number 2 OROMIN ANNOUNCES POSITIVE RESULTS FOR THE UPDATED 2013 HEAP LEACH
PRELIMINARY ECONOMIC ASSESSMENT AT THE OJVG GOLD PROJECT IN SENEGAL
Oromin Explorations Ltd. (“Oromin” or the “Company”), on behalf of Oromin Joint Venture Group Ltd.
(“OJVG”), is pleased to announce results for its updated 2013 Heap Leach Preliminary Economic
Assessment (“2013 HL PEA”) for its OJVG Gold Project (the “Project”) in Senegal, West Africa. The
2013 HL PEA was compiled by Oromin under the direction of its V.P. of Engineering, Ken Kuchling,
P.Eng., with the assistance of external independent consultants, including SRK Consulting (Canada) Ltd.
(“SRK”) who completed all of the resource models. The 2013 HL PEA is an update to the Project’s 2011
heap leach PEA (“2011 HL PEA”) completed by SRK and Ausenco Solutions Canada Inc. (“Ausenco”).
The PEA has been completed concurrently with the Company’s recently announced 2013 CIL feasibility
study (“FS”) update. The 2013 HL PEA evaluates deposits and potential mineable resources that are not
included as part of the 2013 CIL FS. All figures presented are in US Dollars.
HIGHLIGHTS
•
Several open pit gold deposits will provide a heap leach production period of just over
14 years
•
Average annual heap leach gold production for first full three years of production is
36,000 ounces per year at a $760 operating cash cost per ounce
•
Average annual life of mine (“LOM”) heap leach gold production is 27,000 ounces per
year at an operating cash cost of $929 per ounce
•
Average LOM gold recovery of 70%
•
Estimated start-up capital cost of $54 million including $10.5 million contingency
•
At a gold price of $1550/oz Net Present Value (“NPV”) pre-tax of $98 million and aftertax
of $76 million at a 5% discount rate generating an after-tax internal rate of return
(“IRR”) of 36% with an 1.9 year payback
•
Current heap leach resources justify throughput expansion towards increased annual
gold production
•
All heap leach deposits remain open to expansion
2
Project Summary
The heap leach project can be developed, as originally proposed in the 2011 HL PEA, by open pit mining
methods with material trucked from various deposits to a central plant for crushing, agglomeration, and
heap leaching (Oromin news release of May 5, 2011). In order to remain consistent with the 2011 study,
no change in the original 2 million tonnes per year production rate was assumed, although the defined
production tonnage indicates that a heap leach capacity increase may be warranted.
The production plan envisioned in the 2013 HL PEA is based on a potentially mineable portion of the
indicated plus inferred mineral resource of 28.4 million tonnes at a grade of 0.61 g/t containing 560,000
ounces of gold which will be mined over a 14 year mine life. The average annual production for the first
3 years is approximately 36,000 ounces of gold per year at an average operating cost of $760 per ounce,
and over the mine life, approximately 27,000 ounces of gold per year at an average o