Omai Gold Mines’ (TSXV: OMG; US-OTC: OMGGF) updated resource for its namesake project in central Guyana ranks it as the country’s second-largest undeveloped yellow metal project by contained ounces. Shares rose.
The update for the past-producing project, which consists of the Wenot and Gilt Creek deposits, raises contained gold in the indicated category by 7% to 2.12 million oz. grading 2.07 grams gold per tonne in 31.9 million tonnes, Omai reported Tuesday. Contained gold in the inferred category rises 92% to 4.38 million oz. at 1.95 grams gold inside 69.6 million tonnes.
For the main Wenot deposit, the contained indicated portion rose 16% to 970,000 oz. in 20.7 million tonnes over the previous update from last year, while the inferred portion more than doubled to 3.71 million oz. in 63.4 million tonnes.
‘High-margin production’
“We maintain our view that Wenot contains high quality resources and consistent mineralization that will support high-margin production at the Omai project,” Haywood Capital Markets analyst Jamie Spratt said in a note on Tuesday. “There are clear opportunities for continued resource growth both to the east and the west along strike and depth below maximum [approximate] 450 metres depth of the resource envelope, from satellite targets and deep drilling at Wenot.”
Omai shares gained 1.1% to 90¢ apiece at mid-Tuesday in Toronto, for a market capitalization of $551.2 million. The stock has traded in a 12-month range of 13¢ to 94¢.
The update further supports the potential for large-scale mine re-development at the project, Omai President and CEO Elaine Ellingham said in a release.
“We will continue to aggressively drill to increase these mineral resources and to upgrade the inferred mineral resource estimate in order to advance the project towards a feasibility study later in 2026,” she said.
Second behind Aris
The total contained resource of about 6.5 million oz. puts Omai just behind Aris Mining’s (TSX: ARIS; NYSE-AM: ARMN) Toroparu project, which hosts 6.54 million oz. contained in 115 million measured and indicated tonnes grading 1.13 grams gold and 21.2 million inferred tonnes at 0.98 gram gold.
In the third spot is G Mining Ventures’ (TSX: GMIN; US-OTC: GMINF) Oko West project, which hosts 64.6 million indicated tonnes at 2.05 grams gold for 4.3 million oz. and 19.2 million inferred tonnes grading 2.59 grams gold for 1.6 million ounces.
The update is based on 23,597 metres of diamond drilling across 639 holes, Omai said. Further drilling is to start soon to define the limits of the Wenot deposit as it remains open in all directions, and to upgrade inferred resources to indicated.
13-year life
A preliminary economic assessment for Omai, released last year, outlined an open pit operation for Wenot producing 1.84 million oz. of gold over a 13-year mine life. It estimated an after-tax net present value (at a 5% discount) of $556 million and an internal rate of return of 20% at a $1,950 per oz. gold price. Work on an updated study, incorporating the expanded Wenot resource and Gilt Creek, is expected to be completed this year.
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