First Stepout Drill Results Promising for Gold Company


As Omai Gold Mines is busy drilling their venture in Guyana, the Vital Investor catches up with CEO Ellingham to debate the newest outcomes.

 Though the U.S. greenback index not too long ago broke via ranges not seen since 2003, indicating nice energy, brought on by already introduced and anticipated Fed charge 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 sophisticated gold explorer, Omai Gold Mines (TSXV:OMG) appears to be wanting on the proper metallic, 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 had 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 continuing 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 had been additionally accomplished throughout February-April. An total view of exploration will 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 had 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 had 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 can be considered on this part on the left.

CEO Elaine Ellingham was enthusiastic about these first two outcomes at Wenot.

“We’re more than 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 much like the principle zones at Wenot,” she stated. “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 important for an final mine plan as these may contribute to lower-strip-ratio starter pits for the bigger Wenot deposit.”

As these two ends in themselves are hitting gold at vital depth and would have a considerable strip ratio associated to the gold contents, and had 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 information for a useful resource replace is offered. We will even look forward to 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 will be seen right here (in inexperienced):

The total outcomes for holes 038 and 039 are represented on this desk:














Gap ID 

From

To 

Interval (m) 

g/t Au

22ODD-038 

160.0 

161.0 

1.0 

2.92 

171.0 

176.0 

5.0 

0.48 

 

215.0 

223.5 

8.5 

5.01 

 

together with 

221.8 

223.5 

1.7 

17.80 

22ODD-039 

52.3 

53.0 

0.7 

3.81 

246.9 

264.0 

17.1 

2.32 

 

together with 

246.9 

253.8 

6.9 

3.54 

and 

262.9 

264.0 

1.1 

5.58 

277.3 

277.9 

0.6 

1.36 

 

288.8 

293.0 

4.2 

0.56 

 

 

Regardless of the inclination, the drill bit clearly hit a number of mineralized layers, typically very slim 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 contemporary 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 website of the mill, service buildings, and different mine infrastructure.

When requested if the previous operator didn’t discover this space earlier than constructing the mine, CEO Ellingham answered, “The previous operators centered solely on getting the identified useful resource into manufacturing as quickly as doable, and didn’t discover a lot after the mine got here into manufacturing. The realm the place we’re drilling now was lined with haul roads and the entire Omai buildings, so actually no drilling could possibly be finished on this space. Our present exploration places of work, core logging services, and barracks are on this space, however we will drill proper round them.  The truth is, one of many subsequent holes can be between our kitchen and laundry services.”

It’s good to have stable drill outcomes out proper earlier than PDAC, as buyers had been apparently different alternatives it appears over the last troublesome two weeks or so.

Share value one 12 months timeframe (Supply: tmxmoney.com)

Based on CEO Ellingham, they’ve extra outcomes from the Wenot west extension drilling popping out quickly, in all probability inside two weeks, and it is vitally possible 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 had been returned for the primary 5 holes totaling 1,213 meters. Drilling on the Blueberry Hill goal supplied the next outcomes of three holes:









22ODD-033 

   150.6 

   151.5 

   0.9 

   41.73 

22ODD-034 

   19.5 

   21.0 

   1.5 

     0.53 

Incl. 

   58.0 

   59.0 

   1.0 

     0.81

Incl. 

   63.0 

   64.2 

   1.2 

     1.80

Incl. 

   69.5 

   71.0 

   1.5 

     1.71

22ODD-035 

   46.6 

   48.1 

   1.5 

     1.91 

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 the intention to discover extra vectors earlier than extra drill targets will be outlined.

Because the robust 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 information.

She said, “We did hit a really high-grade vein, however had been anticipating further mineralization. We knew from the trenching that the structural setting is complicated, so we are going to proceed to mannequin the info 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 will be seen within the first map on this article) had been accomplished, with assays pending.

The corporate additionally drill examined a goal south of Wenot with two holes. Diamond drill gap 036 didn’t intercept anomalous gold, and gap 037 (which will 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.

Based on CEO Ellingham, this was the primary of exams of the important thing airborne geophysics targets recognized by their consultants. There are a selection of such targets, any considered 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 possible 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 probably maiden useful resource could possibly be accomplished this 12 months.

CEO Ellingham said, “We have to concentrate on 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 objective of advancing to an up to date NI 43-101 useful resource. The Fennell deposit was nicely 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 can be lengthy holes that can be sluggish to finish and costlier, 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 permits them to maintain exploring for the rest of this 12 months. The primary stepout drill outcomes at Wenot had been promising, however want extra follow-up drilling with the intention 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 prevailing gold assets, so this may be an attention-grabbing improvement as there aren’t too many juniors with over 3Moz Au with market caps hovering at simply CA$23M.       

I hope you will see that this text attention-grabbing and helpful and could have additional curiosity in my upcoming articles on mining. To by no means miss a factor, please subscribe to my free publication at www.criticalinvestor.eu, with the intention to get an e mail discover of my new articles quickly after they’re revealed.

The Vital Investor is a publication and complete junior mining platform, offering evaluation, weblog and newsfeed, and all kinds of details about junior mining. The editor is an avid and demanding junior mining inventory investor from The Netherlands, with an MSc background in building/venture administration. Quantity cruncher at venture economics, in search of high-quality corporations, principally progress/turnaround/catalyst-driven to keep away from an excessive amount of dependence/affect of long-term commodity pricing/market sentiments, and infrequently in search of long-term deep worth. Getting burned prior to now himself at junior mining investments by following overly optimistic sources that as a rule prevented to say (hidden) dangers or essential flaws, The Vital Investor discovered his lesson nicely, and goes a couple of steps additional ever since, offering a contemporary, extra in-depth, and demanding imaginative and prescient on issues, therefore the title.


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Disclosures:

Please word: the views, opinions, estimates, forecasts, or predictions relating to Omai Gold Mines’ useful resource potential are these of the creator alone and don’t characterize views, opinions, estimates, forecasts, or predictions of Omai or Omai’s administration. Omai Gold Mines has not in any method endorsed the views, opinions, estimates, forecasts, or predictions supplied by the creator.

The creator is just not a registered funding advisor, and at present has a protracted place on this inventory. Omai Gold Mines is a sponsoring firm. All information are to be checked by the reader. For extra info please go to https://omaigoldmines.com and skim the corporate’s profile and official paperwork on www.sedar.com, additionally for necessary danger disclosures. This text is supplied for info functions solely and isn’t meant 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 selections.

All offered tables are my very own materials until said in any other case.

All footage are firm materials until said in any other case.

All currencies are in U.S. {Dollars} until said in any other case.

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