Interview with Elaine Ellingham, President & CEO of Omai Gold Mines Corp.

Our previous interview: https://www.cruxinvestor.com/posts/omai-gold-mines-tsxvomg-restarting-high-grade-gold-mine-in-guayana-5015

Recording date: 14th May 2024

Omai Gold Mines Corp. (TSXV:OMG) presents a compelling investment opportunity as it advances the past-producing Omai gold mine in Guyana towards renewed production. With a substantial 4.3 million ounce resource, a positive preliminary economic assessment (PEA), and significant exploration upside, Omai is well-positioned to create value in a rising gold price environment.

The company's flagship asset is the Omai gold project, a past-producing mine with existing infrastructure and a large resource base. The project hosts 4.3 million ounces of gold across two deposits – the open-pittable Wenot deposit and the Fennell underground deposit. Omai's recent exploration efforts have focused on the Wenot deposit, which contains 2.4 million ounces and forms the basis for the recent PEA.

The PEA demonstrates the Omai project's robust economics and provides a blueprint for restarting production. The study outlines a 13-year open pit operation producing an average of 142,000 ounces of gold per year at all-in sustaining costs of US$1,009 per ounce. At a gold price of $1950, the project generates an after-tax NPV5% of US$556 million and an IRR of 19.8%. Importantly, the PEA only considers the Wenot open pit deposit, with the Fennell underground deposit and other exploration targets providing additional upside.

Omai's large resource base provides the foundation for a long-life mining operation, with significant potential to expand the resource through exploration. Infill drilling below the Wenot PEA pit is expected to upgrade a further 500,000 ounces for inclusion in future economic studies, while step-out drilling aims to extend mineralization to the south. The Fennell underground deposit adds a further 1.8 million ounces not considered in the PEA, with thick zones of mineralization and a relatively shallow depth providing an attractive underground mining target. Several near-surface targets around the Wenot pit could also add higher-grade feed in the early years of mining to enhance economics.

Omai benefits from its history as a past-producing mine, with existing infrastructure and a wealth of historical data providing a head start on development. The company is taking a dual-track approach, conducting infill and expansion drilling to grow the resource base while concurrently advancing engineering and permitting to fast-track the project to production. Management aims to move directly from the PEA to a pre-feasibility study, targeting a streamlined path to production.

The Omai project is led by an experienced management team with a track record of successfully advancing projects. CEO Elaine Ellingham, a geologist with over 30 years of industry experience, has assembled a strong technical team including a country manager who previously worked at the Omai mine. The Guyanese government is also highly supportive, eager to see the economic benefits of restarting production.

Omai represents a unique opportunity in the junior gold space, combining a large resource base, robust economics, and a clear path to production in a mining-friendly jurisdiction. With a rising gold price driving increased M&A activity, the company's 4.3 million ounce resource and potential for further growth make it an attractive acquisition target. Yet Omai trades at a significant discount to peers and the project's NPV, providing a compelling entry point for investors. As the company advances the Omai project and grows its resource base, it is well-positioned to re-rate and create significant shareholder value.

View Omai Gold Mines' company profile: https://www.cruxinvestor.com/companies/omai-gold-mines

Sign up for Crux Investor: https://cruxinvestor.com