production and exploration, page-5

Hi Rowingboat,
I don't have any handle on this, except that the industry is starting to come to the notice of the financial magicians and Senegal is a ripe situation on a strongly emerging greenstone belt.
Oromin only have 43.5% of the OJVG with Gulf and French interests holding the balance. my guess is that negotiating this one would be ultra difficult.
It was reported that relations between TGZ and OJVG were tepid at best, but that may well have changed.
It's not clear how TGZ could benefit.from a merger as they already have a profitable operation and the increased grade of OJVG at 2.5 gpt wouldn't be enough to balance the acquisition premium and extra haulage.
A clearer plan would seem to be to bring in some richer ore such as Gora at 6gpt which currently is just 100,000oz in shallow pit.
The $20m regional exploration budget appears to be saying that they aim to find sources of richer ore in the exploration areas as well as looking to take over other tempting ground such as the recent smallish addition.
I've held some of this stock since it was New Hampton Gold on the basis that the management were straight....this has proved to be the case.
Never flashy just methodical.
Guess I'm just in for the long haul !
Griff