Omai Gold fast-tracks Guyana drilling to speed resource update

Omai Gold Mines (TSXV: OMG; US-OTC: OMGGF) has added a third drill rig at its namesake Guyana project as it aims to update the resource and the project’s preliminary economic assessment (PEA) by mid-2025.

The company’s latest batch of assays from its 10,000-metre drilling campaign included 10.9 grams of gold per tonne over 7.5 metres from 366 metres deep in hole 24ODD-083 east of the Wenot deposit. Hole 23O-082 to the west cut 3.19 grams gold over 22.8 metres from 304 metres deep.

These results confirm the continuity of mineralization, the company said. In all, Omai Gold released results from 8,460 metres of diamond drilling to date for 17 holes. The project centres on the Wenot deposit and satellite targets at East Wenot and West Wenot, and Snake Pond. The nearby Gilt Creek deposit to the northeast offers future underground potential.

Drilling targeted both deeper sections and gaps in the open pit mining scenario tabled in an April PEA. The results indicate potential to expand the resource and improve project returns, CEO Elaine Ellingham said in a news release.

Omai plans to update the resource update by March, with the PEA to follow by June.

At the West Wenot area, hole 24ODD-086 returned 2.96 grams of gold over 19.4 metres from a depth of 293.2 metres. It extended known mineralization 100 metres below prior high-grade zones.

Shares gained as much as 8% to 19.5¢ in early trading Thursday, before falling back to Wednesday’s closing price of 18¢. Coming off a 12-month low at 3.5¢, shares are trading near the period high of 20.5¢. It has a market capitalization of $97 million.

Economic update

Work is also underway at the Gilt Creek deposit. The PEA excluded Gilt Creek at the start to facilitate early development. Management now sees integrating it as key to extending the site’s life beyond 20 years.

Gilt Creek has an indicated resource of 11.1 million tonnes at 3.2 grams gold per tonne for 1.2 million oz. of the precious metal. It has another 32.4 million tonnes of inferred material at 2.26 grams gold per tonne for 665,000 oz. that holds potential to further boost long-term output given more drilling.

The drilling campaign aims to convert untested areas into mineralized material.

The April PEA estimated Wenot’s after-tax net present value at US$556 million (5% discount) and projected annual gold production of 142,000 oz. over 13 years.

Omai forecasts annual after-tax free cash flow of US$112 million, translating to about US$1 billion in cash flow across the mine’s lifespan. All-in sustaining costs were projected at US$1,009 per ounce. According to the PEA, the mine’s construction cost of US$375 million can be recouped in less than four years.