I was pleased to see gold trading at 1007 this morning as i woke. I think it has been building a base at 1000 and refuses to stay below that mark for any length of time. With gold appreciating the outlook for Oromin gets brighter and brighter. The larger gold stocks are not as highly leveraged to the price of gold as is Oromin. The NAV and IRR of the sabodala project improve greatly with any increase in gold over 900/oz. Notwithstanding any benefit from the current work being done on Sabodala to increase the economics from within. The combination of the price of gold going up and work being done on the ground, the project economics look a lot better than they did at the time of the Pre feas release. I understand it had a time constraint as it was tied to the application for a mining liscence. The application has been filed and a team will be going to the property to follow up on the application process. The general public and media are starting to look around for highly leveraged gold plays and when they find it in combination with an appreciating gold price we will make our money back and then some.

The stock depth is looking a lot better, i was told the Europe trip was a success. Looking at the trades there are 2 new buyers and i think they are european. Toll cross has been doing some crossing trades for some size. The depth is looking better than is has ever. There are some large bids that are in place and i think the sentiment is begining to turn.

One interesting point I made in a comment last week was the fact that someone is accumulating large blocks of MDL on the TSX. So far 30 million shares have changed hands this month with GMP and Toll cross being the big buyers, Credit Suisse is 3rd and has also begun accumulating oromin shares, and thanks to Muttley adding the fact that 30 or so million shares traded onthe ASX thats 60 million shares in a month.. interesting

There is a lot of speculation on the street about how the deal will go down. The truth is no one knows .. there are as i see it 4 players (maybe more) Oromin MDL Iamgold and Randgold. With mdl having the plant in place it makes sense to have mdl included in the deal. Will mdl be taken out first?.. i guess it depends who is taking up the shares in mdl..Iamgolds stake in Oromin will also play a role. They already have a head start so it looks like they are the front runner. But what if Oromin was to make a run at MDL! The combined company would have almost 7 million ounces and be in production with probably 4 million upgraded ounces. I have always said that Oromins property was a 10 million ouncer add mdl’s 3.5 and some blue sky we are at 13 – 15 million ounces .. all of a sudden Oromin is a significant mid tier producer going into the biggest gold rally of the last 25 years!..

Oromin and MDL have always had a good relationship..and remembering back to the merger mania of the 80’s the project synergy is there.. we have the oxides and the blue sky ounces on our property and MDl have the mill.. they need oxides and we need a mill ..

i see some pretty exciting times ahead with some big numbers being thrown around!

September 30th, 2009
Categories: General . Author: admin