Grandich latestGrandich has a Q & A on his blog this morning and he included an apparent news story on OLE that ran recently. It suggests all the ducks are indeed being lined up. Lets hope Chet doesn't screw it up this time
Peter: Thanks for all your insights and thoughtful comments during 2012; and especially for putting up with us (at times) knot heads. I know you are always trying to give us the best advice you can regardless of the outcome (no one forces anyone to read and follow your recommendations). God bless you and your family and have a wonderful Christmas. And put in a prayer for OLE…
Mike Morrison (and family) CA
Thank you Mike. I may yet eating these words but I don’t believe OLE needs prayers. I suggest you just re-read past comments of mine and also this news wire story where an OLE person again notes the possible sale of part or all the company. Let the reports due out come out and then we’ll see if some Novena’s are needed.
Oromin Seeks Investors to Start Output at Senegalese Gold Mine
2012-11-13 12:11:12.368 GMT
By Rose Skelton
Nov. 13 (Bloomberg) — Oromin Explorations Ltd.’s joint venture in Senegal will seek investors to start gold mining at its concession in the country’s east, which contains an estimated 3.78 million ounces.
Oromin is setting up a company in the West African nation to move from exploration to production, Aziz Sy, vice president of Senegalese operations, said in an interview in the capital, Dakar, yesterday.
“This should be finalized in two weeks’ time,” he said.
The company “will need $350 million to build the mine infrastructure” and production may begin in two years, Sy said.
Senegal, which has the second-biggest economy in West African’s eight-member currency union, is seeking to boost growth to 4.3 percent in 2013 from 3.7 percent this year with development of its mineral reserves. Teranga Gold Corp. mines gold at Sabadola and Mineral Deposits Ltd. mines zircon.
The government will hold 10 percent of the new company, with Oromin Joint Venture Group the remainder, Sy said.
Vancouver-based Oromin Explorations owns 43.5 percent of the joint venture with two closely held companies holding the rest, according to the company’s website. Oromin Joint Venture may sell all or part of the new company to investors, he said.
Oromin has spent $160 million at the concession, 650 kilometers (403 miles) east of Dakar, since it began exploration in 2005, Sy said. The site is estimated to have a mining life of nine years, he said. A feasibility study to be updated by the end of the year will probably add three years, he said.
The spot price for gold, which has gained 7.8 percent this year, traded at $1,728 an ounce by 11:38 a.m. in London. Oromin is planning for a “best-case scenario of the gold price at
$1,200 an ounce,” meaning investment will be paid back within two years, Sy said.