Omai Gold Mines (TSXV: OMG) has announced an initial resource estimate of over 1.6 million oz. of gold at its Wenot gold deposit, part of the Omai project in Guyana, about 200 km from Zijin Mining’s Aurora gold mine.
Wenot contains indicated resources of 16.697 million tonnes grading 1.31 grams gold per tonne for contained metal of 703,300 oz. of gold. Inferred resources add 19.482 million tonnes grading 1.50 grams gold per tonne for contained metal of 940,000 oz. of gold.
The resource estimate incorporated more than 10,500 assay results from 549 drill holes totalling 21,541 metres. The company’s drills in 2021 focused on testing the Wenot shear corridor at depth below a past producing open pit mine, which produced 1.4 million oz. gold.
Together with the Fennell pit, located about 400 meters away, the two pits produced over 3.7 million oz. of gold between 1993 and 2005, but the Omai gold mine had to be shut down as the price of gold went below US$400 per oz. towards the end of that period, said Omai.
“This is a very significant milestone for Omai Gold,” Elaine Elingham, the company’s CEO, said in a press release. “This initial Wenot mineral resource attests to the potential to expand the known deposits and … demonstrates the potential to re-build Omai into a multi-million ounce project.”
“A mineral resource of over 1.6 million ounces of gold at Wenot gives us a very solid base from which to expand the property’s total potential gold resources,” said Elingham.
Ryan Hanley, a mining analyst who covers Omai Gold at Laurentian Bank Securities Equity Research, said the resource estimate was “well ahead” of the one million oz. of gold that Laurentian had estimated.
He further noted that an additional 5.5 million tonnes grading 1.27 grams gold per tonne, located 75 meters below the optimized pit was excluded from the initial resource estimate.
” Given this, we believe that further exploration/optimization work could result in a larger overall ounce count, and potentially a higher overall resource grade,” he said in a research note.
At presstime in Toronto, Omai was trading at 11¢ per share within a 52-week trading range of 8.5¢ and 25¢.
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