Omai Gold drills expand confidence of Wenot in Guyana

Drilling at Omai Gold Mines’ (TSXV: OMG; US-OTC: OMGGF) namesake project in Guyana has returned high grade results that lie outside historical mining zones at the Wenot deposit, as an updated economic study for the project is expected in weeks.

Highlight hole 26ODD-180 cut 20.6 metres grading 8.54 grams gold per tonne from 228 metres depth, including 2.5 metres at 25.89 grams gold and 5.8 metres grading 13.42 grams gold, Omai reported Monday. Hole 26ODD-173W returned 11.5 metres at 2.63 grams gold from 387.5 metres depth, including 8.1 metres grading 3.68 grams gold and 13 metres at 2.62 grams gold.

Results of the 12 holes released Monday are “a positive for Wenot,” Omai CEO Elaine Ellingham said in a release. “These holes confirm the strike extension of these shallow zones that fall within the proposed pit area, but are far outside the area of historical mining.”

Resource tailwinds

The assays follow the release about six weeks ago of a resource update for Omai that showed it hosts one of the largest resources for gold projects in the country.

Located in central Guyana, Omai is one of South America’s largest past-producing gold mines, having yielded more than 3.7 million oz. between 1993 and 2005. Guyana has in recent years emerged as a choice gold jurisdiction, drawing investment with its stable mining regime, improving infrastructure and a slew of discoveries that have positioned it as a new exploration hotspot alongside neighbours Suriname and Brazil.

Other noteworthy assays from Wenot include 6.6 metres grading 4.77 grams gold from 255 metres depth in hole 26ODD-175, including 3 metres at 9.27 grams gold. Hole 26ODD-179 returned 8.8 metres grading 2.54 grams gold from 510 metres downhole, including 2.7 metres grading 6.48 grams gold.

50,000-metre campaign

The results are from a 50,000-metre program at Omai of which 23,685 metres have been drilled. The program is targeting apparent shear displays on the northern edge of the Wenot shear corridor, where drilling has confirmed the splays by intersecting shallower gold zones north of the central Wenot contact zone. That suggests the overall extent of the large Wenot system, Omai said. The project is comprised of the Wenot and Gilt deposits.

The updated preliminary economic assessment for Omai is to include a larger mine plan integrating the Gilt underground zone and an expanded Wenot super pit. The study is expected to be released in six to eight weeks.

Omai hosts 38.1 million indicated tonnes grading 2.04 grams gold for 2.5 million oz. contained metal, and 106.6 million inferred tonnes at 1.59 grams for 5.5 million ounces.

Shares of the company were down 4% to $2.58 apiece on Monday morning in Toronto, for a market capitalization of $1.7 billion (US$1.2 billion). The stock has traded in a 12-month range of 52¢ to $2.84.