Oromin Explorations Ltd OLEPF

Cap. costs $297.1 million to $504.7 million dollar

[frankman]

Capital Cost Estimates (As at Q1 2013) Ouch and in Africa no less (Mali next door)

Pre-production development capital for project facilities is estimated to be approximately $297.1 million, which includes open pit mobile equipment costs, underground mine development for the Kerekounda and Kourloulou deposits, plant and infrastructure construction and commissioning costs, as well as site infrastructure construction costs plus contingency. Ongoing life-of-mine sustaining capital is $208.0 million, including underground mobile equipment replacements, waste facility expansions, sustaining capital estimates for fixed plant and infrastructure and ongoing underground development. The sustaining capital also covers the preproduction capital for later Golouma underground mines that commence development once the Golouma open pit mine has provided access.

A contingency has been added to the underlying capital cost estimates that reflects the level of risk associated with those estimates. The overall weighted-average contingency for the entire capital program is 11%. The capital cost estimate for the project is summarized in the following table.

Table 5: LOM Capital Cost Estimate

CAPITAL EXPENDITURE ($M USD)	Total	Initial	Sustaining
UG Mine Development Capital	30.6	2.9	27.7
UG Mine Mobile Equipment	59.6	20.5	39.0
UG Mine Infrastructure	4.4	1.1	3.2
Open Pit Mine Capital	80.0	31.3	48.7
Process Plant	70.6	67.1	3.5
Infrastructure	59.4	56.5	3.0
Sustaining Capital for Mill and Infrastructure	14.0	-	14.0
Indirects, Mine and Miscellaneous	52.6	50.0	2.6
Tailings, Water and Roads	44.7	19.8	24.8
Owners Costs	20.0	20.0	-
Closure	17.5	-	17.5
Contingency @ 11%	51.3	27.9	23.5
TOTAL CAPITAL COST	504.7	297.1	207.7

[parkssam]

Frankman  from your very first post you have slammed OLE. No problem but if you don't own the stock are you either short or just trying to save us from ourselves?   Oh and one little tidbit - those estimated costs are not even remotely out of whack so your tactics will be limited to the uninformed (which around here is many).

[frankman]

Remember Park those costs are subject to cost over runs (with my decades of experience has seen) . Not to mention the country risk factor. Those apply if everything goes to plan. How likely is that?

[findthegold]

there will be cost over runs..for sure...there will also be more gold in the ground from future exploration in the area...at the end of the day it is up to management of OLE and TGZ to get a deal done that will benefit OLE shareholders now and TGZ shareholders down the road

[tony1969]

Findthegold, I could not have said that better myself.  Well said and I totally agree.

[parkssam]

frankman  when you answer either you're short or savings us from ourselves I will respond further but until you do so you're nothing more than someone who thinks they're important and like to scare the little people.

[frankman]

More regurgited poster hype. Do you recognize a pump and dump folks. Grab your ankles. Too bad about the capex  Capital Cost Estimates (As at Q1 2013) Ouch and in Africa no less (Mali next door) Pre-production development capital for project facilities is estimated to be approximately $297.1 million, which includes open pit mobile equipment costs, underground mine development for the

[comet52]

So OLE is a pump and dump. Who knew!?   Thanks for taking the time to help us all out, frankman.

[arlene2]

comet52----frankman does not have a clue what is presently going on with Oromin......ALL his dire outlooks for this particular stock will be proven wrong within the next 60 days (most likely) , but no later than 90 days....All that education and experience that he claims to have will not have served him well on his conclusions re Oromin...Keep the faith-----Ignore the venomous

[frankman]

Capital Cost Estimates (As at Q1 2013) Ouch and in Africa no less (Mali next door) Pre-production development capital for project facilities is estimated to be approximately $297.1 million, which includes open pit mobile equipment costs, underground mine development for the Kerekounda and Kourloulou deposits, plant and infrastructure construction and commissioning costs, as well as site

[tony1969]

This is why they are going to merge or get bought out by TGZ franky. Don't you get it.

[tony1969]

In case you have not noticed franky, TGZ has the mill and most of the equipment needed to mine Oromin's property.  Yes they will incurr more expenses as they will be mining substantially more gold and be using more equipment but you can forget about those $300 million start up costs you are talking about. The mill and their proximty are the two most important synergies that will

[parkssam]

Tony, this poster frankman is not here for anything remotely what you and most others are. Having conversations with him actually make his type think they're relevant when in fact nothing could be further from the truth. You make a lot of sense in yout TGZ and OLE scenario albeit far too many times. TGZ supporters can try and spin it differently but TGZ spent tens of millions of dollars on

[tony1969]

Thanks parks.  It does not take a genius to know that TGZ was high grading.  That is how they met last years ounce projections whlie not overspending.  This year will be different as they already stated.  I truly do not think Chet will overplay his hand this time. He will not give us away but he knows that conditions in the junior market are not ideal (understatement) to be