Latest update October 6th, 2024 12:59 AM
Jul 18, 2023 News
Kaieteur News – Three weeks after Omai Gold Mines announced drilling results showing significant gold deposits in their Wenot pit, located in Region Seven (Cuyuni-Mazaruni)–the Canadian company yesterday announced “similar excellent drill results.”
Omai is one of the few large-scale foreign mining companies working in Guyana. Omai holds a 100% interest in the Omai gold project in Guyana, which produced over 3.7 million ounces of gold between 1993 and 2005. The property hosts two gold deposits: the shear-hosted Wenot Deposit and the adjacent intrusive-hosted Gilt Creek Deposit.
On June 22, the company in a press release disclosed that within the first six months of 2023, it has drilled 11 holes which showed significant gold in their Wenot pit.
Yesterday in their statement, Omai Chief Executive Officer (CEO) and President, Elaine Ellingham, said: “similar to our excellent drill results from a couple of weeks ago, these new results again confirm the significant expansion potential for the Wenot deposit, to depth as well as along the flanks.”
According to Omai’s statement, assays have been received for five additional holes, including four exploration holes and one hole at Wenot which is exploring the down dip extension of the central part of the known deposit as well as additional shallower, northern flanking gold zones.
The company had disclosed that since their return to Guyana’s gold industry, they have been expanding their search in their pits as well as increasing the depth at which they search for gold. Ellingham had noted that the results so far have proven to be fruitful.
It was stated that to date in 2023, eleven holes have been completed totalling 3,570 metres as drilling continues. It was highlighted that hole 23ODD-064 confirms the continuity of the Wenot gold bearing structures to at least 100m below the current resource model in this central part of the deposit with an impressive intersection; it was said that this intercept reinforces growing evidence that the gold grades at Wenot increase with depth.
Following the previous announcement, Ellingham had noted that the impressive drill results continue to confirm the magnitude of the Wenot deposits, by demonstrating continuity of significant gold mineralization. She added, “We have not seen any limitations to the Wenot deposit, and as such are confident that additional drilling can further expand the gold resources.”
Ellingham said that, “In the first half of the year, we pursued some of the nearby exploration targets and we remain confident that there are additional gold deposits on this well-endowed Omai gold property.”
Kaieteur News had reported in January 2022 that the company had struck the jackpot only in its Wenot Gold deposit. It had found the 1.6 million ounces gold some 400 metres south of the Fennell open pit- a pit that has produced some 2.4 million ounces of gold for Omai in the past and it was located at a depth suitable for open pit mining. Nine months later, Omai was able to increase its gold resource in the Wenot Deposit from the 1.6 million ounces to 1.86 million ounces-a 16 percent increase.
Importantly, Omai’s CEO said that the results to date are already expected to positively impact the resources as they move forward to an updated mineral resource estimate to be followed by a decision on a preliminary economic assessment (PEA) later this year.
Moreover, during an interview in March 2023, Ellingham had stated that the “the potential for new discoveries is very high” for their mining operations in Guyana.
During the interview, Omai’s CEO was asked why the company had left Guyana. Ellingham explained that the company took advantage and acquired a very large project in neighbouring Suriname. She stated that the company wanted to build the mine economically, so they relocated the mill.
To this end, the CEO underscored that Omai’s relocating in the past has worked out for the present team working in Guyana gold fields. “Why that’s great for us is because, of course, they didn’t completely deplete the resources, they didn’t explore underneath the existing deposits that they were mining, and they didn’t explore elsewhere on the property. So it kind of sets it up perfectly for us,” she added.
Ellingham highlighted that within two years, the company was able to double its gold resources. “With our first drilling (two years ago)…and after the first nine months of drilling, we published our first (resource estimate) of 1.8 million ounces and then we’ve drilled last year and we actually doubled that to 3.6 million ounces. So we are working around the past producing deposits, but one we’ve been able to drill below and along strike and we know it’s still open along strike and at depth and then the other one was the historic resource below the other,” the Omai CEO said.
Ellingham shared too that for the company’s outlook, they have identified a number of “very interesting” targets as Omai moves ahead with its plans to expand its existing resources.
The CEO noted that with Omai sitting on 3.6 million ounces, their market cap is under $30 million. She shared, too, that the company is trading at about $8 per round.
“Guyana is a very desirable location, and so I think there’s part of that, but you know, in our exploration, we believe we’ll reach success in a very small area on our property, which is two kilometres by two kilometres, so seven and a half million ounces between what was mined and what we’ve discovered. So that’s just a very small part of the property. So, I think the potential for new discoveries is very high,” she added.
Notably, while foreign companies have been rushing to cash in on the “gold fever” in Guyana, the country has been suffering massive declines in its annual declarations since 2017.
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