Omai Gold Project Sees Strong Economic Potential in Guyana

Omai Gold Mines Corp., an Ontario-based gold mining company, has released a Preliminary Economic Assessment (PEA) for its Omai Project in Guyana, South America. The PEA outlines the economic viability of the project, which includes both open-pit and underground mining operations.

According to the report, the project is expected to produce 6.327 million ounces of gold over an 18-year mine life, with average annual production of 351,488 ounces per year. The peak year production is estimated at 435,667 ounces. The total combined production from both deposits is projected at 6,326,775 ounces of payable gold.

The PEA also estimates the initial capital expenditure (Capex) for the project to be $1.426 billion, with sustaining and growth capital totaling $928 million over the mine life. The average cash operating costs are estimated at $1,501 per ounce of gold produced, while the all-in sustaining cost (AISC) is projected at $1,608 per ounce.

The financial metrics presented in the PEA suggest a strong potential for the project to generate significant economic benefits. At a base case gold price of $3,600 per ounce, the after-tax Net Present Value (NPV)5% is estimated at $4.0 billion, with an internal rate of return (IRR) of 24%. The payback period is estimated at 4.1 years.

Elaine Ellingham, President and CEO of Omai Gold Mines Corp., commented on the release of the PEA: 'We are very pleased to deliver this PEA, which reinforces the potential for Omai to become a very large-scale mining operation with a clear path to bringing significant economic benefits to the people of Guyana.'