Omai Gold Project Aims for $4 Billion NPV in Guyana

Omai Gold Mines (TSXV: OMG) has released its preliminary economic assessment (PEA) for the Omai gold project in Guyana, which outlines a significant mining operation. The PEA projects an 18-year mine life with average annual production of 351,488 ounces of gold, peaking at 435,667 ounces.

The study estimates that the after-tax net present value (NPV) of the project would be $4.0 billion using a 5% discount rate, with a 24% internal rate of return and payback in 4.1 years. If the gold price increases to $4,200 an ounce, these figures climb to $5.5 billion NPV, a 30% return on investment, and a 3.4-year payback.

The proposed operation would pair a large open pit at Wenot with an underground mine at Gilt, both feeding a 25,000-tonne-per-day plant. Initial capital costs are estimated to be $1.43 billion over two years of pre-production, followed by sustaining capital and growth capital for the underground.

Omai Gold's CEO Elaine Ellingham stated that the PEA reinforces the potential for Omai to become a very large-scale mining operation with significant economic benefits for Guyana.