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Drilling Expands Potential at Past Producing Guyana Gold Mine
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Omai Gold Mines announced additional positive drill results from its Omai gold project in Guyana, noted Atrium Research analyst Ben Pirie and Nicholas Cortellucci in a November 13 report.

Omai Gold Mines (TSXV:OMG) announced additional positive drill results from its Omai gold project in Guyana, noted Atrium Research analyst Ben Pirie and Nicholas Cortellucci in a November 13 report.

The analysts maintained a Buy rating and CA$0.30 price target on Omai.

West Wenot Mineralization Extended

According to the analysts, the latest drilling intercepts will be important for expanding the resource at the West Wenot zone, which currently sits at 1.9 million ounces gold.

Highlights included 5.89 grams per tonne (g/t) gold over 12 meters at hole 67 and 8.7 g/t gold over 4.6 meters at hole 66. Pirie and Cortellucci expect these results to drive significant resource growth when Omai releases an updated mineral resource estimate (MRE) this quarter.

The analysts believe West Wenot could provide "starter pit" material to generate early cash flow while existing pits are de-watered to access the bulk of the resource.

Major Development Studies Upcoming

With the updated MRE imminent, Omai plans to launch a preliminary economic assessment (PEA) in 2023.

The analysts view the Omai project as de-risked, given its past production history and sizable existing infrastructure. They see a clear path to restarting operations.

Significant Upside for Undervalued Stock

Atrium maintains a Buy rating and CA$0.30 price target on Omai, implying over 750% upside potential.

The firm's valuation is based on Omai's 3.7 million ounce resource and assumes a value of CA$27 per ounce in the ground. With the stock trading at just CA$3 per ounce currently, the analysts see substantial upside.

In summary, the additional drilling success at West Wenot provides further evidence of resource growth potential at the past producing Omai gold project. With the updated MRE and PEA approaching, Atrium believes Omai offers attractive value relative to peers.

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Disclosures for Atrium Research, Omai Gold Mines, November 13, 2023

Analyst Certification Each authoring analyst of Atrium Research on this report certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated securities discussed (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the research, (iii) to the best of the authoring analyst’s knowledge, she/he is not in receipt of material non-public information about the issuer, (iv) the analyst does not own common shares, options, or warrants in the company under coverage, and (v) the analysts adhere to the CFA Institute guidelines for analyst independence.

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