Senegal gold project proves economically viable

Canada-based Oromin Explorations has announced that a feasibility study for a proposed open pit and underground mine at its Oromin Joint Venture Group Limited  (OJVG) gold project in eastern Senegal has shown that the venture is economically viable.

“We are pleased with the conclusions of the feasibility study despite the fact that, due to time constraints related to issuance of the mining licence, it presents only a portion of the overall project value as it was based on the production from only five of the nine known gold deposits. The five deposits are all open to considerable expansion and the value of the remaining mineralised targets will be evaluated by drill testing during the remainder of 2010. Further resource updates are expected in August and again by year end 2010,” Oromin chief executive officer, Chet Idziszek, said.

“The positive results from the feasibility study demonstrate that the OJVG gold project is currently economic and clearly shows significant upside potential. For example, indicated resources at the higher grade Golouma deposits currently contain 1.2 million ounces of indicated gold resources to approximately 300 metres vertical extent, however, the deposits remain open at depth.

“The completion of the feasibility study at this time was done to fulfill the requirements of the mining licence granted to OJVG in January this year and represents a crucial step forward in the development of the OJVG gold project. The study confirms a robust rate of return for investors and a project that will see significant investment into Senegal for the benefit of both the local community and the country as a whole,” Idziszek noted.

Oromin expects that detailed value engineering studies, followed by construction, will begin in the fourth quarter of 2010.