Omai Gold Mines
Primary ticker: TSXV:OMG, OTCQB:OMGGF
Stage of development: Exploration
Primary minerals: Gold
Project to promote: Omai Gold Project
Project location: Guyana
Website: omaigoldmines.com
Omai Gold Mines Corp. (OMG) announced a baseline PEA for its Wenot Open Pit gold deposit in Guyana: NPV5% of US$556 m, IRR 19.9% @ $1950/oz Au, averaging production of 142,000 oz/yr, total, avg grade 1.51 g/t, 1.84 moz over a 13 yr mine life, low capex of $375m and LOM sustaining capital of $172m, and low AISC of $1009/oz. This initial PEA includes only 1.84 moz of the 4.3 moz NI43.101 gold Resources. This brownfields project benefits from road access, known metallurgy and historical recoveries of 92.5%, and existing tailings facilities. Management is confident this baseline PEA can be significantly expanded within and outside the Wenot PEA superpit, and also by incorporating Gilt Creek, and two high grade, at-surface zones. This property produced over 3.8 moz between 1993-2005 (>300,000 oz/yr) and the Company believes there is a path to re-building a large, long life operation in this mining friendly jurisdiction.
Cash: CAD$1.4M
Debt: NIL
Major shareholders:
Silvercorp Metals – 8.3%
Sandstorm Gold Royalties – 4.8%
Institutional investors (Mackenzie, HNW) – 17% 3%
Management ownership – 3%
Financials
Management Profile
Elaine Ellingham, President & CEO
Elaine Ellingham is a geologist with over 30 years of experience in exploration, production, corporate development, including numerous Board & executive roles. Elaine was at TSX for 8 years in Corporate Finance and later as National Leader, Mining & initiated an aggressive program to establish TSX as the destination mining exchange. At Richmont Mines Inc, acted as lead director for 7 years, stepped in as interim CEO, introducing a new chapter for the gold producer, and remained on the Board through to the successful near-billion-dollar acquisition by Alamos. Current Director at Alamos & Almaden, previously at Wallbridge Mining and Aurania Resources. Significant capital markets and M&A experience.
What is your rationale for taking part 121 Mining Investment?
Omai recently announced a $556m NPV baseline PEA incorporating part of a large 4.3 m oz gold resource at this large past producing gold project in Guyana. Currently trading at ~ $12/oz of resources, the Company believes it is a good opportunity for investors to participate in a re-rating as the market starts to recognize the merits of this large brownfields project located in a mining friendly jurisdiction. We look forward to presenting to new investors – retail, institutional, looking to participate in a potential re-rating. Looking for market support + potential interest in future equity raises.
What recent news would you like to highlight to investors attending?
April 4, 2024 Omai Gold Delivers PEA with After-Tax NPV5% of $556 Million and 19.8% IRR at a $1,950/oz Gold Price for Wenot Open Pit Project in Guyana
February 8, 2024 Omai Gold Increases Indicated Mineral Resources to 2.0 Million Ounces and Inferred Mineral Resources to 2.3 Million Ounces with Expansion of Wenot Deposit
What are your key goals for the next 3, 6 and 12 months?
3 Months:
Initiate a 5 point plan expand upon the very positive initial PEA. Omai mine plan: Expansion of the Wenot Deposit, within the PEA pit, along strike and at nearby high-grade at surface gold zones. Commence engineering studies at this past producing property that management believes can be fast-tracked towards production.
6 Months:
Expand resources through drilling and commence engineering studies to expand initial PEA.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Undervalued for a large gold resource with a very clear path forward. Next financing important to executing on exciting expansion off the baseline PEA.
What do you think makes your company such a compelling investment?
As a brownfields project, Omai benefits from good access and
a wealth of historical data that provides knowledge of the geology, nature of the gold
mineralization on the property, as well as metallurgy and historical recoveries. Once South America’s largest producing gold mine, Omai produced over 3.7 million ounces of gold between 1993 and 2005. Our initial PEA in March 2024 (based on only one of the two gold deposits on site) was to set a base economics but we believe there is clear potential for this to be significantly expanded. Omai is proving that it has the potential to rival its historical production profile.
What are the top 3 key investor takeaways?
– Established a 4.3 million ounce NI 43-101 resource in Guyana at a large past producing mine – excellent grades for a large open pit mine
– First PEA published March 2024 for production of 1.84 million ounces with NPV5% of US$556 million, IRR of 19.8% at a US$1950/oz gold price is just the starting point as it only includes the Wenot open pit gold deposit
– As a brownfields project there is road access, known recoveries and metallurgy, known geology and massive historical database which has accelerated resource growth.
– Two adjacent deposits remain open at depth and along strike — this area is well endowed with gold mineralization – between gold mined and current resources it shows already
over 8 million ounces.