold, Allied Nevada (Amex: ANV, Toronto: ANV.TO), Aurizon, Capital Gold (OTC Bulletin Board: CGLD, Toronto: CGC.TO), Castle Gold, Gammon Gold, Gold-Ore Resources (Pink Sheets: GREXF, CDNX: GOZ.V), Golden Star Resources (Amex: GSS, Toronto: GSC.TO), Great Basin Gold, Hawthorne Gold (Pink Sheets: HWTHF, CDNX: HGC.V), Jaguar Mining, Metanor Resources (Pink Sheets: MEAOF, CDNX: MTO.V), Minefinders, New Gold (Amex: NGD, Toronto: NGD.TO), Northgate, NovaGold, Osisko Mines, Richmont Mines, San Gold (Pink Sheets: SGRCF, CDNX: SGR.V), Santa Fe Gold and others.
Maya…thanks
I agree with gf, best news/report in quite a while…which I don’t, by the way, understand.
Is it the report…”MDM: Leading The Pack In A Growing Gold Camp” provided by CIBC?
I saw it on Reuters – don’t really want to spend the $50 (British pounds) for it, though.
h1
Trying to get a grasp on a MDL & OLE aquisition…so I took a look at MDL’s Mar ’09 financial.
The have an awful lot of debt and burned $20M for the qtr. for operating activities, plus 548M outstanding shares. With a cash cost basis of $450/oz, they need to produce 14,000 oz per month to cover operating activities, not to mention their current debt load. The 14k oz/month is 168k per year which is pretty close to their target of 160k produced oz for the year..??? break even point ???
I do not know what is normal for a new upstart gold mill…don’t know how to value one either….curious if anyone here has any idea?
just killing time…
h1
On the PF….
from what I hear…. pretty good source….. that the PF is only going to show the converted resersves and a low # of the current resources. Not the huge # of new gold inferred oz, and not a Blue Sky projection. Thats just what i’m hearing. BUT… the good news is that the Reserves are what matters most. Da ! …..Caliche pls correct me,,, but i guess ( again) that the Reserve conversion is a big task and takes a lot of time and money. Look for about 1 mil oz in Reserves and about 1.5 mil oz ininferred oz… total abt 2.5. Thats a low conservative #…. and they will come out later with the new amounts of gold they just found in a later PR.
But , again thats still good !. i think. As we go from a Company worth $80 mil in Capitalization or worth abt $35.00 per reported gold oz. ( 2.26 mil) (math right?)
With the reserves at 1 mil oz at $300.00 p/oz = $300 mil and inferred of 1.5 mil oz at $50.00= $75 mil totaling $375 mil….. then at 42.5% equity (a killer)= $159 mil then by the 100 mil shares = $1.59- ….. thats just for now. ! a lot better than the 80 cents
Then they come out w/ the new gold findings…. maybe another 1 mil oz (guessing again)
Could take it close to 2 bucks…. not the $5-7 we all want , but far from the measly 80 cents now. Then a Blue Sky w/ multiple mil oz…. and we get our $3 to $5 buck b/o sp ( my guess)
Caliche or others please comment…. and anyone know what the correct going prices are for Reserve and Inferred?
FYI…. if we could ever get some one to give us $1 billion dollars in the b/o… comes to a $4.25 sp. (w/ 100 mil shares)
GF: I really hope your source is wrong…to the very, very low side. I doubt it, but I hope.
Even if your math is correct in the sp calc.,IMO, if that is all that comes out of the PF, I don’t think the sp will move much at all…maybe from the $0.75-0.85 range to a $0.85-0.95 range ($US$). It will disappoint the market. The market, my guess, probably already assumes that at least that amount is going to be proven reserves.
I also don’t know why they would put so much effort..and keep all of us at bay for so long with the proposition of a PF..with such meager results…but hey, I’ve been wrong many many times before 🙂
I only hope, as you have said before, that there is some greater manevuer going on behind the scenes with a better pay-off.
h1
H1
I agree with you that those results will be a disappointment to the market and all of us shareholders, but unfortunately, I think GF nailed this one…
G1
Goldn 1….Probably because your thinking has been far too negative recently…
It will be interesting to see the Oromin play at Sabodala unfold. The overall gold camp there is huge and the bog boys are playing all around. I like the CIBC report on MDM tying up with OLE, just need to watch that Randgold does not beat them to the punch and take out MDM and leave us high and dry.
Look at the Randgold site and the timing, 3.39M oz on Q1, Q2 results significantly better and not included, and all just as close to the MDM plant as OLE.
MDM have shown it can be done, we need chet to extract the digit and do the same….
The financial report on MDm is good, cash cost is $350, gold id going up, they have a fuel hedge in place, only 1/2 gold sales hedged and have done about 100,000 oz in 5 1/2 months….
I think the MDM tie up will be our best opportunity to see value and if its not done with IAMGOLD and Randgold beat us to it, the value will dissapear as the cost of building (and financing) our own plant will knock out any value unless we have a good 5-7M plus ounces…..
Arlene:
I have been negative, but for good reason, plus I beleive GF has a better feel for the prefeas than DS.
Muttley, whoever buys MDL will NEED Oromin for there extra ounces and economies of scale. A deal just would make sense for MDL with out OLE, so don’t be too concerned about that. Although, OLE is good at leaving us high and dry…
Just my thoughts…
G1
Goldn 1, If Randgold buy MDM, they wont need OLE, they have more than enough gold of there own and are close enough to run via overland conveyor……hence my concern that OLE would want to be working with them and IAM to ensure best value for OLE holders.
Muttely:
I don’t think you are thinking to clearly. First Rand typically has there own production
facilities at there large assets. Although Rand is in the area, they are still quite a
distance away and a conveyor is absolutely not an option. This is all hypothetical and should not be a concern, Let’s jump hope some major takes us out soon. On the flip side, MDL is not worth as much without Oromin.
G1
G1:
I agree with yoou in that all of this who with whom and tandem this and that is conjecture, fun and maybe probable, but not going to be accounted for in sp. If that all does occur, it will be one big hit surprose.
Muttley…interested in your comment on financials of MDL being good…there producing gold and producing a very positive amount….but they bled through a huge amount of cash…the current payables are very high given cash flow analysis…and long term debt is pretty substantial…to me, all hinges on their ability to sustain a line of credit and cash flow through to profitability….which they are not even close to yet…just curious.
h1