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Omai’s to produce 2 million ounces within 13 years from one mining pit only
Kaieteur News – Canadian gold company, Omai Gold Mines Corporation has announced a significant milestone with its Wenot Project, located in Region Seven (Cuyuni-Mazaruni) Guyana reaching a staggering valuation of US$556 million.
Earlier this year, Omai unveiled an enhanced Mineral Resource Estimate (MRE) for its gold project located in Guyana. Omai holds a 100% interest in the gold project, which encompasses two gold deposits: the shear-hosted Wenot Deposit and the adjacent intrusive-hosted Gilt Creek Deposit.
The results from its first Preliminary Economic Assessment (PEA) for the Wenot Project revealed that the project is slated to yield over 142,000 ounces of gold annually over a 13-year mine life. At its peak, production is anticipated to soar to 184,000 ounces in a single year, with a total estimated production of 1,840,000 ounces of payable gold.
Elaine Ellingham, President and Chief Executive Officer (CEO) of Omai Gold Mines
Key highlights from the PEA include an after-tax Net Present Value5% (NPV5%) of US$556 million and an after-tax Internal Rate of Return (IRR) of 19.8% based on a gold price of US$1,950/oz.
Elaine Ellingham, President and Chief Executive Officer (CEO) of Omai said, “We are extremely pleased with this first economic this time. This PEA is an important step forward as it converts our successful exploration programs assessment for the new Omai that incorporates only our Wenot open pit deposit at into a baseline production scenario that shows potential for robust economic development for Omai to once again become a large-scale gold producer, supported by the many benefits of a brownfields project including good road access, a nearby skilled workforce and the strong support of government for re-development.”
Notably, it was stated that while the adjacent Gilt Creek Deposit was not factored into the current economic evaluation, Omai remains confident in its future contribution to the overall mine plan. In fact, the CEO said, “Gilt Creek would be an underground mine, it would have required significant additional engineering, time and cost, and our priority was to establish a baseline valuation for our shareholders. We have fast-tracked the advancement of this project over the past two years and are pleased to deliver these tangible results.”
Looking ahead, Omai sees immense potential for expansion and enhanced economics. Identified gold zones along strike and at depth within the Wenot deposit are expected to bolster mineral resources, while incorporating the adjacent Gilt Creek Deposit could extend the mine life to over 20 years. Additionally, plans to exploit high-grade near-surface zones promise to elevate processing plant feed quality and boost economic returns.
The PEA marks a pivotal step for Omai as it progresses towards a Preliminary Feasibility Study (PFS), signaling a steadfast commitment to advancing the Omai Project in 2024 and beyond.
On February 8, 2024, the Company announced an updated MRE for the Omai Property. The combined estimates from the Wenot and Gilt Creek deposits stands at 2.0 million ounces of gold grading at 2.15 g/t gold in the indicated category and 2.3 million ounces of gold grading at 2.26 g/t in the inferred category. This represents a notable increase compared to the previous resource estimate conducted in October 2022, with indicated ounces seeing a 4% uptick and inferred ounces experiencing a substantial 28% surge.
In 2020, Omai re-entered Guyana’s mining industry. The company had said that their work completed thus far, has put them on track to become the next large-scale gold mine to open in Guyana. Notably, by 2026, Omai and three other Canadian mining companies are expected to start gold production in their respective mining projects in Guyana. This was revealed by Senior Minister within the Office of the President with responsibility for Finance, Dr. Ashni Singh during his 2024 budget estimates presentation.
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