FREE

OMG: High-Grade Assays Begin to Roll-In

What you need to know:
• Omai announced the first batch of assay result from the ongoing 10,000m drill program. 10 diamond drill holes have been completed totalling 3,732m and a second drill came online in late August.
• Assays from 7 holes were reported today, mostly in previously untested gap zones, yielding strong gold mineralization in the majority of holes.
• It is important to note that if these gap zones are converted from waste to ore (added to the resource), the economics of an updated PEA will be boosted significantly (reducing the strip, lowering costs, etc.)
• We published an interview with CEO Elaine Ellingham, find it here.

This morning, Omai Gold Mines Corp. (OMG:TSXV, OMGGF:OTC) announced drill results from its ongoing 10,000m drill program at the Omai Gold Project in Guyana. To date, 10 diamond drill holes have been completed totalling 3,732m and drilling continues. Notably, a second drill came online in late August which should accelerate the program. The Company reported assay results from seven diamond drill holes which mostly tested gap areas that are not currently part of the existing resource. We are pleased with today’s results as they prove that many of the undrilled gaps host strong gold mineralization and there is high potential for the resource to grow in areas that would decrease the strip ratio and boost future mine economics. We are maintaining our BUY rating and our $0.40/share target price on OMG.

Assays have been received for seven holes and additional assays are pending. Highlights from today’s release include:

• Hole 24ODD-078: 2.20 g/t Au over 43.7m and 3.13 g/t Au over 43.0m
• Hole 24ODD-076: 2.89 g/t Au over 22.0m and 1.48 g/t Au over 22.0m
• Hole 24ODD-077: 2.46 g/t Au over 18.9m and 1.01 g/t Au over 25.5m
and 2.08 g/t Au over 10.8m and 4.19 g/t Au over 4.8m
• Hole 24ODD-075: 1.26 g/t Au over 21.5m

Following the strong results reported today in the gap zones, the Company has stated plans to allocate additional resources for continued testing in these areas. Based on the results to date, we anticipate not only a significant increase in the upcoming resource estimate but also an enhancement in the economics of the updated PEA. This is due to the potential conversation of previously reported waste material (in the gap zones) into economic resources, which would reduce the strip ratio, thereby lowering costs and boosting the project’s NPV.

Ongoing Work
Assays from three holes already drilled remain pending, while drilling is ongoing targeting Wenot mineralization below 350m depth (81% of the current resource lies above 350m) which is an under-drilled area with high-grade potential.

Drilling is expected to continue until early December at which point the Company will commence work on an updated mineral resource estimate. As previously mentioned, since 2022 and the most recent resource update, Omai added 578Koz of new gold to the Wenot deposit by spending just $3M, equating to a very low cost of discovery of ~$5.2/oz. This gives us confidence in management’s ability to cost-effectively add ounces to the resource and that the resource will grow materially.