Oct 12, 2020 News
– looks at US$1B investments; 1,000 jobs
Kaieteur News – Omai Gold Mines Corp. (TSX Venture: OMG) has announced that it will soon begin trading on the Toronto Stock Exchange.
Once the site of the country’s biggest gold mining operations, the concessions were reverted back to the state before investors came knocking again.
It is estimated that there are more than 15M more ounces of gold remaining in the concessions.
Any operations will lend to the already established, Chinese-owned Aurora Gold Mines and Troy Resources, two large-scale operators.
Omai announced that it has completed its previously announced reverse takeover transaction in which Omai acquired all of the issued and outstanding common shares of Avalon Investment Holdings Inc. (“AIHL”), a private Barbados corporation, founded by Kris Sammy of Guyana and Michael Smith of Naples, Florida, USA.
AIHL is the parent company of Avalon Gold Exploration Inc, a Guyanese company which is engaged in the acquisition, exploration and potential development of precious metal minerals properties in Guyana, including the former Omai Gold Mines located in the Omai/Potaro Mining District No.2.
Prior to closing of the transaction, AHIL raised international financing of approximately US$12.5M and its shareholders will control 189,869,799 Omai Shares or 94% of Omai Gold Mines Corp.
“Omai Gold Mines Corp. shares will begin trading on the Toronto Stock Exchange under the symbol “OMG”,” a statement of the company said recently.
The directors, officers and consultants of Omai Gold Mines Corp are Denis Clement; Executive Director and Founder, Mario Stifano; CEO and Director Harvey McKenzie; and Secretary
Jason Brewster; VP of Operations Dr. Dennis LaPoint; VP of Exploration, Nadine Miller; Director Adam Spenser; Director -Major-General (Ret’d) Norman McLean; Director -Paul Fornazzari; Director -Dr. Linda Heesterman, and Exploration Consultant, Dr. Michael Gustin.
Omai Gold Mines was the first large gold mine in the Guianas.
The mine employed hundreds of Guyanese.
Cambior was able to operate even with the low gold price and their financial troubles. However, they did not have the cash to support the exploration and drilling required to continue operations.
Now Omai Gold Mines is using that historic mine information as well as advances in the understanding of gold deposits in the last 30 years to undertake the exploration required to develop new resources for mining.
“We are using and training a Guyanese team to work with the top technical team on the Guiana Shield. Our VP Of Exploration, Dr. Dennis LaPoint lead the Suriname team that discovered the Merian Mine of Newmont. Dr. Linda Heesterman was at the GGMC and is well known in Guyana for her insight and knowledge of the geology of Guyana. Dr. Michael Gustin was the last exploration Manager at Omai.”
The company said that it is conducting exploration to reassess and interpret the historic drilling at Omai.
“Thanks to the help of GGMC, we have recovered and are geologically logging and sampling diamond core holes that were not analyzed before. New field work combined with a new interpreted airborne magnetic and radiometric survey will define new areas for drilling into undiscovered deposits.”
Initially, the team will consist of 30 or more Guyanese, both technical, field and support. They will be involved in all phases of exploration including drilling.
“Local supplies and people resources are also being used. The people resources should expand to 70 to 100 people over the first two years. Expenditures for drilling, assays, people, environmental and engineering studies will be in the tens of millions of dollars, depending on the results and gold markets. Very important is the training of new Guyanese geologists working and communicating closely with the GGMC. Internationally, Guyana will be promoted as a good place to do business.”
When development starts, there will be a large increase in construction workers and a large new camp.
“It is expected to be in the range of 1000 or more Guyanese will be employed. The mine costs, if like the Merian Mine can be in the range of US$1B dollars. The timing is dependent on positive results, the potential size, working closely with Guyana on permitting, and gold prices and demand. If all is successful, a new mine operation will employ at least 1,000 Guyanese and can generate a return to the country with royalty, jobs, contractors, and new local development of 60 percent or more of the gold produced.”
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