Senegal’s Government has granted a 15-year mining license to a joint venture which includes Oromin for the Sabodola Gold Project.
Oromin can now start its mining operations once it has completed its feasibility study, which is currently being prepared by SRK Consulting and Ausenco Limited.
The Sabodala Gold Project is owned by the Oromin Joint Venture Group which includes Oromin Explorations, Bendon International and Badr Investment and Finance.
It is expected that work at the mine will cost about $90m. During the first quarter of 2008, the company negotiated a debt financing package to provide total facilities of $130m for the completion of the construction and development phases and an asset-based finance lease for the site mining fleet.
The feasibility study currently underway will examine how to fast-track development for the proposed open-pit/underground mine complex, with initial production from five deposits feeding a central, 4,400TPD carbon-in-leach mill which can be increased to about 7,000TPD when processing soft oxide and saprolite ores.
The feasibility study is expected to be completed by June 2010.