July 15, 2010 / 3:09 PM / 8 years ago

UPDATE 1-Oromin sees Senegal mine gold recovery rate at 89.2 pct

* Sees throughput rates at 4,250-7,390 tpd

* Sees first 3 yrs gold production averaging 196,000/yr

* Sees initial capital cost at $291 mln

July 15 (Reuters) - Oromin Explorations Ltd OLE.TO said a feasibility study showed its gold mine in Senegal would produce gold at a recovery rate of 89.2 percent, sending its shares up as much as 10 percent. The company said the Oromin Joint Venture Group Ltd mine is estimated to have a life of nine years at daily throughput rates ranging from 4,250 tons per day (tpd) to 7,390 tpd.

The company also said the feasibility test was completed but was only conducted on five gold deposits out of nine, to fulfil the requirements of the mining license granted in January for 15 years.

The five deposits are all open to considerable expansion and the value of the remaining mineralized targets will be evaluated by drill testing during the remainder of 2010.

The company said for the first three years of operation, production would average at 196,000 gold annually at a cash cost of C$409 per ounce.

The company also said initial capital cost is estimated at $291 million, including contingency of $23 million.

Shares of the company were trading up 6 Canadian cents at 99 Canadian cents Thursday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Aradhana Aravindan) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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