Omai Gold Mines recently unveiled promising projections for its Wenot project in Guyana, suggesting it could yield substantial cash flow in its initial four years. According to the company, revenues could potentially surpass its US$375 million construction expenses.
A preliminary economic assessment, disclosed yesterday, highlighted an anticipated annual after-tax free cash flow of US$112 million, totaling approximately US$1 billion over the proposed 13-year lifespan of the open-pit mine.
The report outlined an estimated yearly output of 142,000 ounces of gold, with an all-in sustaining cost pegged at US$1,009 per ounce.
Elaine Ellingham, President, and CEO of Omai, expressed enthusiasm about the development, emphasizing the conversion of successful exploration endeavors into a foundational production scenario. Ellingham remarked, “It converts our successful exploration programs into a baseline production scenario that shows potential for robust economic development for Omai to once again become a large-scale gold producer.” She further underscored the expedited progress of the project, signifying a significant step forward for the company.
Guyana Standard understands that the Wenot project boasts an after-tax net present value (NPV) of $556 million at a 5% discount rate, accompanied by a commendable 19.8% internal rate of return (IRR), based on a gold price of $1,950 per ounce, as per the study. With an average head grade of 1.51 grams of gold per tonne, the deposit holds significant promise.
Recent resource updates, issued in February, reveal substantial reserves within the Wenot and Gilt zones. Wenot hosts 17.6 million indicated tonnes grading 1.48 grams gold per tonne, amounting to 834,000 ounces of contained metal, alongside 25.2 million inferred tonnes at 1.99 grams, equating to 1.6 million ounces of gold. On the other hand, Gilt boasts 11.1 million indicated tonnes at 3.22 grams, containing 1.2 million ounces of gold, and 6.2 million inferred tonnes at 3.35 grams, representing 665,000 ounces of gold.
The robust projections for the Wenot project underscore Omai’s strategic endeavors to rejuvenate its gold mining operations in Guyana, positioning itself for sustained growth in the lucrative sector.
