Omai eyes expansion potential at Guyana gold project
Omai Gold Mines Corp. [OMG-TSXV, OMGGF-OTCQB] has released assay results from 11 additional diamond drill holes from an ongoing 50,000-metre drill program at its Omai Gold Project in Guyana, South America.
The announcement comes after the company recently reported positive results from a preliminary economic assessment (PEA) at the Omai property. The PEA mine plan incorporates both the Wenot open pit deposit and the adjacent Gilt underground deposit. These support production averaging 351,488 ounces of gold annually over an 18-year mine life, with peak year production of 435,667 ounces. Total combined production from the two deposits is estimated at 6.32 million ounces of payable gold, reinforcing the potential for Omai to become a very large-scale operation with a clear path to bringing significant economic benefits to the people of Guyana. The PEA envisages an initial capital requirement of $1.43 billion, and growth capital of $928 million over the life of the mine.
In its latest press release, Omai said each drill hole on the Wenot Deposit encountered multiple gold zones. Hole 260DD-193 in central Wenot intersected 11 discrete gold zones, including 5.12 g/t gold over 40.5 metres, including 11.29 g/t gold over 10.4 metres at a vertical depth of between 260 to 290 metres within the prolific Dike Corridor.
Given that an economic cut-off grade of 0.3 g/t gold was applied to the Wenot open pit deposit, these intersections are very significant, the company said in its press release. To date, this year, 74 holes have been completed, totaling 35,149 metres. Hole 260DD-208, testing the depth potential of the Gilt deposit, was completed at a downhole depth of 1,438 metres (1,200 vertical depth). Samples from the upper part of the hole have been submitted for assaying. Certain selected whole core samples are being prepared for mineral processing testing.
“Today’s drill results continue to demonstrate the potential for the Wenot open pit deposit to continue to expand while we upgrade the resources and better delineate the very wide robust zones, particularly in the dike corridor,” the company said. “The results from this program will contribute to our next resource update, planned for completion before year end, and support our objective of advancing the project towards a feasibility study.’’
On Tuesday, Oma Gold shares eased down 2.8% or $0.075 to $2.58. The shares trade in a 52-week range of $3.16 and 91 cents.
Omai Gold holds a 100% interest in the Omai prospecting license, which includes the past-producing Omai gold mine in Guyana, and a 100% interest in the adjoining Eastern Flats mining permits.
When it was developed as a large scale mine in 1992 by Canadian company Cambior, Omai ranked as the largest gold mine in the Guiana Shield. From 1992 to 2005, it produced 3.7 million ounces of gold at an average grade of 1.5 g/t gold from two open pits. The mine was producing an average of 300,000 ounces of gold annually.
Mining ceased at a time when the average gold price was less than US$400 an ounce.