Omai starts new drilling phase

Aug 05, 2024 News

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…eyes expanded mine plan

Kaieteur News – Canada-based company, Omai Gold Mines has announced the commencement of a new drilling phase at its fully owned gold project located in Region Seven (Cuyuni-Mazaruni) Guyana.  This development was announced on July 31.

The announcement follows a Preliminary Economic Assessment (PEA) released on April 4, and a successful $13M brokered private placement that closed in June. The company said it is well positioned to further advance the project.

Omai’s gold project encompasses two gold deposits: the shear-hosted Wenot Deposit and the adjacent intrusive-hosted Gilt Creek Deposit.

Back in May, it was announced that the Guyana Geology & Mines Commission (GGMC) has granted a new Prospecting Licence providing the exclusive right of occupation and exploration for gold, base metals, precious metals and precious stones to Omai. The licence has an initial three-year term until April 29, 2027 that can be extended to 2029. This licence gives Omai the exclusive rights to apply for a Mining Licence and the company has commenced meetings with government officials that have provided guidance on the process.

In a recent statement, the company’s Chief Executive Officer (CEO) Elaine Ellingham, said, “With the completion of our recent financing, Omai has $13 million in the treasury and we are well positioned for our 2024 and 2025 exploration and development programs.  Drilling commenced July 2nd, twelve days after the financing closed, with an initial 10,000 m drilling program underway.”

Ellingham explained that the company’s recent PEA for production of 1.83 million ounces of gold from an open pit mine, giving a Net Present Value (NPV5% discount) of US$566 million, is a great milestone for the company.

She added, “However, we believe that the Omai property, even with the current Mineral Resource Estimate could support a much larger mine plan with a longer mine life and more robust economics.  Our priorities for 2024-2025 are clear — to work towards: i) Expanding the overall property Mine Plan, ii) Enhancing the economics beyond this baseline PEA, and iii) Advancing permitting, engineering and baseline studies.  Steps are underway to move forward on each of these objectives.”

Omai stated that the recent PEA is based on open-pit production of 1.83 million ounces from only the Wenot deposit, one of the two orogenic gold deposits located on the Omai Property.  This publication had reported that the results from its first 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.

The company explained that the PEA incorporates only 45% of the current Omai Property Mineral Resource Estimate (MRE), and 78% of the Wenot MRE.  Wenot alone already hosts an additional Inferred MRE of over 400,000 ounces, the company said.

“Much of this is located west of the past producing pit and, with additional drilling, offers near surface potential for future inclusion in the Mine Plan.  Some of the non-included MRE is at depth and additional drilling could support a deeper economic pit or potentially later underground mining…  Management believes that with the 2024-2025 planned drilling, at least some of the additional Wenot MRE could be integrated into a future expanded Mine Plan, and the Wenot deposit could expand within, along strike and below,” it was stated.

Omai said the Wenot PEA “superpit” is very large, already extending along a 2.4 km strike length. The company also disclosed that drilling to date, as well as historical mining records, indicate that the Wenot shear-hosted gold mineralized zones are quite continuous.

Notably, certain areas within the PEA pit have wide-spaced drilling and Omai management believes that with additional drilling of these gaps the Wenot resource could expand. Importantly, the company also believes that some of the waste within the current PEA pit could prove to be mineralized material, potentially having the effect of decreasing the strip ratio and increasing the NPV of a future economic model.

As such, focused drilling of selected gaps along the Wenot deposit is considered a high priority, together with drilling along the under-explored East Wenot extension area.

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.

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• Canada-based company, Guyana Geology & Mines Commission, Omai Gold Mines, Prospecting Licence, superpit

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