Depth Extent and Continuity of Surface Results Confirmed by Initial Drilling at Sabodala
Wednesday April 5, 5:54 pm ET
VANCOUVER, BRITISH COLUMBIA–(CCNMatthews - April 5, 2006) - Oromin Explorations Ltd. (TSX VENTURE:OLE - News)
Highlights:
- Depth extent and continuity of surface results confirmed by drilling
- New Gold zone at Golouma Northwest discovered by trenching
- 17 New drill targets identified
- Pace of drilling to be accelerated
From Chet Idziszek, CEO:
Oromin Explorations Ltd. is pleased to report the results from its initial drilling on its Sabodala Property in eastern Senegal. Oromin has now completed ten drill holes at the five target areas selected for the initial drilling evaluation and has results for five drill holes completed at four of these target areas (please see attached map for drill hole locations). Drilling is ongoing and will be accelerated in light of these initial results.
The target areas evaluated in these first ten holes are the Niakifiri South area, the Masato area and three zones within the broad Golouma gold geochemical anomaly. Results are pending for the Masato area and one of the two drill holes at Niakafiri. The assay results listed below confirm the continuity at depth of gold mineralization encountered by Oromin in surface trenching and, along with the extensive geochemical anomalies discussed in Oromin’s previous news releases, confirm the significant potential of the mineralized zones. End-From Oromin Press Release dated April 5, 2006
Dear People:
Several weeks ago, I wrote an article on Oromin Explorations (OLE-TSX) and the price was about $1.85C. Currently the price is around $2.25C. I own a position in the company and I’m very biased. Please take that into consideration. I also purchased a very large position in the open market so take that into consideration as well. In my opinion this is a company that could soar past share price levels that one might not consider logical. Why? They not only have the perceived goods, they’ve now proven they have the real goods; and it’s only the very beginning of the exploration process. In addition, the concession is absolutely huge-about 150 square miles.
As a quick aside, writers are always inserting these clauses that state, “In my opinion”, or “I am biased” or “I have a position”. These are included so readers are put on notice that there could be a bias to the piece. Those statements are for the protection of the writers, full disclosure for the companies to which we refer, and for the total transparency of everyone involved. It is a way to put the brakes on if you will. Yes, I know everyone is sick of hearing these disclaimers but look at them as “heads-up” statements for your own protection—wake up calls if you will.
However, Oromin is one of those companies along with MMRSF, GPXM, WEX, BUF.U, and CRCUF that I’d like people to review because in my opinion, some real money can be made if they don’t wait too long to review, and then act upon, these stories. After all who wants to pay $10.00 a share when you can pay $2.00? Wouldn’t you much rather pay for your “resources” at $2.00 a share as opposed to $7.50 or better?
If you believe as I do that gold is going to surpass $1000 an ounce, you’ll realize that prices are indeed going much higher. As always, the trick is to filter out the really good companies in which to invest and to do it at an early stage in the process. This is where you acquire your leverage and the quality junior mining companies are all about leverage to the price of gold and silver.
We are getting to the point when the days of the good old fifteen or fifty cent stock is seen only in the rear view mirror. You can lead a horse to water, and you know the rest. I’m going to keep on banging the drum with the hopes that you will begin to bang your own drum. Yes, I have a few companies that are still in the $.20 to $.30 range and I will bring them to your attention when the time is right.
Banging the Drum Louder!
I’ve been banging Oromin’s drum for quite some time now and I’m going to bang a little louder and more frequently. Here’s why.
The latest press release put out by the company just several days ago offered some very promising results. Drill hole number 3 or DH-3 was promising. The truth be told —it was especially promising. Please review the press release that is on the company’s web site at www.oromin.com. It is there you’ll also find the current press release dated April 5, 2006 and the map situated at the beginning of this piece.
I am not going over the release in detail as it is all there in black and white for your review. Again review the numbers of DH-3 and you’ll see why everyone, including management, is so excited.
Five holes were drilled in that program and the corresponding results were listed. In addition to that we have the trenching results such as, TRX 18 on Golouma South , yielding 12.35 g/t gold over 25 meters. The trenching results are important as they are assisting the geological team determine new targets. Also, it is important to understand the soil composition in this area. The trenching with all their spectacular results are an important component of the program. The soil is an oxidized mineralization and it’s often easier to work and evaluate it. As such, these extensive trenching programs have offered up enormous amounts of information.
Of course, we need to understand that the first objective is to identity the parameters of any deposit—at surface, at depth and which direction any deposit might be situated. After that we can evaluate other possibilities on the property and here is the key point. The trenching systems being worked are proving up extraordinary numbers of drill targets in several different areas. At this time, most of the property has not been adequately explored leaving open the probabilities that many more excellent targets are yet to be discovered.
As a note in passing, there were three new targets identified on the project over the time the press release was being put together. They were not included in the PR.
Numbers on the Above Map!
Every one of the numbers on the enclosed map represents drill targets. Those are a plethora of drill targets and they are only going to increase in size and number as this project moves forward! Additionally, the team continues to expand the targets on a weekly basis.
The Crux of the Issue: Size Matters!
The real crux of the issue is the sheer enormity of the size and scope of this project. In terms of these initial results, what we currently have here is a pin prick on the butt of an elephant. That is the only way to describe how large this Sabodala project really is. The elephant has been pricked and it doesn’t even feel it.
If you look at the above map, you’ll see a black box at the top and center of it. This represents the concession of Mineral Deposits Limited, an Australian Company that is contiguous to Oromin’s project. MDL’s concession is about 20 square Kilometers or about 7 square miles in round figures. Oromin’s project is approximately 230 square kilometers which computes out to about 90 square miles in round figures. At the top of the map and to the right of the MDL “box” you’ll see three numbers 1-2-3. If you travel north from these locations you will be at the northern sector of this Oromin concession and from these 1-2-3 points we’re referring to on the map, it’s about nine miles in round figures.
I had a reader from Japan write in an offer a formula for converting square Kilometers into miles. I am going to include it for future reference, and thank you Jeremy! Take the number such as MDL’s 20 square kilometers and multiply it by 0.6214 and then 0.6214 again. 20 x 0.6214 x 0.6214 = 7.72 square miles. The 0.6214 represents the mile in kilometers. I for one am not that well versed in metric conversions, but this should help us in the future.
Where the Twain Shall Meet
I’d like you to look at the bottom of the MDL Rectangle. You’ll see that Niakafiri South transcends the boundary and flows on to Oromin’s concession. This will ultimately turn out to be a mutual exercise along the boundary line. MDL owns and operates the Northern Section and OLE has the southern section.
Just for the record, MDL has discovered a resource in the vicinity of one million ounces on their property.
Key Points
New Targets
To date, Oromin’s property-wide reconnaissance and detailed follow-up exploration has identified at least 17 (now over 20) new exploration targets within its 230 square kilometer (about 150 square mile) Sabodala exploration concession. The rate at which these numerous early-stage exploration discoveries throughout the concession were made further shows the relatively unexplored nature of this prolific structural environment. Ongoing programs of detailed mapping, sampling, geophysics and trenching will assist Oromin in prioritizing the drilling evaluation for these new targets.
The Golouma gold geochemical anomaly presently measures 1.5 by 3.0 kilometres in extent and is open to expansion to the south and west. Soil geochemistry, IP geophysics, trenching and now drilling suggest that the Golouma area hosts multiple zones of gold mineralization.
Conclusion
Gold has hit the magical $600 level, and consequently had the traders scurrying for cover. Why is that? I believe it is that people still are not thinking for themselves. They believe that there just has to be an inevitable correction because we hit the $600 milestone. The same thing is going to occur at $700 -$800 and $1000 gold.
I’ve actually been hearing that some gold companies are beginning to hedge again. It appears to me that some people never learn. I personally don’t want to be involved in any company that is hedging in this geo-political-economic environment.
I still want you to remember that 1980 gold at $850 should be somewhere north of $2000 per ounce in 2006 taking into consideration inflation and all the other financial miscues perpetrated on the American public.
And People, remember that the futures markets and the junior gold markets are two different critters! I just wrote a piece titled “What in the World is it Going to Take?” You can find it on GoldSeek.com this week. It appears as though it wasn’t $600 after all. But really, I’m being facetious because the jury is still out in terms of what it is going to take to get the public involved in this bullish gold market.
When the market reaches these key round number levels such as $600 US, everyone is expecting a correction. Perhaps it will retrace back to $575? And so the traders rush out and liquidate positions thinking that they may be caught on the wrong side of a move. After putting their collective toes in the water, they’ll retreat to whatever level they believe to be safe and then take the pulse. However, don’t forget that the market is still looking out six months into the future, not six hours. The market might just keep moving, leaving all to scratch their collective heads.
As far as Oromin is concerned, I’d like you to look out six months. This project is just beginning. Now the pace of drilling is to be accelerated. Everything about it has been positive from the beginning; from the grid work, to the trenching, to the drilling, and now to the initial drill results. And we haven’t even begun to talk about the oil and gas play in Argentina.
The size of the project, the enormity of it, offers so much possibility that one can only imagine.
I’ll say one thing in conclusion, other than repeating all of the disclaimers I’ve issued in past articles that are in the GoldSeek.com archives, and that is that one doesn’t need a huge position to participate in this type of project. I honestly believe I’ll still be recommending OLE at $7.00 US because the work will have caught up with the potential and it will all be escalating upward in concert with the aforementioned geopolitical-financial-economic environment.
Do I know this with absolute certainty? Of course not, but I’ve got a relatively good idea based upon everything I’ve seen for the past year, that the old “to the moon Alice, to the Moon”, scenario truly is not that far off.
Until Next Time,
D. Stewart Armstrong
Posted by D.Stewart Armstrong in Articles