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• Omai announced a substantial MRE, increasing its Wenot indicated and inferred resources by 10% and 45% respectively. Resource grades also increased significantly (10% indicated, 16% inferred).
• Today’s Resource Update highlights the Company’s ability to cost- effectively increase the resource while producing what we believe should be a much more economical open-pit resource (578 Koz Au was added to the open-pit resource in this update)
• OMG plans to release a Preliminary Economic Assessment in H1/24.
• Omai is well undervalued when compared to peers as depicted in our research note here.
This morning, Omai Gold Mines Corp. (OMG:TSXV, OMGGF:OTC) announced its updated Mineral Resource Estimate (MRE) on its Omai Gold Project in Guyana. The Company reported a substantial increase to the Wenot open-pit resource, increasing the indicated portion by 10.2% and the inferred resource by a sizable 45.0% (from the Oct 2022 MRE). The grades also increased substantially with the indicated and inferred resource grades increasing by 10.4% and 15.7%, respectively (Table 1). This update should materially improve the economics of the Company’s upcoming Preliminary Economic Assessment (PEA) as the majority of the added ounces in today’s resource update are in the West Wenot area and would be mined in the early years of the projected operation.
This MRE will immediately be used in the preparation for a PEA which is likely to be released in Q2/24. Several supporting studies for the PEA are already underway. We are maintaining our BUY rating and target price of $0.30/share on OMG.
The Wenot Deposit now consists of an indicated resource of 834Koz at 1.48 g/t Au and an inferred resource of 1.6Moz at 1.99 g/t Au. Combined with Gilt Creek, the global resource at the Omai Gold Project now totals 1.98Moz at 2.15 g/t Au in the indicated category and 2.28Moz at 2.26 g/t Au in the inferred category (Table 3).
By spending under $3M since the 2022 MRE, the Company increased the global resource by 578Koz Au, which equals an industry-leading cost of discovery of ~$5.2/oz Au. Additionally, there is further unaccounted for upside in this low cost of discovery as the average grade of the resource also increased which further bolsters the economics in a mining scenario.
OMG: Substantial Resource Update; Advancing to PEA
What you need to know:• Omai announced a substantial MRE, increasing its Wenot indicated and inferred resources by 10% and 45% respectively. Resource grades also increased significantly (10% indicated, 16% inferred).
• Today’s Resource Update highlights the Company’s ability to cost- effectively increase the resource while producing what we believe should be a much more economical open-pit resource (578 Koz Au was added to the open-pit resource in this update)
• OMG plans to release a Preliminary Economic Assessment in H1/24.
• Omai is well undervalued when compared to peers as depicted in our research note here.
This morning, Omai Gold Mines Corp. (OMG:TSXV, OMGGF:OTC) announced its updated Mineral Resource Estimate (MRE) on its Omai Gold Project in Guyana. The Company reported a substantial increase to the Wenot open-pit resource, increasing the indicated portion by 10.2% and the inferred resource by a sizable 45.0% (from the Oct 2022 MRE). The grades also increased substantially with the indicated and inferred resource grades increasing by 10.4% and 15.7%, respectively (Table 1). This update should materially improve the economics of the Company’s upcoming Preliminary Economic Assessment (PEA) as the majority of the added ounces in today’s resource update are in the West Wenot area and would be mined in the early years of the projected operation.
This MRE will immediately be used in the preparation for a PEA which is likely to be released in Q2/24. Several supporting studies for the PEA are already underway. We are maintaining our BUY rating and target price of $0.30/share on OMG.
The Wenot Deposit now consists of an indicated resource of 834Koz at 1.48 g/t Au and an inferred resource of 1.6Moz at 1.99 g/t Au. Combined with Gilt Creek, the global resource at the Omai Gold Project now totals 1.98Moz at 2.15 g/t Au in the indicated category and 2.28Moz at 2.26 g/t Au in the inferred category (Table 3).
By spending under $3M since the 2022 MRE, the Company increased the global resource by 578Koz Au, which equals an industry-leading cost of discovery of ~$5.2/oz Au. Additionally, there is further unaccounted for upside in this low cost of discovery as the average grade of the resource also increased which further bolsters the economics in a mining scenario.
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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