Grandich Writeup
Client Update – Oromin Explorations, Drilling For Ore Versus Investors Appears Ready To Pay Off OJVG Sabodala Gold Project, West Africa
Transforming a grassroots prospect into a potential new mine is an accomplishment for any junior company, but Oromin Explorations Ltd. is poised to achieve a more ambitious goal at its flagship project in the Sabodala District of eastern Senegal. A Full Feasibility Study scheduled for completion by mid-2010 will examine the fast-track development of a proposed open-pit/underground mine complex, with initial production from five deposits feeding a central 4,400-TPD carbon-in-leach mill that can be increased to about 7,000 TPD when processing soft oxide and saprolite ores.
It appears Oromin has a gold-mining camp, rather than a gold mine, in the making.
Oromin, on behalf of the Oromin Joint Venture Group (OJVG), began exploration in the region five years ago after securing rights to the 212-sq-km OJVG Sabodala Gold Project through an open tender process. The goal was to define at least one deposit that could be advanced to pre-feasibility within a short-term window set by the government under the tender process. Mineral Deposits Limited (MDL) had a similar goal at its nearby 20-sq-km Sabodala Project. Both companies met early success by drilling bulk-tonnage deposits amenable to open-pit mining, similar to those mined in established gold camps in neighboring Mali, now Africa’s third largest gold producer.
Since then, more than ten million ounces of gold has been reported by various companies (including Oromin) in the district. MDL opened the first gold mine in 2009, and now plans to double capacity to 4 million tonnes per year by mid-2011.
One of Oromin’s biggest challenges was the need to systematically evaluate the highest priority gold targets within a large concession hosting multiple deposits of different types within a 22-km-long, 5-to-8-km wide, northeast trending corridor. Initial drilling focused on “Masato Style” bulk-tonnage open-pit deposits on the Western Side of the Structural Corridor, similar to those mined at MDL’s concession. But as exploration progressed, a number of higher-grade “Golouma Style” deposits with combined open-pit and underground potential were defined on the Eastern Side of the Structural Corridor. They represented an attractive target because of their similarities to shear-hosted vein-type deposits in Canada’s Red Lake and Kirkland Lake camps and Ghana’s producing camps. These world-class camps are known for high-grade deposits with considerable lateral and vertical extension and long lives.
The Full Feasibility will be based on an updated resource estimate for seven advanced deposits, including the first five scheduled for initial production. Based on the number of drill rigs currently working, an increase in resources is greatly anticipated. I believe it can include expansion at the high-grade Kerekounda and Kourouloulou deposits. (OJVG’s existing resource of 2.19 M oz. Indicated and 0.35 M oz. Inferred is based only on drilling to May 2009, and does not include drilling below conceptual open pits or at five new discoveries). Metallurgical tests confirm excellent carbon-in-leach-only process recoveries ranging from 88.3% to 96.7% for these five deposits. Initial resource estimates for four new discoveries is expected to follow. Oromin also has another 18 gold targets that warrant further exploration. Six drill rigs are currently working in further expansion of resources.
Oromin has recently reported a number of important milestones. The Government of Senegal has granted OJVG a 15-year renewable Mining License, following approval of its Strategic Environmental Evaluation Report. And Oromin’s progress has not gone unnoticed, as IAMGOLD Corp. holds an approximate 15.6% interest in the Company. It’s no coincidence that IAMGOLD was a gold exploration and mining pioneer in Mali a decade or so ago, just as Oromin is a gold exploration leader in Senegal today.
Stay Tuned.
I wish someone could comment on why we are only using six drill rigs and not more if they have 18 other potential targets. Just curious if it is a capital constraint or a personel / rig procurement constraint.
why is anonymous still selling?
well if anon is still selling it’s a world class conspiracy! 60k shares sold today for a total of 45k loonies. do we all think oromin can withstand this onslaught?
Davy crockett,
you must be new here….
Anonymous has been selling into all and any bids since $4 in October of 2008.
i agree, I (and maybe a few others, maybe not) have a conspiracy theory that borders on paranoia….
however ,you explain this to me… why is this so cheap, why do they hide press releases, why even with Grandich pumping will this soon be back to 70 cents?????
“why is this so cheap”
My guess is sentiment. For now, we are on the wrong side of a pump and dump story.
When facts become more apparent to more investors we will see a change.
Preferably, a good change.
Here’s looking forward to a green day.
went to canadian insider, saw some green, thought it was insider buying, when in fact was “granting of options”
was some insider selling……
Apr 07/10 Apr 05/10 Bartlett, Derek Direct Ownership Common Shares 10 – Disposition in the public market -19,100 $0.740
Apr 07/10 Apr 01/10 Bartlett, Derek Direct Ownership Common Shares 10 – Disposition in the public market -50,900 $0.710
made some headway today…where is the chatter about that?
Try the “Oromin Hires Grandich Again, Grants Options” thread…
Next PP at 80 cents?????
11:57:55 T 0.80 -0.04 4,000 44 Jones Gable 1 Anonymous K
11:52:47 T 0.80 -0.04 15,000 2 RBC 1 Anonymous K
11:45:45 T 0.80 -0.04 15,000 83 Mackie 1 Anonymous K
11:24:27 T 0.80 -0.04 12,000 83 Mackie 1 Anonymous K
10:07:19 T 0.80 -0.04 18,000 80 National Bank 1 Anonymous K
09:46:26 T 0.80 -0.04 4,000 83 Mackie 1 Anonymous K
09:34:55 T 0.80 -0.04 200 2 RBC 44 Jones Gable E
09:34:55 T 0.80 -0.04 10,000 83 Mackie 1 Anonymous K
09:34:55 T 0.80 -0.04 1,000 1 Anonymous 1 Anonymous KL
Oromin started at buy by Mackie. Price target C$1.15.
Tony:
Do you have a link for that?
G1
I saw the coverage as well on FIDELITY. $1.15 price target…….sorry, I don’t have link but it came through this morning at 9:24EDT. Maybe we will get $1.50 out of this afterall.
AB
G1, I got it on my Etrade account. Sorry, no link.
I forgot Oromin was going to be a SIM… Here is an article… First company mentioned…
DAKAR, Apr. 16, 2010 (Xinhua News Agency) — In Senegal, all roads for gold- washers are leading to Sabadola, a gold bearing district situated 700 km southeast of the capital Dakar and not far away from its border with Mali.
There are already more than 12 foreign firms exploring gold at Sabadola, which was one of the biggest attractions for the International Mines Seminar (SIM) held in Dakar on April 12-15.
The seminar was an opportunity for these firms to announce the results of their exploration work.
At the SIM gathering, Oromin, a Canadian firm, claimed to have discovered seven gold mine deposits after five years of exploration.
“Since 2005, the date when the company started exploration, Oromin has discovered seven gold mine fields …and 18 others showed high possibility of having gold,” Aziz Sy, the vice president of Oromin Senegal, told the seminar.
The company expects the seven fields to have a total of 75 tons of gold metal. “This is to mean the permission to start exploiting gold. And the concession that was given to our firm is for 15 years, renewable if at all the deposits will still exist,” said a geologist for Oromin Senegal Jean Timothee Maty.
According to the Oromin director, Senegal has enormous potential because “the deposits which are being discovered place her in the fifth top producers in West Africa.”
Sy estimated the current gold production by Senegal at five tons.
Randgold, a South African mining company, is also exploring for gold in Senegal.
Randgold is already in the phase of exploitation of gold mines in Mali and Cote d’lvoire.
In Senegal, it has discovered the Massawa mine. “This mine field extends to a distance of eight km and only 4.5 km have been explored with a vertical radius of 250 meters,” Director of Randgold Mouhamed David Mbaye told the gathering.
He was optimistic about the studies that have been launched, noting that “with all the geological signs that are there, there’s no doubt that we have gold along the entire distance.”
The South African firm, which has managed to secure five exploration licences, has based its optimism on its finding of gold in Mali.
“On the other side of Mali along the same window, there are the mines of Lolo, Bounkoto etc. Therefore there’s no reason as to why there cannot be potential in Senegal,” he said.
According to a director of Senegal’s Ministry of Mines Moussa Sylla, the race by big firms in the country is justified by favorable geological environment and the good legislations in the area of mining.
“Since 2003, Senegal has adopted a new mining code which has served to attract and stimulate interest in this sector. This code envisions a mining regime which is transparent, predictable, simple, stable and non-discriminatory and its application reduces the costs of transaction,” he explained.
Sylla also disclosed that the southeast of Senegal is within a more favorable geological environment with an extreme concentration of gold. The objective of Senegal, according to the director of mines, is to “enter the exclusive club” of big gold producing countries.
Besides the firms targeting gold, there are others searching for iron, copper and uranium deposits.
As for iron deposits, Arcel Mittal is the most active. At the seminar, it displayed crude iron deposits it had extracted from the Faleme site in eastern Senegal. The minerals were classified according to the quantity of iron.
In an agreement signed with Senegal, Arcel Mittal is expected to exploit iron for 15 years to 20 years. According to Cheikh Gueye, a legal advisor to Arcer Mittal, the contract also requires the company “to construct a railway line which will link Kedougou to Bargny (northeast) in a distance of 800 km.”
The Mackie Research Capital article on Oromin is titled “A dominant land package in a new gold district”. If you click on the report it asks you for account info so you have to be a Mackie client to view it.
http://www.mackieresearch.com/docid.php?docid=13454
Occidental petroleum has a project near Santa Rosa. I wonder why we can’t partner up with them to explore our area?
Feddy K…. we cant access the mackie article. Unless a subscriber. can u pls show the article here? Mackie has been a big Buyer. I’d mlike to see the article.
tdhanks
GF:
The mackie price target is a bit tainted as they were the ones to assist in the last raise, so I am sure they are sitting on a bunch of options or have a financial interest in seeing OLE go higher…
G1
People were wondering about the cut-off points for drilling so I did some checking. The cut-off date for results which comprise the Resource and Reserve calculations for the feasibility study is the end of January. Results from February to the end of May, along with all other exploration results that were not included in the feasibility study, will be incorporated into the Resource Update. Because the update will be released in conjunction with the feasibility study, the company will not be required to complete an additional NI 43-101 and the market will be able to rely on the numbers.
Now that Ken Kuchling is working on the project, there will be no more retractions or re-statements. Drilling will continue past the end of May.
maya——Thx for the info……I appreciate it……Hope that the” proven & probable” will reach five million…….With 6-7 drills exploring , we just may have a chance if they are concentrating on the higher grade deposits….Comments ??
no one’s noticed anymore…. but ole is trading over 400 thou shares today. Touched 90 cents.
490,500 crossed at $.88 at 3:03 PM
Don’t really understand how that many shares can be traded without it increasing the buy price………Ideas ??
I think they are called “cross trades”. It’s a trade from a prearranged seller to a prearranged buyer. Usually, it is someone moving shares from one account to another, for instance from an individual account to a joint account. It doesn’t go through the open market, so it isn’t subject to first bid/first fill rules. That’s the only way I can think that a single trade at 4x daily average could be made and not move the share price.
Can someone please log into this site and let us all know what is going on?
http://oromin.net/
G1
The company’s website is Oromin.com.
Oromin.net was registered about 1 1/2 years ago and is owned by someone in Senegal.
Whois data:
Oromin
Gourouza Salmou
Almadie ZONE 15 n????4
Dakar, 8564
SN
+221.8203922
Record last updated on 2009-08-25.
Record expires on 2010-09-18.
Record created on 2008-09-18.
I know that the company website is oromin.com, but I believe oromin.net was set up as a secured site for the members of the JV group. I was hoping one of you had the username and password so we can really see what is going on…
I hope we can continue to move up this week…
G1