OJVGGoldProjectFSTechReport-Mar2013-Plant & Infrastucture Capex

2CO003.
008 Oromin Joint Venture Group

ndependent Technical Report for the OJVG Golouma Gold Project, Sngal Page 280
NMW_DM_TS /WB_MN OJVG Golouma Gold_2012_FS_Technical_Report_2CO003 008_NMW_DM_TS_GA_DGP_20130315_Rev4 March 15, 2013
20.4.4 Ancillary Equipment
Costs for ancillary equipment were estimated by identifying all of the major, non-direct mining
equipment and calculating operating hours per year and cost per hour minus electricity and labour,
which were calculated separately. Equipment such as the surface loader, service vehicles,
ventilation fans, compressor, etc. were captured in the ancillary costs. The ancillary costs make up
about 8% of the total UG OPEX or about $1.9M/year.
20.4.5 Electricity
Electricity consumption estimates were made based on installed kilowatts and then factored by
usage and load. The average electrical load for the UG mine was estimated to be about 1MW and
equated to a cost of about $1.5M per annum. Approximately 70% of the UG mine's power
requirements come from ventilation fans. The number of main and auxiliary fans was estimated on
a yearly basis in accordance with the number of stopes and development ends being mined as well
as the number of deposits in operation.
20.4.6 Labour
The labour cost estimate was built on the assumption that no contract mining would take place. A
large contingent of expatriate technical, supervisory and training staff was deemed necessary
during pre-construction through the early years of production, tapering off as most of the mine
development is complete and the mine reaches a steady operating state. The main driver for the
reduction in expat labour over time was to reduce costs as local labour costs are considerably
lower than expat compensation.
A detailed list of annual labour requirement is shown in Table 15.14. This manpower will be
required when operating in up to four different deposits simultaneously.
20.4.7 Mine Dewatering
Costs for mine dewatering were based on the estimated water in-flow into the mine and the
production schedule. All mine water inflow was estimated to be pumped to surface and then
transferred to the processing plant or back underground for use in dust control and drilling. Mine
dewatering averages approximately $146K per annum.
20.4.8 Mine Miscellaneous Costs
Miscellaneous UG mine costs were calculated based on SRK experience and averaged about
$500K per year. Misc. costs include minor maintenance supplies, office supplies, computers,
software, technical supplies, consultant's fees, recruiting costs and safety supplies.
20.5 Plant and Infrastructure Capital Cost Estimate (CAPEX)
The estimate covers the design and construction of the OJVG Golouma Gold Project process
plant, together with certain on-site and off-site infrastructure, including water supply,
accommodation village and support services. This estimate includes additional equipment
compared to the June 2010 feasibility study estimate as a result of subsequent trade-off studies. A
summary of the estimated total costs for the process plant and infrastructure are shown in Table
20.10. The areas of scope increase include the stockpile and reclaim area and the leaching area
and they have been identified in Table 20.10
2CO003.008 Oromin Joint Venture Group
Table 20.10: Total Plant and Infrastructure Capital Cost Summary by Area
WBS Cost Element Total Cost Estimate ($M)
02 PROCESS PLANT 70.6
0201 Crushing Stockpiling and Reclaim 9.9
Trade Off Study Stockpile and Ore Reclaim System 6.0
0202 Grinding 30.2
0204 Leach and Adsorption 10.0
Trade Off Study Extended Leach Time 0.9
0205 Desorption and Goldroom 4.3
0207 Tails Handling and Treatment 3.7
0208 Water Supply 1.3
0209 Reagents 1.8
0201 Air Supply 0.6
0211 Plant Control System 0.7
0213 General 1.2
03 ON-SITE INFRASTRUCTURE 40.1
0310 Plant Site Earthworks and Drainage 5.3
0320 Power Supply 29.0
0325 Power Reticulation 0.01
0350 Buildings Architectural 2.9
0351 Buildings Structural 1.5
0370 Security Facilities 0.06
0380 Sewage and Waste Water 0.6
0390 General 0.7
05 OFF-SITE INFRASTRUCTURE 19.4
0520 Raw Water Dam 2.6
0550 Tailings Dam 1.6
0560 Permanent Village 13.3
0570 Powerlines 1.9
06 INDIRECTS 36.3
0610 Temporary Construction Facilities 9.7
0630 Messing and Accommodation Expenses 2.6
0640 EPCM 18.6
0655 Project Contingency Not ncluded
0660 Fee 5.3
07 MINE 9.2
0760 Light ndustrial Area 7.1
0770 Mine Ancillary Facilities 2.1
08 MISCELLANEOUS 7.0
0810 Mobile Equipment 3.8
0820 Capital Spares 2.5
0830 First Fills 0.7
TOTAL CAPITAL COST 182.6

Estimate Contributors
The capital cost estimate was mainly developed by Ausenco. However, other main contributors to
elements of the estimate have been provided by the following:
Power station (excluding civil works) by Caterpillar.
Estimate Organisation
The estimate has been organized by the work breakdown structure ("WBS) into facilities which are
further broken down by areas, and then further by discipline.
The estimate has been prepared in MS Excel and provides a number of reports as follows:
Total cost summary provides a total cost summary by WBS by discipline and includes
estimating design allowance;
Total cost detail report provides bare cost, total cost with the percentage of estimating design
allowance and total cost by WBS by discipline;
Bare cost summary - provides a bare cost summary by WBS by discipline and excludes
estimating design allowance;
Bare cost detail provides the detailed bare cost breakdown of the estimate excluding
estimating design allowance and shows quantities, ex works pricing, freight, subcontract costs,
labour rates, labour costs, unit rate and resulting totals;
Discipline Summary; and
Estimate Comparison 2010 - 2013
Scope of Estimate
This estimate is based on the following inclusions:
Mechanical equipment costs for new process plant equipment;
nstallation of mechanical equipment;
Commodity costs for supply delivery and installation of earthworks, concrete, structural steel,
platework, field run pipework, tankage, electrical and instrumentation;
Freight allowance;
EPCM, EPCM contractors fee & commissioning costs;
Allowance for vendor representatives;
nfrastructure buildings as noted in Section 17 and below;
Sewage and potable water systems;
Plant control system;
CCTV system;
Office fit outs;
Laboratory and fit out including laboratory equipment;
Diesel fuel facility;
Heavy vehicle workshop;
Allowance for capital spares, first fills and initial consumables;
Allowance for plant and G&A mobile equipment;
Tailings deposition pipeline with single point discharge and tailings decant water pipeline and
pumping system;
Raw water delivery pumping system;
Power supply and site distribution (excluding the Masato open pit power supply);
Permanent camp consisting of 100 senior staff and 240 junior staff accommodation;
Temporary 288 person temporary junior person construction camp; and
Temporary construction facilities.
The following assumptions underlie this estimate:
The design and estimate is based upon similar projects completed by Ausenco within the
region;
All construction waste materials are disposed of within 2 km of the project site;
All sand gravel and aggregate can be sourced within 2 km of the project site;
No major ground improvements need to be made such as piling and ground stabilization;
All drawings will be executed in AutoCAD;
Suitably qualified and experienced construction labour will be available at the time of execution
of the project; and
No extremes in weather will be experienced during the construction phase, and as such, no
allowances are included for flooding or construction labour stand down posts.
Estimating Design Allowances
Each element of the estimate was developed at bare cost. An estimating design allowance has
then been allocated to each element of the direct and indirect costs to reflect the level of definition.
Such estimating design allowances are an integral part of the capital cost estimate.
The purpose of the estimating design allowances is to make allowance for uncertain elements of
costs to cover such factors as:
Limited information on site conditions, especially concerning sub-surface conditions and the
engineering properties of excavated materials;
Accuracy of quantity take-offs and estimate assembly, and consolidation based on the level of
engineering and design undertaken at study level;
Accuracy of materials and labour rates (excludes extreme variation for which contingency
should be included to cover);
Accuracy of productivity expectations; and
Accuracy of equipment budget pricing.
The sum of the estimated bare cost and estimating design allowances is the estimated total cost
for the project. The overall estimating design allowances applied to the OJVG Golouma Gold
Project cost estimate represent 8.4% of the bare cost.
Table 20.11 summarises the total cost including estimating design allowances.
Table 20.11: Total Cost Breakdown
WBS Cost Element
Total Bare Cost
($M)
Estimating Design
Allowance
Total Cost Estimate
($)
02 PROCESS PLANT 65.4 70.8
0201 Crushing Stockpiling
and Reclaim
15.0 6.01% 16.0
0202 Grinding 28.0 7.7% 30.2
0204 Leach and Adsorption 10.1 8.11% 11.0
0205 Desorption and
Goldroom
3.9 8.8% 4.3
0207 Tails Handling and
Treatment
3.4 8.6% 3.7
0208 Water Supply 1.2 9.8% 1.3
0209 Reagents 1.6 9.7% 1.8
0201 Air Supply 0.5 9.1% 0.6
0211 Plant Control System 0.6 12.5% 0.7
0213 General 1.1 10.9% 1.2
03 ON-SITE INFRASTRUCTURE 37.2 40.1
0310 Plant Site Earthworks
and Drainage
4.4 20% 5.3
03 20 Power Supply 27.6 5.2% 29.0
0325 Power Reticulation 0.01 15.9% 0.01
0350 Buildings
Architectural
2.7 10.1% 2.9
0351 Buildings Structural 1.4 9.9% 1.5
0370 Security Facilities 0.06 12.5% 0.06
0380 Sewage and Waste
Water
0.5 10.4% 0.6
0390 General 0.6 14.4% 0.7
05 OFF-SITE INFRASTRUCTURE 17.5 19.4
0520 Raw Water Dam 2.2 14% 2.6
0550 Tailings Dam 1.3 14% 1.6
0560 Permanent Village 12.2 9.4% 13.3
0570 Powerlines 1.7 12.5% 1.9
06 INDIRECTS 33.5 36.2
0610 Temporary
Construction Facilities
8.9 10% 9.7
0630 Messing and
Accommodation Expenses
2.3 10% 2.6
0640 EPCM 17.0 10% 18.6
0655 Project Contingency Not ncluded Not ncluded
0660 Fee 5.3 0% 5.3
07 MINE 8.4 9.2
0760 Light ndustrial Area 6.5 10% 7.1
0770 Mine Ancillary
Facilities
1.9 12% 2.1
08 MISCELLANEOUS 6.4 7.0
0810 Mobile Equipment 3.4 10% 3.8
0820 Capital Spares 2.3 10% 2.5
0830 First Fills 0.7 10% 0.7
TOTAL CAPITAL COST 168.4 8.4% 182.6

Table 20.12: Table Cost Report by Pricing Type
PRICING TYPE % OF DIRECT COST
Budget Quote 74.1 %
Database - escalated 17.5 %
Allowance 8.4 %
Total 100 %

Direct Cost Development
Direct costs include:
Supply of permanent materials and fixed equipment;
Labour to undertake and manage the construction activities. This includes wages and salaries,
with loadings for site labour, supervision and management, including associated expenses
such as home and/or satellite office management expenses;
Contractors and suppliers mark-up and profit; and
Transport expenses for permanent and temporary equipment and materials.
Earthworks
Bulk earthworks quantities were estimated by Ausenco for the process plant, and light industrial
areas, including drainage, internal roads were based on information available at the time of the
estimate. Limited detailed geotechnical information was available, and as such, the earthworks
quantities do not include any piling or soil stabilization. Structural fill quantity for the zone
immediately behind the crusher wall was included. The remainder of the crushing ROM pad is
excluded from the estimate, as it is assumed that it will be constructed from mine waste by the
mining contractor. Structural fill has also been included in the estimate under the SAG and ball mill
foundations.
All pricing was based on reissue of the original 2010 pricing schedules to the same contractors
previously used in the estimate to obtain budget rates.
Mobilisation and demobilisation costs were included separately in the temporary construction
facilities area of the estimate. The cost included in the estimate is the cost quoted by the major
contractor selected for the study.
Concrete
Concrete as-built quantities from a similar recently completed project were used for all areas of the
process plant and infrastructure, except for the crushing, stockpiling and reclaim area. The
crushing and reclaim area material take off quantities (MTOs) were developed by Ausenco, based
on preliminary design drawings and sketches of the FS design.
Mobilisation and demobilisation costs were included in the rates provided by the contractor, and as
such no additional mobilisation/demobilisation costs were included in the temporary construction
facilities costs.
Structural steelwork
Structural steel as-built quantities from a similar recently completed project were used for all areas
of the process plant except for the crushing, stockpiling and reclaim area. The crushing stockpile
and reclaim area MTO's for OJVG were developed by Ausenco based on preliminary design
drawings and sketches of the FS design.
The scope included supply, fabrication, shop detailing, surface treatment, supply of nuts, bolts,
washers, and shims, as well as a cost for delivery to site. Separate installation costs and manhours
were also requested.
facilities area of the estimate. The cost included was as quoted by the contractor.
Platework and Tankage
previously used in the Estimate to obtain budget rates.
The shop fabricated platework scope covered supply, shop detailing, fabrication, surface treatment,
liner plate, rubber lining, delivery and installation of shop fabricated platework and tanks.
The site erected platework and site erected tankage quantities were also issued to the same
contractors, and the scope covered the shop detailing, rolling of strakes, delivery, site erection of
platework and tanks.
facilities cost as estimated by the selected contractors.
Mechanical Equipment Supply
The mechanical equipment list was developed from the process flow sheets. These provided
equipment numbers, type, sizing and power.
nquiries were issued to local and international suppliers for budget pricing of most of the
mechanical equipment based on original documents. The value of equipment priced from inquiries
represents 96% of the total equipment supply value. The remaining 4% consists of low-cost
equipment that was priced from budget quotations or purchase orders from recent other estimates
or projects.
Mechanical Equipment Installation
A mechanical installation enquiry document based on the original 2010 document for budget
pricing was issued to African based contractors. The equipment list issued was the detailed as-built
equipment list from a similar recently completed project. The contractor selected provided
individual costs for installing equipment along with the direct manhours. These costs and manhours
were subsequently used in the estimate, after benchmarking against installation costs for recently
completed projects in the region.
facilities area of the estimate. The cost included was the cost quoted by the contractor.
Additional allowances for heavy lift cranes are included in the temporary construction facilities.
Piping Supply and Installation
Field-run piping costs were calculated from material take-offs for pipe, based on the general
arrangement drawings. The material take-offs were used as a basis for applying rates received
from an African based contractor. nstallation man-hours for off plant (non process plant) pipework
were estimated based on installation hours as quoted by the selected contractor.
A factor was added to the quoted pipe supply cost to include fittings and valves for field run piping.
Material prices were escalated based on current costs received from African contractors.
The total piping costs for process piping in each area were factored from the installed cost of the
mechanical equipment for the respective area. Factors were established from Ausenco's database
of similar installations. The process plant piping costs were arbitrarily split into material supply,
freight and labour costs, with the labour being expressed as man-hours and applied against the
gang rate to establish installation costs.
The labour gang rate used for installation was established from the revised mechanical installation
costs quoted by the contractor.
facilities area of the estimate. The cost included was an allowance based on previous similar
projects.
Electrical and Instrumentation
The electrical design was based on a medium voltage single line, specifically developed for the
study and a low voltage (LV) single line from a recently constructed almost identical plant.
Modifications were made in the electrical estimate to accommodate minor differences in the study
LV requirements as compared to that of the similar plant LV design.
The instrumentation estimate was developed from the instrument list from the same recently
completed project, with minor modifications to it to suit the OJVG plant requirements.
Electrical and instrumentation supply costs are based on costs within the Ausenco data base from
similar projects and budget inquiries.
Electrical installation hours were derived from the data received from contractors in Africa. The
revised labour rate was escalated based on the escalated costs received for structural and
mechanical labour rates.
An allowance for the mobilisation and demobilisation of an electrical contractor has been allowed
for separately in the temporary construction facilities area of the estimate.
Buildings
Steel-framed-and-cladded type building costs was included for the plant workshop, warehouse,
reagent store, sample preparation shed and MCC buildings. The design of these buildings is
identical to those installed at a similar recently completed project in the region and were re-priced
by the same supplier.
Building supply costs have been escalated based on costs received from local contractors for
similar works.
Civil material take-offs for steel framed buildings were also undertaken from as-built drawings and
the respective civil rates applied. Costs for electrical fit outs of the steel-framed buildings were
included in the electrical estimate. Warehouse racking and shelving has been included in the
estimate, based on similar installations.
Plant workshop tools and equipment, other than the compressed air system, wash down area
equipment and overhead crane, have been excluded from the plant workshop.
Split air conditioning systems have been allowed for both the crushing and grinding area
switchrooms.
The Heavy Vehicle workshop in the light industrial area has been included in the estimate and is
based on second hand containers, prefabricated offices complete with furniture, air system,
electrical system, concrete floors and footings with 'Allshelter' type canopies. No further allowance
for any workshop tools and equipment, other than the air compressor system, has been included in
the estimate.
Costs for prefabricated buildings, including the administration building, plant office, plant
warehouse, plant office/ablutions, plant mess hall, laboratory, two security gatehouses and
medical/emergency response treatment (ERT) building were included in the estimate. The costs
were escalated based on costs received from local contractors for similar works.
Prefabricated building supply and erection costs are inclusive of fit out such as fixtures, electrics,
plumbing and air conditioning. A cost was included for basic furniture such as desks, chairs, tables,
filling cabinets, shelves, fridges, and microwaves. tems such as computers, phone systems,
photocopiers and printers are not included. Medical equipment in the ERT facility is also excluded.
Laboratory equipment for the laboratory and sample preparation shed was included, based on the
similar completed projects. Ground slabs and footings are included in the concrete costs and were
derived from the drawings and respective civil rates.
The crushing and main control rooms are prefabricated air conditioned buildings and were cost
based on the as-built cost for the control rooms from a recent project in the region. The main
control room consists of a 3.4 m x 3 m control room and a 3.4 m x 1.9 m titration room.
An underground change house has been included in the Mining Ancillaries area and is sized for
three times 60 man shifts and is inclusive of dirty side and wet side lockers, showers, toilets and
laundry facilities. ncluded in the building is a small mess area with kitchen, lamp and safety
equipment area, and some offices for underground supervisors.
Freight
Freight costs associated with items supplied as part of earthworks and concrete were included in
the quoted supply prices. tems in the estimate quoted as subcontract costs also include their
respective freight costs.
Freight costs for structural steel, platework, pipework and site erected tankage has also been
included as quoted by the selected contractor's revised budget rates.
Freight costs for mechanical equipment was factored from the ex works cost. The factors were
established from recent projects in the region. Freight costs for instrumentation are high, due to the
requirement of air freight. This is due to the rough road conditions experienced on similar projects
in the region. The freight, when assessed item by item may not be a fully accurate representation
of the actual freight cost for the item. The overall freight cost however is deemed reasonable,
based on similar projects completed in the region.
Freight costs do not include any import duties and/or taxes.
Labour
Labour gang rates were established from the various discipline rates inquiry packages, issued to
contractors. The gang rates included current industry and labour regulations and allowances, direct
labour, supervision, location allowances, any superannuation (or local equivalent that may exist),
contractor's overheads, profit, off-site costs, construction power, small tools, construction
equipment, safety equipment, consumables, light and medium cranes, recurring costs, loadings
and allowances.
Accommodation and messing were excluded from the gang rates and are included and identified
separately under accommodation and messing costs. These costs have been escalated based on
the average increase on costs.
Mobilisation and demobilisation costs were also excluded from the gang rates (and the direct
costs) and were included under temporary construction facilities costs.
General Cost Development
First-fill Reagents, Grinding Media, and Lubricants
First-fill reagents and grinding media were included in the estimate and developed from the
quantities required and reagent costs supplied for the FS.
n most cases, equipment suppliers will provide the required first-fill lubricants with the supplied
equipment. However, a provisional cost ('PC') sum for first-fill lubricants was included in the
estimate to allow for any omission of the supply of first-fill lubricants. The PC sum also provides
additional funding should OJVG wish to self-source all lubricants from common suppliers.
Workshop Tools and Equipment
The cost of fitting out the workshop with small tools and equipment was excluded from the
estimate. An overhead crane has been included in the plant workshop and is identified separately
in the estimate from the building cost.
Warehouse Racking and Shelving
The cost of fitting out warehouses and storage sheds with shelving and racking was included in the
estimate and is based upon the cost from similar projects.
Mobile Plant and Equipment
Mobile plant and equipment costs have been escalated by 20% based on the average escalation
within the estimate for this period. This includes all G&A vehicles except for site road maintenance
equipment, which is assumed to be provided from the mining equipment fleet. All equipment is
new, except for the 30 tonne forklift and container truck, which are second-hand units. A summary
of the total plant and G&A vehicles included in the estimate is shown in Table 20.13.
Table 20.13: Summary of Mobile Equipment
Vehicle Type Quantity
Landcruisers 5
Utilities (dual cab) 12
Buses (40 seat) 2
Electric fork-lifts (2t) 1
Fork lift (30t container) 1
Extension fork lift 1
Flat bed truck Hiab (5t) 2
Container truck 1
Ambulance 1
Fire truck 1
Mobile 80 T Crane 1
Extension fork lift 1
Elevated work platform 1
Skid Steer Loader (Bobcat) 1

All mobile equipment is supplied as mine-compliant and includes roof-mounted flashing amber
beacon, light, and whip flag, and also includes roll bar, first-aid kit, cargo barriers, canvas seat
covers and air-conditioning as applicable.
Fire and ambulance vehicles include fire and medical equipment, as typically supplied with the
vehicle type when used on mine sites. Vehicle registration is included for all highway-going
vehicles only.
Spares
The cost for spares was factored using a percentage established from previous experience,
representing approximately 8% of the installed mechanical cost.
t should be noted that although the spares method of calculation is based on the installed
mechanical cost, the resulting cost for spares represents the total spares budget for all disciplines,
and not just mechanical item spares. This spares cost does not cover major insurance spares such
as ring gears, pinions, gearboxes and large transformers.
Temporary Construction Facilities Cost Development
Contractors' costs for mobilisation and demobilisation were included under temporary construction
facilities. Costs for the contractor's mobilisation and demobilisation for the concrete works, village
installation, camp installation and buildings installation were included in the direct costs for these
items. Costs for provision of the following items were also included:
Lay-down areas;
Temporary EPCM-contractor offices and secure storage;
Temporary-facilities power (excludes contractors construction power and fuel costs which are
included in the contractors direct rate costs);
Temporary water supply;
Temporary site ablutions including temporary sewage treatment;
Temporary first aid medical facilities;
Construction site maintenance; and
Heavy cranes for installation of crusher, SAG and ball mill.
Indirect Cost Development
Engineering Procurement & Construction Management (EPCM) Labour
Home-office time-based hours such as project management, project controls, procurement and
contracting, and secretarial services were estimated based on the anticipated duration on the
project. Home-office content-related labour hours were estimated by development of lists of
deliverables and allocation of hours to each based on previous experience.
Site hour input was all time-based on estimated durations for the various phases of the project and
the personnel needed for each phase.
Costs for sub-consultants to the EPCM Contractor and vendors' representatives are identified and
included in the EPCM cost.
EPCM Expenses
These were developed by Ausenco to capture costs associated with EPCM activities. They include
expenses for business and site supervision, inspection and expediting services, and home office
expenses based on current Vancouver charge out fees 1stQ 2013 (including phone, postage,
copying, stationery and computer systems).
Costs for sub-consultant services are also included in the estimate in the EPCM costs.
Commissioning
This covers the estimated costs of construction contractors providing plant start-up assistance
during commissioning, together with associated miscellaneous materials and equipment.
The costs of the EPCM Contractor's commissioning group were included.
Costs associated with vendor commissioning assistance were included in the estimate. These
costs include allowances for interstate airfares, intercity accommodation and miscellaneous
expenses.
The labour costs of a modification squad ("mod squad) and materials have not been included, as
the nature of any client requested modification cannot be determined at the time of estimate
preparation. These costs would be an extra cost.
Vendor Representatives
Vendor representation during the construction period was not deemed necessary. Suitably
experienced and qualified construction contractors will be used along with EPCM contractor
supervision.
The cost for vendor assistance during the pre-commissioning period was included in the EPCM
estimate on the basis of ten site visits from international vendors, and two from local vendors.
Project Fee
A project fee of 3% of the direct costs was included.
A fee is a notional allowance considered chargeable by any reputable engineering project
management supplier as profit and takes into account the type of project, project location, project
value and project risk.
This allowance also considers the engineer/project manager's liabilities for such items as process
guarantees, liquidated damages, indemnity insurance and other such liabilities.
n most cases, the fee is calculated as a percentage of the overall cost of the project or in some
cases may be negotiated as a fixed sum depending on the extent of risk and liability the project
owners are prepared to accept.
20.5.1 Escalation
No escalation costs were included in the estimate, as escalation for the entire project, including
other costs outside of the scope of this estimate, will be undertaken during the financial modelling
stage. All costs are based on 1Q 2013 quoted costs.
20.5.2 Owners Costs
Owners Cost is excluded from this estimate.
20.5.3 Taxes and Duties
No import duty or taxes have been included in the estimate as OJVG advised that the project is
exempt of these taxes for the first seven years.
20.5.4 Contingency
Contingency provides for the risk of changes in scope, or reasonable expectations embedded in
the estimate. Changes often arise from outside or unpredictable circumstances. These include:
Extreme escalation of engineering and field construction labour costs above the base line of
1Q 2013;
Extreme abnormalities in industrial relations;
Extreme change in market conditions and therefore equipment and material prices; and
Extreme weather or adverse political or regulatory developments.
Ausenco recommends that a contingency of 10% or $ 18.3M of the total plant and infrastructure
estimate be included in the overall project contingency.
The amount of project contingency is ultimately the client's decision. This decision is based on the
client's perceived risk for the project as well as their willingness to accept risk.
20.6 Process Plant Operating Cost Estimate (OPEX)
The total process and General & Administrative (G&A) operating costs were developed in United
States dollars (US$) on an annual throughput basis. The costs were divided into the key cost
centres and all figures are as of the first quarter 2013 (calendar year). The operating costs
presented do not include allowances for escalation or exchange rate fluctuations. The estimate is
considered Feasibility Study level with an accuracy of 15%.
These operating costs are based on the process flowsheet as described in Section 12. The battery
limits for the determination of the process operating costs commence from the crushing facilities
and continue through to tailings discharge into the TMF. The costs also include G&A labour and
G&A incidental costs.
Operating costs were developed for the treatment of both primary hard ore as well as weathered
soft ore. A summary of the operating costs per tonne of ore treated is outlined in Table 20.14.
Table 20.14: Estimated Average Operating Costs ($/t)
Cost Category
Primary Hard Ore
(4,541 t/d)
Weathered Soft Ore
(7,392 t/d)
Process Operating Cost
Process Labour 2.44 1.50
Process Power 10.12 4.82
Site Power 1.25 0.77
Reagents and Consumables 7.30 5.25
Maintenance Materials and Supplies 0.83 0.51
Subtotal Process Operating Cost 21.93 12.85
G&A Costs
G&A ncidentals 3.76 2.31
G&A Labour 1.21 0.74
Permanent Camp 1.19 0.73
Subtotal G&A Cost 6.16 3.78
TOTAL Cost $28.09 /t or $46.6M /y $16.63 /t or $44.9M /y

The calculated primary hard ore operating cost of $28.09 /t is higher than the operating cost of
$16.63 /t for the weathered soft ore, primarily due to:
The primary hard ore operating costs were calculated based on an annualised throughput of
1,657,392 tonnes as compared to 2,698,080 tonnes for the weathered soft ore. This directly
reduces the $/t ratio of fixed expenditures such as G&A incidentals, G&A labour, camp and site
power;
The SAG and ball mill grinding media consumption for the primary ore was calculated at 1.27
kg/t as compared to 0.58 kg/t for the soft ore. This is due to the ore competency, hardness and
abrasive properties being significantly lower for the weathered ores; and
The total specific comminution energy required for grinding the primary ore is 28 kWh/t
compared to 12 kWh/t for the weathered ore. This is due to the ore competency and hardness
being significantly lower for the weathered ores.
An operating cost versus throughput model was developed for both the primary and weathered ore
types due to the significant difference between the two. These models were developed for use in
the life of mine (LOM) economic analysis for the FS.
20.6.1 Basis of Process and G&A Operating Cost Estimate
The operating cost estimate was developed from a number of sources. Cost determinations were
based on fixed and variable components relating to ore throughput and plant flowsheet. The source
of data used for the operating cost estimation is summarized in Table 20.15.
Table 20.15: Derivation of Plant Operating Costs
Cost Category Source Of Cost Data
Process and G&A Labour
Manning schedule estimated based on benchmarking similar operations in
the area and rates provided by SRK and increased based on typical
escalation seen in Senegal.
Power
Consumption from the load estimate and power unit rate calculated for an
onsite heavy fuel oil power generation facility.
Reagents
Consumption rates based on test work and unit prices as quoted by
suppliers.
Consumables
Consumption rates calculated and/or benchmarked off similar operations
and Ausenco experience; unit prices as quoted by suppliers.
Maintenance Materials and
Supplies
Estimated based on benchmarking similar operations, materials cost
escalation and Ausenco experience.
Assay and Metallurgical
Laboratory
Estimated based on industry benchmarking similar operations, materials
cost escalation and Ausenco experience.
Camp
Number of persons in the camp calculated from manning schedules. Camp
costs estimated based on benchmarking similar operations, materials and
labour cost escalation and Ausenco experience.
G&A ncidentals
Estimated based on costs supplied by OJVG and estimated costs based on
benchmarking similar operations, materials and labour cost escalation and
Ausenco experience.

Operating costs not considered in this section, but included elsewhere, are listed as follows:
TSF construction and dam raises, which are considered sustaining capital;
Gold dor handling (including shipment & insurance);
Gold dor refining, which is included in the net revenue payable calculation;
Commissioning support and plant start-up labour costs (included in capital estimate);
Sustaining capital;
Ongoing exploration;
nflation;
mport duty and applicable taxes;
Royalties;
nterest and finance charges; and
Contingency.
Some of the items listed above are included in the cashflow model as discrete line items, as
discussed in Section 20.5.

20.6.2 Plant Operating Cost Estimate Inclusions
ncluded in the process plant operating cost estimate are:
Labour for supervision, management and reporting of onsite organisational and technical
activities directly associated with the processing plant;
Labour for operating and maintaining plant mobile equipment and light vehicles, process plant
and supporting infrastructure;
Costs associated with direct operation of the processing plant, including all fuels, reagents,
consumables and maintenance materials;
Fuels, lubricants, tires and maintenance materials used in operating and maintaining the plant
mobile equipment and light vehicles;
Operation of the TMF, including tailings discharge and management and return water,
excluding construction and on-going dam raises;
Cost of power supplied to the process plant from the onsite heavy fuel oil power generation
facility, inclusive of labour, fuel, lubricants and maintenance supplies;
Operation of raw water supply facility from the raw water dam; and
Labour and operational costs for the metallurgical and assay laboratories.
Labour
Labour manning schedules were developed based on benchmarking similar plants operating in the
region.
A summary of the overall plant manning schedule is shown in Table 20.16.
Table 20.16: Summary of Process Plant Labour
Area National Expat
Mill Administration 3 2
Mill Metallurgy 2 2
Mill Operations 36 3
Mill Maintenance 28 6
Mill Security 6 4
Laboratory 12 1
Total 87 18

The labour rates were determined from SRK figures based on benchmarking similar plants
operating in the region. For the 2013 estimate, local and expatriate labour rates have been
increased based on typical escalations for Senegalese projects. This has resulted in respective
adjustments of 15% and 20% for expat and local nationals. A summary of the labour rates used
are shown in Table 20.17.
Table 20.17: Process Plant Labour rates
Process Plant Labour
Description US$/month Comment
Admin and Technical
Mill Manager 19,171 Expat
Training Officer 11,500 Expat, localized after 2 years
Senior Security Officer 15,335 Expat
Security Gurkhas 11,500 Expat, localized after 2 years
Plant Security Guards 1,692 National
Senior Metallurgist 15,335 Expat
Plant Metallurgist 13,421 Expat, localized after 2 years
Plant Metallurgist 2,070 National
Laboratory Manager 11,500 Expat
Senior Chemist 1,932 National
Chemist 1,500 National
Chemist Assistant 1,428 National
Maintenance
Maintenance Superintendent 17,250 Expat
Maintenance Planner 13,421 Expat
Electrical/Mechanical Supervisor / Trainer 11,500 Expat, localized after 2 years
Electrical/Mechanical Foreman 1,692 National
Data Entry Clerk 984 National
T Tech 942 National
Maint (Electrical, nstrumentation,
Journeymen)
990 National
Maint (Tools, PM, weld) 936 National
Maint (Apprentices) 648 National
Helper/labourer 510 National
Operations
Mill Superintendent 17,250 Expat
Plant Operations Supervisor/Trainer 11,500 Expat, localized after 2 years
Plant Operations Foreman 1,692 National
Plant Operators 648 National
Trainee 540 National
Helper/labourer 510 National

Labour costs include overtime and shift premiums, leave pay, bonuses, pension and
superannuation benefits and insurance coverage. Recruitment, travel, external training and
personal protective equipment are not included in these labour rates and are covered in the G&A
incidental costs.
t has been assumed that all expats below Superintendent level (excluding the Senior Security
Officer) will either be replaced with National staff or no longer required after the first two years of
plant operation. Plant labour costs for the first two years and then subsequent to the expat
localization are shown in Table 20.18.
Table 20.18: Process Plant Labour Cost Summary
Area $/a (0 - 2 years) $/a (>2 Years)
Mill Administration 529,000 392,000
Mill Metallurgy 395,000 258,000
Mill Operations 811,000 571,000
Mill Maintenance 1,225,000 745,000
Mill Security 720,000 239,000
Laboratory 364,000 364,000
Total 4,044,000 2,569,000

For the purposes of estimating overall operating costs for the Whittle mine reserve models, labour
for the plant was not adjusted for localization. This cost reduction was developed for use in the life
of mine economic analysis.
Power
Power will be supplied to the plant and mine site from a heavy fuel oil (HFO) power generation
facility. The unit cost of power ($/kWh) was calculated for the HFO power generation based on the
inputs summarized in Table 20.19. HFO cost was based on pricing obtained from nearby
operations.
Table 20.19: Power generation cost inputs
Description Unit Criteria
HFO fuel consumption Litre/kWh 0.21
HFO fuel price delivered to site $/litre 1.05
Maintenance and consumables
(excluding fuel)
$/kWh 0.018

The calculated power cost based on the above inputs was $0.237 /kWh.
Power requirements for the plant were developed from the electrical load list. The load study on
which the power costs were based calculates a specific power draw given the installed equipment
power (excluding installed standby equipment) and a utility factor to allow for intermittently running
equipment. Power consumption was derived from the specific power draw and plant operating
hours in addition to the following assumptions:
A continuous allowance (100% availability) of 1,000 kW was included in the electrical load list
for powering the permanent camp, offices and general site facilities; and
An allowance (92% availability) of 1,000 kW for the underground mine and mine dewatering
facilities. This was used in sizing the power generation facility however the operating cost is
included in the mining costs.
Plant power consumption is expected to vary over the life of mine primarily due to the variable
comminution characteristics of the primary and weathered ore, and resulting change in
comminution energy requirement. A summary of power costs by area for the plant and general site
are shown in Table 20.20.
Table 20.20: Plant and Site Power Cost Summary
Power Cost ($/t)
Primary Hard Ore (1,657,392
t/a)
Weathered Soft Ore (2,698,080
t/a)
Crushing, Stockpiling & Reclaim 0.34 0.21
Grinding 7.78 3.39
Leach & Adsorption 0.82 0.50
Desorption & Gold room 0.12 0.08
Tails Handling & Treatment 0.29 0.18
Water Supply 0.34 0.21
Reagents 0.02 0.01
Air Supply 0.26 0.16
General and Site Power 1.41 0.86
TOTAL $/t 11.37 5.59
TOTAL $M/y 18.85 15.09

Maintenance Consumables
Maintenance materials and tools/miscellaneous costs were included in the operating cost estimate.
The maintenance labour costs were included in the overall plant labour costs as previously
reported.
The cost of maintenance tools and materials was based on a factor of the mechanical equipment
cost and benchmarking against similar plants. Maintenance tools/miscellaneous costs include
grinding disks, welding rods, paint, tape etc. Maintenance material costs include:
Mechanical equipment replacement parts;
Pipes and fittings;
Electrical equipment and replacement parts; and
nstrumentation equipment and replacement parts.
The total cost estimated for maintenance tools and materials was $1.37 million per year. This
equates to around 4.5% of the bare mechanical equipment cost.
Exclusions from these costs include:
Maintenance labour costs (included in the labour cost);
Crushing and grinding mill liners (included in the plant consumables cost); and
Sustaining capital costs.
A cost allowance of $0.070 million per year was estimated to cover process vehicle maintenance.
This cost was estimated based on the assumptions summarized in Table 20.21.
Table 20.21: Process Plant Vehicle Maintenance Cost Summary
Number of Vehicles Hours of Operation
Maintenance and
Consumables Cost
($/h)
Landcruisers 1 700 6
Utilities (dual cab) 3 700 6
Mobile 80 T Crane 1 365 24
Extension fork lift 1 1825 14
Elevated work platform 1 365 6
Skid Steer Loader (Bobcat) 1 1095 14

Therefore, the total plant maintenance tools and materials cost was estimated at $1.37 million per
year.
Reagents and Consumables
Reagent consumption rates were calculated based on metallurgical test work. Exceptions to this
were:
Carbon (used in the CL) and smelting fluxes consumption rates were benchmarked against
similar plants; and
The diesel consumption rate was calculated for the elution heater based on a single elution
cycle per day consuming 250 litres. Also the plant vehicle diesel consumption rates were
calculated based on the fuel consumption rate and hours of operation.
Reagent and consumables consumption will vary according to metallurgical and production
parameters, with the main variations being:
Reduced grinding media consumption when treating weathered ore due to the ore hardness
being significantly less than primary hard ore; and
ncreased lime consumption when treating weathered ore as compared to primary ore as
indicated by metallurgical test work.
The average LOM consumption rates are presented in Table 20.22.
Table 20.22: Reagent Consumption Rates
Item Unit
Primary Ore
Consumption Per Tonne
of Feed @1.66 Mt/a
Weathered Ore
Consumption Per Tonne
of Feed @2.70 Mt/a
Cyanide kg/t 0.78 0.78
Lime kg/t 0.50 0.81
Carbon kg/t 0.03 0.02
Hydrochloric acid kg/t 0.04 0.04
Caustic soda kg/t 0.07 0.07
Flocculant kg/t 0.02 0.02
Smelting fluxes g/t 0.42 0.26
Diesel Litre/t 0.08 0.05

Reagent unit costs were based on quotations received from suppliers. Suppliers included freight
cost to the port of Dakar in the reagent cost. Onwards freight costs to site were calculated based
on quotations from logistics companies operating in the region.
Reagent unit costs and the average LOM costs inclusive of freight are presented in Table 20.23.
Table 20.23: Reagent Costs
Item Unit price ($/kg)
Primary Ore Cost
@1.66 Mt/a
($M/a)
Weathered Ore Cost @
2.70 Mt/a
($M/a)
Cyanide 3.60 4.789 7.796
Lime 0.39 0.319 0.841
Carbon 2.30 0.116 0.116
Hydrochloric Acid 0.48 0.041 0.066
Caustic soda 0.82 0.113 0.184
Flocculant 3.40 0.116 0.189
Smelting fluxes 1.25 0.001 0.001
Diesel 1.10 0.152 0.152
Laboratory supplies 0.288 0.288
Total 5.935 9.634

The operating cost for the Assay and Metallurgical Laboratory reagents and consumables was
estimated at $0.29 million per year based on benchmarking similar plants and mining operations.
Plant Consumables
Plant consumables include major items, such as crusher and mill liners and grinding media.
Consumption rates were estimated as follows:
SAG and ball mill media consumption rate was calculated based on the mill power
consumption rate as well as the bond abrasion index (Ai) test work data; and
Mill and crusher liner consumption rate was benchmarked on similar plants.
Unit costs were obtained from suppliers. The consumption rates and unit costs are summarized in
Table 20.24.
Table 20.24: Crusher and Mill Liner Consumption
Item
Unit Cost
($M per set)
Primary and Weathered
Ore Consumption

Cost ($M/a)
Jaw Crusher Liners 0.010 4.0 sets per year 0.04
Pebble Crusher Liners 0.005 10.0 sets per year 0.05
SAG Mill Liners 0.942 2.0 sets per year 1.88
Ball Mill Liners 0.788 1.5 sets per year 1.18
TOTAL $M/y 3.16

The SAG and ball mill media consumption rate is a function of the power drawn by the respective
mills and the ore hardness properties. t is expected that the difference in media consumption when
processing the harder primary ore as compared to the softer weathered ore will be significant.
Details of the grinding media and consumption rates for the SAG and ball mills are shown in Table
20.25.
Table 20.25: Grinding Media Details Usage and Pricing
Mill Diameter Type
Cost
Primary Ore Consumption
Rate @1.66 Mt/a (kg/t)
Weathered Ore Consumption
Rate @ 2.70 Mt/a
Consumption Rate (kg/t)
$/kg
SAG
Mill
125 mm Forged 1.41 0.47 0.14
Ball
Mill
50 mm Forged 1.22 0.80 0.44

Table 20.26 shows the annual grinding media costs and the cost per ton of ore processed
(including freight).
Table 20.26: Grinding Media Costs
Item
Primary Ore @1.66 Mt/a Cost
($M)
Weathered Ore @2.70 Mt/a
Cost ($M)
SAG Mill Balls 1.19 0.58
Ball Mill Balls (50 mm) 1.78 1.59
TOTAL $M/y 2.97 2.17
TOTAL $/t 1.79 0.81

General and Administrative (G&A) Costs
The G&A costs estimated are summarized in Table 20.27.
Table 20.27: G&A Costs
Item Type Annual Cost ($M)
Communications Fixed 0.120
nsurances Fixed 1.200
Dakar office cost allowance Fixed 0.576
Stationery Fixed 0.012
Postage, Courier and Light Freight Fixed 0.048
Computer Supplies Fixed 0.060
Security and Medical Supplies Fixed 0.300
Safety supplies Fixed 0.060
Paramedic services Fixed 0.060
Off-site Medicals Fixed 0.012
Community Projects and Relations Fixed 0.283
Technical training and conferences Fixed 0.090
Entertainment Fixed 0.024
Banking Fees Fixed 0.024
Training Fixed 0.048
Corporate Travel & Accommodation Fixed 0.120
Recruiting/Relocation Fixed 0.096
Environmental Licences / Monitoring Fixed 0.712
Metallurgical Testwork Fixed 0.030
Consultants and Vendors Fixed 0.090
G&A Vehicles Fixed 1.105
Equipment Hire Fixed 0.060
Travel Fixed 0.796
Legal Permits and Fees Fixed 0.240
Contract Camp Catering and Management Fixed 1.971
G&A Building Maintenance Fixed 0.060
G&A Labour Fixed 2.005
TOTAL Fixed 10.202

Below is a summary of the main cost items included in the G&A operating cost and the basis of the
estimate:
G&A labour manning schedule and rates based on benchmarking similar plants operating in
the region and pro-rata adjustments corresponding to typical escalation of local and expatriate
labour rates;
Communications including satellite phone communications and internet - advised by OJVG;
nsurances to cover general liability, risk, and vehicle insurance policies advised by OJVG;
Dakar office cost allowance including labour advised by OJVG;
Security and medical supplies including costs for emergency medical services benchmarked
based on similar operations and materials cost escalation;
Community project and relations advised by OJVG;
Corporate travel and accommodation based on 10 return business class trips at $12k per
trip;
Environmental licences and monitoring including costs associated with quality sampling and
monitoring, analysis of surface and ground water, as well as surface flow measurement as
advised by SRK;
G&A vehicles including diesel fuel, consumables and maintenance based on the G&A vehicle
list and estimated run time hours, hourly maintenance cost and hourly fuel consumption;
Site personnel commuting/travel costs for expats based on the expat manning schedule and
8 week on 4 week off roster with each rotation costing $3,900. Cost for bussing local workers
to/from Dakar and other local communities were included in the G&A vehicle costs and G&A
labour cost;
Legal permits and fees as advised by OJVG; and
Camp operations including catering, cleaning, and maintenance based on a continual camp
occupancy of 300 person and $18 per person per day.
All other G&A costs were estimated based on benchmarking similar plants and materials cost
escalation.
Process Plant and G&A Operating Variable Cost Modelling
The operating cost for treatment of both primary hard ore and weathered soft ore was estimated at
various tonnage rates to produce models for use in the life of mine economic analysis. The main
differences in the plant operating cost for the two ore types are shown in Table 20.28.
Table 20.28: Primary and Weathered Ore OPEX Variances
Criteria Primary Hard Ore Weathered Soft Ore
Ball Mill Pinion Power (kWh/t) 9.79 7.85
SAG Mill Pinion Power (kWh/t) 18.3 4.04
SAG Mill Media Consumption
(kg/t)
0.47 0.14
Ball Mill Media Consumption
(kg/t)
0.8 0.44
Lime Consumption (kg/t) 0.5 0.81

The process plant operating cost models developed are shown in Figure 20.1. The total plant
throughput (X-axis) includes both hard primary and soft weathered ore in the plant feed blend.

Figure 20.1: Plant throughput vs. Processing Costs
The models developed were used to calculate the process and G&A cost for each year of the
mining schedule based on the blend ratio of primary to weathered ore. The process cost is
calculated by:
Total Ore Process Cost ($/t) = (Primary Ore Process Cost Per Model x Percentage of Primary Ore
in Feed Blend) + (Weathered Soft Ore Process Cost Per Model x Percentage of Weathered Soft
Ore in Feed Blend)
An example is shown in Table 20.29.
Table 20.29: Example of Process Cost Modelling
Criteria Units
80% Hard Ore
Case
43% Hard Ore
Case
Primary Hard Ore n Feed Blend % 80 43
Plant Throughput (from throughput model) t/h 255 350
General and Administration (fixed cost) $'000 per year 6,226 6,226
G&A Labour (fixed cost) $'000 per year 2,005 2,005
G&A Camp (fixed cost) $'000 per year 1,971 1,971
Processing (primary hard ore from model) $/t milled 16.37 7.39
Processing (oxide weak ore from model) $/t milled 3.09 7.18
General and Administration $/t milled 2.31 2.31
G&A Labour $/t milled 0.74 0.74
G&A Camp $/t milled 0.73 0.73
Total Process and G&A $/t milled 24.7 18.4

This compares to an operating cost for 100% hard ore of $28.09/t or a 100% soft ore cost of
$16.63/t.
y = 430.31x
-0.5497
y = 543.86x
-0.6427
0
5
10
15
20
25
30
35
40
0 50 100 150 200 250 300 350 400
P
r
o
c
e
s
s
i
n
g

C
o
s
t

(
$
/
t
)
Total Plant Throughput (t/h)
Primary Hard Ore
Soft Oxide Ore
Power (Primary Hard Ore)
Power (Soft Oxide Ore)
21 Economic Analysis
21.1 Summary
The project demonstrates robust economics as shown in Table 21.1. Net Present Value (NPV) at a
5% discount rate is positive across a wide range of assumptions, and at gold process above
$1,350 per ounce exceeds the initial capital investment. Similarly the nternal Rate of Return (RR)
for the project exceeds 20% at gold process above $1,350.
Unit operating costs of $654 are such that a wide cash operating margin per ounce is achieved at
all evaluation prices.
Table 21.1: Summary Economics.

Gold Price ($/oz)
Parameter Unit $1,350 $1,550 $1,750
Off-site cost $/oz $7.00 $7.00 $7.00
Royalty @ 3% of NSR $/oz $40.34 $46.29 $52.29
Net gold price $/oz $1,304 $1,497 $1,691
Ore mined (LOM - UG and OP) Mt 28.0 28.0 28.0
Average ROM grade g/t Au 2.59 2.59 2.59
Average process recovery % 90.8% 90.8% 90.8%
Gold produced M. oz. 2,119 2,119 2,119
Unit operating cost per tonne milled $/t milled $49.44 $49.44 $49.44
Unit operating cost per oz $/oz Au $654 $654 $654
Pre-production capital cost $M 297.1 297.1 297.1
Total capital cost (Life of mine) $M 504.7 504.7 504.7
Pre-tax NPV0% $M 854 1261 1672
Pre-tax NPV5% $M 476 740 1007
Pre-tax RR % 23.9% 31.3% 38.2%
Pre-tax payback period Months from start Prod. 29 23 18
Post-tax NPV0% $M 652 961 1274
Post-tax NPV5% $M 353 558 765
Post-tax RR % 20.7% 27.7% 34.3%
Post-tax payback period Months from start Prod. 30 23 18

21.2 Modelling Practice
The project was evaluated using Microsoft Excel based discounted cash flow model. The
periods used were annual. The model used real, un-escalated Q4 2012 US dollars.
A discount rate of 5% was selected after discussion with the client. SRK considers this to be
consistent with current industry practice for precious metals mining projects on average.
The model is a cash flow model and not an accounting model. No specific modelling of
intermediate stockpiles or attempts to closely match expense and income timing for tax deductibility
was undertaken. Refer to section 21.6 for details on working capital modelling.
The asset-level model assumes a simple all-equity project ownership and financing. No
consideration of equipment leasing, project financing, bonding, metal strips, royalty sales (except
for existing government and private royalties) forward sales, hedging or any other financial
arrangements was undertaken. No consideration was given to the structure of the ownership
company.
21.3 Construction Schedule
For the purposes of economic evaluation it was assumed that construction would begin in 2014
and be completed in 2015. This is considered a reasonable period for construction activities, but
assumes that full permitting and financing will be available in early 2014.
Delays to commencement of construction do not materially alter the economic potential of the
underlying project, but it must be recognised that costs associated with permitting, studies and
management activities will accrue during the pre-construction phase. These costs have not been
modelled for delayed construction schedules.
21.4 Production Schedule
The mining production schedule evaluated was generated by SRK as described in Section 15.3
and is reproduced in Table 21.2.
Table 21.2: Modelled base production schedule.

PERIOD
Parameter Unit Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
OPEN PIT MINING
Golouma soft waste Mt 10.4 3.8 5.0 1.6
Golouma hard waste Mt 17.1 1.0 3.7 11.0 1.3 0.0 0.1
Golouma total waste Mt 27.5 4.8 8.7 12.6 1.3 0.0 0.1
Golouma ROM soft ore Mt 0.6 0.2 0.3 0.1
Gold Grade Soft Ore g/t Au 2.10 2.44 1.70 2.50
Golouma ROM hard ore Mt 2.3 0.1 0.5 1.2 0.4 0.0 0.1
Gold Grade Hard Ore g/t Au 2.37 3.48 3.03 2.16 1.90 1.45 2.01
Total Mined ounces oz Au 212 25 68 92 23 1 4
Kerekounda soft waste Mt 0.8 0.8
Kerekounda hard waste Mt 0.1 0.1
Kerekounda total waste Mt 0.9 0.9
Kerekounda ROM soft ore Mt 0.0 0.0
Gold Grade Soft Ore g/t Au 5.61 5.61
Kerekounda ROM hard ore Mt 0.0 0.0
Gold Grade Hard Ore g/t Au 12.11 12.04
Total Mined ounces oz Au 7 7
Masato soft waste Mt 29.3 7.2 5.2 3.1 4.5 4.6 0.1 2.2 2.2 0.0
Masato hard waste Mt 126.8 3.1 5.4 6.2 6.4 12.8 15.8 15.7 16.5 21.9 7.5 5.7 6.0 3.5 0.2
Masato total waste Mt 156.0 10.4 10.6 9.4 11.0 17.4 15.9 17.9 18.7 21.9 7.5 5.7 6.0 3.5 0.2
Masato ROM soft ore Mt 6.2 1.4 1.7 1.4 1.1 0.1 0.3 0.1 0.1 0.0
Gold Grade Soft Ore g/t Au 1.46 1.22 1.42 1.63 1.67 1.63 1.67 0.90 1.06 0.88
Masato ROM hard ore Mt 12.8 0.0 0.1 0.4 0.5 1.3 1.2 1.1 1.3 1.3 1.2 1.2 1.4 1.6 0.2
Gold Grade Hard Ore g/t Au 2.26 1.26 1.54 2.05 1.93 1.94 2.50 2.18 2.06 1.89 2.27 2.47 2.67 2.46 3.29
Total Mined ounces oz Au 1,224 57 84 101 90 86 114 83 86 81 85 93 117 124 23
O/P MINING ALL DEPOSITS
OP soft waste Mt 40.6 4.6 5.0 1.6 7.2 5.2 3.1 4.5 4.6 0.1 2.2 2.2 0.0
OP hard waste Mt 143.9 1.1 3.7 11.0 4.4 5.4 6.2 6.4 12.8 15.8 15.7 16.5 21.9 7.5 5.7 6.0 3.5 0.2
OP total Waste Mt 184.4 5.7 8.7 12.6 11.7 10.6 9.4 11.0 17.5 15.9 17.9 18.7 21.9 7.5 5.7 6.0 3.5 0.2
ROM soft ore Mt 6.8 0.2 0.3 0.1 1.4 1.7 1.4 1.1 0.1 0.3 0.1 0.1 0.0
Gold Grade Soft Ore g/t Au 1.53 2.81 1.70 2.50 1.22 1.42 1.63 1.67 1.63 1.67 0.90 1.06 0.91
ROM hard ore Mt 15.1 0.1 0.5 1.2 0.4 0.2 0.4 0.5 1.3 1.2 1.1 1.3 1.3 1.2 1.2 1.4 1.6 0.2
Gold Grade Hard Ore g/t Au 2.28 4.12 3.03 2.16 1.85 1.53 2.05 1.93 1.94 2.50 2.18 2.06 1.89 2.27 2.47 2.67 2.46 3.29
Total ore mined O/P Mt 21.9 0.3 0.8 1.3 1.8 1.8 1.8 1.6 1.5 1.5 1.3 1.3 1.3 1.2 1.2 1.4 1.6 0.2
Total Mined ounces O/P oz Au 1,443 33 68 92 80 85 101 90 89 114 83 86 81 85 93 117 124 23
SR t:t 8.4 17.9 10.6 9.7 6.4 5.8 5.1 6.9 12.0 10.6 14.2 14.0 16.5 6.4 4.8 4.4 2.3 1.0

Table 21.3: Underground Production Schedule

PERIOD
UNDERGROUND MINING
Golouma ROM hard ore Mt
4.60

0.2 0.3 0.4 0.5 0.5 0.4 0.5 0.3 0.3 0.5 0.4 0.3 0.1

Gold Grade Hard Ore g/t Au
4.19

4.59 4.13 4.48 4.93 5.00 4.82 4.19 3.33 3.14 3.51 3.68 4.00 3.88

Total Mined ounces koz Au
6209

28 42 59 79 73 68 63 31 32 52 50 35 9

Kerekounda ROM hard ore Mt
1.3 0.0 0.3 0.3 0.3 0.3 0.1 0.0

5.15 3.45 3.84 5.35 5.20 5.31 7.59 5.29

Total Mined ounces koz Au
221 1 38 55 45 45 29 7

Kourouloulou ROM hard ore Mt 0.2 0.0 0.1 0.1 0.0
8.16 5.65 12.52 4.56 7.78

Total Mined ounces koz Au 50 3 29 11 7
Total ore mined U/G Mt
6.1 0.0 0.4 0.4 0.5 0.6 0.5 0.5 0.5 0.4 0.5 0.3 0.3 0.5 0.4 0.3 0.1

Total Mined ounces U/G oz Au
890 4 67 66 79 87 88 86 73 68 63 31 32 52 50 35 9

Table 21.4: Total Production Schedule

PERIOD
TOTAL ALL DEPOSITS
Total soft waste Mt 40.6 4.6 5.0 1.6 7.2 5.2 3.1 4.5 4.6 0.1 2.2 2.2 0.0 0.0 0.0 0.0 0.0 0.0
Total hard waste Mt 143.9 1.1 3.7 11.0 4.4 5.4 6.2 6.4 12.8 15.8 15.7 16.5 21.9 7.5 5.7 6.0 3.5 0.2
Total Waste Mt 184.4 5.7 8.7 12.6 11.7 10.6 9.4 11.0 17.5 15.9 17.9 18.7 21.9 7.5 5.7 6.0 3.5 0.2
ROM soft ore Mt 6.8 0.2 0.3 0.1 1.4 1.7 1.4 1.1 0.1 0.3 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0
Gold grade soft ore g/t Au 1.53 2.81 1.70 2.50 1.22 1.42 1.63 1.67 1.63 1.67 0.90 1.06 0.91 0.00 0.00 0.00 0.00 0.00
ROM hard ore Mt
21.2 0.1 0.9 1.6 0.9 0.7 0.9 1.0 1.8 1.7 1.6 1.5 1.6 1.6 1.6 1.6 1.6 0.2
Gold grade hard ore g/t Au
2.93 4.28 4.05 2.92 3.62 4.02 3.82 3.50 2.72 3.10 2.77 2.29 2.13 2.62 2.79 2.89 2.52 3.29
Soft ore ounces mined oz Au 337 20 15 9 56 77 74 59 6 14 4 3 0 0 0 0 0 0
Hard ore ounces mined oz Au
1997 17 120 149 104 94 115 117 157 168 142 114 112 136 144 151 133 23
Total ore mined Mt
28.03 0.34 1.20 1.70 2.31 2.43 2.35 2.14 1.91 1.95 1.73 1.63 1.64 1.62 1.60 1.63 1.65 0.22
Total mined grade Au g/t
2.59 3.34 3.50 2.89 2.15 2.20 2.50 2.56 2.65 2.91 2.63 2.23 2.13 2.62 2.79 2.89 2.52 3.29
Total mined ounces oz Au
2334 37 135 158 159 172 189 176 163 182 146 117 112 136 144 151 133 23

21.5 Commodity Pricing
The Reserve estimation and mine was undertaken using a gold price of $1,250 per ounce.
Economic analysis at that price demonstrates economic viability with a project post-tax NPV of
$252m.
Further economic analysis was undertaken across a range of prices from $1350 to $1750 per
ounce, although the mine design was not revised for these higher prices. An optimised mine plan
for the higher prices would be expected to be more profitable than shown here, and would
encompass more gold production.
Details of marketing, contracts and pricing assumptions are contained in Section 18.
21.6 Capital Costs
Capital costs for the project are detailed in Section 20 and summarised in the table below. The
contingency of 11% is a weighted average across all project expenditure.
Table 21.5: High Level Capital Cost Summary
CAPITAL EXPENDITURE ($M USD) Total Initial Sustaining
UG Mine Development Capital 30.61 2.90 27.72
UG Mine Mobile Equipment 59.56 20.51 39.05
UG Mine nfrastructure 4.38 1.13 3.24
Open Pit Mine Capital 80.03 31.28 48.75
Process Plant 70.62 67.09 3.53
nfrastructure 59.42 56.45 2.97
Sustaining Capital for Mill and nfrastructure 14.01 0.00 14.01
ndirects, Mine and Miscellaneous 52.60 49.97 2.63
Tailings, Water and Roads 44.66 19.85 24.81
Owners Costs 20.00 20.00 0.00
Closure 17.49 0.00 17.49

Contingency @ 11% 51.35 27.89 23.45
TOTAL CAPITAL COST 504.74 297.08 207.66
Pre-production owners' costs were estimated and supplied by OJVG.

21.7 Operating Costs
Operating Costs are detailed in Section 20 and those used for economic evaluation are
summarised in the tables below.
Table 21.6: Unit Operating Costs Summary
Summary Unit Operating Costs Unit Cost
UG Mining Unit OPEX $/t ore mined $41.51
OP Mining Unit OPEX $/t ore mined $17.17
Milling/G&A/Site/Tails unit OPEX $/t milled $19.30
G&A Unit Costs $/t milled $5.50
mport duty Unit Costs $/t milled $2.17
Total Unit OPEX $/t milled $49.44
Total Unit OPEX $/oz $653.98
The following tables summarise the unit operating costs of production.
Table 21.7: Unit Operating Costs per Tonne of Ore (Underground)
Underground Unit Operating Costs Unit Cost
Total Secondary Development $/t ore mined $5.58
Total C&F Stoping $/t ore mined $13.63
Haulage (Ore, Waste, Backfill) $/t ore mined $8.03
Ancillary Equipment $/t ore mined $3.52
Electricity $/t ore mined $2.79
Technical & Admin Labour $/t ore mined $2.18
Maintenance Labour $/t ore mined $1.10
Mine Supervisory Labour $/t ore mined $1.64
Production Labour $/t ore mined $1.61
Mine Dewatering $/t ore mined $0.28
Mine G & A $/t ore mined $1.15
All Underground Mining Opex $/t ore mined $41.51

Table 21.8: Unit Operating Costs per Tonne (Open Pit)
Open Pit Unit Operating Costs Unit Cost
LOM Strip Ratio (Waste:Ore) (Waste : Ore) 8.4 : 1
Open Pit Mining $/tonne material $1.85
Open Pit Mining $/tonne of ore $17.17
Table 21.9: Unit Operating Costs per Tonne of Ore (Processing)
Processing Unit Cost
Power $/t ore milled $10.38
Reagents and Consumables $/t ore milled $6.66
Maintenance Consumables and Services $/t ore milled $0.75
Process Plant Labour $/t ore milled $1.51
Processing Total $/t ore milled $19.30
Table 21.10: Unit Operating Costs per Tonne of Ore (G&A)
General and Administration Unit Cost
General & Administration $/t ore milled $3.35
G&A Labour $/t ore milled $1.08
Camp $/t ore milled $1.06
G&A Total $/t ore milled $5.50
Table 21.11: Summary Unit Costs per Ounce of Gold
Unit Costs per Ounce Unit Cost
All Mining $/oz $297.38
Milling/G&A/Site/Tails unit OPEX $/oz $255.25
G&A Unit Costs $/oz $72.70
mport duty Unit Costs $/oz $28.65
Total Unit OPEX M$ $653.98

21.8 Taxes and Royalties
21.8.1 Government Royalty
A government royalty of 3% was applied to the net smelter return (i.e., payable metal x payable %
x price refining charges).
21.8.2 Corporate Income Tax
A simplified estimate of corporate tax payable was made using a tax depreciation schedule in line
with SRK's understanding of the tax policy in Senegal. This allocation was undertaken at a very
high level and should not be considered definitive. The overall project value is relatively insensitive
to the allocation of capital for depreciation. SRK considers the level of precision is appropriate for a
feasibility study.
A federal tax rate of 30% was used in accordance with the most recent tax rates applicable in
Senegal. These were updated in 2013. n accordance with government policy a tax-free period of
was applied until 2018. Oromin personnel were involved in assisting to determine appropriate
treatment for tax modelling.
21.8.3 Customs Duties
From 2018 onwards, a 15% import duty was applied to 50% of operating costs reflecting a high-
level estimate of the imported component of these costs.
21.8.4 Value Added Tax
The value added tax (VAT) was calculated at 18% and was applied to 80% of the capital and
operating costs, reflecting the expectation that some costs would be net of VAT. VAT refunds were
assumed to be delayed by 180 days and that only 90% of VAT would actually be refunded. The
Net present cost (NPC) (at 5% discount rate) of the modelled VAT tax stream is $14M.
21.8.5 Withholding Tax
No withholding tax was estimated. The project was evaluated "in country and independently of
ownership and corporate structure. t must be noted that withholding taxes of various types are
applicable when repatriating funds out of country. Expert advice on Senegalese Tax should be
sought by any foreign investor.
21.9 Working Capital
A high level estimation of working capital (accounts payable, accounts receivable and stores stock)
has been incorporated into the cash flow. Accounts receivable delays also include the financial
effect of any intermediate stockpiles
21.10Life-of-Mine summary Cashflows
Tables 21.12 to 12.15 summarise annual cash flows at various gold prices.
Table 21.12: LOM Summary Cashflow at $1250 per Ounce
Category UNIT NPV TOTAL -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Production Mt 28.0 0.0 0.3 1.2 1.7 2.3 2.4 2.4 2.1 1.9 1.9 1.7 1.6 1.6 1.6 1.6 1.6 1.6 0.2 0.0 0.0
Recoverable Grade gpt 2.4 0.0 3.1 3.1 2.8 2.2 2.0 2.3 2.3 2.4 2.6 2.4 2.0 1.9 2.4 2.5 2.6 2.3 3.0 0.0 0.0

Payable gold Koz 2119 0 0 74 152 198 176 172 160 146 167 133 106 102 124 131 137 121 21 0 0
Gold Price $/oz $1250/oz
Gold off site costs M$ 10 14.8 0.0 0.0 0.5 1.1 1.4 1.2 1.2 1.1 1.0 1.2 0.9 0.7 0.7 0.9 0.9 1.0 0.8 0.1 0.0 0.0
Gross Income pre-royalties M$ 1,717 2641.3 0 0 100 189 246 219 214 199 181 207 165 132 127 154 162 171 151 26 0 0
Royalty M$ 52 79.2 0.0 0.0 3.0 5.7 7.4 6.6 6.4 6.0 5.4 6.2 4.9 4.0 3.8 4.6 4.9 5.1 4.5 0.8 0.0 0.0
NET INCOME FROM MINING M$ 1,665 2562.0 0 0 97 183 238 212 207 193 176 201 160 128 123 149 157 166 146 25 0 0

OPERATING COST SUMMARY
UG mining cost M$ 169 254.1 0 2 15 16 23 22 21 22 19 18 19 12 14 19 18 11 4 0 0 0
OP mining cost M$ 244 376.0 0 14 19 25 22 17 17 20 31 32 32 32 38 20 18 20 16 2 0 0
Processing costs M$ 345 540.8 0 0 25 37 42 37 33 32 40 39 36 35 36 36 35 36 36 5 0 0
G&A M$ 95 154.1 0 0 3 8 10 10 10 10 10 10 10 10 10 10 10 10 10 10 0 0
15% mport Duty (after 7th year) M$ 34 60.8 0 0 0 0 0 0 0 0 7 7 7 7 7 6 6 6 5 1 0 0
TOTAL OPEX M$ 887 1385.8 0 16 62 86 98 87 82 84 107 107 105 96 105 91 88 83 72 18 0 0

Net VAT M$ 14 19.8 0 0 0 0 0 7 2 2 4 1 2 1 2 1 1 1 0 -3 0 -1
PRE-TAX NET OPERATING INCOME M$ 765 1156.4 0 -16 35 97 140 118 123 107 64 94 53 31 16 57 69 82 74 10 0 1

Depreciation and depletion M$ 281 447.3 0 0 0 0 41 43 43 44 46 48 39 18 19 19 20 19 19 11 2 5
NET FEDERAL TAXABLE INCOME M$ 484 709.1 0 -16 35 97 99 75 80 62 18 46 15 13 -3 38 49 62 55 -1 -2 -4
Federal Tax M$ 94 154.2 0 0 0 0 0 22 24 19 6 14 4 4 0 11 15 19 17 0 0 0
NET PROFIT AFTER TAXES M$ 390 554.9 0 -16 35 97 99 52 56 44 13 32 10 9 -3 27 34 44 39 -1 -2 -4
Depreciation and depletion add-back M$ 281 447.3 0 0 0 0 41 43 43 44 46 48 39 18 19 19 20 19 19 11 2 5
OPERATING CASH FLOW M$ 671 1002.2 0 -16 35 97 140 96 99 88 59 80 49 27 16 46 54 63 57 10 0 1

CAPITAL COST SUMMARY
Underground
Underground Mine Capital Development M$ 21 29.6 0.0 2.8 2.0 3.7 1.8 0.8 2.8 2.3 2.8 2.6 0.9 1.6 2.2 2.2 0.8 0.0 0.2 0.0 0.0 0.0
Underground Mine Capital Raise Development M$ 1 1.0 0.0 0.1 0.1 0.2 0.1 0.0 0.0 0.1 0.1 0.1 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0
UG Mine Mobile Equipment M$ 46 59.6 10.5 10.0 4.2 0.8 1.3 0.3 6.8 8.4 5.4 3.4 1.4 3.6 3.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0
UG Mine nfrastructure (Ventilation and Dewatering) M$ 3 4.4 0.7 0.4 0.4 0.5 0.1 0.6 0.2 0.2 0.2 0.1 0.3 0.3 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.0

Open Pit
Open Pit Subtotal Primary M$ 48 62.7 0.0 20.8 4.4 7.0 0.0 0.0 0.0 2.5 10.8 3.4 9.2 1.7 2.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Open Pit Subtotal Ancillary M$ 9 10.4 0.0 7.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.1 2.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Open Pit Subtotal Miscellaneous M$ 3 3.9 0.0 2.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.4 0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Open Pit Spares nventory @ 5% M$ 3 3.0 0.0 1.5 0.2 0.3 0.0 0.0 0.0 0.1 0.5 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Process Plant and Infrastructure
Process Plant M$ 66 70.6 17.7 49.4 3.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
On-Site nfrastructure M$ 38 40.1 10.0 28.1 2.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Off-site nfrastructure M$ 18 19.3 4.8 13.5 1.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
ndirects M$ 34 36.3 9.1 25.4 1.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Mine M$ 9 9.2 2.3 6.5 0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Miscellaneous M$ 7 7.1 1.8 4.9 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Sustaining Capital for Mill and nfrastructure M$ 9 14.0 0.0 0.0 0.4 0.8 1.4 1.4 1.2 1.1 0.9 1.0 0.9 0.8 0.8 0.8 0.8 0.8 0.8 0.1 0.0 0.0

TSF, Water, Roads and Closure
Haul Roads M$ 7 7.1 6.1 0.0 0.9 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Water Reservoir Dam M$ 6 5.9 5.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Tailings Management Facility M$ 21 28.2 5.4 0.0 4.1 0.0 4.6 0.0 0.0 0.0 6.4 0.0 0.0 0.0 0.0 7.6 0.0 0.0 0.0 0.0 0.0 0.0
Surface Water Control M$ 3 3.5 1.0 1.5 1.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Closure M$ 7 17.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 17.5 0.0

Owners Costs
Exploration, studies, insurance, etc. M$ 19 20.0 10.0 10.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Contingency M$ 42 51.3 10 18 3 2 1 0 2 2 3 1 1 1 1 2 0 0 0 0 3 0
TOTAL CAPITAL COST M$ 419 504.7 95 202 30 15 11 4 13 16 30 15 17 9 11 13 2 1 1 0 21 0

NET ANNUAL CASH FLOW M$ 252 497.5 -95 -218 5 82 130 92 87 72 29 65 32 18 5 33 52 62 56 10 -21 1

Production Mt 28.0 0.0 0.3 1.2 1.7 2.3 2.4 2.4 2.1 1.9 1.9 1.7 1.6 1.6 1.6 1.6 1.6 1.6 0.2 0.0 0.0

Payable gold Koz 2119 0 0 74 152 198 176 172 160 146 167 133 106 102 124 131 137 121 21 0 0
Royalty M$ 56 85.5 0.0 0.0 3.1 6.1 8.0 7.1 6.9 6.4 5.9 6.7 5.3 4.3 4.1 5.0 5.3 5.5 4.9 0.8 0.0 0.0

UG mining cost M$ 169 254.1 0 2 15 16 23 22 21 22 19 18 19 12 14 19 18 11 4 0 0 0
OP mining cost M$ 244 376.0 0 14 19 25 22 17 17 20 31 32 32 32 38 20 18 20 16 2 0 0
G&A M$ 95 154.1 0 0 3 8 10 10 10 10 10 10 10 10 10 10 10 10 10 10 0 0
TOTAL OPEX M$ 887 1385.8 0 16 62 86 98 87 82 84 107 107 105 96 105 91 88 83 72 18 0 0

Net VAT M$ 14 19.8 0 0 0 0 0 7 2 2 4 1 2 1 2 1 1 1 0 -3 0 -1
PRE-TAX NET OPERATING INCOME M$ 895 1358.3 0 -16 39 112 160 135 140 122 79 110 66 42 25 69 81 95 86 12 0 1

NET FEDERAL TAXABLE INCOME M$ 614 911.1 0 -16 39 112 119 92 97 78 33 62 28 24 7 50 61 76 67 1 -2 -4
Federal Tax M$ 123 202.2 0 0 0 0 0 28 29 23 10 19 8 7 2 15 18 23 20 0 0 0
NET PROFIT AFTER TAXES M$ 491 708.9 0 -16 39 112 119 64 68 54 23 43 19 17 5 35 43 53 47 1 -2 -4

Underground

Open Pit

Process Plant M$ 66 70.6 17.7 49.4 3.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
ndirects M$ 34 36.3 9.1 25.4 1.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Mine M$ 9 9.2 2.3 6.5 0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Miscellaneous M$ 7 7.1 1.8 4.9 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Haul Roads M$ 7 7.1 6.1 0.0 0.9 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Closure M$ 7 17.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 17.5 0.0

Owners Costs
Contingency M$ 42 51.3 10 18 3 2 1 0 2 2 3 1 1 1 1 2 0 0 0 0 3 0


Production Mt 28.0 0.0 0.3 1.2 1.7 2.3 2.4 2.4 2.1 1.9 1.9 1.7 1.6 1.6 1.6 1.6 1.6 1.6 0.2 0.0 0.0

Payable gold Koz 2119 0 0 74 152 198 176 172 160 146 167 133 106 102 124 131 137 121 21 0 0
Royalty M$ 64 98.1 0.0 0.0 3.4 7.0 9.2 8.1 8.0 7.4 6.8 7.7 6.1 4.9 4.7 5.7 6.0 6.4 5.6 1.0 0.0 0.0

UG mining cost M$ 169 254.1 0 2 15 16 23 22 21 22 19 18 19 12 14 19 18 11 4 0 0 0
OP mining cost M$ 244 376.0 0 14 19 25 22 17 17 20 31 32 32 32 38 20 18 20 16 2 0 0
G&A M$ 95 154.1 0 0 3 8 10 10 10 10 10 10 10 10 10 10 10 10 10 10 0 0
TOTAL OPEX M$ 887 1385.8 0 16 62 86 98 87 82 84 107 107 105 96 105 91 88 83 72 18 0 0

Net VAT M$ 14 19.8 0 0 0 0 0 7 2 2 4 1 2 1 2 1 1 1 0 -3 0 -1
PRE-TAX NET OPERATING INCOME M$ 1,159 1765.8 0 -16 50 141 198 169 173 153 107 142 92 62 45 93 107 122 109 16 0 1

NET FEDERAL TAXABLE INCOME M$ 878 1318.5 0 -16 50 141 157 126 130 109 61 94 53 44 27 74 87 102 90 5 -2 -4
Federal Tax M$ 183 300.8 0 0 0 0 0 38 39 33 18 28 16 13 8 22 26 31 27 1 0 0

Underground

Open Pit

Process Plant M$ 66 70.6 17.7 49.4 3.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
ndirects M$ 34 36.3 9.1 25.4 1.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Mine M$ 9 9.2 2.3 6.5 0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Miscellaneous M$ 7 7.1 1.8 4.9 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Haul Roads M$ 7 7.1 6.1 0.0 0.9 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Closure M$ 7 17.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 17.5 0.0

Owners Costs
Contingency M$ 42 51.3 10 18 3 2 1 0 2 2 3 1 1 1 1 2 0 0 0 0 3 0


Production Mt 28.0 0.0 0.3 1.2 1.7 2.3 2.4 2.4 2.1 1.9 1.9 1.7 1.6 1.6 1.6 1.6 1.6 1.6 0.2 0.0 0.0

Payable gold Koz 2119 0 0 74 152 198 176 172 160 146 167 133 106 102 124 131 137 121 21 0 0
Royalty M$ 72 110.8 0.0 0.0 3.9 8.0 10.3 9.2 9.0 8.4 7.6 8.7 6.9 5.5 5.3 6.5 6.8 7.2 6.3 1.1 0.0 0.0

UG mining cost M$ 169 254.1 0 2 15 16 23 22 21 22 19 18 19 12 14 19 18 11 4 0 0 0
OP mining cost M$ 244 376.0 0 14 19 25 22 17 17 20 31 32 32 32 38 20 18 20 16 2 0 0
G&A M$ 95 154.1 0 0 3 8 10 10 10 10 10 10 10 10 10 10 10 10 10 10 0 0
TOTAL OPEX M$ 887 1385.8 0 16 62 86 98 87 82 84 107 107 105 96 105 91 88 83 72 18 0 0

Net VAT M$ 14 19.8 0 0 0 0 0 7 2 2 4 1 2 1 2 1 1 1 0 -3 0 -1
PRE-TAX NET OPERATING INCOME M$ 1,426 2176.8 0 -16 64 171 236 203 207 184 135 175 118 83 65 117 132 149 133 20 0 1

NET FEDERAL TAXABLE INCOME M$ 1,145 1729.6 0 -16 64 171 195 160 163 140 89 127 79 65 46 98 112 129 114 9 -2 -4
Federal Tax M$ 242 399.4 0 0 0 0 0 48 49 42 27 38 24 19 14 29 34 39 34 3 0 0
OPERATING CASH FLOW M$ 1,184 1777.4 0 -16 64 171 236 155 158 142 108 137 94 63 51 88 98 110 98 17 0 1

Underground

Open Pit

Process Plant M$ 66 70.6 17.7 49.4 3.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
ndirects M$ 34 36.3 9.1 25.4 1.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Mine M$ 9 9.2 2.3 6.5 0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Miscellaneous M$ 7 7.1 1.8 4.9 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Haul Roads M$ 7 7.1 6.1 0.0 0.9 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Closure M$ 7 17.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 17.5 0.0

Owners Costs
Contingency M$ 42 51.3 10 18 3 2 1 0 2 2 3 1 1 1 1 2 0 0 0 0 3 0


NMW_DM_TS /WB/MN OJVG Golouma Gold_2012_FS_Technical_Report_2CO003 008_NMW_DM_TS_GA_DGP_20130315_Rev4 March 15, 2013
21.11Sensitivities
The effect of changes to inputs assumptions was modelled at a high level based around the $1550
per ounce case. The effect on valuation metrics was determined by altering the input values in the
technical economic model. An optimised mining and processing plan was not developed for each
case.
Table 21.16: Effect of Variation of Gold Price and Operating Costs on NPV
5
($1,550 base price).
LOM Capital Costs ($M)
404 454 505 555 606 656 707 757
-20% -10% 0% 10% 20% 30% 40% 50%
O
p
e
r
a
t
i
n
g

C
o
s
t

(
$
/
o
z
)
$ 523 -20% 766 731 697 662 627 592 558 523
$ 589 -10% 697 662 627 592 558 523 488 453
$ 654 0% 627 592 558 523 488 453 419 384
$ 719 10% 558 523 488 453 419 384 349 314
$ 785 20% 488 453 419 384 349 314 279 244
$ 850 30% 419 384 348 313 278 243 208 172
$ 916 40% 347 312 277 242 207 171 135 98
$ 981 50% 276 241 205 169 132 95 58 20
Table 21.17: Effect of Variation of Capital and Operating Costs on NPV
5
($1,550 base price)
Price ($/oz)
930 1,085 1,240 1,395 1550 1,705 1,860 2,015
-40% -30% -20% -10% 0% 10% 20% 30%
O
p
e
r
a
t
i
n
g

C
o
s
t

(
$
/
o
z
)
$ 523 -20% 49 214 375 536 697 857 1018 1179
$ 589 -10% (28) 143 306 466 627 788 949 1109
$ 654 0% (107) 69 235 397 558 718 879 1040
$ 719 10% (187) (8) 164 327 488 649 810 970
$ 785 20% (271) (86) 89 256 419 579 740 901
$ 850 30% (358) (167) 12 185 348 510 671 831
$ 916 40% (447) (248) (65) 109 277 440 601 762
$ 981 50% (537) (333) (146) 32 205 369 532 693

Table 21.18: Effect of variation in Price and All Costs on NPV
5
($1,550 base price).
Price ($/oz)
930 1,085 1,240 1,395 1550 1,705 1,860 2,015
-40% -30% -20% -10% 0% 10% 20% 30%
A
l
l

C
o
s
t
s
(
C
a
p
e
x

a
n
d

O
p
e
x
)

-20% 121 284 445 605 766 927 1088 1248
-10% 9 178 340 501 662 823 983 1144
0% (107) 69 235 397 558 718 879 1040
10% (226) (45) 129 292 453 614 775 936
20% (352) (163) 15 186 349 510 671 831
30% (484) (283) (100) 75 243 406 566 727
40% (616) (409) (219) (40) 135 300 462 623
50% (748) (541) (340) (156) 20 193 357 519
t can be seen that at base cost assumptions the breakeven gold price for the project is
approximately $1,000 per ounce.
The following graphs illustrate the sensitivity of project value to changes in assumptions with
respect to Gold Prices, CAPEX and OPEX.

Figure 21.1: Sensitivity Graph at $1350 Price Base
(400)
(200)
0
200
400
600
800
1000
-40% -30% -20% -10% 0% 10% 20% 30% 40% 50%
P
o
s
t
-
t
a
x

N
P
V
5
%
(
M
$
)
Percent Change from Base Case
Sensitivity of $1350 Case Economics
(Post-tax NPV
5%
)
Price
Capital Cost
Operating Cost
(200)
0
200
400
600
800
1000
1200
-40% -30% -20% -10% 0% 10% 20% 30% 40% 50%
P
o
s
t
-
t
a
x

N
P
V
5
%
(
M
$
)
(Post-tax NPV
5%
)
Price
Capital Cost
Operating Cost
0
200
400
600
800
1000
1200
1400
-40% -30% -20% -10% 0% 10% 20% 30% 40% 50%
P
o
s
t
-
t
a
x

N
P
V
5
%
(
M
$
)
(Post-tax NPV
5%
)
Price
Capital Cost
Operating Cost
21.12Payback Period
Table 21.19 below shows the payback period in months (non-discounted cashflows) from the
commencement of production.
Table 21.19:Payback Period from Commencement of Production
Price ($/oz)
930 1,085 1,240 1,395 1550 1,705 1,860 2,015
-40% -30% -20% -10% 0% 10% 20% 30%
A
l
l

C
o
s
t
s

(
C
a
p
e
x

a
n
d

O
p
e
x
)
-20% 45 31 23 19 16 14 < 12 months < 12 months
-10% 76 41 29 23 19 16 14 13
0% N/A 55 38 28 23 19 17 15
10% N/A 145 49 36 28 22 19 17
20% N/A N/A 76 45 34 27 22 20
30% N/A N/A 195 57 42 33 27 22
40% N/A N/A N/A 138 51 40 32 26
50% N/A N/A N/A N/A 75 47 38 31

22 Adjacent Properties
The information contained in this section is not considered material to this technical report, or the
OJVG resource estimate. The information is shown only for general interest of the land holdings
and activities in the region. The information in this section was extracted from public domain
documents, most of which come from the websites of the concession holders and from the website
www.sedar.com.
The 212.6 km
2
OJVG Golouma Gold Project concession is bordered on all sides by other mineral
concessions held by Randgold, AXMN, Teranga and Sored Mines. A number of orogenic gold
deposits have been discovered in the area covered by these exploration and exploitation
concessions, and one mining operation has been commissioned (Teranga Sabodala). All regional
prospects appear to be associated with north-northeast to northeast trending shear zones.
Figure 22.1 shows the approximate locations of the adjacent properties.

Figure 22.1: Adjacent Properties
22.1 Teranga Sabodala
The Sabodala Gold Mine is owned 90% by Teranga Gold Corporation (Teranga) through its wholly-
owned subsidiary Sabodala Gold Operations SA (SGO) and 10% by the Government of the
Republic of Sngal and operates under Sabodala Gold Operations SA (SGO). The OJVG Project
lies adjacent to the Teranga property on the east and south and part of the west as well. The
Teranga concession is 33 km
2
in size and has a mineral resource estimate of 2.87 million ounces
(Moz) of Measured and ndicated gold resources plus 1.67 Moz of inferred gold resources and has
a mineral reserve estimate of 1.59 Moz of gold.
The $330 million (estimate) Teranga Sabodala Gold project began commercial production in March
2009. Teranga produced 172 thousand ounces ("Koz) of gold in 2011 and expects to produce 130
Koz of gold in 2012. The CL cyanidation plant has a capacity of greater than 2 million tonnes per
annum (Mtpa) and underwent an expansion to 4 Mtpa in 2011.
Teranga's regional ground position comprises a Mining Concession and eleven Exploration
Permits in various joint ventures, totaling approximately 1,533 km
2
(Table 22.1). Over 75% of the
landholdings lie within a 35 km radius of Teranga's Sabodala mining operation.
Table 22.1: Teranga Exploration Concessions
Exploration Permit Teranga interest Area km Anniversary Date
Dembala Berola 100% 244 Jan-12
Massakounda 100% 186 Jan-12
Bransan 70% 261 Oct-12
Makana 80% 125 Nov-12
Sabodala NW 80% 120 May-12
Heremakono 80% 215 Oct-12
Sounkounkou 80% 213 Sep-12
Bransen Sud 100% 7 Nov-13
Sabodala Ouest 100% 3 Nov-13
Saiansoutou 100% 81 Nov-13
Garaboureya North 75% 50 Aug-13

With its gold plant operating at Sabodala, Teranga is refocusing on its regional and mine lease
exploration programs and plans to spend $40 million to end of 2012 on major RAB, RC and
diamond drill campaigns on both the mine lease and regional portfolio. Teranga spent US$43M on
exploration in 2011.
Sabodala Mine Lease
Teranga, in 2012, plans to spend US$ 20 million for exploration on the Mine Lease, investigating
up to ten targets. This work includes additional drilling to further evaluate the Main Flat Extension
and the Lower Flat Zone; the two main faults controlling mineralization in the mine. They also plan
to drill test the structural corridor that hosts the Mine along trend to the north, the Sambaya Hill
target at the junction of the Niakafiri Shear Zone and the Main Flat fault, the extension of the
Masato deposit on Teranga ground, and the Niakafiri and Soukhoto extension areas.
Regional Exploration
Through 2010, only early stage exploration including soil geochemical sampling, termite mound
sampling, airborne magnetic and radiometric surveys, mapping, trenching, RAB drilling and some
RC and core were completed.
Teranga spent US$31 million in 2011 completing 86,000 m RC, 29,000 m core and 151,000 m of
RAB drilling. Twenty-eight drill targets were tested, fourteen by RC or core and fifteen by RAB and
trenching. They plan to spend US$20 million on regional exploration in 2012, testing 36 exploration
targets.
Bransan
The property covers an area of 261 km
2
and is situated immediately adjacent to the OJVG
northeast boundary. Bransan is owned by a joint venture between SMC (70%) and private
Sngalese interests (30%). They completed 23,000 m of RAB drilling in 2011, following up on the
results from the soil geochemical sampling program. Several anomalous areas were identified. The
Diadiako structure with alteration, brecciation and quartz veining was identified and a 1 km long
section was drill tested at 200 m to 400 m intervals. An inferred mineral resource of 0.12 Moz of
gold grading 1.27 g/t Au is estimated at Diadiako.
Dembala Berola
2
and is situated to the east of the Bransan concession near
the Mali border and is 100% owned by SMC. Regional soil sampling and structural interpretation
defined eight prospective areas within a 2 km wide structural trend on the eastern boundary of the
Main Transcurrent Shear. The centrally located Dembala Hill mineralization is hosted in felsic
porphyry and dolerite with widths up to 74 m and grades to 6 g/t Au. The Tourokhoto area, located
west of Dembala Hills, is a 5 km by 1 km gold anomaly defined in termite sampling. t was tested by
1,006 RAB holes, totaling 23,416 m. Preliminary results were positive and additional RC drilling is
planned to further evaluate the area during 2012. No mineral resource estimate has been stated for
this concession.
Massakounda
2
and is situated approximately 5 km to the north of the
boundary of the Bransan concession and is 100% owned by Teranga. During 2011, a RAB and RC
drilling program tested the Massakounda structural target and gold anomalies. No mineral resource
estimate has been stated for the Massakounda concession.
Makana
The Makana project is a joint venture between New African Petroleum Company, SARL (NAFPEC)
and SMC. The Makana concession is located immediately to the southwest of the OJVG property.
t is 125 km
2
in size and covers a 5 km strike length of the structural trend that passes through the
OJVG concession and hosts the Sabodala gold deposit. The concession hosts the Majiva target;
one of several prospects defined by soil geochemistry and P geophysics. A drill program to
evaluate several of the targets is proposed for 2012. An inferred mineral resource of 0.04 Moz of
gold grading 1.5 g/t Au is estimated at Majiva
Sounkounkou
AXMN nc. (AXMN) holds 100% interest in the Sounkounkou, Sabodala NW and Heremakono
exploration concessions. AXMN entered into a joint venture agreement with Teranga whereby
Teranga may earn 80% interest in the property. Teranga earned their 80% interest by spending
US$ 6 million on exploration by May 2011. AXMN can retain its 20% interest by participating in
further expenditures on a pro rata basis or be reduced to a 1.5% production royalty.
The Gora deposit is located within the Sounkounkou concession, 22 km northeast of the mine. t
was first evaluated during early 2010, with a systematic RC drilling. This work delineated two sub-
parallel, shallow, southeast dipping, gold bearing quartz veins separated by 1 m to 20 m of country-
rock sediments. Vein one averages 8.8 g/t Au and a width of 2.5 m. Vein two averages 3g/t Au and
a width of 2.7 m. An extensive gradient array P geophysical survey was completed in 2011 and it
has outlined several anomalies including a possible 700 m extension of the Gora vein system and
several sub-parallel anomalies.
Teranga completed 237 RC and Core holes, totaling 39,878 m. This 2011 follow-up drill program
commenced in early January and had three main goals. Goal one was the lateral resource
extension along strike to the north and south;now tested by 40 RC and core holes (6,278 m) and
open to expansion. Goal two was a resource definition by completing the initial systematic 40 m x
40 m drill grid in the central portions of the prospect. Goal three was to explore at depth and test for
wider zones of mineralization where the vein system is projected to intersect a number of intrusive
rocks in the southeast. The Gora zone has now been drill tested to a depth of 130 m. The Gora
deposit has Measured and ndicated gold resources of 0.22 million ounces (Moz) grading 5.22g/t
Au and a mineral reserve estimate of 0.16 Moz of gold grading 3.64g/t Au.
Termite sampling at the Diegoun area of the Sonkounkou concession, located west of Gora has
outlined a 7 km by 4 km gold anomaly. Three priority areas were identified in the anomaly for
further work. Drilling at Diegoun North identified a 4.5 km northeast trending mineralized structure.
Follow-up drilling is planned for 2012.
Sabodala Northwest
The Sabodala NW concession is located adjacent to the west of the OJVG property. Several north-
south trending anomalies were identified at Toumboumba by a 1,150-hole RAB drill program
totaling 49,000 m. Forty-nine RC holes tested fifteen of the eighteen trends. Additional drilling is
planned for 2012.
22.2 Randgold Resources Ltd.
Randgold Resources Ltd. (Randgold) holds the exploration rights for the Miko, Tomboronkoto and
Kanoumba concessions, located southwest and southeast respectively, of the OJVG property.
Several anomalous gold zones have been discovered by soil sampling, trenching, and drilling
programs including Sofia, Bambaraya, Delya and the Bakan corridor. These targets were
evaluated in 2011. Randgold delineated an indicated gold resource of 3.18 Moz gold grading 2.56
g/t Au at the Massawa deposit, located in the centre of the newly combined Kanoumba permit,
about 10 km due south from the OJVG concession boundary. The ore body at Massawa is known
to be refractory and may require sulphide concentration and pressure oxidation prior to CL gold
recovery. The ore is abnormally hard and will require significant power to process, so alternate
power sources are being investigated.
23 Other Relevant Data and Information
Ausenco Minerals and Metals Canada (Ausenco) and SRK Consulting (SRK) were contracted by
Oromin Joint Venture Group (OJVG) to assist in the production of a Preliminary Economic
Assessment (PEA) for the heap leaching of low grade ore at their OJVG Gold Project in Senegal.
The contract resulted in a technical report entitled "Oromin Joint Venture Group, Golouma Project
Heap Leach Preliminary Economic Assessment dated June 18, 2011. The report was filed and is
available for review on SEDAR.
t is SRK's understanding that an updated PEA is being prepared by OJVG in relation to heap
leaching operations.

24 Interpretation and Conclusions
24.1 Conclusions
ndustry standard mineral resource estimation and economic evaluation practices have been used
to assess the OJVG Golouma Gold Project.
SRK considers the exploration potential at the OJVG Golouma Gold Project to remain very good
with the potential to increase resources through expanding current deposits at depth and on strike,
better defining known exploration targets and drilling new anomalies.
To date, SRK is not aware of any fatal flaws for the project.
24.2 Upside Risks
The most significant upside risks that could potentially improve the project's financial results are
listed below:
Conversion of inferred resources to higher classifications and subsequent inclusion in mine
planning;
Discovery and evaluation new mineral resources and mineral reserves;
Gold grade may locally be higher than modelled once mining takes place, since the grades
from high grade drill intercepts are smoothed during the geostatistical interpolation process.
The continuity of high grade intersections is unknown but may offer flexibility and opportunities
during mining;
Expansion of existing deposits both laterally and vertically;
There is potential to recover gold through a pyrite flotation circuit prior to the CL circuit and
regrind the concentrate prior to leaching. This may increase the overall gold recovery and
further test work is required to evaluate this option.
Recommended actions and opportunities for improving project value are outlined in Section 25.

24.3 Downside Risks
As with almost all mining ventures, there are risks and opportunities that can affect the outcome of
the OJVG Gold Project.
The major risk areas identified in this study are:
Lack of control over external drivers such as gold price and exchange rates;
Water supply in the region is scarce. The Golouma Gold Project relies upon water collected
during the rainy season and stored in the water reservoir. f the site water balance assumptions
are not achieved then there is a potential of the water shortage for the plant that could affect
the operations;
Ongoing attenuation studies may confirm that a liner would be required for the TMF. This
would result in a increase in capital cost in the order of $20M;
The FS design does not include a cyanide detoxification stage prior to discharging CL tailings
into the TMF. This design is in accordance with a similar plant operating within the region.
Sufficient plant space has been incorporated into the FS design to facilitate the inclusion of an
nco slurry detoxification circuit if a requirement is identified during the plant operation. The
total installed capital cost for this nco slurry detoxification system is expected to be around $3
to $4 million based on a high level scoping study estimate. The increase in the operating cost
is in the order of $1.6 /t $2.0 /t;
No government approvals or permits to proceed are granted following the submission and
evaluation of the ESA and the public presentation of the project;
Ongoing geochemical studies indicate the natural attenuation of contaminants of concern in the
underlying substrate of the TMF does not reduce seepage from the facility to acceptable limits;
Water quality of potential pit lakes do not meet WHO drinking water quality guidelines;
Timely supply of expatriate and skilled local personnel has the potential to be a very significant
risk to the success of the project. The ability to adequately train local un-skilled labour to the
required level is also a key factor, particularly for the underground mine;
The local "between-hole geological continuity of high-grade mineralization has not been
exposed by mining, leaving the possibility of segmented, en echelon geometries. Variation
between the predicted and actual deposit shapes can lead to unexpected dilution (lower head
grade); and
Project delay, due to finance delay, non-availability of key personnel, construction equipment,
contractors, long lead times on capital equipment delivery and environmental permitting can
affect the project.

25 Recommendations
SRK has been involved in providing consulting services for the OJVG Gold Project over the past 6
years. The project still offers opportunity for growth and the following recommendations are made.
25.1 Project Mining and Processing Strategy
Underground mining at Masato beneath the current design open pit appears to be a potentially
value-adding consideration. Additional geotechnical characterisation is required before this can
be incorporated at a feasibility level;
The production schedules and cut-off grade strategies have not yet been fully optimised for the
project. Additional value may be able to be created by investigating variable cut-off policies
utilising intermediate grade stockpiles. OJVG and SRK are in dialogue regarding the execution
of this work.
The processing throughput rate has remained essentially unchanged from the previous study.
A strategic revision of the optimum processing rate and mill expansion strategy for maximum
project value is recommended, given that the Resources and Reserves have increased for the
project.
ncorporate heap leaching into the overall process flowsheet as part of the onging optimisation.
This study could take into consideration the other open pit deposits that are still in the resource
definition stage.
A significant costs savings in capital for both the WSD and TMF dams could potentially be
attained by changing the blanket drain to a finger drain. Further optimization study is required,
but early indication suggests that this may be attainable.
Portions of the currently designated Heap Leach resources are presently above the cut-off
grade for CL designated mill feed and trade-off / optimization evaluation should be undertaken
to determine which process is best for this resource material.
25.2 Exploration
Continue exploration of existing deposits to increase both nferred and ndicated Resources as
well as Reserves; and
Continue exploration of other zones for mineralization on the permit area.
OJVG's quality control procedure is considered robust enough to undertake resource estimation.
The following recommendations should be considered in the future in order to improve confidence
in the resource estimation:
OJVG should send samples to an umpire laboratory on a more regular basis.
OJVG should continue to be extremely careful in their choice of field blank material, ensuring
that no fine veining with anomalous gold values is present.
25.3 Hydrogeology
A test pumping program should be undertaken at Masato and Golouma to adequately stress
the Weak and Transition zones (saprolite aquifer). Screened observation wells should be
installed at varying depths and at distances from the pumping well to best understand and
characterize the aquifer, increase confidence in the hydraulic properties of the weaker material
and mafic dykes at depth, and calibrate the groundwater model for dewatering design. Once
the test results are known these should revaluate pit slopes and mineability. The approximate
cost for this program will be $450,000.

25.4 Metallurgical and Mineral Processing Recommendations

25.4.1 Further Comminution Test Work
The test work undertaken to date on the ore competency (impact breakage for SAG mill sizing) and
ore hardness (abrasion breakage for ball mill sizing) is mainly based on bulk composites. t is
recommended that further variability test work be completed based on individual diamond drill core
samples taken over a larger range of holes across the deposits to confirm the design criteria. The
test work should comprise of SMC and ball mill work index tests.
The purpose of further variability comminution test work is to mitigate risk associated with the
orebodies being either on average harder than the ore parameters used for the FS, or containing
localised zones of harder ore.
25.4.2 General Plant Design Test Work
Recommended additional test work identified during the FS includes:
Sequential carbon contact and equilibrium loading test work;
CL leaching oxygen uptake test work;
Slurry rheology test work to confirm agitator and pumping size requirements;
Test work to confirm tailings thickening rates for high rate tailings thickener selection based on
a sample representing a production composite;
Bulk materials handling test work to optimise design of the chutes, conveyors, crushed ore
stockpile and reclaim facility; and
Confirmation of geotechnical foundation conditions for engineering design purposes in the
plant, particularly in the locations of heavy structures such as the grinding mills.
The overall cost for the recommended comminution, and general plant design test work is in the
order of $US 300,000.
25.4.3 Mill Power
Reduce the installed SAG and ball mill motors from 4,000 kW to 3,500 kW based on Ausenco
comminution modelling; however, there is a higher risk of not meeting the required 75 micron
grind size whilst treating 100% primary hard ore that could result in a decrease in gold
recovery.
25.5 General
SRK is unaware of any other significant factors and risks that may affect access, title, or the right or
ability to perform the exploration work recommended for the OJVG Golouma Gold Project.

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