Omai's Guyana Gold Project Valued at $4B

Omai Gold Mines' (TSXV: OMG; US-OTC: OMGGF) namesake project in Guyana is valued at a staggering $4 billion, according to a new economic study. This valuation positions it among the largest and most valuable undeveloped gold projects in South America.

The preliminary economic assessment (PEA) assumes a gold price of $3,600 per oz. and shows a net present value (NPV) at 5% discount rate of $4 billion, which is more than double the estimated costs of $1.42 billion in initial capital.

The project has an impressive production profile, with a potential to mine 6.3 million oz. of gold over an 18-year life, resulting in a 24% internal rate of return (IRR) and a 4.1-year payback period.