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Oromin Explorations Ltd OLEPF



GREY:OLEPF - Post by User

Comment by eebleron May 05, 2011 1:31pm
393 Views
Post# 18535517

RE: Heap Leach PEA has been issued

RE: Heap Leach PEA has been issuedThat was interesting...trying again:

Heap Leach PEA Highlights

Production from five open pit deposits via a heap leach process

Measured and indicated mineral resources for the four heap leach deposits

increased by 55% from September of last year to a total of 475,500 ounces; fifth

deposit update pending

Life of heap leach operation estimated at nine years at a targeted processing rate

of 2.0 million tonnes per annum with an average head grade of 0.69 g/t and an

average 74% blended oxide/fresh ore recovery

First three full years of heap leach operations average 36,000 ounces of gold

production annually at an average cash cost of $566/oz

Using a gold price of $1,200 per ounce, pre-tax NPV for the heap leach operation

is estimated at $60 million (at a 3% discount rate) generating an IRR of 27.8%

and 2.4 year pay back

Using a current gold price of $1,500/oz, pre-tax NPV for the heap leach

operation is estimated at $111 million (at a 3% discount rate) generating an IRR

of 43.7% and 1.6 year pay back

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