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I do have a copy of the previous report dated May 16, 2011. Here McClintock wrote:
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Good Resource Growth – More to Come
EVENT – Release of an Updated Resource for OJVG
The Oromin Joint Venture Group (43.5% Oromin Exploration - OLE) released an
updated resource for its gold project in Senegal. Along with a prior press release on
May 5, 2011, the total resource so far identified on the property amounts to 3.8 mm
ounces of gold, up from a prior resource estimate of 3.5 mm ounces in September
2010. However, the two resource estimates are not directly comparable since not all
resources in the September estimate were constrained by economic assumptions.
IMPACT – Positive. Higher Quality Resources and Still Open
Resources remain open for material expansion, particularly to depth: Resources are
split into two styles – a high-grade Golouma type and lower-grade, more oxidized
Masato type. Both types are open to depth, but the Golouma resources are much
higher grade. Intercepts of deep Golouma mineralization drilled below the resource
have assayed 81.8 g/t over 6 metres and 421.4 g/t over three metres – two
spectacular intercepts. However, the average of the holes drilled (capping high
grades at 32 g/t) is more like 16.0 g/t over 5.6 metres, still good grade over very
mineable widths. We judge there is a high probability that substantial, higher grade
resources will be added at depth. To reflect this potential, we upgraded the value for
exploration potential to 5.5 mm ounces from 4.5 mm ounces, causing the NAV of
OLE to increase to $3.07 from $2.89 previously.
Enhanced economic potential of resources: The press release also included results
of optimizing the 2010 Feasibility study and included the results of a Preliminary
Economic Assessment of “heap-leach” material. At $1,200 gold price and a 3% DCF,
project economics were enhanced by $100 million to $461 million, a 27% increase in
value. The addition of a heap-leach operation in our financial model increased the
NAVPS of OLE by .21, bring the NAVPS to $3.28.
Better quality resource estimate: All resources in the current estimate of 3.8 mm
ounces have been constrained by economic assumptions, and the resource
incorporates data from ~128 additional drill holes – meaning the “quality” in
confidence in resource is much better.
ACTION – We See Value. Remain a BUY, with a Higher Target
Due to higher underlying value, we are raising our target price to $3.25 from $2.89
per share.