Omai Gold Mines Corp. [OMG-TSXV] closed the acquisition of the Eastern Flats property, a 1,519-acre property consisting of prospecting and mining rights, located immediately east and contiguous to Omai’s 4,590-acre prospecting licence, which includes the past-producing Omai mine in Guyana, South America. The acquisition of a 100% interest in the Eastern Flats prospecting and mining rights is completed upon payment of a residual US$1, with no royalty or further obligations.
The company entered into an exclusivity agreement dated July 13, 2020, and a subsequent prospecting and licence management agreement April 16, 2021 between Omai Gold Mines and a non-arm’s length party, Guyana Sunrise Mining Inc. (together, the agreements). Pursuant to the terms of these agreements, the company in July 2020, issued 6,000,000 common shares to the vendor at the time of signing of the Exclusivity Agreement, and will pay USD$1 in cash to the vendor. The transaction was subject to TSX Venture Exchange approval, which has been granted.
The Eastern Flats property is strategically located along strike of the Wenot shear corridor that extends 1.7 km along the axis of the past producing Wenot pit. The Wenot pit produced over 1.4 million ounces of gold at an average grade of 1.5 g/t before ceasing operations in 20031.
Recent airborne geophysics over the Eastern Flats licences, consisting of magnetics and radiometrics, highlighted several prospective targets bearing geophysical signatures which are similar in nature to those associated with gold deposits on the adjoining Omai property. Additionally, many of these geophysical targets are co-incident with anomalous gold values in auger soil samples that were collected at (shallow) depths of <1 metre, along thirteen N-S lines spaced 400 metres apart. While these results reveal several impressive and sometimes broad gold-in-soil geochemical anomalies no further work was carried out on the Eastern Flats.
Omai’s chief geologist, John Spurney stated. “The broad gold-in-soil geochemical anomalies at Eastern Flats, impressive as they are, saw little follow up investigations during the 1990’s mine era, even though at greater than 100 ppb gold and in some instances up to 500 ppb. Some of these areas appear large enough to conceal another deposit the size of Fennell or Wenot. Our technical team is currently compiling data and developing a plan to evaluate Eastern Flats as part of our 2022 exploration program.”
Omai Gold Mines, through its wholly owned subsidiary Avalon Gold Exploration Inc., holds a 100% interest in the Omai Prospecting License that includes the past producing Omai gold mine. Once South America’s largest producing gold mine, Omai produced over 3.7 million ounces of gold between 1993 and 2005. Mining ceased at a time when the average gold price was less than US$350 per ounce, leaving significant drilled resources untapped.