Omai expansion planned

Drilling conducted at the Omai gold mine in Guyana has led to a 40% increase in proven and probable reserves, compared with the estimates contained in the original (December, 1990) feasibility study.

The 65%-owner of Omai Gold Mines, Cambior (TSE), announced that reserves now stand at 56.8 million tonnes averaging 1.39 grams gold per tonne. The feasibility study outlined 40.6 million tonnes averaging 1.63 grams. The rise is largely due to increases in reserves at the Wenot pits, as well as better-than-expected production results from the Fennell pit. Definition drilling at Wenot almost doubled reserves to 11.6 million tonnes averaging 1.29 grams. Exploration drilling is planned for the eastern half of the deposit, and for an area underlain by a 1.2-km-long geochemical anomaly further to the east — all of which could further augment reserves. Results of production at the Fennell pit reveal a systematic tendency to underestimate ore tonnage in the mining reserves. It is believed that a revised model for determining reserves, currently in the planning stage, could result in a 20% increase in hard rock reserves within the Fennell pit. The higher reserves have prompted Omai Gold Mines to increase its mill capacity. The capital cost involved in expanding daily capacity to 18,000 from 12,000 tonnes is estimated to be US$58 million, and construction should start once the plan is approved by Omai’s board of directors. The mill expansion will require an increase in the power plant capacity, as well as the construction of additional facilities and the purchase of more mining equipment.

The project is expected to take 15 months to complete and should be operational by the first quarter of 1996.

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