Pre Feasibility
The long awaited PF due around august 40th LOL..is an all encompassing report dealing with not only the drill results and modeling but also including economics and mineralogy. The number of ounces converted to reserve may not be any surprise to us but a junior co with reserves is a BIG deal .. the majors will be able to look at the document and make their own judgment on blue sky and start formulating a strategy for the buyout. once again the number of ounces may not take anyone by surprise (around here anyway) .. but the PF is a BIG deal to insiders and in the industry.
cheers
caliche
I’m sure we’re on track for a Friday 8 PM release into the holiday weekend. Why not? makes the most sense… a week late and into a long weekend. I’m sure that’s the #1 on the OLE board play book right now.
At least football starts tonight. I can watch others get smacked around instead of me by OLE. HA!
kwhurs01
Caliche:
Since August has 31 days, you must be looking around Sept 9th. It is gonna be strange not getting a release on a Friday night going into a long weekend.
G1
Agree completely with your commentary on PF. We COULD see 50% increase in stock price here with the the metrics of this significant deposit outlined in full. I’t is my experience from other PF’s over the years. Did you notice the 52 wk high for Iamgold yesterday?
Fig:
IAG will hit another high today. The price of gold has gained a lot of traction being up 35 bucks in the last 2 days and about to break through $1000. With inflation imminent, we should see a nice run in gold. Most of the other major gold producers we up big yesterdat as well as margins will continue to improve…
G1
New research report on Oromin from Baystreet… At least someone is watching…
http://www.baystreet.ca/articles/research_reports/eresearch/OLE_090209-SP.pdf
G1
PROFILE
Oromin Exploration Ltd. (“Oromin” or the “Company”) is a growth-oriented resource company focused on exploring the Sabodala gold concession in Senegal, West Africa, and the Santa Rosa Dome oil prospect in Argentina. The Company, in which IAMGOLD has recently acquired a strategic 17% interest, is well financed and managed by experienced industry professionals with an enviable track record of discovery.
INVESTMENT CONSIDERATIONS
Strengths
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Successful, well-respected, aggressive exploration team
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Has net 1 million oz of inferred gold resource at Sabodala
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Pre-feasibility study scheduled for release in September 2009, with upgrading of resource quality.
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Well-funded with cash of $21 million, or $0.22 per share.
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IAMGOLD owns 17% of Oromin, which it bought in June and agreed not to buy any further shares for 7 months.
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Take-over candidate.
Challenges
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Exploration and mining in Africa is often considered politically risky but there have been few problems in Senegal to date.
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Though adequately financed, Oromin is still a development company with no revenues and is ultimately dependent upon its ability to raise equity.
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While management is skilled in exploration, neither that nor development success is ever guaranteed, regardless of potential.
I just ran a really quick check on a few recent and past sp changes of JM’s before and after the release of their PF…interesting, and I need to do further investigation, but…and hate to say it, my initial take for most JM’s sp did not change substantially from previous trading ranges…big jumps appear to have occurred after first release of 43-101 drill results…and also at b/o’s
Moto..recently purchased by Randgold…had been tradining in the 3.5 range prior to their Dec ’07 Definitive PF drifted a little higher to 3.75…eventually falling back to 3’s…After their Optimized PF where they converted to 5.5Moz measured & indicated with inferred of 11Moz … no change at all
Gryphon Gold…Pf out Aug ’09 basically trading $0.20-0.25 both before and after
Golden Band…PF out Jan ’09 trading in the $0.18-0.26 before & after
Graystar..PF out Mar’09…tracked differently…slow climb from Nov “08 of $0.70 up to the $3 range in Jan ’09 jumped to $4.5 end of Mar after PF…now at $3.8
???
h1
All gold stocks are up… well not all.
Seriously any stock with gold in the title is up. Come one Oromin, what is your major malfunction?
kwhurs01
So, we’re looking at a ‘possible’ (with humongous quatation marks) release fridaynight, the long weekend with labor day and all. I concur, it could be a perfect moment.
And another week from now and we’ll have the Denver Gold forum and a PF to lure potential investors.
Sounds like a plan!
But will it happen like that??
Such a shame Oromin has to miss these glorious up days for gold.
But there’s more to come for oromin to use.
Maybe it’s not in China’s interests to drive the dollar down too much until it has managed to divest itself of the huge dollar overhang (see the article on Chinese Sovereign Wealth Funds we published yesterday – Chinese sovereign wealth fund dumping dollars for strategic investments like gold ). The country may well already be, of course, surreptitiously building its gold reserves without reporting the build-up.
Hi,
It might not be in China’s best interest to drive the dollar down…however…that is for the moment.
I don’t know whether you know but China’s plans are to considerably reduce their dollar based assets in the next 1-2 years.
They are already promoting gold buying on state media.
And remember the US messing with Switzerland and the banks over there? Now Switzerland is back with a vengeance.
Banks in Swiss are telling their customers to ditch their US assets or face account closure. And its not just one bank, it will soon be all of them. A meeting is already arranged amongst bankers in switzerland to really stick it to Uncle Sam.
Serves em right, you don’t mess with the Swiss people!
In short, manipulation of gold prices will get harder and harder until we reach a tipping point. That will happen in the coming months.
I’m geussing october or early november.
PF after hours today? Anyway they get it out?
I dont think so. I say next thursday mid afternoon. DS wont want to work friday.
they are so unpredictable…. who knows anymore about these guys.
maybe chet’s a control freak
I believe Chet was out of town, and is either back or getting back right about now. So it’s no surprise that we have not received the news on the PF yet. I imagine we will hear the news right before the conference, which means later in the week. I also anticipate that the report will be somewhat complex, and it may take a few days to absorb the actual results, so don’t jump to any negative conclusions just because you don’t see 5 million onuses. We are really looking to reclassify and solidify the 2.25 ounces more than anything else, so please keep in perspective.
Good luck to everyone, and Caliche, how about posting that Ferrari again!
chet is usually out of town in august.. i believe they were all in the office yesterday preparing to release the Pre Feas early next week.. it is complicated and apparently all encompassing and im looking forward to reading it cover to cover..a majority of the drilling has been done to upgrade the current resources so im hoping for a big jump in value and share price..