OJVG Sabodala Gold Project, West Africa
Transforming a grassroots prospect into a potential new mine is an accomplishment for any junior company, but Oromin Explorations Ltd. is poised to achieve a more ambitious goal at its flagship project in the Sabodala District of eastern Senegal. A Full Feasibility Study scheduled for completion by mid-2010 will examine the fast-track development of a proposed open-pit/underground mine complex, with initial production from five deposits feeding a central 4,400-TPD carbon-in-leach mill that can be increased to about 7,000 TPD when processing soft oxide and saprolite ores.
It appears Oromin has a gold-mining camp, rather than a gold mine, in the making.
Oromin, on behalf of the Oromin Joint Venture Group (OJVG), began exploration in the region five years ago after securing rights to the 212-sq-km OJVG Sabodala Gold Project through an open tender process. The goal was to define at least one deposit that could be advanced to pre-feasibility within a short-term window set by the government under the tender process. Mineral Deposits Limited (MDL) had a similar goal at its nearby 20-sq-km Sabodala Project. Both companies met early success by drilling bulk-tonnage deposits amenable to open-pit mining, similar to those mined in established gold camps in neighboring Mali, now Africa’s third largest gold producer.
Since then, more than ten million ounces of gold has been reported by various companies (including Oromin) in the district. MDL opened the first gold mine in 2009, and now plans to double capacity to 4 million tonnes per year by mid-2011.
One of Oromin’s biggest challenges was the need to systematically evaluate the highest priority gold targets within a large concession hosting multiple deposits of different types within a 22-km-long, 5-to-8-km wide, northeast trending corridor. Initial drilling focused on “Masato Style” bulk-tonnage open-pit deposits on the Western Side of the Structural Corridor, similar to those mined at MDL’s concession. But as exploration progressed, a number of higher-grade “Golouma Style” deposits with combined open-pit and underground potential were defined on the Eastern Side of the Structural Corridor. They represented an attractive target because of their similarities to shear-hosted vein-type deposits in Canada’s Red Lake and Kirkland Lake camps and Ghana’s producing camps. These world-class camps are known for high-grade deposits with considerable lateral and vertical extension and long lives.
The Full Feasibility will be based on an updated resource estimate for seven advanced deposits, including the first five scheduled for initial production. Based on the number of drill rigs currently working, an increase in resources is greatly anticipated. I believe it can include expansion at the high-grade Kerekounda and Kourouloulou deposits. (OJVG’s existing resource of 2.19 M oz. Indicated and 0.35 M oz. Inferred is based only on drilling to May 2009, and does not include drilling below conceptual open pits or at five new discoveries). Metallurgical tests confirm excellent carbon-in-leach-only process recoveries ranging from 88.3% to 96.7% for these five deposits. Initial resource estimates for four new discoveries is expected to follow. Oromin also has another 18 gold targets that warrant further exploration. Six drill rigs are currently working in further expansion of resources.
Oromin has recently reported a number of important milestones. The Government of Senegal has granted OJVG a 15-year renewable Mining License, following approval of its Strategic Environmental Evaluation Report. And Oromin’s progress has not gone unnoticed, as IAMGOLD Corp. holds an approximate 15.6% interest in the Company. It’s no coincidence that IAMGOLD was a gold exploration and mining pioneer in Mali a decade or so ago, just as Oromin is a gold exploration leader in Senegal today.
Stay Tuned.