Oromin applies for mining licence
Oromin Continues Strategic Planning for Development at Sabodala
Ticker Symbol: C:OLE U:OLEPF
Oromin Explorations Ltd. (“Oromin”) (TSX: OLE)(OTCBB: OLEPF) reports that concurrently with engineering optimization studies and ongoing exploration, it is continuing with strategic planning for the development of the Sabodala property. As a part of this planning process, Oromin is presently interviewing financial advisors to assist it with its funding obligations as part of Oromin Joint Venture Group Limited (“OJVG”).
Oromin and its partners in OJVG have applied to the Government of Senegal for a mining licence at Sabodala and OJVG is committed to advancing the development of Sabodala in the shortest practical time frame.
The Sabodala gold district hosts greater than 10 million ounces of resources, including OJVG’s global mineral inventory of almost 3 million ounces, and has significant potential for expansion.
To find out more about Oromin Explorations Ltd., visit www.oromin.com.
On behalf of the Board of Directors of OROMIN EXPLORATIONS LTD.
Chet Idziszek, President
Cautionary Statement
This document contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and our other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. Such forward-looking statements include, without limitation, estimates of exploration investment and the scope of exploration programs. There can be no assurance that such statements will prove to be accurate, and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company’s documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates or opinions change. Forward-looking statements are subject to risks, uncertainties and other factors, including risks associated with public markets, mineral exploration, price volatility in the mineral commodities we seek, and operational and political risks. Readers are advised not to place undue reliance on forward-looking statements.
Contacts:
Oromin Exploration Ltd.
David Scott
Investor Relations
(604) 331-8772
(604) 331-8773 (FAX)
dscott@mine-tech.com
www.oromin.com
Anyone care to comment on or interpret the following:
“…strategic planning for the development of the Sabodala property. As a part of this planning process, Oromin is presently interviewing financial advisors to assist it with its funding obligations as part of Oromin Joint Venture Group Limited (”OJVG”).”
Specifically “funding obligations”. I thought they were all funded up through the revised PFS in Q2, 2010.
“strategic planning” – does that include responding to or soliciting buyout offers or initiating joint-ventures with MDL or others players in the camp?
what it says to me is there are big things going on behind the scenes and i think the lid is about to come off our shareprice ..to the moon alice!!!
From the September 09, 2009 Preliminary Feasibility Study news release:
“The Sabodala gold district hosts greater than 10 million ounces of resources and has significant potential for expansion. It is becoming a mineral camp that may be of equal or greater stature than the long term gold producing operations of Iamgold and Randgold nearby in Mali. Recent independent reviews of the Sabodala district by CIBC World Markets (July 20, 2009) and Euroz Securities Limited (August 27, 2009) have discussed the possibility of joint operations with other companies active in the area. SRK’s optimization studies will include, in addition to work focused on Sabodala as a stand alone operation, trade off studies to determine the viability and value of alternate development scenarios such as toll milling or joint operations.”
“significant potential for expansion” – Kerekounda, Golouma, Epsilon etc. – none of the other players have potential like this
“toll milling” – Masato ore to MDL mill?
“joint operations” – build super mill near Oromin high grade deposits – this would not contradict milling low grade Masato ore at MDL?
From the October 07, 2009 Exploration Continues To Provide Encouraging Results news release:
“Recent exploration activities include in-fill and step-out resource drilling at the Epsilon deposit…”
This Epsilon deposit seems to be so incredibly rich ( See schedule A attached to bottom of the release)! Is it possible that it alone can push our resources to approach 4 million ounces?
Would that magic number of 4 million finally turn our ugly ducking into a golden swan?
http://www.oromin.com/s/NewsReleases.asp?ReportID=366813
Last 5 trades today
Time X Price Chg Vol Buyer Seller Markers
09:52:12 T 0.99 0.03 2,000 7 TD Sec 85 Scotia K
09:51:20 T 1.00 0.04 2,500 7 TD Sec 1 Anonymous K
09:49:37 T 0.99 0.03 1,000 7 TD Sec 19 Desjardins K
09:46:16 T 0.96 0.00 208 44 Jones Gable 83 Research Cap E
09:45:45 T 0.96 0.00 714,500 83 Research Cap 83 Research Cap KL….Big cross this morning?Positioning someone?I am not saying to buy or sell.Good luck everyone.dsh
Last 9 trades today
Time X Price Chg Vol Buyer Seller Markers
10:06:27 T 0.96 0.00 442 44 Jones Gable 83 Research Cap E
10:05:57 T 0.96 0.00 72,500 83 Research Cap 83 Research Cap K
09:56:10 T 1.00 0.04 1,000 33 Canaccord 1 Anonymous K
09:53:29 T 0.96 0.00 1,000 62 Haywood 28 BBS K
09:52:12 T 0.99 0.03 2,000 7 TD Sec 85 Scotia K
09:51:20 T 1.00 0.04 2,500 7 TD Sec 1 Anonymous K
09:49:37 T 0.99 0.03 1,000 7 TD Sec 19 Desjardins K
09:46:16 T 0.96 0.00 208 44 Jones Gable 83 Research Cap E
09:45:45 T 0.96 0.00 714,500 83 Research Cap 83 Research Cap KL….Still crossing stock?dsh
Depth By Price
Bid
Orders Volume Price
2 5,000 0.97
2 4,500 0.96
3 14,500 0.95
4 10,000 0.94
1 25,000 0.93
Ask
Price Volume Orders
1.00 25,200 3
1.02 5,000 2
1.03 10,000 1
1.05 5,000 1
1.08 1,600 2….Oromin depth to 7:52 Vancouver time.dsh
I am not going to say buy or sell?But for some reason I think its time to do so?In fact we have been buying..not a lot but just enough to get our feet wet?With the crosses taking place it might be a signal..Remember I have been wrong many times before.do your own homework.Its a gamble but so is life.Probably better then sitting on paper money of any kind.Good luck.dsh
Last 10 trades today
Time X Price Chg Vol Buyer Seller Markers
11:13:12 T 0.98 0.02 96,000 93 Toll Cross 93 Toll Cross K
11:12:38 T 0.98 0.02 50,000 93 Toll Cross 93 Toll Cross K
10:59:03 T 0.97 0.01 2,500 33 Canaccord 65 Goldman K
10:57:50 T 1.00 0.04 2,000 33 Canaccord 93 Toll Cross K
10:49:00 T 1.00 0.04 4,000 7 TD Sec 93 Toll Cross K
10:48:47 T 1.00 0.04 3,000 62 Haywood 93 Toll Cross K
10:48:47 T 1.00 0.04 6,000 62 Haywood 15 UBS K
10:48:47 T 1.00 0.04 500 62 Haywood 80 National Bank K
10:47:55 T 1.00 0.04 1,000 62 Haywood 80 National Bank K
10:47:41 T 1.00 0.04 8,500 62 Haywood 80 National Bank K…Still crossing?Hopefully when this is over we might see a spike.Just me thinking out loud.Not saying to buy or sell..Do your own gambling and homework.dsh
DSH…do you have the latest depth chart?
dsh & others, forget the pennies – it’s time for DOLLARS!!!
FINALLY!!!!!!
New corporate presentation:
http://www.oromin.com/i/pdf/CorporatePresentation.pdf
Infinitely more understandable than the convoluted press releases. Yea!!!!!
Now the institutions, mo-mo drill hole players etc. have the excuse to buy buy buy.
The big boys must really be salivating.
thanks bernie .. i will be going over it in detail after dinner
The new corporate presentation is good! It also points to an issue I think is important when setting/discussing a buyout price for the OJVG property.
On page 4 of the Oromin presentation, it list past management discoveries. The Pierina Peru / Arequipa property was sold to Barrick for $1.1Billion. The presntation says it was a 7Million oz property…which is true…BUT…it was NOT at the time of the buyout.
Arequipa resources (43-101) were only 2.8Million oz. It was LESS than 3M oz! Barrick bought it at full gold price value…gold was around $350-380/oz at the time. Many of the trade journals wrote that Barrick had better hope for and was counting on it having much more gold than the resource calc. – which of course it did.
So…it naturally begs the question…Why would we sell OJVG for only $1Billion dollars? OJVG already has more resources than Arequipa did…we are a few decades down the road…gold is over $1000/oz…and we can more than reasonably predict the OJVG property will exceed 7M oz.
$1B at 43.5% at 105M shares is a $4.14 / share. Why would we accept that???
If Arequipa was $1.1B way back then, than OJVG is well worth more than $2Billion today..maybe $3B.
Always Hopeful!
h1
hoosier1
I totallyagree with your outlook on this. I could not even start to comprehend a 1B or 2B and when you look at it 3B still appears to be a low number, if you take those calcs plus the inflated price and even average it at $700 OZ, we are well into the 4.5B range.
Thoughts anyone?
DW
Depth By Price
Bid
Orders Volume Price
1 7,000 0.96
4 12,500 0.95
3 5,000 0.94
1 25,000 0.93
2 20,000 0.90
Ask
Price Volume Orders
0.98 1,000 1
0.99 2,000 1
1.00 27,200 5
1.01 2,500 1
1.03 10,000 1…Depth for Wednesday closing…dsh
Great artile about Junior Mining posted on the mainstrain news site money.cnn.com. Oromin is not metioned directly, but I think the junior market is due for a nice bump .
artilce from: http://money.cnn.com/2009/10/26/pf/gold_mining_stocks.fortune/index.htm
NEW YORK (Fortune) — A year ago investors fled small gold mining stocks as the desire for high-risk assets evaporated.
Now, even after investors have flooded back into the market, top-ranked gold fund manager Mark Johnson says the junior miners are undervalued, and he’s betting on their recovery.
“The best value is at the smaller end of the scale,” says Johnson, who is in his 16th year running USAA’s Precious Metals and Minerals fund (USAGX).
Junior miners are those with less than 250,000 ounces of annual gold production, which equates to roughly $250 million in revenue at gold’s current price.
Fund researcher Morningstar ranks USAA’s Precious Metals fund No. 1 in each of its five- and ten-year categories. The $1.5 billion fund’s 10-year annualized return of 22% handily beats the S&P 500’s (SPX) drop of 0.15%. Its closest benchmark, the Philadelphia Stock Exchange Gold and Silver Index (XAU), has returned 9% a year since then.
We did argue recently against buying physical gold. Many experts think its rally is unsustainable based on simple supply and demand fundamentals. But Johnson and the fund’s co-manager Dan Denbow expect undervalued junior mining stocks to rise without major movements in the metal’s price.
Johnson and Denbow say they’ve outperformed the market by sticking to basics: finding miners with solid balance sheets, rising production, attractive valuation, and mines in politically stable regions. “We really try to pull out a balanced attack where we’re not overly exposed to any one company or geographic region,” explains Johnson.
Junior mining stocks make up 18% of his fund — the highest percentage in years. That compares with 31.5% in intermediate miner holdings, which fall between $250 million and $1 billion in annual sales.
“The main difference between junior and senior miners will show up on the risk metrics,” says Johnson, who regularly visits mines to gauge management’s expertise and if workers are active. “They’re going to be riskier, because typically they are one-project companies. But they usually have a better growth profile and cheaper valuations.”
Co-fund manger Denbow points out that last fall, smaller miners were more reliant on capital from banks, and thus were sold off more than larger miners during the credit freeze. “They’re still making up for some of that when they were beaten up last year,” he says.
0:00 /2:32Cashing in on gold
Two of the fund’s top junior mining holdings are two Vancouver, Canada-based companies: Great Basin Gold (GBG) and Aurizon Mines (AZK).
The fund added Great Basin two years ago. Johnson says he expects its seasoned management to more than double gold production to 200,000 ounces by the end of next year. The company’s Hollister mine in Nevada is high-grade, he says, producing 1 ounce of gold per ton of material mined. A typical mine might yield 1/10 of an ounce per ton. “They’ve already poured real gold out of this thing,” he says. “It’s not just a figment of someone’s imagination.”
At the operating level, Johnson says Great Basin has hired seasoned managers from Newmont Mining, one of the world’s largest producers with mines also in Nevada. “These are experienced Nevada miners with a long track record,” he says.
According to Johnson, Aurizon is a fairly cheap stock on an enterprise value-to-per-recoverable-ounce basis. The ratio represents the company’s value — market capitalization plus debt minus cash — to the estimated ounces of gold it can recover from its mines.
Aurizon runs one mine in Quebec called Casa Berardi, which he expects to ramp up production to 200,000 ounces per year after 2010 from about 150,000 ounces this year.
Not only are the junior miners undervalued, according to Johnson and Denbow, but miners do disproportionately well in a gold bull market.
“The rule of thumb is a 1% move in gold prices equals a 2% to 3% move in mining stocks,” Johnson explains.
So when gold prices rise by $1 an ounce, miners’ profits can jump by $2 or $3. Here’s why: Large and small gold miners operative massive mines with fixed costs like labor and fuel. Bullion dealer Kitco says it costs the average mine roughly $425 to extract an ounce of gold. That represents a $635-per-ounce profit if gold trades at current levels around $1,060 per ounce. If gold rises 10% to $1,170, a miner’s profit rises to $745, up 17%.
Johnson is quick to point out that leverage also cuts the other way. But he expects mining stocks to gain amid physical gold’s rise.
It’s difficult for retail investors to do research. No indices or exchange-traded funds directly follow junior miners. But Johnson says if a retail investor wants to do his own stock-picking, “He first needs to identify management to make sure that they’re getting in bed, so to speak, with reputable, experienced people.”
USAA’s complex models value miners by balance sheets, cash flow statements, currency risk, management expertise, recoverable ounces predictions, and other metrics.
The fund’s 1.31% management expense might seem steep. But as its returns suggest, Johnson and Denbow have a strong track record excavating the best miners
Caliche,
My last question provoked quite a lot of exuberance regarding our potential BUYOUT price. I hate to throw water on the euphoria but I’d like to hear your ‘worst-case-scenario’ and pricing. I always like to hear both sides to the debate. If you have time I’d appreciate.
Andy
Re Santa Rosa and Otto Energy…………..In an announcement dated Oct. 30 , 2009 , Otto stated that they will NOT do any further oil exploration in this area……..No word from Oromin , as usual…