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• Omai announced assay results from its first drill hole at the Gilt Creek deposit since 2007.
• The hole intersected a staggering 1.0 g/t Au over 774m.
• An updated mineral resource is planned to be released in Q2/25 with an updated PEA targeted to be announced in Q3/25.
• In our last research note, we updated our NPV assumptions by including the Gilt Creek deposit as it will be included in the upcoming PEA. This resulted in us increasing our target price on Omai to $0.80/share, find the research note here.
Omai Gold Mines Corp. (OMG:TSXV, OMGGF:OTC) announced assay results from the first hole (24ODD-095) drilled at Gilt Creek since the 2.4Moz deposit was outlined in 2007. The hole intersected an impressive 774m of the quartz diorite intrusion averaging 1.0 g/t Au. The hole also expands the known mineralization another 200m laterally beyond the previously drilled limit and ended in mineralization. With this hole mainly being planned for PEA studies, it is also highly valuable in significantly expanding the mineralized extent as well as reinforcing the highly prospective geology across the large property. We are maintaining our BUY rating and $0.80/share on Omai Gold Mines.
Highlights from hole 24ODD-095 include:
• Hole 24ODD-095: 1.0 g/t Au over 774m, including:
o 2.0 g/t Au over 64.0m, including 5.79 g/t Au over 9.0m
o 1.90 g/t Au over 48.0m, including 4.19 g/t Au over 7.5m
o 2.14 g/t Au over 37.5m, including 2.62 g/t Au over 24.2m
• This hole extended the gold mineralization ~200m laterally to the southwest and to a vertical depth of 850m in an area with no prior drilling (Figure 3).
Other notable highlights of the hole are that 198.3m of the higher-grade intervals (not continuous) are over 1.5 g/t Au and give a weighted average grade of 2.78 g/t Au. Additionally, visible gold was found in 38 separate areas between 442m and 1,139m.
Our Take
With hole -095 mainly being drilled to assist in mine planning, metallurgical studies and geological modelling for the PEA, it was highly valuable in testing the lateral and depth extend of the deposit. Most notably, extending the known mineralization laterally another 200m as well as remaining open at depth, gives us strong confidence that the already sizeable 2.4Moz deposit has further upside. Though it is not likely that Omai will focus its 2025 drill campaign on resource growth at Gilt Creek, it gives us conviction in continued exploration success as well as makes Omai an attractive takeout target for mid/large-cap producers who are looking to acquire assets that hold additional resource growth potential.
OMG: Hits Massive Intercept at Gilt Creek in First Hole Since 2007
What you need to know:• Omai announced assay results from its first drill hole at the Gilt Creek deposit since 2007.
• The hole intersected a staggering 1.0 g/t Au over 774m.
• An updated mineral resource is planned to be released in Q2/25 with an updated PEA targeted to be announced in Q3/25.
• In our last research note, we updated our NPV assumptions by including the Gilt Creek deposit as it will be included in the upcoming PEA. This resulted in us increasing our target price on Omai to $0.80/share, find the research note here.
Omai Gold Mines Corp. (OMG:TSXV, OMGGF:OTC) announced assay results from the first hole (24ODD-095) drilled at Gilt Creek since the 2.4Moz deposit was outlined in 2007. The hole intersected an impressive 774m of the quartz diorite intrusion averaging 1.0 g/t Au. The hole also expands the known mineralization another 200m laterally beyond the previously drilled limit and ended in mineralization. With this hole mainly being planned for PEA studies, it is also highly valuable in significantly expanding the mineralized extent as well as reinforcing the highly prospective geology across the large property. We are maintaining our BUY rating and $0.80/share on Omai Gold Mines.
Highlights from hole 24ODD-095 include:
• Hole 24ODD-095: 1.0 g/t Au over 774m, including:
o 2.0 g/t Au over 64.0m, including 5.79 g/t Au over 9.0m
o 1.90 g/t Au over 48.0m, including 4.19 g/t Au over 7.5m
o 2.14 g/t Au over 37.5m, including 2.62 g/t Au over 24.2m
• This hole extended the gold mineralization ~200m laterally to the southwest and to a vertical depth of 850m in an area with no prior drilling (Figure 3).
Other notable highlights of the hole are that 198.3m of the higher-grade intervals (not continuous) are over 1.5 g/t Au and give a weighted average grade of 2.78 g/t Au. Additionally, visible gold was found in 38 separate areas between 442m and 1,139m.
Our Take
With hole -095 mainly being drilled to assist in mine planning, metallurgical studies and geological modelling for the PEA, it was highly valuable in testing the lateral and depth extend of the deposit. Most notably, extending the known mineralization laterally another 200m as well as remaining open at depth, gives us strong confidence that the already sizeable 2.4Moz deposit has further upside. Though it is not likely that Omai will focus its 2025 drill campaign on resource growth at Gilt Creek, it gives us conviction in continued exploration success as well as makes Omai an attractive takeout target for mid/large-cap producers who are looking to acquire assets that hold additional resource growth potential.
Underlying
OMAI GOLD MINES CORP
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Ben Pirie
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