report from oromin agm

i was at the oromin AGM earlier this week .. i hope its ok if i post oromin stuff here since i am a shareholder of both ..and since the genesis of the deposits are the same and continuous from one property to another ..

cheers

caoiche



as usual the office was plastered with maps and diagrams floor to cieling .. satellite images taken in march this year show the progress of both mdl and oromin the pad of mdl 's plant is easily recognizable the hundreds of trenches are visable as are many of the drill pads .. the beginnings of the water dams and some captured water are easily recognizable .. the airstrip and the laterite caps are also easily recognized ..
in attendence were Chet, David Mallo, Ian Brown, Doug Turnbull David Scott and James Stewart. James ran the business part of the meeting efficiently as last year and you could pretty much read the minutes from last year to get a replay of this year .. stock options, directors etc .. everything passed with no objections ..

there were about 25 million shares represented at the meeting almost 50% so quorum was not an issue ..lol

shareholders present were Ron, Ryan and myself with two other gentlemen present from last year and again I didn’t get their names .. apologies if they are reading this .. there was at least one broker present and again apologies I didn’t get his name or house ..


there was not really a formal presentation this year although it was set up …the format was more of a Q&A with chet and david .. and all pertinent info was discussed as we looked at the slide show a bit later ..

we started off talking about the oil deal ..the “argentine tango” as chet put it .. basically we got awarded this property in a different time of 25 dollar oil and no one was interested in exploring in our neighbourhood .. since petrolifera’s discovery to the south of us and 78 dollar oil there has been a significant increase in intrest around our permit and its surroundings ..new permits are going for “astronomical” amounts of money.. as always there is only one signature left and oromin and otto are putting as much pressure on the government as they can to get this thing done .. the discussions are ongoing but there is no doubt or negotiation that the permits are not ours .. and we will be drilling them! as always it is about timing and talking to the right people at the right time .. there is another flight going to mendoza next week ..i am confident there will be movement on the oil issue soon .. the company is still slated to be split into oromin oil and oromin gold ..i just made those names up so don’t hold anyone to them ..lol

and for the main event Sabodala .. WOW .. I have said it before this thing will be a monster! .. we spent a lot of time talking about the golouma deposits merging and the structure of the deposit .. the deposit is a dilational infilling where movement between two brittle masses opens up space in the rock .. the fluids in motion will find those spaces and flow along them until they have reason to drop the gold out of solution .. could be chemical or pressure temperature related .. I wont bore with the details .. needless to say where there is more space there is more room for fluid transport and where there are more fluids there is more likleyhood of deposition .. I was lucky enough to see some of the core and trench samples and let me tell you I have never seen so much visible gold in such quantity ..they were indeed very impressive samples .. most core I see at shows and such have so much other ore associated with gold it is very hard to see the tiny glitters .. and I did see some core many others would be showing off under a microscope saying VG .. but the blebs of gold I say were fingernail size and not hard to see at all ..again .. very impressive .. the structure of the golouma deposit itself is unique to the area .. the norm is for the deposits to follow the two main shear corridors or the secondary structures trending ne/sw .. which mdl hypothesizes are the feeder structures depositing in the main shear .. golouma is open in ALL directions and at depth .. which can be quite deep .. I learned today some of the deposits on the mali side can be up to 1.6 kilometers deep .. masato would not be economic at those depths but golouma would!.. it is unknown at this point how deep the main shear structures go .. it could be hundreds of meters deep or over 10 kilometers deep .. no one knows .. my own personal theory on mdl eastern flats is that it may be a horizontal shear plane that has detached from the lower rocks and become mineralized ..just my wild arse guess at this point not knowing the orientation of the shears on mdl land. .. more will be known when the pit is started .. the golouma deposit makes a bit of a dog leg turn to the west and it will be drilled out blind under the laterite cap .. there are many areas where the soil geochem and chargeability are muted but some of the largest finds on the mali side were blind .. we very well may have the motherlode right under our feet …we will delineate the best we have now but if something better is found we will concentrate on the best zones .. and IMHO we will find some ..

there are many other targets .. around 30 I think … the next drill ready target is sekoto ..about 1 km square soil anomaly.. looking at the maps it is farther away from the main shears .. the theory is that it is a different deposit type from the general sabodala type .. it is looking more like a porphyry deposit than the structurally controlled ones we have found so far .. makes the whole story much more interesting .. it could be of a different age meaning several deposition events on the property .. also could have a different chemical suite associated .. we will have to wait and see .

.korolo also one to watch …

masato is much more like mdl’s deposit in both width and grade .. it is on trend with many of the mdl drill targets this round and may well link to nikifiri to the south ..and even the maki medina farther south ..

important events will be the linking of deposits such as the golouma west and northwest ..tonnage will build FAST .. I think we will find more of the golouma deposits merging in the not too distant future ..into one super golouma deposit .. sabodala north is on trend with the main sabodala pit of mdl ..so I expect similar grades and widths from there .. the nikifiri is not a priority since we know what we have and its proximity to mdl’s drilling we can speculate on grades .. it is an easy drill and will add ounces fast .. I think the nikifiri deposit is at least double what mdl is reporting at 350K ounces they will have a revised count in September I believe .. my bet is on 7 to 800k on nikifiri and near 3 on the main body ..

other notes .. we have 2 more RC rigs arriving after the rainy season

there was a jv announced with iamgold and randgold on a property south of us .. intrest in the area is building and money is going into the ground ..

we have about 15 mil in the kitty with 17 more in options and warrants .. no need for another financing for a while ..

the feasibility with 40m grid will be out around feb 08 contracted to SRK ..

mdl will be doing some condemnation drilling on the northwest side of the property to be used for water and tailings .. they will also test a few areas of intrest for us in the vicinity ..

as always mdl and oromin are doing right by the local population helping with basic needs water wells medical and educational aid etc ..

it has been a long while since I was this excited about a project and am proud to be a shareholder of a fine and reputable group as we have in oromin ..

there is still lots to be told in this story every NR that comes out has another clue to the final chapter if you look hard enough it becomes obvious where we are going .. chet is on a course to production with a central mill with feed from many deposits .. this all equals many ounces of gold and profits for anyone smart enough to get in cheap .. I will be picking up more shares in the coming weeks .. this is not to say if an offer comes in at the right price we would not take it .. after all chet has sold many a deposit to barrick for a pretty nice pile of change .. lol

in my opinion we are undervalued by about half .. the story gets better every hole and every NR and every time 2 deposits merge .. upward pressure is building and there will be a tipping point where the broader market sits up and takes notice .. will it be a MAJOR jv partner .. a massive hole with great length and excellent grade .. will it be a surprise to the upside on the feasibility .. I don’t know but it will come ..

happy investing and my warmest regards to all ..

caliche

PS

if anyone has any direct questions I will do my very best to answer them ..