Projects

Ownership:

The project is held 100% by the Oromin Joint Venture Group ("OJVG"). Oromin Explorations Ltd. ("Oromin") operates and owns 43.5% of OJVG, with the remainder held by two private companies: Bendon International (43.5%) and Badr Investment and Finance (13%).

Opportunity:

The region is comprised of multiple deposits and prospects of mesothermal gold with both open-pit and underground potential within an emerging gold camp hosting one producing mine and greater than 10 million ounces of gold resources defined by three companies, including Oromin. OJVG's concession contains two main styles of mineralization within a NNE-trending 8-km wide structural corridor that runs the entire 22-km length of the property. The western side hosts seven gold deposits and two new discoveries lower grade, bulk-tonnage "Masato Style" deposits and recent discoveries of this type while the eastern side hosts higher grade "Golouma Style" deposits and similar exploration targets.

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Project Status:

A feasibility study completed in mid-2010 shows positive economics for a proposed open-pit/underground mining operation that would produce 174,000 ounces of gold annually at cash costs of US$409 per oz. in its first three years, with payback of capital (US$291 million) within three years at $1,000 gold. Ongoing engineering studies are focused on opportunities to improve project economics, including upgrading and expanding resources of the five deposits included in the feasibility study, evaluating four other deposits not included in the feasibility study and testing multiple new mineralized targets including two new discoveries. The Senegalese government has granted OJVG a 15-year renewable mining license for the project and also offers tax incentives to encourage development of its mining sector.