Omai Gold Mines (OMG:TSXV; OMGGF:OTCMKTS) announced results from a Preliminary Economic Assessment for its 100%-owned Omai Property in Guyana, outlining a combined open pit and underground operation with projected life-of-mine payable gold production of approximately 6.327 million ounces over 18 years.
The PEA incorporates the Wenot open-pit deposit and the adjacent Gilt underground deposit. Annual gold production is projected to average 351,488 ounces over the mine life, with peak annual production reaching 435,667 ounces. The study assumes an average head grade of 1.35 grams per tonne gold and an average process recovery of 93%.
At the base-case gold price of US$3,600 per ounce, the PEA estimates an after-tax net present value at a 5% discount rate of US$4.0 billion, an after-tax internal rate of return of 24%, and a payback period of 4.1 years. At a US$4,200-per-ounce gold price, the after-tax NPV5% increases to US$5.5 billion, the after-tax IRR increases to 30%, and the payback period decreases to 3.4 years.
Initial capital is estimated at US$1.427 billion. Growth capital for underground mining is estimated at US$293 million, sustaining capital expenditures at US$636 million, and net reclamation costs at US$41 million. Total life-of-mine capital expenditure is estimated at US$2.396 billion.
Average cash operating costs are estimated at US$1,501 per ounce of gold sold, while mine-site all-in sustaining costs are estimated at US$1,608 per ounce. The PEA projects cumulative after-tax cash flows of approximately US$8.093 billion over the 18-year mine life at the base-case gold price.
"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," President and Chief Executive Officer Elaine Ellingham said in the company news release.
The Wenot open-pit plan calls for approximately two years of pre-production followed by 18 years of commercial production using conventional truck-and-shovel bulk mining. The operation is expected to extract 134.1 million tonnes, averaging 1.08 grams per tonne gold and containing 4.641 million ounces of gold. The life-of-mine average strip ratio is 5.9:1.
The ultimate Wenot pit is approximately 2.4 kilometers long, 1.1 kilometers wide, and 550 meters deep. Mining is planned in three phases. The average mining rate is approximately 126,000 tonnes per day, with a peak rate of 175,000 tonnes per day.
Development of the Gilt underground mine is planned to begin in Year 1 of plant operations, with underground feed available beginning in Year 3. The operation is designed to ramp toward 4,000 tonnes per day and is expected to extract approximately 22.6 million tonnes, averaging 2.98 grams per tonne gold and containing 2.164 million ounces of gold.
Drift-and-fill was selected as the preferred underground mining method, with cemented paste backfill. The mine plan provides access through twin ramps from surface, while development and production material handling is assumed to use a railveyor system and haul trucks.
Production from Wenot and Gilt is planned to be processed through a 25,000-tonne-per-day carbon-in-leach plant, equivalent to an annual throughput of 9.125 million tonnes at full production. The flowsheet includes grinding, gravity separation, and carbon-in-leach, followed by detox to produce gold dore.
The PEA assumes 60 megawatts of installed power capacity for the initial phase of the project, with another 14 megawatts required to support the underground mine and associated systems. The base case assumes on-site power generation using heavy fuel oil generators.
The study is based on the Mineral Resource Estimate announced April 14, 2026, which comprises 2.495 million ounces of gold averaging 2.04 grams per tonne in the Indicated category and 5.465 million ounces averaging 1.59 grams per tonne in the Inferred category. The estimate includes both Wenot and Gilt.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied that would allow them to be categorized as mineral reserves. The company stated there is no certainty that the PEA will be realized, and mineral resources that are not mineral reserves do not have demonstrated economic viability.
The PEA also outlines a peak direct operating workforce of approximately 900 personnel. During construction, indicative estimates put the workforce at between 1,500 and 2,000 personnel. The company said the operating workforce is expected to be sourced primarily locally.
According to an August 20 Bloomberg report, gold was headed for a third consecutive weekly gain as increased U.S. Treasury purchases of long-dated government debt weighed on Treasury yields and the U.S. dollar. Bullion traded around US$4,530 per ounce, putting it on course for a weekly advance of more than 3%.
The Treasury's liquidity injection had pushed yields and the dollar lower, providing support for gold. Bloomberg linked the market reaction to concerns about government debt, describing it as "one of the themes that propelled gold's earlier multi-year rally as investors sought alternative safe havens."
Gold had risen approximately 11% during the month and had remained above US$4,000 per ounce since mid-July, according to Bloomberg. Buying had emerged after bullion declined in June.
Reuters reported on August 21 that gold had reached a near three-month high and was headed for its third straight weekly increase. At the time of the report, the metal had gained 4.2% for the week, with the softer U.S. dollar and the Treasury's bond-buyback move supporting precious metals.
"We've seen the dollar weakening and that has supported not just gold but all precious metals, along with a big change in yields," Brian Lan, managing director of GoldSilver Central, told Reuters.
The dollar was also headed for a weekly decline. Reuters reported that U.S. Treasury Secretary Scott Bessent had said the government could increase its Treasury security repurchases further. The Treasury had previously announced plans to double buybacks of longer-dated securities during the following quarter to at least US$4 billion per operation.
Trading Economics reported on August 21 that gold had traded above US$4,500 per ounce and remained on track for a third consecutive weekly gain. Its data showed the metal gaining 11% over the preceding month and 35.92% over the preceding year.
The source attributed demand for safe-haven metals to volatility in currency and bond markets and also pointed to investment demand and central bank buying. Trading Economics stated that "gold remained supported by robust investment demand and continued central bank purchases, particularly from China."
Trading Economics described gold as a widely followed precious metal that is often viewed as a safe-haven asset during periods of economic uncertainty, inflation and geopolitical risk. It identified financial markets, jewelry consumption, and industrial use as sources of demand for the metal.
Atrium Raises Omai Gold Target to CA$4.25 After Expanded PEA
In an August 20 research note, Atrium Research analysts Ben Pirie and Nicholas Cortellucci maintained a BUY rating on Omai Gold Mines and increased their target price to CA$4.25 per share from CA$4.00. The analysts wrote that the updated PEA results were "impressive and outline a large-scale, long-life operation," while noting that drilling had continued and that the company planned another resource update by year-end, followed by progress toward a feasibility study in 2027.
Pirie and Cortellucci highlighted the expanded production profile, including average annual production of approximately 351,500 ounces over 18 years and peak-year production of approximately 435,700 ounces. They noted that the 25,000-tonne-per-day processing plant was larger than their 16,000-tonne-per-day estimate and resulted in average production 16% above their forecast. They also pointed to the Wenot open-pit strip ratio declining to 5.9:1 from 7.8:1 in the previous study and said plant recoveries "remain strong at ~93%."
On costs, the analysts noted that initial capital of approximately US$1.4 billion exceeded their US$1.1 billion forecast, while life-of-mine cash costs and AISC of US$1,501 and US$1,608 per ounce, respectively, were also above their estimates. Despite those increases, Pirie and Cortellucci wrote that "unit costs remain competitive amongst peers."
Atrium also highlighted the PEA's approximately US$8.1 billion in cumulative cash flow and its US$4.0 billion NPV5% and 24% IRR at US$3,600-per-ounce gold. At US$4,200 per ounce, those figures increased to US$5.5 billion and 30%, respectively. After updating its own model using a long-term gold price of US$4,000 per ounce, Atrium calculated an Omai Project NPV5% of US$5.211 billion.
The analysts also addressed the ongoing drilling program, noting that approximately 77 Wenot holes completed since the April resource update were not included in the PEA. With five rigs active, they said drilling was targeting upgrades and expansion of the approximately 4.0-million-ounce Inferred resource, along with step-outs at the Camp Zone and the eastern and western extensions of Wenot. They wrote that the updated resource estimate was "anticipated to guide a 2027 feasibility study."
In its valuation, Atrium increased its 12-month target-setting multiple to 0.4x from 0.35x. Pirie and Cortellucci wrote that their forecast was "now supported by detailed technical work increasing confidence." The analysts consequently raised their target price to CA$4.25 per share while maintaining their BUY recommendation.
Stifel Nicolaus analyst Cole McGill reiterated a BUY rating on Omai Gold Mines on August 20. McGill lowered his price target to CA$4.25 from CA$5.50, representing 84.78% upside based on the share price used by the source.
CIBC analyst Luke Bertozzi initiated coverage on June 29 with a BUY rating and a CA$4.50 price target, representing 95.65% upside based on the share price used by the source.
Drilling, Permitting, and Technical Programs Extend Through 2026
Omai Gold's corporate presentation identified a 50,000-meter diamond drill program that ran from the first through the fourth quarter of 2026 as one of the company's principal work programs for the year. The presentation stated that five drills were operating and that the program was designed to fill undrilled gaps within Wenot that constrained the pit, continue testing the limits of the Wenot deposit, and convert Wenot Inferred resources to the Indicated category.
The presentation also identified exploration of nearby targets as part of the 2026 program. A separate section of the presentation described step-out exploration and geophysical targets as part of the current Wenot drilling program. At the time of the presentation, 34 holes totaling 18,840 meters had been completed after the mineral resource estimate, and Objectivity had been engaged for infill optimization.
At Wenot, the presentation stated that drilling was intended to expand resources, reduce the strip ratio, and upgrade Inferred resources to Indicated. It also identified unmined zones at shallow levels along strike and on the flanks, as well as deeper zones encountered during 2024 and 2025 drilling.
The presentation described additional exploration work related to the Wenot shear corridor, including strike extensions, depth extensions, geophysical targets, old artisanal workings, and areas associated with high-grade trenching results. It stated that the Wenot shear corridor extends for more than 7 kilometers and that multiple near-vertical gold zones occur across a width of approximately 400 meters.
The company also identified "The Handle" as an exploration target northeast of the Wenot deposit. The presentation described it as a magnetic feature on a northeast structure off Wenot that corresponds with a deep topographic feature. Two initial holes had been completed at the target, with results pending at the time of the presentation.
Permitting work was another component of the company's 2026 program. The presentation stated that Omai Gold had applied for an environmental impact assessment and that the Terms and Scope for the EIA were pending. It also reported that community consultation had been completed with municipal, regional, and senior government representatives, that a number of baseline studies had already been completed, and that the company had been granted a two-year environmental permit. The presentation stated that completion of the EIA allows an application for a mining license.
The May presentation separately listed a permitting push focused on the EIA Terms and Scope during the second quarter of 2026. It also listed metallurgical results from 73 samples for the second quarter and the commencement of additional work supporting a prefeasibility study or feasibility study during 2026.
Streetwise Ownership Overview*
Omai Gold Mines (OMG:TSXV;OMGGF:OTCMKTS)
| Date | Old Symbol | Old Shares | New Symbol | New Shares |
|---|---|---|---|---|
| 11/18/20 | OMG:TSXV | 15 | OMG:TSXV | 1 |
| 08/06/20 | ARA:TSXV | 1 | OMG:TSXV | 1 |
| 06/20/11 | CGM.H:TSXV | 5 | ARA:TSXV | 1 |
| 12/22/03 | YCI:TSXV | 1 | CGM.H:TSXV | 1 |
| 10/02/00 | CIGD:TSXV | 1 | YCI:TSXV | 1 |
Technical programs described in the presentation included baseline environmental studies, selective metallurgical test work building on historical work, rock mechanics work using a downhole three-dimensional televiewer probe, Gilt Creek ramp and underground mine design, tailings redevelopment and expansion planning, community engagement and economic assessment work.
The presentation also stated that the Gilt model had been refined for mine planning, with new holes providing data to extend deeper zones laterally. The overall Gilt mineral resource estimate had increased by 700,000 ounces to 2.4 million ounces, while the zones were refined to optimize mine design and reduce internal waste.
Ownership and Share Structure1
Management and insiders hold 2.04% of Omai Gold, with Institutions owning 25.75%.
Omai has a market cap of approximately CA$2.09 billion, 676.37 million outstanding shares, and a 52-week range of CA$0.84 to CA$3.16.
Frequently Asked Questions About Omai Gold Mines and the Omai Gold Project
What did Omai Gold Mines announce in its 2026 Preliminary Economic Assessment?
Omai Gold Mines Corp. announced a Preliminary Economic Assessment for its 100%-owned Omai Gold Project in Guyana that outlined combined development of the Wenot open pit and Gilt underground deposits. The PEA projected approximately 6.327 million ounces of payable gold production over an 18-year mine life, with average annual production of 351,488 ounces and peak annual production of 435,667 ounces.
What is the NPV of the Omai Gold Project PEA?
At a base-case gold price of US$3,600 per ounce, the Omai Gold Project PEA estimated an after-tax net present value at a 5% discount rate of US$4.0 billion. At a US$4,200-per-ounce gold price, the after-tax NPV5% increased to US$5.5 billion.
What IRR and payback period did the Omai Gold PEA report?
The Omai Gold PEA estimated a 24% after-tax internal rate of return and a 4.1-year payback period using a US$3,600-per-ounce gold price. At US$4,200 per ounce, the after-tax IRR increased to 30% and the payback period decreased to 3.4 years.
How much gold could the Omai Gold Project produce?
The PEA projected total payable gold production of 6,326,775 ounces from the Wenot and Gilt deposits. Average annual gold production was estimated at 351,488 ounces over the 18-year mine life, with peak-year production reaching 435,667 ounces.
What are the Wenot and Gilt gold deposits at Omai?
The PEA incorporated the Wenot shear-hosted gold deposit as an open-pit operation and the adjacent Gilt intrusion-hosted gold deposit as an underground operation. Wenot was expected to provide 134.1 million tonnes grading 1.08 grams per tonne gold and containing 4.641 million ounces, while Gilt was expected to provide 22.6 million tonnes grading 2.98 grams per tonne gold and containing 2.164 million ounces.
How large is the Wenot open pit in the Omai Gold mine plan?
The ultimate Wenot "superpit" was approximately 2.4 kilometers long, 1.1 kilometers wide, and 550 meters deep. The PEA contemplated approximately two years of pre-production followed by 18 years of commercial production using conventional truck-and-shovel bulk mining methods.
How will the Gilt underground gold deposit be developed?
Development of the Gilt underground mine was planned to begin in Year 1 of plant operations, with underground production commencing in Year 3 and ramping toward 4,000 tonnes per day. Drift-and-fill was selected as the preferred mining method, with cemented paste backfill and twin ramps providing access from surface.
What processing capacity is planned for the Omai Gold Project?
The PEA contemplated a 25,000-tonne-per-day processing facility with an annual throughput of approximately 9.125 million tonnes at full production. The processing flowsheet included grinding, gravity separation, and carbon-in-leach processing followed by detox to produce gold dore. Average gold recovery was estimated at 93%.
How much would it cost to build the Omai Gold Project?
Initial capital expenditure was estimated at US$1.427 billion. The PEA also included US$293 million of growth capital for underground mining, US$636 million of sustaining capital, and US$41 million in net reclamation costs. Total life-of-mine capital expenditure was estimated at US$2.396 billion.
What are the projected cash costs and AISC for Omai Gold?
The PEA estimated average cash operating costs of US$1,501 per ounce of gold sold and mine-site all-in sustaining costs of US$1,608 per ounce. Cumulative after-tax cash flows were estimated at approximately US$8.093 billion over the 18-year mine life at the base-case gold price.
How large is the Omai Gold Project mineral resource?
The April 2026 Mineral Resource Estimate used for the PEA contained 2.495 million ounces of gold, averaging 2.04 grams per tonne in the Indicated category and another 5.465 million ounces, averaging 1.59 grams per tonne in the Inferred category. The resource included both the Wenot and Gilt deposits.
Is Omai Gold still drilling at the Omai Gold Project?
Yes. At the time of the PEA announcement, five rigs were operating as part of an ongoing 50,000-meter drill program. The company said 77 Wenot drill holes completed since the April 2026 Mineral Resource Estimate were not included in the resource estimate underlying the PEA.
When is Omai Gold planning its next mineral resource estimate?
Omai Gold was preparing to update the Mineral Resource Estimate before the end of 2026. The planned update was expected to incorporate current drilling as well as 77 holes already completed since the April 2026 resource estimate, with many assays still pending at the time of the PEA announcement.
What exploration work is Omai Gold conducting at Wenot?
The company's stated work included infill drilling to upgrade the large Wenot Inferred resource and expand the Mineral Resource Estimate, along with additional drilling at the Camp Zone and the eastern and western extension areas of the Wenot deposit.
What are the next steps for the Omai Gold Project after the PEA?
Omai Gold identified continued drilling, an updated Mineral Resource Estimate, additional metallurgical work, refinement of the processing plant location, condemnation drilling, geotechnical and hydrogeological data collection, environmental permitting, and continued engagement with communities and government among its planned or ongoing activities. The company also stated that it intended to advance the project toward a feasibility study.
What rating and price target did Atrium Research give Omai Gold Mines?
In its August 20 research note, Atrium Research analysts Ben Pirie and Nicholas Cortellucci maintained a BUY rating on Omai Gold Mines and raised their target price to CA$4.25 per share from CA$4.00. The analysts wrote that the updated PEA results were "impressive and outline a large-scale, long-life operation."
What valuation did Atrium Research calculate for the Omai Gold Project?
Atrium Research calculated an Omai Project NPV5% of US$5.211 billion using its long-term gold price assumption of US$4,000 per ounce. The research note increased its 12-month target-setting multiple from 0.35x to 0.4x and raised its Omai Gold Mines target price to CA$4.25 per share.
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Important Disclosures:
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
