Omai to start production as early as next year

Apr 26, 2021 News

Kaieteur News – Despite only recently returning to Guyana, Omai Gold Mines Limited (OMGL) can see itself kick starting production at its Wenot Pit operations in Region Seven (Cuyuni-Mazaruni) as early as next year. This was revealed by the Minister of Natural Resources, Vickram Bharrat who spoke with Kaieteur News over the weekend. However, he stated that it is highly dependent on how things go with the company.

Minister of Natural Resources, Vickram Bharrat

As previously reported by this publication, the company had operated from 1992 up until 2005, when it closed up shop. When it departed, its holdings passed from the Canadian company, Cambior Resources, to its parent company, IAMGOLD, and then made its way into the hands of Mahdia Gold Corporation. However, a new company, Avalon Private Investment Holdings, whose Guyanese subsidiary is Avalon Gold Exploration has been named as the contractor for the operations in Region Seven, and Omai has also boasted of its good prospects, which includes high-grade gold finds since returning.
Just last week the company announced that there is high mineralization continuing below the Wenot pit, at least 100 metres down. It also announced a high-grade gold find at two holes, “21ODD-001” and “21ODD-002”.
Before that announcement, on December 16, 2020, the company had announced a massive high-grade gold discovery originating from unassayed core from a 2012 drilling programme. A hole, ’12WED11′ that was drilled indicated highest assay values of 29.19 g/t Au and another hole ’12WED13′ 4.5 meters of 2.93 g/t Au were found.
According to Minister Bharrat, even though there is a possibility that production can start as early as next year, it will be until year-end.
Nevertheless, as the company gears up to once again capitalize on its Wenot Pit operations, the question regarding what benefits Guyana will reap remains unanswered, since the contract it signed with the government upon returning is yet to be revealed. With that in mind, it must be noted that over its years’ operating in Guyana, Omai has managed to cart off around 3.7 million ounces of gold with Guyana only raking in a mere five percent in royalties.
Also, the company benefitted from lucrative tax, fuel and vehicular concessions worth millions of Guyanese dollars.