Projects

Geology:

The OJVG Project is underlain by the Early Proterozoic, Birimian-age Mako Group, an orogenic greenstone belt comprising metavolcanics, sediments and lesser intrusives. These rocks are part of the Kedougou-Kenieba Inlier and are locally crosscut by splays of the Kakadian-Kerekoto shear zone. The structural and geological setting is similar to world-class gold camps in West Africa and Canada, known for hosting multiple long-lived mines with great lateral and vertical extents.

Exploration History & Drilling Programs:

Oromin and its partners secured rights to the OJVG Gold Project through a successful open-tender bid process in 2004. Initial exploration in 2005 focused on testing historic showings and property-wide reconnaissance exploration programs that included geochemical sampling and geophysical surveys.

By year-end 2006, Oromin had spent US$11 million to methodically explore the OJVG Gold Project on a district-scale and define the highest priority gold targets. Initial drilling focused on testing "Golouma Style" high-grade gold targets and then shifted to defining resources within "Masato Style" Bulk Tonnage gold deposits similar to those being mined by Mineral Deposits Limited ("MDL") adjacent to the large OJVG Gold Project. Recent and ongoing drilling is directed toward upgrading and expanding resources within five Masato Style Bulk Tonnage deposits and four Golouma Style Higher Grade deposits, along with testing of priority exploration targets of both deposit types.

Gold Deposits & Resources:

As at mid-2010, the OJVG Gold Project hosted nine deposits plus many additional mineralized targets that merit further exploration. The 2010 feasibility study focused only on five of nine known deposits with open pit and underground resources. All five of these deposits -- Golouma South, Golouma West, Masato, Kerekounda and Kourouloulou - are open to considerable expansion laterally and at depth. The other four deposits (Niakafiri SW, Niakafiri SE, Maki Medina and Kobokoto) also have excellent upside potential to generate additional resources through ongoing drilling as do the two new discoveries Kinemba and Koutouniokollo. These bulk-tonnage deposits are good sources of soft oxide/weathered ores which can support increasing daily milling throughput and potential heap-leach processing opportunities. Recent studies at the largest bulk-tonnage deposit, Masato, show higher grade results that indicate significant potential for underground mining, as well as open-pit mining.

Click here for details of the current measured and indicated resource estimate containing 3.17 million (a 45% increase from a year ago) ounces gold, plus another 328,000 ounces in the inferred category, and the mineral reserve estimate of 1.42 million ounces. The mineral reserves stand at 1.42 million ounces gold grading 2.52 g/t.

Feasibility Study Highlights:

The 2010 feasibility study completed by SRK Consulting and Ausenco Solutions Canada Inc. focused on mining five deposits by a combination of open-pit and underground methods to feed a central carbon-in-leach (CIL) mill. Throughput rates range from 4,250 to 7,390 tonnes per day, with an average 89.2% gold recovery. The proposed US$291-million production facility would produce an average of 174,000 ounces per year at an estimated cash cost of US$409 per oz. in the first three years of a nine-year mine life. At a current gold price of US$1,200 per ounce, pre tax NPV of US$361 million would generate an IRR of 36.3% and a two-year payback. Ongoing engineering studies to be completed by year-end 2010 are focused on opportunities to improve project economics primarily by: upgrading and expanding resources within five deposits; evaluating the size and mining potential of four other deposits and two new discoveries not included in the study; evaluating the underground potential at Masato; drilling prospective new targets; and examining potential for heap-leach processing of low-grade stockpiles of soft oxide/weathered mineralization which was not included in the feasibility study.

Social and Environmental:

The OJVG Gold Project enjoys strong local support, reflecting Oromin's commitment to community consultation and high environmental and social standards. Approximately US$1 million has been invested to date on social programs, with particular emphasis on improving water quality and access, access to health services, education and training opportunities. OJVG has constructed numerous school buildings and health clinics throughout the Project area. An Environmental and Social Impact Assessment will be delivered to the Senegalese government in the fall of 2010.