Oromin Explorations Ltd.: Sabodala Property Results Continue to Expand New Discoveries and Extend Limits of Mineralization at OJVG’S Combined Open Pit and Underground Deposits
Ticker Symbol: U:OLEPF C:OLE

– () –

http://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=572111&ProfileId=051205&sourceType=1

Oromin Explorations Ltd. (TSX: OLE)(OTCBB: OLEPF) -

HIGHLIGHTS

– Drilling at the higher grade Epsilon (Kourouloulou) and Kerekounda
Deposits continues to intersect mineralization with grades favourable
for underground mining including:

Kourouloulou Kerekounda
———————— ————————
– 16.83 g/t gold over – 51.71 g/t gold over
3 metres in DH-560 1 metre in DH-582
– 29.64 g/t gold over – 15.44 g/t gold over
2 metres in DH-568 3 metres in DH-591
– 14.50 g/t gold over – 4.87 g/t gold over
5 metres in DH-597 10 metres in DH-596

– Drill results from the Cloverleaf (Koulouquinde) Prospect suggest that
it may become another higher grade gold deposit with considerable
underground mining potential, with recent results including:

– 13.13 g/t gold over 3 metres in RC-649
– 96.45 g/t gold over 1 metre in RC-653
– 14.24 g/t gold over 7 metres in RC-655

– Successful trenching at a New Discovery of near surface oxide
mineralization at Kobokoto South includes intervals of 1.25 g/t gold
over 35 metres, 1.91 g/t gold over 9 metres and 3.42 g/t gold over 5
metres.

Oromin Explorations Ltd. (“Oromin”) on behalf of the Oromin Joint Venture Group Limited (“OJVG”), is pleased to provide a drilling update and summary for the ongoing exploration program at its Sabodala Gold Project in eastern Senegal, West Africa. As at December 2009, OJVG has outlined 7 gold deposits and 18 gold targets within a 22 km long, 5 to 8 km wide, northeast trending structural corridor.

The 2009 drilling program has concluded and the 2010 drilling campaign will re-start in early January 2010.

Since the most recent OJVG resource update in August, 2009, 182 additional RC and core drill holes have been completed. The focus of the current drilling is the outlining of additional resources at the higher grade Golouma area deposits for their inclusion in a resource update due in Q2, 2010. These deposits include the most recent high grade discoveries at Epsilon (“Kourouloulou”) and Cloverleaf (“Koulouquinde”) and the high grade, down-dip extensions of the current indicated resources at the Kerekounda, Golouma West and Golouma South deposits.

All of these deposits host combined open pit and underground mining opportunity.

For more complete results and descriptions of these numerous gold deposits, please refer to previous news releases dated May 14, 2009, September 9, 2009 and October 7, 2009.

KOUROULOULOU DEPOSIT

Significant gold mineralization at the Kourouloulou (formerly named Epsilon) open pit and underground deposit was announced in May 2009. Since then 67 additional drill holes have been completed outlining a multiple quartz vein system over a strike length of 220 metres and to depths of 200 to 225 metres. The Kourouloulou mineralized zones remain open to expansion along strike as well as to depth. OJVG is drilling the deposit at closely spaced centres with the focus of outlining Indicated Resources for the planned Q2, 2010 resource update. All of the recent results and pending results for four additional holes, will be included in the Q2, 2010 resource update. Significant results include the following:

———————————————————————
Kourouloulou Deposit
———————————————————————
Grid Azimuth/ From – To Interval Gold
Drill Hole Co-ordinate Dip (m) (m) (g/t)
———————————————————————
RC-170(i) 53568N/5486E 030/-50 76-79 3 50.39
———————————————————————
RC-176(i) 53590N5454E 030/-50 51-56 5 19.97
———————————————————————
RC-578(i) 53553N/5375E 030/-50 56-68 12 10.20
———————————————————————
RC-579(i) 53501N/5345E 030/-50 192-204 12 23.53
209-217 8 16.54
———————————————————————
RC-637(i) 53565N/5383E 030/-50 35-42 7 24.56
———————————————————————
DH-456(i) 53528N/5337E 030/-50 104-106 2 13.09
———————————————————————
DH-505(i) 53559N/5396E 030/-45 40-44 4 81.10
———————————————————————
DH-520(i) 53553N/5410E 030/-45 48-51 3 27.79
———————————————————————
DH-522(i) 53553N/5410E 030/-60 52-56 4 196.27
———————————————————————
DH-524(i) 53553N/5410E 030/-75 161-162 1 58.02
———————————————————————
DH-540 53563N/5435E 030/-50 93-95 2 29.26
———————————————————————
DH-544 53568N/5417E 030/-45 77-79 2 14.13
———————————————————————
DH-557 53777N/5527E 360/-45 41-43 2 7.04
———————————————————————
DH-560 53601N/5515E 030/-50 78-81 3 16.83
incl.79-80 1 45.28
———————————————————————
DH-568 53818N/5547E 360/-65 47-49 2 29.64
incl.48-49 1 50.91
———————————————————————
DH-579 53582N/5408E 030/-70 24-30 6 6.87
incl.27-30 3 11.95
105-107 2 6.61
———————————————————————
DH-581 53600N/5419E 030/-70 65-67 2 6.17
———————————————————————
DH-588 53512N/5388E 030/-65 83-84 1 35.39
182-183 1 15.50
———————————————————————
DH-592 53545N/5406E 030/-65 147-148 1 6.17
———————————————————————
DH-594 53545N/5406E 030/-80 203-204 1 6.53
———————————————————————
DH-597 53574N/5422E 030/-68 38-43 5 5.35
incl.42-43 1 17.70
103-108 5 14.50
incl.103-105 2 33.66
———————————————————————
(i) Previously Released

KEREKOUNDA DEPOSIT

To the end of the OJVG’s 2009 drill program, a total of 28 additional holes have been completed at the Kerekounda open pit and underground deposit beyond those included in the August 2009 resource update. The majority of these holes were deep step-outs targeting higher grade mineralization both down-dip and laterally from previously defined Indicated Resources. Successful drilling results from these holes, including the most recent, will expand the mineralization beyond previous resource outlines which should further enhance the underground mining opportunity at Kerekounda.

Furthermore, these successful drill holes confirm that the higher grade zones comprising the Kerekounda deposit remain open to expansion both laterally and to depth, providing a future resource expansion opportunity. All of the recent results and pending results for two additional holes will be included in the Q2, 2010 resource update. Significant results include the following:

———————————————————————
Kerekounda Deposit
———————————————————————
Grid Azimuth/ From – To Interval Gold
Drill Hole Co-ordinate Dip (m) (m) (g/t)
———————————————————————
RC-458(i) 54677N/5409E 060/-60 112-122 10 7.15
———————————————————————
RC-463(i) 54701N/5457E 060/-70 66-73 7 25.34
———————————————————————
RC-535(i) 54627N/5458E 060/-60 86-98 12 15.33
———————————————————————
DH-415(i) 54616N/5441E 060/-60 116-121 5 12.22
———————————————————————
DH-424(i) 54665N/5415E 060/-60 112-116 4 14.89
———————————————————————
DH-426(i) 54588N/5255E 060/-60 287-300 13 10.12
———————————————————————
DH-468(i) 54584N/5209E 060/-50 311-318 7 12.45
———————————————————————
DH-488(i) 54541N/5204E 060/-54 360-369 9 7.17
———————————————————————
DH-578 54552N/5242E 060/-60 322-324 2 12.59
———————————————————————
DH-582 54461N/5396E 060/-68 274-275 1 51.71
———————————————————————
DH-589 54513N/5288E 060/-59 308-311 3 8.35
335-336 1 9.00
———————————————————————
DH-591 54484N/5298E 060/-60 312-315 3 15.44
incl.314-315 1 43.09
340-344 4 7.89
incl.342-343 1 23.89
———————————————————————
DH-596 54584N/5191E 056/-53 325-335 10 4.87
incl.328-331 3 7.89
———————————————————————
DH-605 54577N/5232E 059/-62 319-321 2 28.05
incl.320-321 1 53.10
———————————————————————
(i) Previously released

GOLOUMA WEST AND GOLOUMA SOUTH DEPOSITS

At the conclusion of OJVG’s 2009 drill program, a total of 33 additional holes had been completed at the Golouma West and Golouma South open pit and underground deposits, beyond those holes included in the August 2009 resource update. The majority of these holes targeted higher grade mineralization as deep step-out holes both down-dip and laterally from previously defined Indicated Resources. Successful drilling results from these holes, including the most recent sequence of holes, will expand mineralization beyond previous resource outlines, enhancing underground mining opportunities at both deposits.

Based on the favourable results from recent drilling at Golouma West and Golouma South, expansion opportunities both laterally and to depth have been confirmed. All of the recent drilling results, plus additional pending results for four additional holes, will be included in the Q2, 2010 resource update. Significant results include the following:

———————————————————————
Golouma West Deposit
———————————————————————
Grid Azimuth/ From – To Interval Gold
Drill Hole Co-ordinate Dip (m) (m) (g/t)
———————————————————————
DH-434(i) 53265N/4706E 015/-60 304-313 9 13.39
———————————————————————
DH-517(i) 53355N/4658E 015/-70 275-279 4 6.27
———————————————————————
DH-526(i) 53355N/4634E 015/-70 302-305 3 9.94
———————————————————————
DH-539(i) 53299N/4673E 015/-67 311-321 10 17.54
———————————————————————
DH-587 53574N/4408E 016/-60 120-137 17 2.84
Incl.128-132 4 5.41
146-149 3 3.10
———————————————————————
DH-590 53510N/4370E 016/-62 237-242 5 4.07
———————————————————————
(i) Previously released

———————————————————————
Golouma South Deposit
———————————————————————
Grid Azimuth/ From – To Interval Gold
Drill Hole Co-ordinate Dip (m) (m) (g/t)
———————————————————————
RC-555(i) 52593N/4999E 110/-64 159-168 9 12.79
———————————————————————
RC-557(i) 53058N/4955E 110/-59 257-263 6 8.01
———————————————————————
DH-519(i) 53163N/4959E 110/-60 262-273 11 8.26
———————————————————————
DH-523(i) 53138N/4959E 110/-67 275-280 5 5.55
———————————————————————
DH-528(i) 53095N/5008E 110/-60 200-204 4 12.52
———————————————————————
DH-545 52958N/5135E 110/-60 38-46 8 4.29
incl.38-42 4 6.04
———————————————————————
DH- 548 52949N/5108E 110/-60 51-55 4 4.71
incl.54-55 1 13.99
———————————————————————
(i) Previously released

KOULOUQUINDE PROSPECT

Recent drilling at the Koulouquinde Prospect (formerly named Cloverleaf) is indicating that this prospect may become the newest gold deposit offering a higher-grade open pit and underground mining opportunity for OJVG.

The intent of the recent drilling program at this prospect is to have enough drill information to be included in the Q2, 2010 resource update.

Oromin has recently completed 16 reverse circulation holes at the Koulouquinde (Cloverleaf) prospect to follow up previous favourable results of 41.98 g/t gold over 1 metre in RC-642 at the North Koulouquinde zone and 6.78 g/t gold over 5 metres in RC-644 at the Main Koulouquinde vein system. Available results from the recent drilling listed in the accompanying table are all from the Main Koulouquinde vein system, except for RC-653 (96.45 g/t gold over 1 metre) that is from the North Koulouquinde zone. Drilling has now tested the Main Koulouquinde vein system over a strike extent of approximately 200 metres and to depths of approximately 125 to 150 metres below surface. Both the Main Koulouquinde and North Koulouquinde zones remain open to expansion. Results are pending for six of the holes recently completed at the Koulouquinde prospect.

Significant results from the recent drilling at the Koulouquinde prospect are summarized in the following table:

———————————————————————
Koulouquinde Prospect
———————————————————————
Grid Azimuth/ From – To Interval Gold
Drill Hole Co-ordinate Dip (m) (m) (g/t)
———————————————————————
RC-648 52365N/4485E 340/-68 16-19 3 5.18
125-126 1 7.00
———————————————————————
RC-649 52380N/4525E 340/-50 74-77 3 13.13
incl.74-75 1 29.46
———————————————————————
RC-653 52705N/4418E 220/-50 156-157 1 96.45
———————————————————————
RC-655 52382N/4480E 015/-50 48-55 7 14.24
incl.48-51 3 30.92
incl.49-50 1 66.53
71-72 1 9.19
143-144 1 30.86
———————————————————————

NEW DISCOVERY

KOBOKOTO SOUTH PROSPECT

Kobokoto South (formerly named Gamma) is an open-ended NE-SW trending, greater than 50 ppb gold-in-soil Geochem anomaly measuring a minimum of 1,300 metres in strike extent containing a high value of 1,990 ppb gold. Rock sampling results include values of up to 6.33 g/t gold and 7.48 g/t gold within the soil anomaly.

Oromin recently completed a series of twelve excavator trenches covering a 1,000 metre strike extent of this Prospect. Field observations indicate that hosting geology, alteration, structure and mineralization are very similar to the near-surface oxide mineralization previously observed in trenches and drilling at the Masato, Niakafiri and Maki Medina deposits. Favourable trench results from this phase of exploration include:

– 1.85 g/t gold over 4 metres in TRX-329
– 1.21 g/t gold over 11 metres, including 2.39 g/t gold over 3 metres
in TRX-330
– 1.91 g/t gold over 9 metres, including 3.59 g/t gold over 2 metres
in TRX-332
– 1.85 g/t gold over 5 metres in TRX-334
– 2.03 g/t gold over 5 metres in TRX-335
– 1.25 g/t gold over 35 metres, including 23.53 g/t gold over 1 metre,
3.64 g/t gold over 1 metre and 2.58 g/t over 3 metres in TRX-336
– 3.42 g/t gold over 5 metres in TRX-337

Additional trenching and drilling evaluation is planned for Kobokoto South in next year’s exploration program.

Technical supervision

Doug Turnbull, P. Geo., is a qualified person for the purposes of National Instrument 43-101, and has verified the data disclosed in this news release. William Bond, P. Geo., is also a qualified person for the purposes of National Instrument 43-101, and has supervised geologic field procedures.

Mineralized intervals for reported drill hole intersections are based on 1-metre samples utilizing a 1.0 g/t gold cut-off level. No cutting of gold assays has been employed for reported intervals. The attitude of mineralized intervals varies and reported mineralized intersections may not represent true widths.

TSL Laboratories in Saskatoon carried out all assaying under industry-standard QA/QC procedures.

To find out more about Oromin Explorations Ltd., visit www.oromin.com. Please refer to the Corporate Presentation in the “Investors/Presentations” section of the website and our previous news releases, for additional project information.

On behalf of the Board of Directors of OROMIN EXPLORATIONS LTD.

Chet Idziszek, President

Cautionary Statement

This document contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and our other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. Such forward-looking statements include, without limitation, estimates of exploration investment and the scope of exploration programs. There can be no assurance that such statements will prove to be accurate, and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company’s documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates or opinions change. Forward-looking statements are subject to risks, uncertainties and other factors, including risks associated with public markets, mineral exploration, price volatility in the mineral commodities we seek, and operational and political risks. Readers are advised not to place undue reliance on forward-looking statements.

Contacts:
Oromin Explorations Ltd.
David Scott
Investor Relations
(604) 331-8772 or Toll-free (877) 529-8475
(604) 331-8773 (FAX)
dscott@mine-tech.com
www.oromin.com

Mr. Giustra also has an interest in a company with highly qualified management but no noteworthy projects as of yet, Mala Noche Resources Corp. (
.17). Mala Noche, which means bad night in Spanish, is almost a shell. It has an option to explore the Ventanas gold property in Mexico but it is on care and maintenance, and the company has made it clear it is planning to buy a near-term producing precious metals property. The company also may arrange a private placement. “As we review potential targets, we are simultaneously taking the steps necessary to enable the company to quickly access the capital markets, should the need arise,” says chief executive officer Wade Nesmith, who is also a director of Silver Wheaton Corp. ($17.15). Mala Noche’s president, Eduardo Luna, is also a Silver Wheaton director, formerly its chairman. He is a former executive vice-president of Goldcorp Inc. ($44.66), a former president of the Mexican Mining Chamber and the former president of the Silver Institute.

In addition to Mr. Giustra, noteworthy subscribers include Ian Telfer, Peter Brown, Gregg Sedun, Robert Bishop and David Demers.

Cyanide and arsenic contamination and Acidic Mine Drainage
Over the past five years, numerous tests carried out by CAFOD and Development and Peace partner Caritas Tegucigalpa and the Honduran government show evidence of dangerous levels of arsenic, cyanide and other heavy metals in water sources flowing close to or from within the mine boundaries. In 2007, the Honduran Secretariat of Natural Resources and Environment (SERNA) fined Goldcorp one million lempiras, equivalent in value to about £26,000 (at the time) for pollution and damage to the environment. The company has consistently disputed these tests and has appealed against the fine.

In 2007, the Latin America Water Tribunal ruled on a complaint filed by members of the Siria Valley communities, finding Goldcorp accountable for damage to the environment and unreasonable use of water in the Siria Valley. The tribunal recommends that a thorough investigation into the health of local communities is carried out, that all mining activity is suspended and the communities are compensated for the damage caused.

During a visit to Honduras in November 2008, Paul Younger, Professor of Hydro-Geochemical Engineering at Newcastle University and a world expert on mine water management, noted signs of acidic mine drainage close to the mine site. Acid mine drainage – a process whereby sulphides in the rock are exposed to oxygen and water and react to produce sulphuric acid – can have devastating impacts on the environment, contaminating groundwater with toxic heavy metals and killing plants and animals for years after the mine has closed.  Professor Younger’s observations included unequivocal signs of discoloration of streams indicating that metal-rich, and likely acidic, waters have discharged from the mine perimeter.

During a subsequent visit by Dr Adam Jarvis and Dr Jaime Amezaga, also of Newcastle University, clear evidence was seen that highly acidic and metal-rich water had discharged from one part of the mine (the Tajo Palo Alto) to a local stream, on at least one occasion. This evidence was in the form of an analytical report of water samples collected by DEFOMIN (the Honduran Department for the Administration of Mineral Resources), the government body responsible for promoting mining in Honduras, granting concessions and monitoring environmental impact.

Dr Amezaga and Dr Jarvis identified a clear need to ensure that measures are taken within the mine site to ensure that such incidences do not occur in the future.  Although Drs Jarvis and Amezaga in fact identified a number of positive aspects to the ongoing rehabilitation of the mine site, the mine closure plan itself has very inadequate details of the measures the mine proposes to take to ensure no pollution occurs in the future. Specifically, they recommended that the mine closure plan lacked key information on:

•       Exact details of the plans for rehabilitation
•       Evidence to support the proposals made, and
•       Details of the post-closure monitoring of the site to ensure rehabilitation is effective

Without a comprehensive mine closure plan it is not possible to have confidence that pollution incidences such as that noted above will not occur after the closure of the mine.

Alleged health impacts
Communities in the Siria Valley have complained of health problems, including respiratory, skin and gastro-intestinal diseases, which they believe are a result of drinking water polluted by the mine. A study carried out by the Honduran Department for the Environment in 2008, found high levels of heavy metals, such as arsenic, lead and mercury in blood samples taken from villagers living close to the mine. The study has yet to be published by the government. Goldcorp denies that the health problems are a result of their operations.

The people of the Siria Valley have repeatedly called on the government to provide medical care for those whose health is allegedly affected by the mine. In March this year the people of the Siria Valley protested at the Health Ministry demanding action by the government.

Water shortages
As well as pollution, communities living close to the mine have complained that heavy water use by the mine, in an area already prone to drought, has caused wells to dry up. During operations, the mine was authorised to use up to 220 gallons of water a minute and during the construction of the mine, Goldcorp used more than 60,000 gallons of water per day, while villagers faced shortages and had to buy water.

Displacement of communities
The small village of Palo Ralos was demolished in the year 2000 to make way for the San Martin mine. Fourteen families were relocated to a new settlement with the same name 900 metres from the mine. Nine years later, at the start of 2009, seven families had still not received legal titles to their new land and houses from Goldcorp. Nor had they received the property deeds for the community areas. Those families who did eventually receive land titles from the company found that they contained errors, for example the wrong name or identity card number, which could undermine the legal validity of their properties. They fear eviction from their land when the mine closes its operations and the company leaves Honduras.

Lack of consultation and information sharing
Community representatives have complained that they were not consulted adequately about the plans for the mine and, nor at any point did they give their consent for Goldcorp for the mine site to be developed. The people of the Siria Valley have also found it extremely difficult to obtain accurate information about Goldcorp’s operations at San Martin, including the controversial mine closure plan. A copy of the plan was requested from the government as far back as August 2007, but not obtained by Caritas and the community until October 2008.

Loss of farming land and deforestation
A large area of agricultural land in the Siria Valley has been damaged by the San Martin mine. Agriculture is the main source of livelihood for people in the region. A socio-economic study in 2003 estimated the impacts on farming of the Goldcorp mine by comparing the situation with baseline data from 1993. The survey showed that the quantity of land under cultivation in 2003 was well below the levels of 1993.   Between 1,000-2,000 trees were cut down by the company to make way for filtration ponds and other aspects of mining infrastructure. Deforestation has also exacerbated the problems of water shortages and soil erosion in what was already a dry area. While some reforestation work has been carried out by Goldcorp, many of the trees planted are from different species to those found naturally in the area.

Read part 1

Read part 2

The San Martin mine in Siria Valley is the largest opencast gold mine in Honduras, run by Entre Mares, a Honduran subsidiary wholly owned by the Canadian-US company Goldcorp. The company has consistently disputed test results confirming the presence of arsenic and cyanide in water sources flowing close to or from within the mine boundaries.

The mine, which began full operations in 2000 and will officially close at the end of this year, has caused controversy from the start, with local people claiming they were not fully consulted about the project. Earlier this year 24 cattle were found dead on grazing land near the mine; while large numbers of the local population, including children, have been suffering skin conditions and other health problems. Local people believe this is a result of pollution caused by the mine. Goldcorp denies this has any connection with their operation. 

Legislation regarding mining in Honduras is weak, and the government has done little to ensure the rights of affected communities are protected.

During the mine’s period of operation, the company used controversial cyanide heap-leaching methods to extract gold from low grade deposits. This means piles of crushed gold ore are soaked in a solution of cyanide which filters down leaching out the gold deposits and releasing other toxic heavy metals such as arsenic, mercury and lead. Without careful management, these pollutants can seep into streams and contaminate groundwater. This practice is banned in some US states.

Read part 1.

CAFOD (Catholic Agency for Overseas Development) recently released a press release outlining the findings of water contamination in Honduras. The release is quite lengthy and therefore will be posted in 3 segments.

Below is part 1 of 3.

An investigation by aid agency CAFOD and Canada’s Development and Peace has uncovered documents showing water contamination at a Honduras mine owned by multi-million dollar mining company Goldcorp.

The tests carried out by the Honduran authorities on water in the mine site which flows out into a local stream should have been acted on by the government and the company but instead the evidence of high acidity and metal concentrations were left undisclosed.

CAFOD and Development and Peace have handed the evidence of pollution by Goldcorp over to the Environmental Prosecutor in Honduras.

CAFOD’s Extractives Policy Analyst Sonya Maldar said: “Despite Goldcorp’s continual denial, this new information provides irrefutable evidence that the San Martin mine has caused pollution in Honduras. This is the latest in a long list of problems at the mine. Goldcorp must clean up its act so that the people of Siria Valley are not left with a toxic legacy when the company leaves Honduras at the end of the year.”

Mining specialists from Newcastle University carried out an investigation into the design and implementation of Goldcorp’s mine closure plan. The report produced by the Newcastle University team includes data – previously undisclosed by the Honduran regulatory authorities – showing a severe incident of pollution in September 2008.

The report released today reveals acidity of the water at two sites reached levels of a pH between 2.5 and 3, which is typically very damaging to stream biology. (Distilled water has a pH of 7, vinegar 3 and lemon juice 2). As well as high levels of cadmium, copper and iron.

This is consistent with a complaint presented by a local community group, the Siria Valley Environmental Committee, to Honduras’ Environmental Prosecutor about discolouration of the water flowing from streams originating from within the mine’s perimeter on 24 September 2008. Community members reported that the water was a “reddish colour (…) and emanated a strong smell of sulphur”. This indicates that contaminated water from the mine’s perimeter had entered streams used by people in the Siria Valley for domestic and agricultural purposes.

The high levels of iron in the tested water sites as well as the low pH are symptoms of Acidic Mine Drainage (AMD), which is caused by the weathering of pyrite (a mineral composed of iron and sulphur). Deposits of pyrite are usually present as sulphide deposits in layers of rock beneath the earth’s surface. When areas are mined these deposits are exposed to the air and they break down, releasing acidity into natural waters. Toxic metals associated with other minerals, such as copper and cadmium, dissolve readily in acidic waters, and if the resultant solution is released into waterways the effects on communities and wildlife can be devastating. However, AMD is managed effectively on many mine sites worldwide, including others operate by Goldcorp in other countries. There is no reason their Honduran operation should be managed to a lesser standard.

The Newcastle University report highlights that Goldcorp’s mine closure plan lacks sufficient detail to allow an independent evaluation on the basis of the report alone. Some of the things Goldcorp have done on the site are actually better than their report would suggest, but other things are worse.  For instance, the report did  not properly take into consideration the high intensity of many rainstorms in Honduras,  which can lead to flood and erosional risk on mine waste heaps and in ponds in which contaminated water is held. This means there can be a risk of contaminated water flowing into rivers and streams around the mine site, some of which feed drinking water sources for local communities. Although the company are now addressing earlier erosional problems, in the long term only sustained monitoring and maintenance can prevent such problems developing long after mine closure. 

According to the communities living near the mine, these measures continue to be insufficient. Drainage channels constructed by Goldcorp to collect water from the mine’s heap leach pads have overflowed on two occasions since their construction in May 2009, discharging water out towards the community road.

On inspection of the Siria Valley mine site in June this year, Dr Adam Jarvis and Dr Jaime Amezaga of Newcastle University saw unequivocal evidence that elevated concentrations of iron had flowed down the ravine from the Tajo Palo Alto open pit in the past. They saw that temporary measures were being taken by the mine staff to try to prevent future occurrences and that further measures were being proposed; despite this, Goldcorp’s management still refused to admit that the site had ever caused water contamination. Without open disclosure of how serious the water contamination was, it is difficult for independent specialists to be sure that the remedial measures now proposed by the mine will be sufficient to protect the communities from long term environmental hazards.

International expert of mine water management, Professor Paul Younger, who carried out an initial review of Goldcorp’s Mine Closure Plan and documented evidence of Acidic Mine Drainage during an earlier visit to the Siria Valley for CAFOD, said: “In spite of all the evidence of acidic mine drainage coming from the mine, the company denied live on national TV that they have caused pollution. This is not only exasperating; it does the company itself no favours.  If Goldcorp were to be up-front about the problems they’ve encountered at the San Martin mine, it would be possible for independent observers to gain confidence that the steps they are taking to address them will really work. When all’s said and done, there is no such thing as a “walk away” solution for mine sites, so the company must commit to long term monitoring of the site in order to prevent a reoccurrence of acidic mine drainage and erosion problems in the future. ”

TORONTO, ONTARIO–(Marketwire – Dec. 3, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Gleichen Resources Ltd. (TSX VENTURE:GRL) (“Gleichen” or the “Company”) announced today that it has been advised of the proposed sale by Goldcorp Inc. of its indirectly held 21.2% interest in the Morelos project in Mexico to Newstrike Capital Inc. Gleichen holds a 90 day right of first refusal to acquire the interest in the Morelos project being sold. Gleichen is assessing its alternatives in light of the agreement that Goldcorp has entered into and expects to make a determination regarding its exercise of the right of first refusal early in 2010.

Gleichen indirectly owns a 78.8% interest in the Morelos project. Gleichen is engaged in the acquisition, exploration, and development of mineral properties. The Company’s shares are traded on the TSX Venture Exchange under the symbol “GRL”.

ON BEHALF OF THE BOARD OF DIRECTORS OF GLEICHEN RESOURCES LTD.

Fred Stanford, President and CEO

The official aid agency of the Bishops’ Conference of England and Wales claims it has uncovered documents showing water contamination at a mine in Honduras owned by mining giant Goldcorp.

Cafod says:

Cafod and other activists will meet Goldcorp officials at their offices in Toronto on December 10 to discuss concerns raised by the report.

Cafod has some good background on the mine here.

traded 4.2 million shares on the ASX

big volume for them ..

also it looks like Fidelity Europe has taken a 5% stake or about 28 million shares..

could explain the crosses in canada?

i really hope some of you followed us into Newstrike!

it is halted pending an announcement

my speculation and only a guess is a merger with la camera .. a private company with landholdings to the south of gleichen ..

that would give newstrike property on 3 sides of the grl land!

or a JV with Goldcorp..either way i hope im right and its going to be BIG news

caliche

$1200 by the end of the week? Its strong rebound off 1137 tells me we are in a new phase of the gold cycle. The strength it showed in the face of the drop last week tells me we are now well and good in a gold bull market. Hold your gold shares for some spectacular returns we will not see again in our lifetimes!

My Pf is holding

GRL
NES.H
TML
CWS.H
OLE
LGD
TCC

stocks i do not hold but like are

DEC
UW
VHV
LVN

please feel free to post any stocks you hold that you think will have extraordinary returns in the next 2 to 5 years

caliche

The Los filos Project borders Gleichen to the south!!

If GRL can pull holes like this i will certainly have that Ferrari!

gold continues to reach for 1200 .. 1195 tonight!

Los Filos

Exploration drilling at Los Filos in 2009 focused on drilling the Bermejal extension to the south and on adding reserves in the 4P area. Assay results during the year demonstrate progress on both fronts, with 102.16 metres of 1.41 g/t gold and 99.25 metres of 1.40 g/t gold in the Bermejal south extension, as well an exceptional intercept of 84.27 metres true width at 14.91 g/t gold in the 4P area. The objective of further drilling at 4P is to develop an open-pit mine to be integrated into the existing Los Filos operations.

LOS FILOS DRILLING RESULTS
Approximate True
Drill hole Area From (m) To (m) width (m) Au (g/t)

EG39-09 4P 25.30 109.57 84.27 14.91
EG30-09 4P 92.57 107.74 15.17 5.25
EG46B-09 4P 71.45 172.45 101.00 0.97
BSG30-09 Bermejal 48.74 151.00 102.16 1.41
BSG28-09 Bermejal 126.30 171.45 45.15 1.83
BSG56-09 Bermejal 143.35 242.60 99.25 1.40

all of a sudden i dont have enough!!

NES.H

Lundin, Lukas Henrik Direct Ownership Common Shares 10 – Acquisition in the public market 63,000 .400
Lundin, Lukas Henrik Direct Ownership Common Shares 10 – Acquisition in the public market 24,000 .400
Lundin, Lukas Henrik Direct Ownership Common Shares 10 – Acquisition in the public market 96,000 .400
Lundin, Lukas Henrik Direct Ownership Common Shares 10 – Acquisition in the public market 1,500 .400
Lundin, Lukas Henrik Direct Ownership Common Shares 10 – Acquisition in the public market 19,500 .450
Lundin, Lukas Henrik Direct Ownership Common Shares 10 – Acquisition in the public market 489,000 .450

Two-Step Strategy to Making a Fortune in Gold

Everything is in place for gold. And as gold makes incrementally new highs and rebounds from the eventual and unexpected corrections, there will be more opportunity.
But at this stage in gold’s run, there’s a simple two step strategy to make a fortune in gold in the next few years.

Step 1) Make a plan to buy gold and gold stocks over the next three to five years

Step 2) Stick to the plan

That’s the beauty of getting in something relatively early. Gold has made a good run over the last eight years, but the biggest money will likely be made in the next eight years as a lot more money piles into the “utter nonsense” that is gold.

17th November 2009

TORONTO (miningweekly.com) – TSX Venture Exchange-listed Gleichen Resources has completed its acquisition of 78,8% of the Morelos gold project, in Mexico, from diversified miner Teck Resources, the companies announced on Tuesday.

In a transaction first announced in August, Gleichen paid $150-million in cash, about 1,6-million in shares and 12,4-million special warrants, which, once exercised, will leave Teck with about 4,9% of the smaller company.

Teck will put the cash proceeds towards reducing what remains of its term loan, taken on to acquire Fording Canadian Coal last year, the company confirmed.

The term debt will be reduced to around $2,37-billion thanks to the Morelos cash, the company said.

Teck CEO Don Lindsay said last month the loan will be down to about $1,1-billion, after the miner completes all the asset sales already announced.

Gleichen, meanwhile, announced that it has appointed two new directors – Terry MacGibbon and Fred Stanford.

Stanford has also been named president and CEO, replacing Michael Murphy, who will remain as a director.

Earlier this month, Gleichen completed a C$241,5-million private placement of special warrants, to fund the Morelos transaction.

“Gleichen is well funded to carry out the necessary work to bring the Morelos project to the feasibility stage and is in the process of assembling excellent management and technical teams to carry out this work,” Stanford said in a statement.

The remaining 21,2% interest in the Morelos project is owned by Canadian gold-miner Goldcorp.

Shares in Gleichen Resources slid 2,34% on Tuesday, to C$1,25 apiece by 13:31 in Toronto.

Teck was up 0,86%, at C$35,26 a share.
Edited by: Liezel Hill

Gleichen Resources closes $241.5-million financing
Ticker Symbol: C:GRL

Gleichen Resources closes $241.5-million financing

Gleichen Resources Ltd (C:GRL)
Shares Issued 29,763,380
Last Close 11/12/2009 $1.26
Thursday November 12 2009 – News Release

Mr. Michael Murphy reports

GLEICHEN COMPLETES $241.5 MILLION FINANCING

Gleichen Resources Ltd. has completed its previously announced financing to finance the acquisition of 78.8 per cent of the Morelos gold project from Teck Resources Ltd.

The agents, co-lead by Macquarie Capital Markets Canada Ltd., BMO Capital Markets and GMP Securities LP, and including Dundee Securities Corp., Scotia Capital Inc. and Jones, Gable & Company Ltd., placed 241.5 million special warrants of the corporation, including full exercise of the overallotment option, at a subscription price of $1 per special warrant, to raise gross proceeds of $241.5-million.

Each special warrant entitles the subscriber to receive, upon exercise, or deemed exercise following the qualification date (as defined below), and without payment of any further consideration, one unit of the corporation consisting of one common share in the capital of the corporation and one-fourth of one common share purchase warrant. Each common share purchase warrant will entitle its holder to purchase one additional common share for $1.30 for a period of 24 months following Nov. 12, 2009. The special warrants will be deemed automatically exercised, if not already exercised by the holder, on the earlier of:

The third business day after the date of receipt of a (final) prospectus to qualify, in each of the qualifying jurisdictions, the distribution of the common shares and common share purchase warrants to be issued in Canada upon exercise or deemed exercise of the special warrants and the compensation options (as defined below);
4:59 p.m. (Toronto time) on the date which is four months and one day following Nov. 12, 2009.
The corporation has undertaken to file a prospectus in each of the provinces of Canada, except Quebec, as soon as possible following closing. Unless a (final) receipt for a prospectus is received as described above, the special warrants and units are subject to resale restrictions in Canada until March 13, 2010.

The gross proceeds from the offering, less the agents’ estimated costs and expenses in respect of the offering, have been deposited in escrow to be released upon satisfaction of:

All necessary conditions for the completion of the acquisition of the Morelos gold project;
No material adverse change in the financial condition, business or operations of Gleichen;
Receipt by the escrow agent of a joint notice from the agents and Gleichen that the above two points have been satisfied.
The agents have received a cash commission of 5.5 per cent of the gross process from the offering, which forms part of the escrowed proceeds and has been deposited into escrow. In addition to cash commission, the agents have received 2,415,000 compensation options. Each compensation option will be exercisable to acquire one unit, until Nov. 12, 2011, at an exercise price of $1.15.

The net proceeds from the offering are intended to be used for the acquisition of the Morelos project, feasibility and development programs, and exploration at the Morelos gold project and for general working capital purposes.

they crossed 10 million shares off the floor today at 1.05 so as to not disturb the market..

very professional outfit

the deal may close as soon as tomorrow which will give them 3 million ounces and a fully diluted cash position of over 125 million dollars!!

countdown begins 3 .. 2 … 1…

Quote:

Note: Bid Size and Ask Size fields are displayed in boardlots

–>

Last 10 Trades:

Finally the deal will proceed!.. i was getting worried there was no news for so long.  We are up about 130 dollars on gold since the deal was announced.  The financing will net 200 million less the 150 million to purchase the property we will have 50 million in cash plus about another 10 million form the previous warrant exercise..above 1.30 with the quarter warrant on the financing will raise another 65 million for a total fully diluted cash position of 125 million!!

so all in one deal Gleichen will have 3 million ounces and 125 million in cash (not including broker warrants)

very high level negotiations and very highly skilled management and directors..

IM LOOKING FORWARD TO SEEING WHAT THEY WILL DO NEXT!!

i expect at least a double in ounces in the next year or so and a very profitable feasibility!

with gold flying GRL’s timing couldnt have been better

warmest regards

caliche

GLEICHEN RESOURCES LTD.

GLEICHEN ANNOUNCES FURTHER TERMS OF ITS
SPECIAL WARRANT FINANCING

Vancouver, British Columbia – November 4, 2009, Gleichen Resources Ltd. (TSXV-GRL) (“Gleichen” or the “Corporation”) is pleased to announce further terms of its previously announced US$200 million financing being completed to fund the acquisition of 78.8% of the Morelos Project.

The Offering is being made pursuant to an agency agreement (the “Agency Agreement”) to be entered into among Gleichen and a syndicate of agents co-lead by Macquarie Capital Markets Canada Ltd., BMO Capital Markets and GMP Securities L.P., and including Dundee Securities Corporation, Scotia Capital Inc. and Jones, Gable & Company Limited (collectively, the “Agents”).

Gleichen will raise up to US$200 million in a fully-marketed private placement (the “Offering”) of special warrants of the Corporation at a subscription price of CDN$1.00 per special warrant. Each special warrant will entitle the subscriber to receive, upon exercise, or deemed exercise following the Qualification Date (as defined below), and without payment of any further consideration, one unit (the “Unit”) of the Corporation consisting of one common share in the capital of the Corporation (each, a “Common Share”) and one-quarter (1/4) of one common share purchase warrant (each whole common share purchase warrant, a “Common Share Purchase Warrant”) (subject to adjustment below). Each Common Share Purchase Warrant will entitle its holder to purchase one additional Common Share for CDN$1.30 for a period of 24 months following the closing date of the Offering. The special warrants will be exercisable at any time following closing and shall be deemed automatically exercised, if not already exercised by the holder, on the earlier of: (i) the third business day after the date of receipt of a (final) prospectus to qualify, in each of the Qualifying Jurisdictions (as defined below), the distribution of the Common Shares and Common Share Purchase Warrants  forming the Units to be issued upon exercise or deemed exercise of the special warrants and the  Compensation Options (as defined below) (the “Qualification Date”); and (ii) 4:59 p.m. (Toronto time) on the date which is four months and one day following the closing date of the Offering.

The closing of the Offering is expected to be November 12, 2009, and is subject to the satisfaction of certain conditions, including receipt of all necessary regulatory approvals, including from the TSX-V, and all other required approvals and consents. Unless qualified by a (final) prospectus, the Special Warrants, the Common Shares and Common Share Purchase Warrants comprising the Units and the common shares issuable upon exercise of the Common Share Purchase Warrants will be subject to a four month hold period.

The Corporation has also granted the Agents an option to solicit offers to purchase that number of additional special warrants equivalent to fifteen percent (15%) of the number of special warrants issued in the Offering on the same terms and conditions and at the same subscription price (the “Over-allotment Option”). The Over-allotment Option may be exercised any time within thirty (30) days of the closing date.

On the closing date, the gross proceeds from the Offering, less the Agents’ estimated costs and expenses in respect of the Offering (the “Escrowed Proceeds”) will be deposited in escrow to be released upon satisfaction of: (a) all necessary conditions for the completion of the acquisition of the Morelos Project; (b) no material adverse change in the financial condition, business or operations of Gleichen; and (c) receipt by the escrow agent of a joint notice from the Agents and Gleichen that (a) and (b) above have been satisfied.

The Agents will receive a commission of 5.5% of the gross proceeds raised in the Offering in cash. In addition to cash compensation, the Agents will receive compensation options (the “Compensation Options”) which will entitle the Agents to subscribe for that number of Units as is equal to 1% of the total number of special warrants sold pursuant to the Offering (including pursuant to the exercise of the Over-allotment Option). Each Compensation Option, subject to regulatory approval, will be exercisable to acquire one Unit, having the same terms and conditions as the Units offered, for a period of 24 months from the closing date, at an exercise price equal to 115% of the subscription price of the Offering.

The net proceeds from the Offering are intended to be used for the acquisition of the Morelos Project, feasibility and development programs, and exploration at the Morelos Project and for general working capital purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

* * *

Gleichen is engaged in the acquisition, exploration, and development of mineral properties. The Company’s shares are traded on the TSX Venture Exchange under the symbol “GRL”.

For further information contact Michael Murphy at (604) 687-3100.

ON BEHALF OF THE BOARD OF DIRECTORS OF GLEICHEN RESOURCES LTD.
“Michael Murphy”
Director, President and CEO

For further information please contact:
Mr. Michael Murphy
Director, President and CEO
Gleichen Resources Ltd.

We tripled our position in Treasury today

it snapped back from a close of .315 yesterday to a new yearly high today of .55

very positive signs

Marc just sold aquiline for 626 million

TORONTO, ONTARIO, Oct 29, 2009 (MARKETWIRE via COMTEX News Network) –

Treasury Metals Inc. (“Treasury Metals” or the “Company”)(TSX: TML) at the request of Market Surveillance, on behalf of the Toronto Stock Exchange, wishes to issue a statement that the Company is not aware of any material undisclosed development that would cause today’s upward movement in the Company’s share price. Treasury Metals recently announced and commenced a 4,500 metre drill program on its 100% owned Goliath Gold Project, located about 20 kilometres east of Dryden, Ontario, Canada. Assay results are pending and will be released in a timely manner along with appropriate exploration updates.

About Treasury Metals

Treasury Metals Inc. is a mineral exploration and development company with a growth-orientated strategy to acquire and develop quality gold assets in the Americas. Treasury Metals’ management team is committed to increasing shareholder value through aggressive exploration and development of its Goliath Gold Project and by pursuing strategic opportunities, including potential acquisitions that meet the Company’s corporate goals of expansion and growth toward becoming a future mid-tier gold producer.

The Company’s flagship project is the 100% owned Goliath Gold Project, an advanced-stage, high-grade gold deposit. The Thunder Lake Gold Deposit contains more than 1.0 million estimated ounces of gold, consisting of 130,000 indicated ounces (820,000 tonnes @ 4.8 g/t Au; Main Zone) and 920,000 inferred ounces (7,000,000 tonnes @ 4.1 g/t Au; All Zones), using a cut-off grade of 2.0 g/t Au (see NI 43-101 report – “Report on the Goliath Project, Kenora Mining Division, Northwestern Ontario, Canada” dated December 19, 2008 – filed on SEDAR). Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. Drilling of the TLGD to date has intersected the Main Zone over a strike length of about 1,700 metres, with thicknesses of 0.5 m to 30 metres (average width of 7.6 metres) and a high-grade core with an average width of 1.9 metres.

Treasury Metals also has royalty revenue from Sierra Minerals’ (TSX: SIM) Cerro Colorado Mine in Mexico and other monetizable assets. Treasury Metals has a strong shareholder base and its management team and board are seasoned mining industry veterans with proven track records.

Technical information in this press release has been reviewed and approved by Scott Jobin-Bevans, Treasury Metals’ President and CEO, who is a qualified person under the definitions established by National Instrument 43-101. For additional information on Treasury Metals and its projects, please visit the Company’s website at www.treasurymetals.com.

Forward-looking Statements

Securities regulators encourage companies to disclose forward-looking information to help investors understand a company’s future prospects. This press release contains statements about our future financial condition, results of operations and business. These are “forward-looking” because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.

Contacts: Treasury Metals Inc. Wanda Cutler 416.603.4646 www.treasurymetals.com

SOURCE: Treasury Metals Inc.

http://www.treasurymetals.com

Well done with maps and lots of info relating to valuation

check out NES.h tucked in between two 200 million dollar properties..

http://www.gleichenresourcesltd.com/i/pdf/Presentation.pdf

Many reasons have been given for the rise in Gold and Silver during the month of October but overlooked by the mainstream press is an important point; the beginning of the 2010 United States fiscal year. Spending is expected to balloon to upwards of $3.55 trillion dollars with a budget deficit of $1.75 trillion dollars.

It is clear that the next bubble is not in US Treasuries but in the US Government itself. Under Bush II, government was allowed to expand far in excess of what was necessary. Discretionary spending exploded and deficits were allowed to run rampant. Sprinkle in a massive increase in US Treasury issuance along with artificially low interest rates, a touch of monetary supply growth while interest rates were being increased, the collapse of the US real estate market severely weakening the US banking system, and you sow the seeds for the massive increase in government spending we have today.

Three points are certain at this moment in time.

The first is that the United States, with the amount of debt outstanding and coming down the pipeline, is not able to undertake a policy of raising interest rates from these low levels to normalized levels for a number of years.

The second point is that Asian economies, starting with Australia, are going to lead the rate cycle as their economies and banking sectors have weathered the storm in better shape than the US and Europe. Expect to see conventional and unconventional (by Western standards) monetary tightening during this cycle.

The increased focus on Asia will provide investors with very interesting opportunities in a number of sectors.

The third and final point is that Gold and Silver will only go higher from here over the next 6 month period with a spike in price during the March-May time frame after which we trade sideways for at least a year in order to digest the run higher and the increase in gold supply coming on market from new mines coming into production.

The peak in Gold should coincide with a peak in Silver as well along with a test of the USD lows made last year.

In terms of supply, we should remember that Penasquito, Goldcorp’s massive mine in Mexico, is scheduled to come into commercial production in January of 2010. This supply of gold, silver, and zinc should be enough to keep each market in a sideways range for some time until the supply is properly digested.

Investors who do their homework should find themselves well rewarded by the end of the first quarter next year.

Disclaimer
Communications are intended solely for informational purposes. Statements made should not be construed as an endorsement, either expressed or implied. This article and the author is not responsible for typographic errors or other inaccuracies in the content. This article may not be reproduced without credit or permission from the author. We believe the information contained herein to be accurate and reliable. However, errors may occasionally occur. Therefore, all information and materials are provided “AS IS” without any warranty of any kind. Past results are not indicative of future results.
PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING IN THE STOCK, BOND, AND DERIVATIVE MARKETS. WHEN CONSIDERING ANY TYPE OF INVESTMENT, INCLUDING HEDGE FUNDS, YOU SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS: OFTEN ENGAGE IN LEVERAGING AND OTHER SPECULATIVE INVESTMENT PRACTICES THAT MAY INCREASE THE RISK OF INVESTMENT LOSS, CAN BE ILLIQUID, ARE NOT REQUIRED TO PROVIDE PERIODIC PRICING OR VALUATION INFORMATION TO INVESTORS, MAY INVOLVE COMPLEX TAX STRUCTURES AND DELAYS IN DISTRIBUTING IMPORTANT TAX INFORMATION, ARE NOT SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.
Before making any type of investment, one should consult with an investment professional to consider whether the investment is appropriate for the individuals risk profile. This is not intended to be investment advice or a solicitation to purchase any of the securities listed here. I will not be held liable or responsible for any losses or damages, monetary or otherwise that result from the content of this article.

WOW .. these guys are getting sh!t done!!.. get a massive gold deal from teck, raise 200 million dollars and stack the board with some really amazing talent..i have never seen a better operation ..

WELL DONE !!!!

Gleichen warrant offering to raise $200-million (U.S.)
Ticker Symbol: C:GRL

Gleichen warrant offering to raise $200-million (U.S.)

Gleichen Resources Ltd (C:GRL)
Shares Issued 28,763,380
Last Close 10/14/2009 $1.39
Wednesday October 14 2009 – News Release

Mr. Michael Murphy reports

GLEICHEN ANNOUNCES US$200 MILLION FINANCING TO FUND ACQUISITION OF 78.8% OF MORELOS PROJECT

Gleichen Resources Ltd. has entered into an agreement to raise approximately $200-million (U.S.) in a fully marketed private placement of special warrants to finance its previously announced acquisition of 78.8 per cent of the Morelos project from Teck Resources Limited through the acquisition of Oroteck Mexico S.A. de C.V. from Teck subsidiaries Teck Metals Ltd. and Teck Exploration Ltd. for the purchase price of $150-million (U.S.) and a 4.9-per-cent stake in Gleichen. Oroteck owns 78.7966 per cent Series A shares in the capital of Minera Media Luna S.A. de C.V., the holder of the Morelos concessions. Gleichen has entered into an amending agreement dated Oct. 7, 2009, in connection with its acquisition of the Morelos project from Teck to extend the proposed closing date for the acquisition. A copy of the acquisition agreement and amending agreement are available on SEDAR.

Macquarie Capital Markets Canada Ltd. will act as bookrunner and lead agent and BMO Capital Markets and GMP Securities L.P. will act as co-lead agents in a syndicate of agents including Dundee Securities Corporation, Scotia Capital Inc. and Jones Gable & Company Limited in connection with the proposed offering. The terms and price of the special warrants will be determined in the context of the market and fixed on the day of execution of a definitive agency agreement.

The net proceeds from the offering are intended to be used for the acquisition of the Morelos Project, feasibility and development programs, and exploration at the Morelos Project, and for general working capital purposes.

Closing of the offering is anticipated to occur in the fourth quarter immediately prior to the acquisition of the Morelos Project. The closing of the offering is subject to entering into a definitive agency agreement and the satisfaction of certain conditions, including receipt of all necessary regulatory approvals, including from the TSX-V, and all other required approvals and consents. The Agents will receive a commission of 5.5 per cent of the gross proceeds raised in the offering in cash. The Agents will also receive compensation options equal to 1.0 per cent of that number of special warrants issued in connection with the offering.

Gleichen is pleased to announce that Fred Stanford has agreed to join the Company as director and incoming President & CEO upon the closing of the offering. Mr. Stanford is a highly qualified mining executive with nearly 30 years experience in the mining business. Mr. Stanford worked at Vale Inco (formerly Inco Limited) from 1981 to June 2009 holding senior management and executive positions including vice president of Business Services, Milling, Smelting and Refining and culminating as President of Vale Inco’s Ontario operations. Michael Murphy, Gleichen’s current President & CEO, will remain with Gleichen as a director.

Also at the time of the closing of the offering, Terry MacGibbon, Frank Davis, and Andrew Adams will be appointed to the Gleichen board of directors. Gleichen has called a special meeting of shareholders for November 26, 2009 to, in part, elect some of the new directors.

Terry MacGibbon is a registered professional geologist with over 35 years of international experience in the mining business. Mr. MacGibbon is the founder, Chairman and the CEO of FNX Mining Company Inc., a TSX-listed Canadian mining company that has emerged over the past five years from a junior exploration company into a mid-tier diversified Canadian mining company that produces nickel, copper, cobalt, platinum, palladium and gold from its mineral properties located in the Sudbury, ON, Canada mining camp. Mr. MacGibbon is a certified director, Institute of Corporate Directors, and has held directorships and senior executive positions in several TSX and TSX Venture public mining companies. Frank Davis is a partner of the law firm Fraser Milner Casgrain LLP, practicing principally in the areas of securities and capital markets, corporate finance, mergers and acquisitions and mining. He represents various public companies and investment banking firms in public and private offerings of equity and debt securities. He has acted as counsel to offerors, target companies and financial advisors in both hostile and negotiated merger and acquisition transactions and has been active in a variety of take-over bids, mergers, acquisitions, amalgamations, arrangements and divestitures. Mr. Davis holds a B.Comm., LLB and M.B.A., all from the University of Toronto, and is a director of several TSX and TSX.V companies. Andrew Adams obtained his Bachelor of Science Degree from Southampton University and qualified as a Chartered Accountant in the United Kingdom in 1981. He worked for the Anglo American group of companies for 12 years up to 1999, his final position being Vice President and Chief Financial officer of AngloGold North America based in Denver, Colorado. Mr. Adams worked for Aber Diamond Corporation as Vice President and Chief Financial officer from 1999 to 2003. Currently he serves as an independent non-executive director of Uranium One Inc.

MDL in Toronto is still being accumulated with some larger trades and GMP buying over a million shares. Haywood also in for over 100K

some interesting crosses on OLE as well .. Research crossing 380k and 300K all at .90

this game is getting interesting.. some heavy hitters getting warmed up to slug it out in senegal!!

hold on to your shares this is going to be great!!