-- Posted Friday, 16 December 2005 | Digg This Article
Two High Grade Sections within TRX-06:
18.71/g/t au over 6 meters
49.95 g/t au over 4 meters
And 7.08 g/t over 16 meters within TRX-04
On December 12, 2005, Oromin (OLE-TSX) published a press release on the work being done on their Sabodala Project in Eastern Senegal. Since, we’ve been covering the project for quite some time; I thought it might benefit our readers to emphasize the highlights of the current press release.
Let me begin by saying this is an exciting program and the results to date reinforce this concept. The surface sampling, hand trenching, the geologic mapping, the “Fugro Airborne Surveys”, and the geo-chemical work, have all gone better than initially anticipated. It is rare that one layer fits together with the next layer in such an integrated fashion; it is truly “hand in glove”.
I’d like you to think of this project to date as the development of a building’s foundation. All the work that has been completed is creating a stronger foundation for the identification of viable drill targets that will eventually be drilled out. And so far that foundation is rock solid. If you review this current press release which can be found on the company’s website (www.oromin.com), and then go back and review the last several releases dealing with the mechanics of this undertaking, it is obvious that this group is being very methodical, very thorough in the way they are approaching the exploration of this sizeable project.
The mechanized trenching results listed in the PR in combination with the up-coming drilling program announced by the company are promising indeed.
We’ll cut to the chase and divide the current press release into three categories:
1. The Proposed Drilling Program to begin in January 2006
2. A $6,000,000 Financing
3. Technical Results from Mechanized Trenching.
The 10,000 Meter Drill Program
What first caught my eye was the planned drilling program, the headline being “Oromin Set to begin 10,000 meter drill Program.” That’s a substantial drill program at this stage of the game, especially considering that there has been no drilling by Oromin Explorations on the property to date. Just to offer a frame of reference, often times an initial drilling program on a newly defined property will run between 2,000-4,000 meters.
Management has been keeping a watchful eye on four containers shipped from Canada that have arrived in Africa, cleared customs, and have been delivered to Oromin’s exploration camp at the Sabodala property. That camp will include a complete sample preparation laboratory, personnel facilities and two recently completed water wells. The water will supply both the needs of the camp and the needs of the drilling program.
Two drill rigs included in those containers have been reassembled and are ready to go to work. Shipping anything of this size and substance across oceans and continents in this day and age is an adventure. This has been no different. There were delays. Suffice to say that management is relieved that the containers and their contents have made it to their final destination. Little has been said since those containers were shipped out several months ago, but I can assure you that they’ve been tracked very carefully. Having drill rigs of this size at one’s disposal along with parts and peripherals, is a big plus and demonstrates the level of commitment that is being focused on this project.
Financing
The second item that caught my attention is that a $6,000,000 financing has been arranged in order to execute the drilling program. Again, the details are outlined in the release. It takes money to move projects of this size foreword, and this is another very positive step in the right direction.
Technical Information
Thirdly, in my opinion the mechanized trenching results listed in the PR for the six trenches at Golouma can be described as both exciting and promising. The PR states that they show excellent continuity and grade. There has also been an extension of where the previous drill targets were previously indicated. A key concept in the release states that the results from this mechanized trenching (a backhoe or a machine of that nature as opposed to hand trenching) indicate along-trend continuity and the presence of additional mineralized zones beyond the limited area initially sampled. Simply put, this a positive because it offers up a larger area to seek out targets and the Golouma West area is one of Oromin’s priority drill targets for the upcoming program.
We’re on Course and Ready to Go
That is the real news that I take away from this PR. Additionally, the idea that the surface sampling, and now the mechanized trenching results have been equally encouraging gives one reason for optimism.
Consider also that this is a very large project and we’re only at the beginning of the process. I’ve heard it said that there are few resource projects of this magnitude that are as far along in their stage of development as this one. That is to say that this group, headed by Chet Idziszek, has had the Senegal project for only ten months, and given the fact that no drilling per se has been undertaken, and given the extensive scope and size of the project, there is an enormous amount of “gold-friendly” data that has already been accumulated. Events are moving rapidly in a very gold-positive environment.
I want to take you back to the beginning of the story which was some ten months ago. If you take the time, and read the previous press releases, you’ll see just how fast the entire team has moved this project along. When I say team, I mean team. From the professionals in the office who answer the phones and keep track of the piles of paperwork to the geologists in the field who are “kicking rocks” to senior management endeavoring to put all the pieces of the puzzle together, this has been a team effort. To be successful in this business, that’s exactly what you need—team efforts.
How Big is Big?
In the comprehensive six page full color Oromin brochure which can still be acquired from their website (www.oromin.com), or directly from the company, it is stated that “the concession covers an approximate 22 kilometer extent of a minimum of a 5-kilometer-wide structural corridor hosting all known deposits and prospects in the area including the Sabodala gold deposit where MDL of Australia has outlined a resource of 945,000 ounces of gold”. So, this structural corridor measures some 13 miles long by approximately 3 miles wide. That’s an easy way to describe it for our American audiences not accustomed to working with the metric system. (1000 meters is a kilometer and a kilometer is 0.621 miles). The point being is that this is a substantial concession and there is only one small portion of it actually being worked; although the larger portion of it continues to be mapped and explored. Now don’t forget, this property en toto is some 230 kilometers square! That’s huge! It’s about 142 square miles of land which offers up enormous potential in sheer size alone!
The progress on all of the key fronts has been impressive to say the least.
MDL or Mineral Deposits Ltd., owner of an adjacent concession, has outlined a Resource of 945,000 ounces of gold.
I’d like to make quick mention of MDL or Mineral Deposits Ltd which is a company based out of Australia. They act as an important frame of reference for Oromin because both share a common boundary. The PR states that “in addition to the Golouma West area, Oromin has priority drill targets adjacent to the southern boundary of the Sabadola Exploitation concession owned by MDL where broad coincident geochemical and geophysical anomalies extend for a minimum of two kilometers southward onto Oromin’s concession.
The important thing to remember here is that MDL is working an ongoing (minimum) 64,000 meter drilling program in order to complete their own bankable feasibility study and to date they have outlined a resource in the vicinity of 945,000 ounces of gold.
There have been a few questions regarding who is working where so I’ll try and clear this up. Again, please acquire a copy of the six page color brochure on the Senegal project. Under the heading of Regional and Property Geology, you’ll find a map in the lower left hand corner of the page. The larger white box is the Sabodala Exploration Concession and is the one being operated by the Mine-Tech Group and Oromin Explorations. The smaller black box in the same area is the MDL project and is called the Sabodala Exploitation Concession. The yellow dot on the map is the location of the Sabodala gold deposit Recently MDL has changed the names of parts of their concession so as to more easily discern the various areas being explored in the region by the different parties involved.
Conclusion
The press release put out by Oromin Resources is refreshingly positive. There is money in the bank, a time-table for drilling, targets to drill, equipment on site, and a neighbor that looks poised to release additional positive results on a much smaller piece of property. I’ve even heard through the grapevine that work may be ongoing through the Holidays. Chalk that up to enthusiasm or whatever you will, but it seems to me that some folks are quite engaged.
And finally, I would be remiss if I did not remind you that Oromin Exporations is also working an oil and gas play in Argentina that looks equally as promising. Oromin has also acquired a gold property in Brazil that is shared with Lund Gold. I’ll be certain to bring you any additional news dealing with these particular sectors of the company when I learn of it. Needless to say, “there’s a whole lot goin’ on!”
Sometimes you get the donut and sometimes you get the hole. It would appear to me personally that Oromin has the donut; quite a large donut at that.
In this gold friendly environment, that in my opinion has every reason to get even better, it might not be a bad idea to consider a bite or two. Yes I am a shareholder, and have taken a few bites myself. I shall continue to do so.
Until Next Time,
D. Stewart Armstrong
Consultant to the Junior Mining Industry
-- Posted Friday, 16 December 2005 | Digg This Article
