June 3, 2022 (Investorideas.com Newswire) As Omai Gold Mines is busy drilling their venture in Guyana, the Important Investor catches up with CEO Ellingham to debate the most recent outcomes.
Though the U.S. greenback index not too long ago broke via ranges not seen since 2003, indicating nice power, brought on by already introduced and anticipated Fed price hikes to counter the multi-decade excessive inflation ranges, gold continues to be buying and selling round $1850/oz. Because the Russia-Ukraine battle continues to be removed from over, and markets are frothy over a possible looming recession, gold as the final word worry commerce seems to be holding its floor firmly.
As a complicated gold explorer, Omai Gold Mines (TSXV:OMG) appears to be trying on the proper steel, as they’re within the midst of an ongoing trenching and drill program at their Omai Gold venture in Guyana, after elevating CA$2.6M, as a second and final tranche of CA$600k was closed on April 27, 2022.
Most of this financing got here from a big UK gold fund that is aware of Guyana and acknowledges the potential on this inventory, leaping in at $0.12/share. New drill outcomes have been not too long ago introduced, stepping out 100 meters to the west at Wenot, and generated financial outcomes, a lot to the delight of administration.
As a reminder, Omai Gold Mines already has delineated the Wenot deposit with a 2022 Nationwide Instrument 43-101 useful resource estimate of 1.64 million oz (1.64 Moz) at 1.5 grams per tonne gold (1.5 g/t Au), one other adjoining mineralized envelope (Fennell) has a historic useful resource estimate of about 1.5 Moz at 1.5 g/t Au. Omai is now increasing Wenot.
On Could 27, 2022, Omai Gold Mines introduced the primary outcomes of the continued exploration program at their Omai gold venture in Guyana. The corporate already accomplished 5 diamond drill holes totaling 1,423m west of the Wenot deposit commencing on the finish of March, and a sixth gap is underway. Eight drill holes west of the Fennell goal for 1,213 meters and several other trenches have been additionally accomplished throughout February-April. An general view of exploration may be seen on the map under, with amongst others the spotlight holes 220DD-033/038/039 being featured, additionally mentioned within the Could 27, 2022 information launch (and this text).
The outcomes of those drill holes have been stable:
- Gap 22ODD-038 (West Wenot) 8.5 meters at 5.01 g/t Au from 215 meters
- Gap 22ODD-039 (West Wenot) 17.1 meters at 2.32 g/t Au from 264 meters
- Gap 22ODD-033 (Blueberry Hill) 0.9 meter at 41.73 g/t Au from 151 meters
Though these outcomes have been intercepted from vital depths, particularly gap 039, this might nonetheless be financial ore, as actual dmepth is 110 meters for gap 038 and 140 meters for gap 039, as a result of inclination of each holes. The drilling for the West extension of Wenot will also be considered on this part on the left.
CEO Elaine Ellingham was enthusiastic about these first two outcomes at Wenot.
“We’re very happy that our drilling has established that the Wenot shear zone extends to the west and continues to host vital gold mineralization. The gold mineralization in these new holes is just like the primary zones at Wenot,” she mentioned. “We not too long ago deployed the second drill to begin step out drilling on the jap extension of the Wenot deposit, roughly two kilometers to the east. Our goal is to work in direction of a revised NI 43-101 Wenot useful resource, assuming favorable outcomes proceed as we discover each the east and west extensions of the Wenot shear. Increasing the Wenot useful resource into these un-mined areas is critical for an final mine plan as these may contribute to lower-strip-ratio starter pits for the bigger Wenot deposit.”
As these two leads to themselves are hitting gold at vital depth and would have a considerable strip ratio associated to the gold contents, and have been drilled beneath a 50-degree inclination, I questioned if administration anticipates extra mineralization at decrease depth, as a part of vertical mineralized lenses as is the everyday geological idea at Wenot.
For that, administration must drill fences perpendicular to the strike course of Wenot to the west. CEO Ellingham answered, “Not within the brief time period, as historic drilling examined shallow mineralization within the saprolite layer, and the required knowledge for a useful resource replace is accessible. We may even await assays of extra holes earlier than figuring out about fences and so on., and the main target is on increasing the strike size of the deposit. We’re drilling fairly deep to catch zones at depth, and most zones run upwards to the saprolite anyway.”
Some examples of extra near-surface historic holes may be seen right here (in inexperienced):
The complete outcomes for holes 038 and 039 are represented on this desk:
Regardless of the inclination, the drill bit clearly hit a number of mineralized layers, usually very slender however clearly indicating a stockwork of veins/lenses. Gap 038 was drilled extra to the north, to hunt mineralization under a sediment cowl into volcanic recent rock, which was profitable.
Because the geologists put it, “the gold mineralization happens inside quartz-ankerite veinlets and stockworks, some with coarse seen gold and developed primarily in and alongside the sheared margins of variably silicified sub-vertical felsic dikes at or close to the lithologic contact between the andesite-dominant lithologies to the north and lithic wacke sediments to the south.” It was good to learn that the West extension of Wenot was the previous web site of the mill, service buildings, and different mine infrastructure.
When requested if the previous operator did not discover this space earlier than constructing the mine, CEO Ellingham answered, “The previous operators targeted completely on getting the recognized useful resource into manufacturing as quickly as attainable, and did not discover a lot after the mine got here into manufacturing. The realm the place we’re drilling now was coated with haul roads and all the Omai buildings, so actually no drilling may very well be achieved on this space. Our present exploration workplaces, core logging services, and barracks are on this space, however we are able to drill proper round them. Actually, one of many subsequent holes will likely be between our kitchen and laundry services.”
It’s good to have stable drill outcomes out proper earlier than PDAC, as traders have been apparently different alternatives it appears over the last troublesome two weeks or so.
Share value one yr timeframe (Supply: tmxmoney.com)
In response to CEO Ellingham, they’ve extra outcomes from the Wenot west extension drilling popping out quickly, in all probability inside two weeks, and it is rather seemingly they may adhere to this timeframe this time and make it earlier than the upcoming PDAC, as most lab delays are solved now.
Omai Gold Mines has additionally accomplished drilling, trenching, and sampling west of the Fennell pit and to the southwest of the Wenot pit. Eight holes have been drilled, and assays have been returned for the primary 5 holes totaling 1,213 meters. Drilling on the Blueberry Hill goal offered the next outcomes of three holes:
Gap 033 returned seen gold and a high-grade intercept, gap 034 hit a number of low-grade veins, and gap 035 hit only one low-grade vein. All three holes examined high-grade mineralization recognized throughout trenching, the place six of 11 samples assayed over 6g/t Au. Further trenching is deliberate with a view to discover extra vectors earlier than extra drill targets may be outlined.
Because the sturdy trenching outcomes created some expectations for me, I requested CEO Ellingham how she considered and interpreted these drill outcomes, additionally in connection to the trenching outcomes and different geophysical knowledge.
She said, “We did hit a really high-grade vein, however have been anticipating further mineralization. We knew from the trenching that the structural setting is complicated, so we’ll proceed to mannequin the information earlier than additional drilling. Our Guyana skilled Linda Heesterman was not too long ago on-site for 10 days and agreed that this space is complicated however clearly has vital gold potential.”
Trenching and sampling on the Snake Pond goal returned equally spectacular outcomes like 1 meter at 5.2 g/t Au, 5 meters at 1.49 g/t Au, 5 meters at 4.5 g/t Au, 5 meters at 6.1 g/t Au, and 5 meters at 7.68 g/t Au. Two drill holes (040 and 042, which may be seen within the first map on this article) have been accomplished, with assays pending.
The corporate additionally drill examined a goal south of Wenot with two holes. Diamond drill gap 036 did not intercept anomalous gold, and gap 037 (which may be seen within the first map on this article) returned anomalous values like 6 meters at 0.67g/t Au, 1 meter at 0.77g/t Au and 1 meter at 0.96g/t Au.
In response to CEO Ellingham, this was the primary of checks of the important thing airborne geophysics targets recognized by their consultants. There are a selection of such targets, any certainly one of which may host one other Fennell or Wenot deposit and these could be game-changers for the venture. Gap 037 had a couple of intersections and a few core loss across the quartz veining that had anomalous gold. They’ll seemingly do a follow-up gap on this space because the geology was very favorable.
Final however not least, the historic Fennell useful resource would take simply 4 to 5 holes to transform right into a NI43-101 compliant useful resource, so I questioned if this drilling and doubtlessly maiden useful resource may very well be accomplished this yr.
CEO Ellingham said, “We have to deal with creating worth for our shareholders within the short-term and we see the most effective use of our funds in exploring the extensions of the Wenot shear, with the purpose of advancing to an up to date NI 43-101 useful resource. The Fennell deposit was effectively drilled with 46 holes completely 27,000 meters, so we’re pretty assured that the ounces are there. These holes to improve the Fennell historic useful resource will likely be lengthy holes that will likely be gradual to finish and dearer, so within the shorter time period, we see extra worth in increasing into a brand new space. Additionally, the areas we’re exploring alongside strike of Wenot haven’t been mined earlier than and can due to this fact be near-surface and in the end cheaper to mine.”
Conclusion
It was good to see Omai Gold Mines closing the financing for CA$2.6M, which allows them to maintain exploring for the rest of this yr. The primary stepout drill outcomes at Wenot have been promising, however want extra follow-up drilling with a view to add vital financial tonnage. Drilling on the Blueberry and Snake Pond targets did return vital gold mineralization as but however wants much more follow-up trenching and drilling earlier than delineating eventual satellite tv for pc deposits. Historic drilling indicated potential targets, so the seek for extra gold continues on the former Omai Gold mining camp. Changing Fennell right into a compliant useful resource may immediately double the present gold sources, so this might be an fascinating growth as there aren’t too many juniors with over 3Moz Au with market caps hovering at simply CA$23M.
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The Critical Investor is a e-newsletter and complete junior mining platform, offering evaluation, weblog and newsfeed, and all kinds of details about junior mining. The editor is an avid and significant junior mining inventory investor from The Netherlands, with an MSc background in development/venture administration. Quantity cruncher at venture economics, on the lookout for high-quality firms, largely progress/turnaround/catalyst-driven to keep away from an excessive amount of dependence/affect of long-term commodity pricing/market sentiments, and infrequently on the lookout for long-term deep worth. Getting burned previously himself at junior mining investments by following overly optimistic sources that most of the time averted to say (hidden) dangers or essential flaws, The Important Investor discovered his lesson effectively, and goes a couple of steps additional ever since, offering a recent, extra in-depth, and significant imaginative and prescient on issues, therefore the title.
Disclosures:
Please word: the views, opinions, estimates, forecasts, or predictions relating to Omai Gold Mines’ useful resource potential are these of the writer alone and don’t characterize views, opinions, estimates, forecasts, or predictions of Omai or Omai’s administration. Omai Gold Mines has not in any manner endorsed the views, opinions, estimates, forecasts, or predictions offered by the writer.
The writer just isn’t a registered funding advisor, and at present has a protracted place on this inventory. Omai Gold Mines is a sponsoring firm. All info are to be checked by the reader. For extra data please go to https://omaigoldmines.com and skim the corporate’s profile and official paperwork on www.sedar.com, additionally for essential threat disclosures. This text is offered for data functions solely and isn’t supposed to be funding recommendation of any type, and all readers are inspired to do their very own due diligence and discuss to their very own licensed funding advisors prior to creating any funding choices.
All offered tables are my very own materials except said in any other case.
All footage are firm materials except said in any other case.
All currencies are in U.S. {Dollars} except said in any other case.
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