Omai Gold Mines boosts indicated resource by 2 million oz ahead of PEA

Omai Gold Mines (TSXV: OMG; US-OTC: OMGGF) has posted a resource update for its flagship property in Guyana that pushes contained ounces higher than total gold produced from the former mine.

Together, the Wenot and Gilt Creek deposits host a total of 28.7 million indicated tonnes grading 2.15 grams gold per tonne for 2 million oz. Another 31.3 million tonnes grading 2.26 grams gold total 2.3 million contained oz. in the inferred category.

Indicated ounces grew by 4% compared to the last estimate in October 2022, while inferred ounces grew by 28%.

The Omai mine produced about 3.8 million oz. at an average gold grade of 1.5 grams gold per tonne between 1993 and 2005, when the gold price was less than US$400 per oz., Omai Gold Mines CEO Elaine Ellingham said in a release. She also noted an increase gold grades compared to the previous resource estimate.

Indicated resources at Wenot increased by 10% to 834,000 oz. while its inferred resource grew 45% to 1.6 million oz., owing to increased gold grades in both categories. Following the 2023 drilling, about 39% of the Wenot resource is now west of the historical pit, an area considered well suited to initial mining, Omai said.

Meanwhile the Gilt Creek deposit has 1.2 million oz. of gold in the indicated category and 665,000 oz. of gold inferred. The deposit is located 500 metres north of Wenot and below the past-producing Fennel pit.

The 2024 resource, according to the Canadian gold junior, will form the basis of the project’s preliminary economic assessment, which is currently underway and expected to be released in the first quarter.

Certain baseline studies have also been completed, and the company said it will continue steps towards an application for an environmental permit and a mining licence once the PEA and additional requisite work is completed.

Shares in Omai Gold Mines gained 7.1% to 7.5¢ late in Thursday afternoon following the resource update. The stock traded between 3.5¢ and 8¢ over the past 52 weeks. The company’s market capitalization is $28.3 million.