|April 19, 2012|
Oromin Explorations Ltd.: Progress Update for the OJVG Gold Project
OJVG's 2010 Feasibility Study delivered robust economics for a carbon-in-leach ("CIL") mining operation with initial annual production of 187,000 ounces of gold over the first three years from the Golouma, Masato, Kerekounda and Kourouloulou deposits. The 2010 Feasibility Study outlined gold reserves of 1.42 million ounces (17.5 million tonnes at 2.52 g/t Au) based on drilling to January 2010 at a gold price of $880 per ounce (see July 15, 2010 news release). Subsequent optimization studies increased plant utilization and gold recovery metrics which collectively added incremental gold production of 7,000 ounces per year (see November 23, 2010 news release). Furthermore, a Heap Leach scenario to process lower grade material was outlined by Ausenco in a May 2011 Preliminary Economic Assessment, adding an incremental 26,300 ounces per year of gold production over a 9-year mine life, including 36,000 ounces of gold production for the initial 3 years (see May 5, 2011 news release).
The 2012 Feasibility Study Update will incorporate results from 340 additional drill holes on the original four deposits, and the mine design and reserve parameters will be updated to reflect the continued strength in the gold price since Q1 2010. The 2012 Mineral Resource, Reserve and Feasibility Study Updates are expected to demonstrate a substantially improved development scenario for the OJVG Project, which Oromin believes will have a significant positive impact on the project's net present value for a variety of reasons, including:
Please refer to the appended fact sheet and following link for additional detail and to the property map for deposit and prospect locations within the OJVG Concession.
Oromin is continuing to work with its OJVG partners and its financial advisor, RBC Capital Markets, to assess development, financing and strategic alternatives towards maximizing project value, including discussions with various parties that could lead to a potential acquisition of Oromin.
Speaking to the recent presidential election in Sénégal concluded in March 2011, Chet Idziszek, Oromin's Chairman stated, "We are pleased that the election resulted in a peaceful, democratic change of government. This confirms Sénégal's reputation as one of the most democratic countries in West Africa, and underscores that Sénégal is an excellent jurisdiction for foreign investment. Oromin congratulates President Macky Sall on his electoral victory."
With the election now concluded, OJVG anticipates final approvals on its Environmental and Social Impact Assessment shortly, following the installation of the new cabinet last week, allowing the ongoing business of government to resume.
Doug Turnbull, P. Geo., is a qualified person for the purposes of National Instrument 43-101, and has reviewed and verified the technical information disclosed in this news release.
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 and CEO
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 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.
OJVG GOLD PROJECT FACT SHEET
RESOURCES & RESERVES UPDATE SUMMARY (April, 2012)
2010 RESERVES & 2012 RESERVES UPDATE PLAN (see July 15, 2011 News Release)
**Also, considerable depth expansion (from 250m to > 1km) of high grade mineralization confirmed at Golouma deposits during wide spaced 2011 drilling.
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