The Best Place to Look for a New Gold Mine? Near an Old Gold Mine.
Omai Property: A Tale of Two Pits
Small scale gold mining at Omai has been recorded since the late 19th century. Several well-known mining companies explored on the property but large-scale mining didn’t commence until 1993. Over its short 12 year mine life, Omai produced over 3.7 million ounces from two large open pit operations, with average annual production of over 300,000 ounces per year. In 2002 alone, Omai produced an impressive 356,000 ounces of gold. For a period, it was South America’s largest primary producing gold mine.
Timing is everything in mining business and Omai had very unfortunate timing, reaching production just at a time when the gold price was less than $400 per ounce. Over the mine life the gold price sagged and in fact averaged a dismal $346 per ounce. Gold production at Omai was high and the operation did manage to be profitable, but there was little economic incentive to explore beneath or along strike of the existing mined deposits, nor to pursue the many near-mine exploration targets known to exist. By 2003, the operator had turned their focus to a large new project in nearby Suriname and made the decision to relocate key equipment from Omai to their new mine, and Omai ceased operations by 2005.
Average Gold Price Between 1996 to 2005 vs Today (USD)
*Average Price 2021
*Average spot close price (in USD) for Gold Futures Contracts (COMEX:GC)
Our Company is very fortunate to be able to step in at a time when the gold price is now five times ($1,802 average in 2021) the price it was when the Omai mine was operating. This presents a great opportunity to explore relatively low-risk targets: beneath, along strike, and in the areas surrounding these past producing gold deposits, all areas that were not pursued. The management and board have many years of experience in the gold exploration and mining business. We believe this unique property will allow us to discover significant additional gold resources fairly quickly, to rebuild the success of Guyana’s world-famous Omai gold mine.
We’re Well Connected.
The Omai property is located in Guyana, an English-speaking country on the north coast of South America. The property is near the large Essequibo River approximately 160 kilometers south of the country’s capital city, Georgetown. The property boasts excellent existing infrastructure, including road access to Georgetown and an operational airstrip on-site that connects Omai to Georgetown in just 40 minutes. A few large buildings, remaining from the mine and mill operations, were preserved and have been re-purposed to provide excellent core logging facilities, offices and accommodations for the exploration team, drillers and contractors.